House Bill 1145 By: Representatives Paris of the 142nd, Oliver of the 84th, Holcomb of the 101st, Frye of the 122nd, Leverett of the 123rd, and others A BILL TO BE ENTITLED AN ACT To amend Part 1 of Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to tax exemptions, so as to provide for a state-wide homestead exemption for certain public service employees from ad valorem taxes in an amount equal to the amount by which the current year assessed value of a homestead exceeds the base year value of such homestead; to provide for definitions; to specify the terms and conditions of the exemption and the procedures relating thereto; to provide for applicability; to provide for related matters; to provide for compliance with constitutional requirements; to provide for a referendum, effective dates, and automatic repeal; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. Part 1 of Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to tax exemptions, is amended by adding a new Code section to read as follows: "48-5-57. (a) For purposes of this Code section, the term: (1) 'Ad valorem taxes' means all ad valorem taxes levied by, for, or on behalf of the state or any county, consolidated government, municipality, or local school district in this state, except for any ad valorem taxes levied to pay interest on and to retire bonded indebtedness. (2) 'Area median income' means the median income for the area in which a person resides as determined by the Department of Revenue. (3) 'Base year' means the taxable year immediately preceding the taxable year in which the exemption under subsection (b) of this Code section is first granted to the most recent owner of such homestead. (4) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40. (5) 'Qualifying public service employee' means a person whose gross income, as defined in the United States Internal Revenue Code of 1986, is 150 percent or less of the area median income for the area in which he or she resides and, on or before January 1 of the year in which an application for the exemption under subsection (b) of this Code section is made, is a: (A) Firefighter, paramedic, certified peace officer, or other law enforcement officer employed by the government of the United States or any department, agency, authority, or bureau thereof or by the State of Georgia or any county, municipality, special district, county or independent school system, or other political subdivision thereof; (B) Teacher, paraprofessional, administrator, or other person employed by an educational institution in this state; or (C) Person employed by or holding staff privileges at a hospital located in this state. (b)(1) Each qualifying public service employee is granted an exemption on that person's homestead from ad valorem taxes in an amount equal to the amount by which the current year assessed value of that homestead, including any final determination of value on appeal pursuant to Code Section 48-5-311, exceeds its base year assessed value. This exemption shall not apply to taxes assessed on improvements to such homestead or additional land that is added to such homestead after January 1 of the base year. If any real property is removed from such homestead, the base year assessed value, including any final determination of value on appeal pursuant to Code Section 48-5-311, shall be adjusted to reflect such removal, and the exemption shall be recalculated accordingly. The value of that property in excess of such exempted amount shall remain subject to taxation. (2) No exemption provided for in this subsection shall transfer to any subsequent owner of the property, and the assessed value of the property shall be as provided by law. (c) A person shall not receive the homestead exemption granted by subsection (b) of this Code section unless such person or person's agent files an application with the tax receiver or tax commissioner of his or her respective local government or governments charged with the duty of receiving returns of property for taxation giving such information relative to receiving such exemption as will enable such tax receiver or tax commissioner to make a determination regarding the initial and continuing eligibility of such person for such exemption or has already filed for and is receiving a homestead exemption and such existing application provides sufficient information to make such determination of eligibility. Such tax receiver or tax commissioner shall provide application forms for this purpose. (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1. Such exemption shall be automatically renewed from year to year so long as the owner occupies the residence as a homestead. After a person or a person's agent has filed the proper application as provided in subsection (c) of this Code section, it shall not be necessary to make application thereafter for any year, and the exemption shall continue to be allowed to such person. It shall be the duty of any person granted the homestead exemption under subsection (b) of this Code section to notify the tax receiver or tax commissioner of the local government or governments in the event such person for any reason becomes ineligible for such exemption. (e) The homestead exemption granted by subsection (b) of this Code section shall be in lieu of and not in addition to any other homestead exemption applicable to ad valorem taxes. (f) The exemption granted by subsection (b) of this Code section shall apply to all taxable years beginning on or after January 1, 2027." SECTION 2. In accordance with the requirements of Article VII, Section II of the Constitution of the State of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority vote in both the Senate and the House of Representatives. SECTION 3. The Secretary of State shall call and conduct an election as provided in this section for the purpose of submitting this Act to the electors of the entire state for approval or rejection. The Secretary of State shall conduct such election no later than the Tuesday next following the first Monday in November, 2026, and shall issue the call and conduct such election as provided by general law. The Secretary of State shall cause the date and purpose of the election to be published once a week for two weeks immediately preceding the date thereof in the official organ of each county in the state. The ballot shall have written or printed thereon the words: "( ) YES Shall the Act be approved which provides a state-wide homestead ( ) NO exemption to certain public service employees from ad valorem taxes in an amount equal to the amount by which the current year assessed value of a homestead exceeds its base year assessed value?" All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on such question are for approval of the Act, Section 1 of this Act shall become of full force and effect on January 1, 2027. If the Act is not so approved or if the election is not conducted as provided in this section, Section 1 of this Act shall not become effective and this Act shall be automatically repealed on the first day of January immediately following such election date. It shall be the duty of each county election superintendent to certify the results thereof to the Secretary of State. SECTION 4. Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon its approval by the Governor or upon its becoming law without such approval. SECTION 5. All laws and parts of laws in conflict with this Act are repealed.