HB 1583: Fayette County; ad valorem tax; floating proportional amount based upon any increased property tax collections; provide new exemption

House Bill 1583 (AS PASSED HOUSE AND SENATE)

By: Representatives Bonner of the 73rd, Mathiak of the 82nd, Jackson of the 68th, and Bazemore of the 69th

A BILL TO BE ENTITLED

AN ACT

To amend an Act provide for residents of specified ages a homestead exemption from certain ad valorem taxes levied by Fayette County for county purposes and to provide a homestead exemption from certain Fayette County School District ad valorem taxes for educational purposes, approved April 15, 1996 (Ga. L. 1996, p. 4453), so as to provide a new exemption in a floating proportional amount based upon any increased property tax collections that exceed the value of property taxes collected in tax year 2025 to each resident of the county from ad valorem taxes for county purposes; to provide for compliance with constitutional requirements; to provide for a referendum, effective dates, automatic repeal, mandatory execution of election, and judicial remedies regarding failure to comply; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

An Act provide for residents of specified ages a homestead exemption from certain ad valorem taxes levied by Fayette County for county purposes and to provide a homestead exemption from certain Fayette County School District ad valorem taxes for educational purposes, approved April 15, 1996 (Ga. L. 1996, p. 4453), is amended by adding a new subsection to Section 4 to read as follows:

(a.1)(1) As used in this subsection the term "base year" means the taxable year beginning on January 1, 2025.

(2) Each resident of Fayette County is granted an exemption on such person's homestead from Fayette County ad valorem taxes for county purposes in an amount authorized by and calculated pursuant to paragraph (3) of this subsection as determined by the tax commissioner of Fayette County in coordination with the governing authority of Fayette County. Such homestead exemption shall commence on January 1, 2027. The value of that property in excess of such exempted amount shall remain subject to taxation. (3)(A) In any tax year subsequent to the base year, the tax commissioner of Fayette County shall determine the amount of ad valorem taxes for county purposes collected from all properties that is in excess of the ad valorem taxes for county purposes collected from all properties in the base year.

(B) If the excess amount of ad valorem taxes for county purposes collected from all properties in a particular tax year exceeds 100 percent of the ad valorem taxes for county purposes collected from all properties in the base year, the full value of such tax collections exceeding such amount shall be segregated from all other proceeds of the ad valorem taxes for county purposes collected in such tax year, and such segregated funds shall be maintained to offset the cost of the exemption provided by this Act in the next subsequent tax year. As soon as the tax digest for the next subsequent tax year is approved, the governing authority of Fayette County in coordination with the tax commissioner of Fayette County, shall calculate the dollar value to be equally applied to all properties receiving the exemption provided for by this Act in such next subsequent tax year. The value of the exemption to be provided each year shall be at the discretion of the governing authority of Fayette County and which value may be set at an amount that does not use all of the segregated funds provided for in this paragraph. In the event that the value of the exemption set in a particular year does not use all of the segregated funds, the remainder of such funds shall be deposited in the general fund of the county. In no event shall the value of the exemption be set at an amount that would exceed the value of the segregated funds provided for in this subparagraph for a particular year. The tax commissioner of Fayette County shall then provide such segregated amount from the previous tax year, plus any interest earned on such segregated funds, to the governing authority of Fayette County to be utilized as provided for in this subparagraph.

(C) If the excess amount of ad valorem taxes for county purposes collected from all properties in a particular tax year is negative or does not exceed 100 percent of the ad valorem taxes for county purposes collected from all properties in the base year, the value of the homestead exemption provided by this Act for the next subsequent tax year shall be zero dollars."

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 election superintendent of Fayette County shall call and conduct an election as provided in this section for the purpose of submitting this Act to the electors of Fayette County for approval or rejection. The election superintendent shall conduct that election on the Tuesday following the first Monday in November of 2026 and shall issue the call and conduct that election as provided by general law. The election superintendent 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 Fayette County. The ballot shall have written or printed thereon the words:

"( ) YES Shall the Act be approved which provides a homestead exemption from Fayette County ad valorem taxes for county purposes in a floating ( ) NO proportional amount based upon the amount of property taxes collected in a particular tax year that exceeds the value of property taxes collected in tax year 2025?"

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 365th calendar day following the election date provided for in this section. The expense of such election shall be borne by Fayette County. It shall be the election superintendent's duty to certify the result thereof to the Secretary of State. The provisions of this section shall be mandatory upon the election superintendent and are not intended as directory. If the election superintendent fails or refuses to comply with this section, any elector of Fayette County may apply for a writ of mandamus to compel the election superintendent to perform his or her duties under this section. If the court finds that the election superintendent has not complied with this section, the court shall fashion appropriate relief requiring the election superintendent to call and conduct such election on the date required by this section or on the next date authorized for special elections provided for in Code Section 21-2-540 of the O.C.G.A.

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.