SB77: SB77 City of Cartersville; independent school district ad valorem taxes for educational purposes; provide a homestead exemption

This bill sets up a homestead exemption for homeowners inside the City of Cartersville independent school district, aimed at school property taxes only (not county, city, or state taxes). Instead of a flat dollar exemption, it caps how much a home's taxable value can grow each year for school tax purposes. The 'base year' value is generally the year before someone first gets the exemption, and each year that value can only rise by the local inflation rate the city sets, plus the value of any major additions or improvements. The bill defines key terms like adjusted base year assessed value, inflation rate, and substantial property change. The exemption applies to homesteads of five acres or less, does not transfer to a new owner when the home is sold, and would run from January 1, 2026 through December 31, 2030, when it expires. Because it affects local taxes, the bill needs a two-thirds vote in the General Assembly and approval by Cartersville voters in a November 2025 referendum before it can take effect.

• Creates a homestead exemption from City of Cartersville independent school district property taxes based on limiting yearly increases in a home's taxable value.
• Ties the annual cap on taxable value growth to an inflation rate that the City of Cartersville's governing authority must calculate each year.
• Requires most homeowners to apply for the exemption, but automatically carries over the exemption for anyone who had it in 2025 and remains eligible in 2026.
• Prevents the new exemption from being combined with any other 'base year value' exemption for the same school district, applying whichever is more favorable to the taxpayer.
• Sets the exemption to apply only from January 1, 2026 through December 31, 2030, after which it ends automatically.
• Requires a citywide referendum in November 2025 and repeals the whole Act if voters reject it or the election is not held.

Homeowners with a primary residence inside the City of Cartersville independent school district, the Cartersville city government and school district (which administer and rely on the tax), and Bartow County election officials who must run the required referendum.

For eligible homeowners, this would slow the growth of the portion of their property tax bill tied to school taxes by locking in a base value that rises only with inflation, rather than with the home's full market value increase, but it does not apply to buyers who purchase the home later or to other local and state taxes.

• Section 1 defines terms including 'ad valorem taxes,' 'base year assessed value,' 'adjusted base year assessed value,' and 'inflation rate,' and limits the homestead definition to five contiguous acres.
• Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its adjusted base year assessed value for school taxes.
• Section 1(c) requires an application but automatically continues the exemption for people who already had a 2025 homestead exemption and remain eligible in 2026.
• Section 1(e) clarifies the exemption applies only to Cartersville school taxes, not state, county, or municipal taxes, and cannot be stacked with another base-year exemption for the same district.
• Section 1(f) requires the City of Cartersville to set a standardized method, possibly based on the federal Consumer Price Index, for calculating the annual inflation rate.
• Section 1(g) limits the exemption to taxable years from January 1, 2026 through December 31, 2030.
• Section 2 requires a two-thirds majority vote in both the Georgia House and Senate for the Act to become law, per the state constitution.
• Section 3 requires a November 2025 referendum of Cartersville independent school district voters, with automatic repeal of the whole Act if voters reject it or no election occurs.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 107
3. 2025-05-09Senate Date Signed by Governor (Senate)
4. 2025-04-07Senate Sent to Governor (Senate)
5. 2025-03-27House Agreed Senate Amend or Sub (House)
6. 2025-03-21Senate Agreed House Amend or Sub As Amended (Senate)
7. 2025-03-04House Passed/Adopted By Substitute (House)
8. 2025-03-04House Third Readers (House)

• Chuck Hufstetler (R, SD-052)Primary sponsor
• Ed Setzler (R, SD-037)
• Matthew Gambill (R, HD-015)

1. PassedSenate voteFebruary 19, 2025

   51 yea, 0 nay (2 not voting, 3 absent)

   Local Consent Calendar: Senate Vote #62

2. PassedHouse voteMarch 4, 2025

   172 yea, 0 nay (6 not voting, 2 absent)

   Local Calendar : House Vote #148

3. PassedSenate voteMarch 21, 2025

   55 yea, 0 nay (0 not voting, 1 absent)

   Agree To House Substitute As Amended By Amendment #2: Senate Vote #274

• property taxes
• homestead exemption
• Cartersville schools
• local referendum
• Bartow County