House Bill 1017
By: Representatives Kendrick of the 95th, Evans of the 57th, and Clark of the 108th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 3 of Title 44 and Chapter 5 of Title 48 of the Official Code of Georgia
Annotated, relating to regulation of specialized land transactions and ad valorem taxation of
property, respectively, so as to prohibit certain business enterprises from purchasing or
acquiring an interest in a single-family residential property; to provide for construction; to
provide for the assessment of real property purchased or acquired by certain business
enterprises at 100 percent of its fair market value; to provide for penalties; to provide for
certification of ownership; to provide for forms and applications; to provide for definitions;
to provide for effective dates and automatic repeal; to provide for related matters; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to regulation of
specialized land transactions, is amended by adding a new article to read as follows:
<ins>"ARTICLE 8
44-3-260.
As used in this article, the term:
(1) 'Affiliate' means any entity that directly or indirectly owns or controls, is owned or
controlled by, or is under any other common ownership or control with a business
enterprise.
(2) 'Business enterprise' means any corporation, association, partnership, limited liability
company, limited partnership, trust, issuer, or other private legal entity organized under
the laws of this state, the United States, the District of Columbia, or any other state,
territory, or dependency of the United States or under the laws of a foreign country that
holds an interest in at least 100 single-family residential properties within this state which
are used primarily for the purpose of generating rental income. Such term shall not
include an organization which maintains nonprofit status under Section 501(c)(3) of the
Internal Revenue Code of 1986 and tax exempt status under Code Section 48-7-25.
(3) 'Single-family residential property' means any parcel of real property located within
this state which includes as its principal substantial improvement a residential dwelling
designed exclusively for use and occupancy by a single family, including, but not be
limited to, a:
(A) Detached residential structure containing from one to three individual dwelling
units, each designed exclusively for use and occupancy by one family;
(B) Townhouse;
(C) Condominium, as such term is defined in Code Section 44-3-71;
(D) Manufactured home, as such term is defined in Code Section 8-2-131; and
(E) Mobile home, as such term is defined in Code Section 8-2-131.
(4) 'Townhouse' means an individual residential dwelling unit within a larger structure
that contains two or more attached residential dwelling units constructed in a row where
</ins>
<ins>each residential dwelling unit is designed exclusively for use and occupation by one
family, is located on an individual lot or parcel, and shares at least one common wall with
an adjacent unit.
44-3-261.
(a) On and after January 1, 2027, no business enterprise shall purchase or otherwise
acquire, directly or indirectly, including, but not limited to, through one or more affiliates,
an interest in a single-family residential property.
(b)(1) For purposes of this Code section, an interest in a single-family residential
property shall not include a deed to secure debt, security deed, mortgage, security
interest, deed of trust, or other lien upon a single-family residential property that secures
a debt or other obligation, and nothing in this Code section shall be construed as
prohibiting a business enterprise from owning or acquiring a deed to secure debt, security
deed, mortgage, security interest, deed of trust, or other lien upon a single-family
residential property located in this state.
(2) An interest in a single-family residential property acquired pursuant to the
enforcement of a deed to secure debt, security deed, mortgage, security interest, deed of
trust, or other lien described in paragraph (1) of this subsection by a business enterprise
that would otherwise violate subsection (a) of this Code section shall not constitute such
a violation, provided that such interest in the single-family residential property is sold or
otherwise transferred to another person by the business enterprise within three years from
the date such interest is acquired.
</ins> SECTION 2.
Chapter 5 of Title 48, relating to ad valorem taxation of property, is amended by revising
Code Section 48-5-3, relating to taxable property, as follows:
"48-5-3.
All real property including, but not limited to, leaseholds, interests less than fee, and all
personal property shall be liable to taxation and shall be taxed, except as otherwise
provided by law. Liability of property for taxation shall not be affected by the individual
or corporate character of the property owner or by the resident or nonresident status of the
property owner, <ins>except as otherwise provided by law."
</ins> SECTION 3.
Said chapter is further amended in Code Section 48-5-7, relating to assessment of tangible
property, by adding a new subsection to read as follows:
<ins>"(c.7) Tangible real property which qualifies as business enterprise property pursuant to
the provisions of Code Section 48-5-7.8 shall be assessed at 100 percent of its fair market
value and shall be taxed on a levy made by each respective taxing jurisdiction according
to 100 percent of the property's fair market value."
</ins> SECTION 4.
Said chapter is further amended by adding a new Code section to read as follows:
<ins>"48-5-7.8.
(a) As used in this article, the term 'business enterprise property' means any real property
owned wholly or partially by a business enterprise, as such term is defined in Code Section
44-3-260.
