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Senate Bill 234
By: Senator Payne of the 54th
AS PASSED SENATE
A BILL TO BE ENTITLED
AN ACT
To provide a homestead exemption from City of Dalton independent school district ad
1
valorem taxes for educational purposes in an amount equal to the amount by which the2
current year assessed value of a homestead exceeds the adjusted base year assessed value of3
such homestead; to provide for definitions; to specify the terms and conditions of the4
exemption and the procedures relating thereto; to provide for applicability; to provide for5
compliance with constitutional requirements; to provide for a referendum, effective dates,6
automatic repeal, mandatory execution of election, and judicial remedies regarding failure7
to comply; to provide for related matters; to repeal conflicting laws; and for other purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
(a) As used in this Act, the term:11
(1) "Ad valorem taxes" means all ad valorem taxes levied by, for, or on behalf of the12
City of Dalton independent school district in this state, except for any ad valorem taxes13
levied to pay interest on and to retire bonded indebtedness.14
(2) "Adjusted base year assessed value" means the sum of:15
(A) The previous adjusted base year assessed value;16
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(B) An amount equal to the difference between the current year assessed value of the
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homestead and the base year assessed value of the homestead, provided that such18
amount shall not exceed the total of the previous adjusted base year assessed value of19
the homestead multiplied by the inflation rate for the prior year; and20
(C) The value of any substantial property change, provided that no such value added21
improvements to the homestead shall be duplicated as to the same addition or22
improvement.23
(3) "Base year assessed value" means:24
(A) With respect to an exemption under this section which is first granted to a person25
on such person's homestead for the 2026 taxable year, the assessed value for taxable26
year 2024, including any final determination of value on appeal pursuant to Code27
Section 48-5-311, of the homestead; or28
(B) In all other cases, the assessed value, including any final determination of value on29
appeal pursuant to Code Section 48-5-311, of the homestead from the taxable year30
immediately preceding the taxable year in which the exemption under this section is31
first granted to the applicant.32
(4) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of33
the O.C.G.A., as amended, with the additional qualification that it shall include not more34
than five contiguous acres of homestead property.35
(5) "Inflation rate" means the annual inflationary index rate as determined for a given36
year by the governing authority of the City of Dalton in accordance with subsection (f)37
of this section.38
(6) "Previous adjusted base year assessed value" means:39
(A) With respect to the year for which the exemption under this section is first granted40
to a person on such person's homestead, the base year assessed value; or41
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(B) In all other cases, the adjusted base year assessed value of the homestead as
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calculated in the taxable year immediately preceding the current year, including any43
final determination of value on appeal pursuant to Code Section 48-5-311.44
(7) "Substantial property change" means any increase or decrease in the assessed value45
of a homestead derived from additions or improvements to, or the removal of real46
property from, the homestead which occurred after the year in which the base year47
assessed value is determined for the homestead. The assessed value of the substantial48
property changes shall be established following any final determination of value on49
appeal pursuant to Code Section 48-5-311.50
(b)(1) Subject to the limitations provided in this section, each resident of the City of51
Dalton independent school district is granted an exemption on that person's homestead52
from ad valorem taxes in an amount equal to the amount by which the current year53
assessed value of that homestead, including any final determination of value on appeal54
pursuant to Code Section 48-5-311, exceeds its previous adjusted base year assessed55
value.56
(2) Except as provided for in subsection (c) of this section, no exemption provided for57
in this subsection shall transfer to any subsequent owner of the property, and the assessed58
value of the property shall be as provided by law.59
(c) No person shall receive the exemption granted by subsection (b) of this section unless60
such person or person's agent files an application with the governing authority of the City of61
Dalton as will enable the governing authority to make a determination regarding the initial62
and continuing eligibility of such person for such exemption; provided, however, that any63
person who had previously applied for a homestead exemption, was allowed such homestead64
exemption for the 2025 tax year, and remains eligible for a homestead exemption for that65
same homestead property in the 2026 tax year shall be automatically allowed the exemption66
granted under subsection (b) of this section for that homestead without further application. 67
The governing authority shall provide application forms for this purpose.68
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(d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of
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the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year70
so long as the person granted the homestead exemption under subsection (b) of this section71
