HB 1116: Homeownership Opportunity and Market Equalization Act of 2026; enact

The Senate Committee on Finance offered the following

substitute to HB 1116:

A BILL TO BE ENTITLED

AN ACT

To amend Titles 20, 21, 36, and 48 of the Official Code of Georgia Annotated, relating to education, elections, local government, and revenue and taxation, respectively, so as to provide for property tax reform; to establish a Local Homestead Option Sales Tax (LHOST); to provide for imposition, collection, and distribution of proceeds; to provide for definitions; to exclude amounts attributable to certain exemptions from ad valorem taxation from the equalized adjusted school property tax digest for the purpose of calculating the local five mill share and equalization grants; to increase the cap on reserve funds for local school systems; to require the proposed annual operating budget resolution of a local board of education to be approved in a referendum election if such resolution would increase certain revenues raised by the local board of education by a certain amount; to provide that certain proposed increases in revenue collections by local governments must be approved by the voters of such local government; to limit the dates of a special election presenting a question by a local government to increase revenues; to require the production of certain information upon request of a tax assessor for the assessment of income-producing property; to revise provisions relating to certification of assessed taxable value of property and method of computation, resolution or ordinance required for millage rate, and advertisement of intent to increase property tax; to require municipal and school officials to submit certain information relating to ad valorem taxes; to prohibit the retroactive assessment of additional ad valorem taxes to a taxpayer due to an improperly or mistakenly applied homestead exemption at no fault of the taxpayer; to make conforming changes; to provide for related matters; to provide for short titles; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I

SECTION 1-1.

This Act shall be known and may be cited as the "Homeownership Opportunity and Market Equalization Act of 2026."

PART II

SECTION 2-1.

Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use tax, is amended in Code Section 48-8-6, relating to prohibition of political subdivisions from imposing various taxes, ceiling on local sales and use taxes, and taxation of mobile telecommunications, by revising subparagraph (a)(1)(C) as follows: "(C) Up to 1 percent in aggregate of any sales and use taxes authorized under Code Section 48-8-96, Code Section 48-8-97, Article 2B of this chapter, Article 2C of this chapter, Part 3 of Article 3 of this chapter, and Article 4 of this chapter."

SECTION 2-2.

Said chapter is further amended by adding a new article to read as follows: "ARTICLE 2C

48-8-109.50.

(a) This article shall be known and may be cited as the 'Local Homestead Option Sales Tax' (LHOST).

(b) As used in this article, the term:

(1) 'Eligible local government' means any county, consolidated government, or municipality for which a homestead exemption is in effect by local Act in accordance with Code Section 48-8-109.52 and whose governing authority levied and derived revenue from an ad valorem tax on homestead property within the special district at a net millage rate of greater than zero in the tax year preceding the effective date of such local Act. Such term excludes any local government that levies the tax authorized under Article 4 of this chapter.

(2) 'Homestead property' means homestead as defined and qualified in Code Section 48-5-40, with the additional limitation that such term shall include:

(A) Only the primary residence and not more than five contiguous acres of land immediately surrounding such residence; or

(B) If the property is assessed pursuant to Code Section 48-5-7.4 or 48-5-7.7, only the primary residence and the portion of the underlying property that is excluded from the benefit of such assessment pursuant to subparagraph (a)(1)(B) of Code Section 48-5-7.4 or subparagraph (b)(2)(B) of Code Section 48-5-7.7.

(3) 'Local Homestead Option Sales Tax' or 'LHOST' means any special sales and use tax levied under this article to fund homestead exemptions granted by local Act for eligible local governments in accordance with this article.

48-8-109.51.

(a) Pursuant to the authority granted by Article IX, Section II, Paragraph VI of the Constitution of this state, there are created within this state 159 special districts. The geographical boundary of each county shall correspond with and shall be conterminous with the geographical boundary of one of the 159 special districts.

(b) The territory of each special district shall include all of the territory within the county, including all municipalities, to the extent the municipal boundaries lie within the geographical boundaries of the county.

(c) The territory of each special district shall exclude any territory within which the tax provided for in Article 4 of this chapter is levied.

48-8-109.52.

(a) Subject to the requirements of this article and the sales tax rate limitations imposed by Code Section 48-8-6, beginning January 1, 2028, there shall be imposed within any special district a special sales and use tax to be levied and collected to fund homestead exemptions from ad valorem taxes imposed by eligible local governments on homestead property within the special district. Any such tax shall be known as an 'LHOST.'

(b) An LHOST shall begin to be levied and collected in a given special district on the first day of the next succeeding calendar quarter which begins more than 50 days after certification of the result of the election approving the local Act granting a homestead exemption in accordance with this article and applicable to the county or consolidated government that is conterminous with the special district.

