HB1156: HB1156 Local government; authorize establishment of local homeowner's incentive adjustment grant programs

26 LC 47 3906 House Bill 1156 By: Representatives Richardson of the 125 th, Newton of the 127 th, Leverett of the 123 rd, Clifton of the 131st, Smith of the 138th, and others A BILL TO BE ENTITLED AN ACT To amend Title 36 of the Official Code of Georgia Annotated, relating to local government1 so as to authorize the establishment of local homeowner's incen tive adjustment grant2 programs; to provide definitions; to provide constitutional aut horization; to provide for3 referendums to establish and discontinue such programs; to provide for the appropriation of4 funds to support such programs; to provide for the calculation, application, and limitations5 on tax credits; to provide for rules and regulations; to provide for recoverability; to amend6 Article 7 of Chapter 5 of Title 48 of the Official Code of Geor gia Annotated, relating to7 miscellaneous local administrative provisions, so as to authorize the establishment of local8 homeowner's incentive adjustment grant funds; to provide for a contingent effective date and9 automatic repeal; to provide for related matters; to repeal con flicting laws; and for other10 purposes.11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12 SECTION 1.13 Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended14 by adding a new chapter to read as follows:15 H. B. 1156 - 1 - 26 LC 47 3906 "CHAPTER 89A16 36-89A-1.17 As used in this chapter, the term:18 (1) 'Applicable rollback' means a:19 (A) Rollback of an ad valorem tax millage rate pursuant to sub section (a) of Code20 Section 48-8-91 in a county or municipality that levies a local option sales tax;21 (B) Rollback of an ad valorem tax millage rate pursuant to subparagraph (c)(2)(C) of22 Code Section 48-8-104 in a county or municipality that levies a homestead option sales23 tax;24 (C) Reduction of an ad valorem tax millage rate pursuant to th e development of a25 service delivery strategy under Code Section 36-70-24; and26 (D) Reduction of an ad valorem tax millage rate pursuant to pa ragraph (2) of27 subsection (a) of Code Section 33-8-8.3 in a county that collec ts insurance premium28 tax.29 (2) 'County millage rate' means the net ad valorem tax millage rate, after deducting30 applicable rollbacks, levied by a county for county purposes an d applying to qualified31 homesteads in the county, including any millage levied for those special districts reported32 on the 2026 ad valorem tax digest certified to and received by the state revenue33 commissioner on or before December 31, 2026, but not including any millage levied for34 purposes of bonded indebtedness and not including any millage l evied on behalf of a35 county school district for educational purposes.36 (3) 'Eligible assessed value' means a certain stated amount of the assessed value of each37 qualified homestead in the state.38 (4) 'Fiscal authority' means the individual authorized to coll ect ad valorem taxes for a39 county or municipality which levies ad valorem taxes.40 H. B. 1156 - 2 - 26 LC 47 3906 (5) 'Local homeowner's incentive adjustment grant fund' means the fund established by41 the participating local government pursuant to Code Section 48-5-381.1.42 (6) 'Municipal millage rate' means the net ad valorem tax millage rate, after deducting43 applicable rollbacks, levied by a municipality for municipal pu rposes and applying to44 qualified homesteads in the municipality, but not including any millage levied for those45 special tax districts reported on the 2026 City and Independent School Millage Rate46 Certification certified to and received by the state revenue co mmissioner on or before47 December 31, 2026, any millage levied for purposes of bonded in debtedness, or any48 millage levied on behalf of an independent school district for educational purposes.49 (7) 'Participating local government' means a county or municipality wherein the voters50 have approved a local homeowner's incentive adjustment grant program pursuant to Code51 Section 36-89A-2 and that has established a local homeowner's i ncentive adjustment52 grant fund.53 (8) 'Qualified homestead' means a homestead qualified for any exemption, state, county,54 or school, authorized under Code Section 48-5-44.55 36-89A-2.56 (a) This chapter is enacted pursuant to Article VII, Section I IA, Paragraph I of the57 Constitution to provide a mechanism for counties and municipali ties to establish local58 homeowner's incentive adjustment programs so as to reduce the tax burden upon qualified59 homesteads within participating local governments.60 (b) Any county or municipality that wishes to establish a loca l homeowner's incentive61 adjustment program pursuant to this chapter shall first submit a referendum to the electors62 of such jurisdiction with the question of whether or not such program shall be established. 