HB1338: HB1338 Savannah, City of; ad valorem taxes for municipal purposes; homestead exemption; provisions

Savannah homeowners with a homestead exemption currently get a break on city property taxes tied to an 'adjusted base year assessed value,' which rises each year with inflation (the Consumer Price Index). This bill would cap that adjusted value so it can never exceed what it was in tax year 2025, meaning future increases in the taxable base for this exemption would stop. Because this changes a local constitutional homestead exemption, the bill needs a two-thirds vote in both the House and Senate, and then must be approved by Savannah voters in a referendum on the November 2026 general election ballot. If approved, the change takes effect January 1, 2027. If voters reject it or no election is held, the bill automatically repeals itself 365 days after the election date.

• Caps the 'adjusted base year assessed value' used in Savannah's homestead exemption formula so it cannot exceed the value set for tax year 2025, even in later years.
• Requires the change to pass with a two-thirds majority in both the Georgia House and Senate before it can become law.
• Orders the City of Savannah's municipal election superintendent to hold a referendum on the November 2026 general election date so voters can approve or reject the change.
• Sets the effective date as January 1, 2027 if voters approve it, tied to Section 1 of the Act.
• Automatically repeals the Act 365 days after the election if voters reject it or if the election is not held as required.
• Allows any Savannah voter to seek a court order (writ of mandamus) forcing the election superintendent to hold the vote if they fail to do so.

Homeowners in the City of Savannah who claim the homestead exemption from municipal property taxes, the city's election superintendent who must run the referendum, and Chatham County's official legal newspaper, which must publish notice of the vote.

If approved, Savannah homeowners with this exemption would see the taxable base tied to their exemption stop rising after 2025, which could limit future increases in their city property tax bills. The change only takes effect if voters approve it in November 2026.

• Section 1 revises the definition of 'adjusted base year assessed value' in the 1999 Savannah homestead exemption law so it cannot exceed the tax year 2025 value in any year after 2026.
• Section 2 requires the Act to receive a two-thirds majority vote in both the House and Senate to comply with the Georgia Constitution's rules for local tax legislation.
• Section 3 requires a referendum on the Tuesday after the first Monday in November 2026, with the ballot language asking voters to approve or reject the change, and sets automatic repeal if voters reject it or the vote is not held.
• Section 4 makes the rest of the Act (other than the election provisions) effective upon the Governor's signature or upon becoming law without signature.
• Section 5 repeals any conflicting laws.

1. 2026-02-19House Second Readers (House)
2. 2026-02-18House First Readers (House)
3. 2026-02-17House Hopper (House)

• Ron Stephens (R, HD-164)Primary sponsor
• Bill Hitchens (R, HD-161)
• Jesse Petrea (R, HD-166)
• Carl Gilliard (D, HD-162)

• property taxes
• homestead exemption
• Savannah
• local referendum
• municipal taxes