HB1582: HB1582 Fayette County; school district ad valorem tax; provide homestead exemption

26 LC 47 4246/AP House Bill 1582 (AS PASSED HOUSE AND SENATE) By: Representatives Bonner of the 73 rd, Mathiak of the 82 nd, Jackson of the 68 th, and Bazemore of the 69th A BILL TO BE ENTITLED AN ACT To provide a homestead exemption from Fayette County school district ad valorem taxes for1 educational purposes in a floating proportional amount based upon any increased property2 tax collections that exceed the value of property taxes collected in tax year 2025; to provide3 for definitions; to specify the terms and conditions of the exe mption and the procedures4 relating thereto; to provide for applicability; to provide for compliance with constitutional5 requirements; to provide for a referendum, effective dates, aut omatic repeal, mandatory6 execution of election, and judicial remedies regarding failure to comply; to provide for7 related matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 (a) As used in this Act, the term:11 (1) "Ad valorem taxes for educational purposes" means all ad v alorem taxes for12 educational purposes levied by, for, or on behalf of the Fayett e County school district,13 including, but not limited to, any ad valorem taxes to pay interest on and to retire county14 school district bonded indebtedness.15 (2) "Base year" means the taxable year beginning on January 1, 2025.16 H. B. 1582 - 1 - 26 LC 47 4246/AP (3) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of17 the O.C.G.A., as amended.18 (b) Each resident of the Fayette County school district is gra nted an exemption on such19 person's homestead from Fayette County school district ad valor em taxes for educational20 purposes in an amount authorized by and calculated pursuant to subsection (c) of this section21 as determined by the tax commissioner of Fayette County in coordination with the Fayette22 County Board of Education. Such homestead exemption shall comm ence on January 1,23 2027. The value of that property in excess of such exempted amount shall remain subject to24 taxation.25 (c)(1) In any tax year subsequent to the base year, the tax commissioner of Fayette County26 shall determine the amount of ad valorem taxes for educational purposes collected from all27 properties that is in excess of the ad valorem taxes for educational purposes collected from28 all properties in the base year.29 (2) If the excess amount of ad valorem taxes for educational purposes collected from all30 properties in a particular tax year exceeds 100 percent of the ad valorem taxes for31 educational purposes collected from all properties in the base year, the full value of such32 tax collections exceeding such amount shall be segregated from all other proceeds of the33 ad valorem taxes for educational purposes collected in such tax year, and such segregated34 funds shall be maintained to offset the cost of the exemption p rovided by this Act in the35 next subsequent tax year. As soon as the tax digest for the ne xt subsequent tax year is36 approved, the Fayette County Board of Education in coordination w i t h t h e t a x37 commissioner of Fayette County, shall calculate the dollar value to be equally applied to38 all properties receiving the exemption provided for by this Act in such next subsequent tax39 year. The value of the exemption to be provided each year shall be at the discretion of the40 Fayette County Board of Education and which value may be set at an amount that does not41 use all of the segregated funds provided for in this paragraph. In the event that the value42 of the exemption set in a particular year does not use all of t he segregated funds, the43 H. B. 1582 - 2 - 26 LC 47 4246/AP remainder of such funds shall be deposited in the general fund of the school district. In no44 event shall the value of the exemption be set at an amount that would exceed the value of45 the segregated funds provided for in this subparagraph for a pa rticular year. The tax46 commissioner of Fayette County shall then provide such segregat ed amount from the47 previous tax year, plus any interest earned on such segregated funds, to the Fayette County48 Board of Education to be utilized as provided for in this subparagraph.49 (3) If the excess amount of ad valorem taxes for educational purposes collected from all50 properties in a particular tax year is negative or does not exc eed 100 percent of the ad51 valorem taxes for educational purposes collected from all properties in the base year, the52 value of the homestead exemption provided by this Act for the n ext subsequent tax year53 shall be zero dollars.54 (d) A person shall not receive the homestead exemption granted by subsection (b) of this55 section unless such person or person's agent files an application with the tax commissioner56 of Fayette County, giving such information relative to receivin g such exemption as will57 enable the tax commissioner of Fayette County to make a determination regarding the initial58 and continuing eligibility of such person for such exemption. The tax commissioner of59 Fayette County shall provide application forms for this purpose.60 (e) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of61 the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year62 so long as the person granted the homestead exemption under subsection (b) of this section63 occupies such residence as a homestead. After a person has filed the proper application as64 provided in subsection (d) of this section, it shall not be nec essary to make application65 thereafter for any year, and such exemption shall continue to be allowed to such person. It66 shall be the duty of any person granted the homestead exemption under subsection (b) of this67 section to notify the tax commissioner of Fayette County in the event that such person for68 any reason becomes ineligible for such exemption.69 H. B. 1582 - 3 - 26 LC 47 4246/AP (f) The exemption granted by subsection (b) of this section shall not apply to or affect any70 state ad valorem taxes, county ad valorem taxes for county purposes, municipal ad valorem71 taxes for municipal purposes, or independent school district ad valorem taxes for educational72 purposes. The homestead exemption granted by subsection (b) of this section shall be in73 addition to and not in lieu of any other homestead exemption applicable to Fayette County74 school district ad valorem taxes for educational purposes.75 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years76 beginning on or after January 1, 2027.77 SECTION 2.78 In accordance with the requirements of Article VII, Section II of the Constitution of the State79 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority80 vote in both the Senate and the House of Representatives.81 SECTION 3.82 The election superintendent of Fayette County shall call and conduct an election as provided83 in this section for the purpose of submitting this Act to the e lectors of the Fayette County84 school district for approval or rejection. The election superi ntendent shall conduct that85 election on the Tuesday following the first Monday in November, 2026, and shall issue the86 call and conduct that election as provided by general law. The election superintendent shall87 cause the date and purpose of the election to be published once a w e e k f o r t w o w e e k s88 immediately preceding the date thereof in the official organ of Fayette County. The ballot89 shall have written or printed thereon the words:90 H. B. 1582 - 4 - 26 LC 47 4246/AP "( ) YES91 92 ( ) NO93 94 95 Shall the Act be approved which provides a homestead exemption from Fayette County school district ad valorem taxes for educational purposes in a floating proportional amount based upon the amount of propert y taxes collected in a particular tax year that exceeds the value of pr operty taxes collected in tax year 2025?" All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring96 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on97 such question are for approval of the Act, Section 1 of this Act shall become of full force and98 effect on January 1, 2027. If the Act is not so approved or if the election is not conducted99 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall100 be automatically repealed on the 365th calendar day following the election date provided for101 in this section. The expense of such election shall be borne by Fayette County. It shall be102 the election superintendent's duty to certify the result thereof to the Secretary of State. The103 provisions of this section shall be mandatory upon the election superintendent and are not104 intended as directory. If the election superintendent fails or refuses to comply with this105 section, any elector of the Fayette County school district may apply for a writ of mandamus106 to compel the election superintendent to perform his or her duties under this section. If the107 court finds that the election superintendent has not complied with this section, the court shall108 fashion appropriate relief requiring the election superintenden t to call and conduct such109 election on the date required by this section or on the next da te authorized for special110 elections provided for in Code Section 21-2-540 of the O.C.G.A.111 SECTION 4.112 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon113 its approval by the Governor or upon its becoming law without such approval.114 H. B. 1582 - 5 - 26 LC 47 4246/AP SECTION 5.115 All laws and parts of laws in conflict with this Act are repealed.116 H. B. 1582 - 6 -