HB1581: HB1581 Fayetteville, City of; ad valorem tax for municipal purposes; provide homestead exemption

26 LC 47 4245/AP House Bill 1581 (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 City of Fayetteville ad valorem taxes for municipal1 purposes in a floating proportional amount based upon any increased property tax collections2 that exceed the value of property taxes collected in tax year 2025; to provide for definitions;3 to specify the terms and conditions of the exemption and the procedures relating thereto; to4 provide for applicability; to provide for compliance with const itutional requirements; to5 provide for a referendum, effective dates, automatic repeal, mandatory execution of election,6 and judicial remedies regarding failure to comply; to provide for related matters; to repeal7 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 municipal purposes" means all ad valorem taxes for municipal12 purposes levied by, for, or on behalf of the City of Fayetteville, including, but not limited13 to, any ad valorem taxes to pay interest on and to retire municipal bonded indebtedness.14 (2) "Base year" means the taxable year beginning on January 1, 2025.15 H. B. 1581 - 1 - 26 LC 47 4245/AP (3) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of16 the O.C.G.A., as amended.17 (b) Each resident of the City of Fayetteville is granted an ex emption on such person's18 homestead from City of Fayetteville ad valorem taxes for municipal purposes in an amount19 authorized by and calculated pursuant to subsection (c) of this section as determined by the20 governing authority of the City of Fayetteville. Such homestead exemption shall commence21 on January 1, 2027. The value of that property in excess of suc h exempted amount shall22 remain subject to taxation.23 (c)(1) In any tax year subsequent to the base year, the governing authority of the City of24 Fayetteville shall determine the amount of ad valorem taxes for municipal purposes25 collected from all properties that is in excess of the ad valor em taxes for municipal26 purposes collected from all properties in the base year.27 (2) If the excess amount of ad valorem taxes for municipal pur poses collected from all28 properties in a particular tax year exceeds 100 percent of the ad valorem taxes for29 municipal purposes collected from all properties in the base year, the full value of such tax30 collections exceeding such amount shall be segregated from all other proceeds of the ad31 valorem taxes for municipal purposes collected in such tax year, and such segregated funds32 shall be maintained to offset the cost of the exemption provide d by this Act in the next33 subsequent tax year. As soon as the tax digest for the next subsequent tax year is approved,34 the governing authority of the City of Fayetteville shall calcu late the dollar value to be35 equally applied to all properties receiving the exemption provided for by this Act in such36 next subsequent tax year. The value of the exemption to be provided each year shall be at37 the discretion of the governing authority of the City of Fayetteville and which value may38 be set at an amount that does not use all of the segregated fun ds provided for in this39 paragraph. In the event that the value of the exemption set in a particular year does not use40 all of the segregated funds, the remainder of such funds shall be deposited in the general41 fund of the city. In no event shall the value of the exemption be set at an amount that42 H. B. 1581 - 2 - 26 LC 47 4245/AP would exceed the value of the segregated funds provided for in this paragraph for a43 particular year. The segregated amount from the previous tax year, plus any interest earned44 on such segregated funds, shall be utilized as provided for in this paragraph.45 (3) If the excess amount of ad valorem taxes for municipal pur poses collected from all46 properties in a particular tax year is negative or does not exc eed 100 percent of the ad47 valorem taxes for municipal purposes collected from all propert ies in the base year, the48 value of the homestead exemption provided by this Act for the n ext subsequent tax year49 shall be zero dollars.50 (d) A person shall not receive the homestead exemption granted by subsection (b) of this51 section unless such person or person's agent files an application with the governing authority52 of the City of Fayetteville, giving such information relative to receiving such exemption as53 will enable such governing authority to make a determination re garding the initial and54 continuing eligibility of such person for such exemption. The City of Fayetteville shall55 provide application forms for this purpose.56 (e) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of57 the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year58 so long as the person granted the homestead exemption under subsection (b) of this section59 occupies such residence as a homestead. After a person has filed the proper application as60 provided in subsection (d) of this section, it shall not be nec essary to make application61 thereafter for any year, and such exemption shall continue to be allowed to such person. It62 shall be the duty of any person granted the homestead exemption under subsection (b) of this63 section to notify the governing authority of the City of Fayetteville, or the designee thereof,64 in the event that such person for any reason becomes ineligible for such exemption.65 (f) The exemption granted by subsection (b) of this section shall not apply to or affect any66 state ad valorem taxes, county ad valorem taxes for county purp oses, or county or67 independent school district ad valorem taxes for educational pu rposes. The homestead68 exemption granted by subsection (b) of this section shall be in addition to and not in lieu of69 H. B. 1581 - 3 - 26 LC 47 4245/AP any other homestead exemption applicable to City of Fayettevill e ad valorem taxes for70 municipal purposes.71 (g) The exemption granted by subsection (b) of this section shall apply to all taxable years72 beginning on or after January 1, 2027.73 SECTION 2.74 In accordance with the requirements of Article VII, Section II of the Constitution of the State75 of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority76 vote in both the Senate and the House of Representatives.77 SECTION 3.78 The municipal election superintendent of the City of Fayetteville shall call and conduct an79 election as provided in this section for the purpose of submitting this Act to the electors of80 the City of Fayetteville for approval or rejection. The municipal election superintendent shall81 conduct that election on the Tuesday following the first Monday in November, 2026, and82 shall issue the call and conduct that election as provided by g eneral law. The municipal83 election superintendent shall cause the date and purpose of the election to be published once84 a week for two weeks immediately preceding the date thereof in the official organ of Fayette85 County. The ballot shall have written or printed thereon the words:86 "( ) YES87 88 ( ) NO 89 90 91 Shall the Act be approved which provides a homestead exemption from City of Fayetteville ad valorem taxes for municipal purposes in a fl oating proportional amount based upon the amount of property taxes collected in a particular tax year that exceed 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 desiring92 to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on93 such question are for approval of the Act, Section 1 of this Act shall become of full force and94 H. B. 1581 - 4 - 26 LC 47 4245/AP effect on January 1, 2027. If the Act is not so approved or if the election is not conducted95 as provided in this section, Section 1 of this Act shall not become effective, and this Act shall96 be automatically repealed on the first day of January immediate ly following that election97 date. The expense of such election shall be borne by the City of Fayetteville. It shall be the98 municipal election superintendent's duty to certify the result thereof to the Secretary of State.99 The provisions of this section shall be mandatory upon the municipal election superintendent100 and are not intended as directory. If the municipal election s uperintendent fails or refuses101 to comply with this section, any elector of the City of Fayette ville may apply for a writ of102 mandamus to compel the municipal election superintendent to per form his or her duties103 under this section. If the court finds that the municipal elec tion superintendent has not104 complied with this section, the court shall fashion appropriate relief requiring the municipal105 election superintendent to call and conduct such election on the date required by this section106 or on the next date authorized for special elections provided f or in Code Section 21-2-540107 of the O.C.G.A.108 SECTION 4.109 Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon110 its approval by the Governor or upon its becoming law without such approval.111 SECTION 5.112 All laws and parts of laws in conflict with this Act are repealed.113 H. B. 1581 - 5 -