--- title: House Ways & Means Committee, February 23, 2026 collection: meetings id: 2026-02-23/house-ways-and-means cite_as: House Ways & Means Committee, February 23, 2026, video https://vimeo.com/1167430828 (machine transcript by Georgia Commons) canonical_url: https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means md_url: https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means.md text_url: https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means/text source_url: https://vimeo.com/1167430828 date: 2026-02-23 status: machine transcript corpus_version: meetings-2026-10-23-8c15ead0f18d license: Machine transcript and summaries by Georgia Commons from the General Assembly's public video; the video stays on the General Assembly's Vimeo channel; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/meetings/2026-02-23.md previous: https://georgiacommons.org/meetings/2026-02-23/senate-finance.md next: https://georgiacommons.org/meetings/2026-02-23/house-governmental-affairs.md index: https://georgiacommons.org/meetings/index.md chamber: House body: House Ways & Means Committee body_url: https://georgiacommons.org/meetings/house-ways-and-means.md meeting_kind: committee session: 2025-2026 Regular Session start_time: 2026-02-23T15:00:00-05:00 location: 406 CLOB duration_seconds: 11612.0 video_id: 1167430828 video_title: 2.23.26 Ways and Means Subcommittees and Full Committee agenda_url: https://www.legis.ga.gov/api/document/agendas/house/Ways and Means%2F2.23.26 Ways & Means Meeting Notice.pdf bills_discussed: - HB 1148 - HB 1000 - HB 1135 - HB 1110 - HB 1370 - HB 1035 - HB 1336 - HB 1240 - HB 1228 - HB 1102 - HB 1209 - HB 1261 - HB 1111 - HB 275 - HB 942 - HB 932 - HB 565 summaries_model: gpt-6.1-sol transcript_turns: 692 transcript_chars: 164322 parts: - https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means.md?start=0 - https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means.md?start=59285 - https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means.md?start=118742 --- # House Ways & Means Committee, February 23, 2026 House Ways & Means Committee; February 23, 2026; 2025-2026 Regular Session. Video, on the General Assembly's Vimeo channel: https://vimeo.com/1167430828. Agenda: https://www.legis.ga.gov/api/document/agendas/house/Ways and Means%2F2.23.26 Ways & Means Meeting Notice.pdf. > This is a machine transcript of the General Assembly's video, made by a speech-recognition model. It is not an official record and can mishear words, names, and numbers. Speakers are not identified. The video is the record: every timestamp links to the moment it plays. ## Summary written by Georgia Commons Written by gpt-6.1-sol from the transcript below. It is not part of the record. Quote the transcript or the video, not the summary. Ways and Means subcommittees advanced bills on conservation credits, one-time income tax refunds, education donations, small-business health benefits, construction sales tax refunds, property assessment notices and taxation of airport property. They also held first hearings on overtime and tip tax relief, homeowner foreclosure protections, airport funding, taxation of large rental-home owners, senior property tax protections, utility inventory exemptions and hospital sales taxes, without voting on those proposals. Discussion included concerns about condominium finances, rental housing costs, airport operations and funding for local hospitals. Two scheduled bills were held for later consideration. The full committee then approved [HB 565](https://georgiacommons.org/bills/2025-2026/hb565), described by the chair as increasing available public-school tax credits. ## Bills discussed (17) Each account was written by gpt-6.1-sol from the stretch of the transcript it names. The bill's number is said in that stretch, unless it was the only bill on a committee's agenda. ### HB 1148. Income tax; donation of real property for conservation purposes; revise tax credits [HB 1148](https://georgiacommons.org/bills/2025-2026/hb1148) (2025-2026 Regular Session). From [0:26:11](https://vimeo.com/1167430828#t=1571s), turns 4 to 38. The sponsor said [HB 1148](https://georgiacommons.org/bills/2025-2026/hb1148) would extend the conservation tax credit through 2031, increase the credit from 25% to 50% of qualifying land value, cap credits at $500,000 for individuals and $1 million for partnerships, and set a $30 million annual total. The sponsor said Georgia develops 50,000 to 60,000 acres annually and that the credit encourages permanent conservation of a small portion. The substitute would put application review entirely with the Department of Natural Resources and add appraisal investigations and discipline through the Georgia Real Estate Commission. Asked whether owners could later withdraw, the sponsor said the restrictions are permanent. Asked about appraisal oversight, the sponsor described independent review of