SB 234: City of Dalton; independent school district ad valorem taxes for educational purposes; provide a homestead exemption

Currently, when property values rise in the City of Dalton independent school district, homeowners' school tax bills can rise along with the full assessed value of their homes. This bill creates a homestead exemption that limits how much of that increase counts toward school taxes each year, based on an inflation-adjusted 'base year' value rather than the full current market value. The exemption applies to homesteads of up to five contiguous acres and is recalculated every year using an inflation rate the City of Dalton must set using a standardized method, such as the federal Consumer Price Index. It does not apply to state, county, or municipal taxes, only to City of Dalton school taxes for educational purposes. Because it changes a local tax rule, the bill required a two-thirds vote in the General Assembly and voter approval in a referendum held in November 2025; if approved, it takes effect January 1, 2026, and if rejected, the whole Act is automatically repealed.

• Creates a homestead exemption limiting annual increases in a home's taxable value for City of Dalton independent school district property taxes.
• Ties the exemption's growth to an inflation rate the City of Dalton must calculate each year using a standardized method.
• Automatically renews the exemption yearly without reapplication once a homeowner is first approved, unless they become ineligible.
• Excludes the exemption from applying to state, county, or municipal taxes, and bars stacking it with other base year value exemptions for the same school district.
• Required a two-thirds vote in the General Assembly and a November 2025 referendum of Dalton school district voters before taking effect.
• Automatically repeals the entire Act if voters rejected it or if the required election was not held.

Homeowners within the City of Dalton independent school district who claim a homestead exemption, the City of Dalton's governing authority, which must calculate inflation rates and process applications, and the Whitfield County election superintendent, who was required to run the referendum.

For qualifying Dalton homeowners, this exemption slows the growth of the portion of their home's value subject to school taxes, potentially reducing future school tax bills compared to full market value increases. It only affects school taxes for the City of Dalton district, not county, state, or municipal taxes.

• Section 1(a) defines key terms including 'base year assessed value' (generally the 2024 value for exemptions first granted in 2026) and 'adjusted base year assessed value,' which grows with inflation and property improvements.
• 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, and states it does not transfer to new owners except as specified.
• Section 1(c) requires an application to the City of Dalton's governing authority, but automatically carries over the exemption for people who had it in 2025 and remain eligible in 2026.
• Section 1(e) excludes state, county, and municipal taxes from the exemption and prevents combining it with other base year value exemptions for the same school district.
• Section 1(f) requires Dalton's governing authority to set a standardized annual inflation rate, which may use the federal Consumer Price Index.
• Section 1(g) applies the exemption starting with the 2026 taxable year.
• Section 2 required a two-thirds majority vote in both the Senate and House because the bill involves a constitutional tax matter.
• Section 3 required a November 2025 referendum of City of Dalton independent school district voters, with automatic repeal of the Act if voters rejected it or the election was not properly held.

1. 2025-05-09Effective Date
2. 2025-05-09Act 109
3. 2025-05-09Senate Date Signed by Governor (Senate)
4. 2025-04-10Senate Sent to Governor (Senate)
5. 2025-04-04House Passed/Adopted (House)
6. 2025-04-04House Reconsidered (House)
7. 2025-04-04House Third Reading Lost (House)
8. 2025-04-04House Third Readers (House)

• Chuck Payne (R, SD-54)Primary sponsor
• Kasey Carpenter (R, HD-4)

1. PassedSenate voteMarch 3, 2025

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

   LOCAL CONSENT CALENDAR: Senate Vote #114

2. PassedHouse voteApril 4, 2025

   112 yea, 59 nay (1 not voting, 8 excused)

   Local Calendar: House Vote #434

3. PassedHouse voteApril 4, 2025

   135 yea, 0 nay (35 not voting, 10 excused)

   Recon SB 234, 235, & 336: House Vote #435

4. PassedHouse voteApril 4, 2025

   147 yea, 2 nay (17 not voting, 14 excused)

   SBs 234, 235, & 336 Passage: House Vote #436

• property taxes
• homestead exemption
• City of Dalton
• school taxes
• Whitfield County