SB234: SB234 City of Dalton; independent school district ad valorem taxes for educational purposes; provide a homestead exemption

Right now, homeowners in the City of Dalton independent school district pay school property taxes based on their home's full assessed value each year, which can rise as property values increase. This bill would create a floating homestead exemption that limits taxable value growth to roughly the inflation rate each year, plus the value of any major additions or improvements, so a homeowner's school tax bill would not jump as sharply when property values rise quickly. The exemption only applies to City of Dalton school taxes for education, not to state, county, or municipal taxes, and does not apply to bonded debt taxes. Homeowners must apply once and the exemption renews automatically. Because it changes how a specific school district taxes property, the state constitution requires a two thirds vote in the General Assembly and local voter approval. Whitfield County must hold a referendum in November 2025, and if voters reject it or no election happens, the law is automatically repealed about a year later.

• Creates a homestead exemption limiting annual increases in a home's taxable value for City of Dalton school taxes to roughly the inflation rate, plus any added improvements.
• Requires homeowners to apply once with the City of Dalton governing authority, after which the exemption renews automatically each year without reapplying.
• Excludes homeowners who already have another base year value exemption from stacking both, applying only whichever exemption benefits the taxpayer more.
• Requires a November 2025 referendum in the City of Dalton independent school district before the law can take effect on January 1, 2026.
• Automatically repeals the entire Act 365 days after the election if voters reject it or if no election is held as required.

Homeowners with a primary residence (homestead) inside the City of Dalton independent school district, the City of Dalton's governing authority, which must set inflation rates and process applications, and the Whitfield County election superintendent, who must run the referendum.

If approved, eligible Dalton homeowners would see their school property tax bills grow more slowly even if their home's market value rises quickly, shifting more of the tax burden onto new buyers or properties without the exemption, while the school district's revenue growth from existing homes would be limited to roughly inflation.

• Section 1 defines key terms including 'base year assessed value,' 'adjusted base year assessed value,' and 'inflation rate,' setting 2024 as the base year for exemptions first granted in 2026.
• Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its adjusted base year value, so taxable value growth is capped near inflation.
• Section 1(e) limits the exemption strictly to City of Dalton school district taxes for education, excluding state, county, and municipal taxes and bonded debt taxes.
• Section 1(f) directs the City of Dalton's governing authority to set a standardized annual inflation rate, which may be based on the federal Consumer Price Index.
• Section 2 requires a two-thirds vote in both the House and Senate for the Act to become law, as required by the Georgia Constitution.
• Section 3 requires a Whitfield County referendum on the Tuesday after the first Monday in November 2025, with the law taking effect January 1, 2026 only if a majority approve.
• Section 3 provides that if voters reject the measure or no valid election occurs, the Act is automatically repealed 365 days after the election date.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 109
3. 2025-05-09Senate Date Signed by Governor (Senate)
4. 2025-04-10Senate Sent to Governor (Senate)
5. 2025-04-04House Passed/Adopted (House)
6. 2025-04-04House Reconsidered (House)
7. 2025-04-04House Third Reading Lost (House)
8. 2025-04-04House Third Readers (House)

• Chuck Payne (R, SD-054)Primary sponsor
• Kasey Carpenter (R, HD-004)

1. PassedSenate voteMarch 3, 2025

   52 yea, 0 nay (4 not voting, 0 absent)

   Local Consent Calendar: Senate Vote #114

2. PassedHouse voteApril 4, 2025

   112 yea, 59 nay (1 not voting, 8 absent)

   Local Calendar : House Vote #434

3. PassedHouse voteApril 4, 2025

   135 yea, 0 nay (35 not voting, 10 absent)

   Recon Sb 234, 235, & 336: House Vote #435

4. PassedHouse voteApril 4, 2025

   147 yea, 2 nay (17 not voting, 14 absent)

   Sbs 234, 235, & 336 Passage: House Vote #436

• property taxes
• homestead exemption
• City of Dalton schools
• Whitfield County referendum
• school funding