SB33: SB33 "Georgia Hemp Farming Act"; total THC concentration of consumable hemp products; provide limits

26 SB 33/AP Senate Bill 33 By: Senators Kirkpatrick of the 32nd, Watson of the 1st, Cowsert of the 46th, Watson of the 11th, Parent of the 44th and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend Titles 20, 21, 36, and 48 of the Official Code of Geor gia Annotated, relating to1 education, elections, local government, and revenue and taxatio n, respectively, so as to2 provide for property tax reform; to provide for distribution and use of special district option3 sales and use tax proceeds (FLOST); to establish a Local Homest ead Option Sales Tax4 (LHOST); to provide for imposition, collection, and distribution of proceeds; to provide for5 definitions; to exclude amounts attributable to certain exemptions from ad valorem taxation6 from the equalized adjusted school property tax digest for the purpose of calculating the local7 five mill share and equalization grants; to increase the cap on reserve funds for local school8 systems; to limit the dates of a special election presenting a question by a local government9 to increase revenues; to make the state-wide base year homestead exemption mandatory for10 all political subdivisions; to revise definitions, limits, and procedures related to the state-wide11 base year homestead exemption; to require municipal and school officials to submit certain12 information relating to ad valorem taxes; to prohibit the retroactive assessment of additional13 ad valorem taxes to a taxpayer due to an improperly or mistaken ly applied homestead14 exemption at no fault of the taxpayer; to make conforming changes; to provide for related15 matters; to provide for short titles; to provide an effective d ate; to repeal conflicting laws;16 and for other purposes.17 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:18 S. B. 33 - 1 - 26 SB 33/AP PART I19 SECTION 1-1.20 This Act shall be known and may be cited as the "Homeownership Opportunity and Market21 Equalization Act of 2026."22 PART II23 SECTION 2-1.24 Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use tax,25 is amended in Code Section 48-8-6, relating to prohibition of p olitical subdivisions from26 imposing various taxes, ceiling on local sales and use taxes, a nd taxation of mobile27 telecommunications, by revising subparagraph (a)(1)(C) as follows:28 "(C) Up to 1 percent in aggregate of any sales and use taxes au thorized under Code29 Section 48-8-96, Code Section 48-8-97, Article 2B of this chapt er, Article 2C of this30 chapter, Part 3 of Article 3 of this chapter, and Article 4 of this chapter."31 SECTION 2-2.32 Said chapter is further amended by revising subsection (a) of C ode Section 48-8-109.42,33 relating to use of tax proceeds, property tax relief requiremen ts, and noncompliance, as34 follows:35 "(a) Any proceeds received by a political subdivision from the tax authorized by this article36 shall be used by such political subdivision exclusively for tax relief and in conjunction with37 all limitations provided in the intergovernmental agreement aut horizing the tax for such38 political subdivision as follows:39 (1) With respect to the proceeds of the tax received by a poli tical subdivision prior to40 July 1 of a given calendar year in which the tax is imposed und er this article for such41 S. B. 33 - 2 - 26 SB 33/AP political subdivision, the governing authority of such politica l subdivision shall apply42 such proceeds to reduce ad valorem property taxes for such year; and43 (2) With respect to the proceeds of the tax received by a political subdivision on or after44 July 1 of a given calendar year in which the tax is imposed und er this article for such45 political subdivision, the governing authority of such politica l subdivision shall apply46 such proceeds to reduce ad valorem property taxes for the subsequent year."47 SECTION 2-3.48 Said chapter is further amended by adding a new article to read as follows:49 "ARTICLE 2C50 48-8-109.50.51 (a) This article shall be known and may be cited as the 'Local Homestead Option Sales52 Tax' (LHOST).53 (b) As used in this article, the term:54 (1) 'Eligible local government' means any county, consolidated government, or55 municipality for which a homestead exemption is in effect by lo cal Act in accordance56 with Code Section 48-8-109.52 and whose governing authority lev ied and derived57 revenue from an ad valorem tax on homestead property within the special district at a net58 millage rate of greater than zero in the tax year preceding the effective date of such local59 Act. Such term excludes any local government that levies the t ax authorized under60 Article 4 of this chapter.61 (2) 'Homestead property' means homestead as defined and qualif ied in Code62 Section 48-5-40, with the additional limitation that such term shall include:63 (A) Only the primary residence and not more than five contiguo us acres of land64 immediately surrounding such residence; or65 S. B. 33 - 3 - 26 SB 33/AP (B) If the property is assessed pursuant to Code Section 48-5-7.4 or 48-5-7.7, only the66 primary residence and the portion of the underlying property that is excluded from the67 benefit of such assessment pursuant to subparagraph (a)(1)(B) of Code Section 48-5-7.468 or subparagraph (b)(2)(B) of Code