HB 439: Revenue and taxation; revise deductions allowed to dealers

Currently, Georgia counties and cities have no dedicated mechanism to funnel extra tax revenue directly back to homeowners as a property tax credit. This bill creates a new option: a 'local homeowner's incentive adjustment grant program.' A county or municipality could only start one after voters approve it in a referendum, and once started, it can only be discontinued through another referendum. Each year, the local government could only put money into the grant fund if it collected more revenue than it had budgeted for the prior year. Funds from that grant program would then be used to calculate a tax credit for each qualified homestead (homes with a homestead exemption), reducing property tax bills for county or municipal purposes, though not more than the actual tax owed or a state-set limit. A companion section lets local governments set up the underlying grant fund by transferring surplus general fund money into it. The bill takes effect January 1, 2027.

• Creates a new option (O.C.G.A. Chapter 36-89A) for counties and cities to adopt local homeowner tax credit programs funded by surplus revenue.
• Requires voter approval by referendum before a local government can start or discontinue such a program.
• Limits new funding for these credit programs to years when actual revenue collected exceeded the prior year's budgeted amount.
• Sets rules for calculating each homeowner's tax credit based on local millage rates and the amount available in the grant fund, capped at the homeowner's actual tax bill.
• Adds a new Code section (O.C.G.A. § 48-5-381.1) letting governing authorities create and manage the 'local homeowner's incentive adjustment grant fund' from surplus or postponed public works money.
• Directs the state revenue commissioner to write rules and forms for administering the program and makes wrongly granted credits recoverable like delinquent taxes.

Homeowners with a homestead exemption in counties or cities that choose to adopt the program, county and municipal governing authorities and fiscal officers who must run referendums and administer the credits, and the state revenue commissioner, who must issue implementing rules.

If a local government adopts this program after a public vote, qualifying homeowners could see a reduction in their property tax bill in years when the local government collects surplus revenue. Because adoption and funding are optional and tied to surplus collections, the actual size and availability of any credit would vary widely by jurisdiction and year.

• Section 1 creates new Chapter 89A of Title 36, defining terms like 'qualified homestead,' 'county millage rate,' and 'applicable rollback' used to calculate credits.
• O.C.G.A. § 36-89A-2 requires a referendum to start a program and another referendum to discontinue it, with a simple majority deciding the outcome.
• O.C.G.A. § 36-89A-3 bars new appropriations to the grant fund unless actual revenue exceeded the prior year's budgeted appropriations.
• O.C.G.A. § 36-89A-4 details how fiscal authorities calculate each homestead's credit, capping it at the taxpayer's actual liability and the amount available in the fund.
• O.C.G.A. § 36-89A-6 makes any credit erroneously or illegally granted recoverable in the same way as delinquent taxes.
• Section 2 adds O.C.G.A. § 48-5-381.1, letting local governments create and fund the grant fund from surplus or postponed public works revenue.
• Section 3 sets the effective date as January 1, 2027.

1. 2026-05-12Effective Date 2027-01-01
2. 2026-05-12Act 709
3. 2026-05-12House Date Signed by Governor (Cámara de Representantes)
4. 2026-04-06House Sent to Governor (Cámara de Representantes)
5. 2026-03-25House Agreed Senate Amend or Sub (Cámara de Representantes)
6. 2026-03-23Senate Passed/Adopted By Substitute (Senado)
7. 2026-03-23Senate Third Read (Senado)
8. 2026-03-23Senate Engrossed (Senado)

• Bill Yearta (R, HD-152)Patrocinador principal
• Robert Dickey (R, HD-134)
• Noel Williams (R, HD-148)
• Victor Anderson (R, HD-010)
• Trey Kelley (R, HD-016)
• Matt Barton (R, HD-005)
• Lee Anderson (R, SD-024)

1. AprobadaVotación: Cámara de Representantes6 de marzo de 2025

   170 a favor, 1 en contra (3 sin votar, 6 ausentes)

   Passage: House Vote #225

2. AprobadaVotación: Senado23 de marzo de 2026

   49 a favor, 1 en contra (1 sin votar, 3 ausentes)

   Passage By Substitute: Senate Vote #789

3. AprobadaVotación: Cámara de Representantes25 de marzo de 2026

   99 a favor, 64 en contra (4 sin votar, 9 ausentes)

   Agree To Senate Substitute: House Vote #764

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