HB1583: HB1583 Fayette County; ad valorem tax; floating proportional amount based upon any increased property tax collections; provide new exemption

Fayette County currently gives homestead exemptions to residents through a 1996 local law. This bill adds a new kind of exemption that changes size each year depending on how much county property tax collections rise above what was collected in the 2025 tax year, called the base year. If collections in a later year exceed the 2025 amount, the extra money gets set aside and used to fund an equal-dollar exemption for all qualifying homeowners the following year. County officials decide how much of that set-aside money to actually use, and any leftover goes to the county's general fund. If collections do not exceed the 2025 base amount, the exemption for that next year is zero. The change only takes effect if two-thirds of the General Assembly approves it and Fayette County voters approve it in a November 2026 referendum, with the exemption starting January 1, 2027.

• Creates a new homestead exemption from Fayette County property taxes (ad valorem taxes) based on how much county tax collections grow above the amount collected in 2025.
• Directs the Fayette County tax commissioner to calculate any excess tax collections each year and set aside those funds to pay for the exemption the following year.
• Gives the Fayette County governing authority discretion to decide how much of the set-aside money to use for the exemption each year, up to the full segregated amount.
• Sets the exemption to zero dollars for any year following one in which collections did not exceed the 2025 base amount.
• Requires a countywide referendum in November 2026 and a two-thirds vote of the General Assembly before the exemption can take effect, starting January 1, 2027.

Homeowners in Fayette County who qualify for the homestead exemption, the Fayette County tax commissioner and county governing authority who administer the exemption, and Fayette County voters, who must approve the change in a November 2026 referendum.

If approved, Fayette County homeowners could see a property tax exemption that grows only when the county's tax collections increase, meaning the size of the break depends on future tax revenue rather than a fixed dollar amount, and voters get the final say before it applies.

• Section 1 adds a new subsection to the 1996 Fayette County homestead exemption law, defining 2025 as the 'base year' for comparison.
• Section 1 requires the tax commissioner to calculate any excess county tax collections above the base year amount and segregate those funds to pay for next year's exemption.
• Section 1 caps the exemption at the value of the segregated funds and sends any unused segregated money to the county's general fund.
• Section 1 sets the exemption to zero for any year when collections do not exceed the base year amount.
• Section 2 requires a two-thirds vote of both chambers of the General Assembly for the bill to become law, as required by the Georgia Constitution.
• Section 3 requires a Fayette County referendum on the Tuesday after the first Monday in November 2026, with automatic repeal 365 days later if voters reject it or the election is not held.
• Section 4 sets the general effective date as upon the Governor's approval, except for the exemption itself, which depends on the referendum.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 687
3. 2026-05-12House Date Signed by Governor (House)
4. 2026-04-10House Sent to Governor (House)
5. 2026-04-02Senate Passed/Adopted (Senate)
6. 2026-04-02Senate Committee Favorably Reported (Senate)
7. 2026-03-27Senate Read and Referred (Senate)
8. 2026-03-27House Passed/Adopted (House)

• Josh Bonner (R, HD-073)Primary sponsor
• Karen Mathiak (R, HD-082)
• Derrick Jackson (D, HD-068)
• Debra Bazemore (D, HD-069)

1. PassedHouse voteMarch 27, 2026

   153 yea, 0 nay (20 not voting, 3 absent)

   Local Calendar : House Vote #772

2. PassedSenate voteApril 2, 2026

   49 yea, 0 nay (3 not voting, 2 absent)

   Local Consent Calendar: Senate Vote #927

• property taxes
• Fayette County
• homestead exemption
• local referendum