HB 1116 — Property Taxes: Homeownership Opportunity and Market Equalization Act of 2026

On April 2nd, the House chamber passed the Senate substitute to House Bill 1116 as amended by the House. The substitute to HB 1116, AM 59 0038 is as follows:

House Bill 1116, known as the, ‘Homeownership Opportunity and Market Equalization Act of 2026, aimed to reduce or eliminate homestead property tax. The key components of the bill includes:

• As of January 1, 2028 creates the LHOST, a 1 percent sales tax, to be split between counties and cities for property tax relief for homesteaded properties. To adopt the LHOST, a Local Act by the General Assembly is required with a following local voter referendum. The LHOST is in addition to any other local sales tax.
• LOST and HOST structures remain in place and unchanged.
• After July 1, 2027, prohibits all local governments from adopting a budget which would provide an increase in property tax revenues by an aggregate total of 9% over any three year period or the greater of 3% or CPI above the rollback rate. The limit does not include costs incurred due to states of emergency. This limit of property tax revenue may be exceeded if approved by a Local Act of the General Assembly or through referendum.
• Requires a special election on a local government's increase in revenue, potentially resulting in an increase in taxes, to be held only in odd-numbered years on the third Tuesday in March or the Tuesday after the first Monday in November. In even-numbered years on the date of the general primary or on the Tuesday after the first Monday in November.
• Requires local governments to notify each taxpayer with property in the jurisdiction if they intend to exceed the rollback rate. Notification must be made directly through the mail and occur at least ten days prior to the first public hearing. If this procedure is not followed, any taxes collected above the rollback rate must be refunded to taxpayers.
• Requires the Secretary of State to call for a nonbinding referendum with ballot language asking whether Georgians should authorize new finance procedures for local governments to provide complete property tax relief for homeowners.
• The bill would become effective upon the Governor's signature.