SB 306: Bona Fide Conservation Use Property; impending expiration to be sent via certified mail; require notices

Senate Bill 306

By: Senator Robertson of the 29th

AS PASSED

A BILL TO BE ENTITLED

AN ACT

To amend Article 1 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to general provisions regarding ad valorem taxation of property, so as to revise the definition of bona fide conservation use property to include carbon sequestration; to require certified notices of impending expiration; to provide for the reinstatement of certain covenants and preferential assessments in certain limited circumstances; to provide for appeals and refunds; to prohibit additional fees or interest; to permit the combination of multiple covenants of a single owner into a single, new, ten-year covenant; to provide for exceptions; to provide for the change of forest land use assessment property to current use assessment property after a transfer of ownership; to amend Code Section 48-7-29.6 of the Official Code of Georgia Annotated, relating to tax credits for qualified low-income buildings, so as to provide for an annual aggregate cap; 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:

SECTION 1.

Article 1 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to general provisions regarding ad valorem taxation of property, is amended in Code Section 48-5-7.4, relating to preferential assessment for bona fide conservation use property and bona fide residential transitional property, by revising subparagraph (a)(1)(F) and subsection (d) and adding new subsections to read as follows: "(F) The primary purpose described in this paragraph includes land conservation and ecological forest management in which commercial production of wood and wood fiber products may be undertaken primarily for conservation and restoration purposes rather than financial gain. Such property may, in addition, have as a secondary use carbon sequestration in accordance with the Georgia Carbon Sequestration Registry or a carbon sequestration program; or"

"(d) No property shall qualify for current use assessment under this Code section unless and until the owner of such property agrees by covenant with the appropriate taxing authority to maintain the eligible property in bona fide qualifying use for a period of ten years beginning on the first day of January of the year in which such property qualifies for such current use assessment and ending on the last day of December of the final year of the covenant period. After the owner has applied for and has been allowed current use assessment provided for in this Code section, it shall not be necessary to make application thereafter for any year in which the covenant period is in effect and current use assessment shall continue to be allowed such owner as specified in this Code section. At least 60 days prior to the expiration date of the covenant, the county board of tax assessors shall send by first-class mail written notification of such impending expiration; provided, however, that the county board of tax assessors shall send such written notification by certified mail, if requested by the taxpayer. Additionally, the county board of tax assessors shall send an electronic copy of such notification to the taxpayer if the taxpayer has submitted a current email address and requested such electronic notification. Upon the expiration of any covenant period, the property shall not qualify for further current use assessment under this Code section unless and until the owner of the property has entered into a renewal covenant for an additional period of ten years; provided, however, that the owner may enter into a renewal contract in the ninth year of a covenant period so that the contract is continued without a lapse for an additional ten years.

(d.1)(1) This subsection shall apply in the case of any property:

(A) For which the covenant required under subsection (d) of this Code section expired during the two years immediately preceding July 1, 2025; and

(B) That, during the period after the expiration of the covenant required under subsection (d) of this Code section, continued to qualify for current use assessment under this Code section; and

(C) The owner of such property can demonstrate by sworn affidavit from the designated mail carrier that the mailbox was inoperable or unavailable at the time such notice of expiration should have been delivered.

(2) Notwithstanding any other provision of this chapter to the contrary, for a property that meets the requirements of paragraph (1) of this subsection the covenant required under subsection (d) of this Code section shall be deemed to be reinstated and the owner of the property shall only be liable for the taxes that would have been imposed if such covenant had not expired.

(3) Notwithstanding the procedures and requirements for appeals provided in this chapter to the contrary, the owner of any property that meets the requirements of paragraph (1) of this subsection may appeal the assessment of such property for the time period stated in subparagraph (A) of paragraph (1) of this subsection. The county board of tax commissioners shall refund to the owner any amount of taxes paid in excess of such amount, and no other costs, fees, or interest shall be imposed on such owner in relation to such appeal."

"(e.1)(1) A single owner, as described in subparagraph (a)(1)(C) of this Code section, who has multiple parcels of bona fide conservation use property that are collectively subject to more than one valid covenant under this Code section may combine such covenants in whole under a single, new, ten-year covenant for bona fide conservation use without constituting a breach of any of the covenants, provided that all such property would be otherwise eligible to be placed under a renewal covenant under this Code section by the owner upon the natural expiration of the original covenant.

(2) The provisions of this subsection shall not be permitted or be construed to:

(A) Allow any portion of property held under a covenant to be removed from the covenant without being combined into the new covenant;

(B) Change any requirements for what constitutes qualified property; or

(C) Change any requirements for what constitutes qualifying use for purposes of this Code section.

(3) A single owner, as described in subparagraph (a)(1)(C) of this Code section, desiring to proceed with combining covenants pursuant to paragraph (1) of this subsection shall first file a real property tax return with the appropriate board of tax assessors on or before the deadline to file such return.

(4) Parcels on which delinquent taxes are owed shall not be eligible to be combined pursuant to paragraph (1) of this subsection."

SECTION 2.

Said article is further amended in Code Section 48-5-7.7, relation to preferential assessment for forest land conservation use property, by revising subsection (f) as follows: "(f)(1) A qualified owner shall not be authorized to make application for and receive conservation use assessment under this Code section for any property which at the time of such application is receiving preferential assessment under Code Section 48-5-7.1 or current use assessment under Code Section 48-5-7.4; provided, however, that, if any property is subject to a covenant under either of those Code sections, it may be changed from such covenant and placed under a covenant under this Code section if it is otherwise qualified. Any such change shall terminate the existing covenant and shall not constitute a breach thereof. No property may be changed more than once under this paragraph.

(2) Any property that is subject to a covenant under this Code section and subsequently fails to adhere to the qualifying purpose, as defined in paragraph (5) of subsection (b) of this Code section, may be changed from the covenant under this Code section and placed under a covenant provided for in Code Section 48-5-7.4 if the property otherwise qualifies under the provisions of that Code section. In such a case, the existing covenant under this Code section shall be terminated, and the change shall not constitute a breach thereof. No property may be changed more than once under this paragraph.

(3) A qualified owner under this Code section may obtain ownership of property receiving preferential assessment under Code Section 48-5-7.1 or current use assessment under Code Section 48-5-7.4 and have 180 days from the time ownership is acquired to change from such covenant and place under a covenant under this Code section if it is otherwise qualified and would not constitute a breach thereof even if the qualified owner does not qualify for the preferential assessment under Code Section 48-5-7.1 or current use assessment under Code Section 48-5-7.4."

SECTION 3.

Code Section 48-7-29.6 of the Official Code of Georgia Annotated, relating to tax credits for qualified low-income buildings, is amended by revising paragraph (5) of subsection (b) as follows:

"(5) The aggregate annual amount of tax credits allowed initially awarded pursuant to this Code section shall not exceed $100 million for each of the taxable years 2026 through 2028."

SECTION 4.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval, and Sections 1 and 2 of this Act shall be applicable to all taxable years beginning on or after January 1, 2027.

SECTION 5.

All laws and parts of laws in conflict with this Act are repealed.