Senate Bill 584
By: Senators Burns of the 23rd, Anavitarte of the 31st, Dickerson of the 21st, Strickland of
the 42nd, Hatchett of the 50th and others
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 9-11-23 and Article 7 of Chapter 5 of Title 48 of the Official Code
of Georgia Annotated, relating to class actions and miscellaneous local administrative
provisions relative to ad valorem taxation of property, respectively, so as to prohibit class
action suits by taxpayers for refunds; to provide for related matters; to provide for an
effective date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Code Section 9-11-23 of the Official Code of Georgia Annotated, relating to class actions,
is amended by revising subsection (e) as follows:
"(e) <del>A</del> <ins>Except as otherwise provided in subsection (h) of Code Section 48-5-380, a</ins> class
action shall not be dismissed or compromised without the approval of the court, and notice
of the proposed dismissal or compromise shall be given to all members of the class in such
manner as the court directs."
SECTION 2.
Article 7 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to
miscellaneous local administrative provisions relative to ad valorem taxation of property, is
amended by revising Code Section 48-5-380, relating to refunds of taxes and license fees by
counties and municipalities, time and manner of filing claims and actions for refund, and
authority to approve or disapprove claims, as follows:
"48-5-380.
(a) As provided in this Code section, each county and municipality shall refund to
taxpayers any and all taxes and license fees:
(1) Which are determined to have been erroneously or illegally assessed and collected
from the taxpayers under the laws of this state or under the resolutions or ordinances of
any county or municipality; or
(2) Which are determined to have been voluntarily or involuntarily overpaid by the
taxpayers.
(a.1) If property owners have been billed and have remitted property tax payments to
either a county or a municipality based on the fair market value of the land and
subsequently the fair market value of such land is reduced on an appeal, then the county
or the municipality shall reimburse the property owner the difference between tax remitted
and the final tax owed for each year in which the incorrect fair market value of the land
was used in the calculations.
(b) Any taxpayer from whom a tax or license fee was collected who alleges that such tax
or license fee was collected illegally or erroneously may file a claim for a refund with the
governing authority of the county or municipality at any time within one year or, in the
case of taxes, three years after the date of the payment of the tax or license fee to the
county or municipality. The claim for refund shall be in writing and shall be in the form
and shall contain the information required by the appropriate governing authority. The
claim shall include a summary statement of the grounds upon which the taxpayer relies.
In the event the taxpayer desires a conference or hearing before the governing authority in
connection with any claim for a refund, the taxpayer shall so specify in writing in the
claim. If the claim conforms to the requirements of this Code section, the governing
authority shall grant a conference at a time specified by the governing authority. The
governing authority shall consider information contained in the taxpayer's claim for a
refund and such other information as is available. The governing authority shall approve
or disapprove the taxpayer's claim and shall notify the taxpayer of its action. In the event
any claim for refund is approved, the governing authority shall proceed under
subsection (a) of this Code section to give effect to the terms of that subsection. No refund
provided for in this Code section shall be assignable. Submitting a request for refund to
the governing authority is not a prerequisite to bringing suit.
(c) The filing of a request for a refund with the governing authority under subsection (b)
of this Code section shall act to stay the time period for initiating suit for a refund.
Following the filing of a request for refund with the governing authority, no suit may be
commenced until the earlier of the governing authority's denial of the request for refund
or the expiration of 90 days from the date of filing the claim. Alternatively, any taxpayer
may forgo requesting a refund from the governing authority under subsection (b) of this
Code section and elect to proceed directly to filing suit.
(d) Any refunds approved or allowed under this Code section shall be paid from funds of
the county, the municipality, the county board of education, the state, or any other entity
to which the taxes or license fees were originally paid. Refunds shall be paid within 60
days of the approval of the taxpayer's claim or within 60 days of the entry of a final
decision in any action for a refund.
(e) The governing authority of any county, by resolution, and the governing authority of
any municipality, by ordinance, shall adopt rules and regulations governing the
administration of this Code section and may delegate the administration of this Code
section, including the approval or disapproval of claims where the reason for the claim is
based on an obvious clerical error, to an appropriate department in local government. In
disputed cases where there is no obvious error, the approval or disapproval of claims may
not be delegated by the governing authority.
(f) Nothing contained in subsections (b) or (c) of this Code section shall be deemed the
exclusive remedy to seek a refund nor deprive taxpayers of the right to seek a refund
mandated by subsection (a) by any other cause of action available at law or equity.
(g) Under no circumstances may a suit for refund be commenced more than five years
from the date of the payment of taxes or fees at issue.
<ins>(h) A claim, action, or suit for refund shall not be submitted or maintained by the taxpayer
on behalf of a class consisting of other taxpayers."
</ins> SECTION 3.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.