HB833: HB833 Cherokee County; school district ad valorem tax; provide homestead exemption

25 LC 47 3396 House Bill 833 By: Representatives Ridley of the 22nd, Thomas of the 21st, Scoggins of the 14th, Byrd of the 20th, Ballinger of the 23rd, and others A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from Cherokee 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 Cherokee County school district for educational purposes, excep t for any ad valorem13 taxes levied to 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 H. B. 833 - 1 - 25 LC 47 3396 (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 2025, 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 Cherokee 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 H. B. 833 - 2 - 25 LC 47 3396 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 Cherokee52 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 of the O.C.G.A., 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 Cherokee61 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 H. B. 833 - 3 - 25 LC 47 3396 (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 Cherokee County in the77 event that such person for any reason becomes ineligible for su ch exemption. The78 unremarried surviving spouse of the person who has been granted the exemption provided79 for in subsection (b) of this section shall continue to receive the exemption provided under80 subsection (b) of this section, so long as that unremarried sur viving spouse continues to81 occupy the home as a residence and homestead.82 (e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect83 any state ad valorem taxes, county ad valorem taxes for county purposes, independent84 school district ad valorem taxes for educational purposes, or municipal ad valorem taxes85 for municipal purposes.86 (2) Except as otherwise provided in paragraph (3) of this subs ection, the homestead87 exemption granted by subsection (b) of this section shall be in addition to and not in lieu88 of any other homestead exemption applicable to ad valorem taxes.89 (3) The homestead exemption granted by subsection (b) of this section shall not be90 applied in addition to any other base year value homestead exemption provided by law91 with respect to the Cherokee County school district. In any su ch event, the Cherokee92 County tax commissioner shall apply only the base year value homestead exemption that93 is larger or more beneficial for the taxpayer with respect to the Cherokee County school94 district.95 H. B. 833 - 4 - 25 LC 47 3396 (f) For the purposes of this section, the Cherokee County tax commissioner shall96 promulgate a standardized method for determining annual inflationary index rates which97 reflect the effects of inflation and deflation on the cost of living for residents of Cherokee98 County for a given calendar year. Such method may utilize the Consumer Price Index as99 reported by the Bureau of Labor Statistics of the United States Department of Labor or any100 other similar index established by the federal government if th e Cherokee County tax101 commissioner determines that such federal index fairly reflects the effects of inflation and102 deflation on residents of the Cherokee County school district.103 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years104 beginning on or after January 1, 2026.105 SECTION 2.106 In accordance with the requirements of Article VII, Section II of the Constitution of the State107 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority108 vote in both the Senate and the House of Representatives.109 SECTION 3.110 The election superintendent of Cherokee County shall call and c onduct an election as111 provided in this section for the purpose of submitting this Act to the electors of the Cherokee112 County school district for approval or rejection. The election superintendent shall conduct113 that election on the Tuesday following the first Monday in November of 2025 and shall issue114 the call and conduct that election as provided by general law. The election superintendent115 shall cause the date and purpose of the election to be published once a week for two weeks116 immediately preceding the date thereof in the official organ of Cherokee County. The ballot117 shall have written or printed thereon the words:118 H. B. 833 - 5 - 25 LC 47 3396 "( ) YES119 120 ( ) NO121 122 123 124 Shall the Act be approved which provides a homestead exemption from Cherokee 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?" All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring125 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on126 such question are for approval of the Act, Section 1 of this Act shall become of full force and127 effect on January 1, 2026. If the Act is not so approved or if the election is not conducted128 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall129 be automatically repealed on the 365th calendar day following the election date provided for130 in this section. The expense of such election shall be borne by Cherokee County. It shall be131 the election superintendent's duty to certify the result thereof to the Secretary of State. The132 provisions of this section shall be mandatory upon the election superintendent and are not133 intended as directory. If the election superintendent fails or refuses to comply with this134 section, any elector of the Cherokee County school district may apply for a writ of135 mandamus to compel the election superintendent to perform his o r her duties under this136 section. If the court finds that the election superintendent has not complied with this section,137 the court shall fashion appropriate relief requiring the electi on superintendent to call and138 conduct such election on the date required by this section or on the next date authorized for139 special elections provided for in Code Section 21-2-540 of the O.C.G.A.140 SECTION 4.141 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon142 its approval by the Governor or upon its becoming law without such approval.143 H. B. 833 - 6 - 25 LC 47 3396 SECTION 5.144 All laws and parts of laws in conflict with this Act are repealed.145 H. B. 833 - 7 -