HB1581: HB1581 Fayetteville, City of; ad valorem tax for municipal purposes; provide homestead exemption

This bill sets up a new homestead exemption for Fayetteville homeowners on their city property taxes, but the amount is not fixed. Each year, the city would compare total municipal property tax collections to what was collected in 2025 (the base year). If collections rose by more than 100 percent of that base amount, the extra money would be set aside and used the following year to fund an exemption applied equally to all qualifying homesteads. If collections did not rise enough, or fell, the exemption would be zero dollars for that year. The exemption would not affect state, county, or school taxes, only city taxes for municipal purposes, and would apply on top of any other homestead exemptions already in place. Because it changes tax law, the bill needs a two-thirds vote in both legislative chambers and must be approved by Fayetteville voters in a November 2026 referendum before taking effect January 1, 2027.

• Creates a homestead exemption from City of Fayetteville municipal property taxes, with the exemption amount changing each year based on tax collection growth.
• Requires the city to compare each year's municipal tax collections to the 2025 base year and set aside any amount collected above that level to fund the next year's exemption.
• Sets the exemption to zero dollars in any year where collections do not exceed the 2025 base amount.
• Requires homeowners to apply once for the exemption, after which it renews automatically as long as they remain eligible.
• Excludes state, county, and school district property taxes from the exemption, applying it only to city municipal taxes.
• Requires voter approval in a November 2026 referendum before the exemption can take effect on January 1, 2027.

Homeowners in the City of Fayetteville who claim a homestead exemption, the city's governing authority, which must calculate and administer the exemption each year, and Fayetteville voters, who must approve the measure in a referendum before it takes effect.

Fayetteville homeowners could see a property tax break on their city bill, but only in years when the city's tax collections grow enough above 2025 levels, meaning the exemption amount could vary year to year or disappear entirely if collections do not increase.

• Section 1 defines 'base year' as 2025 and sets up the mechanism for calculating the exemption from excess tax collections in later years.
• Section 1(c) explains that if collections exceed 100 percent of the base year amount, the excess is segregated and used to fund next year's exemption, with the city having discretion over the exact exemption value.
• Section 1(c)(3) sets the exemption at zero dollars for any year in which collections do not exceed the base year amount.
• Section 1(f) limits the exemption to city municipal taxes only, excluding state, county, and school taxes.
• Section 2 requires a two-thirds vote in both the Georgia House and Senate for the Act to become law, per the state constitution.
• Section 3 requires a November 2026 referendum in Fayetteville, with the exemption taking effect January 1, 2027 if approved, and automatic repeal if rejected or if the election is not held.
• Section 4 sets the Act's general effective date as upon the Governor's approval or becoming law without signature, apart from the referendum provisions.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 685
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
• homestead exemption
• Fayetteville
• local referendum
• municipal taxes