House Bill 92 (AS PASSED HOUSE AND SENATE)
By: Representatives Blackmon of the 146th, Kelley of the 16th, Williams of the 148th, Erwin
of the 32nd, Washburn of the 144th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and
taxation, so as to provide for the contents of property tax bills; to revise a state-wide base
year homestead exemption; to clarify that a surviving spouse does not need to reapply for
such exemption; to provide for procedures to elect to opt out and rescind an election to opt
out of such exemption; to provide for an additional period to apply for a homestead
exemption in certain circumstances; to provide for the contents of annual notices of
assessment; to provide for forms for such notices; to provide for requirements for calculating
and certifying estimated roll-back rates; to revise definitions; to exempt from local taxes the
sale or use of construction materials used in certain capital outlay projects for educational
purposes; to provide that such exemption only applies to projects for local school systems
that have in effect certain homestead exemptions from property taxation; to provide for
conditions and limitations; to provide for payment, collection, and refunds; to provide for an
automatic repeal; to provide for the maximum amount of local sales and use taxes that may
be imposed; to revise provisions related to a special district sales and use tax; to provide for
conditions under which such tax may be imposed; to provide for clarifications; to provide for
related matters; to provide for an effective date and applicability; to repeal conflicting laws;
and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
PART I
SECTION 1-1.
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is
amended in Code Section 48-5-2, relating to definitions relative to ad valorem taxation of
property, by revising paragraph (2.1) as follows:
"(2.1) 'Estimated roll-back rate' means, <ins>for any given levying or recommending authority,
</ins> the current year's estimated millage rate <ins>for general maintenance and operations</ins> minus
the millage equivalent of the total net assessed value added by reassessments:
<del>(A) As</del> <ins>as</ins> calculated and certified <del>to the tax commissioner</del> by the levying <ins>or
recommending</ins> authority <ins>pursuant to Code Section 48-5-306.2</ins> <del>for county and
educational tax purposes; and
(B) As calculated and certified to the collecting officer of the municipality by the
levying authority for municipal tax purposes."
</del> SECTION 1-2.
Said title is further amended in Code Section 48-5-34, relating to ad valorem property tax bill
form, by revising subsection (b) and adding a new subsection to read as follows:
"(b) In addition to the requirements of subsection (a) of this Code section, <del>regarding any
ad valorem property tax bill where</del> <ins>if</ins> the millage rate adopted by a <del>tax</del> <ins>taxing</ins> authority
exceeds the estimated roll-back rate <ins>and such estimated roll-back rate was provided in the
annual notice of assessment,</ins> such tax bill shall include a notice containing the name of
such taxing authority and the following statement in bold print:
'The adopted millage rate exceeds the estimated roll-back rate as stated in the annual
notice of assessment that you previously received for this taxable year, which will
result in an increase in the amount of property tax that you will owe.'
<ins>(c)(1) If the governing authority of a county, consolidated government, municipality, or
school district elected to opt out of the homestead exemption provided for in Code
Section 48-5-44.2 and there is not in effect for such political subdivision a base year
value homestead exemption or adjusted base year value homestead exemption that is
generally applicable for homestead residents, each ad valorem property tax bill issued by
such political subdivision for homestead properties shall contain a notice in bold print
that corresponds with the following statement:
'[Name of the political subdivision] chose to opt out of property tax relief for
homeowners related to HB 581 (2024). If you have concerns about that decision,
please call [the main telephone number for the levying or recommending authority of
the political subdivision].'
(2) The provisions of paragraph (1) of this subsection shall not apply for any taxable year
beginning after December 31, 2029."
</ins> SECTION 1-3.
Said title is further amended in Code Section 48-5-44.2, relating to base year homestead
exemption, by revising paragraph (4) of subsection (a) and subsections (e) and (i) as follows:
"(4) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40,
<ins>with the additional limitation that it 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
</ins>
<ins>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."
</ins> "(e) The exemption granted by subsection (b) or (c) of this Code section 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 or is
automatically granted the homestead exemption as provided in subsection (d) of this Code
section, it shall not be necessary <ins>for such person or such person's surviving spouse</ins> to make
application thereafter for any year, and the exemption shall continue to be allowed to such
person <ins>or such person's surviving spouse.</ins> It shall be the duty of any person granted the
homestead exemption under subsection (b) <ins>or (c)</ins> 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."
