Fayetteville, City of; ad valorem tax for municipal purposes; provide homestead exemption

New city tax break for Fayetteville homeowners

The law creates a city property tax exemption for Fayetteville homes that qualify as homesteads. It starts January 1, 2027, only with majority voter approval in the November 3, 2026, city referendum. If the vote fails or the required election is not held, the act is repealed January 1, 2027. Homeowners or their agents must apply to the city, which must provide forms and information. After approval, no annual application is needed while the home remains eligible; recipients must report lost eligibility. Funding depends on city property taxes collected from all properties compared with 2025 collections. The excess must exceed 100% of 2025 collections—meaning total collections must more than double—to fund next year's exemption. Otherwise, next year's exemption amount is zero. When that threshold is met, the city sets aside the full excess, plus interest, for next year's exemption. After that year's tax rolls are approved, the city sets an equal dollar exemption for each eligible home. The city cannot use more than the available funds, can choose a smaller amount, and can move unused funds to its general fund. This break adds to other city homestead exemptions and covers city taxes, including taxes for municipal bond debt. It does not lower state, county, or school taxes. The city pays election costs, must follow ballot and notice rules, and must certify results to the Secretary of State. A court can order the required election to be held.