SB 382: Ad Valorem Taxation; make the state-wide base year homestead exemption mandatory for all political subdivisions

The House Committee on Ways & Means offers the following substitute to SB 382:

A BILL TO BE ENTITLED

AN ACT

To amend Titles 20, 36, and 48 of the Official Code of Georgia Annotated, relating to education, local government, and revenue and taxation, respectively, so as to provide for property tax reform; to revise provisions regarding caps on local sales and use tax; to require that each sales tax return include specific information regarding the collection of such taxes; to revise the special district option sales and use tax (FLOST); to provide for imposition pursuant to resolution; to provide for distribution and use of proceeds; to revise the single state-wide homestead exemption from a base year homestead exemption to a uniform reduction of the value of the homestead; to eliminate its application to local school systems; to make such state-wide homestead exemption mandatory; to exclude amounts attributable to certain exemptions from ad valorem taxation from the equalized adjusted school property tax digest for the purpose of calculating the local five mill share and equalization grants; to require the proposed annual operating budget resolution of a local board of education to be approved in a referendum election if such resolution would increase certain revenues raised by the local board of education by a certain amount; to provide that certain proposed increases in revenue collections by local governments must be approved by the voters of such local government; to revise provisions relating to certification of assessed taxable value of property and method of computation, resolution or ordinance required for millage rate, and advertisement of intent to increase property tax; to make conforming changes; to provide for the holding of a nonbinding, advisory referendum election to determine whether the qualified electors of the State of Georgia desire that the Georgia General Assembly allow Georgians to decide whether to authorize new finance procedures for local governments and school systems for the purpose of providing complete property tax relief for homeowners; to provide for legislative intent regarding the appropriation of certain sales tax revenue collected on and after January 1, 2029, on the sale or lease of computer equipment to high-technology companies; to provide for related matters; to provide for a short title; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I

SECTION 1-1.

This Act shall be known and may be cited as the "Homeownership Opportunity and Market Equalization Act of 2026."

PART II

SECTION 2-1.

Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to state sales and use taxes, is amended by revising Code Section 48-8-6, relating to prohibition of political subdivisions from imposing various taxes, ceiling on local sales and use tax, and taxation of mobile telecommunications, as follows:

"48-8-6.

(a)(1) Until December 31, 2026, except 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 such 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, 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; 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, 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) If 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.

(5) This subsection shall stand repealed and reserved on December 31, 2026. (b)(1) On and after January 1, 2027, 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 5 percent. For purposes of such 5 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) Sales and use taxes levied and collected pursuant to Article 4 of this chapter; and

(B) 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.

(2) This subsection shall not limit the imposition of any local excise tax, which is separately authorized under Chapter 13 of this title.

(3) If 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 paragraph (1) of this subsection, then such otherwise authorized tax shall not be imposed. Reserved.

(c) Where the exception specified in paragraph (2) of subsection (a) of this Code section applies, the tax imposed under subparagraph (a)(1)(D) of Code Section 48-8-111 shall not apply to the sale of motor vehicles. This subsection shall stand repealed and reserved on December 31, 2026.

(c.1) Where the exception specified in paragraph (2) of subsection (a) of this Code section applies, on and after July 1, 2007, the aggregate amount of all excise taxes imposed under paragraph (5) of subsection (a) of Code Section 48-13-51 and all sales and use taxes shall not exceed 14 percent. This subsection shall stand repealed on December 31, 2026.

(d) Notwithstanding any law or ordinance to the contrary, any tax, charge, or fee levied by any political subdivision of this state and applicable to mobile telecommunications services, as defined in Section 124(7) of the federal Mobile Telecommunications Sourcing Act, 4 U.S.C. Section 124(7), shall apply only if the customer's place of primary use is located within the boundaries of the political subdivision levying such local tax, charge, or fee. For purposes of this subsection, the provisions of Code Section 48-8-13 shall apply in the same manner and to the same extent as such provisions apply to the tax levied by Code Section 48-8-1 on mobile telecommunications services. This subsection shall not be construed to authorize the imposition of any tax, charge, or fee."

SECTION 2-2.

Said chapter is further amended in Code Section 48-8-30, relating to imposition, rate, and collection of tax, by adding a new subsection to read as follows: "(l)(1) On or after January 1, 2027, each sales tax return remitting taxes collected under this chapter shall include the location at which any of the taxes remitted were collected, including separate line items for collections made within the city limits of a municipality and collections made within an unincorporated area of a county. Vendors submitting such sales tax returns shall provide a North American Industry Classification System code with each respective sales tax return.

(2) The commissioner shall compile and organize sales tax data differentiating sales made within the limits of a municipality from sales made within the unincorporated area of a county. In the event that a municipality is located in more than one county, the compiled sales tax data shall distinguish between such sales made within the municipal limits of each respective county.

(3) On or before December 31 of each calendar year beginning on and after January 1, 2027, the commissioner shall publish on the department's website the aggregate sales tax data specified by the North American Industry Classification System."