Section 48-5-7.7.69 (3) 'Local Homestead Option Sales Tax' or 'LHOST' means any special sales and use tax70 levied under this article to fund homestead exemptions granted by local Act for eligible71 local governments in accordance with this article.72 48-8-109.51.73 (a) Pursuant to the authority granted by Article IX, Section I I, Paragraph VI of the74 Constitution of this state, there are created within this state 159 special districts. The75 geographical boundary of each county shall correspond with and shall be conterminous76 with the geographical boundary of one of the 159 special districts.77 (b) The territory of each special district shall include all of the territory within the county,78 including all municipalities, to the extent the municipal bound aries lie within the79 geographical boundaries of the county.80 (c) The territory of each special district shall exclude any t erritory within which the tax81 provided for in Article 4 of this chapter is levied.82 48-8-109.52.83 (a) Subject to the requirements of this article and the sales tax rate limitations imposed by84 Code Section 48-8-6, beginning January 1, 2028, there shall be imposed within any special85 district a special sales and use tax to be levied and collected to fund homestead exemptions86 from ad valorem taxes imposed by eligible local governments on homestead property87 within the special district. Any such tax shall be known as an 'LHOST.'88 (b) An LHOST shall begin to be levied and collected in a given special district on the first89 day of the next succeeding calendar quarter which begins more t han 50 days after90 S. B. 33 - 4 - 26 SB 33/AP certification of the result of the election approving the local Act granting a homestead91 exemption in accordance with this article and applicable to the county or consolidated92 government that is conterminous with the special district.93 (c) Each local Act enacted pursuant to this article shall:94 (1) Be adopted and approved by local referendum in accordance with Article VII,95 Section II, Paragraph II(a)(2) of the Constitution;96 (2) Incorporate, by reference to this article, the terms and conditions specified under this97 article;98 (3) Exempt homestead property within the special district from all ad valorem taxes99 imposed by the governing authority of the local government for all purposes in an amount100 to be determined annually based upon the net proceeds of the sales and use tax collected101 under this article within the special district;102 (4) Provide that such homestead exemption shall be allowed in addition to and not in lieu103 of any other homestead exemption applicable to the homestead property;104 (5) Provide that such homestead exemption shall become effective on January 1 of the105 year subsequent to the approval of the local Act in the requisite referendum;106 (6) Include only those portions of real property located withi n the applicable special107 district established pursuant to this article; and108 (7) Provide that the homestead exemption shall not apply to or affect any ad valorem109 taxes other than those levied by the governing authority of the local government to which110 the local Act applies.111 48-8-109.53.112 (a) When the imposition of a local sales and use tax is author ized according to the113 procedures provided in this article within a special district, the county whose geographical114 boundary is conterminous with that of the special district shall levy a local sales and use115 tax at the rate of 1 percent.116 S. B. 33 - 5 - 26 SB 33/AP (b) Except as otherwise provided in this article, the LHOST sh all correspond to the tax117 imposed by Article 1 of this chapter, and no item or transactio n which is not subject to118 taxation under Article 1 of this chapter shall be subject to a tax imposed under this article;119 provided, however, that a tax imposed under this article shall apply to sales of motor fuels120 as prepaid local tax as defined in Code Section 48-8-2 and shall be applicable to the sale121 of food and food ingredients and alcoholic beverages as provide d for in Code122 Section 48-8-3. The levy of such tax upon sales of motor fuels as defined in Code123 Section 48-9-2 shall only be imposed on the retail sales price of the motor fuel which is not124 more than $3.00 per gallon.125 (c) With respect to services that are regularly billed on a monthly basis, an LHOST shall126 apply to the first regular billing period coinciding with or following the effective date of127 the LHOST.128 48-8-109.54.129 (a) The tax shall cease to be imposed on the final day of the maximum period of time,130 which shall not exceed ten years, as specified in the local Act granting the homestead131 exemption for the county or consolidated government.132 (b) The tax may be renewed for any special district in the same manner and under the same133 conditions as for an initial imposition of the tax. Such newly authorized tax shall not be134 imposed until the expiration of the tax then in effect.135 48-8-109.55.136 (a) Each LHOST shall be exclusively administered and collected by the commissioner for137 the use and benefit of the special district imposing the tax. Such administration and138 collection shall be accomplished in the same manner and subject to the same applicable139 provisions, procedures, and