HR 1178: General Assembly; provide by general law for local grant and adjustment programs; authorize

Georgia's Constitution currently allows a statewide Homeowner's Incentive Adjustment, a property tax break tied to the homestead exemption (a break on property taxes for a primary home), capped at a benefit equal to $18,000 of assessed home value or the homeowner's actual tax bill, whichever is lower. This resolution proposes a constitutional amendment that would eliminate that dollar cap so the adjustment could match a homeowner's full property tax liability on their home. The amendment would also let the General Assembly pass general laws authorizing local governments and local school systems to set up their own local grant programs and spend local tax money on local versions of this homeowner adjustment. The General Assembly could still appropriate state money each year for grants to local governments and school districts as homeowner tax relief. Because this is a constitutional amendment, it must be approved by Georgia voters in a statewide referendum before taking effect.

• Removes the existing cap that limited the Homeowner's Incentive Adjustment to a benefit equal to $18,000 of assessed home value or the tax bill, whichever was lower.
• Allows the adjustment to equal the homeowner's full ad valorem property tax liability on their homestead with no dollar ceiling.
• Authorizes the General Assembly to pass general laws letting local governments and school systems create their own local grant programs funded with local tax dollars.
• Preserves the General Assembly's ability to appropriate state funds each year as homeowner tax relief grants to local governments and school districts.
• Sends the proposed constitutional amendment to Georgia voters for ratification or rejection in a statewide referendum.

Georgia homeowners who claim the statewide homestead exemption and receive the Homeowner's Incentive Adjustment, local governments and local school systems that could start their own tax relief grant programs, and the state legislature, which would gain new authority to fund and regulate these programs.

If voters approve this amendment, some homeowners could see a larger property tax break than the current $18,000 cap allows, potentially covering their full tax bill on their home. It also opens the door for cities, counties, and school districts to spend local tax money on their own homeowner relief programs.

• Section 1 amends Article VII, Section II-A, Paragraph I of the Georgia Constitution, adding subparagraph (a) letting the General Assembly authorize local grant programs funded by local tax dollars.
• Subparagraph (b) strikes the $18,000 assessed value cap and the 'whichever is lower' limitation, allowing the adjustment to match the homeowner's actual property tax liability.
• Subparagraph (b) keeps the General Assembly's power to appropriate state funds annually as homeowner tax relief grants to local governments and school districts.
• Subparagraph (c) states that adjustments and grants must follow procedures and conditions set by existing or future general law.
• Section 2 sets the ballot language asking voters whether to approve local grants and adjustments and removal of the current benefit cap.

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
• constitutional amendment
• local government funding
• school funding