occupies the residence as a homestead. After such person has filed the proper application as72
provided in subsection (c) of this section, it shall not be necessary to make application73
thereafter for any year, and such exemption shall continue to be allowed to such person. It74
shall be the duty of any such person granted the homestead exemption under subsection (b)75
of this section to notify the governing authority of the City of Dalton in the event that such76
person for any reason becomes ineligible for such exemption.77
(e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect78
any state ad valorem taxes, county ad valorem taxes for county purposes, county school79
district ad valorem taxes for educational purposes, or municipal ad valorem taxes for80
municipal purposes.81
(2) Except as otherwise provided in paragraph (3) of this subsection, the homestead82
exemption granted by subsection (b) of this section shall be in addition to and not in lieu83
of any other homestead exemption applicable to ad valorem taxes.84
(3) The homestead exemption granted by subsection (b) of this section shall not be85
applied in addition to any other base year value homestead exemption provided by law86
with respect to the City of Dalton independent school district. In any such event, the87
governing authority of the City of Dalton shall apply only the base year value homestead88
exemption that is larger or more beneficial for the taxpayer with respect to the City of89
Dalton independent school district.90
(f) For the purposes of this section, the governing authority of the City of Dalton shall91
promulgate a standardized method for determining annual inflationary index rates which92
reflect the effects of inflation and deflation on the cost of living for residents of the City of93
Dalton independent school district for a given calendar year. Such method may utilize the94
Consumer Price Index as reported by the Bureau of Labor Statistics of the United States95
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Department of Labor or any other similar index established by the federal government if the
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governing authority of the City of Dalton determines that such federal index fairly reflects97
the effects of inflation and deflation on residents of the City of Dalton independent school98
district.99
(g) The exemption granted by subsection (b) of this section shall apply to all taxable years100
beginning on or after January 1, 2026.101
SECTION 2.102
In accordance with the requirements of Article VII, Section II of the Constitution of the State103
of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority104
vote in both the Senate and the House of Representatives.105
SECTION 3.106
The election superintendent of Whitfield County shall call and conduct an election as107
provided in this section for the purpose of submitting this Act to the electors of the City of108
Dalton independent school district for approval or rejection. The election superintendent109
shall conduct that election on the Tuesday following the first Monday in November of 2025110
and shall issue the call and conduct that election as provided by general law. The election111
superintendent shall cause the date and purpose of the election to be published once a week112
for two weeks immediately preceding the date thereof in the official organ of Whitfield113
County. The ballot shall have written or printed thereon the words:114
"( ) YES115
116
( ) NO117
118
119
120
Shall the Act be approved which provides a homestead exemption from City
of Dalton independent school district ad valorem taxes for educational
purposes in an amount equal to the amount by which the current year
assessed value of a homestead exceeds the adjusted base year assessed
value, including any final determination of value on appeal pursuant to
Code Section 48-5-311 of the O.C.G.A., as amended, of such homestead?"
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All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring
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to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on122
such question are for approval of the Act, Section 1 of this Act shall become of full force and123
effect on January 1, 2026. If the Act is not so approved or if the election is not conducted124
as provided in this section, Section 1 of this Act shall not become effective, and this Act shall125
be automatically repealed on the 365th calendar day following the election date provided for126
in this section. The expense of such election shall be borne by the City of Dalton127
independent school district. It shall be the election superintendent's duty to certify the result128
thereof to the Secretary of State. The provisions of this section shall be mandatory upon the129
election superintendent and are not intended as directory. If the election superintendent fails130
or refuses to comply with this section, any elector of the City of Dalton independent school131
district may apply for a writ of mandamus to compel the election superintendent to perform132
his or her duties under this section. If the court finds that the election superintendent has not133
complied with this section, the court shall fashion appropriate relief requiring the election134
superintendent to call and conduct such election on the date required by this section or on the135
next date authorized for special elections provided for in Code Section 21-2-540 of the136
O.C.G.A.137
SECTION 4.138
Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon139
its approval by the Governor or upon its becoming law without such approval.140
SECTION 5.141
All laws and parts of laws in conflict with this Act are repealed.142
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