SB 4: Baldwin County; ad valorem taxes; homestead property determined annually for the special district based upon the proceeds of a new Local Homestead Option Sales Tax (LHOST); provide homestead exemption

This bill applies only to Baldwin County. It would create a homestead exemption from county property taxes (ad valorem taxes) for people who own and live in their homes within the county. The amount of the exemption would be recalculated every year based on how much money a new Local Homestead Option Sales Tax (LHOST) brings in within the county. Homeowners already receiving another homestead exemption and remaining eligible would not need to reapply. The exemption would stack on top of, not replace, any other homestead exemption a homeowner already has. Voters must approve the plan in a November 2026 referendum; if approved, the tax break would start January 1, 2027 and run through the end of 2039, while the sales tax itself would run from 2028 through 2037. If voters reject it, the bill would automatically repeal itself.

• Creates a homestead exemption from Baldwin County property taxes equal to the assessed value covered by new sales tax revenue collected each year.
• Ties the size of the exemption to the annual net proceeds of a new 1 percent Local Homestead Option Sales Tax (LHOST) collected in the county.
• Lets homeowners who already qualify for another homestead exemption skip a new application if they remain eligible.
• Requires the exemption to renew automatically each year unless the homeowner becomes ineligible and must notify the tax office.
• Schedules a countywide referendum for November 2026 and repeals the whole Act automatically if voters reject it or the election isn't held.
• Sets the exemption to run from January 1, 2027 through December 31, 2039, while the sales tax runs from 2028 through 2037.

Homeowners in Baldwin County who claim their property as a homestead, the Baldwin County tax office that processes exemption applications, county election officials who must run the November 2026 referendum, and county government, which will collect a new local sales tax instead of some property tax revenue.

If voters approve it, eligible Baldwin County homeowners would see part of their property tax bill offset by new sales tax revenue, while everyone who shops in the county, including nonresidents, would pay a bit more sales tax. If voters reject it, nothing changes and the law disappears.

• Section 1 defines key terms and grants the homestead exemption, with its dollar value recalculated annually from LHOST sales tax revenue collected in the district.
• Section 1(c)-(d) sets application and renewal rules, including automatic renewal and a duty to report when a homeowner becomes ineligible.
• Section 1(e) clarifies the exemption applies only to county-level taxes, only within the special district, and stacks with other homestead exemptions, running through December 31, 2039.
• Section 1(f) sets the LHOST sales tax period from January 1, 2028 to December 31, 2037.
• Section 3 requires a two-thirds vote in both the Senate and House because the bill affects the state constitution's tax provisions.
• Section 4 schedules a Baldwin County referendum for November 2026, specifies the ballot language, and makes the election mandatory, enforceable by a court order if officials fail to hold it.
• Section 4(b) provides that if voters reject the measure or no election is held, the entire Act is automatically repealed 365 days after the election date.

1. 2026-06-20Senate Reconsidered Lost (Senate)
2. 2026-06-20Senate Reconsidered (Senate)
3. 2026-06-20Senate Local Lost (Senate)
4. 2026-06-20Senate Committee Favorably Reported (Senate)
5. 2026-06-17Senate Read and Referred (Senate)
6. 2026-06-17Senate Hopper (Senate)

• Ricky Williams (R, SD-025)Primary sponsor

1. PassedSenate voteJune 20, 2026

   33 yea, 18 nay (4 not voting, 0 absent)

   Local Consent Calendar: Senate Vote #8

2. PassedSenate voteJune 20, 2026

   33 yea, 19 nay (0 not voting, 3 absent)

   Motion To Reconsider Local Consent Calendar: Senate Vote #15

3. PassedSenate voteJune 20, 2026

   33 yea, 15 nay (2 not voting, 5 absent)

   Passage: Senate Vote #18

• property taxes
• homestead exemption
• Baldwin County
• local sales tax
• county referendum