HB439: HB439 Revenue and taxation; revise deductions allowed to dealers

26 HB 439/AP House Bill 439 (AS PASSED HOUSE AND SENATE) By: Representatives Yearta of the 152nd, Dickey of the 134th, Williams of the 148th, Anderson of the 10th, Kelley of the 16th, and others A BILL TO BE ENTITLED AN ACT To amend Title 36 of the Official Code of Georgia Annotated, relating to local government1 so as to authorize the establishment of local homeowner's incen tive adjustment grant2 programs; to provide definitions; to provide constitutional aut horization; to provide for3 referendums to establish and discontinue such programs; to provide for the appropriation of4 funds to support such programs; to provide for the calculation, application, and limitations5 on tax credits; to provide for rules and regulations; to provide for recoverability; to amend6 Article 7 of Chapter 5 of Title 48 of the Official Code of Geor gia Annotated, relating to7 miscellaneous local administrative provisions, so as to authorize the establishment of local8 homeowner's incentive adjustment grant funds; to provide for an effective date; to provide9 for related matters; to repeal conflicting laws; and for other purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended13 by adding a new chapter to read as follows:14 H. B. 439 - 1 - 26 HB 439/AP "CHAPTER 89A15 36-89A-1.16 As used in this chapter, the term:17 (1) 'Applicable rollback' means a:18 (A) Rollback of an ad valorem tax millage rate pursuant to sub section (a) of Code19 Section 48-8-91 in a county or municipality that levies a local option sales tax;20 (B) Rollback of an ad valorem tax millage rate pursuant to subparagraph (c)(2)(C) of21 Code Section 48-8-104 in a county or municipality that levies a homestead option sales22 tax;23 (C) Reduction of an ad valorem tax millage rate pursuant to th e development of a24 service delivery strategy under Code Section 36-70-24; and25 (D) Reduction of an ad valorem tax millage rate pursuant to pa ragraph (2) of26 subsection (a) of Code Section 33-8-8.3 in a county that collec ts insurance premium27 tax.28 (2) 'County millage rate' means the net ad valorem tax millage rate, after deducting29 applicable rollbacks, levied by a county for county purposes an d applying to qualified30 homesteads in the county, including any millage levied for those special districts reported31 on the 2026 ad valorem tax digest certified to and received by the state revenue32 commissioner on or before December 31, 2026, but not including any millage levied for33 purposes of bonded indebtedness and not including any millage l evied on behalf of a34 county school district for educational purposes.35 (3) 'Eligible assessed value' means a certain stated amount of the assessed value of each36 qualified homestead in the state.37 (4) 'Fiscal authority' means the individual authorized to coll ect ad valorem taxes for a38 county or municipality which levies ad valorem taxes.39 H. B. 439 - 2 - 26 HB 439/AP (5) 'Local homeowner's incentive adjustment grant fund' means the fund established by40 the participating local government pursuant to Code Section 48-5-381.1.41 (6) 'Municipal millage rate' means the net ad valorem tax millage rate, after deducting42 applicable rollbacks, levied by a municipality for municipal pu rposes and applying to43 qualified homesteads in the municipality, but not including any millage levied for those44 special tax districts reported on the 2026 City and Independent School Millage Rate45 Certification certified to and received by the state revenue co mmissioner on or before46 December 31, 2026, any millage levied for purposes of bonded in debtedness, or any47 millage levied on behalf of an independent school district for educational purposes.48 (7) 'Participating local government' means a county or municipality wherein the voters49 have approved a local homeowner's incentive adjustment grant program pursuant to Code50 Section 36-89A-2 and that has established a local homeowner's i ncentive adjustment51 grant fund.52 (8) 'Qualified homestead' means a homestead qualified for any exemption, state, county,53 or school, authorized under Code Section 48-5-44.54 36-89A-2.55 (a) This chapter is enacted pursuant to Article VII, Section I IA, Paragraph I of the56 Constitution to provide a mechanism for counties and municipali ties to establish local57 homeowner's incentive adjustment programs so as to reduce the tax burden upon qualified58 homesteads within participating local governments.59 (b) Any county or municipality that wishes to establish a loca l homeowner's incentive60 adjustment program pursuant to this chapter shall first submit a referendum to the electors61 of such jurisdiction with the question of whether or not such program shall be established. 