HB1116: HB1116 Homeownership Opportunity and Market Equalization Act of 2026; enact

26 LC 59 0475S The Senate Committee on Finance offered the following substitute to HB 1116: A BILL TO BE ENTITLED AN ACT To amend Titles 20, 21, 36, and 48 of the Official Code of Geor gia Annotated, relating to1 education, elections, local government, and revenue and taxatio n, respectively, so as to2 provide for property tax reform; to establish a Local Homestead Option Sales Tax (LHOST);3 to provide for imposition, collection, and distribution of proceeds; to provide for definitions;4 to exclude amounts attributable to certain exemptions from ad v alorem taxation from the5 equalized adjusted school property tax digest for the purpose of calculating the local five mill6 share and equalization grants; to increase the cap on reserve funds for local school systems;7 to require the proposed annual operating budget resolution of a local board of education to8 be approved in a referendum election if such resolution would i ncrease certain revenues9 raised by the local board of education by a certain amount; to provide that certain proposed10 increases in revenue collections by local governments must be approved by the voters of such11 local government; to limit the dates of a special election pres enting a question by a local12 government to increase revenues; to require the production of c ertain information upon13 request of a tax assessor for the assessment of income-producin g property; to revise14 provisions relating to certification of assessed taxable value of property and method of15 computation, resolution or ordinance required for millage rate, and advertisement of intent16 to increase property tax; to require municipal and school offic ials to submit certain17 information relating to ad valorem taxes; to prohibit the retroactive assessment of additional18 - 1 - 26 LC 59 0475S ad valorem taxes to a taxpayer due to an improperly or mistaken ly applied homestead19 exemption at no fault of the taxpayer; to make conforming changes; to provide for related20 matters; to provide for short titles; to provide an effective d ate; to repeal conflicting laws;21 and for other purposes.22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:23 PART I24 SECTION 1-1.25 This Act shall be known and may be cited as the "Homeownership Opportunity and Market26 Equalization Act of 2026."27 PART II28 SECTION 2-1.29 Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use tax,30 is amended in Code Section 48-8-6, relating to prohibition of p olitical subdivisions from31 imposing various taxes, ceiling on local sales and use taxes, a nd taxation of mobile32 telecommunications, by revising subparagraph (a)(1)(C) as follows:33 "(C) Up to 1 percent in aggregate of any sales and use taxes au thorized under Code34 Section 48-8-96, Code Section 48-8-97, Article 2B of this chapt er, Article 2C of this35 chapter, Part 3 of Article 3 of this chapter, and Article 4 of this chapter."36 SECTION 2-2.37 Said chapter is further amended by adding a new article to read as follows:38 - 2 - 26 LC 59 0475S "ARTICLE 2C39 48-8-109.50.40 (a) This article shall be known and may be cited as the 'Local Homestead Option Sales41 Tax' (LHOST).42 (b) As used in this article, the term:43 (1) 'Eligible local government' means any county, consolidated government, or44 municipality for which a homestead exemption is in effect by lo cal Act in accordance45 with Code Section 48-8-109.52 and whose governing authority lev ied and derived46 revenue from an ad valorem tax on homestead property within the special district at a net47 millage rate of greater than zero in the tax year preceding the effective date of such local48 Act. Such term excludes any local government that levies the t ax authorized under49 Article 4 of this chapter.50 (2) 'Homestead property' means homestead as defined and qualif ied in Code51 Section 48-5-40, with the additional limitation that such term shall include:52 (A) Only the primary residence and not more than five contiguo us acres of land53 immediately surrounding such residence; or54 (B) If the property is assessed pursuant to Code Section 48-5-7.4 or 48-5-7.7, only the55 primary residence and the portion of the underlying property that is excluded from the56 benefit of such assessment pursuant to subparagraph (a)(1)(B) of Code Section 48-5-7.457 or subparagraph (b)(2)(B) of Code Section 48-5-7.7.58 (3) 'Local Homestead Option Sales Tax' or 'LHOST' means any special sales and use tax59 levied under this article to fund homestead exemptions granted by local Act for eligible60 local governments in accordance with this article.61 - 3 - 26 LC 59 0475S 48-8-109.51.62 (a) Pursuant to the authority granted by Article IX, Section I I, Paragraph VI of the63 Constitution of this state, there are created within this state 159 special districts. The64 geographical boundary of each c ounty shall correspond with and shall be conterminous65 with the geographical boundary of one of the 159 special districts.66 (b) The territory of each special district shall include all of the territory within the county,67 including all municipalities, to the extent the municipal bound aries lie within the68 geographical boundaries of the county.69 (c) The territory of each special district shall exclude any t erritory within which the tax70 provided for in Article 4 of this chapter is levied.71 48-8-109.52.72 (a) Subject to the requirements of this article and the sales tax rate limitations imposed by73 Code Section 48-8-6, beginning January 1, 2028, there shall be imposed within any special74 district a special sales and use tax to be levied and collected to fund homestead exemptions75 from ad valorem taxes imposed by eligible local governments on homestead property76 within the special district. Any such tax shall be known as an 'LHOST.'77 (b) An LHOST shall begin to be levied and collected in a given special district on the first78 day of the next succeeding calendar quarter which begins more t han 50 days after79 certification of the result of the election approving the local Act granting a homestead80 exemption in accordance with this article and applicable to the county or consolidated81 government that is conterminous with the special district.82 (c) Each local Act enacted pursuant to this article shall:83 (1) Be adopted and approved by local referendum in accordance with Article VII,84 Section II, Paragraph II(a)(2) of the Constitution;85 (2) Incorporate, by reference to this article, the terms and conditions specified under this86 article;87 - 4 - 26 LC 59 0475S (3) Exempt homestead property within the special district from all ad valorem taxes88 imposed by the governing authority of the local government for all purposes in an amount89 to be determined annually based upon the net proceeds of the sales and use tax collected90 under this article within the special district;91 (4) Provide that such homestead exemption shall