SECTION 2-3.

Said chapter is further amended in paragraph (1) of subsection (a) of Code Section 48-8-201, relating to intergovernmental contract for distribution of tax proceeds, approval of referendum by voters, cap on aggregate amount of tax, and rate, by striking "paragraph (2) of subsection (a)" and replacing it with "subsection (b)".

SECTION 2-4.

Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to specific, business, and occupation taxes, is amended in division (b)(7)(B)(ii) of Code Section 48-13-51, relating to county and municipal levies on public accommodations charges for promotion of tourism, conventions, and trade shows, by striking "subsection (c.1) of Code Section 48-8-6 and".

PART III

SECTION 3-1.

Article 2B of Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to special district option sales and use tax (FLOST), is 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 adoption of a resolution and the other requirements of this article, there may be imposed 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) As conditions precedent to the issuance of the call for the referendum adoption of a resolution by the governing authority to impose a levy pursuant to this article:

(1) 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 in such county that levy 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, shall have in effect a base year value homestead exemption or adjusted base year value homestead exemption, except that such condition precedent shall not apply with respect to any municipality that levies an ad 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; and

(2) 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 subsection (f) of this Code section, 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.

(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.

(2) If the combined total of the populations of all 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 governing authorities entering into such intergovernmental agreement shall, in 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 or 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.

(f) 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 3-2.

Said article is further amended by revising 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, expenses of election, and resolution, as follows:

"48-8-109.32.

(a) Except as otherwise provided in subsection (b) of this Code section, the The intergovernmental agreement required by this article shall specify the maximum period of time of the tax, to be stated in calendar years or calendar quarters not to exceed five years in total; provided, however, that any intergovernmental agreement in effect on the day prior to the effective date of this Act may be extended by resolution of the governing authorities which are party to such agreement.

(b) On and after the effective date of this Act, the intergovernmental agreement required by this article shall specify the maximum period of time of the tax, to be stated in calendar years or calendar quarters not to exceed ten years in total.

(b) Each such intergovernmental agreement shall prescribe that the county election superintendent shall issue the call for an election for the purpose of submitting the question of the imposition of the tax authorized by this article to the voters of the county. The call for and conduct of any such election shall be in the manner authorized under Code Section 21-2-540, on a date specified by the intergovernmental agreement from among the dates allowed under paragraph (2) of subsection (c) of Code Section 21-2-540. Such election superintendent shall cause the date and purpose of the election to be published once a week for four weeks immediately preceding the date of the election in the legal organ of the county or in a newspaper having general circulation in the county at least equal to that of the legal organ.

(c) The exact ballot language shall be prescribed in the intergovernmental agreement which imposes the tax authorized by this article, but shall contain, at a minimum, the purpose of the tax, the rate of the tax, and the duration for which the tax shall be imposed.

(d) All persons desiring to vote in favor of imposing the tax shall vote 'Yes' and all persons opposed to levying the tax shall vote 'No.' If more than one-half of the votes cast are in favor of imposing the tax, then the tax shall be imposed as provided in this article; otherwise, the tax shall not be imposed and the question of imposing the tax shall not again be submitted to the voters of the special district until after 12 months immediately following the month in which the election was held; provided, however, that, if an election date authorized under paragraph (2) of subsection (c) of Code Section 21-2-540 occurs during the twelfth month immediately following the month in which such election was held, the question of imposing the tax may be submitted to the voters of the special district on such date. The county election superintendent shall hold and conduct the election under the same rules and regulations as govern special elections. Such election superintendent shall canvass the returns, declare the result of the election, and certify the result to the Secretary of State and to the commissioner. The expense of the election shall be paid from county funds.

(e)(c) 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."

SECTION 3-3.

Said article is further amended by revising Code Section 48-8-109.33, relating to timing for imposition of tax following approval and termination of tax, as follows:

"48-8-109.33.

(a)(1) If the imposition of the tax is approved by referendum Following the adoption of a resolution or intergovernmental agreement in accordance with the provisions of this article, the tax shall be imposed on the date specified in such resolution or agreement; provided, however, that such date shall not be earlier than the first day of the next succeeding calendar quarter which begins more than 50 30 days after the date of the election at which the tax was approved by the voters that such resolution or agreement is received by the commissioner.

(2) With respect to services that are regularly billed on a monthly basis, however, 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 intergovernmental agreement or and resolution required to impose the tax authorized by this article shall be forwarded to the commissioner to ensure it is received within five business days after certification of the election results of adoption of such intergovernmental agreement and resolution.

(b) The tax shall cease to be imposed on the final day of the maximum period of time specified for the imposition of the tax.

(c) For any special district in which a tax authorized by this article is in effect, 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 Sections

48-8-109.31 and 48-8-109.32. Such newly authorized tax shall not be imposed until the expiration of the tax then in effect."

SECTION 3-4.

Said article is further amended by revising Code Section 48-8-109.36, relating to distribution of proceeds, as follows:

"48-8-109.36.

