HB744: HB744 Walnut Grove, City of; ad valorem tax; provide homestead exemption

25 LC 62 0180S/AP House Bill 744 (AS PASSED HOUSE AND SENATE) By: Representatives Williamson of the 112th, Martinez of the 111th, and Fleming of the 114th A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from City of Walnut Grove ad v alorem taxes for1 municipal purposes in an amount equal to the amount by which th e current year assessed2 value of a homestead exceeds the adjusted base year assessed value of such homestead; to3 provide for definitions; to specify the terms and conditions of the exemption and the4 procedures relating thereto; to provide for applicability; to p rovide for compliance with5 constitutional requirements; to provide for a referendum, effective dates, automatic repeal,6 mandatory execution of election, and judicial remedies regardin g failure to comply; to7 provide for 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, for, or on behalf of the City12 of Walnut Grove for municipal purposes, except for any ad valor em taxes levied to pay13 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. 744 - 1 - 25 LC 62 0180S/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, provided that such amount18 shall not exceed the total of the previous adjusted base year a ssessed value of the19 homestead multiplied by the inflation rate for the prior year plus 25 basis points; and20 (C) The value of any substantial property change, provided tha t no such value added21 improvements to the homestead shall be duplicated as to the sam e addition or22 improvement.23 (3) "Base year assessed value" means:24 (A) With respect to an exemption under this section which is first granted to a person on25 such person's homestead for the 2026 taxable year, the assessed v a l u e f o r t a x a b l e26 year 2024, including any final determination of value on appeal pursuant to Code27 Section 48-5-311 of the O.C.G.A., of the homestead; or28 (B) In all other cases, the assessed value, including any final determination of value on29 appeal pursuant to Code Section 48-5-311 of the O.C.G.A., of th e homestead from the30 taxable year immediately preceding the taxable year in which the exemption under this31 section is first granted to the applicant.32 (4) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of33 the O.C.G.A., as amended.34 (5) "Inflation rate" means the annual inflationary index rate as determined for a given year35 by the commissioner of revenue in accordance with subsection (f) of this section.36 (6) "Previous adjusted base year assessed value" means:37 (A) With respect to the year for which the exemption under this section is first granted38 to a person on such person's homestead, the base year assessed value; or39 (B) In all other cases, the adjusted base year assessed value of the homestead as40 calculated in the taxable year immediately preceding the current year, including any final41 determination of value on appeal pursuant to Code Section 48-5-311 of the O.C.G.A.42 H. B. 744 - 2 - 25 LC 62 0180S/AP (7) "Substantial property change" means any increase or decrease in the assessed value of43 a homestead derived from additions or improvements to, or the r emoval of real property44 from, the homestead which occurred after the year in which the base year assessed value45 is determined for the homestead. The assessed value of the substantial property changes46 shall be established following any final determination of value on appeal pursuant to Code47 Section 48-5-311 of the O.C.G.A.48 (b)(1) Subject to the limitations provided in this section, ea ch resident of the City of49 Walnut Grove is granted an exemption on that person's homestead from ad valorem taxes50 in an amount equal to the amount by which the current year asse ssed value of that51 homestead, including any final determination of value on appeal pursuant to Code Section52 48-5-311, exceeds its previous adjusted base year assessed value.53 (2) Except as provided for in subsection (c) of this section, no exemption provided for in54 this subsection shall transfer to any subsequent owner of the p roperty, and the assessed55 value of the property shall be as provided by law.56 (c) No person shall receive the exemption granted by subsection (b) of this section unless57 such person or person's agent files an application with the governing authority of the City of58 Walnut Grove, or its designee as will enable the governing authority of the City of Walnut59 Grove, or its designee to make a determination regarding the initial and continuing eligibility60 of such person for such exemption; provided, however, that any person who had previously61 applied for a homestead exemption, was allowed such homestead exemption for the 2025 tax62 year, and remains eligible for a homestead exemption for that same homestead property in63 the 2026 tax year shall be automatically allowed the exemption granted under subsection (b)64 of this section for that homestead without further application. The governing authority of the65 City of Walnut Grove, or its designee shall provide application forms for this purpose.66 (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of67 the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year68 so long as the person granted the homestead exemption under subsection (b) of this section69 H. B. 744 - 3 - 25 LC 62 0180S/AP occupies the residence as a homestead. After such person has filed the proper application