SB355: SB355 Paulding County; school district ad valorem taxes for educational purposes; provide a homestead exemption

Currently, homeowners in the Paulding County school district pay school property taxes based on the full assessed value of their home each year. This bill would create a homestead exemption that limits how much a home's taxable value can grow for school tax purposes. Once a homeowner qualifies, their home's 'base year' value would only rise each year by an inflation-adjusted amount (based on a Department of Revenue index) plus the value of any major additions or improvements, rather than jumping to full current market value. The exemption would not apply to state, county, independent school district, or municipal taxes, only Paulding County school district taxes for education. It would generally not transfer to a new owner when a home is sold, though a surviving spouse can keep it. The change requires a two-thirds vote in the General Assembly and voter approval in a Paulding County referendum during the 2026 general primary; if approved, it takes effect January 1, 2027, and if rejected, the Act repeals itself.

• Creates a homestead exemption for Paulding County school district taxes that limits annual increases in a home's taxable value to an inflation-based amount plus qualifying improvements.
• Requires homeowners to apply with the Paulding County tax commissioner, though anyone with an existing 2026 homestead exemption is automatically enrolled for 2027 without reapplying.
• Excludes state, county, independent school district, and municipal property taxes from the exemption, applying it only to Paulding County school district educational taxes.
• Prevents the exemption from stacking with other base-year value homestead exemptions, requiring the tax commissioner to apply whichever exemption benefits the taxpayer more.
• Requires a countywide referendum during the 2026 general primary before the exemption can take effect, with automatic repeal of the whole Act if voters reject it or the election is not held.
• Allows an unremarried surviving spouse to keep receiving the exemption as long as they continue living in the home.

Homeowners in the Paulding County school district who claim a homestead exemption, the Paulding County tax commissioner's office, the county election superintendent who must run the 2026 referendum, and unremarried surviving spouses of exemption holders.

If approved by voters, eligible Paulding County homeowners would see their school tax bills grow more slowly during periods of rising home values, since only an inflation-adjusted portion of value increases would be taxed each year, while other local, county, and state taxes would be unaffected.

• Section 1 defines key terms including 'adjusted base year assessed value,' 'inflation rate,' and 'substantial property change' used to calculate the capped taxable value.
• Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its adjusted base year assessed value for Paulding County school taxes.
• Section 1(c) requires an application to the tax commissioner, but automatically carries over the exemption for people already enrolled for the 2026 tax year.
• Section 1(e) limits the exemption to Paulding County school district educational taxes only and bars it from combining with other base-year value exemptions, using whichever is more favorable.
• Section 1(f) directs the tax commissioner to use a state Department of Revenue standardized method, potentially based on the Consumer Price Index, to set the annual inflation rate.
• Section 1(g) makes the exemption apply starting with the 2027 tax year.
• Section 2 requires a two-thirds vote in both the Senate and House under the Georgia Constitution for the Act to become law.
• Section 3 requires a Paulding County referendum during the 2026 general primary; approval brings Section 1 into effect January 1, 2027, while rejection or a missed election triggers automatic repeal 365 days later.

1. 2025-04-02House Withdrawn, Recommitted (House)
2. 2025-04-02House Committee Favorably Reported (House)
3. 2025-03-31House Second Readers (House)
4. 2025-03-28House First Readers (House)
5. 2025-03-27Senate Passed/Adopted (Senate)
6. 2025-03-27Senate Committee Favorably Reported (Senate)
7. 2025-03-25Senate Read and Referred (Senate)
8. 2025-03-21Senate Hopper (Senate)

• Jason Anavitarte (R, SD-031)Primary sponsor
• Timothy Bearden (R, SD-030)
• Tyler Smith (R, HD-018)

1. PassedSenate voteMarch 27, 2025

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

   Local Consent Calendar: Senate Vote #291

• property taxes
• homestead exemption
• Paulding County
• school taxes
• local referendum