SB335: SB335 Chattooga County; independent school district ad valorem taxes; homestead exemption

Currently, Chattooga County school district property taxes are based on a home's full assessed value each year, which can rise as property values increase. This bill would create a homestead exemption that freezes the taxable value of a homestead at its "base year" level, so the exemption equals whatever amount the home's current assessed value exceeds that base year value. Homeowners would apply once with the Chattooga County tax commissioner and the exemption would renew automatically each year as long as they keep living there, and it would carry over to a surviving spouse. The exemption would not apply to new improvements or added land, to county, state, or municipal taxes, or to bonded indebtedness 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 approved, it takes effect January 1, 2026; if rejected or no election is held, the whole Act repeals automatically about a year later.

• Creates a homestead exemption from Chattooga County school district property taxes equal to the growth in a home's assessed value above its base year value.
• Limits the exemption to homesteads of five contiguous acres or less and excludes new improvements or added land from the frozen base.
• Requires homeowners to file a one-time application with the Chattooga County tax commissioner, after which the exemption renews automatically each year.
• Allows a surviving spouse to keep receiving the exemption as long as they continue living in the home.
• Requires a countywide referendum in November 2025 and a two-thirds vote in the General Assembly before the exemption can take effect.
• Sets an automatic repeal of the entire Act 365 days after the election if voters reject it or no election is held.

Homeowners in the Chattooga County school district who claim a homestead, the Chattooga County tax commissioner's office, which processes applications, and the county election superintendent, who must run the referendum. It does not affect independent school district, county, municipal, or state property taxes.

If approved, eligible homeowners in the Chattooga County school district would see their school property tax bills grow more slowly, since the exemption blocks tax increases tied purely to rising home values, though taxes on new improvements or added land still apply.

• Section 1 defines the exemption as the difference between a homestead's current year assessed value and its base year assessed value, for Chattooga County school district educational taxes only.
• Section 1(c)-(d) requires a one-time application with the Chattooga County tax commissioner and provides automatic annual renewal and survivor continuation.
• Section 1(e) clarifies the exemption does not apply to state, county, municipal, or independent school district taxes and stacks on top of other homestead exemptions.
• Section 1(f) sets the exemption's applicability to taxable years beginning on or after January 1, 2026.
• Section 2 requires a two-thirds majority vote in both chambers of the General Assembly for the Act to become law.
• Section 3 requires a November 2025 referendum in the Chattooga County school district, with automatic repeal 365 days after the election if voters reject it or no election occurs.
• Section 4 sets the general effective date as approval by the Governor or becoming law without signature, except for the referendum timeline in Section 3.

1. 2025-03-25House Second Readers (House)
2. 2025-03-21House First Readers (House)
3. 2025-03-20Senate Passed/Adopted (Senate)
4. 2025-03-20Senate Committee Favorably Reported (Senate)
5. 2025-03-13Senate Read and Referred (Senate)
6. 2025-03-13Senate Hopper (Senate)

• Colton Moore (R, SD-053)Primary sponsor

1. PassedSenate voteMarch 20, 2025

   51 yea, 0 nay (4 not voting, 1 absent)

   Local Consent Calendar: Senate Vote #250

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