penalties provided in Article 1 of this chapter except that the140 LHOST shall be applicable to sales of motor fuels as prepaid local tax as defined in Code141 S. B. 33 - 6 - 26 SB 33/AP Section 48-8-2; provided, however, that all moneys collected fr om each taxpayer by the142 commissioner shall be applied first to such taxpayer's liability for taxes owed the state; and143 provided, further, that the commissioner may rely upon a representation by or on behalf of144 the county government or the Secretary of State that such a tax has been validly imposed,145 and the commissioner and the commissioner's agents shall not be liable to any person for146 collecting any such tax which was not validly imposed.147 (b) Dealers, as defined in Code Section 48-8-2, shall be allow ed a percentage of the148 amount of the tax due and accounted for and shall be reimbursed in the form of a deduction149 in submitting, reporting, and paying the amount due if such amount is not delinquent at the150 time of payment. Such dealer deduction shall be at the rate and subject to the requirements151 specified under subsections (b) through (f) of Code Section 48-8-50.152 (c) Each sales and use tax return remitting sales and use taxes collected under this article153 shall separately identify the location of each retail establishment at which any of the sales154 and use taxes remitted were collected and shall specify the amount of sales and the amount155 of taxes collected at each establishment for the period covered by the return to facilitate the156 determination by the commissioner that all sales and use taxes imposed by this article are157 collected and distributed according to situs of sale.158 48-8-109.56.159 (a) The proceeds of the tax collected by the commissioner unde r this article shall be160 disbursed as soon as practicable after collection directly to the county whose boundary is161 conterminous with the boundary of the special district to be he ld in trust for the special162 district in an interest-bearing account and distributed thereafter by such county among the163 eligible local governments within the special district in accordance with the provisions of164 Code Section 48-8-109.57 and Code Section 48-8-109.58.165 S. B. 33 - 7 - 26 SB 33/AP (b) No funds other than the annual LHOST proceeds, and interest accrued thereon, shall166 be placed in such accounts. The funds within such accounts shall not be commingled with167 any other funds of the county.168 48-8-109.57.169 (a) Following the adoption of millage rates each year by all eligible local governments and170 prior to the printing of ad valorem tax bills, the county tax commissioner shall calculate the171 amount of the assessed value to be exempted for homestead prope rty within the special172 district for which any local Acts are in effect under this article. The amount of the assessed173 value of each homestead property that shall be exempted shall be calculated each tax year174 based on the total value of all homestead property of the speci al district, the net millage175 rates adopted by each eligible local government for such tax year, and the net proceeds of176 the LHOST which are available in the trust account as of August 1 of such year.177 (b) For an LHOST imposed within a special district which has a single eligible local178 government, the county tax commissioner shall calculate the maximum amount of assessed179 value of homestead property which may be exempted from all ad valorem taxes imposed180 by such single eligible local government on homestead property within the special district,181 which calculation shall be based upon the proceeds of the LHOST available in the trust182 account as of August 1 of such year, the total assessed value of all homestead property in183 the special district, and the net millage rates imposed by such single eligible local184 government on such homestead property.185 (c) For an LHOST imposed within a special district which has one or more eligible local186 governments, following the adoption of millage rates each year by all such eligible local187 governments, but not later than September 2, the county tax commissioner shall calculate188 the single, maximum amount of assessed value which may be exemp ted throughout the189 special district for all homestead property from all applicable ad valorem taxes imposed by190 the eligible local governments within the special district, which calculation shall be based191 S. B. 33 - 8 - 26 SB 33/AP upon the proceeds of the LHOST available in the trust account as of August 1 of such year,192 the total assessed value of all homestead property in the special district, and the net millage193 rates imposed by each such eligible local government on the homestead property within its194 territory within the special district.195 (d) In the event that the proceeds collected for a special dis trict exceed the amount196 necessary to exempt all homestead property from all ad valorem taxes imposed by all197 eligible local governments on homestead property within the spe cial district, the excess198 proceeds shall be calculated by the county tax commissioner and applied in a manner to199 reduce the net millage rates in effect on property within the s pecial district by an equal200 percentage across all eligible local governments in the special