HB1601: HB1601 Gainesville, City of; ad valorem tax for municipal purposes; provide homestead exemption

This bill creates a new homestead exemption for people who own and live in a home within the City of Gainesville. It would remove $10,000 of the assessed value of a homestead from City of Gainesville property taxes that fund municipal services, though the value above that amount would still be taxed. The exemption would not apply to state taxes, county taxes, or school district taxes, and it would stack on top of any other municipal homestead exemption already available. Because it changes local property tax rules, the bill needs a two-thirds vote in both the Georgia House and Senate, and then must be approved by Gainesville voters in a referendum set for November 2026. If approved, the exemption would apply starting with the 2027 tax year. If voters reject it or the election is not held properly, the bill would be automatically repealed.

• Grants Gainesville homeowners a $10,000 reduction in the assessed value of their homestead for calculating City of Gainesville municipal property taxes.
• Requires homeowners to apply once with the city government to claim the exemption, after which it renews automatically each year without reapplication.
• Requires homeowners to notify the city if they become ineligible for the exemption, for example if they move.
• Excludes the exemption from applying to state taxes, county taxes, or school district property taxes.
• Sends the measure to Gainesville voters in a November 2026 referendum, with the exemption taking effect January 1, 2027 only if approved.

Homeowners who live in and hold a homestead within the City of Gainesville, the city's tax and elections offices, and the Hall County election superintendent, who must organize and certify the required referendum.

If voters approve it, qualifying Gainesville homeowners would see a lower municipal property tax bill starting in 2027, since $10,000 of their home's value would no longer be taxed for city purposes, while county, school, and state taxes stay the same.

• Section 1 defines the exemption and sets it at $10,000 of assessed home value, applying only to City of Gainesville municipal ad valorem taxes.
• Section 1(c) and (d) require a one-time application with the city, after which the exemption renews automatically each year the homeowner remains eligible.
• Section 1(e) clarifies the exemption does not reduce state, county, or school district property taxes and stacks with other existing municipal exemptions.
• Section 1(f) sets the exemption's start date as tax years beginning on or after January 1, 2027.
• Section 2 requires a two-thirds majority vote in both legislative chambers for the bill to become law, as required by the Georgia Constitution.
• Section 3 requires a Gainesville voter referendum on the Tuesday after the first Monday in November 2026, with automatic repeal if voters reject it or the election is not properly held.
• Section 4 sets the general effective date as the date the Governor signs the bill or it otherwise becomes law, apart from the referendum timing in Section 3.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 694
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)

• Matt Dubnik (R, HD-029)Primary sponsor
• Lee Hawkins (R, HD-027)
• Brent Cox (R, HD-028)
• Derrick McCollum (R, HD-030)

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
• Gainesville
• local referendum
• municipal taxes