SB407: SB407 Homestead Exemption; Cherokee County school district ad valorem taxes for educational purposes; provide

Right now, as home values rise in Cherokee County, the taxable value used to calculate school property taxes can rise along with them. This bill would create a homestead exemption for Cherokee County school district property taxes that limits how much of that rising value gets taxed. Each year, the taxable base value of a homestead could grow by no more than 4 percent, and the exemption covers the difference between the home's current assessed value and that capped base value. The exemption applies only to school taxes for educational purposes, not to state, municipal, or county general taxes, and it stacks on top of any other homestead exemptions a homeowner already has. It would run from January 1, 2027 through the 2031 tax year. Because it changes local tax policy, the Georgia Constitution requires voter approval: Cherokee County school district residents will vote on it in a November 2026 referendum. If voters reject it or no valid election happens, the exemption never takes effect and the law repeals itself about a year later.

• Creates a new homestead exemption from Cherokee County school district property taxes equal to the growth in a home's assessed value above a capped base year value.
• Limits annual increases in the base year assessed value used for this exemption to no more than 4 percent, even if the home's market value rises faster.
• Lets a surviving spouse keep receiving the exemption as long as they continue living in the home as their primary residence.
• Requires homeowners to apply once with the Cherokee County tax commissioner, after which the exemption renews automatically each year without reapplying.
• Sends the measure to Cherokee County school district voters in a November 2026 referendum before it can take effect.
• Automatically repeals itself if voters reject the measure or if the required election is not properly held.

Homeowners within the Cherokee County school district who claim their home as a primary residence, surviving spouses of those homeowners, the Cherokee County tax commissioner's office, which processes applications, and the Cherokee County election superintendent, who must run the required referendum.

For eligible Cherokee County homeowners, this would slow how quickly their school property tax bill can grow even as home values climb, since the taxable base is capped at 4 percent annual growth. It would not reduce state, county, or municipal taxes, only the school district's educational tax portion.

• Section 1 defines 'ad valorem taxes for educational purposes' as school taxes excluding bond debt payments, and defines 'homestead' by referencing O.C.G.A. § 48-5-40 limited to five contiguous acres.
• Section 1(b) grants the exemption equal to the gap between current assessed value and the adjusted base year value, applying also to added improvements or land using their own base year.
• Section 1(c) extends the exemption to a surviving spouse who continues occupying the home as their homestead.
• Section 1(d) and (e) require a one-time application with the Cherokee County tax commissioner, with automatic annual renewal and a duty to report if the owner becomes ineligible.
• Section 1(f) clarifies the exemption applies only to school district educational taxes, not state, municipal, or county general taxes, and stacks with other homestead exemptions.
• Section 1(g) sets the exemption period from January 1, 2027 through the tax year ending December 31, 2031.
• Section 2 requires a two-thirds vote in both the Senate and House under the Georgia Constitution's Article VII, Section II before the Act can become law.
• Section 3 orders a Cherokee County school district referendum on the Tuesday after the first Monday in November 2026, with automatic repeal 365 days later if voters reject it or the election is not properly held.

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 schools
• school funding
• local referendum