The proceeds of the tax collected by the commissioner under this article shall be disbursed as soon as practicable after collection as follows:

(1) One percent of the amount collected shall be paid into the general fund of the state treasury to defray the costs of administration; and

(2) The remaining proceeds of the tax shall be distributed to the county whose boundary is conterminous with the boundary of the special district, or in the instance of multiple political subdivisions, to be distributed thereafter by such county among the political subdivisions within the special district in accordance with the distribution schedule, which shall be prescribed in the intergovernmental agreement imposing the tax, or in the absence of such intergovernmental agreement, based on a pro rata distribution corresponding to the relative reduction in ad valorem property tax revenues that were not received by each such political subdivision due to the state-wide homestead exemptions provided pursuant to Code Section 48-5-44.2."

SECTION 3-5.

Said article is further amended by revising Code Section 48-8-109.42, relating to use of tax proceeds, property tax relief requirements, and noncompliance, as follows:

"48-8-109.42.

(a) Any proceeds received by a political subdivision from the tax authorized by this article shall be used by such political subdivision exclusively for tax relief and in conjunction with all limitations provided in the intergovernmental agreement authorizing the tax for such political subdivision to offset the reduction in ad valorem property tax revenues that were not received by such political subdivision due to the state-wide homestead exemptions provided pursuant to Code Section 48-5-44.2.

(b)(1) Each taxpayer's ad valorem tax bill shall clearly state the dollar amount by which the property tax has been reduced as a result of the imposition of the tax imposed under this article.

(2) The roll-back rate for the political subdivision, which is calculated under Code Section 48-5-32.1, shall be reduced annually by the millage equivalent of the net proceeds of the tax authorized under this article, which proceeds were received by the political subdivision during the prior taxable year.

(b)(1) In the event that the proceeds collected pursuant to this article exceed the total revenue necessary to provide complete offset for each political subdivision or subdivisions equal to the ad valorem property tax revenues that were not received by each such political subdivision due to the state-wide homestead exemptions provided pursuant to Code Section 48-5-44.2, the excess proceeds may be used to offset reductions in ad valorem property tax revenues due to property tax exemptions provided by any such political subdivision or subdivisions for nonhomestead properties within the respective political subdivisions.

(2) In the event proceeds remain following the application of paragraph (1) of this subsection, such excess proceeds may be used by the eligible political subdivision or subdivisions for funding all or any portion of those services which are to be provided by such eligible political subdivision or subdivisions pursuant to and in accordance with Article IX, Section II, Paragraph III of the Constitution of this state.

(c) If any political subdivision is not in compliance with the use of the proceeds of a tax levied under this article, the commissioner shall not certify the tax digest of such political subdivision until it complies with this Code section."

PART IV

SECTION 4-1.

Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to ad valorem taxation of property, is amended by revising Code Section 48-5-44.2, relating to base year homestead exemption, as follows:

"48-5-44.2.

(a) For purposes of this Code section, the term:

(1) 'Ad valorem taxes' means all ad valorem taxes levied by, for, or on behalf of the state or any county, consolidated government, or municipality, or local school district in this state, except for any ad valorem taxes levied to pay interest on and to retire bonded indebtedness.

(2) 'Adjusted base year assessed value' means the sum of:

(A) The previous adjusted base year assessed value;

(B) An amount equal to the difference between the current year assessed value of the homestead and the base year assessed value of the homestead, provided that such amount shall not exceed the total of the previous adjusted base year assessed value of the homestead multiplied by the inflation rate for the prior year; and

(C) The value of any substantial property change, provided that no such value added improvements to the homestead shall be duplicated as to the same addition or improvement.

(3) 'Base year assessed value' means:

(A) With respect to an exemption under this Code section which is first granted to a person on such person's homestead for the 2025 taxable year, the assessed value for taxable year 2024, including any final determination of value on appeal pursuant to Code Section 48-5-311, of the homestead; or

(B) In all other cases, the assessed value, including any final determination of value on appeal pursuant to Code Section 48-5-311, of the homestead from the taxable year immediately preceding the taxable year in which the exemption under this Code section is first granted to the applicant.

(4)(2) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40, 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 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.

(5) 'Inflation rate' means the annual inflationary index rate as determined for a given year by the commissioner in accordance with subsection (g) of this Code section.

(6) 'Previous adjusted base year assessed value' means:

(A) With respect to the year for which the exemption under this Code section is first granted to a person on such person's homestead, the base year assessed value; or

(B) In all other cases, the adjusted base year assessed value of the homestead as calculated in the taxable year immediately preceding the current year, including any final determination of value on appeal pursuant to Code Section 48-5-311.

(7) 'Substantial property change' means any increase or decrease in the assessed value of a homestead derived from additions or improvements to, or the removal of real property from, the homestead which occurred after the year in which the base year assessed value is determined for the homestead. The assessed value of the substantial property changes shall be established following any final determination of value on appeal pursuant to Code Section 48-5-311.

