Bill would tie Cadwell home tax breaks to sales taxes

Cadwell would reduce the home value used to calculate eligible residents’ city property taxes, based on sales tax revenue collected each year. The exemption would cover eligible residents’ homes within Laurens County. It would reduce only property taxes charged by Cadwell. The exempt amount would depend on net revenue from the Local Homestead Option Sales Tax. Home value above the exempt amount would remain taxable. The exemption would add to other home tax exemptions. Section 1 would take effect January 1, 2027, following approval in the required election. The exemption would end December 31, 2039.

Homeowners or their agents would generally apply to the local tax official using forms the official would provide. These rules would cover people seeking or receiving the proposed home tax exemption. No application would be needed if the homeowner received another Cadwell home tax exemption the previous tax year and remained eligible for it on the same home. Recipients would have to tell the tax official when they became ineligible. Once granted, the exemption would renew each year without another application while eligibility continued.

Cadwell’s election official would hold a city vote on the proposed exemption. Cadwell voters living within Laurens County would decide whether to approve the exemption tied to a proposed 1 percent sales tax. The proposal would need a two-thirds vote in each legislative chamber to become law. More than half of votes cast would have to favor approval. Cadwell would pay for the election. If the election official failed to comply, an eligible city voter could ask a court to order the required election. The vote would be scheduled for November 3, 2026. Rejection or failure to conduct the required election would trigger automatic repeal 365 calendar days after that date.