HB 832: Paulding County; school district ad valorem tax; provide homestead exemption

This bill sets up a floating homestead exemption for the Paulding County school district's property taxes, similar to exemptions used in other Georgia counties. Instead of a flat dollar exemption, it locks in a homeowner's taxable (assessed) value at a base year and only lets that value grow year to year by an inflation-adjusted amount, plus the value of any major additions or improvements. The difference between the home's actual current assessed value and this adjusted base value becomes the exempt amount, shielding homeowners from the full effect of rising property valuations for school tax purposes. The exemption would not apply to state, county, municipal, or independent school district taxes, only Paulding County school district taxes for education, and not to bond debt taxes. Homeowners must apply once with the tax commissioner, and the exemption renews automatically. Because it affects property taxes, the Georgia Constitution requires a two-thirds vote in the General Assembly and voter approval in a referendum, set for the 2026 general primary. If voters reject it or the election isn't held, the law is automatically repealed a year later. If approved, it takes effect January 1, 2027.

• Creates a homestead exemption for Paulding County school district property taxes that limits taxable value growth to an inflation-adjusted amount each year rather than the full market increase.
• Excludes bond-related school taxes and other governments' taxes (state, county, municipal, independent school district) from the exemption's effect.
• Requires homeowners to apply once with the Paulding County tax commissioner, after which the exemption renews automatically each year without reapplication.
• Directs the Paulding County tax commissioner to use a Georgia Department of Revenue inflation index, which may rely on the federal Consumer Price Index, to calculate annual adjustments.
• Requires the exemption to be approved by two-thirds of the General Assembly and by Paulding County school district voters in a referendum during the 2026 general primary before it can take effect.
• Automatically repeals the entire Act 365 days after the referendum if voters reject it or the election is not properly held.

Homeowners in the Paulding County school district who claim a homestead exemption, the Paulding County tax commissioner's office, the Paulding County election superintendent, and local school funding tied to property tax revenue from homesteaded properties within the district.

If approved by voters, eligible Paulding County homeowners would see their school district property tax bills grow more slowly, since taxable value increases would be capped by an inflation formula rather than tracking full market value gains, while other taxes and non-homestead properties would be unaffected.

• Section 1 defines key terms including 'base year assessed value,' 'adjusted base year assessed value,' and 'substantial property change,' which together determine how much of a home's value increase is taxed.
• Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its adjusted base year assessed value, starting with the 2027 tax year.
• Section 1(c) requires an application with the Paulding County tax commissioner, but automatically carries over eligibility for anyone who had a 2026 homestead exemption and remains eligible in 2027.
• Section 1(e) clarifies the exemption applies only to Paulding County school district education taxes, not state, county, municipal, or independent school district taxes, and does not stack with other base-year value exemptions for the same district.
• Section 1(f) requires the tax commissioner to use a state-established inflation index, which may draw on the federal Consumer Price Index, to calculate annual value adjustments.
• Section 2 requires a two-thirds majority vote in both legislative chambers under the Georgia Constitution's tax provisions.
• Section 3 schedules a referendum during the 2026 general primary, specifies the ballot language, and provides for automatic repeal 365 days after the election if the measure fails or the election is not held.
• Section 4 sets the effective date as upon the Governor's approval, except for the referendum timing set in Section 3.

1. 2025-05-09Effective Date
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-19)Primary sponsor
• Kimberly New (R, HD-40)
• Trey Kelley (R, HD-16)
• Tyler Paul Smith (R, HD-18)
• Martin Momtahan (R, HD-17)

1. PassedHouse voteMarch 31, 2025

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

   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 funding
• local referendum