disputed values and possible disciplinary action. The sponsor emphasized that owners retain ongoing management costs while giving up development rights. The subcommittee unanimously approved the substitute. ### HB 1000. Income tax; one-time tax credit for individual taxpayers who filed income tax returns for the 2024 and 2025 taxable years; provide [HB 1000](https://georgiacommons.org/bills/2025-2026/hb1000) (2025-2026 Regular Session). From [0:31:36](https://vimeo.com/1167430828#t=1896s), turns 39 to 52. The sponsor said [HB 1000](https://georgiacommons.org/bills/2025-2026/hb1000) would provide approximately $1.17 billion in one-time income tax refunds, with $250 for individual filers, $375 for heads of households and $500 for married couples filing jointly. The sponsor said funding would be included in the amended budget and described the refunds as relief from rising living costs. In response to the chair, the sponsor confirmed that the same method and amounts had been used before. The subcommittee unanimously approved the bill. ### HB 1135. Education; participate in federal tax credit program for contributions of individuals to scholarship granting organizations; provide [HB 1135](https://georgiacommons.org/bills/2025-2026/hb1135) (2025-2026 Regular Session). From [0:33:52](https://vimeo.com/1167430828#t=2032s), turns 53 to 79. The sponsor said [HB 1135](https://georgiacommons.org/bills/2025-2026/hb1135) would require Georgia to opt into the federal education donation tax credit program annually. The sponsor described a $1,700 federal credit and said automatic participation would provide stability for families and allow donations from Georgia taxpayers to support education within Georgia rather than other participating states. A member asked about income eligibility, accountability and public-school participation. The sponsor said the eligibility ceiling was believed to be 300% of median income, federal rules were still being developed, and existing scholarship-granting organizations would provide an administrative framework. The sponsor also said public schools could benefit. The subcommittee approved the bill with one opposing voice vote. ### HB 1110. Georgia Small Business Healthcare Affordability Act; enact [HB 1110](https://georgiacommons.org/bills/2025-2026/hb1110) (2025-2026 Regular Session). From [0:37:27](https://vimeo.com/1167430828#t=2247s), turns 80 to 93. The sponsor said the substitute for [HB 1110](https://georgiacommons.org/bills/2025-2026/hb1110) would help businesses with 50 or fewer employees recruit and retain workers by supporting employee health benefits. The sponsor described eligibility for businesses contributing $200 monthly to individual health reimbursement arrangements, with a $600 tax credit during the first three years, declining to $400 in year four and $200 in year five. The sponsor said the program would have a $10 million overall cap and expire at the end of 2030. There were no substantive questions, and the subcommittee unanimously approved the bill. ### HB 1370. Income tax; exclude a portion of overtime compensation and cash tips [HB 1370](https://georgiacommons.org/bills/2025-2026/hb1370) (2025-2026 Regular Session). From [0:39:33](https://vimeo.com/1167430828#t=2373s), turns 94 to 117. The sponsor described [HB 1370](https://georgiacommons.org/bills/2025-2026/hb1370) as a developing proposal to exempt $2,500 in overtime compensation and $5,000 in tip income from state income tax for tax years 2027 and 2028. Asked about matching federal limits, the sponsor said that was possible but very costly, and pointed to broader rate reductions as another approach to tax relief. Another member asked how the exemption would be implemented. The sponsor described either adjusting the difference between federal and state taxable income or adding a deduction for taxpayers with qualifying tips or overtime. The sponsor said no implementation method had been selected and stressed the need to stay within a balanced budget. This was a first hearing only, with further consideration planned. ### HB 1035. Georgia Homeownership Protection Act of 2026; enact [HB 1035](https://georgiacommons.org/bills/2025-2026/hb1035) (2025-2026 Regular Session). From [0:51:12](https://vimeo.com/1167430828#t=3072s), turns 122 to 199. The sponsor said [HB 1035](https://georgiacommons.org/bills/2025-2026/hb1035) would prevent forced sales of owner-occupied homes to collect non-tax service charges, including HOA assessments and utility fees, while preserving debts, civil judgments, tax collection and mortgage foreclosure. Asked about liens, the sponsor confirmed that creditors could still be paid when a property sells. A member noted proposed limits on penalties and attorney fees. A South Fulton council member supported the bill, describing escalating HOA charges and displacement. A homeowner and retired veteran described pending litigation threatening the