HB1145: HB1145 Ad valorem tax; state-wide homestead exemption for certain public service employees; provisions

26 LC 59 0214 House Bill 1145 By: Representatives Paris of the 142nd, Oliver of the 84th, Holcomb of the 101st, Frye of the 122nd, Leverett of the 123rd, and others A BILL TO BE ENTITLED AN ACT To amend Part 1 of Article 2 of Chapter 5 of Title 48 of the Of ficial Code of Georgia1 Annotated, relating to tax exemptions, so as to provide for a state-wide homestead exemption2 for certain public service employees from ad valorem taxes in an amount equal to the amount3 by which the current year assessed value of a homestead exceeds the base year value of such4 homestead; to provide for definitions; to specify the terms and conditions of the exemption5 and the procedures relating thereto; to provide for applicabili ty; to provide for related6 matters; to provide for compliance with constitutional requirem ents; to provide for a7 referendum, effective dates, and automatic repeal; to repeal conflicting laws; and for other8 purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Part 1 of Article 2 of Chapter 5 of Title 48 of the Official Co de of Georgia Annotated,12 relating to tax exemptions, is amended by adding a new Code section to read as follows:13 "48-5-57.14 (a) For purposes of this Code section, the term:15 H. B. 1145 - 1 - 26 LC 59 0214 (1) 'Ad valorem taxes' means all ad valorem taxes levied by, for, or on behalf of the state16 or any county, consolidated government, municipality, or local school district in this17 state, except for any ad valorem taxes levied to pay interest o n and to retire bonded18 indebtedness.19 (2) 'Area median income' means the median income for the area in which a person20 resides as determined by the Department of Revenue.21 (3) 'Base year' means the taxable year immediately preceding the taxable year in which22 the exemption under subsection (b) of this Code section is first granted to the most recent23 owner of such homestead.24 (4) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40.25 (5) 'Qualifying public service employee' means a person whose gross income, as defined26 in the United States Internal Revenue Code of 1986, is 150 perc ent or less of the area27 median income for the area in which he or she resides and, on or before January 1 of the28 year in which an application for the exemption under subsection (b) of this Code section29 is made, is a:30 (A) Firefighter, paramedic, certified peace officer, or other law enforcement officer31 employed by the government of the United States or any department, agency, authority,32 or bureau thereof or by the State of Georgia or any county, mun icipality, special33 district, county or independent school system, or other political subdivision thereof;34 (B) Teacher, paraprofessional, administrator, or other person employed by an35 educational institution in this state; or36 (C) Person employed by or holding staff privileges at a hospital located in this state.37 (b)(1) Each qualifying public service employee is granted an exemption on that person's38 homestead from ad valorem taxes in an amount equal to the amount by which the current39 year assessed value of that homestead, including any final dete rmination of value on40 appeal pursuant to Code Section 48-5-311, exceeds its base year assessed value. This41 exemption shall not apply to taxes assessed on improvements to such homestead or42 H. B. 1145 - 2 - 26 LC 59 0214 additional land that is added to such homestead after January 1 of the base year. If any43 real property is removed from such homestead, the base year assessed value, including44 any final determination of value on appeal pursuant to Code Section 48-5-311, shall be45 adjusted to reflect such removal, and the exemption shall be re calculated accordingly. 46 The value of that property in excess of such exempted amount sh all remain subject to47 taxation.48 (2) No exemption provided for in this subsection shall transfer to any subsequent owner49 of the property, and the assessed value of the property shall be as provided by law.50 (c) A person shall not receive the homestead exemption granted by subsection (b) of this51 Code section unless such person or person's agent files an application with the tax receiver52 or tax commissioner of his or her respective local government or governments charged with53 the duty of receiving returns of property for taxation giving s uch information relative to54 receiving such exemption as will enable such tax receiver or tax commissioner to make a55 determination regarding the initial and continuing eligibility of such person for such56 exemption or has already filed for and is receiving a homestead exemption and such57 existing application provides sufficient information to make su ch determination of58 eligibility. Such tax receiver or tax commissioner shall provide application forms for this59 purpose.60 (d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1.61 Such exemption shall be automatically renewed from year to year so long as the owner62 occupies the residence as a homestead. After a person or a per son's agent has filed the63 proper application as provided in subsection (c) of this Code s ection, it shall not be64 necessary to make application thereafter for any year, and the exemption shall continue to65 be allowed to such person. It shall be the duty of any person granted the homestead66 exemption under subsection (b) of this Code section to notify t he tax receiver or tax67 commissioner of the local government or governments in the even t such person for any68 reason becomes ineligible for such exemption.69 H. B. 1145 - 3 - 26 LC 59 0214 (e) The homestead exemption granted by subsection (b) of this Code section shall be in70 lieu of and not in addition to any other homestead exemption ap plicable to ad valorem71 taxes.72 (f) The exemption granted by subsection (b) of this Code section shall apply to all taxable73 years beginning on or after January 1, 2027."74 SECTION 2.75 In accordance with the requirements of Article VII, Section II of the Constitution of the State76 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority77 vote in both the Senate and the House of Representatives.78 SECTION 3.79 The Secretary of State shall call and conduct an election as provided in this section for the80 purpose of submitting this Act to the electors of the entire state for approval or rejection. The81 Secretary of State shall conduct such election no later than the Tuesday next following the82 first Monday in November, 2026, and shall issue the call and co nduct such election as83 provided by general law. The Secretary of State shall cause th e date and purpose of the84 election to be published once a week for two weeks immediately preceding the date thereof85 in the official organ of each county in the state. The ballot shall have written or printed86 thereon the words:87 "( ) YES88 ( ) NO89 90 91 Shall the Act be approved which provides a state-wide homestead exemption to certain public service employees from ad valorem taxes in an amount equal to the amount by which the current year assessed value of a homestead exceeds its base year assessed value?" All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring92 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on93 such question are for approval of the Act, Section 1 of this Act shall become of full force and94 H. B. 1145 - 4 - 26 LC 59 0214 effect on January 1, 2027. If the Act is not so approved or if the election is not conducted95 as provided in this section, Section 1 of this Act shall not become effective and this Act shall96 be automatically repealed on the first day of January immediate ly following such election97 date. It shall be the duty of each county election superintendent to certify the results thereof98 to the Secretary of State.99 SECTION 4.100 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon101 its approval by the Governor or upon its becoming law without such approval.102 SECTION 5.103 All laws and parts of laws in conflict with this Act are repealed.104 H. B. 1145 - 5 -