(b)(1) Subject Beginning January 1, 2027, and subject to the limitations provided in this Code section, each resident of this state is granted an exemption on that person's homestead from ad valorem taxes in an amount equal to:

(A) For taxable year 2027, 10 percent of the value of the homestead;

(B) For taxable year 2028, 20 percent of the value of the homestead;

(C) For taxable year 2029, 30 percent of the value of the homestead;

(D) For taxable year 2030, 40 percent of the value of the homestead; and

(E) For taxable year 2031 and thereafter, 50 percent of the value of the homestead. the amount by which the current year assessed value of that homestead, including any final determination of value on appeal pursuant to Code Section 48-5-311, exceeds its previous adjusted base year assessed value.

(2) Except as provided for in subsection (c) of this Code section, no exemption provided for in this subsection shall transfer to any subsequent owner of the property, and the assessed value of the property shall be as provided by law.

(c) The surviving spouse of the person who has been granted the exemption provided for in subsection (b) of this Code section shall continue to receive the exemption provided under subsection (b) of this Code section, so long as such surviving spouse continues to occupy the residence as a homestead.

(d) No person shall receive the exemption granted by subsection (b) of this Code section unless such person or person's agent files an application with the tax receiver or tax commissioner of his or her respective local government or governments charged with the duty of receiving returns of property for taxation giving such information relative to receiving such exemption as will enable such tax receiver or tax commissioner to make a determination regarding the initial and continuing eligibility of such person for such exemption; provided, however, that any person who had previously applied for a homestead exemption, was allowed such homestead exemption for the 2024 2026 tax year, and remains eligible for a homestead exemption for that same homestead property in the 2025 2027 tax year shall be automatically allowed the exemption granted under subsection

(b) of this Code section for that homestead without further application. Such tax receiver or tax commissioner shall provide application forms for this purpose.

(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 for such person or such person's surviving spouse to make application thereafter for any year, and the exemption shall continue to be allowed to such person or such person's surviving spouse. It shall be the duty of any person granted the homestead exemption under subsection (b) or (c) 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. (f)(1) Except as otherwise provided in paragraph (2) of this subsection, the homestead exemption granted by subsection (b) of this Code section shall be in addition to and not in lieu of any other homestead exemption applicable to ad valorem taxes.

(2) The homestead exemption granted by subsection (b) of this Code section shall not be applied in addition to any other base year value homestead exemption provided by law with respect to the given taxing jurisdiction to which the such law applies. In any such event, the tax receiver or tax commissioner of the taxpayer's respective local government or governments charged with the duty of receiving returns of property for taxation shall apply only the base year value homestead exemption that is larger or more beneficial for the taxpayer with respect to the particular taxing jurisdictions to which more than one base year value homestead exemption applies.

(g) For the purposes of this Code section, the commissioner shall promulgate a standardized method for determining annual inflationary index rates which reflect the effects of inflation and deflation on the cost of living for residents of this state for a given calendar year. Such method may utilize the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department of Labor or any other similar index established by the federal government if the commissioner determines that such federal index fairly reflects the effects of inflation and deflation on residents of this state.

(h) The exemption granted by subsection (b) of this Code section shall apply to all taxable years beginning on or after January 1, 2025, provided that:

(1) A constitutional amendment is ratified and becomes effective on January 1, 2025, which authorizes the General Assembly to provide by general law for a homestead exemption that shall not be applicable to certain political subdivisions, which elect to opt out of the homestead exemption by a date certain; and

(2) The exemption granted by subsection (b) of this Code section shall not be applicable for any county, consolidated government, municipality, or school district for which the governing authority of such political subdivision adopts an opt-out resolution in accordance with subsection (i) of this Code section.

(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 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:

(A) 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 (name of governing authority) intends to opt out of the statewide adjusted base year ad valorem homestead exemption for (name of the political subdivision). All concerned citizens are invited to the public hearing on this matter to be held at (place of meeting) on (date and time).

Times and places of additional public hearings on this matter are at (place of meeting) on (date and time).'

Simultaneously with this notice the governing authority shall provide a press release to the local media; and

(B) The advertisement required by subparagraph (A) of this paragraph 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.

(2) No election to opt out of the homestead exemption pursuant to this Code section shall become effective with respect to a political subdivision unless the procedures and hearings required by paragraph (1) of this subsection are completed and a copy of such resolution is filed with the Secretary of State by March 1, 2025.

(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 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."

SECTION 4-2.

Said chapter is further amended in Code Section 48-5-34, relating to tax bill and procedures and requirements, by repealing subsection (c).

PART V

SECTION 5-1.

