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

25 LC 44 3024 Senate Bill 235 By: Senator Payne of the 54th AS PASSED A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from Whitfield County school district ad valorem taxes1 for educational purposes in an amount equal to the amount by wh ich the current year2 assessed value of a homestead exceeds the adjusted base year as sessed value of such3 homestead; to provide for definitions; to specify the terms and conditions of the exemption4 and the procedures relating thereto; to provide for applicability; to provide for compliance5 with constitutional requirements; to provide for a referendum, effective dates, automatic6 repeal, mandatory execution of election, and judicial remedies regarding failure to comply;7 to 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 levied by, f or, or on behalf of the12 Whitfield County school district in this state, except for any ad valorem taxes levied to13 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. 235 - 1 - 25 LC 44 3024 (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 Whitfield 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. 235 - 2 - 25 LC 44 3024 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, each resident of the Whitfield52 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, 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 Whitfield61 County as will enable the tax commissioner to make a determination regarding the initial62 and continuing eligibility of such person for such exemption; provided, however, that any63 person who had previously applied for a homestead exemption, wa s allowed such64 homestead exemption for the 2025 tax year, and remains eligible f o r a h o m e s t e a d65 exemption for that same homestead property in the 2026 tax year shall be automatically66 allowed the exemption granted under subsection (b) of this sect ion for that homestead67 without further application. The tax commissioner shall provide application forms for this68 purpose.69 S. B. 235 - 3 - 25 LC 44 3024 (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.170 of the O.C.G.A., as amended. The exemption shall be automatica lly renewed from year71 to year so long as the person granted the homestead exemption under subsection (b) of this72 section occupies the residence as a homestead. After such pers on has filed the proper73 application as provided in subsection (c) of this section, it shall not be necessary to make74 application thereafter for any year, and such exemption shall continue to be allowed to such75 person. It shall be the duty of any such person granted the ho mestead exemption under76 subsection (b) of this section to notify the tax commissioner o f Whitfield County in the77 event that 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, independent80 school district ad valorem taxes for educational purposes, or municipal ad valorem taxes81 for 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 Whitfield County school district. In any su ch event, the Whitfield88 County tax commissioner shall apply only the base year value homestead exemption that89 is larger or more beneficial for the taxpayer with respect to the Whitfield County school90 district.91 (f) For the purposes of this section, the Whitfield County tax commissioner shall92 promulgate a standardized method for determining annual inflationary index rates which93 reflect the effects of inflation and deflation on the cost of living for residents of Whitfield94 County for a given calendar year. Such method may utilize the Consumer Price Index as95 reported by the Bureau of Labor Statistics of the United States Department of Labor or any96 S. B. 235 - 4 - 25 LC 44 3024 other similar index established by the federal government if th e Whitfield County tax97 commissioner determines that such federal index fairly reflects the effects of inflation and98 deflation on residents of the Whitfield County school district.99 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years100 beginning on or after January 1, 2026.101 SECTION 2.102 In accordance with the requirements of Article VII, Section II of the Constitution of the State103 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority104 vote in both the Senate and the House of Representatives.105 SECTION 3.106 The election superintendent of Whitfield County shall call and conduct an election as107 provided in this section for the purpose of submitting this Act to the electors of the Whitfield108 County school district for approval or rejection. The election superintendent shall conduct109 that election on the Tuesday following the first Monday in November of 2025 and shall issue110 the call and conduct that election as provided by general law. The election superintendent111 shall cause the date and purpose of the election to be published once a week for two weeks112 immediately preceding the date thereof in the official organ of Whitfield County. The ballot113 shall have written or printed thereon the words:114 "( ) YES115 116 ( ) NO117 118 119 120 Shall the Act be approved which provides a homestead exemption from Whitfield 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?" S. B. 235 - 5 - 25 LC 44 3024 All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring121 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on122 such question are for approval of the Act, Section 1 of this Act shall become of full force and123 effect on January 1, 2026. If the Act is not so approved or if the election is not conducted124 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall125 be automatically repealed on the 365th calendar day following the election date provided for126 in this section. The expense of such election shall be borne by Whitfield County. It shall be127 the election superintendent's duty to certify the result thereof to the Secretary of State. The128 provisions of this section shall be mandatory upon the election superintendent and are not129 intended as directory. If the election superintendent fails or refuses to comply with this130 section, any elector of the Whitfield County school district ma y apply for a writ of131 mandamus to compel the election superintendent to perform his o r her duties under this132 section. If the court finds that the election superintendent has not complied with this section,133 the court shall fashion appropriate relief requiring the electi on superintendent to call and134 conduct such election on the date required by this section or on the next date authorized for135 special elections provided for in Code Section 21-2-540 of the O.C.G.A.136 SECTION 4.137 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon138 its approval by the Governor or upon its becoming law without such approval.139 SECTION 5.140 All laws and parts of laws in conflict with this Act are repealed.141 S. B. 235 - 6 -