Senate Bill 161
By: Senators Hufstetler of the 52nd and Payne of the 54th
AS PASSED SENATE
A BILL TO BE ENTITLED
AN ACT
To provide a homestead exemption from Gordon 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 of such homestead; to
provide for definitions; to specify the terms and conditions of the exemption and the
procedures relating thereto; to provide for applicability; to provide for compliance with
constitutional requirements; to provide for a referendum, effective dates, automatic repeal,
mandatory execution of election, and judicial remedies regarding failure to comply; to
provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
(a) As used in this Act, the term:
(1) "Ad valorem taxes" means all ad valorem taxes for educational purposes levied by,
for, or on behalf of the Gordon County school district in this state, except for any ad
valorem taxes levied to pay interest on and to retire bonded indebtedness.
(2) "Adjusted base year assessed value" means the sum of:
(A) The previous adjusted base year assessed value;
(B) An amount equal to the difference between the current year assessed value of the
homestead and the base year assessed value of the homestead, provided that such
amount shall not exceed the total of the previous adjusted base year assessed value of
the homestead multiplied by the inflation rate for the prior year; and
(C) The value of any substantial property change, provided that no such value added
improvements to the homestead shall be duplicated as to the same addition or
improvement.
(3) "Base year assessed value" means:
(A) With respect to an exemption under this section which is first granted to a person
on such person's homestead for the 2026 taxable year, the assessed value for taxable
year 2024, including any final determination of value on appeal pursuant to Code
Section 48-5-311 of the O.C.G.A., of the homestead; or
(B) In all other cases, the assessed value, including any final determination of value on
appeal pursuant to Code Section 48-5-311 of the O.C.G.A., of the homestead from the
taxable year immediately preceding the taxable year in which the exemption under this
section is first granted to the applicant.
(4) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of
the O.C.G.A., as amended, with the additional qualification that it shall include not more
than five contiguous acres of homestead property.
(5) "Inflation rate" means the annual inflationary index rate as determined for a given
year by the Gordon County tax commissioner in accordance with subsection (f) of this
section.
(6) "Previous adjusted base year assessed value" means:
(A) With respect to the year for which the exemption under this section is first granted
to a person on such person's homestead, the base year assessed value; or
(B) In all other cases, the adjusted base year assessed value of the homestead as
calculated in the taxable year immediately preceding the current year, including any
final determination of value on appeal pursuant to Code Section 48-5-311 of the
O.C.G.A.
(7) "Substantial property change" means any increase or decrease in the assessed value
of a homestead derived from additions or improvements to, or the removal of real
property from, the homestead which occurred after the year in which the base year
assessed value is determined for the homestead. The assessed value of the substantial
property changes shall be established following any final determination of value on
appeal pursuant to Code Section 48-5-311 of the O.C.G.A.
(b)(1) Subject to the limitations provided in this section, each resident of the Gordon
County school district is granted an exemption on that person's homestead from ad
valorem taxes in an amount equal to the amount by which the current year assessed value
of that homestead, including any final determination of value on appeal pursuant to Code
Section 48-5-311 of the O.C.G.A., exceeds its previous adjusted base year assessed value.
(2) Except as provided for in subsection (c) of this section, no exemption provided for
in this subsection shall transfer to any subsequent owner of the property, and the assessed
value of the property shall be as provided by law.
(c) No person shall receive the exemption granted by subsection (b) of this section unless
such person or person's agent files an application with the tax commissioner of Gordon
County as will enable the tax commissioner to make a determination regarding the initial and
continuing eligibility of such person for such exemption; provided, however, that any person
who had previously applied for a homestead exemption, was allowed such homestead
exemption for the 2025 tax year, and remains eligible for a homestead exemption for that
same homestead property in the 2026 tax year shall be automatically allowed the exemption
granted under subsection (b) of this section for that homestead without further application.
The tax commissioner shall provide application forms for this purpose.
(d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of
the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year
so long as the person granted the homestead exemption under subsection (b) of this section
occupies the residence as a homestead. After such person has filed the proper application as
provided in subsection (c) of this section, it shall not be necessary to make application
thereafter for any year, and such exemption shall continue to be allowed to such person. It
shall be the duty of any such person granted the homestead exemption under subsection (b)
of this section to notify the tax commissioner of Gordon County in the event that such person
for any reason becomes ineligible for such exemption.
(e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect
any state ad valorem taxes, county ad valorem taxes for county purposes, independent
school district ad valorem taxes for educational purposes, or municipal ad valorem taxes
for municipal purposes.
(2) Except as otherwise provided in paragraph (3) of this subsection, the homestead
exemption granted by subsection (b) of this section shall be in addition to and not in lieu
of any other homestead exemption applicable to ad valorem taxes.
(3) The homestead exemption granted by subsection (b) of this section shall not be
applied in addition to any other base year value homestead exemption provided by law
with respect to the Gordon County school district. In any such event, the Gordon County
tax commissioner shall apply only the base year value homestead exemption that is larger
or more beneficial for the taxpayer with respect to the Gordon County school district.
(f) For the purposes of this section, the Gordon County tax commissioner shall promulgate
a standardized method for determining annual inflation rates which reflect the effects of
inflation and deflation on the cost of living for residents of the Gordon County school district
for a given calendar year. Such method may utilize the Consumer Price Index as reported
by the Bureau of Labor Statistics of the United States Department of Labor or any other
similar index established by the federal government if the Gordon County tax commissioner
determines that such federal index fairly reflects the effects of inflation and deflation on
residents of the Gordon County school district.
(g) The exemption granted by subsection (b) of this section shall apply to all taxable years
beginning on or after January 1, 2026.
SECTION 2.
In accordance with the requirements of Article VII, Section II of the Constitution of the State
of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority
vote in both the Senate and the House of Representatives.
SECTION 3.
The election superintendent of Gordon County shall call and conduct an election as provided
in this section for the purpose of submitting this Act to the electors of the Gordon County
school district for approval or rejection. The election superintendent shall conduct that
election on the Tuesday following the first Monday in November of 2025 and shall issue the
call and conduct that election as provided by general law. The election superintendent shall
cause the date and purpose of the election to be published once a week for two weeks
immediately preceding the date thereof in the official organ of Gordon County. The ballot
shall have written or printed thereon the words:
"( ) YES Shall the Act be approved which provides a homestead exemption from
Gordon County school district ad valorem taxes for educational purposes in
( ) NO 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 desiring
to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on
such question are for approval of the Act, Section 1 of this Act shall become of full force and
effect on January 1, 2026. If the Act is not so approved or if the election is not conducted
as provided in this section, Section 1 of this Act shall not become effective, and this Act shall
be automatically repealed on the 365th calendar day following the election date provided for
in this section. The expense of such election shall be borne by Gordon County. It shall be
the election superintendent's duty to certify the result thereof to the Secretary of State. The
provisions of this section shall be mandatory upon the election superintendent and are not
intended as directory. If the election superintendent fails or refuses to comply with this
section, any elector of the Gordon County school district may apply for a writ of mandamus
to compel the election superintendent to perform his or her duties under this section. If the
court finds that the election superintendent has not complied with this section, the court shall
fashion appropriate relief requiring the election superintendent to call and conduct such
election on the date required by this section or on the next date authorized for special
elections provided for in Code Section 21-2-540 of the O.C.G.A.
SECTION 4.
Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon
its approval by the Governor or upon its becoming law without such approval.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.