Part 4 of Article 6 of Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to financing under the "Quality Basic Education Act," is amended in Code Section 20-2-164, relating to local five mill share funds, by revising subsection (g) as follows:

"(g) For purposes of calculation under this Code section and Code Section 20-2-165, the equalized adjusted school property tax digest, adjusted by paragraph (1) of subsection (a) of this Code section, shall be reduced by the sum of the following products:

(1) The product of the number of constitutional homestead exemptions for owner occupied homes pursuant to Code Section 48-5-44 granted for that year, exclusive of those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and 48-5-52, multiplied by the amount per exemption authorized under Code Section 48-5-44; provided, further, that, in any city operating an independent school system which provides a homestead exemption through local legislation comparable to that provided in Code Section 48-5-44, the product calculated in this paragraph shall represent the number of homestead exemptions provided through the applicable local legislation multiplied by the amount per exemption authorized in Code Section 48-5-44, or by the amount per exemption authorized in the applicable local legislation, whichever is less; and provided, further, that, if the amount per exemption authorized in Code Section 48-5-44 has been changed subsequent to the year of the applicable digest, the more recently adopted amount per exemption shall be used for the product calculated in this paragraph;

(2) The product of the number of constitutional homestead exemptions for disabled veterans pursuant to Code Section 48-5-48 granted for that year, multiplied by the amount per exemption authorized under that Code section; provided, further, that, in any city operating an independent school system which provides a homestead exemption through local legislation comparable to that provided in Code Section 48-5-48, the product calculated in this paragraph shall represent the number of homestead exemptions provided through the applicable local legislation multiplied by the amount per exemption authorized in the applicable local legislation, whichever is less; and provided, further, that, if the amount per exemption authorized in Code Section 48-5-48 has been changed subsequent to the year of the applicable digest, the more recently adopted amount per exemption shall be used for the product calculated in this paragraph;

(3) The product of the estimated number of persons age 65 or older residing in the local school system during that year multiplied by 5,000;

(4) The product which results from the following calculations:

(A) Subtract the estimated state-wide percentage that persons age 65 or older is of the total population, excluding military personnel and institutional population, from the respective percentage for the local school system. If the respective percentage for the local school system is less than the state-wide percentage, a difference of zero shall be used in the calculations in this paragraph;

(B) Multiply the difference which results from subparagraph (A) of this paragraph by 1,000; and

(C) Multiply the product which results from subparagraph (B) of this paragraph by the estimated number of persons age 65 or older residing in the local school system during that year; and

(5) The product which results from the following calculations:

(A) Divide the amount reported in paragraph (4) of subsection (e) of this Code section by the average ratio of assessed value to true value used to calculate the most recent equalized adjusted school property tax digest pursuant to Code Section 48-5-274; and

(B) Multiply the quotient which results from subparagraph (A) of this paragraph by .4;

(6) The difference between the assessed value and the net taxable assessed value of all properties for which an exemption pursuant to Code Section 48-5-44.2 was granted for that year;

(7) The difference between the assessed value and the net taxable assessed value of all properties for which an exemption authorized pursuant to a local constitutional amendment or Article VII, Section II, Paragraph II(a) of the Constitution was granted in that year; and

(8) The product of the value of all homestead property for which homestead exemptions pursuant to Code Section 48-5-44.2 were granted for that year, multiplied by .4."

SECTION 5-2.

Said part is further amended in Code Section 20-2-167.1, relating to public meetings on proposed annual operating budget, notice, electronic copies, and exception for certain nonprofits, by revising subsection (b) as follows:

"(b)(1) Each governing body shall hold at least two public meetings, which shall not occur within the same week, for the purpose of providing an opportunity for public input on its proposed annual operating budget before adopting any budget; provided, however, that any other public meeting or hearing held that is related to the budget as required by law shall satisfy all or a portion of such requirement. The governing body of a charter school with a state-wide attendance zone and students residing in 25 percent or more of Georgia's counties or in three or more counties which are not geographically contiguous shall conduct one such public meeting virtually and one such public meeting in the county in which its primary business office is located. The public meetings shall be advertised in a local newspaper of general circulation which shall be the same newspaper in which other legal announcements of the board of education are advertised. (2)(A)(i) On and after January 1, 2027, no proposed annual operating budget resolution that would result in an increase in the revenues raised by the local board of education from the levy and collection of ad valorem property taxes by an amount that exceeds the greater of 3 percent or the percent change in the rate of economic inflation on individual taxpayers as determined under the Consumer Price Index, as reported by the Bureau of Labor Statistics of the United States Department of Labor, of the amount of such revenues raised by the local board of education shall go into effect unless the General Assembly enacts a local Act authorizing such increase or the electors of the local school system have approved such budget resolution in a referendum election. In calculating whether a proposed annual operating budget resolution would result in such an increase in the revenues raised by the local board of education, increases in revenue attributable to the levies of sales and use taxes collected for the purpose of providing property tax relief shall be counted, but increases in revenue attributable to any assessments other than those included in the determination of total net assessed value added by reassessments, as such term is defined in Code Section 48-5-32.1, and the levies of ad valorem property tax for costs incurred pursuant to a state of emergency declared by any federal, state, or local emergency management agency, official, or authority shall not be counted.

