HR1000: HR1000 Revenue and taxation; eliminate ad valorem tax assessment of certain timber at sale or harvest - CA

26 LC 44 9007S House Resolution 1000 (COMMITTEE SUBSTITUTE) By: Representatives Efstration of the 104 th, Williams of the 148 th, Dickey of the 134 th, Williams of the 168th, Buckner of the 137th, and others A RESOLUTION Proposing an amendment to the Constitution so as to eliminate the ad valorem tax assessment1 of certain timber at sale or harvest; to require state appropri ations to each county,2 municipality, or school district affected by such tax eliminati on; to provide for related3 matters; to provide for the submission of this amendment for ratification or rejection; and for4 other purposes.5 BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Article VII, Section I, Paragraph III of the Constitution is am ended by revising8 subparagraph (e)(2) and adding subparagraph (e)(3) to read as follows:9 "(2) That standing timber shall be assessed only once, and such assessment shall be10 made following its harvest or sale and on the basis of its fair market value at the time of11 harvest or sale. Said Except as provided in subparagraph (e)(3) of this Paragraph, said12 assessment shall be two and one-half times the assessed percentage of value fixed by law13 for other real property taxed under the uniformity provisions of subparagraph (a) of this14 Paragraph but in no event greater than its fair market value; a nd for a method of15 temporary supplementation of the property tax digest of any county if the implementation16 of this method of taxing timber reduces the tax digest by more than 20 percent, such17 H. R. 1000 (SUB) - 1 - 26 LC 44 9007S supplemental assessed value to be assigned to the properties otherwise benefiting from18 such method of taxing timber.19 (3)(A) That standing timber shall be assessed as otherwise pro vided in20 subparagraph (e)(2) of this Paragraph, except that the rate of the assessment under21 subparagraph (e)(2) of this Paragraph shall be reduced to zero percent for standing22 timber harvested or sold from property receiving preferential t reatment pursuant to23 subparagraph (c) of this Paragraph, subparagraph (e)(1) of this Paragraph, or24 subparagraph (f) of this Paragraph. Such methods of assessment and taxation shall be25 subject to the following conditions:26 (i) Any individual or individuals or any entity registered to do business in this state27 desiring the benefit of such methods of assessment and taxation for standing timber28 harvested or sold from property receiving preferential treatmen t pursuant to29 subparagraph (c) of this Paragraph, subparagraph (e)(1) of this Paragraph, or30 subparagraph (f) of this Paragraph shall be required to enter i nto a covenant to31 continue the property in a qualifying use; and32 (ii) A breach of such covenant within ten years of the harvest or sale of standing33 timber assessed at the rate provided for in this subparagraph (3)(A) shall result in a34 recapture of the tax savings resulting from such methods of assessment and taxation35 and may result in other appropriate penalties.36 (B) The General Assembly shall annually appropriate to each county, municipality,37 or school district that experienced an ad valorem revenue reduc tion during the38 preceding tax year resulting from the elimination of the ad valorem tax assessment of39 timber from the rate of assessment provided for in subparagraph (e)(2) of this Paragraph40 to the rate of assessment provided for in subparagraph (e)(3)(A) of this Paragraph, an41 amount equal to 100 percent of such revenue reduction for such tax year."42 H. R. 1000 (SUB) - 2 - 26 LC 44 9007S SECTION 2.43 The above proposed amendment to the Constitution shall be publi shed and submitted as44 provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the45 above proposed amendment shall have written or printed thereon the following:46 "( ) YES47 ( ) NO 48 49 50 51 Shall the Constitution of Georgia, for the purpose of encouraging timberland conservation, be amended so as to eliminate the ad valorem tax assessment of certain timber at sale or harvest and to require state appropriations to each county, municipality, or school district affected by such ad va lorem tax assessment elimination?" All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes." 52 All persons desiring to vote against ratifying the proposed amendment shall vote "No." If53 such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall54 become a part of the Constitution of this state.55 H. R. 1000 (SUB) - 3 -