HB850: HB850 Augusta-Richmond County; ad valorem tax; provide homestead exemption

25 LC 61 0249/AP House Bill 850 (AS PASSED HOUSE AND SENATE) By: Representatives Newton of the 127th, Prince of the 132nd, Howard of the 129th, Heffner of the 130th, and Myles of the 126th A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from Augusta-Richmond County ad valorem taxes for1 consolidated government purposes in an amount equal to the amount by which the current2 year assessed value of a homestead exceeds the adjusted base ye ar assessed value of such3 homestead; to provide for definitions; to specify the terms and conditions of the exemption4 and the procedures relating thereto; to provide for applicability; to provide for compliance5 with constitutional requirements; to provide for a referendum, effective dates, automatic6 repeal, mandatory execution of election, and judicial remedies regarding failure to comply;7 to 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, f or, or on behalf of the12 Augusta-Richmond County for consolidated government purposes, e xcept for any ad13 valorem taxes levied to 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. 850 - 1 - 25 LC 61 0249/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 3.2 percent; and20 (C) The value of any substantial property change, provided that 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 person25 on such person's homestead for the 2026 taxable year, the asses sed value for taxable26 year 2025, 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 the 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; provided, however, that if the property is assessed pursuant34 to Code Section 48-5-7.4 or 48-5-7.7 of the O.C.G.A., only the primary residence and the35 portion of the underlying property that is excluded from the benefit of such assessment36 pursuant to subparagraph (a)(1)(B) of Code Section 48-5-7.4 of the O.C.G.A. or37 subparagraph (b)(2)(B) of Code Section 48-5-7.7 of the O.C.G.A shall be included.38 (5) "Previous adjusted base year assessed value" means:39 (A) With respect to the year for which the exemption under this section is first granted40 to a person on such person's homestead, the base year assessed value; or41 (B) In all other cases, the adjusted base year assessed value of the homestead as42 calculated in the taxable year immediately preceding the curren t year, including any43 H. B. 850 - 2 - 25 LC 61 0249/AP final determination of value on appeal pursuant to Code Section 48-5-311 of the44 O.C.G.A.45 (6) "Substantial property change" means any increase or decrease in the assessed value46 of a homestead derived from ad ditions or improvements to, or th e removal of real47 property from, the homestead which occurred after the year in w hich the base year48 assessed value is determined for the homestead. The assessed v alue of the substantial49 property changes shall be established following any final deter mination of value on50 appeal pursuant to Code Section 48-5-311 of the O.C.G.A.51 (b)(1) Subject to the limitations provided in this section, ea ch resident of52 Augusta-Richmond County is granted an exemption on that person's homestead from ad53 valorem taxes in an amount equal to the amount by which the current year assessed value54 of that homestead, including any final determination of value on appeal pursuant to Code55 Section 48-5-311 of the O.C.G.A., exceeds its previous adjusted base year assessed value.56 (2) Except as provided for in subsection (c) of this section, no exemption provided for57 in this subsection shall transfer to any subsequent owner of the property, and the assessed58 value of the property shall be as provided by law.59 (c) No person shall receive the exemption granted by subsection (b) of this section unless60 such person or person's agent files an application with the tax commissioner of61 Augusta-Richmond County as will enable the tax commissioner to make a determination62 regarding the initial and continuing eligibility of such person for such exemption; provided,63 however, that any person who had previously applied for a homes tead exemption, was64 allowed such homestead exemption for the 2025 tax year, and rem ains eligible for a65 homestead exemption for that same homestead property in the 202 6 tax year shall be66 automatically allowed the exemption granted under subsection (b ) of this section for that67 homestead without further application. The tax commissioner sh all provide application68 forms for this purpose.69 H. B. 850 - 3 - 25 LC 61 0249/AP (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of70 the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year71 so long as the person granted the homestead exemption under subsection (b) of this section72 occupies the residence as a homestead. After such person has filed the proper application as73 provided in subsection (c) of this section, it shall not be nec essary to make application74 thereafter for any year, and such exemption shall continue to be allowed to such person. It75 shall be the duty of any such person granted the homestead exemption under subsection (b)76 of this section to notify the tax commissioner of Augusta-Richmond County in the event that77 such person for any reason becomes ineligible for such exemptio n. The unremarried78 surviving spouse of the person who has been granted the exempti on provided for in79 subsection (b) of this section shall continue to receive the ex emption provided under80 subsection (b) of this section, so long as that unremarried sur viving spouse continues to81 occupy the home as a residence and homestead.82 (e)(1) The exemption granted by subsection (b) of this section shall not apply to or affect83 any state ad valorem taxes, county or independent school distri ct ad valorem taxes for84 educational purposes, or municipal ad valorem taxes for municipal purposes.85 (2) Except as otherwise provided in paragraph (3) of this subs ection, the homestead86 exemption granted by subsection (b) of this section shall be in addition to and not in lieu87 of any other homestead exemption applicable to ad valorem taxes.88 (3) The homestead exemption granted by subsection (b) of this section shall not be89 applied in addition to any other base year value homestead exemption provided by law90 with respect to Augusta-Richmond County. In any such event, the Augusta-Richmond91 County tax commissioner shall apply only the base year value homestead exemption that92 is larger or more beneficial for the taxpayer with respect to Augusta-Richmond County.93 (f) The exemption granted by subsection (b) of this section shall apply to all taxable years94 beginning on or after January 1, 2026.95 H. B. 850 - 4 - 25 LC 61 0249/AP SECTION 2.96 In accordance with the requirements of Article VII, Section II of the Constitution of the State97 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority98 vote in both the Senate and the House of Representatives.99 SECTION 3.100 The election superintendent of Augusta-Richmond County shall call and conduct an election101 as provided in this section for the purpose of submitting this Act to the electors of102 Augusta-Richmond County for approval or rejection. The electio n superintendent shall103 conduct that election on the Tuesday following the first Monday in November, 2025, and104 shall issue the call and conduct that election as provided by g eneral law. The election105 superintendent shall cause the date and purpose of the election to be published once a week106 for two weeks immediately preceding the date thereof in the off icial organ of107 Augusta-Richmond County. The ballot shall have written or printed thereon the words:108 "( ) YES109 110 ( ) NO111 112 113 114 Shall the Act be approved which provides a homestead exemption from Augusta-Richmond County ad valorem taxes for consolidated government purposes in an amount equal to the amount by which the current year assessed value of a homestead exceeds the adjusted base year as sessed value, including any final determination of value on appeal pur suant 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 desiring115 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on116 such question are for approval of the Act, Section 1 of this Act shall become of full force and117 effect on January 1, 2026. If the Act is not so approved or if the election is not conducted118 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall119 be automatically repealed on the 365th calendar day following the election date provided for120 in this section. The expense of such election shall be borne by Augusta-Richmond County. 121 H. B. 850 - 5 - 25 LC 61 0249/AP It shall be the election superintendent's duty to certify the result thereof to the Secretary of122 State. The provisions of this section shall be mandatory upon the election superintendent and123 are not intended as directory. If the election superintendent fails or refuses to comply with124 this section, any elector of Augusta-Richmond County may apply for a writ of mandamus125 to compel the election superintendent to perform his or her duties under this section. If the126 court finds that the election superintendent has not complied with this section, the court shall127 fashion appropriate relief requiring the election superintenden t to call and conduct such128 election on the date required by this section or on the next da te authorized for special129 elections provided for in Code Section 21-2-540 of the O.C.G.A.130 SECTION 4.131 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon132 its approval by the Governor or upon its becoming law without such approval.133 SECTION 5.134 All laws and parts of laws in conflict with this Act are repealed.135 H. B. 850 - 6 -