homeowner's residence and requested clearer HOA disclosures at closing. Another supporting witness said aggressive collections strip families of equity. A condominium resident requested an exception for shared building assessments, arguing that unpaid assessments shift essential costs to paying owners, while supporting protection against foreclosure for fines. A housing counselor and real estate broker supported protections, describing clients facing sharply escalating debts, and acknowledged possible condominium changes. No amendment was adopted. The chair said this was a first hearing and that a second hearing would be scheduled. ### HB 1336. Ad valorem tax; levy and collection of tax upon apportioned valuation of aircraft by local tax jurisdictions; provisions [HB 1336](https://georgiacommons.org/bills/2025-2026/hb1336) (2025-2026 Regular Session). From [1:13:27](https://vimeo.com/1167430828#t=4407s), turns 202 to 221. The sponsor said [HB 1336](https://georgiacommons.org/bills/2025-2026/hb1336) would require local jurisdictions with qualifying airports to dedicate at least 50% of aircraft property tax revenue to airport maintenance and operations. The sponsor said smaller airports lack major commercial revenue sources and that large commercial airports would be excluded. An ACCG witness opposed new restrictions on county spending. A pilot and airport advisory board member, speaking personally, supported the bill, saying community airports face rising infrastructure costs and inadequate revenue. The witness estimated that aircraft at Peachtree-DeKalb Airport generate about $9 million annually in property taxes and said none had returned to the airport during the witness's more than 20 years on the board. Asked about landing fees, the witness said aircraft under 9,000 pounds were currently exempt there. This was a first hearing only, with no vote. ### HB 1240. Local government; total ad valorem tax digest limitation upon creating new tax allocation districts shall also apply to the renewal of existing tax allocation districts; provide [HB 1240](https://georgiacommons.org/bills/2025-2026/hb1240) (2025-2026 Regular Session). From [1:23:12](https://vimeo.com/1167430828#t=4992s), turns 224 to 224. The chair announced that [HB 1240](https://georgiacommons.org/bills/2025-2026/hb1240) was being held. No presentation, discussion of its provisions or vote followed. ### 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 [HB 1228](https://georgiacommons.org/bills/2025-2026/hb1228) (2025-2026 Regular Session). From [1:26:09](https://vimeo.com/1167430828#t=5169s), turns 236 to 387. The sponsor said [HB 1228](https://georgiacommons.org/bills/2025-2026/hb1228) would assess qualifying large investors' single-family rental homes at 100% of market value rather than 40%, using added revenue to reduce local homestead taxes. The sponsor said institutional investors owned 83,000 Georgia homes and were outbidding families. A Georgia Association of Realtors witness supported the tax approach, saying it protected small landlords better than forced sales and that affiliate language would limit loopholes. Members questioned the 1,000-home threshold, indirect ownership, pension investments, rent increases and effects on existing investments. One member suggested applying a different property classification prospectively. The sponsor said the bill imposed taxes rather than an ownership cap and sought to protect small landlords. The Home Builders Association of Georgia opposed the proposal, arguing it would shift taxes to tenants without increasing supply. Executives from Quinn Residences and ARC Homes for Rent said the change would force sales and prevent construction, and argued rental investment supports housing supply. Another opposing witness raised constitutional objections. Members disputed industry claims that investors do not disadvantage individual buyers. This was a first hearing only. The chair deferred separate consideration of the accompanying constitutional amendment. ### HB 1102. Ad valorem tax; prohibit levy and sale of properties owned by certain senior citizens for failure to pay ad valorem taxes [HB 1102](https://georgiacommons.org/bills/2025-2026/hb1102) (2025-2026 Regular Session). From [2:07:36](https://vimeo.com/1167430828#t=7656s), turns 388 to 392. The sponsor said [HB 1102](https://georgiacommons.org/bills/2025-2026/hb1102) would protect homeowners age 60 and older from losing their homes when unable to pay property taxes. The sponsor explained that unpaid taxes would become a lien, collected when the home is sold or passes through the owner's estate. The sponsor cited calls from seniors on fixed incomes who feared losing their homes after further tax increases. There were no questions or votes. The chair identified this as a first hearing and said another hearing would be scheduled. ### HB 1209. Sales and use tax; purchases of tangible property and