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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

8 provisions identified: 4 benefits, 2 costs, 2 mixed.

Land limits for homeowners’ tax exemption

The base-year homestead exemption covers your primary home and up to five connected acres. For land assessed under Georgia Code 48-5-7.4 or 48-5-7.7, it also includes the portion excluded from those assessment benefits. The land limit affects how much of your property qualifies for the tax exemption.

Some local sales taxes exceed caps

Certain metropolitan-area public transportation taxes are exempt from Georgia’s 2% local sales and use tax ceiling. This covers qualifying county taxes under Part 2 of Article 2A for an authorized metropolitan transportation system. Local taxes above the ceiling on July 1, 2025, can continue if started legally under rules predating January 1, 2025. They continue under the laws in place before July 1, 2025, only until expiration or termination. Afterward, the jurisdiction must follow the ceiling; these changes do not themselves impose a new tax.

Local choices shape homeowners’ tax relief

Local governments can cancel a homestead exemption opt-out by adopting a resolution and filing it with the Secretary of State. The filing deadline was April 30, 2025, for 2025 relief; it is March 1 each year for 2026–2029. Beginning January 1, 2027, prior opt-outs without a generally applicable base-year or adjusted base-year exemption need renewal. Those governments must repeat notice and public hearing steps and file by March 1, 2027, to keep opting out. Through December 31, 2029, their homestead tax bills must include a bold opt-out notice and the authority’s main phone number.

Sales taxes can fund property relief

Voters must approve a special-district sales tax dedicated to property tax relief, shifting some costs to local purchases. Rates use 0.05-percentage-point steps, up to 1%, and can cover groceries, alcohol, and motor fuels. For motor fuels, only the retail price above $3 per gallon is taxable; areas imposing Article 4 taxes are excluded. Before a referendum, the county and qualifying municipalities generally need a base-year or adjusted base-year homestead exemption. A property-taxing municipality is exempt from that requirement if it represents no more than 5% of the district’s property-taxing municipal residents. When no intergovernmental agreement is required, the county or consolidated government covering the district must adopt the required resolution.

Clearer property tax notices for homeowners

Property assessment notices must use Georgia’s statewide form. They show the estimated roll-back rate when the taxing authority certifies it by the required deadline. Otherwise, they show last year’s tax rate and estimate taxes using that rate and your current assessment. When the adopted rate exceeds the estimate shown on your assessment notice, your bill must carry a bold warning identifying the authority. These notices do not change the tax owed.

Easier exemption filing for homeowners

Eligible surviving spouses keep an established homestead exemption without applying again. This applies after the homeowner properly applied or received the exemption automatically. Homeowners or surviving spouses must tell the local tax receiver or tax commissioner when eligibility ends. During reassessment, you can file your exemption application and schedule with an appeal, or instead of an appeal. This filing option does not change the exemption amount or guarantee approval.

School construction gets local tax refunds

Qualifying school systems can recover local, but not state, sales and use taxes on school construction materials. Projects must be approved and funded through an educational sales tax. The school system must offer all residents a base-year or adjusted base-year homestead exemption for school taxes. Materials must remain in the completed project or its real property; materials kept by contractors do not qualify. Systems request refunds through Georgia’s Department of Revenue and receive no interest. Refunds must go into a capital outlay fund for authorized educational sales-tax uses; the exemption ends December 31, 2033.

Property relief funds reach qualifying towns

Some municipalities that do not join a property-relief sales-tax agreement still receive a share of remaining proceeds. The rule applies when these municipalities together have less than half the population of all property-taxing municipalities in the district. Each qualifying municipality must receive at least its population-based share of the remaining money distributed to municipalities. Municipalities outside the tax area are excluded. Governments without a property tax or qualifying homestead exemption receive no share.

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 • Other: 1

Senate vote • 3/25/2025

MOTION TO ENGROSS: HB 92, HB 290

Yes: 31 • No: 22 • Other: 2

Senate vote • 3/25/2025

PASSAGE BY SUBSTITUTE

Yes: 52 • No: 2 • Other: 2

House vote • 2/18/2025

PASSAGE

Yes: 173 • No: 1 • Other: 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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