HB142: HB142 Ad valorem tax; extension of preferential assessment periods for certain historic properties; provide

Georgia law currently gives owners of rehabilitated historic properties and landmark historic properties a preferential property tax assessment (a break on property taxes based on the property's pre-rehabilitation value) for nine years. After nine years, that special assessment normally ends, though owners can requalify if they do more rehabilitation work. This bill amends two sections of Georgia's tax code (O.C.G.A. §§ 48-5-7.2 and 48-5-7.3) to let county governing authorities approve extending that preferential assessment period for up to 12 additional years, but only for income-producing real property. The extension is optional and depends on county approval; it does not apply automatically or to properties that are not income-producing. The bill also repeals any conflicting laws.

• Allows county governing authorities to approve extending the preferential tax assessment period for rehabilitated historic property beyond the current nine years, by up to 12 more years, for income-producing property.
• Makes the same extension available for landmark historic property under a separate but parallel section of the tax code.
• Limits the extension to income-producing real property, meaning it would not apply to owner-occupied homes or non-income-generating historic sites.
• Leaves in place the existing rule that properties can requalify for a fresh preferential period if they undergo further rehabilitation.

Owners of income-producing historic properties, such as rehabilitated commercial or rental buildings, who currently receive nine years of preferential property tax assessment. County governing authorities, which would gain discretion to approve the extended assessment period, and county tax assessors who administer these classifications.

Owners of income-producing historic buildings could keep a lower, pre-rehabilitation property tax assessment for up to 21 years total instead of 9, if their county approves it, potentially reducing their property tax bills for a longer stretch of time.

• Section 1 revises O.C.G.A. § 48-5-7.2(h)(4) so that, with county approval, the preferential assessment for rehabilitated historic property can continue up to 12 additional years beyond the current nine, for income-producing real property.
• Section 2 makes the identical change to O.C.G.A. § 48-5-7.3(e)(1)(E), covering landmark historic property.
• Section 3 repeals any conflicting laws, a standard closing provision.

1. 2025-01-30House Second Readers (House)
2. 2025-01-29House First Readers (House)
3. 2025-01-28House Hopper (House)

• Mark Newton (R, HD-127)Primary sponsor
• Robert Dickey (R, HD-134)
• Bruce Williamson (R, HD-112)
• Jaclyn Ford (R, HD-170)
• Debbie Buckner (D, HD-137)

• property taxes
• historic preservation
• local government
• tax incentives