HB 1338: Savannah, City of; ad valorem taxes for municipal purposes; homestead exemption; provisions

Savannah homeowners with a homestead exemption currently get a break on city property taxes based on how much their home's assessed value has grown since a base year, adjusted each year for inflation using the Consumer Price Index. This bill would change how that adjusted base year value is calculated going forward. Under the bill, the adjusted base year assessed value could still rise with inflation through tax year 2025, but for any tax year after 2026 it could not exceed whatever it was set at in tax year 2025. In effect, this locks in the base value used for the exemption calculation rather than letting it keep climbing with inflation. Because this changes a local tax exemption, it needs a two-thirds vote in the General Assembly and must be approved by Savannah voters in a November 2026 referendum before it takes effect on January 1, 2027. If voters reject it or no election is held, the change is automatically repealed.

• Freezes the 'adjusted base year assessed value' used in Savannah's homestead exemption formula so it cannot exceed its tax year 2025 level in any year after 2026.
• Still allows the adjusted base year value to rise with the Consumer Price Index (a measure of inflation) up through tax year 2025.
• Requires a two-thirds majority vote in both the Georgia House and Senate before the change can become law, per the state constitution.
• Requires Savannah voters to approve the change in a referendum on the November 2026 general election ballot before it takes effect.
• Automatically repeals the change if voters reject it or if the election is not properly held, 365 days after the election date.
• Allows any Savannah voter to seek a court order (a writ of mandamus) forcing the election superintendent to hold the referendum if it is not conducted as required.

Homeowners in the City of Savannah who receive the homestead exemption on their municipal property taxes, the Savannah municipal election superintendent who must run the referendum, and Chatham County's official legal newspaper, which must publish notice of the election.

If approved by voters, Savannah homeowners with this exemption would see their taxable base value stop climbing with inflation after 2025, which could limit future growth in their city property tax bills tied to this exemption, while the city's exemption-related tax base would also stop increasing.

• Section 1 revises the definition of 'adjusted base year assessed value' in the 1999 Savannah homestead exemption law so it cannot exceed the tax year 2025 level for any year after 2026.
• Section 2 requires a two-thirds majority vote in both chambers of the General Assembly for the Act to become law, as required by the Georgia Constitution.
• Section 3 requires a City of Savannah referendum on November 3, 2026 (the Tuesday after the first Monday in November), with the change taking effect January 1, 2027 if approved.
• Section 3 also provides for automatic repeal 365 days after the election if voters reject the measure or the election is not held as required, and allows court enforcement if the election superintendent fails to act.
• Section 4 sets the general effective date as upon the Governor's approval or the Act becoming law without signature, except for the referendum provisions in Section 3.

1. 2026-02-19House Second Readers (Cámara de Representantes)
2. 2026-02-18House First Readers (Cámara de Representantes)
3. 2026-02-17House Hopper (Cámara de Representantes)

• Ron Stephens (R, HD-164)Patrocinador principal
• Bill Hitchens (R, HD-161)
• Jesse Petrea (R, HD-166)
• Carl Gilliard (D, HD-162)

• property taxes
• homestead exemption
• Savannah
• local referendum
• Chatham County