2023 CODE OF GEORGIA › Title 48 - REVENUE AND TAXATION (§§ 48-1-1 — 48-18-1) › Chapter 5 - AD VALOREM TAXATION OF PROPERTY (§§ 48-5-1 — 48-5-607) › Article 2 - PROPERTY TAX EXEMPTIONS AND DEFERRAL (§§ 48-5-40 — 48-5-84) › Part 1 - TAX EXEMPTIONS (§§ 48-5-40 — 48-5-56) › Section 48-5-44.2 - [For Repeal, See Note] [Effective 1/1/2025] [Homestead exemption]

(a)
For purposes of this Code section, the term:
(1)
'Ad valorem taxes' means all ad valorem taxes levied by, for, or on behalf of the state or any county, consolidated government, municipality, or local school district in this state, except for any ad valorem taxes levied to pay interest on and to retire bonded indebtedness.
(2)
'Adjusted base year assessed value' means the sum of:
(A)
The previous adjusted base year assessed value;
(B)
An amount equal to the difference between the current year assessed value of the homestead and the base year assessed value of the homestead, provided that such amount shall not exceed the total of the previous adjusted base year assessed value of the homestead multiplied by the inflation rate for the prior year; and
(C)
The value of any substantial property change, provided that no such value added improvements to the homestead shall be duplicated as to the same addition or improvement.
(3)
'Base year assessed value' means:
(A)
With respect to an exemption under this Code section which is first granted to a person on such person's homestead for the 2025 taxable year, the assessed value for taxable year 2024, including any final determination of value on appeal pursuant to Code Section
48-5-311
, of the homestead; or
(B)
In all other cases, the assessed value, including any final determination of value on appeal pursuant to Code Section
48-5-311
, of the homestead from the taxable year immediately preceding the taxable year in which the exemption under this Code section is first granted to the applicant.
(4)
'Homestead' means homestead as defined and qualified in Code Section
48-5-40
.
(5)
'Inflation rate' means the annual inflationary index rate as determined for a given year by the commissioner in accordance with subsection (g) of this Code section.
(6)
'Previous adjusted base year assessed value' means:
(A)
With respect to the year for which the exemption under this Code section is first granted to a person on such person's homestead, the base year assessed value; or
(B)
In all other cases, the adjusted base year assessed value of the homestead as calculated in the taxable year immediately preceding the current year, including any final determination of value on appeal pursuant to Code Section
48-5-311
.
(7)
'Substantial property change' means any increase or decrease in the assessed value of a homestead derived from additions or improvements to, or the removal of real property from, the homestead which occurred after the year in which the base year assessed value is determined for the homestead. The assessed value of the substantial property changes shall be established following any final determination of value on appeal pursuant to Code Section
48-5-311
.
(b)
(1)
Subject to the limitations provided in this Code section, each resident of this state is granted an exemption on that person's homestead from ad valorem taxes in an amount equal to the amount by which the current year assessed value of that homestead, including any final determination of value on appeal pursuant to Code Section
48-5-311
, exceeds its previous adjusted base year assessed value.
(2)
Except as provided for in subsection (c) of this Code section, no exemption provided for in this subsection shall transfer to any subsequent owner of the property, and the assessed value of the property shall be as provided by law.
(c)
The surviving spouse of the person who has been granted the exemption provided for in subsection (b) of this Code section shall continue to receive the exemption provided under subsection (b) of this Code section, so long as such surviving spouse continues to occupy the residence as a homestead.
(d)
No person shall receive the exemption granted by subsection (b) of this Code section unless such person or person's agent files an application with the tax receiver or tax commissioner of his or her respective local government or governments charged with the duty of receiving returns of property for taxation giving such information relative to receiving such exemption as will enable such tax receiver or tax commissioner to make a determination regarding the initial and continuing eligibility of such person for such exemption; provided, however, that any person who had previously applied for a homestead exemption, was allowed such homestead exemption for the 2024 tax year, and remains eligible for a homestead exemption for that same homestead property in the 2025 tax year shall be automatically allowed the exemption granted under subsection (b) of this Code section for that homestead without further application. Such tax receiver or tax commissioner shall provide application forms for this purpose.
