HB 1228: Ad valorem tax; assessment of real property purchased or acquired by certain business enterprises at 100 percent of its fair market value; provide

Under current Georgia law, real property is generally assessed and taxed the same way regardless of who owns it. This bill would create a new category called 'business enterprise property': single-family rental homes owned, directly or indirectly, by a corporation, LLC, partnership, trust, or similar entity that holds an interest in at least 1,000 such homes statewide for rental income. Nonprofit 501(c)(3) organizations are excluded. These properties would be assessed at 100 percent of fair market value, and any tax proceeds collected because of that assessment would first go toward reducing property tax bills on homesteads (owner-occupied homes) in the same taxing jurisdiction, applied as a dollar-for-dollar credit. Owners of qualifying property must certify their ownership to the county board of tax assessors, with deadlines and penalties (double the tax shortfall plus interest) for failing to do so. The whole Act only takes effect January 1, 2027, and only if Georgia voters approve a constitutional amendment in the November 2026 election authorizing this kind of separate property classification; otherwise the Act is automatically repealed.

• Creates a new property tax category, 'business enterprise property,' for single-family rental homes controlled by entities owning 1,000 or more such homes in Georgia.
• Requires those properties to be assessed and taxed at 100 percent of fair market value rather than under standard assessment rules.
• Directs that any extra tax revenue collected from this new assessment must first be used to reduce property tax bills on homesteads in the same taxing jurisdiction.
• Requires owners of qualifying properties to certify ownership with the county board of tax assessors, with specific deadlines depending on when the property was acquired.
• Imposes a penalty of twice the tax shortfall, plus interest, on owners who fail to certify as required, collectible as a lien on the property.
• Makes the entire Act contingent on voters approving a related constitutional amendment in the November 2026 election, with automatic repeal if the amendment fails.

Large corporate and institutional owners of single-family rental homes (with 1,000 or more properties in the state), county boards of tax assessors who must process certifications, county and municipal tax collectors who administer the homestead credit, and homeowners in the same tax jurisdictions who could see reduced property tax bills.

If enacted, large corporate landlords would pay property taxes on their full market value rather than potentially lower assessments, and that extra revenue would flow directly into lowering tax bills for homeowners nearby. The change depends entirely on a statewide constitutional amendment vote in November 2026.

• Section 1 revises O.C.G.A. § 48-5-3 to note that property tax liability applies 'except as otherwise provided by law,' opening the door to the new classification.
• Section 2 adds subsection (c.7) to O.C.G.A. § 48-5-7, requiring business enterprise property to be assessed at 100 percent of fair market value.
• Section 3 creates new O.C.G.A. § 48-5-7.8, defining 'business enterprise,' 'business enterprise property' (entities holding interests in 1,000+ single-family rentals), and excluding 501(c)(3) nonprofits.
• Section 3(b) sets certification deadlines: January 1, 2027 for existing property, or within 90 days of a deed transfer for property acquired after that date.
• Section 3(c) sets penalties for noncompliance at twice the tax shortfall plus interest, enforceable as a property lien.
• Section 3(f) requires tax proceeds from this assessment to first reduce homestead property tax bills in the same jurisdiction, applied as a dollar-for-dollar credit up to the homeowner's tax liability.
• Section 3(h) directs the state revenue commissioner to create standard certification and release forms, including a sworn compliance oath.
• Section 4 makes the entire Act effective January 1, 2027 only if voters ratify a related constitutional amendment in November 2026; otherwise the Act is repealed on that date.

1. 2026-02-09House Second Readers (Cámara de Representantes)
2. 2026-02-06House First Readers (Cámara de Representantes)
3. 2026-02-05House Hopper (Cámara de Representantes)

• Derrick McCollum (R, HD-030)Patrocinador principal
• Mary Oliver (D, HD-084)
• Phil Olaleye (D, HD-059)
• Esther Panitch (D, HD-051)
• Joseph Gullett (R, HD-019)
• Chuck Efstration (R, HD-104)

• property taxes
• corporate landlords
• housing
• homestead tax relief
• constitutional amendment