Madison voters would decide whether homeowners get property tax relief

The proposal would exempt some homestead property value from City of Madison property taxes. It would cover residents of the special district, which covers Morgan County, whose homestead property is in that district. The exemption amount would be determined each year based on net proceeds from the Local Homestead Option Sales Tax collected in the special district. The exemption would add to other homestead exemptions, affect only Madison taxes on property in the district, and leave value above the exempt amount taxable. The bill failed; the exemption is not in effect. It would require approval by more than half the votes cast in the referendum and the required two-thirds vote in both legislative chambers. The proposed exemption would apply to tax years beginning January 1, 2027, through December 31, 2039, if approved. The referendum was set for November 2026.