--- title: SB 234. City of Dalton; independent school district ad valorem taxes for educational purposes; provide a homestead exemption collection: bills id: 2025-2026/sb234 cite_as: SB 234, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/sb234 md_url: https://georgiacommons.org/bills/2025-2026/sb234.md text_url: https://georgiacommons.org/bills/2025-2026/sb234/text source_url: https://www.legis.ga.gov/legislation/70650 date: 2025-05-09 status: passed corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/sb233.md next: https://georgiacommons.org/bills/2025-2026/sb235.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 1298 omitted_url: https://georgiacommons.org/bills/2025-2026/sb234.md?full=1 bill_number: SB 234 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: Senate bill_type: bill status_date: 2025-05-09 last_action: Effective Date 2025-05-09 sponsors: - Chuck Payne - Kasey Carpenter text_version: Enrolled has_text: true legiscan_url: https://legiscan.com/GA/bill/SB234/2025 upstream_id: 1980001 summaries_model: claude-sonnet-5 topic_tags: - property taxes - homestead exemption - City of Dalton schools - Whitfield County referendum - school funding --- # SB 234. City of Dalton; independent school district ad valorem taxes for educational purposes; provide a homestead exemption ## Text 25 LC 44 3080 Senate Bill 234 By: Senator Payne of the 54th AS PASSED A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from City of Dalton independen t school district ad1 valorem taxes for educational purposes in an amount equal to th e amount by which the2 current year assessed value of a homestead exceeds the adjusted base year assessed value of3 such homestead; to provide for definitions; to specify the term s and conditions of the4 exemption and the procedures relating thereto; to provide for a pplicability; to provide for5 compliance with constitutional requirements; to provide for a r eferendum, effective dates,6 automatic repeal, mandatory execution of election, and judicial remedies regarding failure7 to comply; to provide for related matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 (a) As used in this Act, the term:11 (1) "Ad valorem taxes" means all ad valorem taxes levied by, f or, or on behalf of the12 City of Dalton independent school district in this state, except for any ad valorem taxes13 levied to pay interest on and to retire bonded indebtedness.14 (2) "Adjusted base year assessed value" means the sum of:15 (A) The previous adjusted base year assessed value;16 S. B. 234 - 1 - 25 LC 44 3080 (B) An amount equal to the difference between the current year assessed value of the17 homestead and the base year assessed value of the homestead, pr ovided that such18 amount shall not exceed the total of the previous adjusted base year assessed value of19 the homestead multiplied by the inflation rate for the prior year; and20 (C) The value of any substantial property change, provided that no such value added21 improvements to the homestead shall be duplicated as to the sam e addition or22 improvement.23 (3) "Base year assessed value" means:24 (A) With respect to an exemption under this section which is first granted to a person25 on such person's homestead for the 2026 taxable year, the asses sed value for taxable26 year 2024, including any final determination of value on appeal pursuant to Code27 Section 48-5-311, of the homestead; or28 (B) In all other cases, the assessed value, including any final determination of value on29 appeal pursuant to Code Section 48-5-311, of the homestead from the taxable year30 immediately preceding the taxable year in which the exemption u nder this section is31 first granted to the applicant.32 (4) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of33 the O.C.G.A., as amended, with the additional qualification that it shall include not more34 than five contiguous acres of homestead property.35 (5) "Inflation rate" means the annual inflationary index rate as determined for a given36 year by the governing authority of the City of Dalton in accordance with subsection (f)37 of this section.38 (6) "Previous adjusted base year assessed value" means:39 (A) With respect to the year for which the exemption under this section is first granted40 to a person on such person's homestead, the base year assessed value; or41 S. B. 234 - 2 - 25 LC 44 3080 (B) In all other cases, the adjusted base year assessed value of the homestead as42 calculated in the taxable year immediately preceding the curren t year, including any43 final determination of value on appeal pursuant to Code Section 48-5-311.44 (7) "Substantial property change" means any increase or decrease in the assessed value45 of a homestead derived from additions or improvements to, or th e removal of real46 property from, the homestead which occurred after the year in w hich the base year47 assessed value is determined for the homestead. The assessed v alue of the substantial48 property changes shall be established following any final deter mination of value on49 appeal pursuant to Code Section 48-5-311.50 (b)(1) Subject to the limitations provided in this section, ea ch resident of the City of51 Dalton independent school district is granted an exemption on that person's homestead52 from ad valorem taxes in an amount equal to the amount by which the current year53 assessed value of that homestead, including any final determination of value on appeal54 pursuant to Code Section 48-5-311, exceeds its previous adjuste d base year assessed55 value.56 (2) Except as