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

25 LC 44 3030 Senate Bill 161 By: Senators Hufstetler of the 52nd and Payne of the 54th AS PASSED SENATE A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from Gordon County school district ad valorem taxes for1 educational purposes in an amount equal to the amount by which the current year assessed2 value of a homestead exceeds the adjusted base year assessed value of such homestead; to3 provide for definitions; to specify the terms and conditions of the exemption and the4 procedures relating thereto; to provide for applicability; to p rovide for compliance with5 constitutional requirements; to provide for a referendum, effective dates, automatic repeal,6 mandatory execution of election, and judicial remedies regardin g failure to comply; to7 provide for related matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 (a) As used in this Act, the term:11 (1) "Ad valorem taxes" means all ad valorem taxes for educational purposes levied by,12 for, or on behalf of the Gordon County school district in this state, except for any ad13 valorem taxes levied to pay interest on and to retire bonded indebtedness.14 (2) "Adjusted base year assessed value" means the sum of:15 (A) The previous adjusted base year assessed value;16 S. B. 161 - 1 - 25 LC 44 3030 (B) An amount equal to the difference between the current year assessed value of the17 homestead and the base year assessed value of the homestead, pr ovided that such18 amount shall not exceed the total of the previous adjusted base year assessed value of19 the homestead multiplied by the inflation rate for the prior year; and20 (C) The value of any substantial property change, provided that no such value added21 improvements to the homestead shall be duplicated as to the sam e addition or22 improvement.23 (3) "Base year assessed value" means:24 (A) With respect to an exemption under this section which is first granted to a person25 on such person's homestead for the 2026 taxable year, the asses sed value for taxable26 year 2024, including any final determination of value on appeal pursuant to Code27 Section 48-5-311 of the O.C.G.A., of the homestead; or28 (B) In all other cases, the assessed value, including any final determination of value on29 appeal pursuant to Code Section 48-5-311 of the O.C.G.A., of the homestead from the30 taxable year immediately preceding the taxable year in which the exemption under this31 section is first granted to the applicant.32 (4) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of33 the O.C.G.A., as amended, with the additional qualification that it shall include not more34 than five contiguous acres of homestead property.35 (5) "Inflation rate" means the annual inflationary index rate as determined for a given36 year by the Gordon County tax commissioner in accordance with subsection (f) of this37 section.38 (6) "Previous adjusted base year assessed value" means:39 (A) With respect to the year for which the exemption under this section is first granted40 to a person on such person's homestead, the base year assessed value; or41 (B) In all other cases, the adjusted base year assessed value of the homestead as42 calculated in the taxable year immediately preceding the curren t year, including any43 S. B. 161 - 2 - 25 LC 44 3030 final determination of value on appeal pursuant to Code Section 48-5-311 of the44 O.C.G.A.45 (7) "Substantial property change" means any increase or decrease in the assessed value46 of a homestead derived from ad ditions 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 of the O.C.G.A.51 (b)(1) Subject to the limitations provided in this section, ea ch resident of the Gordon52 County school district is granted an exemption on that person's homestead from ad53 valorem taxes in an amount equal to the amount by which the current year assessed value54 of that homestead, including any final determination of value on appeal pursuant to Code55 Section 48-5-311 of the O.C.G.A., exceeds its previous adjusted base year assessed value.56 (2) Except as provided for in subsection (c) of this section, no exemption provided for57 in this subsection shall transfer to any subsequent owner of the property, and the assessed58 value of the property shall be as provided by law.59 (c) No person shall receive the exemption granted by subsection (b) of this section unless60 such person or person's agent files an application with the tax commissioner of Gordon61 County as will enable the tax commissioner to make a determination regarding the initial and62 continuing eligibility of such person for such exemption; provided, however, that any person63 who had previously applied for a homestead exemption, was allow ed such homestead64 exemption for the 2025 tax year, and remains eligible for a hom estead exemption for that65 same homestead property in the 2026 tax year shall be automatically allowed the exemption66 granted under subsection (b) of this section for that homestead without further application. 