HB782: HB782 Chatham County Schools' Tax Relief Act; enact

Chatham County homeowners currently pay school district property taxes based on their home's assessed value each year, which can rise as property values increase. This bill would create a homestead exemption that offsets any increase in a home's assessed value above its value in the year the owner first qualifies for the exemption, effectively shielding existing homeowners from school tax increases tied to rising home values. The exemption would not cover new improvements or added land, and it adjusts if property is removed from the homestead. Homeowners would need to apply once with the Chatham County tax commissioner, and the exemption would renew automatically as long as they keep living there; a surviving spouse can keep it too. The exemption would not affect state, county, municipal, or independent school district taxes. Because it requires a two thirds vote in the General Assembly and voter approval in a November 2025 referendum, it would take effect January 1, 2026 only if approved; otherwise the law is automatically repealed.

• Grants Chatham County school district homeowners a property tax exemption equal to the growth in their home's assessed value since the year they first qualified.
• Excludes new improvements or newly added land from the exemption, meaning those additions remain fully taxable.
• Requires a one time application with the Chatham 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 voter approval in a November 2025 referendum and a two thirds legislative vote before the exemption can take effect on January 1, 2026.
• Automatically repeals the entire Act if voters reject it or if the required election is not held.

Homeowners in the Chatham County school district who claim a homestead exemption, the Chatham County tax commissioner's office, which processes applications, and the Chatham County election superintendent, who must run the November 2025 referendum on the measure.

If approved by voters, homeowners in the Chatham County school district would see their school tax bills stop rising along with their home's assessed value, freezing that portion of their tax burden at the year they qualified, while new construction or added land would still be taxed at current value.

• Section 1 names the law the 'Chatham County Schools' Tax Relief Act.'
• Section 2 defines terms like 'base year' and creates the exemption, limiting it to the increase in assessed value over the base year and excluding new improvements or added land.
• Section 2(d) makes the exemption automatically renew yearly after the initial application and allows a surviving spouse to continue receiving it.
• Section 2(e) clarifies the exemption applies only to Chatham County school district taxes, not state, county, municipal, or independent school district taxes.
• Section 3 requires a two thirds majority vote in both the House and Senate for the Act to become law.
• Section 4 schedules a Chatham County referendum for November 2025 and states the exemption takes effect January 1, 2026 only if approved, with automatic repeal otherwise.
• Section 5 sets the general effective date as upon the Governor's approval or the Act becoming law without signature, except for the election provisions.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 105
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-28Senate Passed/Adopted (Senate)
6. 2025-03-28Senate Committee Favorably Reported (Senate)
7. 2025-03-27Senate Read and Referred (Senate)
8. 2025-03-25House Passed/Adopted (House)

• Ron Stephens (R, HD-164)Primary sponsor
• Jesse Petrea (R, HD-166)
• Carl Gilliard (D, HD-162)
• Bill Hitchens (R, HD-161)

1. PassedHouse voteMarch 25, 2025

   170 yea, 0 nay (6 not voting, 4 absent)

   Local Calendar : House Vote #302

2. PassedSenate voteMarch 28, 2025

   53 yea, 0 nay (1 not voting, 2 absent)

   Local Consent Calendar: Senate Vote #313

• property taxes
• homestead exemption
• Chatham County schools
• school tax relief
• local referendum