(e)
The exemption granted by subsection (b) of this Code section shall be claimed and returned as provided in Code Section
48-5-50.1
. Such exemption shall be automatically renewed from year to year so long as the owner occupies the residence as a homestead. After a person or a person's agent has filed the proper application or is automatically granted the homestead exemption as provided in subsection (d) of this Code section, it shall not be necessary to make application thereafter for any year, and the exemption shall continue to be allowed to such person. It shall be the duty of any person granted the homestead exemption under subsection (b) of this Code section to notify the tax receiver or tax commissioner of the local government or governments in the event such person for any reason becomes ineligible for such exemption.
(f)
(1)
Except as otherwise provided in paragraph (2) of this subsection, the homestead exemption granted by subsection (b) of this Code section shall be in addition to and not in lieu of any other homestead exemption applicable to ad valorem taxes.
(2)
The homestead exemption granted by subsection (b) of this Code section shall not be applied in addition to any other base year value homestead exemption provided by law with respect to the given taxing jurisdiction to which the such law applies. In any such event, the tax receiver or tax commissioner of the taxpayer's respective local government or governments charged with the duty of receiving returns of property for taxation shall apply only the base year value homestead exemption that is larger or more beneficial for the taxpayer with respect to the particular taxing jurisdictions to which more than one base year value homestead exemption applies.
(g)
For the purposes of this Code section, the commissioner shall promulgate a standardized method for determining annual inflationary index rates which reflect the effects of inflation and deflation on the cost of living for residents of this state for a given calendar year. Such method may utilize the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department of Labor or any other similar index established by the federal government if the commissioner determines that such federal index fairly reflects the effects of inflation and deflation on residents of this state.
(h)
The exemption granted by subsection (b) of this Code section shall apply to all taxable years beginning on or after January 1, 2025, provided that:
(1)
A constitutional amendment is ratified and becomes effective on January 1, 2025, which authorizes the General Assembly to provide by general law for a homestead exemption that shall not be applicable to certain political subdivisions, which elect to opt out of the homestead exemption by a date certain; and
(2)
The exemption granted by subsection (b) of this Code section shall not be applicable for any county, consolidated government, municipality, or school district for which the governing authority of such political subdivision adopts an opt-out resolution in accordance with subsection (i) of this Code section.
(i)
The governing authority of any county, consolidated government, municipality, or school district may elect to opt out of the homestead exemption otherwise granted by subsection (b) of this Code section with respect to such political subdivision through the adoption of a resolution to do the same by March 1, 2025, after completing the following steps:
(1)
The governing authority shall advertise its intent to do so and shall conduct at least three public hearings thereon, at least one of which shall commence between the hours of 6:00 P.M. and 7:00 P.M., inclusive, on a business weekday. The governing authority shall place an advertisement in a newspaper of general circulation serving the residents of the political subdivision and post such advertisement on its website, which shall read as follows:
INTENT TO OPT OUT OF HOMESTEAD EXEMPTION
The (name of governing authority) intends to opt out of the statewide adjusted base year ad valorem homestead exemption for (name of the political subdivision). All concerned citizens are invited to the public hearing on this matter to be held at (place of meeting) on (date and time).
Times and places of additional public hearings on this matter are at (place of meeting) on (date and time).
Simultaneously with this notice the governing authority shall provide a press release to the local media.
(2)
The advertisement required by paragraph (1) of this subsection shall appear at least one week prior to each hearing, be prominently displayed, be not less than 30 square inches, and not be placed in that section of the newspaper where legal notices appear and shall be posted on the appropriate website at least one week prior to each hearing. In addition to the advertisement specified under this paragraph, the levying or recommending authority may include in the notice reasons or explanations for its intention to opt out of the homestead exemption.
(3)
No resolution to opt out of the homestead exemption shall become effective with respect to a political subdivision unless the procedures and hearings required by this subsection are completed and a copy of such resolution is filed with the Secretary of State by March 1, 2025.
PART III
Repealed by 2024 Ga. Laws 379,§ 4-1, eff. if a constitutional amendment which becomes effective 1/1/2025 and which authorizes the General Assembly to provide by general law for a homestead exemption that applies statewide, but that permits political subdivisions to individually opt out of such homestead exemption, has not been ratified.
Added by 2024 Ga. Laws 379,§ 2-1, eff. 1/1/2025, app. to taxable years beginning on or after 1/1/2025.