district for such tax year.201 (e) For the purposes of subsection (c) of this Code section, in the event an eligible local202 government fails to submit its adopted millage rates by Septemb er 1, the county tax203 commissioner shall use 90 percent of such eligible local govern ment's prior year's net204 millage rates applicable to homestead property in the special d istrict in the calculation205 under this Code section and the county shall only disburse, und er Code206 Section 48-8-109.58, the lesser of such amount and the net millage rate actually levied by207 such eligible local government in the current year.208 48-8-109.58.209 (a) Prior to mailing ad valorem tax bills for homestead property, the tax collector for each210 eligible local government shall apply the homestead exemption calculated by the county211 tax commissioner under subsection (b) or (c) of Code Section 48 -8-109.57 to each ad212 valorem property tax bill for homestead property. Each ad valorem tax bill for homestead213 property shall reflect the taxpayer's gross ad valorem tax savings which resulted from the214 LHOST homestead exemption.215 (b) In the event of excess proceeds described in subsection (d ) of Code216 Section 48-8-109.57, prior to mailing ad valorem tax bills, the tax collector for each217 S. B. 33 - 9 - 26 SB 33/AP eligible local government shall apply the reduction calculated under subsection (d) of Code218 Section 48-8-109.57 to each ad valorem property tax bill. If applicable, each ad valorem219 tax bill shall reflect the taxpayer's gross ad valorem tax savings which resulted from such220 LHOST millage rate reduction.221 (c) Within 30 days of an eligible local government's mailing of its ad valorem tax bill for222 a given tax year, the county shall disburse LHOST funds from th e trust account to each223 eligible local government in the amount of ad valorem property tax revenue that the given224 eligible local government did not collect due to the amount of the homestead exemption225 determined under Code Section 48-8-109.57, applied pursuant to subsection (a) of this226 Code section, and as granted through the local Act required und er this article and, if227 applicable, the county shall also disburse the amount of revenu e foregone due to the228 reduction of the eligible local government's millage rates provided for in subsection (d) of229 Code Section 48-8-109.57 and subsection (b) of this Code section.230 (d) No disbursement shall be made to any governing authority u ntil such governing231 authority has mailed ad valorem tax bills for a given year.232 48-8-109.59.233 Where a local sales and use tax has been paid with respect to tangible personal property by234 the purchaser either in another local tax jurisdiction within the state or in a tax jurisdiction235 outside the state, the tax may be credited against the tax authorized to be imposed by this236 article upon the same property. If the amount of sales and use tax so paid is less than the237 amount of such tax due under this article, the purchaser shall pay an amount equal to the238 difference between the amount paid in the other tax jurisdiction and the amount due under239 this article. The commissioner may require such proof of payme nt in another local tax240 jurisdiction as the commissioner deems necessary and proper. No credit shall be granted,241 however, against the tax imposed under this article for tax paid in another jurisdiction if the242 tax paid in such other jurisdiction is used to obtain a credit against any other local sales and243 S. B. 33 - 10 - 26 SB 33/AP use tax levied in the special district or any other political s ubdivision within the special244 district; and taxes so paid in another jurisdiction shall be cr edited against the tax levied245 under Article 2 of this chapter, if applicable, then against th e tax levied under Part 1 of246 Article 3 of this chapter, if applicable, then against the tax levied under Part 2 of Article 3247 of this chapter, if applicable, and then against the tax levied under this article.248 48-8-109.60.249 No tax provided for in this article shall be imposed upon the s ale of tangible personal250 property which is ordered by and delivered to the purchaser at a point outside the251 geographical area of the special district in which the tax is imposed regardless of the point252 at which title passes, if the delivery is made by the seller's vehicle, and including United253 States mail or common carrier or by a private or contract carri er licensed by the Federal254 Motor Carrier Safety Administration or the Georgia Department of Public Safety.255 48-8-109.61.256 No tax provided for in this article shall be imposed upon the sale or use of buildings and257 construction materials when the contract for which the materials are purchased or used was258 advertised for bid prior to the local referendum held for the l ocal Act required to initiate259 the levy of the tax and the contract was entered into as a result of a bid actually submitted260 in response to the advertisement prior to approval of such local Act.261 48-8-109.62.262 The commissioner shall have the power and authority to promulga te such rules and263 regulations as shall be necessary for the effective and efficie nt administration and264 enforcement of the collection of the tax authorized