SB566: SB566 Ad Valorem Taxation of Property; the acceptance of tax digests in the event of a publication error made by a newspaper; provide

26 LC 44 3528S Senate Bill 566 By: Senators Hufstetler of the 52nd, Anavitarte of the 31st, Albers of the 56th, Hickman of the 4th and Still of the 48th AS PASSED A BILL TO BE ENTITLED AN ACT To amend Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to ad1 valorem taxation of property, so as to revise required informat ion for bills and notices of2 assessment for ad valorem taxation of property; to revise definitions, limits, and procedures3 related to a state-wide base year homestead exemption; to provi de for annual submissions4 and review of homestead information across the state; to expand the period of time within5 which taxpayers may apply for homestead exemptions; to provide for penalties for failing6 to report ineligibility for a homestead exemption; to make conforming changes; to provide7 for an effective date and applicability; to provide for related matters; to repeal conflicting8 laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Chapter 5 of Title 48 of the Official Code of Georgia Annotated , relating to ad valorem12 taxation of property, is amended by revising Code Section 48-5-34, relating to tax bill and13 procedures and requirements, as follows:14 S. B. 566 - 1 - 26 LC 44 3528S "48-5-34.15 (a) In addition to any other requirements provided by law, the ad valorem property tax bill16 form shall be prepared annually by the county tax commissioner or collector and furnished17 to each taxpayer who owes state, county, or county school tax for the current tax year. The18 form shall provide for each given levying authority and recommending authority:19 (1) The the total amount of such taxes levied on property owned by the taxpayer,;20 (2) The the amount of property tax credit granted by Act of the 1973 Sessi on of21 Georgia's General Assembly, and by which such taxes were reduced as a result of22 exemptions, credits, and preferential assessments that were applied to such property, if23 any; and24 (3) The the net amount of such taxes due for the current tax year.25 (b) In addition to the requirements of subsection (a) of this Code section, if the millage rate26 adopted by a taxing authority exceeds the estimated roll-back r ate and such estimated27 roll-back rate was provided in the annual notice of assessment, such tax bill shall include28 a notice containing the name of such taxing authority and the following statement in bold29 print: 'The adopted millage rate exceeds the estimated roll-back rate as stated in the annual30 notice of assessment that you previously received for this taxable year, which will result31 in an increase in the amount of property tax that you will owe.'32 (c)(1) If the governing authority of a county, consolidated government, municipality, or33 school district elected to opt out of the homestead exemption p rovided for in Code34 Section 48-5-44.2 and there is not in effect for such political subdivision a base year35 value homestead exemption or adjusted base year value homestead exemption that is36 generally applicable for homestead residents, each ad valorem property tax bill issued by37 such political subdivision for homestead properties shall conta in a notice in bold print38 that corresponds with the following statement:39 '[Name of the political subdivision] chose to opt out of proper ty tax relief for40 homeowners related to HB 581 (2024). If you have concerns abou t that decision,41 S. B. 566 - 2 - 26 LC 44 3528S please call [the main telephone number for the levying or recommending authority of42 the political subdivision].'43 (2) The provisions of paragraph (1) of this subsection shall not apply for any taxable year44 beginning after December 31, 2029."45 SECTION 2.46 Said chapter is further amended in Code Section 48-5-44.2, relating to base year homestead47 exemption, by revising paragraphs (2), (3), and (7) of subsection (a) and revising subsections48 (d) and (e) as follows:49 "(2) 'Adjusted base year assessed value' means the sum of:50 (A) The previous adjusted base year assessed value;51 (B) An amount equal to the difference between the current year assessed value of the52 homestead and the base year assessed value of the homestead, pr ovided that such53 amount shall not exceed the total of the previous adjusted base year assessed value of54 the homestead multiplied by the inflation rate for the prior year; and55 (C) The value of any substantial property change, provided that no such value added56 improvements to the homestead substantial property change shall be duplicated as to57 the same addition, or improvement, or removal of real property.58 (3) 'Base year assessed value' means:59 (A) With respect to an exemption under this Code section which is first granted to a60 person on such person's homestead for the 2025 taxable year, th e assessed value for61 taxable year 2024, including any final determination of value o n appeal pursuant to62 Code Section 48-5-311, of the homestead after adjustment due to any substantial63 property change which occurred during or after taxable year 202 4, provided that no64 such adjustment shall be duplicated as to the same addition, improvement, or removal65 of real property; or66 S. B. 566 - 3 - 26 LC 44 3528S (B) In all other cases, the assessed value, including any final determination of value on67 