HB1457: HB1457 Ad valorem tax; preferential assessment of affordable home use property; provide

Georgia already lets some farmland and conservation land get a reduced 'current use' property tax assessment instead of full market-value assessment. This bill would create a similar preferential assessment for what it calls 'affordable home use property': residential land of five acres or less meant for a single-family home sold to a low-income family. To qualify, an owner must sign a ten-year covenant with the county promising to keep the property in that qualifying use, similar to existing conservation-use covenant rules. The bill spells out application deadlines, appeal rights, penalties for breaking the covenant (double the tax savings), interest on refunds or unpaid bills, and a requirement that the Department of Community Affairs keep a statewide registry of qualifying property. The whole law would only take effect on January 1, 2027, and only if Georgia voters ratify a constitutional amendment in November 2026 allowing this kind of special tax treatment; otherwise the bill is automatically repealed.

• Creates a new Georgia law (O.C.G.A. § 48-5-7.8) allowing 'affordable home use property' to be taxed at a reduced current-use value instead of full market value.
• Defines qualifying property as five acres or less, meant for a single-family home, sold to a low-income family owner.
• Requires owners to sign a ten-year covenant with the county promising continued qualifying use, renewable for additional ten-year terms.
• Sets penalties for breaking the covenant equal to twice the tax savings received, plus interest and collection procedures similar to unpaid property taxes.
• Directs the Department of Community Affairs to create standard application forms and a statewide registry tracking qualifying properties.
• Makes the entire law contingent on voters approving a related constitutional amendment in November 2026, with automatic repeal if the amendment fails.

Low-income families who buy qualifying single-family homes, current property owners considering the covenant, county boards of tax assessors and tax commissioners who administer applications and appeals, county superior court clerks who record covenants, and the Department of Community Affairs, which sets forms and maintains a statewide registry.

If voters approve the related constitutional amendment, qualifying affordable homes could be taxed on a lower 'current use' value for a decade, potentially lowering property tax bills for participating low-income homeowners, while owners who break the ten-year commitment would face financial penalties equal to double their tax savings.

• Section 1 adds O.C.G.A. § 48-5-7.8, defining 'affordable home use property' as residential land of five acres or less sold to a single low-income family.
• Subsection (b) requires a ten-year covenant with the taxing authority, renewable for additional ten-year periods, with 60-day notice before expiration.
• Subsection (c) bars owners from combining this preferential assessment with the existing conservation-use covenant under O.C.G.A. § 48-5-7.1 for the same property.
• Subsection (g) sets application deadlines, filing procedures with the county board of tax assessors, and appeal rights under O.C.G.A. § 48-5-311.
• Subsection (j) imposes a penalty equal to twice the tax savings if the covenant is breached, plus interest on unpaid amounts.
• Subsection (l) requires the Department of Community Affairs to maintain a statewide registry of qualifying properties, tracking a 2,000 acre statewide limitation.
• Section 2 makes the entire Act effective January 1, 2027 only if voters ratify a related constitutional amendment in November 2026, and repeals it automatically if they do not.

1. 2026-03-03House Second Readers (House)
2. 2026-02-26House First Readers (House)
3. 2026-02-25House Hopper (House)

• Marvin Lim (D, HD-098)Primary sponsor
• Karen Lupton (D, HD-083)
• David Wilkerson (D, HD-038)
• Kasey Carpenter (R, HD-004)

• property taxes
• affordable housing
• tax assessment
• constitutional amendment