be allowed in addition to and not in lieu92 of any other homestead exemption applicable to the homestead property;93 (5) Provide that such homestead exemption shall become effective on January 1 of the94 year subsequent to the approval of the local Act in the requisite referendum;95 (6) Include only those portions of real property located withi n the applicable special96 district established pursuant to this article; and97 (7) Provide that the homestead exemption shall not apply to or affect any ad valorem98 taxes other than those levied by the governing authority of the local government to which99 the local Act applies.100 (d) Notwithstanding any contrary provision of Article 2B of this chapter or any resolution,101 ordinance, intergovernmental agreement, or referendum related t hereto, a tax in effect102 within a special district conterminous with a county pursuant to Article 2B of this chapter103 shall terminate at the last moment of the day prior to the commencement of the levy of an104 LHOST pursuant to this article in the special district conterminous with such county.105 48-8-109.53.106 (a) When the imposition of a local sales and use tax is author ized according to the107 procedures provided in this article within a special district, the county whose geographical108 boundary is conterminous with that of the special district shall levy a local sales and use109 tax at the rate of 1 percent.110 (b) Except as otherwise provided in this article, the LHOST sh all correspond to the tax111 imposed by Article 1 of this chapter, and no item or transactio n which is not subject to112 taxation under Article 1 of this chapter shall be subject to a tax imposed under this article;113 - 5 - 26 LC 59 0475S provided, however, that a tax imposed under this article shall apply to sales of motor fuels114 as prepaid local tax as defined in Code Section 48-8-2 and shall be applicable to the sale115 of food and food ingredients and alcoholic beverages as provide d for in Code116 Section 48-8-3. The levy of such tax upon sales of motor fuels as defined in Code117 Section 48-9-2 shall only be imposed on the retail sales price of the motor fuel which is not118 more than $3.00 per gallon.119 (c) With respect to services that are regularly billed on a monthly basis, an LHOST shall120 apply to the first regular billing period coinciding with or following the effective date of121 the LHOST.122 48-8-109.54.123 (a) The tax shall cease to be imposed on the final day of the maximum period of time,124 which shall not exceed ten years, as specified in the local Act granting the homestead125 exemption for the county or consolidated government.126 (b) The tax may be renewed for any special district in the same manner and under the same127 conditions as for an initial imposition of the tax. Such newly authorized tax shall not be128 imposed until the expiration of the tax then in effect.129 48-8-109.55.130 (a) Each LHOST shall be exclusively administered and collected by the commissioner for131 the use and benefit of the special district imposing the tax. Such administration and132 collection shall be accomplished in the same manner and subject to the same applicable133 provisions, procedures, and penalties provided in Article 1 of this chapter except that the134 LHOST shall be applicable to sales of motor fuels as prepaid local tax as defined in Code135 Section 48-8-2; provided, however, that all moneys collected fr om each taxpayer by the136 commissioner shall be applied first to such taxpayer's liability for taxes owed the state; and137 provided, further, that the commissioner may rely upon a representation by or on behalf of138 - 6 - 26 LC 59 0475S the county government or the Secretary of State that such a tax has been validly imposed,139 and the commissioner and the commissioner's agents shall not be liable to any person for140 collecting any such tax which was not validly imposed.141 (b) Dealers, as defined in Code Section 48-8-2, shall be allow ed a percentage of the142 amount of the tax due and accounted for and shall be reimbursed in the form of a deduction143 in submitting, reporting, and paying the amount due if such amount is not delinquent at the144 time of payment. Such dealer deduction shall be at the rate and subject to the requirements145 specified under subsections (b) through (f) of Code Section 48-8-50.146 (c) Each sales and use tax return remitting sales and use taxes collected under this article147 shall separately identify the location of each retail establishment at which any of the sales148 and use taxes remitted were collected and shall specify the amount of sales and the amount149 of taxes collected at each establishment for the period covered by the return to facilitate the150 determination by the commissioner that all sales and use taxes imposed by this article are151 collected and distributed according to situs of sale.152 48-8-109.56.153 (a) The proceeds of the tax collected by the commissioner unde r this article shall be154 disbursed as soon as practicable after collection directly to the county whose boundary is155 conterminous with the boundary of the special district to be he ld in trust for the special156 district in an interest-bearing account and distributed thereafter by such county among the157 eligible local governments within the special district in accordance with the provisions of158 Code Section 48-8-109.57 and Code Section 48-8-109.58.159 (b) No funds other than the annual LHOST proceeds, and interest accrued thereon, shall160 be placed in such accounts. The funds within such accounts shall not be commingled with161 any other funds of the county.162 - 7 - 26 LC 59 0475S 48-8-109.57.163 (a) Following the adoption of millage rates each year by all eligible local governments and164 prior to the printing of ad valorem tax bills, the county tax commissioner shall calculate the165 amount of the assessed value to be exempted for homestead prope rty within the special166 district for which any local Acts are in effect under this article. The amount of the assessed167 value of each homestead property that shall be exempted shall be calculated each tax year168 based on the total value of all homestead property of the speci al district, the net millage169 rates adopted by each eligible local government for such tax year, and the net proceeds of170 the LHOST which are available in the trust account as of August 1 of such year.171 (b) For an LHOST imposed within a special district which has a single eligible local172 government, the county tax commissioner shall calculate the maximum amount of assessed173 value of homestead property which may be exempted from all ad valorem taxes imposed174 by such single eligible local government on homestead property within the special district,175 which calculation shall be based upon the proceeds of the LHOST available in the trust176 account as of August 1 of such year, the total assessed value of all homestead