HB1145: HB1145 Ad valorem tax; state-wide homestead exemption for certain public service employees; provisions

Georgia law lets local governments offer various homestead exemptions, but there is no statewide exemption targeted at public service workers based on income. This bill would create one. Firefighters, paramedics, police and other law enforcement officers, teachers and school staff, and hospital employees or staff who hold hospital privileges would qualify if their gross income is 150 percent or less of the area median income where they live. Qualifying employees would get an exemption equal to the amount their home's assessed value has grown since a 'base year,' the year before they first got the exemption, effectively freezing most future property tax increases on that home. The break would not apply to new improvements or added land, would not transfer to a new owner, and would replace rather than stack with other homestead exemptions. Because it changes the state constitution's tax framework, the bill needs a two-thirds vote in both chambers and statewide voter approval in a November 2026 referendum. If approved, it would apply starting with the 2027 tax year; if rejected, the bill repeals itself automatically.

• Creates a new statewide homestead property tax exemption for qualifying public service employees, capping taxable value growth at a 'base year' amount.
• Limits eligibility to firefighters, paramedics, police and other law enforcement officers, teachers and school employees, and hospital workers or staff with hospital privileges.
• Requires the employee's gross income to be 150 percent or less of the area median income for where they live, as determined by the Department of Revenue.
• Excludes new improvements or newly added land from the exemption and prevents the exemption from transferring to a new owner if the home is sold.
• Requires the exemption to be in lieu of, not in addition to, any other homestead exemption the person may already receive.
• Requires a two-thirds vote in the General Assembly and a statewide referendum in November 2026, with automatic repeal if voters reject it.

Firefighters, paramedics, police officers and other law enforcement, public school teachers and staff, and hospital employees or staff with hospital privileges across Georgia, provided their income falls within 150 percent of their area's median income. County tax offices and the Department of Revenue would administer the program.

For eligible public service workers, this could slow or stop rising property tax bills on their homes even as market values climb, since the taxable value would stay near the level from the year they first qualified. The change depends on statewide voter approval before taking effect for the 2027 tax year.

• Adds new Code Section 48-5-57 to the Official Code of Georgia Annotated, defining 'qualifying public service employee' and other key terms in subsection (a).
• Subsection (b) grants the exemption equal to the growth in assessed value between the base year and the current year, excluding new improvements or added land.
• Subsection (c) and (d) set the application process through local tax receivers or commissioners, with automatic annual renewal once approved.
• Subsection (e) makes the exemption exclusive, meaning it replaces rather than adds to any other homestead exemption a person receives.
• Subsection (f) applies the exemption starting with the 2027 tax year.
• Section 2 requires a two-thirds majority vote in both the House and Senate because the bill affects the state constitution's tax provisions.
• Section 3 orders the Secretary of State to hold a statewide referendum by early November 2026, with the law taking effect January 1, 2027 only if a majority vote yes.
• If voters reject the measure or no election is held, the bill is automatically repealed the following January 1.

1. 2026-02-04House Second Readers (House)
2. 2026-02-03House First Readers (House)
3. 2026-02-02House Hopper (House)

• Miriam Paris (D, HD-142)Primary sponsor
• Mary Oliver (D, HD-084)
• Scott Holcomb (D, HD-101)
• Spencer Frye (D, HD-122)
• Rob Leverett (R, HD-123)
• Tangie Herring (D, HD-145)

• property taxes
• homestead exemption
• public service employees
• teacher pay and benefits
• first responders