HB 782: Chatham County Schools' Tax Relief Act; enact

Currently, homeowners in the Chatham County school district pay school property taxes based on their home's current assessed value, which typically rises over time. This bill would let homeowners exclude from school taxation any increase in their home's assessed value above what it was the year before they first got the exemption (the 'base year'). The exemption would not cover new improvements or added land, and would be adjusted downward if part of the property is removed. Homeowners would apply once with the Chatham County tax commissioner, and the exemption would renew automatically as long as they keep living there; a surviving spouse can keep it too. It would not affect state, county, municipal, or independent school district taxes, and stacks on top of other homestead exemptions. Because it changes tax law, it needs a two-thirds vote in the General Assembly and voter approval in a November 2025 referendum. If approved, it starts January 1, 2026; if rejected, the Act repeals itself.

• Creates a homestead exemption from Chatham County school district taxes equal to the growth in a home's assessed value since the base year (the year before the exemption was first granted).
• Excludes the exemption from applying to new improvements or added land, and requires the base year value to be adjusted if property is removed from the homestead.
• Requires a one-time application with the Chatham County tax commissioner, after which the exemption renews automatically each year without refiling.
• Extends the exemption to a surviving spouse who continues to live in the home.
• Limits the exemption to Chatham County school taxes only, leaving state, county, municipal, and independent school district taxes unaffected.
• Requires voter approval in a November 2025 referendum and a two-thirds legislative vote, with automatic repeal if the referendum fails.

Homeowners who live in the Chatham County school district and claim their home as a homestead, the Chatham County tax commissioner's office, which processes applications, and the Chatham County election superintendent, who must run the November 2025 referendum.

If voters approve it, homeowners in the Chatham County school district would see their school tax bills grow more slowly, since increases in their home's assessed value above the base year would not be taxed for school purposes, while other local and state taxes stay the same.

• Section 2 defines 'base year' as the year before a homeowner first gets the exemption, and limits the homestead definition to include up to five contiguous acres.
• Section 2(b) grants the exemption equal to the difference between the current year's assessed value and the base year's assessed value, excluding new improvements or added land.
• Section 2(c) and (d) require a one-time application with the Chatham County tax commissioner and provide for automatic annual renewal and survivor continuation.
• Section 2(e) clarifies the exemption applies only to Chatham County school district taxes, not state, county, municipal, or independent school district taxes.
• Section 2(f) sets the exemption to apply to taxable years beginning on or after January 1, 2026.
• Section 3 requires a two-thirds majority vote in both the House and Senate for the Act to become law.
• Section 4 requires a November 2025 referendum in the Chatham County school district, with automatic repeal 365 days after the election if voters reject it or if the election is not properly held.
• Section 5 sets the effective date as upon the Governor's approval, except for the referendum provisions in Section 4.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 105
3. 2025-05-09House Date Signed by Governor (Cámara de Representantes)
4. 2025-04-07House Sent to Governor (Cámara de Representantes)
5. 2025-03-28Senate Passed/Adopted (Senado)
6. 2025-03-28Senate Committee Favorably Reported (Senado)
7. 2025-03-27Senate Read and Referred (Senado)
8. 2025-03-25House Passed/Adopted (Cámara de Representantes)

• Ron Stephens (R, HD-164)Patrocinador principal
• Jesse Petrea (R, HD-166)
• Carl Gilliard (D, HD-162)
• Bill Hitchens (R, HD-161)

1. AprobadaVotación: Cámara de Representantes25 de marzo de 2025

   170 a favor, 0 en contra (6 sin votar, 4 ausentes)

   Local Calendar : House Vote #302

2. AprobadaVotación: Senado28 de marzo de 2025

   53 a favor, 0 en contra (1 sin votar, 2 ausentes)

   Local Consent Calendar: Senate Vote #313

• property taxes
• homestead exemption
• Chatham County schools
• school taxes
• local referendum