HB 698: Walker County; ad valorem tax for educational purposes; provide homestead exemption

This bill sets up two new homestead exemptions from Walker County school district property taxes, which fund local education. Homeowners age 70 to 74 would get an exemption of $50,000 off the assessed value of their home for school tax purposes. Homeowners 75 or older who have lived in the district five years or more would get an exemption covering the full assessed value of their home, meaning they would owe no school property tax on that home. Surviving spouses can keep the exemption if they are old enough and continue living in the home. The exemptions would not affect state, county, municipal, or independent school district taxes, and would replace rather than stack with other similar exemptions. Because the bill needs a two-thirds vote in the General Assembly and voter approval in a November 2026 referendum, it would only take effect starting with the 2027 tax year if approved; otherwise it repeals itself a year after the vote.

• Creates a $50,000 school tax exemption on the assessed home value for Walker County school district residents aged 70 to 74.
• Creates a full exemption from Walker County school district property taxes for residents 75 or older who have lived in the district five years or more.
• Allows an unremarried surviving spouse to keep either exemption if they meet a minimum age (67 or 70) and keep living in the home.
• Requires homeowners to apply once with the Walker County tax commissioner, after which the exemption renews automatically each year.
• Limits the exemptions to Walker County school district taxes only, not state, county, municipal, or independent school district taxes.
• Requires a countywide referendum in November 2026 and a two-thirds vote in the General Assembly before the exemptions can take effect.

Homeowners age 70 and older in the Walker County school district, especially those 75 or older who have lived there five years or more, along with their surviving spouses. The Walker County tax commissioner and election superintendent also have new administrative duties under the bill.

If approved by voters, many older homeowners in the Walker County school district would see their school property tax bills shrink significantly or disappear entirely starting in 2027, which could reduce revenue available to local schools unless offset elsewhere.

• Section 1 defines 'homestead' and sets the two exemption tiers: $50,000 off assessed value for ages 70-74, full exemption for those 75+ with five years' residency.
• Section 1(c) and (d) require a one-time application with the Walker County tax commissioner, with automatic annual renewal.
• Section 1(e) clarifies the exemptions apply only to Walker County school district taxes, not state, county, municipal, or independent school district taxes.
• Section 1(f) sets the exemptions to begin with tax years starting on or after January 1, 2027.
• Section 2 requires a two-thirds majority vote in both the House and Senate for the Act to become law.
• Section 3 requires a November 2026 referendum in the Walker County school district, with automatic repeal 365 days later if voters reject it or no election is held.
• Section 4 sets the general effective date as approval by the Governor, except for the referendum-tied provisions in Section 3.

1. 2025-05-13Effective Date
2. 2025-05-13Act 211
3. 2025-05-13House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-25Senate Passed/Adopted (Senate)
6. 2025-03-25Senate Committee Favorably Reported (Senate)
7. 2025-03-11Senate Read and Referred (Senate)
8. 2025-03-10House Passed/Adopted (House)

• Steve Tarvin (R, HD-2)Primary sponsor
• Mike Cameron (R, HD-1)

1. PassedHouse voteMarch 10, 2025

   165 yea, 0 nay (8 not voting, 7 excused)

   Local Calendar: House Vote #270

2. PassedSenate voteMarch 25, 2025

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

   LOCAL CONSENT CALENDAR: Senate Vote #277

• property taxes
• homestead exemption
• Walker County
• senior citizens
• school funding