The House Committee on Ways & Means offers the following substitute to SR 56:
A RESOLUTION
Proposing an amendment to the Constitution so as to remove the cap on benefits granted
pursuant to the Homeowner's Incentive Adjustment clause; to authorize the General
Assembly to provide by general law for local grant and adjustment programs; to authorize
the General Assembly to provide for a local school system to impose a local option sales tax
to offset a reduction in homestead property tax relief; 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 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>
<ins>(b)</ins> The amount of <del>such adjustment</del> <ins>the adjustment applied pursuant to subparagraph (a)
of this Paragraph</ins> 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 <del>school districts</del> <ins>local school systems</ins> as homeowner tax relief grants.
<ins>(c)</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 2.
Article VIII, Section VI of the Constitution is amended by adding a new paragraph to read
as follows:
<ins>"Paragraph V. Local school system local option sales tax. The General Assembly may
provide by general law for local school systems to impose, levy, and collect a sales and use
tax for the purpose of property tax relief of such local school system. Such tax shall be at
the rate of 1 percent and shall be imposed for a period of time not to exceed five years.
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."
</ins> SECTION 3.
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 property tax relief be provided to homeowners by authorizing local
( ) NO grants and adjustments, by removing the current cap on benefits provided to
homeowners, and by authorizing the General Assembly to provide by general
law for a sales tax to offset such property tax relief?"
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.