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SB 5

City of Toccoa; ad valorem taxes; homestead property determined annually for the special district based upon the proceeds of a new Local Homestead Option Sales Tax (LHOST); provide homestead exemption

2026 Special Session Introduced by Bo Hatchett

The bill would fund annual homestead tax relief for eligible properties in a Toccoa special district using proceeds from a new Local Homestead Option Sales Tax (LHOST).

Senate Reconsidered Lost
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Bill Summary · SB 5

Bill Summary: SB 5 (Georgia) – 2026 Session

Purpose and Intent

SB 5 proposes a local, city-level tax and property tax framework for the City of Toccoa. The bill centers on establishing a Local Homestead Option Sales Tax (LHOST) and using its proceeds to determine annual ad valorem tax relief for homestead properties within a special district. The core idea is to fund a homestead exemption or related relief for residents by leveraging revenue from a new local sales tax.

Key Provisions and Changes

  • Creation of Local Homestead Option Sales Tax (LHOST):
    The bill authorizes the City of Toccoa to implement a new Local Sales Tax (LHOST) designated to support homestead property relief. The levy and administration would follow the state’s framework for local option sales taxes, subject to applicable voter and legislative approval processes.

  • Annual Determination of Homestead Property Relief:
    For properties within the designated special district, the amount of homestead relief (exemption or reduction) would be determined on an annual basis. The calculation would be tied to the proceeds of LHOST, ensuring that the level of relief could be adjusted year to year based on actual revenue.

  • Ad Valorem Tax Implications:
    The bill links LHOST proceeds to the local ad valorem tax landscape. The intended effect is to lower property tax liability for qualifying homestead properties within the district, funded by the new sales tax revenue.

  • Special District Framework:
    Relief measures apply within a defined special district in Toccoa, where the homestead exemption and tax relief mechanisms would be implemented. The structure suggests targeted benefits rather than a citywide program.

  • Homestead Exemption/Relief Mechanism:
    While the exact design details are not fully provided in the text snippet, the bill contemplates a homestead exemption or equivalent relief that reduces assessed value or tax liability for eligible homeowners, financed by LHOST.

Who Would Be Affected

  • Eligible Homeowners in the Special District:
    Homeowners with qualifying homestead status located within the City of Toccoa’s special district would be the primary beneficiaries, receiving annual tax relief funded by LHOST proceeds.

  • Property Tax System in Toccoa:
    The local ad valorem tax base and tax collections would be affected insofar as annual relief reduces tax bills for eligible properties. The mechanism is designed to be revenue-neutral or revenue-based on LHOST receipts, depending on annual revenue.

  • Local Government Finance Administration:
    City of Toccoa and relevant tax assessing/collecting authorities would implement annual determinations, monitor LHOST receipts, and apply the exemptions or relief to eligible properties.

Procedural and Timeline Aspects

  • Legislative Status:

    • Senate Committee Favorably Reported (as of 2026-06-22) with prior steps including notice to reconsider and reconsideration actions noted in the record.
    • History indicates passage through initial stages (hopper, read and referred, etc.) and committee action, followed by favorable committee reporting and subsequent reconsideration steps.

  • Implementation Considerations:

    • Likely requires local voter approval or adherence to Georgia’s process for approving local option sales taxes (LHOST) and district-specific property relief, consistent with constitutional and statutory requirements for local taxes.
    • Annual determination of relief suggests annual budgeting steps by the city, potential adjustments to exemptions, and alignment with LHOST revenue forecasts.

Notable Details

  • Sponsor: Chiefly sponsored with a co-sponsor identified as Bo Hatchett.
  • Jurisdiction and Scope: Georgia, City of Toccoa, targeting a special district for homestead relief funded by LHOST.
  • Impact Focus: Direct relief on ad valorem taxes for homestead properties in the designated district; annual recalibration based on LHOST proceeds.

If you’d like, I can tailor this into a one-page briefing for policymakers or draft a sample analysis of fiscal impact based on hypothetical LHOST revenue scenarios.

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

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