"(i)(1) The governing authority of any county, consolidated government, municipality,
or school district may elect to opt out of the homestead exemption otherwise granted by
<del>subsection (b) of</del> this Code section with respect to such political subdivision through the
adoption of a resolution to do the same by March 1, 2025, after completing the following
steps:
<ins>(1)(A)</ins> The governing authority shall 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 governing
authority shall place an advertisement in a newspaper of general circulation serving the
residents of the political subdivision and post such advertisement on its website, which
shall read as follows:
'INTENT TO OPT OUT OF HOMESTEAD EXEMPTION
The <ins>(name of governing authority)</ins> intends to opt out of the statewide adjusted
base year ad valorem homestead exemption for <ins>(name of the political subdivision).
</ins>
All concerned citizens are invited to the public hearing on this matter to be held
at <ins>(place of meeting)</ins> on <ins>(date and time).
</ins> Times and places of additional public hearings on this matter are at <ins>(place of
meeting)</ins> on <ins>(date and time).'
</ins> Simultaneously with this notice the governing authority shall provide a press release to
the local media.; <ins>and
(2)(B)</ins> The advertisement required by <ins>subparagraph (A) of this</ins> paragraph <del>(1) of this
subsection</del> shall appear at least one week prior to each hearing, be prominently
displayed, be not 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 its intention to opt out of the homestead exemption.
<del>(3)(2)</del> No <del>resolution</del> <ins>election</ins> to opt out of the homestead exemption <ins>pursuant to this
Code section</ins> shall become effective with respect to a political subdivision unless the
procedures and hearings required by <ins>paragraph (1) of</ins> this subsection are completed and
a copy of such resolution is filed with the Secretary of State by March 1, 2025.
<ins>(3) For an election to opt out of the homestead exemption pursuant to this subsection to
remain effective for tax years 2027 and after with respect to a political subdivision that
does not have in effect a base year value homestead exemption or an adjusted base year
value homestead exemption that is generally applicable to homestead residents, the
governing authority of such political subdivision shall complete the same procedures and
hearings required by paragraph (1) of this subsection, except that a copy of the required
resolution shall be filed with the Secretary of State by March 1, 2027.
(4) The governing authority of any county, consolidated government, municipality, or
school district that has elected to opt out of the homestead exemption pursuant to this
subsection may rescind such election at any time by adopting a resolution to do so and
</ins>
<ins>filing a copy of such resolution with the Secretary of State; provided, however, that such
resolution to rescind the election to opt out shall only be effective for:
(A) Tax year 2025 if a copy of the resolution is filed with the Secretary of State by
April 30, 2025; and
(B) Any other tax year from 2026 through 2029 if a copy of the resolution is filed with
the Secretary of State by March 1 of such year."
</ins> SECTION 1-4.
Said title is further amended in Code Section 48-5-45, relating to application for homestead
exemption and unlawful to solicit fee to file application for homestead for another, by
revising subsection (a) as follows:
"(a)(1) An applicant seeking a homestead exemption as provided in Code
Section 48-5-44 and qualifying under the provisions of Code Section 48-5-40 shall file
a written application and schedule with the tax receiver or tax commissioner charged with
the duty of receiving returns of property for taxation at any time during the calendar year
subsequent to the property becoming the primary residence of the applicant up to and
including the date for the closing of the books for the return of taxes for the calendar year,
<ins>except that, in the case of a property which is subject to a reassessment by the board of
tax assessors, such application and schedule may be filed in conjunction with or in lieu
of an appeal of the reassessment.
</ins> (2) The failure to file properly the application and schedule on or before the date for the
closing of the books for the return of taxes of a calendar year in which the taxes are due
shall constitute a waiver of the homestead exemption on the part of the applicant failing
to make the application for such exemption for that year."
SECTION 1-5.