62 The call for and conduct of any such election shall be in the manner authorized under Code63 Section 21-2-540. All persons desiring to vote in favor of the local homeowner's incentive64 adjustment program shall vote 'Yes' and all persons opposed to such program shall vote65 H. B. 439 - 3 - 26 HB 439/AP 'No.' If more than one-half of the votes cast are in favor of the local homeowner's incentive66 adjustment program, then such program shall go into effect for the next fiscal year for the67 participating local government.68 (c) When the electors of a jurisdiction approve a local homeowner's incentive adjustment69 program, and a county or municipality becomes a participating local government, the local70 homeowner's incentive adjustment program shall not be discontinued until the electors of71 the participating local government approve the discontinuation of such program in a72 referendum. The call for and conduct of any such election shal l be in the manner73 authorized under Code Section 21-2-540. All persons desiring t o vote in favor of74 discontinuing the local homeowner's incentive adjustment program shall vote 'Yes' and all75 persons opposed to discontinuing such program shall vote 'No.' If more than one-half of76 the votes cast are in favor of discontinuing the local homeowne r's incentive adjustment77 program, then such program shall be discontinued at the end of the next fiscal year. If78 more than one-half of the votes cast are opposed to discontinuing the local homeowner's79 incentive adjustment program, then such program shall continue to operate in a manner80 consistent with this chapter.81 36-89A-3.82 (a) Subject to the limitations of subsection (b) of this Code section, in each fiscal year83 beginning after a county or municipality becomes a participatin g local government, the84 governing authority of such government shall appropriate to the local homeowner's85 incentive adjustment grant fund for such government funds to pr ovide homeowner's86 incentive adjustment credits to qualifying homestead properties in the county or87 municipality.88 (b) For each fiscal year beginning after a county or municipality becomes a participating89 local government, no funds shall be appropriated under subsection (a) of this Code section90 unless the actual revenues collected by such government in the preceding fiscal year91 H. B. 439 - 4 - 26 HB 439/AP exceeded appropriations enumerated in the budget ordinance or r esolution, as amended,92 adopted by such government for such preceding fiscal year, and the amount of estimated93 total revenues available for appropriation in the budget ordinance or resolution for the next94 fiscal year are equal to or exceed such actual collections for the preceding fiscal year.95 36-89A-4.96 (a)(1) When funds are appropriated as provided in Code Section 36-89A-3, such grants97 shall be allotted by the participating local government as follows:98 (A) Immediately following the actual preparation of ad valorem property tax bills, the99 county fiscal authority of a participating county shall calculate the total amount of tax100 revenue which would be generated by applying the county millage rates to the eligible101 assessed value of each qualified homestead in the county. The fiscal authority shall102 then determine the amount of funds in the county's local homeow ner's incentive103 adjustment grant fund and calculate the amount of the adjustmen t credit that may be104 provided from such fund to each qualified homestead in the county up to the taxpayer's105 ad valorem property tax liability on the homestead. The total amount of actual106 adjustment credit shall be applied as a tax credit given to each qualified homestead in107 the county; or108 (B) Immediately following the actual preparation of ad valorem property tax bills, the109 fiscal authority of a participating municipality shall calculat e the total amount of tax110 revenue which would be generated by applying the municipal mill age rate to the111 eligible assessed value of each qualified homestead in the muni cipality. The fiscal112 authority shall then determine the amount of funds in the munic ipality's local113 homeowner's incentive adjustment grant fund and calculate the a mount of the114 adjustment credit that may be provided from such fund to each qualified homestead in115 the municipality up to the taxpayer's ad valorem property tax liability on the homestead,116 H. B. 439 - 5 - 26 HB 439/AP whichever is lower. The total amount of actual adjustment credit shall be applied as a117 tax credit given to each qualified homestead in the municipality.118 (2) Credit amounts computed under paragraph (1) of this subsection shall be applied to119 reduce the otherwise applicable tax liability on a dollar-for-d ollar basis, but the credit120 granted shall not in any case exceed the amount provided for