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GeorgiaHB 922025-2026 Regular SessionHouseWALLET

Revenue and taxation; postpone date by which local governing authorities can opt out of base year homestead exemption

Sponsored By: Shaw Blackmon (Republican), Clint Crowe (Republican), Chris Erwin (Republican), Trey Kelley (Republican), Dale Washburn (Republican), Noel Williams (Republican)

Signed by Governor

Ways & MeansRulesGeneral Bill

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

Local sales taxes capped at 2%

Beginning July 1, 2024, combined local sales and use taxes in any area cannot exceed 2 percent, with listed exceptions. The cap does not count the 1 percent education sales tax, up to 1 percent for certain transportation taxes, and up to 1 percent for specified other taxes. Taxes that exceed the cap as of July 1, 2025 but were started under prior law before January 1, 2025 may continue until they expire, but they cannot be renewed. If adding a local tax would push the total over the limit, it cannot be imposed.

Sales tax refund for school projects

Local school systems that have a base year homestead exemption for all residents can get a refund of local sales and use taxes on qualifying construction materials for approved school capital projects funded by the education sales tax. The school system must file a refund request with the Department of Revenue. Refunds do not include interest and must go into the capital outlay fund. This exemption ends December 31, 2033.

New homestead rules for homeowners

The base year homestead exemption now covers only your primary home and up to five contiguous acres around it. Extra adjoining land over five acres no longer gets this exemption. Once you receive the exemption, it renews each year while you live there, and you do not need to reapply. You must tell the local tax office if you stop qualifying. You can apply any time during the calendar year up to the date the tax books close; missing that date waives the exemption for that year.

Local opt-outs and tax bill notices

Local governments that choose to opt out of the base year homestead exemption must advertise, hold at least three public hearings (one starting between 6:00 and 7:00 P.M.), and post notices. They must file the opt‑out resolution with the Secretary of State by March 1, 2025 for the first elections. To keep an opt‑out in place for tax years 2027 and after when no general base‑year exemption exists, they must complete the same steps and file by March 1, 2027. Rescissions must meet set filing dates, including by April 30, 2025 to take effect for tax year 2025, or by March 1 to take effect in later years. If your subdivision opted out and has no general base‑year exemption, your tax bill must show a bold notice with the levying authority’s main phone number; this notice ends for tax years starting after January 1, 2030.

Clearer property tax rates and notices

Your annual assessment notice must show last year’s and current values, property details, and assessor contact info. It must also show each authority’s certified estimated roll‑back rate, or if not certified, last year’s millage and an estimated tax using today’s value. Each taxing authority must calculate and certify its estimated roll‑back rate at least 15 days before notices are mailed. The law also changes how the roll‑back rate is defined and requires certification to county or city tax officers. If an adopted millage exceeds the estimated roll‑back rate, your bill must carry a bold notice naming the authority and warning your tax will be higher.

Rules for special district sales taxes

To put a special district sales tax for property tax relief on the ballot, the county and most cities that levy property tax must already have a base year homestead exemption; cities with 5% or less of the district’s residents are exempt. Governing bodies representing at least half of the district’s municipal residents must sign an agreement that sets the rate, length, and how money is shared; if no agreement is required, the county must pass a resolution with the same details. For services billed monthly, the tax starts with the first bill on or after the effective date. The local government must send a certified copy of the tax action to the Department of Revenue within five business days after election results are certified. Reimposing the tax after it expires uses the same process as the first time.

Sponsors & Cosponsors

Sponsors

  • Shaw Blackmon

    Republican • House

  • Clint Crowe

    Republican • House

  • Chris Erwin

    Republican • House

  • Trey Kelley

    Republican • House

  • Dale Washburn

    Republican • House

  • Noel Williams

    Republican • House

Cosponsors

  • Chuck Hufstetler

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 421 • No: 25

House vote • 3/27/2025

Agree to Senate Substitute

Yes: 165 • No: 0

Senate vote • 3/25/2025

PASSAGE BY SUBSTITUTE

Yes: 52 • No: 2

Senate vote • 3/25/2025

MOTION TO ENGROSS: HB 92, HB 290

Yes: 31 • No: 22

House vote • 2/18/2025

PASSAGE

Yes: 173 • No: 1

Actions Timeline

  1. House Sent to Governor

    4/1/2025House

  2. House Date Signed by Governor

    4/1/2025House

  3. Act 5

    4/1/2025

  4. Effective Date

    4/1/2025

  5. House Agreed Senate Amend or Sub

    3/27/2025House

  6. Senate Engrossed

    3/25/2025Senate

  7. Senate Third Read

    3/25/2025Senate

  8. Senate Passed/Adopted By Substitute

    3/25/2025Senate

  9. Senate Transmitted House

    3/25/2025Senate

  10. Senate Committee Favorably Reported By Substitute

    3/21/2025Senate

  11. Senate Recommitted

    2/28/2025Senate

  12. Senate Read Second Time

    2/27/2025Senate

  13. Senate Committee Favorably Reported By Substitute

    2/26/2025Senate

  14. House Third Readers

    2/18/2025House

  15. House Passed/Adopted By Substitute

    2/18/2025House

  16. House Immediately Transmitted to Senate

    2/18/2025House

  17. Senate Read and Referred

    2/18/2025Senate

  18. House Committee Favorably Reported By Substitute

    2/5/2025House

  19. House Withdrawn, Recommitted

    2/4/2025House

  20. House Committee Favorably Reported By Substitute

    1/29/2025House

  21. House Second Readers

    1/27/2025House

  22. House First Readers

    1/17/2025House

  23. House Hopper

    1/16/2025House

Bill Text

  • HB 92/AP* (v15)

    PDF

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