HB526: HB526 Ad valorem tax; extension of preferential assessment period for certain historic properties; provide

Georgia law currently gives owners of rehabilitated historic properties and landmark historic properties a preferential property tax assessment (a special, often lower valuation method) for nine years. After nine years, that special treatment normally ends unless the property undergoes new rehabilitation. 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 the county government where the property sits approve an extension of that preferential assessment for up to 12 more years, but only for income-producing real property. During the extension, the property's fair market value would still be calculated the same way it is now under the existing valuation formula in O.C.G.A. § 48-5-2. The bill does not change the rules for non-income-producing historic homes, which would still lose the preferential assessment after nine years unless newly rehabilitated.

• Allows county governing authorities to approve up to 12 additional years of preferential tax assessment for income-producing rehabilitated historic property after the current nine-year period ends.
• Makes the same 12-year extension option available for income-producing landmark historic property under a separate code section.
• Keeps the existing fair market value calculation method in place during any extended assessment period.
• Leaves the nine-year expiration and rehabilitation requirement unchanged for historic properties that are not income-producing.

Owners of income-producing rehabilitated or landmark historic properties, such as historic buildings converted to rental, retail, or commercial use, and county governing authorities, which would gain new discretion to grant these tax assessment extensions.

Owners of income-producing historic buildings could keep a lower, more predictable property tax assessment for over a decade longer if their county approves it, potentially affecting local tax revenue and encouraging continued investment in historic commercial properties.

• Section 1 amends O.C.G.A. § 48-5-7.2 so county approval can extend the preferential assessment for rehabilitated historic income-producing property up to 12 years beyond the standard nine-year period.
• Section 1 specifies the property's fair market value during the extension is still calculated under division (3)(C)(ii) of O.C.G.A. § 48-5-2.
• Section 2 amends O.C.G.A. § 48-5-7.3 to apply the identical county-approved 12-year extension option to landmark historic income-producing property, using division (3)(D)(ii) of O.G.C.A. § 48-5-2 for valuation.
• Section 3 repeals any conflicting laws, a standard closing provision.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-03-03House Committee Favorably Reported By Substitute (House)
3. 2025-02-21House Second Readers (House)
4. 2025-02-20House First Readers (House)
5. 2025-02-19House Hopper (House)

• Mark Newton (R, HD-127)Primary sponsor
• Ron Stephens (R, HD-164)
• Debbie Buckner (D, HD-137)
• Dale Washburn (R, HD-144)
• Jesse Petrea (R, HD-166)

• property taxes
• historic preservation
• local government
• ad valorem taxation