(c) Each local Act enacted pursuant to this article shall:

(1) Be adopted and approved by local referendum in accordance with Article VII, Section II, Paragraph II(a)(2) of the Constitution;

(2) Incorporate, by reference to this article, the terms and conditions specified under this article;

(3) Exempt homestead property within the special district from all ad valorem taxes imposed by the governing authority of the local government for all purposes in an amount to be determined annually based upon the net proceeds of the sales and use tax collected under this article within the special district;

(4) Provide that such homestead exemption shall be allowed in addition to and not in lieu of any other homestead exemption applicable to the homestead property;

(5) Provide that such homestead exemption shall become effective on January 1 of the year subsequent to the approval of the local Act in the requisite referendum;

(6) Include only those portions of real property located within the applicable special district established pursuant to this article; and

(7) Provide that the homestead exemption shall not apply to or affect any ad valorem taxes other than those levied by the governing authority of the local government to which the local Act applies.

(d) Notwithstanding any contrary provision of Article 2B of this chapter or any resolution, ordinance, intergovernmental agreement, or referendum related thereto, a tax in effect within a special district conterminous with a county pursuant to Article 2B of this chapter shall terminate at the last moment of the day prior to the commencement of the levy of an LHOST pursuant to this article in the special district conterminous with such county.

48-8-109.53.

(a) When the imposition of a local sales and use tax is authorized according to the procedures provided in this article within a special district, the county whose geographical boundary is conterminous with that of the special district shall levy a local sales and use tax at the rate of 1 percent.

(b) Except as otherwise provided in this article, the LHOST shall correspond to the tax imposed by Article 1 of this chapter, and no item or transaction which is not subject to taxation under Article 1 of this chapter shall be subject to a tax imposed under this article; provided, however, that a tax imposed under this article shall apply to sales of motor fuels as prepaid local tax as defined in Code Section 48-8-2 and shall be applicable to the sale of food and food ingredients and alcoholic beverages as provided for in Code Section 48-8-3. The levy of such tax upon sales of motor fuels as defined in Code Section 48-9-2 shall only be imposed on the retail sales price of the motor fuel which is not more than $3.00 per gallon.

(c) With respect to services that are regularly billed on a monthly basis, an LHOST shall apply to the first regular billing period coinciding with or following the effective date of the LHOST.

48-8-109.54.

(a) The tax shall cease to be imposed on the final day of the maximum period of time, which shall not exceed ten years, as specified in the local Act granting the homestead exemption for the county or consolidated government.

(b) The tax may be renewed for any special district in the same manner and under the same conditions as for an initial imposition of the tax. Such newly authorized tax shall not be imposed until the expiration of the tax then in effect.

48-8-109.55.

(a) Each LHOST shall be exclusively administered and collected by the commissioner for the use and benefit of the special district imposing the tax. Such administration and collection shall be accomplished in the same manner and subject to the same applicable provisions, procedures, and penalties provided in Article 1 of this chapter except that the LHOST shall be applicable to sales of motor fuels as prepaid local tax as defined in Code Section 48-8-2; provided, however, that all moneys collected from each taxpayer by the commissioner shall be applied first to such taxpayer's liability for taxes owed the state; and provided, further, that the commissioner may rely upon a representation by or on behalf of the county government or the Secretary of State that such a tax has been validly imposed, and the commissioner and the commissioner's agents shall not be liable to any person for collecting any such tax which was not validly imposed.

(b) Dealers, as defined in Code Section 48-8-2, shall be allowed a percentage of the amount of the tax due and accounted for and shall be reimbursed in the form of a deduction in submitting, reporting, and paying the amount due if such amount is not delinquent at the time of payment. Such dealer deduction shall be at the rate and subject to the requirements specified under subsections (b) through (f) of Code Section 48-8-50.

(c) Each sales and use tax return remitting sales and use taxes collected under this article shall separately identify the location of each retail establishment at which any of the sales and use taxes remitted were collected and shall specify the amount of sales and the amount of taxes collected at each establishment for the period covered by the return to facilitate the determination by the commissioner that all sales and use taxes imposed by this article are collected and distributed according to situs of sale.

48-8-109.56.

(a) The proceeds of the tax collected by the commissioner under this article shall be disbursed as soon as practicable after collection directly to the county whose boundary is conterminous with the boundary of the special district to be held in trust for the special district in an interest-bearing account and distributed thereafter by such county among the eligible local governments within the special district in accordance with the provisions of Code Section 48-8-109.57 and Code Section 48-8-109.58.

(b) No funds other than the annual LHOST proceeds, and interest accrued thereon, shall be placed in such accounts. The funds within such accounts shall not be commingled with any other funds of the county.

48-8-109.57.

(a) Following the adoption of millage rates each year by all eligible local governments and prior to the printing of ad valorem tax bills, the county tax commissioner shall calculate the amount of the assessed value to be exempted for homestead property within the special district for which any local Acts are in effect under this article. The amount of the assessed value of each homestead property that shall be exempted shall be calculated each tax year based on the total value of all homestead property of the special district, the net millage rates adopted by each eligible local government for such tax year, and the net proceeds of the LHOST which are available in the trust account as of August 1 of such year.

