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

25 SB 77/AP Senate Bill 77 By: Senators Hufstetler of the 52nd and Setzler of the 37th AS PASSED A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from City of Cartersville independent school district ad1 valorem taxes for educational purposes in an amount equal to th e amount by which the2 current year assessed value of a homestead exceeds the adjusted base year assessed value of3 such homestead; to provide for definitions; to specify the term s and conditions of the4 exemption and the procedures relating thereto; to provide for applicability and a sunset; to5 provide for compliance with constitutional requirements; to pro vide for a referendum,6 effective dates, automatic repeal, mandatory execution of elect ion, and judicial remedies7 regarding failure to comply; to provide for related matters; to repeal conflicting laws; and for8 other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 (a) As used in this Act, the term:12 (1) "Ad valorem taxes" means all ad valorem taxes levied by, f or, or on behalf of the13 City of Cartersville independent school district in this state, except for any ad valorem14 taxes levied to pay interest on and to retire bonded indebtedness.15 (2) "Adjusted base year assessed value" means the sum of:16 S. B. 77 - 1 - 25 SB 77/AP (A) The previous adjusted base year assessed value;17 (B) An amount equal to the difference between the current year assessed value of the18 homestead and the base year assessed value of the homestead, pr ovided that such19 amount shall not exceed the total of the previous adjusted base year assessed value of20 the homestead multiplied by the inflation rate for the prior year; and21 (C) The value of any substantial property change, provided that no such value added22 improvements to the homestead shall be duplicated as to the sam e addition or23 improvement.24 (3) "Base year assessed value" means:25 (A) With respect to an exemption under this section which is first granted to a person26 on such person's homestead for the 2026 taxable year, the asses sed value for taxable27 year 2024, including any final determination of value on appeal pursuant to Code28 Section 48-5-311, of the homestead; or29 (B) In all other cases, the assessed value, including any final determination of value on30 appeal pursuant to Code Section 48-5-311, of the homestead from the taxable year31 immediately preceding the taxable year in which the exemption u nder this section is32 first granted to the applicant.33 (4) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of34 the O.C.G.A., as amended, with the additional qualification that it shall include not more35 than five contiguous acres of homestead property.36 (5) "Inflation rate" means the annual inflationary index rate as determined for a given37 year by the governing authority of the City of Cartersville in accordance with subsection38 (f) of this section.39 (6) "Previous adjusted base year assessed value" means:40 (A) With respect to the year for which the exemption under this section is first granted41 to a person on such person's homestead, the base year assessed value; or42 S. B. 77 - 2 - 25 SB 77/AP (B) In all other cases, the adjusted base year assessed value of the homestead as43 calculated in the taxable year immediately preceding the curren t year, including any44 final determination of value on appeal pursuant to Code Section 48-5-311.45 (7) "Substantial property change" means any increase or decrease in the assessed value46 of a homestead derived from additions or improvements to, or th e removal of real47 property from, the homestead which occurred after the year in w hich the base year48 assessed value is determined for the homestead. The assessed v alue of the substantial49 property changes shall be established following any final deter mination of value on50 appeal pursuant to Code Section 48-5-311.51 (b)(1) Subject to the limitations provided in this section, ea ch resident of the City of52 Cartersville independent school district is granted an exemptio n on that person's53 homestead from ad valorem taxes in an amount equal to the amount by which the current54 year assessed value of that homestead, including any final dete rmination of value on55 appeal pursuant to Code Section 48-5-311, exceeds its previous adjusted base year56 assessed value.57 (2) Except as provided for in subsection (c) of this section, no exemption provided for58 in this subsection shall transfer to any subsequent owner of the property, and the assessed59 value of the property shall be as provided by law.60 (c) No person shall receive the exemption granted by subsection (b) of this section unless61 such person or person's agent files an application with the governing authority of the City of62 Cartersville as will enable the governing authority to make a d etermination regarding the63 initial and continuing eligibility of such person for such exemption; provided, however, that64 any person who had previously applied for a homestead exemption , was allowed such65 homestead exemption for the 2025 tax year, and remains eligible for a homestead exemption66 for that same homestead property in the 2026 tax year shall be automatically allowed the67 exemption granted under subsection (b) of this section for that homestead without further68 application. The governing authority shall provide application forms for this purpose.69 S. B. 77 - 3 - 25 SB 77/AP (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of70 the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year71 so long as the person granted the homestead exemption under subsection (b) of this section72 occupies the residence