SB584: SB584 Ad Valorem Tax; class action suits by taxpayers for refunds; prohibit

26 LC 44 3474 Senate Bill 584 By: Senators Burns of the 23rd, Anavitarte of the 31st, Dickerson of the 21st, Strickland of the 42nd, Hatchett of the 50th and others A BILL TO BE ENTITLED AN ACT To amend Code Section 9-11-23 and Article 7 of Chapter 5 of Title 48 of the Official Code1 of Georgia Annotated, relating to class actions and miscellaneo us local administrative2 provisions relative to ad valorem taxation of property, respect ively, so as to prohibit class3 action suits by taxpayers for refunds; to provide for related m atters; to provide for an4 effective date; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Code Section 9-11-23 of the Official Code of Georgia Annotated, relating to class actions,8 is amended by revising subsection (e) as follows:9 "(e) A Except as otherwise provided in subsection (h) of Code Section 48-5-380, a class10 action shall not be dismissed or compromised without the approval of the court, and notice11 of the proposed dismissal or compromise shall be given to all members of the class in such12 manner as the court directs."13 S. B. 584 - 1 - 26 LC 44 3474 SECTION 2.14 Article 7 of Chapter 5 of Title 48 of the Official Code of Geor gia Annotated, relating to15 miscellaneous local administrative provisions relative to ad valorem taxation of property, is16 amended by revising Code Section 48-5-380, relating to refunds of taxes and license fees by17 counties and municipalities, time and manner of filing claims a nd actions for refund, and18 authority to approve or disapprove claims, as follows:19 "48-5-380.20 (a) As provided in this Code section, each county and municipa lity shall refund to21 taxpayers any and all taxes and license fees:22 (1) Which are determined to have been erroneously or illegally assessed and collected23 from the taxpayers under the laws of this state or under the resolutions or ordinances of24 any county or municipality; or25 (2) Which are determined to have been voluntarily or involunta rily overpaid by the26 taxpayers.27 (a.1) If property owners have been billed and have remitted pr operty tax payments to28 either a county or a municipality based on the fair market valu e of the land and29 subsequently the fair market value of such land is reduced on a n appeal, then the county30 or the municipality shall reimburse the property owner the difference between tax remitted31 and the final tax owed for each year in which the incorrect fai r market value of the land32 was used in the calculations.33 (b) Any taxpayer from whom a tax or license fee was collected who alleges that such tax34 or license fee was collected illegally or erroneously may file a claim for a refund with the35 governing authority of the county or municipality at any time w ithin one year or, in the36 case of taxes, three years after the date of the payment of the tax or license fee to the37 county or municipality. The claim for refund shall be in writing and shall be in the form38 and shall contain the information required by the appropriate g overning authority. The39 claim shall include a summary statement of the grounds upon whi ch the taxpayer relies. 40 S. B. 584 - 2 - 26 LC 44 3474 In the event the taxpayer desires a conference or hearing before the governing authority in41 connection with any claim for a refund, the taxpayer shall so s pecify in writing in the42 claim. If the claim conforms to the requirements of this Code section, the governing43 authority shall grant a conference at a time specified by the g overning authority. The44 governing authority shall consider information contained in the taxpayer's claim for a45 refund and such other information as is available. The governing authority shall approve46 or disapprove the taxpayer's claim and shall notify the taxpayer of its action. In the event47 any claim for refund is approved, the governing authority shall proceed under48 subsection (a) of this Code section to give effect to the terms of that subsection. No refund49 provided for in this Code section shall be assignable. Submitting a request for refund to50 the governing authority is not a prerequisite to bringing suit.51 (c) The filing of a request for a refund with the governing authority under subsection (b)52 of this Code section shall act to stay the time period for init iating suit for a refund. 53 Following the filing of a request for refund with the governing authority, no suit may be54 commenced until the earlier of the governing authority's denial of the request for refund55 or the expiration of 90 days from the date of filing the claim. Alternatively, any taxpayer56 may forgo requesting a refund from the governing authority unde r subsection (b) of this57 Code section and elect to proceed directly to filing suit.58 (d) Any refunds approved or allowed under this Code section shall be paid from funds of59 the county, the municipality, the county board of education, the state, or any other entity60 to which the taxes or license fees were originally paid. Refun ds shall be paid within 6061 days of the approval of the taxpayer's claim or within 60 days of the entry of a final62 decision in any action for a refund.63 (e) The governing authority of any county, by resolution, and the governing authority of64 any municipality, by ordinance, shall adopt rules and regulatio ns governing the65 administration of this Code section and may delegate the admini stration of this Code66 section, including the approval or disapproval of claims where the reason for the claim is67 S. B. 584 - 3 - 26 LC 44 3474 based on an obvious clerical error, to an appropriate department in local government. In68 disputed cases where there is no obvious error, the approval or disapproval of claims may69 not be delegated by the governing authority.70 (f) Nothing contained in subsections (b) or (c) of this Code s ection shall be deemed the71 exclusive remedy to seek a refund nor deprive taxpayers of the right to seek a refund72 mandated by subsection (a) by any other cause of action available at law or equity.73 (g) Under no circumstances may a suit for refund be commenced more than five years74 from the date of the payment of taxes or fees at issue.75 (h) A claim, action, or suit for refund shall not be submitted or maintained by the taxpayer76 on behalf of a class consisting of other taxpayers."77 SECTION 3.78 This Act shall become effective upon its approval by the Governor or upon its becoming law79 without such approval.80 SECTION 4.81 All laws and parts of laws in conflict with this Act are repealed.82 S. B. 584 - 4 -