HB 833: Cherokee County; school district ad valorem tax; provide homestead exemption

Currently, Cherokee County homeowners' school district property taxes are based on the full current assessed value of their home each year. This bill would create a homestead exemption that limits how much a home's taxable value for school taxes can grow year to year, tying it to an inflation-adjusted 'base year' value rather than the full market assessment. The exemption amount equals the difference between the current year's assessed value and this adjusted base year value. The bill sets rules for how the base year value is calculated, how it carries forward, and what happens when a home is improved or sold. Homeowners must apply through the Cherokee County tax commissioner, though those who had a 2025 homestead exemption are automatically enrolled. The exemption does not apply to state, county, independent school district, or municipal taxes. Because this changes property tax law, it requires a two-thirds vote in the General Assembly and voter approval in a November 2025 referendum before taking effect January 1, 2026.

• Creates a homestead exemption from Cherokee County school district ad valorem (property) taxes equal to the growth in a home's assessed value above an inflation-adjusted base year value.
• Directs the Cherokee County tax commissioner to set an annual inflation rate, which can be based on the federal Consumer Price Index, to adjust the base year value each year.
• Automatically enrolls homeowners who already had a 2025 homestead exemption without requiring a new application, while others must apply.
• Excludes the exemption from applying to state, county, independent school district, or municipal property taxes, limiting its effect to Cherokee County school taxes only.
• Prevents the exemption from stacking with other base year value homestead exemptions for the school district, applying whichever is more beneficial to the taxpayer.
• Requires a November 2025 referendum of Cherokee County school district voters and a two-thirds vote in the General Assembly before the exemption can take effect.

Homeowners within the Cherokee County school district who claim a homestead exemption, the Cherokee County tax commissioner's office, which must administer applications and calculate inflation rates, and the Cherokee County election superintendent, who must run the November 2025 referendum.

If approved by voters, homeowners in Cherokee County could see their school district property tax bills grow more slowly, since taxable value increases would be capped by an inflation-linked formula instead of tracking full market value increases each year.

• Section 1 defines key terms like 'base year assessed value,' 'adjusted base year assessed value,' and 'inflation rate' used to calculate the exemption.
• Section 1(b) grants the exemption equal to the difference between current assessed value and the adjusted base year assessed value, and specifies it does not transfer to new owners except surviving spouses.
• Section 1(c) and (d) set application procedures, including automatic enrollment for those with a 2025 homestead exemption and automatic renewal in later years.
• Section 1(e) limits the exemption to Cherokee County school district taxes only and bars stacking with other base year value exemptions.
• Section 1(g) sets the exemption to apply starting with taxable years beginning on or after January 1, 2026.
• Section 2 requires a two-thirds majority vote in both chambers of the General Assembly for the Act to become law.
• Section 3 requires a November 2025 referendum in the Cherokee County school district, with automatic repeal 365 days after the election if voters reject it or no election is held.

1. 2025-03-27House Second Readers (Cámara de Representantes)
2. 2025-03-25House First Readers (Cámara de Representantes)
3. 2025-03-25House Hopper (Cámara de Representantes)

• Jordan Ridley (R, HD-022)Patrocinador principal
• Brad Thomas (R, HD-021)
• Mitchell Scoggins (R, HD-014)
• Charlice Byrd (R, HD-020)
• Mandi Ballinger (R, HD-023)
• Jan Jones (R, HD-047)

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