HB743: HB743 Social Circle, City of; ad valorem tax; provide homestead exemption

25 LC 62 0178S/AP House Bill 743 (AS PASSED HOUSE AND SENATE) By: Representatives Fleming of the 114th, Williamson of the 112th, and Martinez of the 111th A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from City of Social Circle ad valorem taxes for municipal1 purposes in an amount equal to the amount by which the current year assessed value of a2 homestead exceeds the adjusted base year assessed value of such homestead; to provide for3 definitions; to specify the terms and conditions of the exemption and the procedures relating4 thereto; to provide for applicability; to provide for complianc e with c onstitutional5 requirements; to provide for a referendum, effective dates, aut omatic repeal, mandatory6 execution of election, and judicial remedies regarding failure to comply; to provide for7 related matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 (a) As used in this Act, the term:11 (1) "Ad valorem taxes" means all ad valorem taxes levied by, f or, or on behalf of the12 City of Social Circle for municipal purposes, except for any ad valorem taxes levied to13 pay interest on and to retire bonded indebtedness.14 (2) "Adjusted base year assessed value" means the sum of:15 (A) The previous adjusted base year assessed value;16 H. B. 743 - 1 - 25 LC 62 0178S/AP (B) An amount equal to the difference between the current year assessed value of the17 homestead and the base year assessed value of the homestead, pr ovided that such18 amount shall not exceed the total of the previous adjusted base year assessed value of19 the homestead multiplied by the inflation rate for the prior ye ar plus 25 basis points;20 and21 (C) The value of any substantial property change, provided that no such value added22 improvements to the homestead shall be duplicated as to the sam e addition or23 improvement.24 (3) "Base year assessed value" means:25 (A) With respect to an exemption under this section which is first granted to a person26 on such person's homestead for the 2026 taxable year, the asses sed value for taxable27 year 2024, including any final determination of value on appeal pursuant to Code28 Section 48-5-311 of the O.C.G.A., of the homestead; or29 (B) In all other cases, the assessed value, including any final determination of value on30 appeal pursuant to Code Section 48-5-311 of the O.C.G.A., of the homestead from the31 taxable year immediately preceding the taxable year in which the exemption under this32 section is first granted to the applicant.33 (4) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of34 the O.C.G.A., as amended.35 (5) "Inflation rate" means the annual inflationary index rate as determined for a given36 year by the commissioner of revenue in accordance with subsection (f) of this section.37 (6) "Previous adjusted base year assessed value" means:38 (A) With respect to the year for which the exemption under this section is first granted39 to a person on such person's homestead, the base year assessed value; or40 (B) In all other cases, the adjusted base year assessed value of the homestead as41 calculated in the taxable year immediately preceding the curren t year, including any42 H. B. 743 - 2 - 25 LC 62 0178S/AP final determination of value on appeal pursuant to Code Section 48-5-311 of the43 O.C.G.A.44 (7) "Substantial property change" means any increase or decrease in the assessed value45 of a homestead derived from ad ditions or improvements to, or th e removal of real46 property from, the homestead which occurred after the year in w hich the base year47 assessed value is determined for the homestead. The assessed v alue of the substantial48 property changes shall be established following any final deter mination of value on49 appeal pursuant to Code Section 48-5-311 of the O.C.G.A.50 (b)(1) Subject to the limitations provided in this section, ea ch resident of the City of51 Social Circle is granted an exemption on that person's homestead from ad valorem taxes52 in an amount equal to the amount by which the current year asse ssed value of that53 homestead, including any final determination of value on appeal pursuant to Code54 Section 48-5-311, exceeds its previous adjusted base year assessed value.55 (2) Except as provided for in subsection (c) of this section, no exemption provided for56 in this subsection shall transfer to any subsequent owner of the property, and the assessed57 value of the property shall be as provided by law.58 (c) No person shall receive the exemption granted by subsection (b) of this section unless59 such person or person's agent files an application with the governing authority of the City of60 Social Circle or its designee as will enable the governing auth ority of the City of Social61 Circle or its designee to make a determination regarding the initial and continuing eligibility62 of such person for such exemption; provided, however, that any person who had previously63 applied for a homestead exemption, was allowed such homestead exemption for the 2025 tax64 year, and remains eligible for a homestead exemption for that same homestead property in65 the 2026 tax year shall be automatically allowed the exemption granted under subsection (b)66 of this section for that homestead without further application. The governing authority of the67 City of Social Circle or its designee shall provide application forms for this purpose.68 H. B. 743 - 3 - 25 LC 62 0178S/AP (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of69 the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year70 so long as the person granted the homestead exemption under subsection (b) of this section71 