by this article.265 S. B. 33 - 11 - 26 SB 33/AP 48-8-109.63.266 Except as otherwise provided in this article or Code Section 48-8-6, the tax authorized by267 this article shall be in addition to any other local sales and use tax. The imposition of any268 other local sales and use tax within a county, municipality, or special district shall not269 affect the authority of a county, municipality, or special dist rict to impose the tax270 authorized by this article and the imposition of the tax authorized by this article shall not271 affect the imposition of any otherwise authorized local sales and use tax within a county,272 municipality, or special district."273 PART III274 SECTION 3-1.275 Part 4 of Article 6 of Chapter 2 of Title 20 of the Official Co de of Georgia Annotated,276 relating to financing under the "Quality Basic Education Act," is amended in Code277 Section 20-2-164, relating to local five mill share funds, by r evising subsection (g) as278 follows:279 "(g) For purposes of calculation under this Code section and Code Section 20-2-165, the280 equalized adjusted school property tax digest, adjusted by paragraph (1) of subsection (a)281 of this Code section, shall be reduced by the sum of the following products:282 (1) The product of the number of constitutional homestead exem ptions for owner283 occupied homes pursuant to Code Section 48-5-44 granted for tha t year, exclusive of284 those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and285 48-5-52, multiplied by the amount per exemption authorized under Code Section 48-5-44;286 provided, further, that, in any city operating an independent school system which287 provides a homestead exemption through local legislation comparable to that provided288 in Code Section 48-5-44, the product calculated in this paragra ph shall represent the289 number of homestead exemptions provided through the applicable local legislation290 S. B. 33 - 12 - 26 SB 33/AP multiplied by the amount per exemption authorized in Code Section 48-5-44, or by the291 amount per exemption authorized in the applicable local legislation, whichever is less;292 and provided, further, that, if the amount per exem ption authorized in Code293 Section 48-5-44 has been changed subsequent to the year of the applicable digest, the294 more recently adopted amount per exemption shall be used for the product calculated in295 this paragraph;296 (2) The product of the number of constitutional homestead exem ptions for disabled297 veterans pursuant to Code Section 48-5-48 granted for that year, multiplied by the amount298 per exemption authorized under that Code section; provided, fur ther, that, in any city299 operating an independent school system which provides a homestead exemption through300 local legislation comparable to that provided in Code Section 4 8-5-48, the product301 calculated in this paragraph shall represent the number of home stead exemptions302 provided through the applicable local legislation multiplied by the amount per exemption303 authorized in the applicable local legislation, whichever is le ss; and provided, further,304 that, if the amount per exemption authorized in Code Section 48-5-48 has been changed305 subsequent to the year of the applicable digest, the more recen tly adopted amount per306 exemption shall be used for the product calculated in this paragraph;307 (3) The product of the estimated number of persons age 65 or older residing in the local308 school system during that year multiplied by 5,000;309 (4) The product which results from the following calculations:310 (A) Subtract the estimated state-wide percentage that persons age 65 or older is of the311 total population, excluding military personnel and institutiona l population, from the312 respective percentage for the local school system. If the respective percentage for the313 local school system is less than the state-wide percentage, a difference of zero shall be314 used in the calculations in this paragraph;315 (B) Multiply the difference which results from subparagraph (A) of this paragraph by316 1,000; and317 S. B. 33 - 13 - 26 SB 33/AP (C) Multiply the product which results from subparagraph (B) of this paragraph by the318 estimated number of persons age 65 or older residing in the local school system during319 that year; and320 (5) The product which results from the following calculations:321 (A) Divide the amount reported in paragraph (4) of subsection (e) of this Code section322 by the average ratio of assessed value to true value used to ca lculate the most recent323 equalized adjusted school property tax digest pursuant to Code Section 48-5-274; and324 (B) Multiply the quotient which results from subparagraph (A) of this paragraph by .4;325 (6) The difference between the assessed value and the net taxable assessed value of all326 properties for which an exemption pursuant to Code Section 48-5-44.2 was granted for327 that year; and328 (7) The difference between the assessed value and the net taxable assessed value of all329 properties for which an exemption authorized pursuant to a loca l constitutional330 amendment or Article VII, Section II, Paragraph II(a) of the Constitution was granted in331 that year."332 SECTION 3-2.333 Said part is further amended in paragraph (5) of subsection (a) of Code Section 20-2-167,334 