provided for in subsection (c) of this section, no exemption provided for57 in this subsection shall transfer to any subsequent owner of the property, and the assessed58 value of the property shall be as provided by law.59 (c) No person shall receive the exemption granted by subsection (b) of this section unless60 such person or person's agent files an application with the governing authority of the City of61 Dalton as will enable the governing authority to make a determination regarding the initial62 and continuing eligibility of such person for such exemption; p rovided, however, that any63 person who had previously applied for a homestead exemption, was allowed such homestead64 exemption for the 2025 tax year, and remains eligible for a hom estead exemption for that65 same homestead property in the 2026 tax year shall be automatically allowed the exemption66 granted under subsection (b) of this section for that homestead without further application. 67 The governing authority shall provide application forms for this purpose.68 S. B. 234 - 3 - 25 LC 44 3080 (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of69 the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year70 so long as the person granted the homestead exemption under subsection (b) of this section71 occupies the residence as a homestead. After such person has filed the proper application as72 provided in subsection (c) of this section, it shall not be nec essary to make application73 thereafter for any year, and such exemption shall continue to be allowed to such person. It74 shall be the duty of any such person granted the homestead exemption under subsection (b)75 of this section to notify the governing authority of the City of Dalton in the event that such76 person for any reason becomes ineligible for such exemption.77 (e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect78 any state ad valorem taxes, county ad valorem taxes for county purposes, county school79 district ad valorem taxes for educational purposes, or municipa l ad valorem taxes for80 municipal purposes.81 (2) Except as otherwise provided in paragraph (3) of this subs ection, the homestead82 exemption granted by subsection (b) of this section shall be in addition to and not in lieu83 of any other homestead exemption applicable to ad valorem taxes.84 (3) The homestead exemption granted by subsection (b) of this section shall not be85 applied in addition to any other base year value homestead exemption provided by law86 with respect to the City of Dalton independent school district. In any such event, the87 governing authority of the City of Dalton shall apply only the base year value homestead88 exemption that is larger or more beneficial for the taxpayer wi th respect to the City of89 Dalton independent school district.90 (f) For the purposes of this section, the governing authority of the City of Dalton shall91 promulgate a standardized method for determining annual inflati onary index rates which92 reflect the effects of inflation and deflation on the cost of living for residents of the City of93 Dalton independent school district for a given calendar year. Such method may utilize the94 Consumer Price Index as reported by the Bureau of Labor Statist ics of the United States95 S. B. 234 - 4 - 25 LC 44 3080 Department of Labor or any other similar index established by the federal government if the96 governing authority of the City of Dalton determines that such federal index fairly reflects97 the effects of inflation and deflation on residents of the City of Dalton independent school98 district.99 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years100 beginning on or after January 1, 2026.101 SECTION 2.102 In accordance with the requirements of Article VII, Section II of the Constitution of the State103 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority104 vote in both the Senate and the House of Representatives.105 SECTION 3.106 The election superintendent of Whitfield County shall call and conduct an election as107 provided in this section for the purpose of submitting this Act to the electors of the City of108 Dalton independent school district for approval or rejection. The election superintendent109 shall conduct that election on the Tuesday following the first Monday in November of 2025110 and shall issue the call and conduct that election as provided by general law. The election111 superintendent shall cause the date and purpose of the election to be published once a week112 for two weeks immediately preceding the date thereof in the off icial organ of Whitfield113 County. The ballot shall have written or printed thereon the words:114 "( ) YES115 116 ( ) NO117 118 119 120 Shall the Act be approved which provides a homestead exemption from City of Dalton independent school district ad valorem taxes for educ ational purposes in an amount equal to the amount by which the current year assessed value of a homestead exceeds the adjusted base year as sessed value, including any final determination of value on appeal pur suant to Code Section 48-5-311 of the O.C.G.A., as amended, of such homestead?" S. B. 234 - 5 - 25 LC 44 3080 All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring121 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on122 such question are for approval of the Act, Section 1 of this Act shall become of full force and123 effect on January 1, 2026. If the Act is not so approved or if the election is not conducted124 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall125 