HR1244: HR1244 Ad valorem tax; business enterprises; rate of assessment of 1,000 or more single family residential properties used for rental income; provisions - CA

Georgia's constitution currently taxes most property based on assessments set by general law, without a special category targeting large-scale corporate ownership of rental homes. This resolution proposes a constitutional amendment creating a new subclass of property called 'business enterprise property': real estate owned by a business enterprise, including private equity firms, that holds an interest in 1,000 or more single-family rental homes in Georgia. That property would be assessed at 100 percent of its fair market value for tax purposes, a higher effective rate than typical assessments. Any tax revenue collected from this subclass would first have to go toward reducing property tax bills on homesteads (owner-occupied homes) in the same taxing jurisdiction before being used for anything else. The Department of Revenue would appraise this property, and the General Assembly could set up a separate appeals process and penalties. Because this is a constitutional amendment, it must be approved by Georgia voters in a statewide referendum before taking effect.

• Creates a new constitutional property subclass called 'business enterprise property' for entities holding 1,000 or more single-family rental homes in Georgia.
• Requires that subclass to be assessed and taxed at 100 percent of fair market value, rather than standard assessment rates.
• Directs that tax proceeds from this property first go toward lowering homeowners' property tax bills in the same jurisdiction before any other use.
• Authorizes the Department of Revenue to appraise this property and allows the General Assembly to create a separate appeals process and enforcement penalties.
• Puts the proposed amendment to Georgia voters as a ballot referendum for ratification or rejection.

Large business enterprises, including private equity firms, that own or hold interests in 1,000 or more single-family rental homes in Georgia; local taxing jurisdictions and the Department of Revenue, which would appraise and collect the new assessments; and Georgia homeowners, whose property tax bills could be reduced using the resulting revenue.

If voters approve this amendment, large corporate landlords owning many rental homes would face a higher, fixed 100 percent tax assessment, and the money collected would be funneled into lowering property tax bills for owner-occupied homes in the same area, potentially shifting some tax burden away from homeowners.

• Section 1 adds a new subparagraph (f.2) to Article VII, Section I, Paragraph III of the Georgia Constitution creating the 'business enterprise property' subclass for entities holding 1,000 or more single-family rental homes.
• The new provision requires this property to be assessed and taxed at 100 percent of fair market value by each taxing jurisdiction.
• Tax proceeds from business enterprise property must be used first to reduce homestead property tax bills in the same jurisdiction before any other use.
• The General Assembly may authorize the Department of Revenue to appraise this property using existing appraisal methods, except those tied to other listed constitutional exceptions.
• The General Assembly may create a separate appeals system for business enterprise property assessments and provide penalties and enforcement mechanisms.
• Section 2 requires the amendment to be submitted to voters as a ballot referendum, with specified ballot language, for ratification or rejection.

1. 2026-02-09House Second Readers (House)
2. 2026-02-06House First Readers (House)
3. 2026-02-05House Hopper (House)

• Derrick McCollum (R, HD-030)Primary sponsor
• Mary Oliver (D, HD-084)
• Phil Olaleye (D, HD-059)
• Esther Panitch (D, HD-051)
• Joseph Gullett (R, HD-019)
• Chuck Efstration (R, HD-104)

• property taxes
• private equity
• rental housing
• constitutional amendment
• homestead tax relief