construction materials used for or in the construction and furnishing of certain buildings; provide exemption [HB 1209](https://georgiacommons.org/bills/2025-2026/hb1209) (2025-2026 Regular Session). From [2:11:34](https://vimeo.com/1167430828#t=7894s), turns 394 to 402. The sponsor described [HB 1209](https://georgiacommons.org/bills/2025-2026/hb1209) as providing a sales tax refund after qualifying construction is completed. The sponsor said the cost would be shared equally by the state and local governments. The chair and sponsor identified a combined state and local cap of $7 million. No substantive questions were asked. The subcommittee voted to send the substitute to the full committee with a recommendation to pass, with no opposition heard. ### HB 1261. Revenue and taxation; level 1 freeport exemptions for certain goods in inventory for electric utilities; provide [HB 1261](https://georgiacommons.org/bills/2025-2026/hb1261) (2025-2026 Regular Session). From [2:13:12](https://vimeo.com/1167430828#t=7992s), turns 402 to 441. The sponsor said [HB 1261](https://georgiacommons.org/bills/2025-2026/hb1261) would allow electric utilities' stored inventory to qualify for a locally approved property tax exemption. The sponsor distinguished equipment held in inventory from equipment installed in the operating system and said keeping spare materials supports storm restoration and reliable service. Asked about ownership, the sponsor confirmed the proposal concerned utility-owned inventory, not equipment owned by private companies building facilities. The sponsor said reduced costs would benefit ratepayers. A Georgia EMC witness supported the bill, saying transformer prices had risen 70% to 100% and delivery times had stretched from months to years, requiring utilities to keep more inventory. The witness said nonprofit cooperatives would pass savings to members. The chair asked the Department of Revenue to work with the sponsor on any assessment issues. This was a first hearing only, with no vote. ### HB 1111. Sales and use tax; new special purpose local option sales tax dedicated to certain healthcare purposes; provide [HB 1111](https://georgiacommons.org/bills/2025-2026/hb1111) (2025-2026 Regular Session). From [2:18:40](https://vimeo.com/1167430828#t=8320s), turns 442 to 496. The sponsor said [HB 1111](https://georgiacommons.org/bills/2025-2026/hb1111) would authorize a local sales tax to support operations and capital projects at public-authority and nonprofit hospitals, excluding for-profit hospitals. The sponsor described a local hospital's uncompensated-care costs and opposition to funding them solely through property taxes. The sponsor said county commissioners would have to initiate the proposal and voters would have to approve it, and that it would be outside the existing 2% limit discussed in the bill. A member raised concern about tax-supported purchases of land that could remain unused and off the tax rolls. The sponsor suggested addressing that through the county's authorizing resolution. Members asked whether existing local sales taxes could already fund hospitals. The sponsor and a Georgia Alliance of Community Hospitals witness distinguished this proposal's operating support from existing uses involving hospital debt or capital costs. The witness supported the bill as a way to sustain financially vulnerable hospitals. This was a first hearing only, with no vote. ### HB 275. Income tax; change certain definitions [HB 275](https://georgiacommons.org/bills/2025-2026/hb275) (2025-2026 Regular Session). From [2:28:51](https://vimeo.com/1167430828#t=8931s), turns 500 to 565. The presenter said the substitute for [HB 275](https://georgiacommons.org/bills/2025-2026/hb275) would make property assessment notices clearer by emphasizing property values, exemptions, notice dates and appeal deadlines. The presenter explained that the example showed exemption savings rather than suggesting a final tax bill before local budgets and tax rates are set. ACCG and Georgia Association of Assessing Officials representatives supported the proposal. Local chief appraisers said they had worked on the notice to address recurring taxpayer questions and reduce technical language. A member offered an amendment revising language about homestead-exemption eligibility as of January 1 and repealing the requirement for annual calculation and certification of an estimated rollback tax rate. The amendment passed by voice vote. The subcommittee waived the additional hearing requirement and approved the amended substitute for the full committee, with no opposition heard. ### HB 942. Ad valorem tax; public property owned by a political subdivision outside of its territorial limits; limit an exemption [HB 942](https://georgiacommons.org/bills/2025-2026/hb942) (2025-2026 Regular Session). From [2:40:03](https://vimeo.com/1167430828#t=9603s), turns 568 to 676. The sponsor said [HB 