SB161: SB161 Gordon County; school district ad valorem taxes for educational purposes; provide homestead exemption

Gordon County homeowners currently pay school district property taxes based on their home's full assessed value each year. This bill would create a homestead exemption that limits how much that taxable value can grow annually for Gordon County school district taxes only. It works by setting a 'base year' value and then limiting future increases to an inflation-adjusted amount, plus the value of any major improvements, so tax bills tied to rising home values grow more slowly. Homeowners would apply through the Gordon County tax commissioner, and those who had a 2025 homestead exemption and stay eligible would be enrolled automatically for 2026. The exemption would not apply to state, county, municipal, or independent school district taxes, only Gordon County school district taxes. Because it changes taxation, the bill needs a two-thirds vote in the General Assembly and voter approval in a November 2025 referendum; if voters reject it, the whole Act is automatically repealed a year after the election.

• Creates a homestead exemption from Gordon County school district property taxes equal to the difference between a home's current assessed value and its adjusted base year value.
• Limits annual increases in the taxable base value to an inflation rate set yearly by the Gordon County tax commissioner, plus the value of substantial property changes like additions.
• Requires homeowners to apply for the exemption but automatically enrolls anyone who had a 2025 homestead exemption and remains eligible in 2026.
• Specifies the exemption applies only to Gordon County school district taxes, not state, county, municipal, or independent school district taxes.
• Requires a November 2025 referendum in the Gordon County school district before the exemption can take effect, with automatic repeal of the whole Act if voters reject it or no election occurs.

Homeowners within the Gordon County school district, the Gordon County tax commissioner's office, which must administer applications and calculate annual inflation rates, and the Gordon County election superintendent, who must call and conduct the referendum.

If approved by voters, homeowners in the Gordon County school district would see slower growth in the portion of their home's value subject to school property taxes, even as market values rise, potentially reducing future school tax bills compared to current law.

• Section 1 defines key terms including 'adjusted base year assessed value,' 'base year assessed value,' and 'substantial property change' used to calculate the exemption.
• Section 1(b) grants the exemption equal to the difference between current assessed value and the adjusted base year value, and states it does not transfer to new owners.
• Section 1(c) and (d) set application procedures, including automatic renewal and automatic enrollment for people with a 2025 homestead exemption who remain eligible in 2026.
• Section 1(e) clarifies the exemption applies only to Gordon County school district taxes and cannot be combined with another base year value homestead exemption; the more beneficial one applies.
• Section 1(f) directs the Gordon County tax commissioner to set a standardized method for determining annual inflation rates, which may use the federal Consumer Price Index.
• Section 2 requires a two-thirds majority vote in both the Senate and House for the Act to become law, per the Georgia Constitution.
• Section 3 requires a November 2025 referendum in the Gordon County school district, with the exemption taking effect January 1, 2026 if approved, or the Act being automatically repealed 365 days after the election if rejected.

1. 2025-02-26House Second Readers (House)
2. 2025-02-24House First Readers (House)
3. 2025-02-21Senate Passed/Adopted (Senate)
4. 2025-02-21Senate Committee Favorably Reported (Senate)
5. 2025-02-13Senate Read and Referred (Senate)
6. 2025-02-12Senate Hopper (Senate)

• Chuck Hufstetler (R, SD-052)Primary sponsor
• Chuck Payne (R, SD-054)

1. PassedSenate voteFebruary 21, 2025

   46 yea, 0 nay (9 not voting, 1 absent)

   Local Consent Calendar: Senate Vote #78

• property taxes
• homestead exemption
• Gordon County
• school district taxes
• local referendum