property in177 the special district, and the net millage rates imposed by such single eligible local178 government on such homestead property.179 (c) For an LHOST imposed within a special district which has one or more eligible local180 governments, following the adoption of millage rates each year by all such eligible local181 governments, but not later than September 2, the county tax commissioner shall calculate182 the single, maximum amount of assessed value which may be exemp ted throughout the183 special district for all homestead property from all applicable ad valorem taxes imposed by184 the eligible local governments within the special district, which calculation shall be based185 upon the proceeds of the LHOST available in the trust account as of August 1 of such year,186 the total assessed value of all homestead property in the special district, and the net millage187 rates imposed by each such eligible local government on the homestead property within its188 territory within the special district.189 - 8 - 26 LC 59 0475S (d) In the event that the proceeds collected for a special dis trict exceed the amount190 necessary to exempt all homestead property from all ad valorem taxes imposed by all191 eligible local governments on homestead property within the spe cial district, the excess192 proceeds shall be calculated by the county tax commissioner and applied in a manner to193 reduce the net millage rates i n effect on property within the s pecial district by an equal194 percentage across all eligible local governments in the special district for such tax year.195 (e) For the purposes of subsection (c) of this Code section, in the event an eligible local196 government fails to submit its adopted millage rates by Septemb er 1, the county tax197 commissioner shall use 90 percent of such eligible local govern ment's prior year's net198 millage rates applicable to homestead property in the special d istrict in the calculation199 under this Code section and the c ounty shall only disburse, und e r C o d e S e c t i o n200 48-8-109.58, the lesser of such amount and the net millage rate actually levied by such201 eligible local government in the current year.202 48-8-109.58.203 (a) Prior to mailing ad valorem tax bills for homestead property, the tax collector for each204 eligible local government shall apply the homestead exemption calculated by the county205 tax commissioner under subsection (b) or (c) of Code Section 48 -8-109.57 to each ad206 valorem property tax bill for homestead property. Each ad valorem tax bill for homestead207 property shall reflect the taxpayer's gross ad valorem tax savings which resulted from the208 LHOST homestead exemption.209 (b) In the event of excess proceeds described in subsection (d ) of Code210 Section 48-8-109.57, prior to mailing ad valorem tax bills, the tax collector for each211 eligible local government shall apply the reduction calculated under subsection (d) of Code212 Section 48-8-109.57 to each ad valorem property tax bill. If applicable, each ad valorem213 tax bill shall reflect the taxpayer's gross ad valorem tax savings which resulted from such214 LHOST millage rate reduction.215 - 9 - 26 LC 59 0475S (c) Within 30 days of an eligible local government's mailing of its ad valorem tax bill for216 a given tax year, the county shall disburse LHOST funds from th e trust account to each217 eligible local government in the amount of ad valorem property tax revenue that the given218 eligible local government did not collect due to the amount of the homestead exemption219 determined under Code Section 48-8-109.57, applied pursuant to subsection (a) of this220 Code section, and as granted through the local Act required und er this article and, if221 applicable, the county shall also disburse the amount of revenu e foregone due to the222 reduction of the eligible local government's millage rates provided for in subsection (d) of223 Code Section 48-8-109.57 and subsection (b) of this Code section.224 (d) No disbursement shall be made to any governing authority u ntil such governing225 authority has mailed ad valorem tax bills for a given year.226 48-8-109.59.227 Where a local sales and use tax has been paid with respect to tangible personal property by228 the purchaser either in another local tax jurisdiction within the state or in a tax jurisdiction229 outside the state, the tax may be credited against the tax authorized to be imposed by this230 article upon the same property. If the amount of sales and use tax so paid is less than the231 amount of such tax due under this article, the purchaser shall pay an amount equal to the232 difference between the amount paid in the other tax jurisdiction and the amount due under233 this article. The commissioner may require such proof of payme nt in another local tax234 jurisdiction as the commissioner deems necessary and proper. No credit shall be granted,235 however, against the tax imposed under this article for tax paid in another jurisdiction if the236 tax paid in such other jurisdiction is used to obtain a credit against any other local sales and237 use tax levied in the special district or any other political s ubdivision within the special238 district; and taxes so paid in another jurisdiction shall be cr edited against the tax levied239 under Article 2 of this chapter, if applicable, then against th e tax levied under Part 1 of240 - 10 - 26 LC 59 0475S Article 3 of this chapter, if applicable, then against the tax levied under Part 2 of Article241 3 of this chapter, if applicable, and then against the tax levied under this article.242 48-8-109.60.243 No tax provided for in this article shall be imposed upon the s ale of tangible personal244 property which is ordered by and delivered to the purchaser at a point outside the245 geographical area of the special district in which the tax is imposed regardless of the point246 at which title passes, if the delivery is made by the seller's vehicle, and including United247 States mail or common carrier or by a private or contract carri er licensed by the Federal248 Motor Carrier Safety Administration or the Georgia Department of Public Safety.249 48-8-109.61.250 No tax provided for in this article shall be imposed upon the sale or use of buildings and251 construction materials when the contract for which the materials are purchased or used was252 advertised for bid prior to the local referendum held for the l ocal Act required to initiate253 the levy of the tax and the contract was entered into as a result of a bid actually submitted254 in response to the advertisement prior to approval of such local Act.255 48-8-109.62.256 The commissioner shall have the power and authority to promulga te such rules and257 regulations as shall be necessary for the effective and efficie nt administration and258 enforcement of the collection of the tax authorized by this article.259 48-8-109.63.260 Except as otherwise provided in this article