appeal pursuant to Code Section 48-5-311, of the homestead from the taxable year68 immediately preceding the taxable year in which the exemption under this Code section69 is first granted to the applicant for such homestead after adju stment due to any70 substantial property change which occurred during or after the taxable year used to71 establish the base year assessed value for that homestead, prov ided that no such72 adjustment shall be duplicated as to the same addition, improvement, or removal of real73 property."74 "(7) 'Substantial property change' means any increase or decrease in the assessed value75 of a homestead derived from a dditions or improveme nts to, or th e removal of real76 property from, the homestead which occurred during or after the year in which used to77 establish the base year assessed value is determined for the homestead. The assessed78 value of the substantial property changes shall be established following any final79 determination of value on appeal pursuant to Code Section 48-5-311."80 "(d) No person shall receive the exemption granted by subsection (b) of this Code section81 unless such person or person's agent files an application with the tax receiver or tax82 commissioner of his or her respective local government or governments charged with the83 duty of receiving returns of property for taxation giving such information relative to84 receiving such exemption as will enable such tax receiver or tax commissioner to make a85 determination regarding the initial and continuing eligibility of such person for such86 exemption; provided, howev er, that any person who had previousl y applied for a87 homestead exemption, was allowed such homestead exemption for the 2024 immediately88 preceding tax year, and remains eligible for a homestead exemption for t hat same89 homestead property in the 2025 c u r r e n t tax year shall be automatically allowed the90 exemption granted under subsection (b) of this Code section for that homestead without91 further application. Such tax receiver or tax commissioner shall provide application forms92 for this purpose.93 S. B. 566 - 4 - 26 LC 44 3528S (e)(1) The exemption granted by subsection (b) or (c) of this Code s ection shall be94 claimed and returned as provided in Code Section 48-5-50.1. Such exemption shall be95 automatically renewed from year to year so long as the owner occupies the residence as96 a homestead. After a person or a person's agent has filed the proper application or is97 automatically granted the homestead exemption as provided in su bsection (d) of this98 Code section, it shall not be necessary for such person or such person's surviving spouse99 to make application thereafter for any year, and the exemption shall continue to be100 allowed to such person or such person's surviving spouse. It s hall be the duty of any101 person granted the homestead exemption under subsection (b) or (c) of this Code section102 to notify the tax receiver or tax commissioner of the local gov ernment or governments103 in the event such person for any reason becomes ineligible for such exemption.104 (2) In the event that an applicant becomes ineligible for the homestead exemption105 granted under subsection (b) or (c) of this Code section with r espect to a particular106 homestead property and, thereafter, the applicant becomes eligi ble and applies for the107 homestead exemption on such property, the base year assessed value for such homestead108 shall be calculated in accordance with subparagraph (a)(3)(B) of this Code section as if109 the applicant were a new applicant who had not been previously granted an exemption110 under this Code section for such homestead."111 SECTION 3.112 Said chapter is further amended in Code Section 48-5-45, relati ng to application for113 homestead exemption and unlawful to solicit fee to file applica tion for homestead for114 another, by revising subsections (a) and (b) as follows:115 "(a)(1) An applicant seeking a homestead exemption as provided in Code Section116 48-5-44 and qualifying under the provisions of Code Section 48-5-40 shall file a written117 application and schedule with the tax receiver or tax commissioner charged with the duty118 of receiving returns of property for taxation at any time during the a calendar year119 S. B. 566 - 5 - 26 LC 44 3528S subsequent to the property becoming the primary residence of the applicant at any time120 up to and including the date for t he closing of the books for t he return of taxes for the121 calendar year, except that, in the case of a property which is subject to a reassessment by122 the board of tax assessors, the final date to file an appeal of the annual notice of current123 assessment. Any such application and schedule may be filed in conjunction with or in124 lieu of an appeal of the reassessment.125 (2) The failure to file properly the application and schedule on or before the date for the126 closing of the books for the return of taxes of a calendar year in which the taxes are due127 applicable deadline under paragraph (1) of this subsection shall constitute a waiver of the128 homestead exemption on the part of the applicant failing to make the application for such129 exemption for that year.130 (b) The owner of a homestead which is actually occupied by the owner as a residence and131 homestead shall not have to apply for the exemption more than once so long as the owner132 