(b) For an LHOST imposed within a special district which has a single eligible local government, the county tax commissioner shall calculate the maximum amount of assessed value of homestead property which may be exempted from all ad valorem taxes imposed by such single eligible local government on homestead property within the special district, which calculation shall be based upon the proceeds of the LHOST available in the trust account as of August 1 of such year, the total assessed value of all homestead property in the special district, and the net millage rates imposed by such single eligible local government on such homestead property.

(c) For an LHOST imposed within a special district which has one or more eligible local governments, following the adoption of millage rates each year by all such eligible local governments, but not later than September 2, the county tax commissioner shall calculate the single, maximum amount of assessed value which may be exempted throughout the special district for all homestead property from all applicable ad valorem taxes imposed by the eligible local governments within the special district, which calculation shall be based upon the proceeds of the LHOST available in the trust account as of August 1 of such year, the total assessed value of all homestead property in the special district, and the net millage rates imposed by each such eligible local government on the homestead property within its territory within the special district.

(d) In the event that the proceeds collected for a special district exceed the amount necessary to exempt all homestead property from all ad valorem taxes imposed by all eligible local governments on homestead property within the special district, the excess proceeds shall be calculated by the county tax commissioner and applied in a manner to reduce the net millage rates in effect on property within the special district by an equal percentage across all eligible local governments in the special district for such tax year.

(e) For the purposes of subsection (c) of this Code section, in the event an eligible local government fails to submit its adopted millage rates by September 1, the county tax commissioner shall use 90 percent of such eligible local government's prior year's net millage rates applicable to homestead property in the special district in the calculation under this Code section and the county shall only disburse, under Code Section

48-8-109.58, the lesser of such amount and the net millage rate actually levied by such eligible local government in the current year.

48-8-109.58.

(a) Prior to mailing ad valorem tax bills for homestead property, the tax collector for each eligible local government shall apply the homestead exemption calculated by the county tax commissioner under subsection (b) or (c) of Code Section 48-8-109.57 to each ad valorem property tax bill for homestead property. Each ad valorem tax bill for homestead property shall reflect the taxpayer's gross ad valorem tax savings which resulted from the LHOST homestead exemption.

(b) In the event of excess proceeds described in subsection (d) of Code Section 48-8-109.57, prior to mailing ad valorem tax bills, the tax collector for each eligible local government shall apply the reduction calculated under subsection (d) of Code Section 48-8-109.57 to each ad valorem property tax bill. If applicable, each ad valorem tax bill shall reflect the taxpayer's gross ad valorem tax savings which resulted from such LHOST millage rate reduction.

(c) Within 30 days of an eligible local government's mailing of its ad valorem tax bill for a given tax year, the county shall disburse LHOST funds from the trust account to each eligible local government in the amount of ad valorem property tax revenue that the given eligible local government did not collect due to the amount of the homestead exemption determined under Code Section 48-8-109.57, applied pursuant to subsection (a) of this Code section, and as granted through the local Act required under this article and, if applicable, the county shall also disburse the amount of revenue foregone due to the reduction of the eligible local government's millage rates provided for in subsection (d) of Code Section 48-8-109.57 and subsection (b) of this Code section.

(d) No disbursement shall be made to any governing authority until such governing authority has mailed ad valorem tax bills for a given year.

48-8-109.59.

Where a local sales and use tax has been paid with respect to tangible personal property by the purchaser either in another local tax jurisdiction within the state or in a tax jurisdiction outside the state, the tax may be credited against the tax authorized to be imposed by this article upon the same property. If the amount of sales and use tax so paid is less than the amount of such tax due under this article, the purchaser shall pay an amount equal to the difference between the amount paid in the other tax jurisdiction and the amount due under this article. The commissioner may require such proof of payment in another local tax jurisdiction as the commissioner deems necessary and proper. No credit shall be granted, however, against the tax imposed under this article for tax paid in another jurisdiction if the tax paid in such other jurisdiction is used to obtain a credit against any other local sales and use tax levied in the special district or any other political subdivision within the special district; and taxes so paid in another jurisdiction shall be credited against the tax levied under Article 2 of this chapter, if applicable, then against the tax levied under Part 1 of Article 3 of this chapter, if applicable, then against the tax levied under Part 2 of Article 3 of this chapter, if applicable, and then against the tax levied under this article.

48-8-109.60.

No tax provided for in this article shall be imposed upon the sale of tangible personal property which is ordered by and delivered to the purchaser at a point outside the geographical area of the special district in which the tax is imposed regardless of the point at which title passes, if the delivery is made by the seller's vehicle, and including United States mail or common carrier or by a private or contract carrier licensed by the Federal Motor Carrier Safety Administration or the Georgia Department of Public Safety.

48-8-109.61.

No tax provided for in this article shall be imposed upon the sale or use of buildings and construction materials when the contract for which the materials are purchased or used was advertised for bid prior to the local referendum held for the local Act required to initiate the levy of the tax and the contract was entered into as a result of a bid actually submitted in response to the advertisement prior to approval of such local Act.

48-8-109.62.