Said title is further amended in Code Section 48-5-306, relating to annual notice of current
assessment, contents, posting notice, and new assessment description, by revising
paragraph (1) of subsection (b) as follows:
"(1) The annual notice of current assessment required to be given by the county board
of tax assessors under subsection (a) of this Code section shall be dated and shall contain
the name and last known address of the taxpayer. The annual notice shall <del>conform with
</del> <ins>be given on</ins> the <ins>applicable</ins> state-wide <del>uniform</del> assessment notice <ins>form</ins> which shall be
established by the commissioner by rule and regulation and shall contain:
(A) The amount of the previous assessment;
(B) The amount of the current assessment;
(C) The year for which the new assessment is applicable;
(D) A brief description of the assessed property broken down into real and personal
property classifications;
(E) The fair market value of property of the taxpayer subject to taxation and the
assessed value of the taxpayer's property subject to taxation after being reduced;
(F) The name, phone number, and contact information of the person in the assessors'
office who is administratively responsible for the handling of the appeal and who the
taxpayer may contact if the taxpayer has questions about the reasons for the assessment
change or the appeals process;
(G) If available, the <ins>public</ins> <del>internet</del> website address of the office of the county board
of tax assessors;
(H) A statement that all documents and records used to determine the current value are
available upon request; and
(I)(i) The current year's estimated roll-back rate <ins>for each levying or recommending
authority that certified its estimated roll-back rate for the current year to the county
</ins>
<ins>board of tax assessors and county tax commissioner by the date specified under Code
Section 48-5-306.2; or
(ii) For each levying or recommending authority that did not certify its estimated
roll-back rate to the county board of tax assessors and county tax commissioner by the
date specified in Code Section 48-5-306.2, the millage rate that was actually levied
by or on behalf of such authority for the previous tax year, and an estimate of the
amount of ad valorem taxes due for the assessed property based on such millage rate
and the amount of the current assessment."
</ins> SECTION 1-6.
Said title is further amended by adding a new Code section to read as follows:
<ins>"48-5-306.2.
Each levying and recommending authority shall annually calculate its estimated roll-back
rate for the current year and shall certify such rate to the county board of tax assessors and
county tax commissioner no less than 15 days prior to the postmark of the annual notice
of assessment."
</ins> PART II
SECTION 2-1.
Said title is further amended in Code Section 48-8-3, relating to exemptions from sales and
use taxes, by adding a new paragraph to read as follows:
<ins>"(10.1)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary, the
sale or use of qualifying construction materials used in capital outlay projects for
educational purposes.
(B) The exemption provided for in this paragraph shall only apply to local sales and
use taxes.
</ins>
<ins>(C)(i) Notwithstanding the exemption provided for in subparagraph (A) of this
paragraph, all sales and use taxes imposed on the sale or use of qualifying
construction materials shall be paid and collected pursuant to the requirements of this
chapter.
(ii) The benefit of the exemption allowed by this paragraph may be claimed by the
local school system for which the qualifying construction materials were used. To
claim the exemption, the local school system shall file a request for refund in the
manner prescribed by the department. The department shall refund to the local school
system the amount of taxes paid on qualifying construction materials used in the
capital outlay project for educational purposes. No refund made pursuant to this
paragraph shall include interest.
(iii) Any refund received by a local school system pursuant to this paragraph shall be
allocated to a fund or account for capital outlay projects and used in accordance with
the requirements for sales taxes for educational purposes authorized pursuant to
Article VIII, Section VI, Paragraph IV of the Constitution of Georgia.
(D) As used in this paragraph, the term:
(i) 'Capital outlay project for educational purposes' means a project that:
(I) Was approved and funded through a sales tax for educational purposes
authorized pursuant to Article VIII, Section VI, Paragraph IV of the Constitution of
Georgia; and
(II) Is for a local school system which has in effect a base year value homestead
exemption or adjusted base year value homestead exemption from ad valorem
taxation for educational purposes for all residents of the local school system.
(ii) 'Local sales and use taxes' mean sales taxes, use taxes, or local sales and use taxes
levied or imposed at any time in any area consisting of less than the entire state,
however authorized, including, but not limited to, such taxes authorized by or
pursuant to a constitutional amendment; by or pursuant to Section 25 of an Act
</ins>
<ins>approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the 'Metropolitan
Atlanta Rapid Transit Authority Act of 1965'; and by or pursuant to Articles 2, 2A,
2B, 3, 4, 5, 5A, and 5B of this chapter.
(iii) 'Qualifying construction materials' means any materials used in the construction
of a capital outlay project for educational purposes that will remain as part of such
project after completion of construction or that become incorporated into such
project's real property. Such term shall not include any materials that remain in the
possession of a contractor after the completion of construction.
