The House Committee on Rules offers the following substitute to HR 1114:
A RESOLUTION
Proposing an amendment to the Constitution so as to revise procedures for financing
counties, municipalities, consolidated governments, and school systems to provide property
tax relief for homeowners; to provide for the gradual reduction in the assessed value of
homestead properties for tax purposes; to provide for an additional disabled veterans'
homestead exemption; to remove the cap on benefits granted pursuant to the Homeowner's
Incentive Adjustment clause; to authorize the General Assembly to provide for local grant
and adjustment programs; to authorize the dedication of funds for state and local grants; to
revise provisions for sales and use taxes that may be levied by local boards of education for
capital outlay projects; to provide a cap on the taxes that may be levied by local boards of
education; to authorize the conversion of sales and use and excise taxes for educational
purposes authorized by certain local constitutional amendments into sales and use taxes
authorized by general provisions of law; to provide for a new local homestead option sales
tax that may be enacted by counties, consolidated governments, municipalities, and local
school systems; to provide for related matters; to provide for the submission of this
amendment for ratification or rejection; and for other purposes.
BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article VII, Section I, Paragraph III of the Constitution is amended by revising subparagraph
(a) and adding a new subparagraph to read as follows:
"(a) All taxes shall be levied and collected under general laws and for public purposes
only. Except as otherwise provided in subparagraphs (b), (c), (d), (e), (f), <del>and</del> (h), <ins>and (i)
</ins> of this Paragraph, all taxation shall be uniform upon the same class of subjects within the
territorial limits of the authority levying the tax."
<ins>"(i) Tangible real property which is subject to a homestead exemption granted pursuant
to Section II of this article shall be assessed for ad valorem taxation purposes at a reduced
value than other tangible real property with such reduced assessment level being achieved
by the gradual reduction of the assessed value of such properties from 40 percent of
appraised value to 10 percent of appraised value by 3 percent increments each year
beginning in tax year 2027; provided, however, that local governments and local school
systems shall have the local option to accelerate the reduction provided for in this
subparagraph. For local governments that calculate assessed value of properties at a
percentage other than 40 percent of appraised value, such local government shall,
beginning in tax year 2027, reduce such local government's percentage of appraised value
by a total of 75 percent over 10 years in equal increments each year beginning in tax year
2027. The General Assembly by general law may further provide for implementation of
this subparagraph."
</ins> SECTION 2.
Article VII, Section II of the Constitution is amended by adding a new Paragraph to read as
follows:
<ins>"Paragraph VI. Additional disabled veterans' homestead exemption. The General
Assembly shall provide by general law for the creation of an additional 100 percent
disabled veterans' homestead exemption for the full assessed value of a homestead upon
</ins>
<ins>a 100 percent disabled veteran procuring a loan or otherwise financing the development of
new residential construction, obtaining or receiving a residential structure by inheritance,
or purchasing an existing residential structure, for the purpose of use as a primary
residence."
</ins> SECTION 3.
Article VII, Section IIA of the Constitution is amended by revising Paragraph I as follows:
"Paragraph I. State <ins>and local</ins> grants; adjustment amount. <ins>(a)</ins> For each taxable year, a
homeowner's incentive adjustment may be applied to the return of each taxpayer claiming
such state-wide homestead exemption as may be specified by general law. <ins>The General
Assembly by general law may authorize local governments and local school systems to
establish local grant programs and to appropriate local tax funds in support of local
homeowner's incentive adjustments.</ins> The amount of such adjustment may provide a
taxpayer with a benefit equivalent to a homestead exemption of up to <del>$18,000.00 of the
assessed value of a taxpayer's homestead or</del> the taxpayer's ad valorem property tax liability
on the homestead, <del>whichever is lower.</del> The General Assembly may appropriate such
amount each year for grants to local governments and school districts as homeowner tax
relief grants.
<ins>(b) For each taxable year in which homestead properties located in a county,
consolidated government, municipality, or local school system are assessed at a reduced
value for purposes of ad valorem taxation pursuant to Article VII, Section I, Paragraph
III(i), the General Assembly may appropriate grants to such local governments and school
systems for purposes of replacing lost revenue due to such reduced assessment level.
(c) Notwithstanding any other provisions of this Constitution, the General Assembly may
provide by law for the dedication of the proceeds of specific taxes, fees, or assessments,
including, but not limited to, dedicated proceeds from sales tax collections on
high-technology data centers, to fund the grants provided for in this Paragraph.
</ins>
<ins>(d)</ins> The adjustments and grants authorized by this Paragraph shall be made in such
manner and shall be subject to the procedures and conditions as may be specified by
general law heretofore or hereafter enacted."
SECTION 4.
Article VIII, Section VI, Paragraph IV of the Constitution is amended by revising
subparagraphs (a) and (e) and adding new subparagraphs to read as follows:
"(a) The board of education of each school district in a county in which no independent
<ins>or area</ins> school district is located may by resolution, and the board of education of each
county <del>school district and the board of education of each,</del> independent, <ins>and area</ins> school
district located <ins>wholly or partially</ins> within <ins>the same county as</ins> such county <ins>school district
</ins> may by concurrent resolutions, impose, levy, and collect a sales and use tax for educational
purposes of such school districts conditioned upon approval by a majority of the qualified
voters residing within the limits of the local taxing jurisdiction voting in a referendum
thereon. In addition, when a county school district has one or more independent <ins>or area
</ins> school districts located <ins>wholly or partially</ins> within <ins>the same county as</ins> such county <ins>school
district,</ins> the school district or combination of school districts that has a majority of the
students enrolled within the county, based on the latest full-time equivalent count, shall be
authorized to call for a referendum to impose, levy, and collect a sales and use tax for
educational purposes of such school districts conditioned upon approval by a majority of
the qualified voters residing within the limits of the county voting in a referendum thereon.