67 The tax commissioner shall provide application forms for this purpose.68 (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of69 the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year70 S. B. 161 - 3 - 25 LC 44 3030 so long as the person granted the homestead exemption under subsection (b) of this section71 occupies the residence as a homestead. After such person has filed the proper application as72 provided in subsection (c) of this section, it shall not be nec essary to make application73 thereafter for any year, and such exemption shall continue to be allowed to such person. It74 shall be the duty of any such person granted the homestead exemption under subsection (b)75 of this section to notify the tax commissioner of Gordon County in the event that such person76 for any reason becomes ineligible for such exemption.77 (e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect78 any state ad valorem taxes, county ad valorem taxes for county purposes, independent79 school district ad valorem taxes for educational purposes, or municipal ad valorem taxes80 for municipal purposes.81 (2) Except as otherwise provided in paragraph (3) of this subs ection, the homestead82 exemption granted by subsection (b) of this section shall be in addition to and not in lieu83 of any other homestead exemption applicable to ad valorem taxes.84 (3) The homestead exemption granted by subsection (b) of this section shall not be85 applied in addition to any other base year value homestead exemption provided by law86 with respect to the Gordon County school district. In any such event, the Gordon County87 tax commissioner shall apply only the base year value homestead exemption that is larger88 or more beneficial for the taxpayer with respect to the Gordon County school district.89 (f) For the purposes of this section, the Gordon County tax commissioner shall promulgate90 a standardized method for dete rmining annual inflation rates wh ich reflect the effects of91 inflation and deflation on the cost of living for residents of the Gordon County school district92 for a given calendar year. Such method may utilize the Consumer Price Index as reported93 by the Bureau of Labor Statistics of the United States Departme nt of Labor or any other94 similar index established by the federal government if the Gordon County tax commissioner95 determines that such federal index fairly reflects the effects of inflation and deflation on96 residents of the Gordon County school district.97 S. B. 161 - 4 - 25 LC 44 3030 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years98 beginning on or after January 1, 2026.99 SECTION 2.100 In accordance with the requirements of Article VII, Section II of the Constitution of the State101 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority102 vote in both the Senate and the House of Representatives.103 SECTION 3.104 The election superintendent of Gordon County shall call and conduct an election as provided105 in this section for the purpose of submitting this Act to the e lectors of the Gordon County106 school district for approval or rejection. The election superi ntendent shall conduct that107 election on the Tuesday following the first Monday in November of 2025 and shall issue the108 call and conduct that election as provided by general law. The election superintendent shall109 cause the date and purpose of the election to be published once a w e e k f o r t w o w e e k s110 immediately preceding the date thereof in the official organ of Gordon County. The ballot111 shall have written or printed thereon the words:112 "( ) YES113 114 ( ) NO115 116 117 118 Shall the Act be approved which provides a homestead exemption from Gordon County school district ad valorem taxes for educational purposes in an amount equal to the amount 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 desiring119 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on120 such question are for approval of the Act, Section 1 of this Act shall become of full force and121 effect on January 1, 2026. If the Act is not so approved or if the election is not conducted122 S. B. 161 - 5 - 25 LC 44 3030 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall123 be automatically repealed on the 365th calendar day following the election date provided for124 in this section. The expense of such election shall be borne by Gordon County. It shall be125 the election superintendent's duty to certify the result thereof to the Secretary of State. The126 provisions of this section shall be mandatory upon the election superintendent and are not127 intended as directory. If the election superintendent fails or refuses to comply with this128 section, any elector of the Gordon County school district may apply for a writ of mandamus129 to compel the election superintendent to perform his or her duties under this section. If the130 court finds that the election superintendent has not complied with this section, the court shall131 fashion appropriate relief requiring the election superintenden t to call and conduct such132 election on the date required by this section or on the next da te authorized for special133 elections provided for in Code Section 21-2-540 of the O.C.G.A.134 SECTION 4.135 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon136 its approval by the Governor or upon its becoming law without such approval.137 SECTION 5.138 All laws and parts of laws in conflict with this Act are repealed.139 S. B. 161 - 6 -