HB 20: Madison, City of; ad valorem tax; provide homestead exemption

This bill sets up a homestead exemption from City of Madison property taxes (ad valorem taxes) for people who own and live in a home within a special tax district that covers all of Morgan County. Instead of homeowners paying that portion of city property tax, the lost revenue would be replaced by money raised through a new Local Homestead Option Sales Tax (LHOST), a 1 percent sales tax that voters would also have to approve. The exemption amount would be recalculated each year based on how much the sales tax actually brings in. Homeowners would need to apply once, and the exemption would then renew automatically as long as they keep qualifying. The whole plan depends on a November 2026 referendum; if voters reject it or no election is held, the bill automatically repeals itself about a year later. If approved, the tax change starts January 1, 2027 and runs through the end of 2039.

• Creates a homestead exemption from City of Madison property taxes equal to the value covered by new local sales tax proceeds each year.
• Ties the exemption's size to how much revenue a new 1 percent Local Homestead Option Sales Tax (LHOST) raises within Morgan County each year.
• Requires homeowners to apply once for the exemption, after which it renews automatically unless they become ineligible.
• Sets the exemption to apply from January 1, 2027 through December 31, 2039, then expire.
• Requires a citywide referendum in November 2026 and automatically repeals the whole Act if voters reject it or no valid election occurs.
• Requires a two-thirds vote in both the Georgia House and Senate for the bill to become law, per the state constitution.

Homeowners living in the City of Madison within the special tax district covering Morgan County, the city government that collects property taxes, local tax officials who process exemption applications, and the county election superintendent who must run the November 2026 referendum.

If approved by voters, eligible Madison homeowners would see part or all of their city property tax bill offset by proceeds from a new sales tax instead, shifting some of the local tax burden from property owners toward anyone making purchases in the county, including non-residents.

• Section 1 defines key terms and grants the exemption, sized annually to match net proceeds of the new sales tax collected under O.C.G.A. Article 2C of Chapter 8 of Title 48.
• Section 1(c) and (d) set application rules, allowing automatic renewal once a homeowner is approved and requiring notice if they become ineligible.
• Section 1(e) clarifies the exemption applies only within the special district, only to city taxes, and stacks on top of other homestead exemptions, running from 2027 through the end of 2039.
• Section 3 requires a two-thirds majority vote in both legislative chambers for the bill to take effect, as required by the Georgia Constitution.
• Section 4 schedules a citywide referendum for November 2026, specifies the ballot language, and sets automatic repeal 365 days after the election if voters reject the measure.
• Section 4(c) allows any city elector to seek a court order (writ of mandamus) forcing the election superintendent to hold the vote if they fail to do so.
• Section 5 makes the bill effective upon the Governor's signature or its becoming law without signature, except for the referendum timeline in Section 4.

1. 2026-06-22House Lost Reconsidered Bill/Resolution (Cámara de Representantes)
2. 2026-06-22House Reconsidered (Cámara de Representantes)
3. 2026-06-20House Notice to Reconsider (Cámara de Representantes)
4. 2026-06-20House Third Reading Lost (Cámara de Representantes)
5. 2026-06-20House Third Readers (Cámara de Representantes)
6. 2026-06-20House Committee Favorably Reported (Cámara de Representantes)
7. 2026-06-18House Second Readers (Cámara de Representantes)
8. 2026-06-17House First Readers (Cámara de Representantes)

• Tim Fleming (R, HD-114)Patrocinador principal

1. AprobadaVotación: Cámara de Representantes20 de junio de 2026

   95 a favor, 67 en contra (5 sin votar, 12 ausentes)

   Local Calendar : House Vote #5

2. AprobadaVotación: Cámara de Representantes22 de junio de 2026

   97 a favor, 75 en contra (1 sin votar, 6 ausentes)

   Local Calendar: House Vote #9

3. AprobadaVotación: Cámara de Representantes22 de junio de 2026

   99 a favor, 74 en contra (1 sin votar, 5 ausentes)

   Local Calendar : House Vote #10

• property taxes
• homestead exemption
• local sales tax
• Madison Georgia
• Morgan County referendum