HB1387: HB1387 Ad valorem tax; state-wide homestead exemption in an amount as determined from proceeds generated from collection of certain ad valorem property taxes on data centers

26 LC 44 3436 House Bill 1387 By: Representatives Gullett of the 19th, Momtahan of the 17th, and Thomas of the 21st A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 5 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to property tax exemptions and deferral, so as to provide for a state-wide homestead2 exemption from ad valorem taxes in an amount as determined from the proceeds generated3 from the collection of certain ad valorem property taxes on dat a centers; to provide for4 definitions; to specify the terms and conditions of the exemption and the procedures relating5 thereto; to provide for applicability; to provide for related matters; to provide for compliance6 with constitutional requirements; to provide for a referendum, effective dates, and automatic7 repeal; to provide for contingent repeal; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Article 2 of Chapter 5 of Title 48 of the Official Code of Geor gia Annotated, relating to11 property tax exemptions and deferral, is amended by adding a new Code section to read as12 follows:13 "48-5-44.3.14 (a) For purposes of this Code section, the term:15 H. B. 1387 - 1 - 26 LC 44 3436 (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) 'Base year' means the taxable year beginning on January 1 immediately following the20 first opening of a data center in this state or tax year 2027, whichever is later.21 (3) 'Data center' means:22 (A) A structure, group of structures, or infrastructure within an existing structure for23 the central housing, interconnection and operation of informati on technology, and24 network telecommunications equipment for the provision of data storage, data25 processing, or data transport services; and26 (B) All related facilities and infrastructure for power distri bution, environmental27 control, cooling, and security required to deliver the desired service with respect to the28 specific data center which are only connected to data center operation and would not29 have an impact on an electric grid.30 (4) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40, as31 amended.32 (5) 'Tax official' means the tax receiver or tax commissioner of the respective local33 government or governments charged with the duty of receiving re turns of property for34 taxation for administration of the homestead exemption provided for by this Code35 section.36 (b)(1) Each resident of this state is granted an exemption on that person's homestead37 from ad valorem taxes in an amount authorized by and calculated pursuant to subsection38 (c) of this Code section as determined by the tax official of h is or her respective local39 government or governments charged with the duty of receiving re turns of property for40 taxation, including any final determination of value on appeal pursuant to Code41 Section 48-5-311.42 H. B. 1387 - 2 - 26 LC 44 3436 (2) Except as provided for in subsection (d) of this Code section, no exemption provided43 for in this subsection shall transfer to any subsequent owner o f the property, and the44 assessed value of the property shall be as provided by law.45 (c)(1) In any tax year for which ad valorem property taxes are collected from one or46 more data centers located in the respective jurisdiction of a l ocal government or47 governments of a county, consolidated government, municipality, or local school district48 in this state, the respective tax official shall determine the excess amount of ad valorem49 property tax collections for all such data centers by calculating the difference between the50 ad valorem property taxes collected from data centers in such tax year and the ad valorem51 property taxes collected from data centers in the base year.52 (2) If the excess amount of ad valorem property tax collection s from data centers is53 positive, the full value of such excess amount shall be segregated from all other proceeds54 of the ad valorem property tax collected in such tax year, and such funds shall be55 maintained to offset the cost of the exemption provided by this Code section in the next56 subsequent tax year. As soon as the tax digest for the next su bsequent tax year is57 approved, the tax official shall calculate the equable proporti onal share of such excess58 amount to be applied to all properties receiving the exemption provided for by this Code59 section in such next subsequent tax year. The tax official shall then provide such excess60 amount from the previous tax year to the respective local governing authority of a county,61 consolidated government, municipality, or local school district to offset the cost of the62 homestead exemption provided by this Code section in such next subsequent tax year.63 (3) If the excess amount of ad valorem property tax collection s from data centers is64 negative, the value of the homestead exemption provided by this Code section for the65 next subsequent tax year shall be zero dollars.66 (d) The surviving spouse of the person who