Georgia House Bill HB853

Georgia 2025-2026 Regular Session

• Introduced: 3/25/25
• Report Pass: 3/31/25
• Engrossed: 3/31/25
• Refer: 3/31/25
• Report Pass: 4/2/25
• Enrolled: 4/8/25
• Chaptered: 5/14/25
• Passed: 5/14/25

Caption

Tunnel Hill, City of; ad valorem tax for municipal purposes; provide new homestead exemption

Summary

HB 853 creates a new local homestead exemption for residents of the City of Tunnel Hill who are 70 years of age or older. The exemption applies to city ad valorem taxes for municipal purposes and shields up to $325,000 of the assessed value of an eligible homestead from those city taxes. Any value above that amount remains taxable. The bill also extends the exemption to a surviving spouse, so long as the spouse continues to live in the home as a residence and homestead. The bill sets out application and renewal procedures. Eligible homeowners, or their agents, must file an application with the city or its designee, and once approved, the exemption renews automatically each year as long as the property remains the owner’s homestead. The bill requires recipients to notify the city if they become ineligible. It also specifies that the exemption does not apply to state, county, or school taxes, and that it replaces any other city homestead exemption rather than being added on top of one.

Impact

HB 853 would amend the tax treatment of homesteads in Tunnel Hill by reducing municipal property tax liability for qualifying senior homeowners. It does not change state, county, or school district ad valorem taxes, but it would directly affect city revenue by exempting a substantial portion of assessed value from Tunnel Hill municipal taxes. The bill is local legislation and is conditioned on both a two-thirds legislative vote and approval by Tunnel Hill voters in a November 2025 referendum; if approved, it would take effect the following January and otherwise be automatically repealed.

Sentiment

The bill appears to have broad support. It passed the House 165-0 and the Senate 55-1, indicating strong bipartisan approval for the local tax exemption. The absence of committee transcript material suggests there was little recorded public controversy in the available materials, and the voting margins indicate the measure was generally viewed favorably as a targeted benefit for older homeowners in Tunnel Hill.

Contention

The main policy issue is the fiscal tradeoff between tax relief for senior homeowners and reduced municipal tax revenue for the City of Tunnel Hill. Because the exemption is limited to residents age 70 and older and applies only to city taxes, any contention would likely center on whether the city can absorb the revenue loss and whether the benefit is appropriately targeted. The bill also requires a local referendum, so final approval rests with Tunnel Hill voters rather than the legislature alone.