HB1228: HB1228 Ad valorem tax; assessment of real property purchased or acquired by certain business enterprises at 100 percent of its fair market value; provide

Under current Georgia law, most real estate is assessed for property tax purposes using standard rules that can result in valuations below full market value. This bill targets a specific category: 'business enterprise property,' defined as single-family homes held for rental income by a corporation, partnership, trust, or similar entity that owns or controls at least 1,000 such homes statewide. That property would instead be assessed at 100 percent of its fair market value. Owners of qualifying property would have to certify their holdings to the county board of tax assessors, either by January 1, 2027, or within 90 days of acquiring new property after that date. Failing to certify triggers a penalty of twice the tax difference, plus interest. Money raised from taxing this property at full value must first go toward reducing the ad valorem (property) tax bills of homesteads, meaning primary residences, in the same taxing jurisdiction. The whole law only takes effect if Georgia voters ratify a constitutional amendment in November 2026 allowing a separate property class for this purpose; otherwise it is automatically repealed on January 1, 2027.

• Creates a new property tax category called 'business enterprise property' for single-family rental homes owned by entities holding 1,000 or more such properties in Georgia.
• Requires that category of property to be assessed at 100 percent of fair market value rather than under standard assessment rules.
• Requires owners to certify their qualifying properties to the county board of tax assessors by January 1, 2027, or within 90 days of a later purchase.
• Imposes a penalty equal to twice the underpaid tax amount, plus interest, on owners who fail to certify their properties as required.
• Directs any extra tax revenue collected from this property to be used first to reduce property tax bills on homesteads (primary residences) in the same taxing jurisdiction.
• Makes the entire Act contingent on voters approving a related constitutional amendment in November 2026, with automatic repeal if the amendment fails.

Large corporate landlords and investment entities that own 1,000 or more single-family rental homes in Georgia, county boards of tax assessors and fiscal authorities that must administer certification and credits, and homeowners in taxing jurisdictions where such rental portfolios exist, who could see reduced property tax bills.

If enacted, large-scale corporate landlords would pay property taxes based on full market value instead of potentially lower assessed values, and that extra revenue would flow into reducing homeowners' tax bills rather than general county or city budgets, changing how tax burdens are distributed locally.

• Section 2 adds a new subsection to O.C.G.A. § 48-5-7 requiring business enterprise property to be assessed and taxed at 100 percent of fair market value.
• Section 3 (new O.C.G.A. § 48-5-7.8) defines 'business enterprise property' as homes held through entities controlling at least 1,000 single-family rental properties statewide, excluding certain nonprofit organizations.
• Section 3 requires property owners to certify ownership with a recorded deed to the county board of tax assessors by January 1, 2027, or within 90 days of a later acquisition.
• Section 3 sets a penalty of twice the underpaid tax amount plus interest for failure to certify, collectible as a lien on the property.
• Section 3 requires tax revenue from this assessment to first reduce homestead property tax bills within the same taxing jurisdiction, applied as a dollar-for-dollar credit up to the homeowner's tax liability.
• Section 3 directs the state revenue commissioner to create standard certification and release forms, including a sworn statement of compliance.
• Section 4 makes the entire Act contingent on voter approval of a constitutional amendment in November 2026 and provides for automatic repeal on January 1, 2027 if the amendment fails.

1. 2026-02-09House Second Readers (House)
2. 2026-02-06House First Readers (House)
3. 2026-02-05House Hopper (House)

• Derrick McCollum (R, HD-030)Primary sponsor
• Mary Oliver (D, HD-084)
• Phil Olaleye (D, HD-059)
• Esther Panitch (D, HD-051)
• Joseph Gullett (R, HD-019)
• Chuck Efstration (R, HD-104)

• property taxes
• corporate landlords
• housing affordability
• homestead tax relief
• constitutional amendment