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Senate Bill 355
By: Senators Anavitarte of the 31st and Bearden of the 30th
AS PASSED SENATE
A BILL TO BE ENTITLED
AN ACT
To provide a homestead exemption from Paulding County school district ad valorem taxes
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for educational purposes in an amount equal to the amount by which the current year2
assessed value of a homestead exceeds the adjusted base year assessed value of such3
homestead; to provide for definitions; to specify the terms and conditions of the exemption4
and the procedures relating thereto; to provide for applicability; to provide for compliance5
with constitutional requirements; to provide for a referendum, effective dates, automatic6
repeal, mandatory execution of election, and judicial remedies regarding failure to comply;7
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
Paulding County school district for educational purposes, 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 2027 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 O.C.G.A., 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 O.C.G.A., of the homestead from the30
taxable year immediately preceding the taxable year in which the exemption under this31
section is 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.34
(5) "Inflation rate" means the annual inflationary index rate as determined for a given35
year by the Paulding County tax commissioner in accordance with subsection (f) of this36
section.37
(6) "Previous adjusted base year assessed value" means:38
(A) With respect to the year for which the exemption under this section is first granted39
to a person on such person's homestead, the base year assessed value; or40
(B) In all other cases, the adjusted base year assessed value of the homestead as41
calculated in the taxable year immediately preceding the current year, including any42
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final determination of value on appeal pursuant to Code Section 48-5-311 of the
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O.C.G.A.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 of the O.C.G.A.50
(b)(1) Subject to the limitations provided in this section, each resident of the Paulding51
County school district is granted an exemption on that person's homestead from ad52
valorem taxes in an amount equal to the amount by which the current year assessed value53
of that homestead, including any final determination of value on appeal pursuant to Code54
Section 48-5-311, exceeds its previous adjusted base year assessed value.55
(2) Except as provided for in subsection (c) of this section, no exemption provided for56
in this subsection shall transfer to any subsequent owner of the property, and the assessed57
value of the property shall be as provided by law.58
(c) No person shall receive the exemption granted by subsection (b) of this section unless59
such person or person's agent files an application with the tax commissioner of Paulding60
County as will enable the tax commissioner to make a determination regarding the initial61
and continuing eligibility of such person for such exemption; provided, however, that any62
person who had previously applied for a homestead exemption, was allowed such63
homestead exemption for the 2026 tax year, and remains eligible for a homestead64
exemption for that same homestead property in the 2027 tax year shall be automatically65
allowed the exemption granted under subsection (b) of this section for that homestead66
without further application. The tax commissioner shall provide application forms for this67
purpose.68
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(d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1
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of the O.C.G.A., as amended. The exemption shall be automatically renewed from year70
to year so long as the person granted the homestead exemption under subsection (b) of this71
section occupies the residence as a homestead. After such person has filed the proper72
application as provided in subsection (c) of this section, it shall not be necessary to make73
application thereafter for any year, and such exemption shall continue to be allowed to such74
person. It shall be the duty of any such person granted the homestead exemption under75
subsection (b) of this section to notify the tax commissioner of Paulding County in the76
event that such person for any reason becomes ineligible for such exemption. The77
unremarried surviving spouse of the person who has been granted the exemption provided78
for in subsection (b) of this section shall continue to receive the exemption provided under79
subsection (b) of this section, so long as that unremarried surviving spouse continues to80
occupy the home as a residence and homestead.81
(e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect82
any state ad valorem taxes, county ad valorem taxes for county purposes, independent83
school district ad valorem taxes for educational purposes, or municipal ad valorem taxes84
for municipal purposes.85
(2) Except as otherwise provided in paragraph (3) of this subsection, the homestead86
exemption granted by subsection (b) of this section shall be in addition to and not in lieu87
of any other homestead exemption applicable to ad valorem taxes.88
(3) The homestead exemption granted by subsection (b) of this section shall not be89
applied in addition to any other base year value homestead exemption provided by law90
with respect to the Paulding County school district. In any such event, the Paulding91
County tax commissioner shall apply only the base year value homestead exemption that92
is larger or more beneficial for the taxpayer with respect to the Paulding County school93
district.94
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(f) For the purposes of this section, the Paulding County tax commissioner shall utilize the
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Georgia Department of Revenue's promulgated standardized method for determining96
annual inflationary index rates which reflect the effects of inflation and deflation on the97
cost of living for residents of this state for a given calendar year. Such method may utilize98
the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States99
Department of Labor or any other similar index established by the federal government if100
the Paulding County tax commissioner determines that such federal index fairly reflects the101
effects of inflation and deflation on residents of this state.102
(g) The exemption granted by subsection (b) of this section shall apply to all taxable years103
beginning on or after January 1, 2027.104
SECTION 2.105
In accordance with the requirements of Article VII, Section II of the Constitution of the State106
of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority107
vote in both the Senate and the House of Representatives.108
SECTION 3.109
The election superintendent of Paulding County shall call and conduct an election as110
provided in this section for the purpose of submitting this Act to the electors of the Paulding111
County school district for approval or rejection. The election superintendent shall conduct112
that election on the date of the 2026 general primary and shall issue the call and conduct that113
election as provided by general law. The election superintendent shall cause the date and114
purpose of the election to be published once a week for two weeks immediately preceding115
the date thereof in the official organ of Paulding County. The ballot shall have written or116
printed thereon the words:117
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"( ) YES
118
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( ) NO120
121
122
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Shall the Act be approved which provides a homestead exemption from
Paulding County 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?"
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 on125
such question are for approval of the Act, Section 1 of this Act shall become of full force and126
effect on January 1, 2027. If the Act is not so approved or if the election is not conducted127
as provided in this section, Section 1 of this Act shall not become effective, and this Act shall128
be automatically repealed on the 365th calendar day following the election date provided for129
in this section. The expense of such election shall be borne by Paulding County. It shall be130
the election superintendent's duty to certify the result thereof to the Secretary of State. The131
provisions of this section shall be mandatory upon the election superintendent and are not132
intended as directory. If the election superintendent fails or refuses to comply with this133
section, any elector of the Paulding County school district may apply for a writ of mandamus134
to compel the election superintendent to perform his or her duties under this section. If the135
court finds that the election superintendent has not complied with this section, the court shall136
fashion appropriate relief requiring the election superintendent to call and conduct such137
election on the date required by this section or on the next date authorized for special138
elections provided for in Code Section 21-2-540 of the O.C.G.A.139
SECTION 4.140
Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon141
its approval by the Governor or upon its becoming law without such approval.142
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SECTION 5.
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All laws and parts of laws in conflict with this Act are repealed.144
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