HB 526: Ad valorem tax; extension of preferential assessment period for certain historic properties; provide

Georgia law currently gives owners of rehabilitated or landmark historic properties a preferential property tax assessment (a break on how their property's taxable value is calculated) for nine years. After nine years, the property returns to normal assessment unless it undergoes new rehabilitation work that qualifies it again. This bill amends two sections of Georgia's tax code (O.C.G.A. §§ 48-5-7.2 and 48-5-7.3) to add a new option: if a county's governing authority approves, an income-producing historic property can keep its preferential assessment for up to 12 more years beyond the original nine, without needing new rehabilitation. During that extended period, the property's value would keep being calculated the same special way it was during the original preferential period. The bill does not set an effective date beyond the standard process, and it repeals any conflicting laws.

• Allows county governing authorities to approve up to 12 additional years of preferential tax assessment for income-producing rehabilitated historic properties after the original nine-year period ends.
• Makes the same 12-year extension option available for income-producing landmark historic properties under a separate but similar code section.
• Keeps the special fair market value calculation method in place during the extended assessment period rather than reverting to standard valuation.
• Requires county approval before any property can receive the extension, rather than granting it automatically.

Owners of income-producing rehabilitated or landmark historic properties who currently benefit from Georgia's preferential property tax assessment program, and county governing authorities, which would gain new discretion to approve extended tax breaks for these properties.

Owners of qualifying historic income-producing buildings could keep lower property tax assessments for up to 12 years longer than current law allows, but only if their county government agrees. Counties would see a longer reduction in taxable value for these properties if they choose to approve the extension.

• Section 1 revises O.C.G.A. § 48-5-7.2 (rehabilitated historic property) to allow county approval of up to 12 additional years of preferential assessment for income-producing properties.
• Section 1 specifies that the property's fair market value continues to be calculated under the existing special method during the extended period.
• Section 2 makes a parallel change to O.C.G.A. § 48-5-7.3 (landmark historic property), allowing the same county-approved 12-year extension for income-producing properties.
• Section 3 repeals any conflicting laws, a standard closing provision.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-03-03House Committee Favorably Reported By Substitute (House)
3. 2025-02-21House Second Readers (House)
4. 2025-02-20House First Readers (House)
5. 2025-02-19House Hopper (House)

• Mark Newton (R, HD-127)Primary sponsor
• Ron Stephens (R, HD-164)
• Debbie Buckner (D, HD-137)
• Dale Washburn (R, HD-144)
• Jesse Petrea (R, HD-166)

• property taxes
• historic preservation
• local government
• real estate