or Code Section 48-8-6, the tax authorized by261 this article shall be in addition to any other local sales and use tax. The imposition of any262 other local sales and use tax within a county, municipality, or special district shall not263 - 11 - 26 LC 59 0475S affect the authority of a county, municipality, or special dist rict to impose the tax264 authorized by this article and the imposition of the tax authorized by this article shall not265 affect the imposition of any otherwise authorized local sales and use tax within a county,266 municipality, or special district."267 PART III268 SECTION 3-1.269 Part 4 of Article 6 of Chapter 2 of Title 20 of the Official Co de of Georgia Annotated,270 relating to financing under the "Quality Basic Education Act," is amended in Code271 Section 20-2-164, relating to local five mill share funds, by r evising subsection (g) as272 follows:273 "(g) For purposes of calculation under this Code section and Code Section 20-2-165, the274 equalized adjusted school property tax digest, adjusted by paragraph (1) of subsection (a)275 of this Code section, shall be reduced by the sum of the following products:276 (1) The product of the number of constitutional homestead exem ptions for owner277 occupied homes pursuant to Code Section 48-5-44 granted for tha t year, exclusive of278 those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and279 48-5-52, multiplied by the amount per exemption authorized under Code Section 48-5-44;280 provided, further, that, in any city operating an independent school system which281 provides a homestead exemption through local legislation comparable to that provided282 in Code Section 48-5-44, the product calculated in this paragra ph shall represent the283 number of homestead exemptions provided through the applicable local legislation284 multiplied by the amount per exemption authorized in Code Section 48-5-44, or by the285 amount per exemption authorized in the applicable local legisla tion, whichever is less;286 and provided, further, that, if the amount per exemption authorized in Code287 Section 48-5-44 has been changed subsequent to the year of the applicable digest, the288 - 12 - 26 LC 59 0475S more recently adopted amount per exemption shall be used for the product calculated in289 this paragraph;290 (2) The product of the number of constitutional homestead exem ptions for disabled291 veterans pursuant to Code Section 48-5-48 granted for that year, multiplied by the amount292 per exemption authorized under that Code section; provided, fur ther, that, in any city293 operating an independent school system which provides a homestead exemption through294 local legislation comparable to that provided in Code Section 4 8-5-48, the product295 calculated in this paragraph shall represent the number of home stead exemptions296 provided through the applicable local legislation multiplied by the amount per exemption297 authorized in the applicable local legislation, whichever is le ss; and provided, further,298 that, if the amount per exemption authorized in Code Section 48-5-48 has been changed299 subsequent to the year of the applicable digest, the more recen tly adopted amount per300 exemption shall be used for the product calculated in this paragraph;301 (3) The product of the estimated number of persons age 65 or older residing in the local302 school system during that year multiplied by 5,000;303 (4) The product which results from the following calculations:304 (A) Subtract the estimated state-wide percentage that persons age 65 or older is of the305 total population, excluding military personnel and institutiona l population, from the306 respective percentage for the local school system. If the respective percentage for the307 local school system is less than the state-wide percentage, a difference of zero shall be308 used in the calculations in this paragraph;309 (B) Multiply the difference which results from subparagraph (A) of this paragraph by310 1,000; and311 (C) Multiply the product which results from subparagraph (B) of this paragraph by the312 estimated number of persons age 65 or older residing in the local school system during313 that year; and314 (5) The product which results from the following calculations:315 - 13 - 26 LC 59 0475S (A) Divide the amount reported in paragraph (4) of subsection (e) of this Code section316 by the average ratio of assessed value to true value used to ca lculate the most recent317 equalized adjusted school property tax digest pursuant to Code Section 48-5-274; and318 (B) Multiply the quotient which results from subparagraph (A) of this paragraph by .4;319 (6) The difference between the assessed value and the net taxable assessed value of all320 properties for which an exemption pursuant to Code Section 48-5-44.2 was granted for321 that year; and322 (7) The difference between the assessed value and the net taxable assessed value of all323 properties for which an exemption authorized pursuant to a loca l constitutional324 amendment or Article VII, Section II, Paragraph II(a) of the Constitution was granted in325 that year."326 SECTION 3-2.327 Said part is further amended in paragraph (5) of subsection (a) of Code Section 20-2-167,328 relating to funding for direct instructional, media center, and staff development costs,329 computerized uniform budget and accounting system, submission o f local budget to state330 board, and provision of certain information by local boards, by striking "15 percent" and331 replacing it with "25 percent".332 SECTION 3-3.333 Said part is further amended in Code Section 20-2-167.1, relati ng to public meetings on334 proposed annual operating budget, notice, electronic copies, an d exception for certain335 nonprofits, by revising subsection (b) as follows:336 "(b)(1) Each governing body shall hold at least two public meetings, which shall not337 occur within the same week, for the purpose of providing an opportunity for public input338 on its proposed annual operating budget before adopting any budget; provided, however,339 that any other public meeting or hearing held that is related to the budget as required by340 - 14 - 26 LC 59 0475S law shall satisfy all or a portion of such requirement. The governing body of a charter341 school with a state-wide attendance zone and students residing in 25 percent or more of342 Georgia's counties or in three or more counties which are not geographically contiguous343 shall conduct one such public meeting virtually and one such pu blic meeting in the344 county in which its primary busin ess office is located. The pu blic meetings shall be345 advertised in a local newspaper of general circulation which shall be the same newspaper346 in which other legal announcements of the board of education are advertised.347 (2)(A)(i) On and after January 1, 2027, no proposed annual ope rating budget348 resolution that would result in an increase in the revenues rai sed by the local board349 of education