HB1387: HB1387 Ad valorem tax; state-wide homestead exemption in an amount as determined from proceeds generated from collection of certain ad valorem property taxes on data centers

This bill would add a new section to Georgia's property tax law creating a homestead exemption (a break on property taxes for a primary home) whose size depends on how much extra property tax revenue is collected from data centers compared to a base year. Each year, local tax officials would calculate the difference between data center property tax collections in the current year and a base year (generally 2027 or the year after the first data center opens). If collections rose, that excess money would fund the homestead exemption for homeowners the following year. If collections fell, the exemption would be zero that year. The exemption would apply on top of other existing homestead exemptions, would pass to a surviving spouse who keeps living in the home, and would require an annual application only the first time. Because this changes tax law statewide, the bill needs a two-thirds vote in both legislative chambers and voter approval in a November 2026 referendum. It would also depend on a separate constitutional amendment being ratified; if that amendment fails, this exemption would never take effect and would be automatically repealed.

• Creates a new homestead exemption from property taxes calculated from the year-over-year increase in property tax revenue collected from data centers.
• Requires local tax officials to calculate each year whether data center tax collections rose or fell compared to a 2027 (or later) base year and use any increase to fund the exemption.
• Sets the exemption to zero for a given year if data center tax collections did not increase compared to the base year.
• Allows a surviving spouse to keep receiving the exemption as long as they continue living in the home.
• Requires the exemption to go through a statewide referendum in November 2026 and a two-thirds vote in the legislature before taking effect.
• Makes the exemption contingent on voters separately ratifying a related constitutional amendment; if that fails, the law is automatically repealed.

Georgia homeowners who claim a homestead exemption, county and municipal tax officials and tax commissioners who administer the exemption, local school districts and counties that collect property taxes from data centers, and data center operators whose facilities generate the tax revenue used to fund the exemption.

If enacted and approved by voters, homeowners could see part of their property tax bill offset using revenue collected from data centers, but the amount would fluctuate yearly and could drop to zero if data center tax collections don't grow, creating an unpredictable benefit tied to a specific industry's tax payments.

• New Code Section 48-5-44.3(a) defines key terms including 'data center,' 'base year' (generally tax year 2027), and 'ad valorem taxes' covering state, county, municipal, and school district property taxes.
• Subsection (b) grants Georgia residents a homestead exemption in an amount calculated under subsection (c), determined by local tax officials.
• Subsection (c) requires tax officials to compare data center tax collections each year to the base year; any increase funds the exemption the following year, while a decrease sets that year's exemption to zero.
• Subsection (d) extends the exemption to a surviving spouse who continues to live in the home.
• Subsections (e) and (f) require an application to claim the exemption, which then automatically renews yearly without refiling.
• Subsection (g) states the exemption applies in addition to, not instead of, other homestead exemptions.
• Section 2 requires a two-thirds majority vote in both the House and Senate for the Act to become law, per the Georgia Constitution.
• Section 3 requires a statewide referendum by November 2026; the exemption only takes effect January 1, 2027 if voters approve it and a related constitutional amendment is separately ratified, otherwise it is automatically repealed.

1. 2026-02-24House Second Readers (House)
2. 2026-02-20House First Readers (House)
3. 2026-02-19House Hopper (House)

• Joseph Gullett (R, HD-019)Primary sponsor
• Martin Momtahan (R, HD-017)
• Brad Thomas (R, HD-021)

• property taxes
• homestead exemption
• data centers
• ad valorem tax
• ballot referendum