SB 407: Homestead Exemption; Cherokee County school district ad valorem taxes for educational purposes; provide

Right now, homeowners in the Cherokee County school district pay school property taxes based on their home's full current assessed value. This bill would create a homestead exemption that shields part of that value from school taxes: specifically, the amount by which a home's current assessed value exceeds an adjusted 'base year' value, which can only rise by up to 4 percent a year. The base year is generally the year before someone first gets the exemption. The exemption covers the primary home and up to five acres around it, continues automatically for a surviving spouse who keeps living there, and does not apply to state, municipal, or county taxes, only Cherokee County school district taxes. The exemption would run from January 1, 2027 through the 2031 tax year. It only takes effect if Cherokee County voters approve it in a November 2026 referendum and if the General Assembly itself approved the measure by a two thirds vote. If voters reject it or the election is not held, the whole law repeals itself a year after the election date.

• Creates a homestead exemption from Cherokee County school district property taxes for the amount a home's assessed value grows above an adjusted base year value.
• Caps annual growth in the base year assessed value used for the exemption at no more than 4 percent per year.
• Limits the exemption to a homeowner's primary residence plus up to five contiguous acres, and lets a surviving spouse keep the exemption while living there.
• Requires homeowners to apply once with the Cherokee County tax commissioner, after which the exemption renews automatically each year.
• Sets the exemption to run from January 1, 2027 through December 31, 2031, contingent on voter approval in a November 2026 referendum.
• Automatically repeals the entire Act if voters reject it or if the required election is not held as specified.

Homeowners with a homestead inside the Cherokee County school district, the surviving spouses of those homeowners, the Cherokee County tax commissioner's office, which must process applications, and the Cherokee County election superintendent, who must run the referendum.

If voters approve it, eligible homeowners in the Cherokee County school district would see their school property tax bills grow more slowly for several years, since increases in taxable value above the capped base year figure would not be taxed. The measure only lasts through 2031 and needs voter approval to take effect at all.

• Section 1 defines 'ad valorem taxes for educational purposes' to mean Cherokee County school district taxes, excluding bonded debt payments, and defines 'base year' with a 4 percent annual cap on assessed value growth.
• Section 1(b) grants the exemption equal to the gap between current assessed value and the adjusted base year value, including adjustments for added improvements or removed property.
• Section 1(c) lets a surviving spouse keep the exemption as long as they continue to live in the home.
• Section 1(d)-(e) requires a one-time application with the Cherokee County tax commissioner, with automatic annual renewal, and requires owners to report if they become ineligible.
• Section 1(f) clarifies the exemption applies only to Cherokee County school district taxes, not state, municipal, or county taxes.
• Section 1(g) limits the exemption to tax years from January 1, 2027 through December 31, 2031.
• Section 2 requires a two thirds vote in both the Senate and House for the Act to become law, per the Georgia Constitution.
• Section 3 requires a Cherokee County referendum in November 2026, and automatically repeals the Act 365 days after the election if voters reject it or no election occurs.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 698
3. 2026-05-12Senate Date Signed by Governor (Senate)
4. 2026-04-10Senate Sent to Governor (Senate)
5. 2026-02-17House Passed/Adopted (House)
6. 2026-02-17House Third Readers (House)
7. 2026-02-17House Committee Favorably Reported (House)
8. 2026-01-29House Second Readers (House)

• Jason T. Dickerson (R, SD-021)Primary sponsor
• John Albers (R, SD-056)
• Kay Kirkpatrick (R, SD-032)

1. PassedSenate voteJanuary 27, 2026

   46 yea, 0 nay (5 not voting, 3 absent)

   Local Consent Calendar: Senate Vote #501

2. PassedHouse voteFebruary 17, 2026

   163 yea, 1 nay (7 not voting, 4 absent)

   Local Calendar : House Vote #513

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