HB 1156: Local government; authorize establishment of local homeowner's incentive adjustment grant programs

This bill creates a new option for Georgia counties and municipalities to set up a homeowner's incentive adjustment grant program, which would use extra local government revenue to reduce property tax bills for homeowners who qualify for a homestead exemption (a break on property taxes for a primary home). A local government could only start such a program after voters approve it in a referendum, and it could only be discontinued through another referendum. Each year, the local government could only put money into the program's fund if it collected more revenue than it budgeted the prior year. Local fiscal officers would calculate a credit for each qualified homestead based on available fund money and the homeowner's tax bill, then show that credit directly on the tax bill. The state revenue commissioner would write rules for administering the program. The bill would only take effect January 1, 2027, and only if Georgia voters ratify a constitutional amendment removing an $18,000 assessed value cap; otherwise it is automatically repealed.

• Creates a new chapter of Georgia law (O.C.G.A. Title 36, Chapter 89A) letting counties and municipalities adopt local homeowner's incentive adjustment grant programs.
• Requires a voter referendum before a local government can start or later discontinue such a program.
• Limits when local governments can fund the program: only in years when actual revenue exceeded the prior year's budgeted appropriations.
• Sets up a formula for calculating a per-homestead tax credit based on available fund money and each homeowner's tax liability, capped so it can't exceed the actual bill.
• Creates a new local government fund (O.C.G.A. § 48-5-381.1) to hold surplus money earmarked for these homeowner grants.
• Makes the entire Act contingent on voters ratifying a constitutional amendment removing an $18,000 assessed value cap; if that fails, the Act repeals automatically.

Homeowners with a qualified homestead exemption in participating counties or cities, county and municipal governing authorities and fiscal officers who administer the credits, county tax commissioners, and the state revenue commissioner, who would write implementing rules for the program.

If enacted and if the related constitutional amendment passes, some Georgia homeowners could see a direct reduction in their property tax bill funded by their local government's surplus revenue, but only in counties or cities that hold a referendum and only in years those governments collect more than they budgeted.

• Section 1 creates O.C.G.A. Chapter 89A of Title 36, defining terms like 'applicable rollback,' 'county millage rate,' and 'qualified homestead' used throughout the program.
• Code Section 36-89A-2 requires a referendum to start a program and another referendum to discontinue one, with a simple majority deciding the outcome.
• Code Section 36-89A-3 restricts funding the grant fund to years when a local government's actual revenue exceeded its budgeted appropriations.
• Code Section 36-89A-4 sets the formula fiscal authorities use to calculate each qualified homestead's tax credit and requires the credit to appear on the tax bill.
• Code Section 36-89A-5 directs the state revenue commissioner to adopt administrative rules and forms for local governments.
• Code Section 36-89A-6 allows recovery of any erroneously or illegally granted credit as delinquent tax.
• Section 2 adds O.C.G.A. § 48-5-381.1, letting counties and cities create the local homeowner's incentive adjustment grant fund from surplus or postponed public works money.
• Section 3 makes the Act effective January 1, 2027 only if voters ratify a constitutional amendment removing an $18,000 assessed value cap; otherwise the Act is automatically repealed.

1. 2026-02-18House Committee Favorably Reported (Cámara de Representantes)
2. 2026-02-04House Second Readers (Cámara de Representantes)
3. 2026-02-03House First Readers (Cámara de Representantes)
4. 2026-02-02House Hopper (Cámara de Representantes)

• Gary Richardson (R, HD-125)Patrocinador principal
• Mark Newton (R, HD-127)
• Rob Leverett (R, HD-123)
• Rob Clifton (R, HD-131)
• Vance Smith (R, HD-138)
• Shaw Blackmon (R, HD-146)

• property taxes
• homestead exemption
• local government finance
• tax referendums