This tax shall be at <del>the</del> <ins>a</ins> rate <del>of</del> <ins>not to exceed</ins> 1 percent and shall be imposed for a period
of time not to exceed five years, but in all other respects, except as otherwise provided in
this Paragraph, shall correspond to and be levied in the same manner as the tax provided
for by Article 3 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating
to the special county 1 percent sales and use tax, as now or hereafter amended.
Proceedings for the reimposition of such tax shall be in the same manner as proceedings
for the initial imposition of the tax, but the newly authorized tax shall not be imposed until
the expiration of the tax then in effect."
"(e) <ins>Except as provided for in subparagraph (k) of this Paragraph, the</ins> <del>The</del> tax imposed
pursuant to this Paragraph shall not be subject to and shall not count with respect to any
general law limitation regarding the maximum amount of local sales and use taxes which
may be levied in any jurisdiction in this state."
<ins>"(k) Notwithstanding any other provision of this Constitution, the total of the rates of the
sales and use tax levied pursuant to this Paragraph and the sales tax for educational
purposes levied pursuant to Article IX, Section IV, Paragraph V shall not exceed 2 percent.
(l) Notwithstanding Article XI, Section I, Paragraph IV, any sales and use or any excise
tax for educational purposes levied pursuant to any constitutional amendment continued
in force and effect pursuant to Article XI, Section I, Paragraph IV(a) that is in force and
effect on January 1, 2028, may be converted into a sales and use tax authorized pursuant
to Article IX, Section IV, Paragraph V, and, if so, shall henceforth be governed by the
provisions of such Paragraph V and any laws enacted pursuant thereto. All such local
constitutional amendments converted into a sales and use tax authorized pursuant to Article
IX, Section IV, Paragraph V shall stand repealed by operation of law and shall be deleted
as part of this Constitution upon such conversion."
</ins> SECTION 5.
Article IX, Section IV of the Constitution is amended by adding a new Paragraph to read as
follows:
<ins>"Paragraph V. Local homestead option sales tax. (a) The General Assembly shall
provide by general law for a local homestead option sales tax that may be enacted by any
county, consolidated government, municipality, or local school system to offset the loss of
revenue received from homestead property taxes by such counties, consolidated
governments, municipalities, and local school systems due to any reduction of assessed
</ins>
<ins>value on homestead property pursuant to Article VII, Section I, Paragraph III(i) or due to
any increased homestead exemptions. To effectuate such offsets, such general law shall
provide for the:
(1) Optional imposition of a local homestead option sales tax in support of the local
school system at a rate not to exceed 2 percent;
(2) Optional imposition of a local homestead option sales tax in support of a county,
consolidated government, or municipality at a rate not to exceed 1 percent. Such general
law shall provide for proportional distribution of proceeds between such local
governments based on amount of such loss of revenue for each affected local
government;
(3) Exemption of homestead properties located in a county, consolidated government,
municipality, or local school system from certain ad valorem taxes or reduction in the
percentage of assessed value for purposes of ad valorem taxes on such homestead
property pursuant to Article VII, Section I, Paragraph III(i), if the county, municipality,
consolidated government, or local school system enacts a local homestead option sales
tax authorized by this Paragraph; and
(4) Offsetting or exemption of county, consolidated government, municipal, or local
school system ad valorem taxes for other properties in a manner provided by general law.
(b) The provisions of Article VII, Section II, Paragraph II(a) shall not apply to any laws
enacted pursuant to this Paragraph nor, except as provided in this subparagraph, shall any
local homestead option sales tax imposition be conditioned upon or require the approval
of a majority of the qualified electors residing within the limits of the local taxing
jurisdiction voting in a referendum thereon; provided, however, that the General Assembly
may by general law provide that the implementation or renewal of a local homestead option
sales tax after January 1, 2037, may be conditioned upon approval by a majority of the
qualified electors residing within the limits of the local taxing jurisdiction voting in a
referendum thereon; and provided further, however, that, in the event that such a
</ins>
<ins>referendum fails, the value at which homestead property is assessed for such jurisdiction
shall be increased to 40 percent of the appraised value of the homestead property for such
jurisdiction."
</ins> SECTION 6.
The above proposed amendment to the Constitution shall be published and submitted as
provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the
above proposed amendment shall have written or printed thereon the following:
"( ) YES Shall the Constitution of Georgia be amended to provide property tax relief
( ) NO for homeowners by reducing the percent of taxable assessed value of
residential properties from 40 percent of appraised value to 10 percent of
appraised value at the rate of 3 percent each year over 10 years, adding an
additional disabled veterans' homestead exemption, and authorizing local
homestead option sales taxes to offset lost ad valorem revenues?"
All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes."
All persons desiring to vote against ratifying the proposed amendment shall vote "No." If
such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall
become a part of the Constitution of this state.