HB1156: HB1156 Local government; authorize establishment of local homeowner's incentive adjustment grant programs

Currently Georgia counties and municipalities have no specific legal mechanism to return surplus tax revenue directly to homeowners as a tax credit. This bill would create that mechanism. A county or city could ask voters in a referendum whether to start a 'local homeowner's incentive adjustment grant program.' If a majority approve, the local government would set up a special fund and, in years when it collects more revenue than it budgeted for, could put extra money into that fund to give homeowners with a homestead exemption a credit against their property tax bill. The credit could not exceed what a homeowner actually owes, and the total credits given out could not exceed what is in the fund. The state revenue commissioner would write rules for how this works. The whole law would only take effect on January 1, 2027, and only if Georgia voters first ratify a constitutional amendment removing an $18,000 assessed value cap; if that amendment fails, this bill is automatically repealed.

• Creates a new chapter of Georgia law (O.C.G.A. Title 36, Chapter 89A) letting counties and cities set up local homeowner's incentive adjustment grant programs.
• Requires voter approval by referendum before a local government can start, or later discontinue, such a program.
• Lets local governments transfer budget surpluses into a new dedicated fund used to pay homeowner property tax credits.
• Directs fiscal officers to calculate and apply the tax credit to each qualifying homestead's bill, capped at the amount owed and the funds available.
• Requires the state revenue commissioner to write administrative rules and forms for the program.
• Makes the entire act contingent on statewide ratification of a constitutional amendment removing an $18,000 assessed value cap, with automatic repeal if that amendment fails.

Homeowners with a homestead exemption in participating counties or cities, county and municipal governing authorities and fiscal officers who would run the programs, the state revenue commissioner's office, which would write rules, and voters who would decide by referendum whether to adopt or end a program.

If enacted, some homeowners could see a reduction in their property tax bill during years their local government has surplus revenue, but only where voters approve the program and only after a separate statewide constitutional change takes effect, so the practical impact depends on two future votes.

• Section 1 creates O.C.G.A. Chapter 89A of Title 36, defining terms like 'qualified homestead,' 'eligible assessed value,' and 'county millage rate' used to calculate credits.
• Code Section 36-89A-2 requires a countywide or citywide referendum before a program starts and another referendum before it can be discontinued.
• Code Section 36-89A-3 limits new funding for the credit program to years when actual revenue exceeded the prior year's budgeted appropriations.
• Code Section 36-89A-4 sets how the tax credit is calculated for each qualified homestead and caps it at the taxpayer's actual tax liability and the fund's available balance.
• Code Section 36-89A-5 directs the state revenue commissioner to adopt rules and forms for administering the program.
• Code Section 36-89A-6 allows recovery of any credit granted in error, treating it like other delinquent taxes.
• Section 2 adds O.C.G.A. § 48-5-381.1, authorizing local governments to create and fund the 'local homeowner's incentive adjustment grant fund' from surplus revenue.
• Section 3 makes the act effective January 1, 2027 only if voters ratify a constitutional amendment removing an $18,000 assessed value cap, with automatic repeal if they do not.

1. 2026-02-18House Committee Favorably Reported (House)
2. 2026-02-04House Second Readers (House)
3. 2026-02-03House First Readers (House)
4. 2026-02-02House Hopper (House)

• Gary Richardson (R, HD-125)Primary sponsor
• Mark Newton (R, HD-127)
• Rob Leverett (R, HD-123)
• Rob Clifton (R, HD-131)
• Vance Smith (R, HD-138)
• Shaw Blackmon (R, HD-146)

• property taxes
• homestead exemption
• local government finance
• ballot referendums