House Bill 1228
By: Representatives McCollum of the 30th, Oliver of the 84th, Olaleye of the 59th, Panitch of
the 51st, Gullett of the 19th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to ad
valorem taxation of property, so as to provide for the assessment of real property purchased
or acquired by certain business enterprises at 100 percent of its fair market value; to require
that proceeds from taxation of such property be used to reduce the ad valorem tax bill on
homesteads in the same tax jurisdiction as such property; to provide for penalties; to provide
for certification of ownership; to provide for forms and applications; to provide for
definitions; to provide for contingent effectiveness 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 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 2.
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 3.
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:
(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 of a business
enterprise.
(2) 'Business enterprise' means a 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.
(3) 'Business enterprise property' means property owned by a business enterprise,
directly or indirectly, including, but not limited to, through one or more affiliates, that
holds an interest in at least 1,000 single-family residential properties within this state
which are used primarily for the purpose of generating rental income. Such term shall
</ins>
<ins>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.
(4) 'Fiscal authority' means the individual authorized to collect ad valorem taxes for a
county or municipality which levies ad valorem taxes.
(5) 'Homestead' shall have the same meaning as set forth in Code Section 48-5-40.
(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
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.
</ins>
<ins>(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
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)
</ins>
<ins>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)(1) Any proceeds from taxes collected under the provisions of this Code section must
be used to reduce the ad valorem tax bill on homesteads in the taxing jurisdiction within
which the business enterprise property is located before such proceeds may be used for
any other purpose.
(2) Each fiscal authority collecting a tax under the provisions of this Code section shall
provide an adjustment credit on the ad valorem tax bill of each homestead within such
fiscal authority's taxing jurisdiction up to the taxpayer's ad valorem property tax liability
on the homestead.
(3) Credit amounts computed under paragraph (2) of this subsection shall be applied to
reduce the otherwise applicable tax liability on a dollar-for-dollar basis; provided,
however, that the credit granted shall not in any case exceed the amount of the otherwise
applicable tax liability after the granting of all applicable homestead exemptions, except
for any homestead exemption under Article 2A of Chapter 8 of this title, the 'Homestead
Option Sales and Use Tax Act,' as amended, and after the granting of all applicable
millage rollbacks.
(4) Each fiscal authority shall show the credit amount on the ad valorem tax bill.
(g) Any credit under this Code section which is erroneously or illegally granted shall be
recoverable by the fiscal authority granting such credit in the same manner as any other
delinquent tax.
</ins>
<ins>(h) 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
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 4.
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, this Act shall not
become effective and shall stand repealed on January 1, 2027.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.