HB1583: HB1583 Fayette County; ad valorem tax; floating proportional amount based upon any increased property tax collections; provide new exemption

26 LC 47 4244/AP House Bill 1583 (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 amend an Act provide for residents of specified ages a homestead exemption from certain1 ad valorem taxes levied by Fayette County for county purposes and to provide a homestead2 exemption from certain Fayette County School District ad valore m taxes for educational3 purposes, approved April 15, 1996 (Ga. L. 1996, p. 4453), so as to provide a new exemption4 in a floating proportional amount based upon any increased prop erty tax collections that5 exceed the value of property taxes collected in tax year 2025 to each resident of the county6 from ad valorem taxes for county purposes; to provide for compl iance with constitutional7 requirements; to provide for a referendum, effective dates, aut omatic repeal, mandatory8 execution of election, and judicial remedies regarding failure to comply; to provide for9 related matters; to repeal conflicting laws; and for other purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 An Act provide for residents of specified ages a homestead exem ption from certain ad13 valorem taxes levied by Fayette County for county purposes and to provide a homestead14 exemption from certain Fayette County School District ad valore m taxes for educational15 H. B. 1583 - 1 - 26 LC 47 4244/AP purposes, approved April 15, 1996 (Ga. L. 1996, p. 4453), is am ended by adding a new16 subsection to Section 4 to read as follows:17 (a.1)(1) As used in this subsection the term "base year" means the taxable year beginning18 on January 1, 2025.19 (2) Each resident of Fayette County is granted an exemption on such person's homestead20 from Fayette County ad valorem taxes for county purposes in an amount authorized by21 and calculated pursuant to paragraph (3) of this subsection as determined by the tax22 commissioner of Fayette County in coordination with the governing authority of Fayette23 County. Such homestead exemption shall commence on January 1, 2027. The value of24 that property in excess of such exempted amount shall remain subject to taxation.25 (3)(A) In any tax year subsequent to the base year, the tax co mmissioner of Fayette26 County shall determine the amount of ad valorem taxes for county purposes collected27 from all properties that is in excess of the ad valorem taxes f or county purposes28 collected from all properties in the base year.29 (B) If the excess amount of ad valorem taxes for county purpos es collected from all30 properties in a particular tax year exceeds 100 percent of the ad valorem taxes for31 county purposes collected from all properties in the base year, the full value of such tax32 collections exceeding such amount shall be segregated from all other proceeds of the33 ad valorem taxes for county purposes collected in such tax year, and such segregated34 funds shall be maintained to offset the cost of the exemption provided by this Act in the35 next subsequent tax year. As soon as the tax digest for the next subsequent tax year is36 approved, the governing authority of Fayette County in coordina tion with the tax37 commissioner of Fayette County, shall calculate the dollar value to be equally applied38 to all properties receiving the exemption provided for by this Act in such next39 subsequent tax year. The value of the exemption to be provided each year shall be at40 the discretion of the governing authority of Fayette County and which value may be set41 at an amount that does not use all of the segregated funds prov ided for in this42 H. B. 1583 - 2 - 26 LC 47 4244/AP paragraph. In the event that the value of the exemption set in a particular year does not43 use all of the segregated funds, the remainder of such funds sh all be deposited in the44 general fund of the county. In no event shall the value of the exemption be set at an45 amount that would exceed the value of the segregated funds prov ided for in this46 subparagraph for a particular year. The tax commissioner of Fayette County shall then47 provide such segregated amount from the previous tax year, plus any interest earned on48 such segregated funds, to the governing authority of Fayette Co unty to be utilized as49 provided for in this subparagraph.50 (C) If the excess amount of ad valorem taxes for county purpos es collected from all51 properties in a particular tax year is negative or does not exceed 100 percent of the ad52 valorem taxes for county purposes collected from all properties in the base year, the53 value of the homestead exemption provided by this Act for the next subsequent tax year54 shall be zero dollars."55 SECTION 2.56 In accordance with the requirements of Article VII, Section II of the Constitution of the State57 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority58 vote in both the Senate and the House of Representatives.59 SECTION 3.60 The election superintendent of Fayette County shall call and conduct an election as provided61 in this section for the purpose of submitting this Act to the e lectors of Fayette County for62 approval or rejection. The election superintendent shall conduct that election on the Tuesday63 following the first Monday in November of 2026 and shall issue the call and conduct that64 election as provided by general law. The election superintende nt shall cause the date and65 purpose of the election to be published once a week for two weeks immediately preceding66 H. B. 1583 - 3 - 26 LC 47 4244/AP the date thereof in the official organ of Fayette County. The ballot shall have written or67 printed thereon the words:68 "( ) YES69 70 ( ) NO 71 72 73 Shall the Act be approved which provides a homestead exemption from Fayette County ad valorem taxes for county purposes in a floati ng proportional amount based upon the amount of property taxes collected in a particular tax year that exceeds the value of property taxes collected in tax year 2025?" All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring74 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on75 such question are for approval of the Act, Section 1 of this Act shall become of full force and76 effect on January 1, 2027. If the Act is not so approved or if the election is not conducted77 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall78 be automatically repealed on the 365th calendar day following the election date provided for79 in this section. The expense of such election shall be borne by Fayette County. It shall be80 the election superintendent's duty to certify the result thereof to the Secretary of State. The81 provisions of this section shall be mandatory upon the election superintendent and are not82 intended as directory. If the election superintendent fails or refuses to comply with this83 section, any elector of Fayette County may apply for a writ of mandamus to compel the84 election superintendent to perform his or her duties under this section. If the court finds that85 the election superintendent has not complied with this section, the court shall fashion86 appropriate relief requiring the election superintendent to call and conduct such election on87 the date required by this section or on the next date authorized for special elections provided88 for in Code Section 21-2-540 of the O.C.G.A.89 SECTION 4.90 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon91 its approval by the Governor or upon its becoming law without such approval.92 H. B. 1583 - 4 - 26 LC 47 4244/AP SECTION 5.93 All laws and parts of laws in conflict with this Act are repealed.94 H. B. 1583 - 5 -