SB 355: Paulding County; school district ad valorem taxes for educational purposes; provide a homestead exemption

This bill applies only to homeowners in the Paulding County school district. It creates a homestead exemption from school district property taxes (not county, state, city, or bond taxes) equal to the difference between a home's current assessed value and an 'adjusted base year assessed value.' That base value grows each year only by an inflation rate set using a state-approved index, plus the value of any major additions or improvements, effectively capping how fast a homeowner's taxable value for school purposes can rise. Homeowners who already have a similar homestead exemption for the 2026 tax year are automatically enrolled without reapplying; others must apply through the Paulding County tax commissioner. The exemption cannot be combined with another base-year exemption for the same taxes; the more beneficial one applies. Because it involves a local tax exemption, the Georgia Constitution requires two-thirds approval in both legislative chambers, and Paulding County voters must approve it in a referendum during the 2026 general primary before it takes effect on January 1, 2027.

• Creates a floating homestead exemption from Paulding County school district property taxes based on the gap between a home's current value and its capped 'adjusted base year' value.
• Limits annual growth in the adjusted base year value to an inflation rate determined by the Paulding County tax commissioner using a state-approved index such as the Consumer Price Index.
• Automatically enrolls homeowners who already held a similar exemption in 2026 and remain eligible in 2027, without requiring a new application.
• Excludes bond-related school taxes, county taxes, state taxes, independent school district taxes, and municipal taxes from the exemption.
• Requires the exemption to be decided by Paulding County voters in a referendum during the 2026 general primary before taking effect.
• Repeals the entire Act automatically 365 days after the election if voters reject it or the election is not held.

Homeowners with a homestead in the Paulding County school district, the Paulding County tax commissioner's office, which must calculate inflation rates and process applications, and the county election superintendent, who must organize the 2026 referendum on the measure.

If approved by voters, eligible Paulding County homeowners could see their school district property tax bills grow more slowly, since increases in taxable value would be capped by inflation rather than rising with full market value, potentially saving money as home values increase.

• Section 1 defines key terms including 'adjusted base year assessed value,' which limits annual increases to the prior year's inflation rate plus the value of substantial property changes.
• Section 1(c) allows homeowners who held a similar exemption in 2026 to be automatically enrolled in 2027 without a new application, though others must apply through the tax commissioner.
• Section 1(e) states the exemption does not apply to bond-related school taxes, county, state, independent school district, or municipal taxes, and cannot be stacked with another base-year exemption for the same purpose.
• Section 1(g) sets the exemption to apply to taxable years beginning on or after January 1, 2027.
• Section 2 requires a two-thirds majority vote in both the Georgia House and Senate for the Act to become law, per the state constitution.
• Section 3 requires a Paulding County referendum during the 2026 general primary; if voters reject it or no election occurs, the Act is automatically repealed 365 days after the election date.
• Section 4 makes the rest of the Act effective upon the Governor's signature or it becoming law without signature.

1. 2025-04-02House Withdrawn, Recommitted (House)
2. 2025-04-02House Committee Favorably Reported (House)
3. 2025-03-31House Second Readers (House)
4. 2025-03-28House First Readers (House)
5. 2025-03-27Senate Passed/Adopted (Senate)
6. 2025-03-27Senate Committee Favorably Reported (Senate)
7. 2025-03-25Senate Read and Referred (Senate)
8. 2025-03-21Senate Hopper (Senate)

• Jason Anavitarte (R, SD-31)Primary sponsor
• Timothy Bearden (R, SD-30)
• Tyler Paul Smith (R, HD-18)

1. PassedSenate voteMarch 27, 2025

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

   LOCAL CONSENT CALENDAR: Senate Vote #291

• property taxes
• homestead exemption
• Paulding County
• school district taxes
• local referendum