942](https://georgiacommons.org/bills/2025-2026/hb942) would limit the tax exemption for Atlanta-owned airport property in Clayton County, arguing the county lost taxable land through airport expansion while continuing to provide services. A Clayton County representative emphasized taxing private commercial uses and said the proposal was not aimed at runways or terminal buildings. Members clarified that the proposed exemption was 60% and asked about leased facilities and governmental versus private uses. An airport government-affairs representative opposed the change, saying property taxes would divert revenue from infrastructure, safety improvements and debt repayment. The witness warned of higher landing fees and terminal rents, possible passenger cost increases and reduced competitiveness. Asked whether a different exemption level would be acceptable, the witness offered no alternative. The sponsor reiterated that Clayton County needed revenue for airport-related service costs. Members discussed the balance between the airport's statewide role and the county's expenses. The subcommittee waived the additional hearing requirement and approved the bill by voice vote, with no opposition heard. ### HB 932. Revenue and taxation; tax credits for business enterprises; provide that certain military zones qualify for designation as less developed areas during a limited period of time [HB 932](https://georgiacommons.org/bills/2025-2026/hb932) (2025-2026 Regular Session). From [2:56:24](https://vimeo.com/1167430828#t=10584s), turns 677 to 677. The chair held [HB 932](https://georgiacommons.org/bills/2025-2026/hb932) until the next subcommittee hearing because the sponsor was unavailable. There was no presentation or vote. ### HB 565. Income tax; increase annual aggregate limit for tax credits available for qualified education donations [HB 565](https://georgiacommons.org/bills/2025-2026/hb565) (2025-2026 Regular Session). From [3:12:33](https://vimeo.com/1167430828#t=11553s), turns 681 to 691. The chair described [HB 565](https://georgiacommons.org/bills/2025-2026/hb565) as increasing the amount of credits available under the PEACH tax credit program for public schools. No specific increase was stated, and there was no substantive discussion. The full committee approved the bill by voice vote, with no opposition heard. > The transcript runs 164,322 characters. A reader that cannot take it at once can read it in 3 parts: part 1 https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means.md?start=0; part 2 https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means.md?start=59285; part 3 https://georgiacommons.org/meetings/2026-02-23/house-ways-and-means.md?start=118742. ## Transcript (692 turns) [0:25:43](https://vimeo.com/1167430828#t=1543s) The Income Tax S- subcommittee of the Ways and Means Committee, we're gonna get started. We're running a few minutes late, and I apologize. First bill we're gonna hear is gonna be presented by, uh, Representative Chas Cannon. [0:25:59](https://vimeo.com/1167430828#t=1559s) All right. [0:26:00](https://vimeo.com/1167430828#t=1560s) Need to sign in. Sure. [0:26:08](https://vimeo.com/1167430828#t=1568s) So. [0:26:08](https://vimeo.com/1167430828#t=1568s) Thank you, Mr. Chairman, members of the committee. I have House Bill 1148, LC number 443491S. And for the committee's benefit, I wanna briefly go back over some key components of the legislation. Do have a sub, primarily addresses two items. I'll cover that quickly. But, uh, 1148 seeks to reauthorize, reauthorize the Georgia Conservation Tax Credit for an additional five-year period. If not reauthorized, the credit will sunset this year on December 20, 31st, 2026. [0:26:40](https://vimeo.com/1167430828#t=1600s) The background is we have a very successful state, a very progressive state, and we have incentivized development and growth very well. And as a result, we develop about 50 to 60,000 acres per year across the state. And what House Bill 1148 proposes to incentivize is conserving a small portion of these acres through a state income tax credit. So the key points of the bill, it extends the credit for another five years through 2031. And, uh, if anything, that's the most important critical component is the reauthorization of the, of the credit. [0:27:12](https://vimeo.com/1167430828#t=1632s) Uh, it increases the tax credit amount from 25% to twen- to 50% of the fair market value of the land offered for permanent restriction. It caps the value of the tax credit at 500,000 for individuals, one million for partnerships. It establishes the aggregate amount of annual credits at 30 million. This was the original amount first established in 2006 when this particular credit was authorized. Uh, that is one change from the substitute. I'm open to the wisdom of the committee on that figure, but I do think it's a necessary figure. [0:27:42](https://vimeo.com/1167430828#t=1662s) And