remains in continuous occupation of the residence as a homestead. The exemption shall133 automatically be renewed from year to year so long as the owner continuously occupies the134 residence as a homestead. In the event any person granted the exemption becomes135 ineligible for such exemption, such person shall notify the tax receiver or tax commissioner136 charged with the duty of receiving returns of property for taxa tion on or before the final137 date to file an appeal of the annual notice of current assessment."138 SECTION 4.139 Said chapter is further amended by adding a new Code section to read as follows:140 "48-5-51.1.141 (a) For taxable years beginning on or after January 1, 2026, in the event that a person fails142 to report his or her ineligibility for any homestead exemption that is listed on the annual143 notice of current assessment for the property by the final date to file an appeal of such144 notice, the property shall be appropriately billed for all taxes and interest due and a penalty145 S. B. 566 - 6 - 26 LC 44 3528S shall be imposed in an amount equal to 50 percent of the amount by which the taxes were146 to be reduced from exemptions and credits for which the taxpayer was ineligible.147 (b) Each taxpayer shall be notified in writing at the taxpayer 's last known address as it148 appears on the latest records of the tax commissioner or tax collector of the reasons for the149 denial or removal of a homestead exemption pursuant to this Cod e section. Any such150 taxpayer shall be entitled to appeal the removal of the homeste ad exemption and the151 application of penalties in the same manner provided in Code Section 48-5-311.152 (c) The local tax receiver or tax commissioner shall collect and remit any tax, penalty, or153 interest due under this Code section in the same manner as other taxes."154 SECTION 5.155 Said chapter is further amended by adding a new Code section to read as follows:156 "48-5-57.157 Recognizing the importance and value of properly granting and c ontinually allowing158 homestead exemptions, each local tax official charged by law with the duty of reviewing159 applications for homestead exemptions shall submit to the department a list of taxpayers160 that have been granted or denied a homestead exemption for prop erty within its161 jurisdiction. Such submissions shall be made annually for each taxing jurisdiction at the162 same time as the county digest is submitted to the commissioner. The commissioner shall163 maintain a list of homestead information throughout the state i n a manner which allows164 local tax officials access to review and ensure accuracy of the ir jurisdiction's properties165 receiving homestead exemptions. Each such local tax official shall review said list prior166 to approving a homestead exemption and on an annual basis prior to issuing the notices of167 assessment for the taxing jurisdiction."168 S. B. 566 - 7 - 26 LC 44 3528S SECTION 6.169 Said chapter is further amended in Code Section 48-5-306, relat ing to annual notice of170 current assessment, contents, posting notice, and new assessmen t description, by revising171 subsection (b) as follows:172 "(b) Contents of notice.173 (1) The annual notice of current assessment required to be given by the county board of174 tax assessors under subsection (a) of this Code section shall b e dated and shall contain175 the name and last known address of the taxpayer pursuant to Code Section 48-5-10. The176 annual notice shall be given on the applicable state-wide assessment notice form which177 shall be established by the commissioner by rule and regulation and shall contain:178 (A) The '(insert previous tax year) Value' which is the fair m arket value used for179 amount of the previous assessment following any final determination of value on appeal180 pursuant to Code Section 48-5-311;181 (B) The '(insert current tax year) Value' which is the fair market value used for amount182 of the current assessment;183 (C) The year for which the new assessment is applicable;184 (D) A brief description of the assessed property broken down i nto real and personal185 property classifications;186 (E) A brief description of any change in the taxable assessed value from the previous187 assessment.188 (F) A list of each exemption, credit, and preferential assessment granted or allowed for189 the property as of the creation of the notice of assessment;190 (G) The fair market value of property of the taxpayer subject to taxation and the191 assessed value of the taxpayer's property subject to taxation a fter being reduced The192 estimated tax savings from all exemptions, credits, and preferential assessments granted193 or allowed for the property calculated using the sum of all mil lage rates which were194 imposed on such property in the previous tax year;195 S. B. 566 - 8 - 26 LC 44 3528S (F)(H) A brief description of the methods and manner by which the taxpayer may196 appeal the current assessment;197 (I) The name, phone number, and contact information of the person in the assessors'198 office who is administratively responsible for the handling of the appeal and who the199 taxpayer may contact if the taxpayer has questions about the reasons for the assessment200 change or the appeals process;201 (G)(J) If available, the public website address of the office of the county board of tax202 assessors;203 (H)(K) A statement that all documents and records