(ii) The call for and conduct of any such election shall be in the manner authorized under Code Section 21-2-540. The costs of any referendum held pursuant to this paragraph shall be paid by the local board of education. The exact ballot language shall be prescribed by the local board of education but shall contain, at a minimum, the projected amount of revenue to be generated by the budget resolution; the amount of revenue received by the local board of education in the previous fiscal year; and a statement as to whether or not such projected revenue increase is the result of an increase in the levy or rate of ad valorem property taxes. All persons desiring to vote in favor of the budget resolution shall vote 'Yes' and all persons opposed to the budget resolution shall vote 'No.' If more than one-half of the votes cast are in favor of the budget resolution, then the budget resolution shall go into effect as provided by law; otherwise, the budget resolution shall either:

(I) Not go into effect and the local board of education shall prepare a new proposed budget which is projected not to increase the revenues raised by the local board of education by an amount that exceeds the 3 percent limitation provided for in this subparagraph; or

(II) Go into effect and the local board of education shall be required to reduce its proposed budget for the subsequent year by an amount corresponding to the unapproved increase exceeding the 3 percent limitation.

(B) A local board of education shall not be required to hold either or both of the public meetings required under paragraph (1) of this subsection after a proposed annual operating budget resolution has been approved in a referendum election required under subparagraph (A) of this paragraph.

(C) Nothing in this paragraph shall be construed to require that the public meetings of a local board of education required under paragraph (1) of this subsection shall be held at any particular time either prior to or following the referendum election required under subparagraph (A) of this paragraph."

SECTION 5-3.

Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended in Code Section 36-81-3, relating to establishment of fiscal year, requirement of annual balanced budget, adoption of budget ordinances or resolutions generally, budget amendments, and uniform chart of accounts, by revising subsection (d) as follows: "(d) Nothing contained in this Code section shall preclude a local government from amending its budget so as to adapt to changing governmental needs during the budget period; provided, however, that, on and after January 1, 2027, no such amendment shall result in an increase in the revenues raised by the unit of local government from the levy and collection of ad valorem property taxes by an amount that exceeds the greater of 3 percent or the percent change in the rate of economic inflation on individual taxpayers as determined under the Consumer Price Index, as reported by the Bureau of Labor Statistics of the United States Department of Labor, of the amount of such revenues which would be raised by the unit of local government; provided, further, that, in calculating whether a proposed annual operating budget resolution would result in such an increase in the revenues raised by the local board of education, increases in revenue attributable to the levies of sales and use taxes collected for the purpose of providing property tax relief shall be counted, but increases in revenue attributable to any assessments other than those included in the determination of total net assessed value added by reassessments, as such term is defined in Code Section 48-5-32.1, and the levies of ad valorem property tax for costs incurred pursuant to a state of emergency declared by any federal, state, or local emergency management agency, official, or authority shall not be counted. Amendments shall be made as follows, unless otherwise provided by charter or local law:

(1) Any increase in appropriation at the legal level of control of the local government, whether accomplished through a change in anticipated revenues in any fund or through a transfer of appropriations among departments, shall require the approval of the governing authority. Such amendment shall be adopted by ordinance or resolution;

(2) Transfers of appropriations within any fund below the local government's legal level of control shall require only the approval of the budget officer; and

(3) The governing authority of a local government may amend the legal level of control to establish a more detailed level of budgetary control at any time during the budget period. Said amendment shall be adopted by ordinance or resolution."

SECTION 5-4.

Said title is further amended by revising Code Section 36-81-6, relating to adoption of budget ordinance or resolution and form of budget, as follows:

"36-81-6.

(a)(1) On a date after the conclusion of the hearing required in subsection (f) of Code Section 36-81-5, the governing authority shall adopt a budget ordinance or resolution making appropriations in such sums as the governing authority may deem sufficient, whether greater or less than the sums presented in the proposed budget. The budget ordinance or resolution shall be adopted at a public meeting which shall be advertised in accordance with the procedures set forth in subsection (e) of Code Section 36-81-5 at least one week prior to the meeting, except as otherwise provided in paragraph (2) of this subsection.

(2)(A) On and after January 1, 2027, if such budget ordinance is projected to result in an increase in the revenues raised by the unit of local government from the levy and collection of ad valorem property taxes by an amount that exceeds the greater of 3 percent or the percent change in the rate of economic inflation on individual taxpayers as determined under the Consumer Price Index, as reported by the Bureau of Labor Statistics of the United States Department of Labor, of the amount of such revenues raised by the unit of local government, then such budget ordinance shall not go into effect unless the General Assembly enacts a local Act authorizing such increase or the electors of the unit of local government have approved such budget ordinance in a referendum election. In calculating whether a proposed annual operating budget resolution would result in such an increase in the revenues raised by the local board of education, increases in revenue attributable to the levies of sales and use taxes collected for the purpose of providing property tax relief shall be counted, but increases in revenue attributable to any assessments other than those included in the determination of total net assessed value added by reassessments, as such term is defined in Code Section 48-5-32.1, and the levies of ad valorem property tax for costs incurred pursuant to a state of emergency declared by any federal, state, or local emergency management agency, official, or authority shall not be counted.