even at this number, it's barely 10% of the acreage we are seeing develop across the state on an annual basis. We also make a few tweaks to the application and review process. Some of those key points are we re- we remove the State Properties Commission from the review process to allow for a more streamlined application procedure. Applications will now be fully managed by the Department of Natural Resources. I'm gonna highlight the, uh, second change in the sub was that, was requested by DNR, and that was to add in the language in lines 115 through 120, where it creates accountability for appraisals by utilizing the Georgia Real Estate Commission for any investigations and disciplinary actions regarding appraisals. [0:28:24](https://vimeo.com/1167430828#t=1704s) I think that's also a key component we'll need to keep in, in the bill. Uh, and finally, these are permanent easements. The landowner gives up development rights on these acres forever. And once you sign the paperwork on these things, doing anything on, on the property becomes highly restrictive. And then after giving up the development rights, the landowner, not a government entity, the landowner is responsible for c- continuing to manage the property within the easements so that it meets the eligibility criteria within the legislation. So there is a financial incentive, of course, but there's also a financial cost, and that is one for continuing to manage the property and another for giving up the potential development revenue. [0:29:04](https://vimeo.com/1167430828#t=1744s) Um, that's just a quick summary of the highlights of the bill. Mr. Chairman, I do have some experts here to answer any questions you com- the committee might have. Um, DNR's, DNR's also here to answer any questions you might have, and I turn it over to the wisdom of the committee. Uh, committee, uh, any, any questions from the committee? [0:29:25](https://vimeo.com/1167430828#t=1765s) Chairman Prince. [0:29:26](https://vimeo.com/1167430828#t=1766s) Uh, Chairman Prince. [0:29:29](https://vimeo.com/1167430828#t=1769s) Thank you, Mr. Chairman. Um, thank you, Mr. Chairman. Uh, Representative Cannon, uh, is this, uh, for the, for the homeowner and, uh, or excuse me, the landowner, excuse me, uh, is this an opt-in or opt-out type thing? If they decide they may wanna develop further down, they can sort of opt out of it, or are they in all the way? [0:29:47](https://vimeo.com/1167430828#t=1787s) If you move into the te- and maybe Shane can help me here, but if you opt in, you sign the paperwork, you're, you're locked in for the- [0:29:53](https://vimeo.com/1167430828#t=1793s) No time [0:29:54](https://vimeo.com/1167430828#t=1794s) ... permanent. [0:29:54](https://vimeo.com/1167430828#t=1794s) Right. [0:29:54](https://vimeo.com/1167430828#t=1794s) It's permanent, you know, per- in per- perpetuity. Um, so it's very restrictive on what you can do. [0:30:01](https://vimeo.com/1167430828#t=1801s) Thank you. [0:30:01](https://vimeo.com/1167430828#t=1801s) Yes, sir. [0:30:03](https://vimeo.com/1167430828#t=1803s) But in return for that, they're getting, uh, they're getting a tax deduction. [0:30:07](https://vimeo.com/1167430828#t=1807s) That's correct. [0:30:08](https://vimeo.com/1167430828#t=1808s) They're- [0:30:08](https://vimeo.com/1167430828#t=1808s) That's correct [0:30:08](https://vimeo.com/1167430828#t=1808s) ... moni- they're monetizing that, uh, loss. [0:30:11](https://vimeo.com/1167430828#t=1811s) That's correct. [0:30:12](https://vimeo.com/1167430828#t=1812s) Uh, Representative Buckner. [0:30:14](https://vimeo.com/1167430828#t=1814s) I had a question about the, um, state properties requirement being removed- [0:30:19](https://vimeo.com/1167430828#t=1819s) Yes [0:30:19](https://vimeo.com/1167430828#t=1819s) ... and, and the opportunity for, um, I guess, private appraisers. Can you just go over the way that's gonna work now with the change for me, so I can explain it to the board? [0:30:32](https://vimeo.com/1167430828#t=1832s) As I understand it, but perhaps DNR could answer it better, but as I understand it, there's an appraisal done by, uh, a, a third party or through DNR. And if there's any questions about the value of that appraisal, there's an independent third party that DNR can send that to for investigation. And if they, uh, find there's some kind of issue with the appraisal, they can pursue some kind of punishment or disciplinary problem through that process. [0:30:59](https://vimeo.com/1167430828#t=1859s) Okay. Thank you. [0:31:02](https://vimeo.com/1167430828#t=1862s) Yes, ma'am. [0:31:06](https://vimeo.com/1167430828#t=1866s) Any, uh, further questions from the committee? Hearing none, this is the second hearing, and, um, what's the will of the committee? [0:31:15](https://vimeo.com/1167430828#t=1875s) Move. [0:31:15](https://vimeo.com/1167430828#t=1875s) Got a motion and a second. Any further discussion? Amendments? Hearing