(E) This paragraph shall stand repealed on December 31, 2033;"
</ins> PART III
SECTION 3-1.
Said title is further 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 subsection (a) as follows:
"(a)(1) Except as provided in this subsection, on and after July 1, 2024, there shall not
be imposed in any jurisdiction in this state or on any transaction in this state local sales
taxes, local use taxes, or local sales and use taxes in excess of 2 percent. For purposes
of <del>this</del> <ins>such</ins> 2 percent limitation, the taxes affected are any sales tax, use tax, or sales and
use tax which is levied in an area consisting of less than the entire state, however
authorized, including such taxes authorized by or pursuant to constitutional amendment,
and regardless of whether another provision of law purports to the contrary, except for
the following:
(A) A 1 percent sales and use tax for educational purposes exempted from such
limitation under Article VIII, Section VI, Paragraph IV of the Constitution;
(B) Up to 1 percent in aggregate of any of the transportation related sales and use taxes
authorized under Articles 5, 5A, and 5B of this chapter and Article 2 of Chapter 9 of
Title 32, <ins>and in a county in which a tax is levied and collected pursuant to Part 2 of
Article 2A of this chapter, any tax levied for purposes of a metropolitan area system of
public transportation, as authorized by the amendment to the Constitution set out at
Georgia Laws, 1964, page 1008, the continuation of such amendment under Article XI,
Section I, Paragraph IV(d) of the Constitution, and the laws enacted pursuant to such
constitutional amendment;</ins> and
(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, Part 3 of Article 3
of this chapter, and Article 4 of this chapter.
(2) Notwithstanding any provision of law to the contrary, any tax that does not comply
with the limitations provided in paragraph (1) of this subsection as of July 1, 2025, but
was initiated in compliance with the law in effect prior to January 1, 2025, shall be
allowed to continue as authorized under laws that existed prior to July 1, 2025; provided,
however, that, upon the expiration or termination of any such tax, <del>such tax shall not be
renewed and</del> the jurisdiction that levied such tax shall be fully subject to the limitations
imposed by this subsection.
(3) This subsection shall not limit the imposition of any local excise tax, which is
separately authorized under Chapter 13 of this title.
(4) <del>Except as provided in paragraph (2) of this subsection, if</del> <ins>If</ins> the imposition of any
otherwise authorized local sales tax, local use tax, or local sales and use tax would result
in a tax rate in excess of that authorized by this subsection, then such otherwise
authorized tax shall not be imposed."
SECTION 3-2.
Said title is further amended by revising Code Section 48-8-109.31, relating to imposition
of special sales and use tax within special district and limited time and purpose, as follows:
"48-8-109.31.
(a) Subject to the requirement of approval by local referendum and the other requirements
of this article, <del>to impose</del> <ins>there may be imposed</ins> within any given special district a special
sales and use tax for a limited period of time for the limited purpose of property tax relief.
(b) Except as to rate, a tax imposed under this part shall correspond to the tax imposed by
Article 1 of this chapter. 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, except 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.
(c) The special sales and use tax provided for in subsection (a) of this Code section may
be imposed by a special district in 0.05 percent increments, but in no event shall such tax
exceed 1 percent in total. 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.
(d)(1) As <del>a condition</del> <ins>conditions</ins> precedent to the issuance of the call for the referendum:
<del>(1)(A)</del> The governing authority of the county whose geographical boundary is
conterminous with that of the special district and the governing authority or authorities
of all municipalities <ins>in such county</ins> that levy an ad valorem tax on property, other than
those municipalities that are excluded from the special district pursuant to <del>paragraph (3)
</del> <ins>subsection (f)</ins> of this <del>subsection</del> <ins>Code section,</ins> shall have in effect a base year value
<ins>homestead exemption</ins> or adjusted base year value homestead exemption, <ins>except that such
condition precedent shall not apply with respect to any municipality that levies an ad
</ins>
<ins>valorem tax on property and that represents no more than 5 percent of the special district's
residents of municipalities that levy an ad valorem tax on property;</ins> and
<del>(B)(2)</del> The governing authority of the county whose geographical boundary is
conterminous with that of the special district and the governing authority or authorities,
if any, that represent at least 50 percent of the special district's residents of municipalities
that levy an ad valorem tax on property, other than those municipalities that are excluded
from the special district pursuant to <del>paragraph (3) of this</del> subsection <ins>(f) of this Code
section,</ins> shall enter into an intergovernmental agreement calling for the tax authorized
under this article and specifying the proposed rate of the tax, the proposed maximum
period of time that the tax is to be levied, and the proposed distribution of the tax.