as a homestead. After such person has filed the proper application as73 provided in subsection (c) of this section, it shall not be nec essary to make application74 thereafter for any year, and such exemption shall continue to be allowed to such person. It75 shall be the duty of any such person granted the homestead exemption under subsection (b)76 of this section to notify the governing authority of the City of Cartersville in the event that77 such person for any reason becomes ineligible for such exemption.78 (e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect79 any state ad valorem taxes, county ad valorem taxes for county purposes, county school80 district ad valorem taxes for educational purposes, or municipa l ad valorem taxes for81 municipal purposes.82 (2) Except as otherwise provided in paragraph (3) of this subs ection, the homestead83 exemption granted by subsection (b) of this section shall be in addition to and not in lieu84 of any other homestead exemption applicable to ad valorem taxes.85 (3) The homestead exemption granted by subsection (b) of this section shall not be86 applied in addition to any other base year value homestead exemption provided by law87 with respect to the City of Cartersville independent school district. In any such event, the88 governing authority of the City of Cartersville shall apply onl y the base year value89 homestead exemption that is larger or more beneficial for the taxpayer with respect to the90 City of Cartersville independent school district.91 (f) For the purposes of this section, the governing authority of the City of Cartersville shall92 promulgate a standardized method for determining annual inflati onary index rates which93 reflect the effects of inflation and deflation on the cost of living for residents of the City of94 Cartersville independent school district for a given calendar year. Such method may utilize95 the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States96 S. B. 77 - 4 - 25 SB 77/AP Department of Labor or any other similar index established by the federal government if the97 governing authority of the City of Cartersville determines that such federal index fairly98 reflects the effects of inflation and deflation on residents of the City of Cartersville99 independent school district.100 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years101 beginning on or after January 1, 2026, and ending on December 31, 2030.102 SECTION 2.103 In accordance with the requirements of Article VII, Section II of the Constitution of the State104 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority105 vote in both the Senate and the House of Representatives.106 SECTION 3.107 The municipal election superintendent of the City of Cartersville shall call and conduct an108 election as provided in this section for the purpose of submitting this Act to the electors of109 the City of Cartersville independent school district for approval or rejection. The election110 superintendent shall conduct that election on the Tuesday follo wing the first Monday in111 November of 2025 and shall issue the call and conduct that election as provided by general112 law. The election superintendent shall cause the date and purp ose of the election to be113 published once a week for two weeks immediately preceding the date thereof in the official114 organ of Bartow County. The ballot shall have written or printed thereon the words:115 S. B. 77 - 5 - 25 SB 77/AP "( ) YES116 117 ( ) NO118 119 120 121 122 Shall the Act be approved which provides a homestead exemption from City of Cartersville independent school district ad valorem taxes for educational purposes, with a five-year sunset, in an amount equal to the am ount by which the current year assessed value of a homestead exceeds the adjusted base year assessed value, including any final determination of value on appeal pursuant to Code Section 48-5-311 of the O.C.G.A., as amended, of such homestead?" All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring123 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on124 such question are for approval of the Act, Section 1 of this Act shall become of full force and125 effect on January 1, 2026. If the Act is not so approved or if the election is not conducted126 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall127 be automatically repealed on the 365th calendar day following the election date provided for128 in this section. The expense of such election shall be borne by the governing authority of the129 City of Cartersville. It shall be the election superintendent's duty to certify the result thereof130 to the Secretary of State. The provisions of this section shall be mandatory upon the election131 superintendent and are not intended as directory. If the elect ion superintendent fails or132 refuses to comply with this section, any elector of the City of Cartersville independent school133 district may apply for a writ of mandamus to compel the election superintendent to perform134 his or her duties under this section. If the court finds that the election superintendent has not135 complied with this section, the court shall fashion appropriate relief requiring the election136 superintendent to call and conduct such election on the date required by this section or on the137 next date authorized for special elections provided for in Code Section 21-2-540 of the138 O.C.G.A.139 SECTION 4.140 S. B. 77 - 6 - 25 SB 77/AP Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon141 its approval by the Governor or upon its becoming law without such approval.142 SECTION 5.143 All laws and parts of laws in conflict with this Act are repealed. 144 S. B. 77 - 7 -