HB1503: HB1503 Covington, City of; ad valorem tax for municipal purposes; provide homestead exemption

City of Covington property owners currently pay municipal property taxes based on their home's assessed value, with only limited exemptions. This bill would create a new homestead exemption that removes 100% of a homestead's assessed value from City of Covington ad valorem taxes used for municipal purposes, including taxes levied to pay off municipal bonds. Homeowners would have to apply once with the city to claim the exemption, after which it renews automatically as long as they keep living in the home. The exemption would not apply to state taxes, county taxes, or school district taxes, and it would come on top of any other city homestead exemptions already in place. Because it changes tax law, the Georgia Constitution requires a two-thirds vote in both legislative chambers, which the bill notes it has received, and Covington voters must approve it in a November 2026 referendum before it can take effect for tax years starting January 1, 2027.

• Creates a new homestead exemption removing the full assessed value of a homestead from City of Covington municipal ad valorem (property) taxes.
• Requires homeowners to file a one-time application with the city, after which the exemption renews automatically each year while they still live there.
• Requires homeowners to notify the city if they become ineligible for the exemption, such as by moving.
• Excludes state, county, and school district property taxes from the exemption, limiting it strictly to city municipal taxes.
• Makes the exemption stack on top of, rather than replace, any other existing city homestead exemptions.
• Conditions the exemption on voter approval in a November 2026 referendum and sets it to apply starting with the 2027 tax year if approved.

Homeowners in the City of Covington who claim their property as a homestead, the City of Covington's governing authority and tax officials who administer the exemption, and the municipal election superintendent who must run the required referendum.

If voters approve it, eligible Covington homeowners would owe no city property tax on their home's assessed value, reducing their tax bills, while the city would need to make up that lost municipal revenue from other sources. Renters and non-homestead property owners would see no direct change.

• Section 1 defines 'ad valorem taxes for municipal purposes' and 'homestead' (tied to O.C.G.A. § 48-5-40) and grants the exemption for the full assessed value of a homestead.
• Section 1(c)-(d) requires a one-time application, provides for automatic annual renewal, and requires notice if a homeowner becomes ineligible.
• Section 1(e) excludes state, county, and school district taxes from the exemption and makes it additive to other city exemptions.
• Section 1(f) sets the exemption to apply to taxable years beginning on or after January 1, 2027.
• 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 referendum on the Tuesday after the first Monday in November 2026, with the exemption taking effect only if a majority of voters approve it, otherwise the Act is automatically repealed.
• Section 4 sets the general effective date as upon the Governor's approval or upon becoming law without such approval, except for the referendum provisions.

1. 2026-05-11Effective Date 2026-05-11
2. 2026-05-11Act 573
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-06House Sent to Governor (House)
5. 2026-03-20Senate Passed/Adopted (Senate)
6. 2026-03-20Senate Committee Favorably Reported (Senate)
7. 2026-03-19Senate Read and Referred (Senate)
8. 2026-03-18House Passed/Adopted (House)

• Tim Fleming (R, HD-114)Primary sponsor
• Clint Crowe (R, HD-118)

1. PassedHouse voteMarch 18, 2026

   161 yea, 2 nay (7 not voting, 6 absent)

   Local Calendar : House Vote #712

2. PassedSenate voteMarch 20, 2026

   44 yea, 0 nay (5 not voting, 5 absent)

   Local Consent Calendar: Senate Vote #761

• property taxes
• homestead exemption
• Covington Georgia
• local referendum
• municipal taxes