HR1244: HR1244 Ad valorem tax; business enterprises; rate of assessment of 1,000 or more single family residential properties used for rental income; provisions - CA

26 LC 59 0300 House Resolution 1244 By: Representatives McCollum of the 30th, Oliver of the 84th, Olaleye of the 59th, Panitch of the 51st, Gullett of the 19th, and others A RESOLUTION Proposing an amendment to the Constitution of the State of Georgia so as to provide that any1 business enterprise, including, but not limited to, private equity, having an interest in 1,0002 or more single-family residential properties within this state used primarily for purposes of3 generating rental income shall be subject to an ad valorem tax assessment of 100 percent; to4 provide for the subclassification of business enterprise proper ty for ad valorem taxation5 purposes; to require that any proceeds from the ad valorem taxation of business enterprise6 property be used to reduce the ad valorem property tax bill on homesteads in the taxing7 jurisdiction within which such business enterprise property is located before such proceeds8 may be used for any other purpose; to provide for related matters; to provide for submission9 of this amendment for ratification or rejection; and for other purposes.10 BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 Article VII, Section I, Paragraph III of the Constitution is am ended by adding a new13 subparagraph to read as follows:14 "(f.2)(1)(A) The General Assembly shall be authorized by general law to establish a15 separate class of property for ad valorem taxation purposes that includes only tangible16 real property that is owned, wholly or partially, by a business enterprise that holds an17 H. R. 1244 - 1 - 26 LC 59 0300 interest in 1,000 or more single-family residential properties within this state which are18 used for the primary purpose of generating rental income and me ets such further19 requirements as may be prescribed by general law. Such propert y shall be known as20 'business enterprise property.' The General Assembly may provide by general law for21 definitions of the terms 'affiliate,' 'business enterprise,' 'b usiness enterprise property,'22 'homestead,' and any other terms necessary to effectuate the terms of this subparagraph.23 (B) Business enterprise property shall be assessed at 100 perc ent of its fair market24 value and shall be taxed on a levy made by each respective taxi ng jurisdiction25 according to 100 percent of the property's fair market value; p rovided, however, that26 the proceeds from any tax collected on such property shall be u sed to reduce the ad27 valorem property tax bill on homesteads in the taxing jurisdict ion within which the28 business enterprise property is located before such proceeds may be used for any other29 purpose.30 (2) The only purposes authorized by the subclassification of b usiness enterprise31 property as provided by this subparagraph shall be to allow the General Assembly by32 general law to:33 (A) Provide that the Department of Revenue or its successor shall appraise business34 enterprise property at its fair market value using any combinat ion of appraisal35 methodologies otherwise provided by general law for establishing the fair market value36 of real property, provided th at such methodology is not subject to an exception37 authorized by subparagraph (b), (c), (d), (e), (f), (f.1), or (g) of this Paragraph;38 (B) Provide for a separate system by which to appeal appraisals of and determinations39 made related to business enterprise property;40 (C) Require that any proceeds collected from an ad valorem tax on business41 enterprise property be primarily used to reduce the ad valorem property tax bill on42 homesteads in the taxing jurisdiction; and43 (D) Provide for penalties and other means of enforcement."44 H. R. 1244 - 2 - 26 LC 59 0300 SECTION 2.45 The above proposed amendment to the Constitution shall be publi shed and submitted as46 provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the47 above proposed amendment shall have written or printed thereon the following:48 "( ) YES49 50 ( ) NO 51 52 53 54 Shall the Constitution of Georgia be amended so as to provide t hat any business enterprise, including, but not limited to, private equity, having an interest in 1,000 or more single-family residential properties within this state used primarily for purposes of generating rental income shall be subject to an ad valorem tax assessment of 100 percent, the proceeds of which would be required to be used to reduce Georgians' residential property taxes?" All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes."55 All persons desiring to vote against ratifying the proposed amendment shall vote "No." If56 such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall57 become a part of the Constitution of this state.58 H. R. 1244 - 3 -