from the levy and collection of ad valorem property taxes by an amount350 that exceeds the greater of 3 percent or the percent change in the rate of economic351 inflation on individual taxpayers as determined under the Consumer Price Index, as352 reported by the Bureau of Labor Statistics of the United States Department of Labor,353 of the amount of such revenues raised by the local board of education which would354 be raised by the local board of education from the levy of its roll-back rate calculated355 pursuant to Code Section 48-5-32.1 shall go into effect unless the General Assembly356 enacts a local Act authorizing such increase or the electors of the local school system357 have approved such budget resolu tion in a referendum election. In calculating358 whether a proposed annual operating budget resolution would res ult in such an359 increase in the revenues raised by the local board of education, increases in revenue360 attributable to economic growth and the levies of ad valorem pr operty tax for costs361 incurred pursuant to a state of emergency declared by any feder al, state, or local362 emergency management agency, official, or authority shall not be counted.363 (ii) The call for and conduct of any such election shall be in the manner authorized364 under Code Section 21-2-540. The costs of any referendum held pursuant to this365 paragraph shall be paid by the local board of education. The e xact ballot language366 shall be prescribed by the local board of education but shall contain, at a minimum,367 - 15 - 26 LC 59 0475S the projected amount of revenue to be generated by the budget resolution; the amount368 of revenue received by the local board of education in the prev ious fiscal year; and369 a statement as to whether or not such projected revenue increas e is the result of an370 increase in the levy or rate of ad valorem property taxes. All persons desiring to vote371 in favor of the budget resolution shall vote 'Yes' and all persons opposed to the budget372 resolution shall vote 'No.' If more than one-half of the votes cast are in favor of the373 budget resolution, then the budget resolution shall go into effect as provided by law;374 otherwise, the budget resolution shall either:375 (I) Not go into effect and the local board of education shall prepare a new proposed376 budget which is projected not to increase the revenues raised by the local board of377 education by an amount that exceeds the 3 percent limitation pr ovided for in this378 subparagraph; or379 (II) Go into effect and the local board of education shall be required to reduce its380 proposed budget for the subsequent year by an amount correspond ing to the381 unapproved increase exceeding the 3 percent limitation.382 (B) A local board of education shall not be required to hold either or both of the public383 meetings required under paragraph (1) of this subsection after a proposed annual384 operating budget resolution has been approved in a referendum election required under385 subparagraph (A) of this paragraph.386 (C) Nothing in this paragraph shall be construed to require that the public meetings of387 a local board of education required under paragraph (1) of this subsection shall be held388 at any particular time either prior to or following the referen dum election required389 under subparagraph (A) of this paragraph."390 SECTION 3-4.391 Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended392 in Code Section 36-81-3, relating to establishment of fiscal ye ar, requirement of annual393 - 16 - 26 LC 59 0475S balanced budget, adoption of budget ordinances or resolutions g enerally, budget394 amendments, and uniform chart of accounts, by revising subsection (d) as follows:395 "(d) Nothing contained in this Code section shall preclude a lo cal government from396 amending its budget so as to adapt to changing governmental nee ds during the budget397 period; provided, however, that, on and after January 1, 2027, no such amendment shall398 result in an increase in the revenues raised by the unit of local government from the levy399 and collection of ad valorem property taxes by an amount that e xceeds the greater of 3400 percent or the percent change in the rate of economic inflation on individual taxpayers as401 determined under the Consumer Price Index, as reported by the Bureau of Labor Statistics402 of the United States Department of Labor, of the amount of such revenues which would be403 raised by the unit of local government from the levy of its roll-back rate calculated pursuant404 to Code Section 48-5-32.1; provided, further, that this calcula tion shall not include405 increases in a proposed budget attributable to economic growth and costs incurred pursuant406 to a state of emergency declared by any federal, state, or loca l emergency management407 agency, official, or authority . Amendments shall be made as follows, unless otherwise408 provided by charter or local law:409 (1) Any increase in appropriation at the legal level of control of the local government,410 whether accomplished through a change in anticipated revenues in any fund or through411 a transfer of appropriations among departments, shall require t he approval of the412 governing authority. Such amendment shall be adopted by ordinance or resolution;413 (2) Transfers of appropriations within any fund below the local government's legal level414 of control shall require only the approval of the budget officer; and415 (3) The governing authority of a local government may amend the legal level of control416 to establish a more detailed level of budgetary control at any time during the budget417 period. Said amendment shall be adopted by ordinance or resolution."418 - 17 - 26 LC 59 0475S SECTION 3-5.419 Said title is further amended by revising Code Section 36-81-6, relating to adoption of budget420 ordinance or resolution and form of budget, as follows:421 "36-81-6.422 (a)(1) On a date after the conclusion of the hearing required in sub section (f) of Code423 Section 36-81-5, the governing authority shall adopt a budget o rdinance or resolution424 making appropriations in such sums as the governing authority m ay deem sufficient,425 whether greater or less than the sums presented in the proposed budget. The budget426 ordinance or resolution shall be adopted at a public meeting which shall be advertised in427 accordance with the procedures set forth in subsection (e) of C ode Section 36-81-5 at428 least one week prior to the meeting, except as otherwise provided in paragraph (2) of this429 subsection.430 (2)(A) On and after January 1, 2027, if such budget ordinance is projected to result in431 an increase in the revenues raised by the unit of local governm ent from the levy and432 collection of ad valorem property taxes by an amount that excee ds the greater of 3433 percent or the percent change in the rate of economic inflation on individual taxpayers434 as determined under the Consumer Price Index, as