Chickamauga, City of; ad valorem tax; educational purposes; provide homestead exemption
Summary
HB697 creates a local homestead property tax exemption for residents of the City of Chickamauga independent school district, limited to ad valorem taxes levied for educational purposes. The bill gives homeowners age 70 through 74 an exemption equal to $50,000 of assessed value, and homeowners age 75 or older an exemption equal to the full assessed value of the homestead. The exemption also extends to certain unremarried surviving spouses who meet the age and occupancy requirements.
The bill defines the covered homestead, sets out an application process with the city or its designee, provides for automatic annual renewal once approved, and requires taxpayers to notify the city if they become ineligible. It applies only to school-district educational taxes and does not affect state, county, municipal, or county school district taxes. If approved, the exemption would apply beginning with taxable years on or after January 1, 2026, and the act is contingent on local voter approval in a referendum.
Impact
HB697 would amend the tax treatment of homesteads within the City of Chickamauga independent school district by reducing or eliminating school-district ad valorem taxes for qualifying senior homeowners. It creates a new local exemption that operates in lieu of other homestead exemptions for those school taxes, while leaving all other property tax levies unchanged. Because the bill is a local constitutional tax measure, it requires a two-thirds vote in both chambers and approval by the district’s voters before taking effect.
Sentiment
The available voting history shows strong, unanimous support: the House passed the bill 165-0 and the Senate passed it 52-0. That pattern suggests broad bipartisan approval and little visible opposition in the legislative process. No committee transcript is available, but the votes indicate the measure was viewed favorably as a targeted local tax relief proposal for senior homeowners.
Contention
There is little evidence of substantive contention in the available record. The main policy choice is the scope of the exemption: a partial exemption for residents ages 70 to 74 and a full exemption for residents 75 and older, both limited to school-district educational taxes. Any potential concerns would likely center on reduced revenue for the Chickamauga school district, the age-based structure of the benefit, and the need for local referendum approval, but no recorded debate or dissent appears in the provided materials.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that certain taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.