(B) The call for and conduct of any such election shall be in the manner authorized under Code Section 21-2-540. The costs of any referendum held pursuant to this paragraph shall be paid by the unit of local government adopting such budget ordinance. The exact ballot language shall be prescribed by the governing authority adopting the budget ordinance but shall contain, at a minimum, the projected amount of revenue to be generated by the budget ordinance; the amount of revenue received by the unit of local government in the previous fiscal year; and a statement as to whether or not such projected revenue increase is the result of an increase in the levy or rate of ad valorem property taxes. All persons desiring to vote in favor of the budget ordinance shall vote 'Yes' and all persons opposed to the budget ordinance shall vote 'No.' If more than one-half of the votes cast are in favor of the budget ordinance, then the budget ordinance shall go into effect as provided by law; otherwise, the budget ordinance shall either:

(i) Not go into effect and the unit of local government shall prepare a new proposed budget pursuant to Code Section 36-81-5 which is projected not to increase the revenues raised by the unit of local government by an amount that exceeds the 3 percent limitation provided for in this subsection; or

(ii) Go into effect and the unit of local government shall be required to reduce its proposed budget for the subsequent year by an amount corresponding to the unapproved increase exceeding the 3 percent limitation.

(b) The budget may be prepared in any form that the governing authority deems most efficient in enabling it to make the fiscal policy decisions embodied in the budget, but such budget shall be subject to the provisions of this article."

PART VI

SECTION 6-1.

Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to ad valorem taxation of property, is amended by revising Code Section 48-5-32.1, relating to certification of assessed taxable value of property and method of computation, resolution or ordinance required for millage rate, and advertisement of intent to increase property tax, as follows:

"48-5-32.1.

(a) As used in this Code section, the term:

(1) 'Ad valorem tax' or 'property tax' means a tax imposed upon the assessed value of real property.

(2) 'Certified tax digest' means the total net assessed value on the annual property tax digest certified by the tax commissioner of a taxing jurisdiction to the department and authorized by the commissioner for the collection of taxes, or, in the case where the governing authority of a county whose digest has not been approved by the commissioner has petitioned the superior court of the county for an order authorizing the immediate and temporary collection of taxes, the temporary digest so authorized.

(3) 'Levying authority' means a county, a municipality, or a consolidated city-county governing authority or other governing authority of a political subdivision of this state that exercises the power to levy ad valorem taxes to carry out the governing authority's purposes.

(4) 'Mill' means one one-thousandth of a United States dollar.

(5) 'Millage' or 'millage rate' means the levy, in mills, which is established by the governing authority for purposes of financing, in whole or in part, the taxing jurisdiction's expenses for its fiscal year.

(6) 'Millage equivalent' means the number of mills which would result when the total net assessed value added by reassessments is divided by the certified tax digest and the result is multiplied by the previous year's millage rate.

(7) 'Net assessed value' means the taxable assessed value of property after all exemptions.

(8) 'Recommending authority' means a county, independent, or area school board of education that exercises the power to cause the levying authority to levy ad valorem taxes to carry out the purposes of such board of education.

(9) 'Roll-back rate' means the previous year's millage rate minus the millage equivalent of the total net assessed value added by reassessments:

(A) As calculated and certified to the commissioner by the tax commissioner for county and educational tax purposes; and

(B) As calculated by the collecting officer of the municipality for municipal tax purposes.

(10) 'Taxing jurisdiction' means all the real property subject to the levy of a specific levying authority or the recommended levy of a specific recommending authority.

(11) 'Total net assessed value added by reassessments' means the total net assessed value added to the certified tax digest as a result of revaluation of existing real property that has not been improved since the previous tax digest year.

(b) At the time of certification of the digest, the tax receiver or tax commissioner shall also certify to the recommending authority and levying authority of each taxing jurisdiction the total net assessed value added by reassessments contained in the certified tax digest for that tax digest year of the taxing jurisdiction.

(c)(1) Whenever a recommending authority or levying authority shall propose to adopt a millage rate which does not exceed the roll-back rate, it shall adopt that millage rate at an advertised public meeting and at a time and place which is convenient to the taxpayers of the taxing jurisdiction, in accordance with the procedures specified under Code Section

48-5-32.

(2) In those instances in which the recommending authority or levying authority proposes to establish a general maintenance and operation millage rate which would require increases beyond the roll-back rate, the recommending authority or levying authority shall:

(A) Advertise 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 recommending authority or levying authority shall place an advertisement in a newspaper of general circulation serving the residents of the unit of local government and post such advertisement on the website of the recommending or levying authority, which shall read as follows: 'NOTICE OF PROPERTY TAX INCREASE

The (name of recommending authority or levying authority) has tentatively adopted a millage rate which will require an increase in property taxes by (percentage increase over roll-back rate) percent.

All concerned citizens are invited to the public hearing on this tax increase to be held at (place of meeting) on (date and time).

Times and places of additional public hearings on this tax increase are at (place of meeting) on (date and time).

