HB 846: Cherokee County; ad valorem tax; provide homestead exemption

House Bill 846 (AS PASSED HOUSE AND SENATE)

By: Representatives Thomas of the 21st, Ridley of the 22nd, Scoggins of the 14th, Jasperse of the 11th, Jones of the 47th, and others

A BILL TO BE ENTITLED

AN ACT

To provide a homestead exemption from Cherokee County ad valorem taxes for county purposes in an amount as determined from the proceeds generated from the collection of the retail homestead option sales and use tax for residents of that county; to provide for definitions; to specify the terms and conditions of the exemption and the procedures relating thereto; to provide for applicability; to provide for compliance with constitutional requirements; to provide for a referendum, effective dates, automatic repeal, mandatory execution of election, and judicial remedies regarding failure to comply; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

(a) For the purposes of this Act, the terms used in this Act shall have the same meaning as such terms are defined in Part 4 of Article 2A of Chapter 8 of Title 48 of the O.C.G.A., the "Alternative Homestead Option Sales and Use Tax Act," as amended.

(b) Each resident of Cherokee County is granted an additional exemption on that person's homestead from all Cherokee County ad valorem taxes for county purposes in an amount authorized by and calculated pursuant to Part 4 of Article 2A of Chapter 8 of Title 48 of the O.C.G.A., as amended, for the immediately preceding taxable year as determined by the tax commissioner of Cherokee County. This homestead exemption shall commence on January 1 of the year immediately following the first complete calendar year in which the sales and use tax was levied under Part 4 of Article 2A of Chapter 8 of Title 48 of the O.C.G.A, as amended. The value of that property in excess of such exempted amount shall remain subject to taxation.

(c) A person shall not receive the homestead exemption granted by subsection (b) of this section unless such person or person's agent files an application with the tax commissioner of Cherokee County, giving the person's age and such additional information relative to receiving such exemption as will enable the tax commissioner of Cherokee County to make a determination regarding the initial and continuing eligibility of such person for such exemption. The tax commissioner of Cherokee County shall provide application forms for this purpose.

(d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year so long as the person granted the homestead exemption under subsection (b) of this section occupies the residence as a homestead. After a person has filed the proper application as provided in subsection (c) of this section, it shall not be necessary to make application thereafter for any year, and the exemption shall continue to be allowed to such person. It shall be the duty of any person granted the homestead exemption under subsection (b) of this section to notify the tax commissioner of Cherokee County in the event that such person for any reason becomes ineligible for such exemption.

(e) The exemption granted by subsection (b) of this section shall not apply to or affect any state ad valorem taxes, county or independent school district ad valorem taxes for educational purposes, or municipal ad valorem taxes for municipal purposes. The homestead exemption granted by subsection (b) of this section shall be in addition to and not in lieu of any other homestead exemption applicable to Cherokee County ad valorem taxes for county purposes.

(f) The exemption granted by subsection (b) of this section shall only become effective if the electors of the special district, the boundary of which is conterminous with Cherokee County, approve the imposition of a local option sales and use tax pursuant to Part 4 of Article 2A of Chapter 8 of Title 48 of the O.C.G.A., as amended, at a special election conducted on the same date as the election provided for under Section 3 of this Act.

(g) The exemption granted by subsection (b) of this section shall apply to all taxable years beginning on or after January 1 of the year specified by subsection (b) of this section.

SECTION 2.

In accordance with the requirements of Article VII, Section II of the Constitution of the State of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority vote in both the Senate and the House of Representatives.

SECTION 3.

The election superintendent of Cherokee County shall call and conduct a special election as provided in this section for the purpose of submitting this Act to the electors of Cherokee County for approval or rejection. The election superintendent shall conduct that special election on the Tuesday following the first Monday in November, 2025, and shall issue the call and conduct that election as provided by general law. The election superintendent shall cause the date and purpose of the election to be published once a week for two weeks immediately preceding the date thereof in the official organ of Cherokee County. The ballot shall have written or printed thereon the words:

"( ) YES Shall the Act be approved which provides a homestead exemption from Cherokee County ad valorem taxes for county purposes of up to 100 percent ( ) NO as determined from the proceeds generated from the collection of a retail homestead option sales and use tax for residents of Cherokee County?" All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on such question are for approval of the Act, Section 1 of this Act shall become of full force and effect immediately and shall be applicable to all taxable years specified by subsection (b) of Section 1 of this Act. If the Act is not so approved, if the election is not conducted as provided in this section, or if the condition specified in subsection (f) of Section 1 of this Act is not met, Section 1 of this Act shall not become effective, and this Act shall be automatically repealed on the 365th calendar day following the election date provided for in this section. The expense of such election shall be borne by Cherokee County. It shall be the election superintendent's duty to certify the result thereof to the Secretary of State. The provisions of this section shall be mandatory upon the election superintendent and are not intended as directory. If the election superintendent fails or refuses to comply with this section, any elector of Cherokee County may apply for a writ of mandamus to compel the election superintendent to perform his or her duties under this section. If the court finds that the election superintendent has not complied with this section, the court shall fashion appropriate relief requiring the election superintendent to call and conduct such election on the date required by this section or on the next date authorized for special elections provided for in Code Section 21-2-540 of the O.C.G.A.

SECTION 4.

Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon its approval by the Governor or upon its becoming law without such approval, provided that an Act to amend Article 2A of Chapter 8 of Title 48 of the O.C.G.A., relating to homestead option sales and use tax, so as to provide for an alternative homestead option sales tax, is enacted in the 2025 regular session of the General Assembly of Georgia. If such Act is not approved, this Act shall not become effective and shall be automatically repealed on July 1, 2025.

SECTION 5.

All laws and parts of laws in conflict with this Act are repealed.