used to determine the current value204 are available upon request; and205 (L) Such other details as may be required by the department after consultation with the206 chairpersons of the House Committee on Ways and Means and the S enate Finance207 Committee.208 (I)(i) The current year's estimated roll-back rate for each levying or recommending209 authority that certified its estimated roll-back rate for the current year to the county210 board of tax assessors and county tax commissioner by the date specified under Code211 Section 48-5-306.2; or212 (ii) For each levying or recommending authority that did not certify its estimated roll-213 back rate to the county board of tax assessors and county tax c ommissioner by the214 date specified in Code Section 48-5-306.2, the millage rate that was actually levied215 by or on behalf of such authority for the previous tax year, an d an estimate of the216 amount of ad valorem taxes due for the assessed property based on such millage rate217 and the amount of the current assessment.218 (2) In addition to the items required under paragraph (1) of t his subsection, the notice219 shall contain a statement of the taxpayer's right to an appeal and other information which220 shall be in substantially the following form:221 S. B. 566 - 9 - 26 LC 44 3528S 'The amount of your ad valorem tax bill for this year will be b ased on the222 appraised and assessed values specified in this notice. You ha ve the right to223 appeal these values to the county board of tax assessors.224 At the time of filing your appeal you must select one of the following options:225 (A) An appeal to the county board of equalization with appeal to the superior226 court;227 (B) To arbitration without an appeal to the superior court; or228 (C) For a parcel of nonhomestead property with a fair market v alue in excess229 of $500,000.00 as shown on the taxpayer's annual notice of current assessment230 under this Code section, or for one or more account numbers of wireless231 property as defined in subparagraph (e.1)(1)(B) of Code Section 48-5-311 with232 an aggregate fair market value in excess of $500,000.00 as show n on the233 taxpayer's annual notice of current assessment under this Code section, to a234 hearing officer with appeal to the superior court.235 If you wish to file an appeal, you must do so in writing no later than 45 days after236 the date of this notice. If you do not file an appeal by this date, your right to file237 an appeal will be lost. For further information on the proper method for filing an238 appeal, you may contact the county board of tax assessors which is located at:239 (insert address) and which may be contacted by telephone at: (i nsert telephone240 number).241 'You have the right to appeal the property values provided in this notice. You may242 also apply for homestead exemptions if your property was owned and occupied243 as your family's primary residence and homestead as of January 1 of (insert244 current tax year).245 If you wish to appeal your (insert current tax year) property v alue or apply for246 homestead exemptions, you must do so in writing no later than 45 days after the247 S. B. 566 - 10 - 26 LC 44 3528S date of this notice. If you do not file an appeal or apply for homestead exemption248 by this date, your right to do so for this year will be lost.249 ***You are required by law to notify (insert name of appropriat e local tax250 official) if you become ineligible for any homestead exemption listed in this251 notice and subject to penalties for failing to do so.***252 For further information on filing appeals, applying for homestead exemptions, or253 reporting your ineligibility for a homestead exemption, visit o r contact (insert254 name of appropriate local tax official, board, or office togeth er with their255 respective website, address, and telephone number or, in the ev ent that one or256 more local tax officials, boards, or offices is responsible for such duties, insert the257 names and identify the responsibilities of the appropriate loca l tax officials,258 boards, or offices together with their respective websites, addresses, and telephone259 numbers).260 Please note: Tax rates for counties, school districts, and cities will be established261 by each local government later this year. If a local government intends to increase262 revenue on existing properties, they must advertise and hold three public meetings263 to do so.'264 (3) The annual notice required under this Code section shall be mailed no later than July265 1; provided, however, that the annual notice required under this Code section may be sent266 later than July 1 for the purpose of notifying property owners of corrections and mapping267 changes."268 SECTION 7.269 Said chapter is further amended by repealing Code Section 48-5- 306.2, relating to annual270 calculation and certification of estimated roll-back rate, in its entirety.271 S. B. 566 - 11 - 26 LC 44 3528S SECTION 8.272 Said chapter is further amended in Code Section 48-5-2, relating to definitions, by repealing273 paragraph (2.1).274 SECTION 9.275 (a) This Act shall become effective upon its approval by the Governor or upon its becoming276 law without such approval.277 (b) This Act shall be applicable to taxable years beginning on or after January 1, 2026.278 SECTION 10.279 All laws and parts of laws in conflict with this Act are repealed.280 S. B. 566 - 12 -