Fayette County; school district ad valorem tax; provide homestead exemption

School tax relief for Fayette homeowners

The law creates a Fayette County school property tax exemption, subject to majority voter approval on November 3, 2026. With approval, it starts January 1, 2027; without approval or the required election, the exemption section repeals 365 days after the election date. You must live in the school district, occupy the home as your homestead, and apply with the county tax commissioner. Your application renews automatically while you qualify, and you must report when your eligibility ends. The next year's exemption is zero unless school tax collections exceed twice the 2025 total. Collections above that threshold are set aside to fund the next year's exemption, with interest also available. The school board and tax commissioner calculate an equal-dollar exemption for qualifying homes; the board chooses the amount within available funds. Unused set-aside money goes into the school district's general fund. This break adds to existing school homestead exemptions and covers school taxes, including taxes for bond payments—not other jurisdictions' taxes. Fayette County pays the election costs.