SB235: SB235 Whitfield County; school district ad valorem taxes for educational purposes; provide a homestead exemption

This bill creates a new homestead exemption for Whitfield County school district property taxes. Instead of an exemption for a fixed dollar amount, it limits how much a homeowner's taxable (assessed) value can grow each year for school tax purposes, tying the increase to an inflation rate the Whitfield County tax commissioner would calculate annually, similar to the Consumer Price Index. Any value added by new construction or renovations would still be taxed. Homeowners must apply once with the tax commissioner, after which the exemption renews automatically as long as they still live there. The exemption would not apply to state, county, municipal, or independent school district taxes, only Whitfield County school district taxes. Because it affects local school taxes, the Georgia Constitution requires a two-thirds vote in both legislative chambers and a local referendum. Whitfield County school district voters would decide the measure in November 2025; if approved, it starts for the 2026 tax year, and if rejected, the law is automatically repealed a year after the election.

• Creates a homestead exemption for Whitfield County school district property taxes based on limiting annual increases in assessed value tied to an inflation index rather than a flat dollar amount.
• Requires the Whitfield County tax commissioner to set a yearly inflation rate using indexes like the federal Consumer Price Index to calculate the capped increase.
• Requires homeowners to apply once with the tax commissioner, after which the exemption renews automatically each year without reapplication.
• Excludes state, county, municipal, and independent school district property taxes from the exemption, limiting it to Whitfield County school district educational taxes.
• Requires the exemption to be submitted to Whitfield County school district voters in a November 2025 referendum before it can take effect.
• Automatically repeals the entire Act 365 days after the election if voters reject it or if the election is not held as required.

Homeowners within the Whitfield County school district who claim a homestead exemption, the Whitfield County tax commissioner's office, the Whitfield County election superintendent, and the Whitfield County Board of Education, which relies on school district property tax revenue.

If approved by voters, homeowners in the Whitfield County school district would see their school tax bills grow more slowly during periods of rising property values, since taxable value increases would be capped by an inflation rate rather than rising to full market value each year.

• Section 1 defines key terms including 'base year assessed value,' 'adjusted base year assessed value,' and 'inflation rate,' establishing how the capped value is calculated each year.
• Section 1(b) grants the actual exemption, limiting taxable value growth to the adjusted base year assessed value rather than full current market value.
• Section 1(c) and (d) set application procedures, including automatic carryover for people already receiving a 2025 homestead exemption on the same property.
• Section 1(e) clarifies the exemption applies only to Whitfield County school district taxes and cannot be combined with other base-year value homestead exemptions for the same taxes.
• Section 1(f) requires the Whitfield County tax commissioner to establish a standardized inflation index method, potentially using the federal Consumer Price Index.
• Section 2 requires a two-thirds vote in the Georgia House and Senate under the state constitution's local tax provisions.
• Section 3 requires a November 2025 referendum in Whitfield County school district, with the exemption taking effect January 1, 2026 if approved.
• Section 3 provides that the entire Act is automatically repealed 365 days after the election if voters reject it or the election is not properly conducted.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 110
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
• Whitfield County
• school funding
• local referendum