reported by th e Bureau of Labor435 Statistics of the United States Department of Labor, of the amo unt of such revenues436 raised by the unit of local government which would be raised by the unit of local437 government from the levy of its roll-back rate calculated pursu ant to Code Section438 48-5-32.1, then such budget ordinance shall not go into effect unless the General439 Assembly enacts a local Act authorizing such increase or the electors of the unit of local440 government have approved such budget ordinance in a referendum election. In441 calculating whether a proposed annual operating budget resolution would result in such442 an increase in the revenues raised by the unit of local government, increases in revenue443 attributable to economic growth and costs incurred pursuant to a state of emergency444 - 18 - 26 LC 59 0475S declared by any federal, state, or local emergency management a gency, official, or445 authority shall not be counted.446 (B) The call for and conduct of any such election shall be in the manner authorized447 under Code Section 21-2-540. The costs of any referendum held pursuant to this448 paragraph shall be paid by the unit of local government adoptin g such budget449 ordinance. The exact ballot language shall be prescribed by th e governing authority450 adopting the budget ordinance but shall contain, at a minimum, the projected amount451 of revenue to be generated by the budget ordinance; the amount of revenue received by452 the unit of local government in the previous fiscal year; and a statement as to whether453 or not such projected revenue increase is the result of an increase in the levy or rate of454 ad valorem property taxes. All persons desiring to vote in fav or of the budget455 ordinance shall vote 'Yes' and all persons opposed to the budge t ordinance shall vote456 'No.' If more than one-half of the votes cast are in favor of the budget ordinance, then457 the budget ordinance shall go into effect as provided by law; o therwise, the budget458 ordinance shall either:459 (i) Not go into effect and the unit of local government shall prepare a new proposed460 budget pursuant to Code Section 36-81-5 which is projected not to increase the461 revenues raised by the unit of local government by an amount th at exceeds the 3462 percent limitation provided for in this subsection; or463 (ii) Go into effect and the unit of local government shall be required to reduce its464 proposed budget for the subsequent year by an amount correspond ing to the465 unapproved increase exceeding the 3 percent limitation.466 (b) The budget may be prepared in any form that the governing authority deems most467 efficient in enabling it to make the fiscal policy decisions embodied in the budget, but such468 budget shall be subject to the provisions of this article."469 - 19 - 26 LC 59 0475S PART IV470 SECTION 4-1.471 Title 21 of the Official Code of Georgia Annotated, relating to elections, is amended in472 subsection (c) of Code Section 21-2-540, relating to conduct and timing of special primaries473 and special elections generally, by revising paragraph (2) and adding a new paragraph to read474 as follows:475 "(2) Notwithstanding any other provision of law to the contrary and except as otherwise476 provided in paragraph (2.1) of this subsection, a special election to present a question to477 the voters shall be held only on one of the following dates which is at least 29 days after478 the date of the call for the special election:479 (A) In odd-numbered years, any such special election shall onl y be held on the third480 Tuesday in March or on the Tuesday after the first Monday in November; and481 (B) In even-numbered years, any such special election shall only be held on:482 (i) The date of and in conjunction with the presidential preference primary if one is483 held that year;484 (ii) The third Tuesday in March; provided, however, that such special election shall485 occur prior to July 1, 2024, and present a question to the voters on sales and use taxes486 authorized by Articles 5, 5A, and 5B of Chapter 8 of Title 48;487 (iii)(ii) The date of the general primary; or488 (iv)(iii) The Tuesday after the first Monday in November.489 (2.1) Notwithstanding any other provision of law to the contrary, a special election to490 present a question or other measure to the voters relating to an increase in revenue by491 a local governing authority, including a question or measure th at could result in an492 increase in taxes shall be held only:493 (A) In odd-numbered years, on:494 (i) The third Tuesday in March; or495 - 20 - 26 LC 59 0475S (ii) The Tuesday after the first Monday in November; and496 (B) In even-numbered years, on:497 (i) The date of the general primary; or498 (ii) The Tuesday after the first Monday in November."499 PART V500 SECTION 5-1.501 Chapter 5 of Title 48 of the Official Code of Georgia Annotated , relating to ad valorem502 taxation of property, is amended in Code Section 48-5-2, relating to definitions, by repealing503 paragraph (2.1), redesignating paragraph (.1) as paragraph (.2) , revising the introductory504 language of paragraph (3), and adding new paragraphs to read as follows:505 "(.1) 'Actual income and expense data' means income, vacancies, collection losses, lease506 terms, and operating expenses for the prior calendar year, as documented in a taxpayer's507 official records and certified as complete and accurate by such taxpayer or such508 taxpayer's authorized representative."509 "(3) 'Fair market value of property' means the amount a knowledgeable buyer would pay510 for the property and a willing seller would accept for the property at an arm's length, bona511 fide sale. The income approach, if data are available, shall be considered in determining512 the fair market value of income-producing property. Upon request of a county board of513 tax assessors, If actual income and expense data are voluntarily shall be supplied by the514 property a n owner, such data shall be considered in such determination o f515 income-producing property or by a duly appointed authorized agent of such owner on or516 before the deadline specified in Code Section 48-5-18. Such requests shall be governed517 by the provisions of Code Section 48-5-300. Actual income and expense data submitted518 to a county board of tax assessors pursuant to such requests shall be confidential and shall519 not be subject to inspection, pursuant to the provisions of Code Section 48-5-314. With520 - 21 - 26 LC 59 0475S respect to the valuation of equipment, machinery, and fixtures when no ready market521 exists for the sale of the equipment, machinery, and fixtures, fair market value may be522 determined by resorting to any reasonable, relevant, and useful information available,523 including, but not limited to, the original cost of the propert y, any depreciation or524 obsolescence, and any increase in value by reason of inflation. Each tax assessor shall525 