as70 provided in subsection (c) of this section, it shall not be nec essary to make application71 thereafter for any year, and such exemption shall continue to be allowed to such person. It72 shall be the duty of any such person granted the homestead exemption under subsection (b)73 of this section to notify the governing authority of the City of Walnut Grove, or its designee74 in the event that such person for any reason becomes ineligible for such exemption. The75 surviving spouse of the person who has been granted the exempti on provided for in76 subsection (b) of this section shall continue to receive the ex emption provided under77 subsection (b) of this section, so long as that surviving spouse continues to occupy the home78 as a residence and homestead.79 (e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect80 any state ad valorem taxes, county ad valorem taxes for county purposes, or county or81 independent school district ad valorem taxes for educational purposes.82 (2) Except as otherwise provided in paragraph (3) of this subs ection, the homestead83 exemption granted by subsection (b) of this section shall be in addition to and not in lieu84 of any other homestead exemption applicable to ad valorem taxes.85 (3) The homestead exemption granted by subsection (b) of this section shall not be applied86 in addition to any other base year value homestead exemption provided by law with respect87 to the City of Walnut Grove. In any such event, the governing authority of the City of88 Walnut Grove, or its designee shall apply only the base year value homestead exemption89 that is larger or more beneficial for the taxpayer with respect to the City of Walnut Grove.90 (f) For the purposes of this section, the commissioner of reve nue shall promulgate a91 standardized method for determining annual inflationary index rates which reflect the effects92 of inflation and deflation on the cost of living for residents of this state for a given calendar93 year. Such method may utilize the Consumer Price Index as reported by the Bureau of Labor94 Statistics of the United States Department of Labor or any other similar index established by95 H. B. 744 - 4 - 25 LC 62 0180S/AP the federal government if the commissioner of revenue determines that such federal index96 fairly reflects the effects of inflation and deflation on residents of this state.97 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years98 beginning on or after January 1, 2026.99 SECTION 2.100 In accordance with the requirements of Article VII, Section II of the Constitution of the State101 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority102 vote in both the Senate and the House of Representatives.103 SECTION 3.104 The municipal election superintendent of the City of Walnut Grove shall call and conduct an105 election as provided in this section for the purpose of submitting this Act to the electors of106 the City of Walnut Grove for approval or rejection. The electi on superintendent shall107 conduct that election on the Tuesday following the first Monday in November of 2025 and108 shall issue the call and conduct that election as provided by g eneral law. The election109 superintendent shall cause the date and purpose of the election to be published once a week110 for two weeks immediately preceding the date thereof in the official organ of Walton County. 111 The ballot shall have written or printed thereon the words:112 "( ) YES113 114 ( ) NO115 116 117 118 Shall the Act be approved which provides a homestead exemption from City of Walnut Grove ad valorem taxes for municipal purposes in an a mount equal to the amount by which the current year assessed value of a homestead exceeds the adjusted base year assessed value, includ ing any final 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 desiring119 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on120 H. B. 744 - 5 - 25 LC 62 0180S/AP such question are for approval of the Act, Section 1 of this Act shall become of full force and121 effect on January 1, 2026. If the Act is not so approved or if the election is not conducted122 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall123 be automatically repealed on the 365th calendar day following the election date provided for124 in this section. The expense of such election shall be borne b y the City of Walnut Grove. 125 It shall be the election superintendent's duty to certify the result thereof to the Secretary of126 State. The provisions of this section shall be mandatory upon the election superintendent and127 are not intended as directory. If the election superintendent fails or refuses to comply with128 this section, any elector of the City of Walnut Grove may apply for a writ of mandamus to129 compel the election superintendent to perform his or her duties under this section. If the130 court finds that the election superintendent has not complied with this section, the court shall131 fashion appropriate relief requiring the election superintenden t to call and conduct such132 election on the date required by this section or on the next da te authorized for special133 elections provided for in Code Section 21-2-540 of the O.C.G.A.134 SECTION 4.135 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon136 its approval by the Governor or upon its becoming law without such approval.137 SECTION 5.138 All laws and parts of laws in conflict with this Act are repealed.139 H. B. 744 - 6 -