occupies the residence as a homestead. After such person has filed the proper application as72 provided in subsection (c) of this section, it shall not be nec essary to make application73 thereafter for any year, and such exemption shall continue to be allowed to such person. It74 shall be the duty of any such person granted the homestead exemption under subsection (b)75 of this section to notify the governing authority of the City of Social Circle or its designee76 in the event that such person for any reason becomes ineligible for such exemption. The77 surviving spouse of the person who has been granted the exempti on provided for in78 subsection (b) of this section shall continue to receive the ex emption provided under79 subsection (b) of this section, so long as that surviving spouse continues to occupy the home80 as a residence and homestead.81 (e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect82 any state ad valorem taxes, county ad valorem taxes for county purposes, or county or83 independent school district ad valorem taxes for educational purposes.84 (2) Except as otherwise provided in paragraph (3) of this subs ection, the homestead85 exemption granted by subsection (b) of this section shall be in addition to and not in lieu86 of any other homestead exemption applicable to ad valorem taxes.87 (3) The homestead exemption granted by subsection (b) of this section shall not be88 applied in addition to any other base year value homestead exemption provided by law89 with respect to the City of Social Circle. In any such event, the governing authority of90 the City of Social Circle or its designee shall apply only the base year value homestead91 exemption that is larger or more beneficial for the taxpayer wi th respect to the City of92 Social Circle.93 (f) For the purposes of this section, the commissioner of reve nue shall promulgate a94 standardized method for determining annual inflationary index rates which reflect the effects95 H. B. 743 - 4 - 25 LC 62 0178S/AP of inflation and deflation on the cost of living for residents of this state for a given calendar96 year. Such method may utilize the Consumer Price Index as reported by the Bureau of Labor97 Statistics of the United States Department of Labor or any other similar index established by98 the federal government if the commissioner of revenue determines that such federal index99 fairly reflects the effects of inflation and deflation on residents of this state.100 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years101 beginning on or after January 1, 2026.102 SECTION 2.103 In accordance with the requirements of Article VII, Section II of the Constitution of the State104 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority105 vote in both the Senate and the House of Representatives.106 SECTION 3.107 The municipal election superintendent of the City of Social Circle shall call and conduct an108 election as provided in this section for the purpose of submitting this Act to the electors of109 the City of Social Circle for approval or rejection. The election superintendent shall conduct110 that election on the Tuesday following the first Monday in November of 2025 and shall issue111 the call and conduct that election as provided by general law. The election superintendent112 shall cause the date and purpose of the election to be published once a week for two weeks113 immediately preceding the date thereof in the official organ of Walton County. The ballot114 shall have written or printed thereon the words:115 H. B. 743 - 5 - 25 LC 62 0178S/AP "( ) YES116 117 ( ) NO118 119 120 121 Shall the Act be approved which provides a homestead exemption from City of Social Circle ad valorem taxes for municipal purposes in an amount equal to the amount by which the current year assessed value of a hom estead exceeds the adjusted base year assessed value, including any fi nal determination of value on appeal pursuant to Code Section 48-5-311 of the O.C.G.A., as amended, of such homestead?" All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring122 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on123 such question are for approval of the Act, Section 1 of this Act shall become of full force and124 effect on January 1, 2026. If the Act is not so approved or if the election is not conducted125 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall126 be automatically repealed on the 365th calendar day following the election date provided for127 in this section. The expense of such election shall be borne by the City of Social Circle. It128 shall be the election superintendent's duty to certify the resu lt thereof to the Secretary of129 State. The provisions of this section shall be mandatory upon the election superintendent and130 are not intended as directory. If the election superintendent fails or refuses to comply with131 this section, any elector of the City of Social Circle may appl y for a writ of mandamus to132 compel the election superintendent to perform his or her duties under this section. If the133 court finds that the election superintendent has not complied with this section, the court shall134 fashion appropriate relief requiring the election superintenden t to call and conduct such135 election on the date required by this section or on the next da te authorized for special136 elections provided for in Code Section 21-2-540 of the O.C.G.A.137 SECTION 4.138 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon139 its approval by the Governor or upon its becoming law without such approval.140 H. B. 743 - 6 - 25 LC 62 0178S/AP SECTION 5.141 All laws and parts of laws in conflict with this Act are repealed.142 H. B. 743 - 7 -