<ins>(e)(1) As used in this subsection, the term 'absent municipality' means any municipality
that levies an ad valorem tax on property, other than those municipalities that are
excluded from the special district pursuant to subsection (f) of this Code section, and that
did not enter into the intergovernmental agreement provided for in paragraph (2) of
subsection (d) of this Code section.
</ins> (2) If the combined total of the populations of all <del>such</del> absent municipalities is less than
one-half of the aggregate population of all municipalities located within the special
district that levy an ad valorem tax on property, the <del>political subdivisions</del> <ins>governing
authorities</ins> entering into <del>the</del> <ins>such</ins> intergovernmental agreement shall, <del>on</del> <ins>in</ins> behalf of such
absent municipalities, specify a percentage of that portion of the remaining proceeds
which each municipality that levies an ad valorem tax on property shall receive, which
percentage shall not be less than that proportion which each such absent municipality's
population bears to the total population of all municipalities that levy ad valorem taxes
on property within the special district multiplied by that portion of the remaining
proceeds which are received by all such municipalities within the special district. No
portion of the tax shall be apportioned to counties <del>and</del> <ins>or</ins> municipalities that do not levy
an ad valorem tax on property or do not have a base year value homestead exemption or
adjusted base year value homestead exemption in effect.
<del>(3)(f)</del> Subject to the limitation provided for in Code Section 48-8-6, any special district
which wholly or partially contains a jurisdiction levying the tax provided for under
Article 4 of this chapter is authorized to levy the tax authorized under this article. Such tax
authorized under this article may only be levied in the areas of the special district outside
of the jurisdiction levying the tax provided for under Article 4 of this chapter. Any
jurisdiction levying the tax provided for under Article 4 of this chapter shall not be
considered within the procedure necessary to levy the tax under this article and shall not
be entitled to any portion of said tax."
SECTION 3-3.
Said title is further amended in Code Section 48-8-109.32, relating to maximum period of
time of the tax, submission to voters to determine imposition of tax, ballot language, and
expenses of election, by adding a new subsection to read as follows:
<ins>"(e) If no intergovernmental agreement is required pursuant to this article, the governing
authority of the county or consolidated government whose geographical boundary is
conterminous with that of the special district shall adopt a resolution which meets the
requirements provided for in this Code section for intergovernmental agreements."
</ins> SECTION 3-4.
Said title is further amended in Code Section 48-8-109.33, relating to timing for imposition
of tax following approval and termination of tax, by revising paragraph (2) of subsection (a)
and subsection (c) as follows:
"(2) With respect to services that are regularly billed on a monthly basis, however, <del>the
resolution or ordinance imposing the tax shall become effective and</del> the tax shall apply
to the first regular billing period coinciding with or following the effective date specified
in paragraph (1) of this subsection. A certified copy of the <del>ordinance</del> <ins>intergovernmental
agreement</ins> or resolution <del>imposing</del> <ins>required to impose</ins> the tax <ins>authorized by this article
</ins> shall be forwarded to the commissioner to ensure it is received within five business days
after certification of the election results."
"(c) For any special district in which a tax authorized by this article is in effect <del>may, while
such tax is in effect,</del> the General Assembly may pass a local Act calling for a reimposition
of a tax as authorized by this article upon the termination of the tax then in effect, and a
referendum may be held for this purpose while the tax is in effect. Proceedings for such
reimposition shall be in the same manner as proceedings for the initial imposition of the
tax as provided for in Code <del>Section</del> <ins>Sections 48-8-109.31 and</ins> 48-8-109.32. Such newly
authorized tax shall not be imposed until the expiration of the tax then in effect."
PART IV
SECTION 4-1.
(a) This Act shall become effective upon its approval by the Governor or upon its becoming
law without such approval and, except as provided in subsection (b) of this section, shall be
applicable on and after such date.
(b) Part I of this Act shall be applicable to taxable years beginning on or after
January 1, 2025.
SECTION 4-2.
All laws and parts of laws in conflict with this Act are repealed.