The Senate Rules Committee substitute to HB 92 would require local governments that opted out of the statewide floating homestead exemption in 2025 and do not have a homestead freeze or a floating homestead exemption in place, to follow the same opt out procedures and file a resolution with the Secretary of State by March 1, 2027 to preserve their opt out status. The bill also extends the opt out recension time period that allows local governments to rescind their opt out decisions. For tax year 2025, local governments wishing to rescind their opt out decisions must opt out by April 30, 2025. For tax years 2026 through 2029, local governments wishing to rescind their opt out status must file a resolution with the Secretary of State by March 1 of that year.

The bill also requires local governments that opted out and do not have a homestead freeze or a floating homestead exemption in place, to place a notice on each homestead property’s ad valorem property tax bill notifying property owners of the local government’s decision to opt out. Local governments would be required to place this notice on the property tax bill until December 31, 2029.

House Bill 92 also changes the definition of ‘homestead’ to include no more than five acres of contiguous land surrounding the residence. The bill also allows for a surviving spouse to keep the floating homestead exemption without having to reapply.

The bill requires each local government to provide a certified estimated roll-back rate for the current year no later than 15 days prior to the postmark of the annual assessment notice. If a local government does not certify its estimated roll-back rate before the issuance of the annual notice of assessment, then last year’s millage rate will appear on the notice.

The bill also includes a sales tax exemption for qualifying construction materials used in capital outlay projects for educational purposes and a provision to keep smaller cities that represent no more than five percent of the municipal population from blocking a FLOST for larger cities within the county.

The bill would become effective upon the Governor’s signature and would be applicable to tax years beginning on or after January 1, 2025.

Legislative Tracking

Georgia Municipal Association

Tagged Bills - Opt Out