have access to any public records of the taxpayer for the purpo se of discovering such526 information."527 "(7) 'Income-producing property' means nonhomestead real property owned and operated528 by any corporation, association, partnership, or other private legal entity organized under529 the laws of this state, the United States, the District of Colu mbia, or any other state,530 territory, or dependency of the United States or under the laws of a foreign country that531 is used primarily for the purpose of generating income. Such term shall not include an532 organization which maintains nonprofit status under Section 501 (c)(3) of the Internal533 Revenue Code of 1986 or tax-exempt status under Code Section 48-7-25."534 SECTION 5-2.535 Said chapter is further amended by revising Code Section 48-5-32.1, relating to certification536 of assessed taxable value of property and method of computation , resolution or ordinance537 required for millage rate, and advertisement of intent to increase property tax, as follows:538 "48-5-32.1.539 (a) As used in this Code section, the term:540 (1) 'Ad valorem tax' or 'property tax' means a tax imposed upon the assessed value of real541 property.542 (2) 'Certified tax digest' means the total net assessed value on the annual property tax543 digest certified by the tax commissioner of a taxing jurisdicti on to the department and544 authorized by the commissioner for the collection of taxes, or, in the case where the545 governing authority of a county whose digest has not been approved by the commissioner546 - 22 - 26 LC 59 0475S has petitioned the superior court of the county for an order authorizing the immediate and547 temporary collection of taxes, the temporary digest so authorized.548 (3) 'Levying authority' means a county, a municipality, or a c onsolidated city-county549 governing authority or other governing authority of a political subdivision of this state550 that exercises the power to levy ad valorem taxes to carry out the governing authority's551 purposes.552 (4) 'Mill' means one one-thousandth of a United States dollar.553 (5) 'Millage' or 'millage rate' means the levy, in mills, whic h is established by the554 governing authority for purposes of financing, in whole or in part, the taxing jurisdiction's555 expenses for its fiscal year.556 (6) 'Millage equivalent' means the number of mills which would result when the total net557 assessed value added by reassessments is divided by the certified tax digest and the result558 is multiplied by the previous year's millage rate.559 (7) 'Net assessed value' means the taxable assessed value of p roperty after all560 exemptions.561 (8) 'Recommending authority' means a county, independent, or a rea school board of562 education that exercises the power to cause the levying authority to levy ad valorem taxes563 to carry out the purposes of such board of education.564 (9) 'Roll-back rate' means the previous year's millage rate minus the millage equivalent565 of the total net assessed value added by reassessments:566 (A) As calculated and certified to the commissioner by the tax commissioner for567 county and educational tax purposes; and568 (B) As calculated by the collecting officer of the municipalit y for municipal tax569 purposes.570 (10) 'Taxing jurisdiction' means all the real property subject to the levy of a specific571 levying authority or the recommended levy of a specific recommending authority.572 - 23 - 26 LC 59 0475S (11) 'Total net assessed value added by reassessments' means the total net assessed value573 added to the certified tax digest as a result of revaluation of existing real property that has574 not been improved since the previous tax digest year.575 (b) At the time of certification of the digest, the tax receiver or tax commissioner shall also576 certify to the recommending authority and levying authority of each taxing jurisdiction the577 total net assessed value added by reassessments contained in the certified tax digest for that578 tax digest year of the taxing jurisdiction.579 (c)(1) Whenever a recommending authority or levying authority shall propose to adopt580 a millage rate which does not exceed the roll-back rate, it shall adopt that millage rate at581 an advertised public meeting and at a time and place which is convenient to the taxpayers582 of the taxing jurisdiction, in accordance with the procedures specified under Code Section583 48-5-32.584 (2) In those instances in which the recommending authority or levying authority585 proposes to establish a general maintenance and operation milla ge rate which would586 require increases beyond the roll-back rate, the recommending a uthority or levying587 authority shall:588 (A) Advertise advertise its intent to do so and shall conduct at least three public589 hearings thereon, at least one of which shall commence between the hours of 6:00 P.M.590 and 7:00 P.M., inclusive, on a business weekday. The recommend ing authority or591 levying authority shall place an advertisement in a newspaper o f general circulation592 serving the residents of the unit of local government and post such advertisement on the593 website of the recommending or levying authority, which shall read as follows:594 'NOTICE OF PROPERTY TAX INCREASE595 The (name of recommending authority or levying authority) has tentatively adopted a596 millage rate which will require an increase in property taxes b y (percentage increase597 over roll-back rate) percent.598 - 24 - 26 LC 59 0475S All concerned citizens are invited to the public hearing on this tax increase to be held599 at (place of meeting) on (date and time).600 Times and places of additional public hearings on this tax incr ease are at (place of601 meeting) on (date and time).602 This tentative increase will result in a millage rate of (proposed millage rate) mills, an603 increase of (millage rate increase above the roll-back rate) mills. Without this tentative604 tax increase, the millage rate will be no more than (roll-back millage rate) mills. The605 proposed tax increase for a home with a fair market value of (average home value from606 previous year's digest rounded to the nearest $25,000.00) is approximately $(increase)607 and the proposed tax increase for nonhomestead property with a fair market value of608 (average nonhomestead property value from previous year's digest rounded to nearest609 $25,000.00) is approximately $(increase).'610 Simultaneously with this notice the recommending authority or l evying authority shall611 provide a press release to the local media; and612 (B) Notify each taxpayer with property in the taxing jurisdiction, by mail directed to613 the taxpayer's last known address, of the proposed intent to exceed the roll-back rate at614 least ten days in advance of the first public hearing. Alternatively, the recommending615 authority or levying authority may transmit the notice to the t axpayer by electronic616 means at least ten days in adva nce