relating to funding for direct instructional, media center, and staff development costs,335 computerized uniform budget and accounting system, submission o f local budget to state336 board, and provision of certain information by local boards, by striking "15 percent" and337 replacing it with "25 percent".338 S. B. 33 - 14 - 26 SB 33/AP PART IV339 SECTION 4-1.340 Title 21 of the Official Code of Georgia Annotated, relating to elections, is amended in341 subsection (c) of Code Section 21-2-540, relating to conduct and timing of special primaries342 and special elections generally, by revising paragraph (2) and adding a new paragraph to read343 as follows:344 "(2) Notwithstanding any other provision of law to the contrary and except as otherwise345 provided in paragraph (2.1) of this subsection, a special election to present a question to346 the voters shall be held only on one of the following dates which is at least 29 days after347 the date of the call for the special election:348 (A) In odd-numbered years, any such special election shall onl y be held on the third349 Tuesday in March or on the Tuesday after the first Monday in November; and350 (B) In even-numbered years, any such special election shall only be held on:351 (i) The date of and in conjunction with the presidential preference primary if one is352 held that year;353 (ii) The third Tuesday in March; provided, however, that such special election shall354 occur prior to July 1, 2024, and present a question to the voters on sales and use taxes355 authorized by Articles 5, 5A, and 5B of Chapter 8 of Title 48;356 (iii)(ii) The date of the general primary; or357 (iv)(iii) The Tuesday after the first Monday in November.358 (2.1) Notwithstanding any other provision of law to the contrary, a special election to359 present a question or other measure to the voters relating to an increase in revenue by360 a local governing authority, including a question or measure th at could result in an361 increase in taxes shall be held only:362 (A) In odd-numbered years, on:363 (i) The third Tuesday in March; or364 S. B. 33 - 15 - 26 SB 33/AP (ii) The Tuesday after the first Monday in November; and365 (B) In even-numbered years, on:366 (i) The date of the general primary; or367 (ii) The Tuesday after the first Monday in November."368 PART V369 SECTION 5-1.370 Said chapter is further amended in Code Section 48-5-44.2, relating to base year homestead371 exemption, by repealing subsections (h) and (i), revising parag raphs (2), (3), and (7) of372 subsection (a), and revising subsections (d) and (e) as follows:373 "(2) 'Adjusted base year assessed value' means the sum of:374 (A) The previous adjusted base year assessed value;375 (B) An amount equal to the difference between the current year assessed value of the376 homestead and the base year assessed value of the homestead, pr ovided that such377 amount shall not exceed the total of the previous adjusted base year assessed value of378 the homestead multiplied by the inflation rate for the prior year; and379 (C) The value of any substantial property change, provided that no such value added380 improvements to the homestead substantial property change shall be duplicated as to381 the same addition, or improvement, or removal of real property.382 (3) 'Base year assessed value' means:383 (A) With respect to an exemption under this Code section which is first granted to a384 person on such person's homestead for the 2025 taxable year, th e assessed value for385 taxable year 2024, including any final determination of value o n appeal pursuant to386 Code Section 48-5-311, of the homestead after adjustment due to any substantial387 property change which occurred during or after taxable year 202 4, provided that no388 S. B. 33 - 16 - 26 SB 33/AP such adjustment shall be duplicated as to the same addition, improvement, or removal389 of real property; or390 (B) In all other cases, the assessed value, including any final determination of value on391 appeal pursuant to Code Section 48-5-311, of the homestead from the taxable year392 immediately preceding the taxable year in which the exemption under this Code section393 is first granted to the applicant for such homestead after adju stment due to any394 substantial property change which occurred during or after the taxable year used to395 establish the base year assessed value for that homestead, prov ided that no such396 adjustment shall be duplicated as to the same addition, improvement, or removal of real397 property."398 "(7) 'Substantial property change' means any increase or decrease in the assessed value399 of a homestead derived from additions or improvements to, or th e removal of real400 property from, the homestead which occurred during or after the year in which used to401 establish the base year assessed value is determined for the homestead. The assessed402 value of the substantial property changes shall be established following any final403 determination of value on appeal pursuant to Code Section 48-5-311."404 "(d) No person shall receive the exemption granted by subsection (b) of this Code section405 unless such person or person's agent files an application with the tax receiver or tax406 commissioner of his or her respective local government or governments charged with the407 duty of receiving