SB306: SB306 Bona Fide Conservation Use Property; impending expiration to be sent via certified mail; require notices

26 LC 44 3555S Senate Bill 306 By: Senator Robertson of the 29th AS PASSED 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 require3 certified notices of impending expiration; to provide for the r einstatement of certain4 covenants and preferential assessments in certain limited circu mstances; to provide for5 appeals and refunds; to prohibit additional fees or interest; t o permit the combination of6 multiple covenants of a single owner into a single, new, ten-ye ar covenant; to provide for7 exceptions; to provide for the change of forest land use assessment property to current use8 assessment property after a transfer of ownership; to amend Code Section 48-7-29.6 of the9 Official Code of Georgia Annotated, relating to tax credits for qualified low-income10 buildings, so as to provide for a n annual aggregate cap; to pro vide for related matters; to11 provide for an effective date and applicability; to repeal conf licting laws; and for other12 purposes.13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:14 S. B. 306 - 1 - 26 LC 44 3555S SECTION 1.15 Article 1 of Chapter 5 of Title 48 of the Official Code of Geor gia Annotated, relating to16 general provisions regarding ad valorem taxation of property, i s amended in Code17 Section 48-5-7.4, relating to preferential assessment for bona fide conservation use property18 and bona fide residential transitional property, by revising su bparagraph (a)(1)(F) and19 subsection (d) and adding new subsections to read as follows:20 "(F) The primary purpose described in this paragraph includes land conservation and21 ecological forest management in which commercial production of wood and wood fiber22 products may be undertaken primarily for conservation and restoration purposes rather23 than financial gain. Such property may, in addition, have as a secondary use carbon24 sequestration in accordance with the Georgia Carbon Sequestration Registry or a carbon25 sequestration program; or"26 "(d) No property shall qualify for current use assessment under this Code section unless27 and until the owner of such property agrees by covenant with th e appropriate taxing28 authority to maintain the eligible property in bona fide qualif ying use for a period of ten29 years beginning on the first day of January of the year in which such property qualifies for30 such current use assessment and ending on the last day of December of the final year of the31 covenant period. After the owner has applied for and has been allowed current use32 assessment provided for in this Code section, it shall not be necessary to make application33 thereafter for any year in which the covenant period is in effect and current use assessment34 shall continue to be allowed such owner as specified in this Code section. At least 60 days35 prior to the expiration date of the covenant, the county board of tax assessors shall send by36 first-class mail written notification of such impending expiration; provided, however, that37 the county board of tax assessors shall send such written notification by certified mail, if38 requested by the taxpayer. Additionally, the county board of t ax assessors shall send an39 electronic copy of such notification to the taxpayer if the taxpayer has submitted a current40 email address and requested such electronic notification . Upon the expiration of any41 S. B. 306 - 2 - 26 LC 44 3555S covenant period, the property shall not qualify for further current use assessment under this42 Code section unless and until the owner of the property has entered into a renewal covenant43 for an additional period of ten years; provided, however, that the owner may enter into a44 renewal contract in the ninth year of a covenant period so that the contract is continued45 without a lapse for an additional ten years.46 (d.1)(1) This subsection shall apply in the case of any property:47 (A) For which the covenant required under subsection (d) of this Code section expired48 during the two years immediately preceding July 1, 2025; and49 (B) That, during the period after the expiration of the covena nt required under50 subsection (d) of this Code section, continued to qualify for c urrent use assessment51 under this Code section; and52 (C) The owner of such property can demonstrate by sworn affida vit from the53 designated mail carrier that the mailbox was inoperable or unavailable at the time such54 notice of expiration should have been delivered.55 (2) Notwithstanding any other provision of this chapter to the contrary, for a property56 that meets the requirements of paragraph (1) of this subsection the covenant required57 under subsection (d) of this Code section shall be deemed to be reinstated and the owner58 of the property shall only be liable for the taxes that would h ave been imposed if such59 covenant had not expired.60 (3) Notwithstanding the procedures and requirements for appeals provided in this chapter61 to the contrary, the owner of any property that meets the requirements of paragraph (1)62 of this subsection may appeal the assessment of such property for the time period stated63 in subparagraph (A) of paragraph (1) of this subsection. The c ounty board of tax64 commissioners shall refund to the owner any amount of taxes pai d in excess of such65 amount, and no other costs, fees, or interest shall be imposed on such owner in relation66 to such appeal."67 S. B. 306 - 3 - 26 LC 44 3555S "(e.1)(1) A single owner, as described in subparagraph (a)(1)(C ) of this Code section,68 who has multiple parcels of bona fide conservation use property that are collectively69 subject to more than one valid covenant under this Code section may combine such70 covenants in whole under a single, new, ten-year covenant for bona fide conservation use71 without constituting a breach of any of the covenants, provided that all such property72 would be otherwise eligible to be placed under a renewal covena nt under this Code73 section by the owner upon the natural expiration of the original covenant.74 (2) The provisions of this subsection shall not be permitted or be construed to:75 (A) Allow any portion of property held under a covenant to be removed from the76 covenant without being combined into the new covenant;77 (B) Change any requirements for what constitutes qualified property; or78 (C) Change any requirements for what constitutes qualifying use for purposes of this79 Code section.80 (3) A single owner, as described in subparagraph (a)(1)(C) of this Code section, desiring81 to proceed with combining covenants pursuant to paragraph (1) of this subsection shall82 first file a real property tax return with the appropriate board of tax assessors on or before83 the deadline to file such return.84 (4) Parcels on which delinquent taxes are owed shall not be el igible to be combined85 pursuant to paragraph (1) of this subsection."86 SECTION 2.87 Said article is further amended in Code Section 48-5-7.7, relation to preferential assessment88 for forest land conservation use property, by revising subsection (f) as follows:89 "(f)(1) A qualified owner shall not be authorized to make appli cation for and receive90 conservation use assessment under this Code section for any property which at the time91 of such application is receiving preferential assessment under Code Section 48-5-7.1 or92 current use assessment under Code Section 48-5-7.4; provided, h owever, that, if any93 S. B. 306 - 4 - 26 LC 44 3555S property is subject to a covenant under either of those Code sections, it may be changed94 from such covenant and placed under a covenant under this Code section if it is otherwise95 qualified. Any such change shall terminate the existing covenant and shall not constitute96 a breach thereof. No property may be changed more than once under this paragraph.97 (2) Any property that is subject to a covenant under this Code section and subsequently98 fails to adhere to the qualifying purpose, as defined in paragraph (5) of subsection (b) of99 this Code section, may be changed from the covenant under this Code section and placed100 under a covenant provided for in Code Section 48-5-7.4 if the p roperty otherwise101 qualifies under the provisions of that Code section. In such a case, the existing covenant102 under this Code section shall be terminated, and the change shall not constitute a breach103 thereof. No property may be changed more than once under this paragraph.104 (3) A qualified owner under this Code section may obtain owner ship of property105 receiving preferential assessment under Code Section 48-5-7.1 or current use assessment106 under Code Section 48-5-7.4 and have 180 days from the time ownership is acquired to107 change from such covenant and place under a covenant under this Code section if it is108 otherwise qualified and would not constitute a breach thereof even if the qualified owner109 does not qualify for the preferential assessment under Code Section 48-5-7.1 or current110 use assessment under Code Section 48-5-7.4."111 SECTION 3.112 Code Section 48-7-29.6 of the Official Code of Georgia Annotated, relating to tax credits for113 qualified low-income buildings, is amended by revising paragraph (5) of subsection (b) as114 follows:115 "(5) The aggregate annual amount of tax credits allowed initially awarded pursuant to116 this Code section shall not exceed $100 million for each of the taxable years 2026117 through 2028."118 S. B. 306 - 5 - 26 LC 44 3555S SECTION 4.119 This Act shall become effective upon its approval by the Governor or upon its becoming law120 without such approval, and Sections 1 and 2 of this Act shall b e applicable to all taxable121 years beginning on or after January 1, 2027.122 SECTION 5.123 All laws and parts of laws in conflict with this Act are repealed.124 S. B. 306 - 6 -