63 The call for and conduct of any such election shall be in the manner authorized under Code64 Section 21-2-540. All persons desiring to vote in favor of the local homeowner's incentive65 adjustment program shall vote 'Yes' and all persons opposed to such program shall vote66 H. B. 1156 - 3 - 26 LC 47 3906 'No.' If more than one-half of the votes cast are in favor of the local homeowner's incentive67 adjustment program, then such program shall go into effect for the next fiscal year for the68 participating local government.69 (c) When the electors of a jurisdiction approve a local homeowner's incentive adjustment70 program, and a county or municipality becomes a participating local government, the local71 homeowner's incentive adjustment program shall not be discontinued until the electors of72 the participating local government approve the discontinuation of such program in a73 referendum. The call for and conduct of any such election shal l be in the manner74 authorized under Code Section 21-2-540. All persons desiring t o vote in favor of75 discontinuing the local homeowner's incentive adjustment program shall vote 'Yes' and all76 persons opposed to discontinuing such program shall vote 'No.' If more than one-half of77 the votes cast are in favor of discontinuing the local homeowne r's incentive adjustment78 program, then such program shall be discontinued at the end of the next fiscal year. If79 more than one-half of the votes cast are opposed to discontinuing the local homeowner's80 incentive adjustment program, then such program shall continue to operate in a manner81 consistent with this chapter.82 36-89A-3.83 (a) Subject to the limitations of subsection (b) of this Code section, in each fiscal year84 beginning after a county or municipality becomes a participatin g local government, the85 governing authority of such government shall appropriate to the local homeowner's86 incentive adjustment grant fund for such government funds to pr ovide homeowner's87 incentive adjustment credits to qualifying homestead properties in the county or88 municipality.89 (b) For each fiscal year beginning after a county or municipality becomes a participating90 local government, no funds shall be appropriated under subsection (a) of this Code section91 unless the actual revenues collected by such government in the preceding fiscal year92 H. B. 1156 - 4 - 26 LC 47 3906 exceeded appropriations enumerated in the budget ordinance or r esolution, as amended,93 adopted by such government for such preceding fiscal year, and the amount of estimated94 total revenues available for appropriation in the budget ordinance or resolution for the next95 fiscal year are equal to or exceed such actual collections for the preceding fiscal year.96 36-89A-4.97 (a)(1) When funds are appropriated as provided in Code Section 36-89A-3, such grants98 shall be allotted by the participating local government as follows:99 (A) Immediately following the actual preparation of ad valorem property tax bills, the100 county fiscal authority of a participating county shall calculate the total amount of tax101 revenue which would be generated by applying the county millage rates to the eligible102 assessed value of each qualified homestead in the county. The fiscal authority shall103 then determine the amount of funds in the county's local homeow ner's incentive104 adjustment grant fund and calculate the amount of the adjustmen t credit that may be105 provided from such fund to each qualified homestead in the county up to the taxpayer's106 ad valorem property tax liability on the homestead. The total amount of actual107 adjustment credit shall be applied as a tax credit given to each qualified homestead in108 the county; or109 (B) Immediately following the actual preparation of ad valorem property tax bills, the110 fiscal authority of a participating municipality shall calculat e the total amount of tax111 revenue which would be generated by applying the municipal mill age rate to the112 eligible assessed value of each qualified homestead in the muni cipality. The fiscal113 authority shall then determine the amount of funds in the munic ipality's local114 homeowner's incentive adjustment grant fund and calculate the a mount of the115 adjustment credit that may be provided from such fund to each qualified homestead in116 the municipality up to the taxpayer's ad valorem property tax liability on the homestead,117 H. B. 1156 - 5 - 26 LC 47 3906 whichever is lower. The total amount of actual adjustment credit shall be applied as a118 tax credit given to each qualified homestead in the municipality.119 (2) Credit amounts computed under paragraph (1) of this subsection shall be applied to120 reduce the otherwise applicable tax liability on a dollar-for-d ollar basis, but the credit121 granted shall not in any case exceed the amount of the otherwise applicable tax liability122 after the granting of all applicable homestead exemptions, exce pt for any homestead123 exemption under Article 2A of Chapter 8 of Title 48, the 'Homestead Option Sales and124 Use Tax Act,' as amended, and after the granting of all applicable millage rollbacks.125 (3) Credit