returns of property for taxation, giving such information relative to408 receiving such exemption as will enable such tax receiver or tax commissioner to make a409 determination regarding the initial and continuing eligibility of such person for such410 exemption; provided, however, that any person who had previousl y applied for a411 homestead exemption, was allowed such homestead exemption for the 2024 immediately412 preceding tax year, and remains eligible for a homestead exemption for t hat same413 homestead property in the 2025 current tax year shall be automatically allowed the414 exemption granted under subsection (b) of this Code section for that homestead without415 S. B. 33 - 17 - 26 SB 33/AP further application. Such tax receiver or tax commissioner shall provide application forms416 for this purpose.417 (e)(1) The exemption granted by subsection (b) or (c) of this Code s ection shall be418 claimed and returned as provided in Code Section 48-5-50.1. Such exemption shall be419 automatically renewed from year to year so long as the owner occupies the residence as420 a homestead. After a person or a person's agent has filed the proper application or is421 automatically granted the homestead exemption as provided in su bsection (d) of this422 Code section, it shall not be necessary for such person or such person's surviving spouse423 to make application thereafter for any year, and the exemption shall continue to be424 allowed to such person or such person's surviving spouse. It s hall be the duty of any425 person granted the homestead exemption under subsection (b) or (c) of this Code section426 to notify the tax receiver or tax commissioner of the local gov ernment or governments427 in the event such person for any reason becomes ineligible for such exemption.428 (2) In the event that an applicant becomes ineligible for the homestead exemption429 granted under subsection (b) or (c) of this Code section with r espect to a particular430 homestead property and, thereafter, the applicant becomes eligi ble and applies for the431 homestead exemption on such property, the base year assessed value for such homestead432 shall be calculated in accordance with subparagraph (a)(3)(B) of this Code section as if433 the applicant were a new applicant who had not been previously granted an exemption434 under this Code section for such homestead."435 SECTION 5-2.436 Said chapter is further amended by revising Code Section 48-5-3 02, relating to time for437 completion of revision and assessment of returns and submission of completed digest to438 commissioner, as follows:439 S. B. 33 - 18 - 26 SB 33/AP "48-5-302.440 Each county board of tax assessors, each municipal official res ponsible for collecting441 municipal ad valorem property taxes, and each school official responsible for collecting ad442 valorem property taxes for a local school system shall complete its revision and assessment443 of the returns of taxpayers in its respective county jurisdiction by July 15 of each year,444 except that, in all counties jurisdictions providing for the collection and payment of ad445 valorem taxes in installments, such date shall be June 1 of each year. The tax receiver or446 tax commissioner shall then immediately forward one copy of the completed digest to the447 commissioner for examination and approval."448 SECTION 5-3.449 Said chapter is further amended by revising Code Section 48-5-303, relating to correction of450 mistakes in county tax digests and notification of correction, as follows:451 "48-5-303.452 (a)(1) The county board of tax assessors shall have authority to correct factual errors in453 the tax digest when discovered within three years and when such corrections are of454 benefit to the taxpayer. Such corrections, after approval of t he county board of tax455 assessors, shall be communicated to the taxpayer and notice shall be provided to the tax456 commissioner.457 (2) If the county board of tax assessors discovers a factual error in the tax digest which458 is not of benefit to the taxpayer and which relates to an improperly or mistakenly applied459 homestead exemption that was not due to any intentional misrepresentation or fraudulent460 act on the part of the taxpayer, the tax receiver or tax commissioner shall be prohibited461 from retroactively assessing the taxpayer the difference in ad valorem taxes actually paid462 by the taxpayer and the amount of ad valorem taxes that would have been assessed on the463 taxpayer but for the improperly or mistakenly applied homestead exemption.464 S. B. 33 - 19 - 26 SB 33/AP (b) If a tax receiver or tax commissioner makes a mistake in t he digest which is not465 corrected by the county board of tax assessors or county board of equalization, the466 commissioner, with the sanction of the Governor, shall correct the mistake by making the467 necessary entries in the digest furnished the commissioner. The commissioner shall notify468 the county governing authority and the tax collector of the county from which the digest469 comes of the mistake and correction."470 PART VI471 SECTION 6-1.472 This Act shall become effective upon its approval by the Governor or upon its becoming law473 without such approval.474 SECTION 6-2.475 All laws and parts of laws in conflict with this Act are repealed.476 S. B. 33 - 20 -