The commissioner shall have the power and authority to promulgate such rules and regulations as shall be necessary for the effective and efficient administration and enforcement of the collection of the tax authorized by this article.

48-8-109.63.

Except as otherwise provided in this article or Code Section 48-8-6, the tax authorized by this article shall be in addition to any other local sales and use tax. The imposition of any other local sales and use tax within a county, municipality, or special district shall not affect the authority of a county, municipality, or special district to impose the tax authorized by this article and the imposition of the tax authorized by this article shall not affect the imposition of any otherwise authorized local sales and use tax within a county, municipality, or special district."

PART III

SECTION 3-1.

Part 4 of Article 6 of Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to financing under the "Quality Basic Education Act," is amended in Code Section 20-2-164, relating to local five mill share funds, by revising subsection (g) as follows:

"(g) For purposes of calculation under this Code section and Code Section 20-2-165, the equalized adjusted school property tax digest, adjusted by paragraph (1) of subsection (a) of this Code section, shall be reduced by the sum of the following products:

(1) The product of the number of constitutional homestead exemptions for owner occupied homes pursuant to Code Section 48-5-44 granted for that year, exclusive of those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and 48-5-52, multiplied by the amount per exemption authorized under Code Section 48-5-44; provided, further, that, in any city operating an independent school system which provides a homestead exemption through local legislation comparable to that provided in Code Section 48-5-44, the product calculated in this paragraph shall represent the number of homestead exemptions provided through the applicable local legislation multiplied by the amount per exemption authorized in Code Section 48-5-44, or by the amount per exemption authorized in the applicable local legislation, whichever is less; and provided, further, that, if the amount per exemption authorized in Code Section 48-5-44 has been changed subsequent to the year of the applicable digest, the more recently adopted amount per exemption shall be used for the product calculated in this paragraph;

(2) The product of the number of constitutional homestead exemptions for disabled veterans pursuant to Code Section 48-5-48 granted for that year, multiplied by the amount per exemption authorized under that Code section; provided, further, that, in any city operating an independent school system which provides a homestead exemption through local legislation comparable to that provided in Code Section 48-5-48, the product calculated in this paragraph shall represent the number of homestead exemptions provided through the applicable local legislation multiplied by the amount per exemption authorized in the applicable local legislation, whichever is less; and provided, further, that, if the amount per exemption authorized in Code Section 48-5-48 has been changed subsequent to the year of the applicable digest, the more recently adopted amount per exemption shall be used for the product calculated in this paragraph;

(3) The product of the estimated number of persons age 65 or older residing in the local school system during that year multiplied by 5,000;

(4) The product which results from the following calculations:

(A) Subtract the estimated state-wide percentage that persons age 65 or older is of the total population, excluding military personnel and institutional population, from the respective percentage for the local school system. If the respective percentage for the local school system is less than the state-wide percentage, a difference of zero shall be used in the calculations in this paragraph;

(B) Multiply the difference which results from subparagraph (A) of this paragraph by 1,000; and

(C) Multiply the product which results from subparagraph (B) of this paragraph by the estimated number of persons age 65 or older residing in the local school system during that year; and

(5) The product which results from the following calculations:

(A) Divide the amount reported in paragraph (4) of subsection (e) of this Code section by the average ratio of assessed value to true value used to calculate the most recent equalized adjusted school property tax digest pursuant to Code Section 48-5-274; and

(B) Multiply the quotient which results from subparagraph (A) of this paragraph by .4;

(6) The difference between the assessed value and the net taxable assessed value of all properties for which an exemption pursuant to Code Section 48-5-44.2 was granted for that year; and

(7) The difference between the assessed value and the net taxable assessed value of all properties for which an exemption authorized pursuant to a local constitutional amendment or Article VII, Section II, Paragraph II(a) of the Constitution was granted in that year."

SECTION 3-2.

Said part is further amended in paragraph (5) of subsection (a) of Code Section 20-2-167, relating to funding for direct instructional, media center, and staff development costs, computerized uniform budget and accounting system, submission of local budget to state board, and provision of certain information by local boards, by striking "15 percent" and replacing it with "25 percent".

SECTION 3-3.

Said part is further amended in Code Section 20-2-167.1, relating to public meetings on proposed annual operating budget, notice, electronic copies, and exception for certain nonprofits, by revising subsection (b) as follows:

"(b)(1) Each governing body shall hold at least two public meetings, which shall not occur within the same week, for the purpose of providing an opportunity for public input on its proposed annual operating budget before adopting any budget; provided, however, that any other public meeting or hearing held that is related to the budget as required by law shall satisfy all or a portion of such requirement. The governing body of a charter school with a state-wide attendance zone and students residing in 25 percent or more of Georgia's counties or in three or more counties which are not geographically contiguous shall conduct one such public meeting virtually and one such public meeting in the county in which its primary business office is located. The public meetings shall be advertised in a local newspaper of general circulation which shall be the same newspaper in which other legal announcements of the board of education are advertised. (2)(A)(i) On and after January 1, 2027, no proposed annual operating budget resolution that would result in an increase in the revenues raised by the local board of education from the levy and collection of ad valorem property taxes by an amount that exceeds the greater of 3 percent or the percent change in the rate of economic inflation on individual taxpayers as determined under the Consumer Price Index, as reported by the Bureau of Labor Statistics of the United States Department of Labor, of the amount of such revenues raised by the local board of education which would be raised by the local board of education from the levy of its roll-back rate calculated pursuant to Code Section 48-5-32.1 shall go into effect unless the General Assembly enacts a local Act authorizing such increase or the electors of the local school system have approved such budget resolution in a referendum election. In calculating whether a proposed annual operating budget resolution would result in such an increase in the revenues raised by the local board of education, increases in revenue attributable to economic growth and the levies of ad valorem property tax for costs incurred pursuant to a state of emergency declared by any federal, state, or local emergency management agency, official, or authority shall not be counted.

(ii) The call for and conduct of any such election shall be in the manner authorized under Code Section 21-2-540. The costs of any referendum held pursuant to this paragraph shall be paid by the local board of education. The exact ballot language shall be prescribed by the local board of education but shall contain, at a minimum, the projected amount of revenue to be generated by the budget resolution; the amount of revenue received by the local board of education in the previous fiscal year; and a statement as to whether or not such projected revenue increase is the result of an increase in the levy or rate of ad valorem property taxes. All persons desiring to vote in favor of the budget resolution shall vote 'Yes' and all persons opposed to the budget resolution shall vote 'No.' If more than one-half of the votes cast are in favor of the budget resolution, then the budget resolution shall go into effect as provided by law; otherwise, the budget resolution shall either:

(I) Not go into effect and the local board of education shall prepare a new proposed budget which is projected not to increase the revenues raised by the local board of education by an amount that exceeds the 3 percent limitation provided for in this subparagraph; or

(II) Go into effect and the local board of education shall be required to reduce its proposed budget for the subsequent year by an amount corresponding to the unapproved increase exceeding the 3 percent limitation.

(B) A local board of education shall not be required to hold either or both of the public meetings required under paragraph (1) of this subsection after a proposed annual operating budget resolution has been approved in a referendum election required under subparagraph (A) of this paragraph.

(C) Nothing in this paragraph shall be construed to require that the public meetings of a local board of education required under paragraph (1) of this subsection shall be held at any particular time either prior to or following the referendum election required under subparagraph (A) of this paragraph."

SECTION 3-4.

Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended in Code Section 36-81-3, relating to establishment of fiscal year, requirement of annual balanced budget, adoption of budget ordinances or resolutions generally, budget amendments, and uniform chart of accounts, by revising subsection (d) as follows: "(d) Nothing contained in this Code section shall preclude a local government from amending its budget so as to adapt to changing governmental needs during the budget period; provided, however, that, on and after January 1, 2027, no such amendment shall result in an increase in the revenues raised by the unit of local government from the levy and collection of ad valorem property taxes by an amount that exceeds the greater of 3 percent or the percent change in the rate of economic inflation on individual taxpayers as determined under the Consumer Price Index, as reported by the Bureau of Labor Statistics of the United States Department of Labor, of the amount of such revenues which would be raised by the unit of local government from the levy of its roll-back rate calculated pursuant to Code Section 48-5-32.1; provided, further, that this calculation shall not include increases in a proposed budget attributable to economic growth and costs incurred pursuant to a state of emergency declared by any federal, state, or local emergency management agency, official, or authority. Amendments shall be made as follows, unless otherwise provided by charter or local law:

(1) Any increase in appropriation at the legal level of control of the local government, whether accomplished through a change in anticipated revenues in any fund or through a transfer of appropriations among departments, shall require the approval of the governing authority. Such amendment shall be adopted by ordinance or resolution;

(2) Transfers of appropriations within any fund below the local government's legal level of control shall require only the approval of the budget officer; and

(3) The governing authority of a local government may amend the legal level of control to establish a more detailed level of budgetary control at any time during the budget period. Said amendment shall be adopted by ordinance or resolution."

SECTION 3-5.

Said title is further amended by revising Code Section 36-81-6, relating to adoption of budget ordinance or resolution and form of budget, as follows:

"36-81-6.

(a)(1) On a date after the conclusion of the hearing required in subsection (f) of Code Section 36-81-5, the governing authority shall adopt a budget ordinance or resolution making appropriations in such sums as the governing authority may deem sufficient, whether greater or less than the sums presented in the proposed budget. The budget ordinance or resolution shall be adopted at a public meeting which shall be advertised in accordance with the procedures set forth in subsection (e) of Code Section 36-81-5 at least one week prior to the meeting, except as otherwise provided in paragraph (2) of this subsection.