be automatically repealed on the 365th calendar day following the election date provided for126 in this section. The expense of such election shall be borne b y the City of Dalton127 independent school district. It shall be the election superintendent's duty to certify the result128 thereof to the Secretary of State. The provisions of this section shall be mandatory upon the129 election superintendent and are not intended as directory. If the election superintendent fails130 or refuses to comply with this section, any elector of the City of Dalton independent school131 district may apply for a writ of mandamus to compel the election superintendent to perform132 his or her duties under this section. If the court finds that the election superintendent has not133 complied with this section, the court shall fashion appropriate relief requiring the election134 superintendent to call and conduct such election on the date required by this section or on the135 next date authorized for special elections provided for in Code Section 21-2-540 of the136 O.C.G.A.137 SECTION 4.138 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon139 its approval by the Governor or upon its becoming law without such approval.140 SECTION 5.141 All laws and parts of laws in conflict with this Act are repealed.142 S. B. 234 - 6 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. A Senate bill would give homeowners in the City of Dalton independent school district a special property tax break that caps how much of their home's rising value can be taxed for school purposes, pending voter approval in a November 2025 referendum. ### Plain-language summary Right now, homeowners in the City of Dalton independent school district pay school property taxes based on their home's full assessed value each year, which can rise as property values increase. This bill would create a floating homestead exemption that limits taxable value growth to roughly the inflation rate each year, plus the value of any major additions or improvements, so a homeowner's school tax bill would not jump as sharply when property values rise quickly. The exemption only applies to City of Dalton school taxes for education, not to state, county, or municipal taxes, and does not apply to bonded debt taxes. Homeowners must apply once and the exemption renews automatically. Because it changes how a specific school district taxes property, the state constitution requires a two thirds vote in the General Assembly and local voter approval. Whitfield County must hold a referendum in November 2025, and if voters reject it or no election happens, the law is automatically repealed about a year later. ### What it does - Creates a homestead exemption limiting annual increases in a home's taxable value for City of Dalton school taxes to roughly the inflation rate, plus any added improvements. - Requires homeowners to apply once with the City of Dalton governing authority, after which the exemption renews automatically each year without reapplying. - Excludes homeowners who already have another base year value exemption from stacking both, applying only whichever exemption benefits the taxpayer more. - Requires a November 2025 referendum in the City of Dalton independent school district before the law can take effect on January 1, 2026. - Automatically repeals the entire Act 365 days after the election if voters reject it or if no election is held as required. ### Who it affects Homeowners with a primary residence (homestead) inside the City of Dalton independent school district, the City of Dalton's governing authority, which must set inflation rates and process applications, and the Whitfield County election superintendent, who must run the referendum. ### Why it matters If approved, eligible Dalton homeowners would see their school property tax bills grow more slowly even if their home's market value rises quickly, shifting more of the tax burden onto new buyers or properties without the exemption, while the school district's revenue growth from existing homes would be limited to roughly inflation. ### Key provisions - Section 1 defines key terms including 'base year assessed value,' 'adjusted base year assessed value,' and 'inflation rate,' setting 2024 as the base year for exemptions first granted in 2026. - Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its adjusted base year value, so taxable value growth is capped near inflation. - Section 1(e) limits the exemption strictly to City of Dalton school district taxes for education, excluding state, county, and municipal taxes and bonded debt taxes. - Section 1(f) directs the City of Dalton's governing authority to set a standardized annual inflation rate, which may be based on the federal Consumer Price Index. - Section 2 requires a two-thirds vote in both the House and Senate for the Act to become law, as required by the Georgia Constitution. - Section 3 requires a Whitfield County referendum on the Tuesday after the first Monday in November 2025, with the law taking effect January 1, 2026 only if a majority approve. - Section 3 provides that if voters reject the measure or no valid election occurs, the Act is automatically repealed 365 days after the election date. ## Status - Status: Passed (2025-05-09) - Last action: Effective Date 2025-05-09 (2025-05-09) - Sponsors: Chuck Payne, Kasey Carpenter - Official page: https://www.legis.ga.gov/legislation/70650 > The history, votes, and amendments (1,298 characters) are at https://georgiacommons.org/bills/2025-2026/sb234.md?full=1