amounts computed under paragraph (1) of this subsec tion shall not be126 computed so as to result in the value of the credits to be granted exceeding the amount127 of funds in the local homeowner's incentive adjustment grant fu nd of the participating128 local government.129 (b) The grant of funds by a county shall be conditioned on the county's fiscal authority130 reducing each qualified homestead's otherwise applicable liabil ity for county taxes for131 county purposes by a credit amount calculated in subparagraph ( a)(1)(A) of this Code132 section.133 (c) The grant of funds by a municipality shall be conditioned on the municipality's fiscal134 authority reducing each qualified homestead's otherwise applicable liability for municipal135 taxes by a credit amount calculated in subparagraph (a)(1)(B) of this Code section.136 (d) Each fiscal authority shall show the credit amount on the tax bill.137 36-89A-5.138 The state revenue commissioner shall adopt rules and regulations for the administration of139 this chapter, including specific instructions to participating local governments on140 developing and preparing the forms necessary for the administration of a program pursuant141 to this chapter.142 H. B. 1156 - 6 - 26 LC 47 3906 36-89A-6.143 Any credit under this chapter which is erroneously or illegally granted shall be recoverable144 by the political subdivision granting such credit in the same manner as any other delinquent145 tax."146 SECTION 2.147 Article 7 of Chapter 5 of Title 48 of the Official Code of Geor gia Annotated, relating to148 miscellaneous local administrative provisions, is amended by adding a new Code section to149 read as follows:150 "48-5-381.1.151 (a) Whenever the governing authority of any county or municipality determines that it is152 impractical to expend the funds raised by taxation for the purposes for which the taxes were153 levied and that it is in the best interest of the county or mun icipality and its citizens and154 taxpayers for public work to be postponed until more advantageous conditions prevail, the155 governing authority may order as much of the funds as it deems proper transferred to a156 fund to be known as the 'local homeowner's incentive adjustment grant fund' of the county157 or municipality. The local homeowner's incentive adjustment grant fund may be deposited158 in the manner provided by law or may be invested in obligations of the United States.159 (b) A county or municipal governing authority may transfer from time to time to its local160 homeowner's incentive adjustment grant fund any accumulated overage in its general fund.161 (c) The county or municipal local homeowner's incentive adjustment grant fund shall be162 held until the governing authority determines that it is practi cal and advantageous to163 undertake a local homeowner's incentive adjustment program pursuant to Chapter 89A of164 Title 36. Upon the determination, the governing authority may order funds transferred165 from the local homeowner's incentive adjustment grant fund to any of the several funds or166 to the general fund of the county or municipality so as to off set any homeowner's incentive167 adjustments approved by such governing authority.168 H. B. 1156 - 7 - 26 LC 47 3906 (d) The existence of a county or municipal local homeowner's incentive adjustment grant169 fund shall not prevent tax levies from being made by the governing authority for the several170 purposes authorized by law at such rates as are necessary for t he current or anticipated171 needs of the county or municipality to the same extent the gove rning authority could172 lawfully levy if no local homeowner's incentive adjustment grant fund was in existence.173 (e) When any county or municipal local homeowner's incentive adjustment grant fund is174 established, it shall be the duty of the governing authority to expend the fund pursuant to175 the provisions of Chapter 89A of Title 36. If such a program i s not established or is176 discontinued, the local homeowner's incentive adjustment grant fund shall be closed and177 any remaining funds shall be deposited in the county or municipal general fund.178 (f) The provisions of this Code section are in addition to and not in lieu of the179 establishment of a reserve fund pursuant to Code Section 48-5-381."180 SECTION 3.181 This Act shall become effective on January 1, 2027, following t he ratification of an182 amendment to the Constitution of Georgia removing the $18,000.0 0 assessed value cap183 related to homeowner's incentive adjustments; provided, however, that to the extent this Act184 conflicts with law in effect at the time of ratification, this Act and such amendment shall185 control, and to the extent such law is not in conflict, the law in effect at the time of186 ratification shall control and shall remain in full force and effect. If such amendment is not187 so ratified, then this Act shall stand automatically repealed.188 SECTION 4.189 All laws and parts of laws in conflict with this Act are repealed.190 H. B. 1156 - 8 -