(2)(A) On and after January 1, 2027, if such budget ordinance is projected to result in an increase in the revenues raised by the unit of local government from the levy and collection of ad valorem property taxes by an amount that exceeds the greater of 3 percent or the percent change in the rate of economic inflation on individual taxpayers as determined under the Consumer Price Index, as reported by the Bureau of Labor Statistics of the United States Department of Labor, of the amount of such revenues raised by the unit of local government which would be raised by the unit of local government from the levy of its roll-back rate calculated pursuant to Code Section

48-5-32.1, then such budget ordinance shall not go into effect unless the General Assembly enacts a local Act authorizing such increase or the electors of the unit of local government have approved such budget ordinance in a referendum election. In calculating whether a proposed annual operating budget resolution would result in such an increase in the revenues raised by the unit of local government, increases in revenue attributable to economic growth and costs incurred pursuant to a state of emergency declared by any federal, state, or local emergency management agency, official, or authority shall not be counted.

(B) The call for and conduct of any such election shall be in the manner authorized under Code Section 21-2-540. The costs of any referendum held pursuant to this paragraph shall be paid by the unit of local government adopting such budget ordinance. The exact ballot language shall be prescribed by the governing authority adopting the budget ordinance but shall contain, at a minimum, the projected amount of revenue to be generated by the budget ordinance; the amount of revenue received by the unit of local government in the previous fiscal year; and a statement as to whether or not such projected revenue increase is the result of an increase in the levy or rate of ad valorem property taxes. All persons desiring to vote in favor of the budget ordinance shall vote 'Yes' and all persons opposed to the budget ordinance shall vote 'No.' If more than one-half of the votes cast are in favor of the budget ordinance, then the budget ordinance shall go into effect as provided by law; otherwise, the budget ordinance shall either:

(i) Not go into effect and the unit of local government shall prepare a new proposed budget pursuant to Code Section 36-81-5 which is projected not to increase the revenues raised by the unit of local government by an amount that exceeds the 3 percent limitation provided for in this subsection; or

(ii) Go into effect and the unit of local government shall be required to reduce its proposed budget for the subsequent year by an amount corresponding to the unapproved increase exceeding the 3 percent limitation.

(b) The budget may be prepared in any form that the governing authority deems most efficient in enabling it to make the fiscal policy decisions embodied in the budget, but such budget shall be subject to the provisions of this article."

PART IV

SECTION 4-1.

Title 21 of the Official Code of Georgia Annotated, relating to elections, is amended in subsection (c) of Code Section 21-2-540, relating to conduct and timing of special primaries and special elections generally, by revising paragraph (2) and adding a new paragraph to read as follows:

"(2) Notwithstanding any other provision of law to the contrary and except as otherwise provided in paragraph (2.1) of this subsection, a special election to present a question to the voters shall be held only on one of the following dates which is at least 29 days after the date of the call for the special election:

(A) In odd-numbered years, any such special election shall only be held on the third Tuesday in March or on the Tuesday after the first Monday in November; and

(B) In even-numbered years, any such special election shall only be held on:

(i) The date of and in conjunction with the presidential preference primary if one is held that year;

(ii) The third Tuesday in March; provided, however, that such special election shall occur prior to July 1, 2024, and present a question to the voters on sales and use taxes authorized by Articles 5, 5A, and 5B of Chapter 8 of Title 48; (iii)(ii) The date of the general primary; or

(iv)(iii) The Tuesday after the first Monday in November.

(2.1) Notwithstanding any other provision of law to the contrary, a special election to present a question or other measure to the voters relating to an increase in revenue by a local governing authority, including a question or measure that could result in an increase in taxes shall be held only:

(A) In odd-numbered years, on:

(i) The third Tuesday in March; or

(ii) The Tuesday after the first Monday in November; and

(B) In even-numbered years, on:

(i) The date of the general primary; or

(ii) The Tuesday after the first Monday in November."

PART V

SECTION 5-1.

Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to ad valorem taxation of property, is amended in Code Section 48-5-2, relating to definitions, by repealing paragraph (2.1), redesignating paragraph (.1) as paragraph (.2), revising the introductory language of paragraph (3), and adding new paragraphs to read as follows: "(.1) 'Actual income and expense data' means income, vacancies, collection losses, lease terms, and operating expenses for the prior calendar year, as documented in a taxpayer's official records and certified as complete and accurate by such taxpayer or such taxpayer's authorized representative."

"(3) 'Fair market value of property' means the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm's length, bona fide sale. The income approach, if data are available, shall be considered in determining the fair market value of income-producing property. Upon request of a county board of tax assessors, If actual income and expense data are voluntarily shall be supplied by the property an owner, such data shall be considered in such determination of income-producing property or by a duly appointed authorized agent of such owner on or before the deadline specified in Code Section 48-5-18. Such requests shall be governed by the provisions of Code Section 48-5-300. Actual income and expense data submitted to a county board of tax assessors pursuant to such requests shall be confidential and shall not be subject to inspection, pursuant to the provisions of Code Section 48-5-314. With respect to the valuation of equipment, machinery, and fixtures when no ready market exists for the sale of the equipment, machinery, and fixtures, fair market value may be determined by resorting to any reasonable, relevant, and useful information available, including, but not limited to, the original cost of the property, any depreciation or obsolescence, and any increase in value by reason of inflation. Each tax assessor shall have access to any public records of the taxpayer for the purpose of discovering such information."

