HB1602: HB1602 Gainesville, City of; school district ad valorem tax; provide homestead exemption

This bill applies only to the City of Gainesville independent school district in Hall County. It would create a new homestead exemption that reduces the taxable value of a homeowner's primary residence by $10,000 before the school district's property tax for educational purposes is calculated. Homeowners would need to apply once with the City of Gainesville's governing authority or its designee, and the exemption would then renew automatically each year as long as they still live there. Because the bill changes ad valorem (property) taxes, Georgia's Constitution requires it to pass with a two-thirds vote in both the House and Senate, which it did, and then go before local voters. Gainesville will hold a referendum on the November 2026 general election ballot. If a majority approves, the exemption takes effect January 1, 2027. If voters reject it or no valid election is held, the whole Act is automatically repealed 365 days after the election date.

• Creates a $10,000 homestead exemption against City of Gainesville independent school district property taxes for educational purposes, for homeowners living in that district.
• Requires homeowners to file a one-time application with the City of Gainesville or its designee, after which the exemption renews automatically each year.
• Limits the exemption so it does not reduce state, county, municipal, or county school district taxes, only City of Gainesville school district taxes.
• Requires a countywide referendum in November 2026 before the exemption can take effect, since it is a property tax change under the Georgia Constitution.
• Automatically repeals the entire Act 365 days after the election if voters reject it or if the election is not properly held.
• Sets the exemption to apply to taxable years beginning on or after January 1, 2027, contingent on voter approval.

Homeowners who live in the City of Gainesville independent school district and claim their home as a homestead, the City of Gainesville's governing authority and election superintendent, who must administer the exemption and run the referendum, and the school district, which will collect less tax revenue from exempted homes if voters approve.

If approved, eligible Gainesville homeowners would see $10,000 shaved off the assessed value used to calculate their school district property tax bill starting in 2027, lowering that portion of their tax bill, while the school district would collect somewhat less local property tax revenue from those homes.

• Section 1 defines the exemption terms and grants a $10,000 homestead exemption from City of Gainesville independent school district ad valorem taxes for educational purposes.
• Section 1(c) and (d) set the application process, requiring a one-time filing with automatic annual renewal and a duty to report if a homeowner becomes ineligible.
• Section 1(e) clarifies the exemption applies only to City of Gainesville school district taxes, not state, county, municipal, or county school taxes, and stacks on top of other homestead exemptions.
• Section 1(f) sets the exemption's start date at taxable years beginning on or after January 1, 2027.
• Section 2 requires the two-thirds legislative supermajority vote mandated by the Georgia Constitution for tax changes like this.
• Section 3 schedules a referendum for the Tuesday after the first Monday in November 2026 and specifies the exact ballot language voters will see.
• Section 3 also provides that the Act is automatically repealed 365 days after the election if voters reject it or the election is not held as required, and allows a court-ordered writ of mandamus if the election superintendent fails to act.
• Section 4 sets the general effective date as approval by the Governor, except for the referendum provisions in Section 3.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 695
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 schools
• Hall County
• school funding