(b)(1) Except as otherwise provided in paragraph (2) of this subsection, each property
owner of business enterprise property shall submit, by January 1, 2027, a certification of
ownership of such property to the county board of tax assessors and shall include with
such certification a copy of the recorded deed for the property and any other information
required by the county board of tax assessors. The county board of tax assessors shall
determine if the provisions of this Code section are applicable to such property and, upon
</ins>
<ins>such determination, such board shall impose an assessment on such property as provided
for in subsection (c.7) of Code Section 48-5-7. The board shall make a determination
within 30 days after receiving any certification and shall notify the property owner in the
same manner that notices of assessment are given pursuant to Code Section 48-5-306.
(2) Each property owner of business enterprise property purchased or acquired on and
after January 1, 2027, shall submit, within 90 days of the execution of a deed transferring
title to such business enterprise property, a certification of ownership of such property to
the county board of tax assessors and shall include with such certification a copy of the
recorded deed for the property and any other information required by the county board
of tax assessors. The county board of tax assessors shall determine if the provisions of
this Code section are applicable to such property and, upon such determination, such
board shall impose an assessment on such property as provided for in subsection (c.7) of
Code Section 48-5-7. The board shall make a determination within 30 days after
receiving any certification and shall notify the property owner in the same manner that
notices of assessment are given pursuant to Code Section 48-5-306.
(c)(1) A penalty shall be imposed for any failure to comply with the certification
requirement set forth in subsection (b) of this Code section. The penalty shall be twice
the difference between the total amount of the tax paid under this chapter and the total
amount of taxes which would otherwise have been paid pursuant to the assessment
provided for in subsection (c.7) of Code Section 48-5-7. Any such penalty shall bear
interest at the rate specified in Code Section 48-2-40 from January 1, 2027, for any
property purchased or acquired before January 1, 2027, and from 90 days after the date
of execution of a deed transferring title to such business enterprise property, for any
property purchased or acquired after January 1, 2027.
(2) Penalties and interest imposed under this Code section shall constitute a lien against
the property and shall be collected as other unpaid ad valorem taxes are collected. Such
penalties and interest shall be distributed pro rata to each taxing jurisdiction wherein the
</ins>
<ins>assessment has been granted based upon the total amount by which such assessment has
reduced taxes for each such taxing jurisdiction on the property in question as provided
in this Code section.
(d)(1) Property which has been classified by the county board of tax assessors as
business enterprise property shall be immediately subject to the assessment provided for
in subsection (c.7) of Code Section 48-5-7; provided, however, that, for the purposes of
determining the years of applicability for such assessment, the tax year following the year
in which the certification required under subsection (b) of this Code section was due shall
be considered and counted as the first year of applicability.
(2) Property which is subject to the assessment provided for in subsection (c.7) of Code
Section 48-5-7 shall be separately classified from all other property on the tax digest, and
such separate classification shall be such as to enable any person examining the tax digest
to readily ascertain that the property is subject to such assessment.
(e) At such time as property ceases to qualify as business enterprise property, the property
owner shall file an application for release of the assessment provided for in subsection (c.7)
of Code Section 48-5-7 with the county board of tax assessors and shall include with such
application any other information required by such board. The board shall approve the
release upon verification that all taxes and penalties with respect to the property have been
satisfied. After the application for release has been approved by the board of tax assessors,
such board shall file the release in the office of the clerk of the superior court in the county
in which the original covenant was filed. Such clerk shall file and index such release in the
real property records maintained in the clerk's office. No fee shall be paid to such clerk for
recording such release.
(f) The commissioner shall by regulation provide uniform certification and release forms
to be used in certifying ownership of business enterprise property for the assessment
provided for in subsection (c.7) of Code Section 48-5-7 and applying for release of such
assessment. Such certification form shall include an oath or affirmation by the taxpayer
</ins>
<ins>that he or she is in compliance with subsection (b) of this Code section and has not failed
to submit a certification of ownership of business enterprise property in the same or another
county with respect to any property."
</ins> SECTION 5.
(a) Except as otherwise provided in subsection (b) of this section, this Act shall become
effective upon its approval by the Governor or upon its becoming law without such approval,
and shall apply to any conveyance of an interest in residential property made on or after such
date.
(b) The provisions of Sections 3 and 4 of this Act shall become effective on January 1, 2027,
only if an amendment to the Constitution is ratified by the electors at the November, 2026,
state-wide general election authorizing the General Assembly to define and establish a
separate class of property that includes only tangible real property qualifying as business
enterprise property and to establish a program by which certain properties within such class
may be assessed for taxes at different rates or valuations. If such an amendment is not so
ratified, Sections 3 and 4 of this Act shall not become effective and shall stand repealed on
January 1, 2027.
SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.