"(7) 'Income-producing property' means nonhomestead real property owned and operated by any corporation, association, partnership, 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 is used primarily for the purpose of generating income. Such term shall not include an organization which maintains nonprofit status under Section 501(c)(3) of the Internal Revenue Code of 1986 or tax-exempt status under Code Section 48-7-25."

SECTION 5-2.

Said chapter is further amended by revising Code Section 48-5-32.1, relating to certification of assessed taxable value of property and method of computation, resolution or ordinance required for millage rate, and advertisement of intent to increase property tax, as follows:

"48-5-32.1.

(a) As used in this Code section, the term:

(1) 'Ad valorem tax' or 'property tax' means a tax imposed upon the assessed value of real property.

(2) 'Certified tax digest' means the total net assessed value on the annual property tax digest certified by the tax commissioner of a taxing jurisdiction to the department and authorized by the commissioner for the collection of taxes, or, in the case where the governing authority of a county whose digest has not been approved by the commissioner has petitioned the superior court of the county for an order authorizing the immediate and temporary collection of taxes, the temporary digest so authorized.

(3) 'Levying authority' means a county, a municipality, or a consolidated city-county governing authority or other governing authority of a political subdivision of this state that exercises the power to levy ad valorem taxes to carry out the governing authority's purposes.

(4) 'Mill' means one one-thousandth of a United States dollar.

(5) 'Millage' or 'millage rate' means the levy, in mills, which is established by the governing authority for purposes of financing, in whole or in part, the taxing jurisdiction's expenses for its fiscal year.

(6) 'Millage equivalent' means the number of mills which would result when the total net assessed value added by reassessments is divided by the certified tax digest and the result is multiplied by the previous year's millage rate.

(7) 'Net assessed value' means the taxable assessed value of property after all exemptions.

(8) 'Recommending authority' means a county, independent, or area school board of education that exercises the power to cause the levying authority to levy ad valorem taxes to carry out the purposes of such board of education.

(9) 'Roll-back rate' means the previous year's millage rate minus the millage equivalent of the total net assessed value added by reassessments:

(A) As calculated and certified to the commissioner by the tax commissioner for county and educational tax purposes; and

(B) As calculated by the collecting officer of the municipality for municipal tax purposes.

(10) 'Taxing jurisdiction' means all the real property subject to the levy of a specific levying authority or the recommended levy of a specific recommending authority.

(11) 'Total net assessed value added by reassessments' means the total net assessed value added to the certified tax digest as a result of revaluation of existing real property that has not been improved since the previous tax digest year.

(b) At the time of certification of the digest, the tax receiver or tax commissioner shall also certify to the recommending authority and levying authority of each taxing jurisdiction the total net assessed value added by reassessments contained in the certified tax digest for that tax digest year of the taxing jurisdiction.

(c)(1) Whenever a recommending authority or levying authority shall propose to adopt a millage rate which does not exceed the roll-back rate, it shall adopt that millage rate at an advertised public meeting and at a time and place which is convenient to the taxpayers of the taxing jurisdiction, in accordance with the procedures specified under Code Section

48-5-32.

(2) In those instances in which the recommending authority or levying authority proposes to establish a general maintenance and operation millage rate which would require increases beyond the roll-back rate, the recommending authority or levying authority shall:

(A) Advertise advertise its intent to do so and shall conduct at least three public hearings thereon, at least one of which shall commence between the hours of 6:00 P.M. and 7:00 P.M., inclusive, on a business weekday. The recommending authority or levying authority shall place an advertisement in a newspaper of general circulation serving the residents of the unit of local government and post such advertisement on the website of the recommending or levying authority, which shall read as follows: 'NOTICE OF PROPERTY TAX INCREASE

The (name of recommending authority or levying authority) has tentatively adopted a millage rate which will require an increase in property taxes by (percentage increase over roll-back rate) percent.

All concerned citizens are invited to the public hearing on this tax increase to be held at (place of meeting) on (date and time).

Times and places of additional public hearings on this tax increase are at (place of meeting) on (date and time).

This tentative increase will result in a millage rate of (proposed millage rate) mills, an increase of (millage rate increase above the roll-back rate) mills. Without this tentative tax increase, the millage rate will be no more than (roll-back millage rate) mills. The proposed tax increase for a home with a fair market value of (average home value from previous year's digest rounded to the nearest $25,000.00) is approximately $(increase) and the proposed tax increase for nonhomestead property with a fair market value of (average nonhomestead property value from previous year's digest rounded to nearest $25,000.00) is approximately $(increase).'