has been granted the exemption provided for67 in subsection (b) of this Code section shall continue to receiv e the exemption provided68 H. B. 1387 - 3 - 26 LC 44 3436 under subsection (b) of this Code section, so long as such surv iving spouse continues to69 occupy the residence as a homestead.70 (e) A person shall not receive the homestead exemption granted by subsection (b) of this71 Code section unless such person or person's agent files an application with the tax official72 of his or her respective local government or governments charge d with the duty of73 receiving returns of property for taxation giving such information relative to receiving such74 exemption as will enable such tax official to make a determination regarding the initial and75 continuing eligibility of such person for such exemption, or ha s already filed for and is76 receiving a homestead exemption and such existing application p rovides sufficient77 information to make such determination of eligibility. Such ta x official shall provide78 application forms for this purpose.79 (f) The homestead exemption provided in subsection (b) of this Code section shall be80 claimed and returned as provided in Code Section 48-5-50.1. Suc h exemption shall be81 automatically renewed from year to year so long as the owner occupies the residence as a82 homestead. After a person or a person's agent has filed the proper application as provided83 in subsection (e) of this Code section, it shall not be necessa ry to make application84 thereafter for any year, and the exemption shall continue to be allowed to such person. It85 shall be the duty of any person granted the homestead exemption under subsection (b) of86 this Code section to notify the tax official of the appropriate local government or87 governments in the event such person for any reason becomes ine ligible for such88 exemption.89 (g) The homestead exemption granted by subsection (b) of this Code section shall be in90 addition to and not in lieu of any other homestead exemption ap plicable to ad valorem91 taxes.92 (h) The exemption granted by subsection (b) of this Code section shall apply to all taxable93 years beginning on or after January 1, 2027."94 H. B. 1387 - 4 - 26 LC 44 3436 SECTION 2.95 In accordance with the requirements of Article VII, Section II of the Constitution of the State96 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority97 vote in both the Senate and the House of Representatives.98 SECTION 3.99 The Secretary of State shall call and conduct an election as provided in this section for the100 purpose of submitting Section 1 of this Act to the electors of the entire state for approval or101 rejection. The Secretary of State shall conduct such election no later than the Tuesday next102 following the first Monday in November, 2026, and shall issue t he call and conduct such103 election as provided by general law. The Secretary of State shall cause the date and purpose104 of the election to be published once a week for two weeks immediately preceding the date105 thereof in the official organ of each county in the state. The ballot shall have written or106 printed thereon the words:107 "( ) YES108 ( ) NO109 110 111 Shall the Act be approved which provides a state-wide homestead exemption from ad valorem taxes of up to 100 percent as determined from the proceeds generated from the collection of certain ad valorem property taxes on data centers?" All persons desiring to vote for approval of Section 1 of this Act shall vote "Yes," and all112 persons desiring to vote for rejection of Section 1 of this Act shall vote "No." If more than113 one-half of the votes cast on such question are for approval of Section 1 of this Act, Section 1114 of this Act shall become of full force and effect on January 1, 2027, only if an amendment115 to the Constitution to provide for local governments to have the option to offer a state-wide116 homestead exemption from ad valorem taxes in an amount equal to any amount by which the117 current year assessed value of a homestead exceeds the inflation rate from the adjusted base118 year value of such homestead as provided by general law is rati fied by the voters at the119 November, 2026, state-wide general election. If such an amendment is not so ratified, then120 H. B. 1387 - 5 - 26 LC 44 3436 Section 1 of this Act shall not become effective and shall stand repealed on January 1, 2027. 121 If Section 1 of this Act is not so approved, if the election is not conducted, or if the122 constitutional amendment is not ratified as provided in this section, Section 1 of this Act shall123 not become effective and Section 1 of this Act shall be automatically repealed on the first day124 of January immediately following such election date. It shall be the duty of each county125 election superintendent to certify the results thereof to the Secretary of State.126 SECTION 4.127 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon128 its approval by the Governor or upon its becoming law without such approval.129 SECTION 5.130 All laws and parts of laws in conflict with this Act are repealed.131 H. B. 1387 - 6 -