of the first public hearing, if such taxpayer and617 county clerk have consented in writing to service by electronic means. The county618 clerk shall consolidate the required information for all taxing subdivisions relevant to619 the taxpayer's property on one notice. The notice shall include, but not be limited to:620 (i) The roll-back rate;621 (ii) The proposed property tax revenue needed to fund the proposed budget;622 (iii) The proposed millage rate based upon the proposed budget and the current year's623 total assessed valuation;624 - 25 - 26 LC 59 0475S (iv) The millage rate and property tax of the taxing jurisdict ion on the taxpayer's625 property from the previous year's tax statement;626 (v) The proposed percent change in the millage rate between the previous year's tax627 rate and the proposed tax rate for the current year;628 (vi) The appraised value and assessed value of the taxpayer's property for the current629 year;630 (vii) The estimates of the tax for the current tax year on the taxpayer's property based631 on the roll-back rate and the proposed millage rate; and632 (viii) The dates, times, and locations of the public hearings.633 (3) The advertisement shall appear at least one week prior to each hearing, be634 prominently displayed, not be less than 30 square inches, and not be placed in that section635 of the newspaper where legal notices appear and shall be posted on the appropriate636 website at least one week prior to each hearing. In addition to the advertisement specified637 under this paragraph, the levying or recommending authority may include in the notice638 reasons or explanations for such tax increase.639 (4) The recommending authority or levying authority shall provide interested taxpayers640 of the taxing jurisdiction desiring to be heard an opportunity to present oral testimony641 within reasonable time limits and without unreasonable restrict ion on the number of642 individuals allowed to make public comment.643 (4)(5) No recommending authority shall recommend and no levying authority shall levy644 a millage rate in excess of the proposed millage rate as establ ished pursuant to645 paragraph (2) of this subsec tion without beginning anew the pro cedures and hearings646 required by this Code section and those required by Code Section 48-5-32.647 (5)(6) Any notice or hearing required under this Code section may be combined with any648 notice or hearing required under Article 1 of Chapter 81 of Tit le 36 or Code649 Section 48-5-32.650 - 26 - 26 LC 59 0475S (d) Nothing contained in this Code section shall serve to extend or authorize any millage651 rate in excess of the maximum millage rate permitted by law or to prevent the reduction of652 the millage rate.653 (e) The commissioner shall not accept a digest for review or issue an order authorizing the654 collection of taxes if the recommending authority or levying authority other than municipal655 governing authorities has established a millage rate that is in excess of the correct rollback656 without complying fully with the procedures required by this Code section. In the event657 a digest is not accepted for review by the commissioner pursuant to this subsection, it shall658 be accepted for review upon satisfactory submission by such authorities of such evidence. 659 The levies of each of the levying authorities other than the county governing authority shall660 be invalid and unenforceable until such time as the provisions of this Code section have661 been met.662 (f) Any recommending authority or levying authority that does not comply with the663 provisions of subsection (c) of this Code section shall refund to taxpayers any property664 taxes over-collected based on the amount of the levy that was i n excess of the roll-back665 rate. The provisions of this subsection shall not be construed as prohibiting any other666 remedies available under the law.667 (f)(g) The commissioner shall promulgate such rules and regulations as may be necessary668 for the administration of this Code section."669 SECTION 5-3.670 Said chapter is further amended by revising Code Section 48-5-3 02, relating to time for671 completion of revision and assessment of returns and submission of completed digest to672 commissioner, as follows:673 "48-5-302.674 Each county board of tax assessors, each municipal official res ponsible for collecting675 municipal ad valorem property taxes, and each school official responsible for collecting ad676 - 27 - 26 LC 59 0475S valorem property taxes for a local school system shall complete its revision and assessment677 of the returns of taxpayers in its respective county jurisdiction by July 15 of each year,678 except that, in all counties jurisdictions providing for the collection and payment of ad679 valorem taxes in installments, such date shall be June 1 of each year. The tax receiver or680 tax commissioner shall then immediately forward one copy of the completed digest to the681 commissioner for examination and approval."682 SECTION 5-4.683 Said chapter is further amended by revising Code Section 48-5-303, relating to correction of684 mistakes in county tax digests and notification of correction, as follows:685 "48-5-303.686 (a)(1) The county board of tax assessors shall have authority to correct factual errors in687 the tax digest when discovered within three years and when such corrections are of688 benefit to the taxpayer. Such corrections, after approval of t he county board of tax689 assessors, shall be communicated to the taxpayer and notice shall be provided to the tax690 commissioner.691 (2) If the county board of tax assessors discovers a factual error in the tax digest which692 is not of benefit to the taxpayer and which relates to an improperly or mistakenly applied693 homestead exemption that was not due to any intentional misrepresentation or fraudulent694 act on the part of the taxpayer, the tax receiver or tax commissioner shall be prohibited695 from retroactively assessing the taxpayer the difference in ad valorem taxes actually paid696 by the taxpayer and the amount of ad valorem taxes that would have been assessed on the697 taxpayer but for the improperly or mistakenly applied homestead exemption.698 (b) If a tax receiver or tax commissioner makes a mistake in t he digest which is not699 corrected by the county board of tax assessors or county board of equalization, the700 commissioner, with the sanction of the Governor, shall correct the mistake by making the701 necessary entries in the digest furnished the commissioner. The commissioner shall notify702 - 28 - 26 LC 59 0475S the county governing authority and the tax collector of the county from which the digest703 comes of the mistake and correction."704 PART VI705 SECTION 6-1.706 This Act shall become effective upon its approval by the Governor or upon its becoming law707 without such approval.708 SECTION 6-2.709 All laws and parts of laws in conflict with this Act are repealed.710 - 29 -