SB 235: Whitfield County; school district ad valorem taxes for educational purposes; provide a homestead exemption

Currently, homeowners in the Whitfield County school district pay school taxes based on their home's full current assessed value, which can rise sharply as property values increase. This bill would create a homestead exemption that limits taxable growth: each year, the taxable value used for school taxes would only rise by an inflation-adjusted amount rather than jumping to the full market assessment, with adjustments made for major additions or improvements. The exemption would not apply to state, county, independent school district, or municipal taxes, only Whitfield County school district taxes for education. It would not transfer to a new owner when a home is sold. Because it changes property tax law, the Georgia Constitution requires a two-thirds vote in both chambers, and Whitfield County voters must approve it in a November 2025 referendum. If approved, it takes effect January 1, 2026; if rejected or no election is held, the law automatically repeals a year later.

• Creates a homestead exemption from Whitfield County school district taxes equal to the difference between a home's current assessed value and its adjusted base year value.
• Ties annual increases in taxable value to an inflation rate set by the Whitfield County tax commissioner, rather than the full market value increase.
• Requires homeowners to apply once with the tax commissioner, after which the exemption renews automatically each year without reapplication.
• Prevents the exemption from stacking with any other base year value homestead exemption for the same school district, applying whichever is more beneficial.
• Requires a countywide referendum in November 2025, with automatic repeal after 365 days if voters reject it or no election occurs.
• Sets the exemption to apply starting with the 2026 tax year if approved.

Homeowners with a homestead in the Whitfield County school district, the Whitfield County tax commissioner's office, which must calculate inflation rates and process applications, and Whitfield County voters, who must approve the measure in a November 2025 referendum.

If approved, eligible homeowners in the Whitfield County school district would see slower growth in the portion of their home's value used to calculate school taxes, potentially lowering future tax bills compared to full market assessments, though the break would not apply to county, state, or municipal taxes.

• Section 1 defines key terms including 'base year assessed value,' 'adjusted base year assessed value,' and 'inflation rate,' with the base year generally set at 2024 for exemptions first granted in 2026.
• Section 1(b) grants the exemption equal to the gap between current assessed value and the adjusted base year value, and specifies it does not transfer to a new owner unless otherwise provided.
• Section 1(c) requires an application with the Whitfield County tax commissioner, but automatically carries over the exemption for people who already had a similar exemption in 2025 and remain eligible.
• Section 1(e) excludes state, county, independent school district, and municipal taxes from the exemption, and bars stacking it with other base year exemptions for the same school district.
• Section 1(f) directs the Whitfield County tax commissioner to set a standardized method for calculating annual inflation rates, which may use the federal Consumer Price Index.
• Section 2 requires a two-thirds vote in both the Senate and House because the measure affects ad valorem taxation under the Georgia Constitution.
• Section 3 calls for a Whitfield County referendum on November 4, 2025 (the Tuesday after the first Monday in November), with the law taking effect January 1, 2026 if approved, or automatically repealing 365 days after the election if not.

1. 2025-05-09Effective Date
2. 2025-05-09Act 110
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
• Whitfield County
• school district funding
• local referendum