HB547: HB547 Revenue and taxation; bona fide conservation use property; permit combination of multiple covenants into a single, new, ten-year covenant

26 LC 44 3425S House Bill 547 (COMMITTEE SUBSTITUTE) By: Representatives Cannon of the 172nd, Dickey of the 134th, Corbett of the 174th, Meeks of the 178th, Huddleston of the 72nd, and others A BILL TO BE ENTITLED AN ACT To amend Article 1 of Chapter 5 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to general provisions regarding ad valorem taxation of property, so as to revise the2 definition of bona fide conservation use property to include carbon sequestration; to permit3 the combination of multiple covenants of a single owner into a single, new, ten-year4 covenant; to provide for exceptions; to provide for the change of forest land use assessment5 property to current use assessment property after a transfer of ownership; to provide for6 related matters; to provide for an effective date and applicability; to repeal conflicting laws;7 and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Article 1 of Chapter 5 of Title 48 of the Official Code of Geor gia Annotated, relating to11 general provisions regarding ad valorem taxation of property, is amended in Code Section12 48-5-7.4, relating to preferential assessment for bona fide conservation use property and bona13 fide residential transitional property, by revising subparagraph (a)(1)(F) and adding a new14 subsection to read as follows:15 H. B. 547 (SUB) - 1 - 26 LC 44 3425S "(F) The primary purpose described in this paragraph includes land conservation and16 ecological forest management in which commercial production of wood and wood fiber17 products may be undertaken primarily for conservation and restoration purposes rather18 than financial gain. Such property may, in addition, have as a secondary use carbon19 sequestration in accordance with the Georgia Carbon Sequestration Registry or a carbon20 sequestration program; or"21 "(e.1)(1) A single owner, as described in subparagraph (a)(1)(C ) of this Code section,22 who has multiple parcels of bona fide conservation use property that are collectively23 subject to more than one valid covenant under this Code section may combine such24 parcels and covenants in whole under a single, new, ten-year co venant for bona fide25 conservation use without constituting a breach of any of the covenants, provided that all26 such property would be otherwise eligible to be placed under a renewal covenant under27 this Code section by the owner upon the natural expiration of the original covenant.28 (2) The provisions of this subsection shall not be permitted or be construed to:29 (A) Allow any portion of property held under a covenant to be removed from the30 covenant without being combined into the new covenant;31 (B) Change any requirements for what constitutes qualified property; or32 (C) Change any requirements for what constitutes qualifying use for purposes of this33 Code section.34 (3) A single owner, as described in subparagraph (a)(1)(C) of this Code section, desiring35 to proceed with combining parcels pursuant to paragraph (1) of this subsection shall first36 file a real property tax return with the appropriate board of tax assessors on or before the37 deadline to file a real property tax return.38 (4) Parcels on which delinquent taxes are owed shall not be el igible to be combined39 pursuant to paragraph (1) of this subsection."40 H. B. 547 (SUB) - 2 - 26 LC 44 3425S SECTION 2.41 Said article is further amended in Code Section 48-5-7.7, relation to preferential assessment42 for forest land conservation use property, by revising subsection (f) as follows:43 "(f)(1) A qualified owner shall not be authorized to make appli cation for and receive44 conservation use assessment under this Code section for any property which at the time45 of such application is receiving preferential assessment under Code Section 48-5-7.1 or46 current use assessment under Code Section 48-5-7.4; provided, h owever, that, if any47 property is subject to a covenant under either of those Code sections, it may be changed48 from such covenant and placed under a covenant under this Code section if it is otherwise49 qualified. Any such change shall terminate the existing covenant and shall not constitute50 a breach thereof. No property may be changed more than once under this paragraph.51 (2) Any property that is subject to a covenant under this Code section and subsequently52 fails to adhere to the qualifying purpose, as defined in paragraph (5) of subsection (b) of53 this Code section, may be changed from the covenant under this Code section and placed54 under a covenant provided for in Code Section 48-5-7.4 if the p roperty otherwise55 qualifies under the provisions of that Code section. In such a case, the existing covenant56 under this Code section shall be terminated, and the change shall not constitute a breach57 thereof. No property may be changed more than once under this paragraph.58 (3) A qualified owner under this Code section may obtain owner ship of property59 receiving preferential assessment under Code Section 48-5-7.1 or current use assessment60 under Code Section 48-5-7.4 and have 180 days from the time ownership is acquired to61 change from such covenant and place under a covenant under this Code section if it is62 otherwise qualified and would not constitute a breach thereof even if the qualified owner63 does not qualify for the preferential assessment under Code Section 48-5-7.1 or current64 use assessment under Code Section 48-5-7.4."65 H. B. 547 (SUB) - 3 - 26 LC 44 3425S SECTION 3.66 This Act shall become effective upon its approval by the Governor or upon its becoming law67 without such approval and shall be applicable to all taxable ye ars beginning on or after68 January 1, 2027.69 SECTION 4.70 All laws and parts of laws in conflict with this Act are repealed.71 H. B. 547 (SUB) - 4 -