none, all in favor signify by saying aye. [0:31:22](https://vimeo.com/1167430828#t=1882s) Aye. [0:31:22](https://vimeo.com/1167430828#t=1882s) Opposed same sign. Motion carries unanimously. Uh, thank you. Uh, thank you for the presentation. [0:31:28](https://vimeo.com/1167430828#t=1888s) Thank you, Mr. Chairman, mem- members of the committee. Thank y'all. [0:31:30](https://vimeo.com/1167430828#t=1890s) Thank you. All right, the next bill we're gonna hear is House Bill 1000. Uh, lady gavel. [0:31:47](https://vimeo.com/1167430828#t=1907s) Thank you, Chairman, members of the committee. Uh, it's good to be with you again today on, uh, House Bill 1000. Um, again, uh, just to reiterate, this is the repeat of three pieces of legislation that we have approved in the past: House Bill 1302, uh, from 2022, House Bill 162 from 2023, and House Bill 112 from '20- 2- 2025. The value of this tax refund is approximately $1.17 billion. [0:32:18](https://vimeo.com/1167430828#t=1938s) The funds will be included in the amended, and again, it will be a benefit of about 250, well, $250 for individual filers, $375 for heads of households, and $500 for those married and filing a joint return. As we all deal with the impacts, uh, of the rising cost of everything, this is the latest way that the governor is working to support hardworking Georgians. And so, um, I wanna thank you, Mr. Chairman. We've done a lot of things over the years to, um, uh, address that, uh, issue in our state and to, uh, provide tax relief, including, of course, when you matched the corporate and individual rates in the legislation that you passed a few years ago. [0:33:04](https://vimeo.com/1167430828#t=1984s) So, um, that, in essence, is the bill, and again, we, we have done this on several occasions prior. I'm happy to answer any questions that the committee might have. [0:33:13](https://vimeo.com/1167430828#t=1993s) Well, is it not true, we've definitely done it, this exact methodology, same amounts twice before. Isn't that correct? [0:33:19](https://vimeo.com/1167430828#t=1999s) That's correct. [0:33:21](https://vimeo.com/1167430828#t=2001s) Any questions from members of the committee? [0:33:24](https://vimeo.com/1167430828#t=2004s) Move to pass. [0:33:24](https://vimeo.com/1167430828#t=2004s) Got a motion move to pass. Is there a second? [0:33:29](https://vimeo.com/1167430828#t=2009s) Second. [0:33:29](https://vimeo.com/1167430828#t=2009s) Got a second from, uh, Chairman, uh, Smith. Uh, any further discussion, amendments? Hearing none, all in favor say, signify by saying I. [0:33:39](https://vimeo.com/1167430828#t=2019s) I. [0:33:39](https://vimeo.com/1167430828#t=2019s) Opposed same sign. Motion carries unanimously. [0:33:42](https://vimeo.com/1167430828#t=2022s) Thank you. [0:33:45](https://vimeo.com/1167430828#t=2025s) Thank you. Next we will hear... All right. Here it is right here. House Bill 1135. Um, Chairman Hilton. Or no. [0:33:57](https://vimeo.com/1167430828#t=2037s) He's 11. [0:33:58](https://vimeo.com/1167430828#t=2038s) Yeah, there we go. [0:33:59](https://vimeo.com/1167430828#t=2039s) Number 11. [0:34:00](https://vimeo.com/1167430828#t=2040s) All right. [0:34:00](https://vimeo.com/1167430828#t=2040s) Yeah. [0:34:00](https://vimeo.com/1167430828#t=2040s) Perfect. [0:34:01](https://vimeo.com/1167430828#t=2041s) Thank you, Mr. Chairman, members of the committee. This is the second hearing on House Bill 1135. This is LC49-2535. House Bill 1135 seeks to codify the federal School Choice Tax Credit that was recently passed under federal legislation back in July. This provides Georgia taxpayers with a $1,700, uh, federal tax credit, uh, for do- contributions to, uh, education, both private and public. [0:34:33](https://vimeo.com/1167430828#t=2073s) Um, this, the me- the heart of the bill is lines 45 through roughly 52, which says, "By January 1st of each year, we shall communicate to the Secretary of the Treasury that Georgia will be opting into the program." The crux, the, the rationale is really twofold. Number one, a lot of the families that get onto this program and then rely on it, you know, the last thing we wanna do is to pull the rug out from a child in a family who plans for education years out in advance. And so the annual, uh, nature of this program, we are, uh, making that a- automatic. [0:35:07](https://vimeo.com/1167430828#t=2107s) And then number two, and I think most importantly, a, a Georgia taxpayer, we want Georgia dollars staying in Georgia. A Georgia taxpayer under this program can still contribute, whether Georgia opts in or not, they can still contribute, get the federal tax credit. The difference is those monies, if Georgia's not opt into the program, goes to, to other states. And so I think it'd be foolhardy of us to, to do that. And so, uh, this opts, opts us into the program on an annual basis, and I'll yield for any questions. [0:35:34](https://vimeo.com/1167430828#t=2134s) Does