Simultaneously with this notice the recommending authority or levying authority shall provide a press release to the local media; and

(B) Notify each taxpayer with property in the taxing jurisdiction, by mail directed to the taxpayer's last known address, of the proposed intent to exceed the roll-back rate at least ten days in advance of the first public hearing. Alternatively, the recommending authority or levying authority may transmit the notice to the taxpayer by electronic means at least ten days in advance of the first public hearing, if such taxpayer and county clerk have consented in writing to service by electronic means. The county clerk shall consolidate the required information for all taxing subdivisions relevant to the taxpayer's property on one notice. The notice shall include, but not be limited to:

(i) The roll-back rate;

(ii) The proposed property tax revenue needed to fund the proposed budget;

(iii) The proposed millage rate based upon the proposed budget and the current year's total assessed valuation;

(iv) The millage rate and property tax of the taxing jurisdiction on the taxpayer's property from the previous year's tax statement;

(v) The proposed percent change in the millage rate between the previous year's tax rate and the proposed tax rate for the current year;

(vi) The appraised value and assessed value of the taxpayer's property for the current year;

(vii) The estimates of the tax for the current tax year on the taxpayer's property based on the roll-back rate and the proposed millage rate; and

(viii) The dates, times, and locations of the public hearings.

(3) The advertisement shall appear at least one week prior to each hearing, be prominently displayed, not be less than 30 square inches, and not be placed in that section of the newspaper where legal notices appear and shall be posted on the appropriate website at least one week prior to each hearing. In addition to the advertisement specified under this paragraph, the levying or recommending authority may include in the notice reasons or explanations for such tax increase.

(4) The recommending authority or levying authority shall provide interested taxpayers of the taxing jurisdiction desiring to be heard an opportunity to present oral testimony within reasonable time limits and without unreasonable restriction on the number of individuals allowed to make public comment.

(4)(5) No recommending authority shall recommend and no levying authority shall levy a millage rate in excess of the proposed millage rate as established pursuant to paragraph (2) of this subsection without beginning anew the procedures and hearings required by this Code section and those required by Code Section 48-5-32. (5)(6) Any notice or hearing required under this Code section may be combined with any notice or hearing required under Article 1 of Chapter 81 of Title 36 or Code Section 48-5-32.

(d) Nothing contained in this Code section shall serve to extend or authorize any millage rate in excess of the maximum millage rate permitted by law or to prevent the reduction of the millage rate.

(e) The commissioner shall not accept a digest for review or issue an order authorizing the collection of taxes if the recommending authority or levying authority other than municipal governing authorities has established a millage rate that is in excess of the correct rollback without complying fully with the procedures required by this Code section. In the event a digest is not accepted for review by the commissioner pursuant to this subsection, it shall be accepted for review upon satisfactory submission by such authorities of such evidence. The levies of each of the levying authorities other than the county governing authority shall be invalid and unenforceable until such time as the provisions of this Code section have been met.

(f) Any recommending authority or levying authority that does not comply with the provisions of subsection (c) of this Code section shall refund to taxpayers any property taxes over-collected based on the amount of the levy that was in excess of the roll-back rate. The provisions of this subsection shall not be construed as prohibiting any other remedies available under the law.

(f)(g) The commissioner shall promulgate such rules and regulations as may be necessary for the administration of this Code section."

SECTION 5-3.

Said chapter is further amended by revising Code Section 48-5-302, relating to time for completion of revision and assessment of returns and submission of completed digest to commissioner, as follows:

"48-5-302.

Each county board of tax assessors, each municipal official responsible for collecting municipal ad valorem property taxes, and each school official responsible for collecting ad valorem property taxes for a local school system shall complete its revision and assessment of the returns of taxpayers in its respective county jurisdiction by July 15 of each year, except that, in all counties jurisdictions providing for the collection and payment of ad valorem taxes in installments, such date shall be June 1 of each year. The tax receiver or tax commissioner shall then immediately forward one copy of the completed digest to the commissioner for examination and approval."

SECTION 5-4.

Said chapter is further amended by revising Code Section 48-5-303, relating to correction of mistakes in county tax digests and notification of correction, as follows:

"48-5-303.

(a)(1) The county board of tax assessors shall have authority to correct factual errors in the tax digest when discovered within three years and when such corrections are of benefit to the taxpayer. Such corrections, after approval of the county board of tax assessors, shall be communicated to the taxpayer and notice shall be provided to the tax commissioner.

(2) If the county board of tax assessors discovers a factual error in the tax digest which is not of benefit to the taxpayer and which relates to an improperly or mistakenly applied homestead exemption that was not due to any intentional misrepresentation or fraudulent act on the part of the taxpayer, the tax receiver or tax commissioner shall be prohibited from retroactively assessing the taxpayer the difference in ad valorem taxes actually paid by the taxpayer and the amount of ad valorem taxes that would have been assessed on the taxpayer but for the improperly or mistakenly applied homestead exemption.

(b) If a tax receiver or tax commissioner makes a mistake in the digest which is not corrected by the county board of tax assessors or county board of equalization, the commissioner, with the sanction of the Governor, shall correct the mistake by making the necessary entries in the digest furnished the commissioner. The commissioner shall notify the county governing authority and the tax collector of the county from which the digest comes of the mistake and correction."

PART VI

SECTION 6-1.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 6-2.

All laws and parts of laws in conflict with this Act are repealed.