HB832: HB832 Paulding County; school district ad valorem tax; provide homestead exemption

Currently, homeowners in the Paulding County school district can see their school property tax bill rise each year as their home's assessed value goes up. This bill would create a homestead exemption that limits how much of that increased value counts toward school taxes each year, tying most of the increase to an inflation rate calculated by the Paulding County tax commissioner rather than the full market value gain. The exemption would apply starting with the 2027 tax year, using a homeowner's 2024 or prior-year assessed value as a starting point (the base year), and would only apply to school district taxes for educational purposes, not county, state, municipal, or bond-related taxes. Homeowners would need to apply once, and the exemption would renew automatically. Because it changes school taxation, the bill needs a two-thirds vote in the General Assembly and voter approval in a Paulding County referendum during the 2026 general primary; if voters reject it or no election is held, the law is automatically repealed.

• Creates a new homestead exemption for Paulding County school district property taxes that limits taxable value increases mainly to an inflation rate set by the tax commissioner.
• Defines a 'base year assessed value' using the 2024 tax year (or the prior year for later applicants) as the starting point for calculating the exemption.
• Requires homeowners to apply once with the Paulding County tax commissioner, after which the exemption renews automatically each year.
• Excludes the exemption from applying to state, county, municipal, independent school district, or bond-related property taxes.
• Requires a countywide referendum during the 2026 general primary before the exemption can take effect, with automatic repeal if voters reject it or no election occurs.
• Sets the exemption to apply beginning with the 2027 tax year if approved by voters.

Homeowners within the Paulding County school district who qualify for a homestead exemption, the Paulding County tax commissioner's office, which administers applications and calculates inflation rates, and the Paulding County election superintendent, who must run the required referendum.

If approved by voters, homeowners in the Paulding County school district would see slower growth in the taxable value used for school property taxes, since most annual increases above an inflation-based cap would not count until the home is sold or substantially improved.

• Section 1 defines key terms including 'adjusted base year assessed value,' 'inflation rate,' and 'substantial property change' used to calculate the exemption each year.
• Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its previous adjusted base year assessed value.
• Section 1(c) and (d) set application procedures, allowing automatic renewal each year and automatic continuation for an unremarried surviving spouse.
• Section 1(e) clarifies the exemption applies only to Paulding County school district taxes and does not replace other homestead exemptions unless duplicative.
• Section 1(g) sets the exemption to begin applying to tax years starting January 1, 2027.
• Section 2 requires a two-thirds majority vote in both legislative chambers because the bill affects school taxation under the Georgia Constitution.
• Section 3 requires a Paulding County referendum during the 2026 general primary, with automatic repeal of the Act if voters reject it or the election is not held.
• Section 4 sets the general effective date as approval by the Governor, except where Section 3's election timeline controls.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 100
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-08House Sent to Governor (House)
5. 2025-04-02Senate Passed/Adopted (Senate)
6. 2025-04-02Senate Committee Favorably Reported (Senate)
7. 2025-03-31Senate Read and Referred (Senate)
8. 2025-03-31House Passed/Adopted (House)

• Joseph Gullett (R, HD-019)Primary sponsor
• Kimberly New (R, HD-040)
• Trey Kelley (R, HD-016)
• Tyler Smith (R, HD-018)
• Martin Momtahan (R, HD-017)

1. PassedHouse voteMarch 31, 2025

   165 yea, 0 nay (10 not voting, 5 absent)

   Local Calendar Without Hbs 851 & 852: House Vote #342

2. PassedSenate voteApril 2, 2025

   55 yea, 1 nay

   Supplemental Local Consent Calendar: Senate Vote #400

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