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HB 1200

Chatham County; City of Savannah; school district ad valorem tax; homestead exemption; provisions

2025-2026 Regular Session Introduced by Carl Gilliard and 4 co-sponsors

HB 1200 caps future increases to the adjusted base year homestead value at 2025 levels, preventing growth above that after 2025 for educational taxes in Chatham County and Savannah

Effective Date
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Bill Summary · HB 1200

Summary of HB 1200 (2025-26, Georgia)

Purpose and intent

  • HB 1200 amends a 1999 act that provides a base year assessed value homestead exemption from Chatham County and City of Savannah School District ad valorem taxes for educational purposes.
  • The core aim is to cap future increases in the adjusted base year assessed value of a homestead at the value set in tax year 2025, effectively preventing increases above the 2025 level in subsequent years.

Key provisions and changes

  • Definition adjustment (Section 1):

    • Revisions to the definition of “Adjusted base year assessed value”:
    • The adjusted value will equal the base year value plus annual increases equal to the percentage change in the Consumer Price Index (CPI) for all Urban Consumers (CPI-U) from the base year to tax year 2025.
    • If the current year’s assessed value is less than or equal to the base year value, the adjusted base year value equals the current year value.
    • Importantly, the adjusted base year value for any tax year after 2026 cannot exceed the adjusted base year value for tax year 2025. This creates a ceiling on increases after 2025.

  • Constitutional compliance (Section 2):

    • Acknowledges that the Act requires a two-thirds majority in both chambers to become law (consistent with Georgia constitutional requirements for certain tax measures).

  • Referendum and election process (Section 3):

    • Requires an election in which voters of the Chatham County and City of Savannah School District vote to approve or reject the measure.
    • The election is set for the 2026 general primary. The election must be published in the official county publication for two consecutive weeks prior to the election.
    • Ballot language will present a Yes/No on whether the Act amending the adjusted base year assessed value homestead exemption should be approved to prevent future increases above the 2025 assessed value.
    • If approved by a majority of voters, Section 1 becomes fully effective on July 1, 2026; if not approved or if the election isn’t conducted as required, the Act is repealed automatically on the 365th day after the election date.
    • The cost of the election is borne by Chatham County. The Election Superintendent is required to certify results to the Secretary of State. Mandamus relief is available if the election official does not comply.

  • Effective date and repeal (Sections 4–5):

    • The Act becomes effective upon governor’s approval or when it becomes law without approval, subject to the referendum outcome.
    • Any conflicting laws are repealed.

Who would be affected

  • Homeowners in Chatham County and the City of Savannah School District who have homesteads classified for educational ad valorem taxes.
  • The exemption operates as a cap on how much the adjusted base year value can increase in future years, potentially limiting tax liability growth tied to base year values for educational purposes.

Procedural and timeline aspects

  • Requires a constitutional two-thirds vote in both chambers to become law.
  • If approved, the referendum would occur during the 2026 general primary, with specific publication and ballot requirements outlined.
  • Effective date contingent on referendum result: July 1, 2026, if approved; otherwise automatic repeal after the election.
  • Election costs borne by Chatham County; mandatory execution and potential mandamus remedies provided if officials fail to comply.

Notable specifics

  • The adjusted base year value increase mechanism uses CPI-U changes from the base year to 2025.
  • The 2025 base year value acts as the floor for the 2026 onwards adjustment, with the explicit cap that post-2026 values cannot exceed the 2025-adjusted value.

This summary focuses on the bill’s substantive changes to the homestead exemption framework for the Chatham County and City of Savannah School District and the associated referendum process.

Compiled from official sources — confirm details with the bill’s official record.

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