This tentative increase will result in a millage rate of (proposed millage rate) mills, an increase of (millage rate increase above the roll-back rate) mills. Without this tentative tax increase, the millage rate will be no more than (roll-back millage rate) mills. The proposed tax increase for a home with a fair market value of (average home value from previous year's digest rounded to the nearest $25,000.00) is approximately $(increase) and the proposed tax increase for nonhomestead property with a fair market value of (average nonhomestead property value from previous year's digest rounded to nearest $25,000.00) is approximately $(increase).'

Simultaneously with this notice the recommending authority or levying authority shall provide a press release to the local media; and

(B) Notify each taxpayer with property in the taxing jurisdiction, by mail directed to the taxpayer's last known address, of the proposed intent to exceed the roll-back rate at least ten days in advance of the first public hearing. Alternatively, the recommending authority or levying authority may transmit the notice to the taxpayer by electronic means at least ten days in advance of the first public hearing, if such taxpayer and county clerk have consented in writing to service by electronic means. The county clerk shall consolidate the required information for all taxing subdivisions relevant to the taxpayer's property on one notice. The notice shall include, but not be limited to:

(i) The roll-back rate;

(ii) The proposed property tax revenue needed to fund the proposed budget;

(iii) The proposed millage rate based upon the proposed budget and the current year's total assessed valuation;

(iv) The millage rate and property tax of the taxing jurisdiction on the taxpayer's property from the previous year's tax statement;

(v) The proposed percent change in the millage rate between the previous year's tax rate and the proposed tax rate for the current year;

(vi) The appraised value and assessed value of the taxpayer's property for the current year;

(vii) The estimates of the tax for the current tax year on the taxpayer's property based on the roll-back rate and the proposed millage rate; and

(viii) The dates, times, and locations of the public hearings.

(3) The advertisement shall appear at least one week prior to each hearing, be prominently displayed, not be 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 such tax increase.

(4) The recommending authority or levying authority shall provide interested taxpayers of the taxing jurisdiction desiring to be heard an opportunity to present oral testimony within reasonable time limits and without unreasonable restriction on the number of individuals allowed to make public comment.

(4)(5) No recommending authority shall recommend and no levying authority shall levy a millage rate in excess of the proposed millage rate as established pursuant to paragraph (2) of this subsection without beginning anew the procedures and hearings required by this Code section and those required by Code Section 48-5-32. (5)(6) Any notice or hearing required under this Code section may be combined with any notice or hearing required under Article 1 of Chapter 81 of Title 36 or Code Section 48-5-32.

(d) Nothing contained in this Code section shall serve to extend or authorize any millage rate in excess of the maximum millage rate permitted by law or to prevent the reduction of the millage rate.

(e) The commissioner shall not accept a digest for review or issue an order authorizing the collection of taxes if the recommending authority or levying authority other than municipal governing authorities has established a millage rate that is in excess of the correct rollback without complying fully with the procedures required by this Code section. In the event a digest is not accepted for review by the commissioner pursuant to this subsection, it shall be accepted for review upon satisfactory submission by such authorities of such evidence. The levies of each of the levying authorities other than the county governing authority shall be invalid and unenforceable until such time as the provisions of this Code section have been met.

(f) Any recommending authority or levying authority that does not comply with the provisions of subsection (c) of this Code section shall refund to taxpayers any property taxes over-collected based on the amount of the levy that was in excess of the roll-back rate. The provisions of this subsection shall not be construed as prohibiting any other remedies available under the law.

(f)(g) The commissioner shall promulgate such rules and regulations as may be necessary for the administration of this Code section."

PART VII

SECTION 7-1.

(a) It shall be the duty of the Secretary of State to issue the call for a nonbinding, advisory referendum election to determine whether the qualified electors of the State of Georgia desire that the Georgia General Assembly allow Georgians to decide whether to authorize new finance procedures for local governments and school systems for the purpose of providing complete property tax relief for homeowners. The Secretary of State shall conduct the referendum election as provided in this section on the date of the November, 2026, general election. The Secretary of State shall issue the call and conduct that referendum election as provided by general law.

(b) The ballot at the referendum election provided under this section shall have displayed or printed thereon the following:

"( ) YES Should the Georgia General Assembly allow Georgians to decide whether to authorize new finance procedures for local governments and school ( ) NO systems for the purpose of providing complete property tax relief for homeowners?"

(c) It shall be the duty of the Secretary of State to tabulate and certify the results of the referendum election and report said results to the Governor and the General Assembly immediately following such certification.

PART VIII

SECTION 8-1.

It is the intent of the General Assembly that all sales tax revenue collected on and after January 1, 2029, on the sale or lease of computer equipment to be incorporated into a facility or facilities in this state to a high-technology company as described in subparagraph (A) of paragraph (68) of Code Section 48-8-3, as it exists on December 31, 2028, shall be appropriated for purposes of homestead property tax relief grants to counties, municipalities, and local school systems pursuant to Code Section 36-89-2.

PART IX

SECTION 9-1.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 9-2.

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