in the Constitution or of the121 otherwise applicable tax liability after the granting of all ap plicable homestead122 exemptions, except for any homestead exemption under Article 2A of Chapter 8 of Title123 48, the 'Homestead Option Sales and Use Tax Act,' as amended, a nd after the granting124 of all applicable millage rollbacks.125 (3) Credit amounts computed under paragraph (1) of this subsec tion shall not be126 computed so as to result in the value of the credits to be granted exceeding the amount127 of funds in the local homeowner's incentive adjustment grant fu nd of the participating128 local government.129 (b) The grant of funds by a county shall be conditioned on the county's fiscal authority130 reducing each qualified homestead's otherwise applicable liabil ity for county taxes for131 county purposes by a credit amount calculated in subparagraph ( a)(1)(A) of this Code132 section.133 (c) The grant of funds by a municipality shall be conditioned on the municipality's fiscal134 authority reducing each qualified homestead's otherwise applicable liability for municipal135 taxes by a credit amount calculated in subparagraph (a)(1)(B) of this Code section.136 (d) Each fiscal authority shall show the credit amount on the tax bill.137 36-89A-5.138 The state revenue commissioner shall adopt rules and regulations for the administration of139 this chapter, including specific instructions to participating local governments on140 developing and preparing the forms necessary for the administration of a program pursuant141 to this chapter.142 H. B. 439 - 6 - 26 HB 439/AP 36-89A-6.143 Any credit under this chapter which is erroneously or illegally granted shall be recoverable144 by the political subdivision granting such credit in the same manner as any other delinquent145 tax."146 SECTION 2.147 Article 7 of Chapter 5 of Title 48 of the Official Code of Geor gia Annotated, relating to148 miscellaneous local administrative provisions, is amended by adding a new Code section to149 read as follows:150 "48-5-381.1.151 (a) Whenever the governing authority of any county or municipality determines that it is152 impractical to expend the funds raised by taxation for the purposes for which the taxes were153 levied and that it is in the best interest of the county or mun icipality and its citizens and154 taxpayers for public work to be postponed until more advantageous conditions prevail, the155 governing authority may order as much of the funds as it deems proper transferred to a156 fund to be known as the 'local homeowner's incentive adjustment grant fund' of the county157 or municipality. The local homeowner's incentive adjustment grant fund may be deposited158 in the manner provided by law or may be invested in obligations of the United States.159 (b) A county or municipal governing authority may transfer from time to time to its local160 homeowner's incentive adjustment grant fund any accumulated overage in its general fund.161 (c) The county or municipal local homeowner's incentive adjustment grant fund shall be162 held until the governing authority determines that it is practi cal and advantageous to163 undertake a local homeowner's incentive adjustment program pursuant to Chapter 89A of164 Title 36. Upon the determination, the governing authority may order funds transferred165 from the local homeowner's incentive adjustment grant fund to any of the several funds or166 to the general fund of the county or municipality so as to off set any homeowner's incentive167 adjustments approved by such governing authority.168 H. B. 439 - 7 - 26 HB 439/AP (d) The existence of a county or municipal local homeowner's incentive adjustment grant169 fund shall not prevent tax levies from being made by the governing authority for the several170 purposes authorized by law at such rates as are necessary for t he current or anticipated171 needs of the county or municipality to the same extent the gove rning authority could172 lawfully levy if no local homeowner's incentive adjustment grant fund was in existence.173 (e) When any county or municipal local homeowner's incentive adjustment grant fund is174 established, it shall be the duty of the governing authority to expend the fund pursuant to175 the provisions of Chapter 89A of Title 36. If such a program i s not established or is176 discontinued, the local homeowner's incentive adjustment grant fund shall be closed and177 any remaining funds shall be deposited in the county or municipal general fund.178 (f) The provisions of this Code section are in addition to and not in lieu of the179 establishment of a reserve fund pursuant to Code Section 48-5-381."180 SECTION 3.181 This Act shall become effective on January 1, 2027.182 SECTION 4.183 All laws and parts of laws in conflict with this Act are repealed.184 H. B. 439 - 8 -