the author have any questions? We'll then recognize Representative Buckner. [0:35:39](https://vimeo.com/1167430828#t=2139s) Um, I've got a couple of questions. One is, our voucher program that we have in the State of Georgia now with state tax dollars is for, um, s- special needs or low-income families. Are, are there any restrictions for the use of these vouchers? Can the wealthy get them just as well as low income or special needs? [0:35:56](https://vimeo.com/1167430828#t=2156s) Well, Georgia's program also includes, um, uh, those in failing schools as well. Yes, there is a limit, uh, as to those who can receive it. It's, uh, I believe it's 300% of, uh, median income is where the cap is. [0:36:09](https://vimeo.com/1167430828#t=2169s) Okay. And then, um, will these vouchers have to, um, follow any of the same accountability regulations or rules that we have in Georgia for ours? Will they match or will they be different as far as accountability and... [0:36:26](https://vimeo.com/1167430828#t=2186s) Yeah, it's, uh, again, a federal program. I believe a lot of those rules and regs are being written right now, and will, will mirror a lot of the same accountability metrics. Um, the good news here in Georgia is that they're gonna use kind of the backbone that we already have through the SGOs, uh, which we already have in place and have pretty significant, uh, guardrails around them already. [0:36:45](https://vimeo.com/1167430828#t=2205s) Okay. And my last question is, will this just go to private schools or can public schools receive them as well? [0:36:50](https://vimeo.com/1167430828#t=2210s) Public schools can receive these as, as well. [0:36:52](https://vimeo.com/1167430828#t=2212s) Thank you. [0:36:55](https://vimeo.com/1167430828#t=2215s) Any more questions from members of the committee? Hearing none, what's the will of the committee? [0:37:01](https://vimeo.com/1167430828#t=2221s) Move to pass. [0:37:02](https://vimeo.com/1167430828#t=2222s) The motion. Is there a second? [0:37:05](https://vimeo.com/1167430828#t=2225s) Second. [0:37:06](https://vimeo.com/1167430828#t=2226s) A second from Dr. Newton. Any further discussion or amendments? Hearing none, all in favor signify by saying an I. [0:37:12](https://vimeo.com/1167430828#t=2232s) I. [0:37:13](https://vimeo.com/1167430828#t=2233s) Opposed same sign. [0:37:15](https://vimeo.com/1167430828#t=2235s) No. [0:37:15](https://vimeo.com/1167430828#t=2235s) We got one no. Uh, and, uh, so motion carries, and congratulations to the author, and I believe you have another measure you'd like to present. [0:37:25](https://vimeo.com/1167430828#t=2245s) Thank you, Mr. Chairman. Uh, presenting House Bill 1110, that's reading from LC59-0361S. This is the second hearing on the Georgia Small Business Resiliency Act. This act was presented, uh, last year in committee by, uh, Doc Newton behind me here, and passed out of committee. We've since added, uh, some additional measures and protections to it. Um, so what this seeks to address is the number one issue that we hear from small businesses, is that I've got a growing br- business, but it's hard to recruit and retain good employees. [0:37:58](https://vimeo.com/1167430828#t=2278s) And so, uh, this act helps, uh, businesses, small businesses do just that. So this would apply to small businesses with 50 or fewer employees who offer a, a robust, uh, package of, of benefits, but, uh, need that just extra leg up to, to offer healthcare to their employees. So kinda kills two birds with one stone. Makes sure that more Georgians have access to healthcare, while at the same time, uh, helping our small businesses, um, uh, get their employees on, on healthcare benefits. And so it'd offer, uh, to those businesses who provide $200, uh, per month to an individual HRA program, uh, those... [0:38:37](https://vimeo.com/1167430828#t=2317s) So you're, you're spending roughly $1,200. I- in the first three years of the program, you'd get a tax credit of 600, and then we gradually wean you off the program in years four and five, as that reduces to four and then 200 in, in year five. The program, uh, sunsets, uh, at the end of 2030, and is capped at 20- uh, 10 million, uh, in gross amount. [0:39:00](https://vimeo.com/1167430828#t=2340s) Questions from the committee? [0:39:05](https://vimeo.com/1167430828#t=2345s) I've got, uh... Hearing none, what's the will of the committee? [0:39:08](https://vimeo.com/1167430828#t=2348s) Motion. [0:39:08](https://vimeo.com/1167430828#t=2348s) Got a motion from Dr. Newton. [0:39:11](https://vimeo.com/1167430828#t=2351s) Second. [0:39:11](https://vimeo.com/1167430828#t=2351s) Got a second from Chairman Prince. Any further discussion or amendments being offered? Hearing none, what's the w- um, all in favor, signify by saying, "I." [0:39:20](https://vimeo.com/1167430828#t=2360s) I. [0:39:20](https://vimeo.com/1167430828#t=2360s) Opposed, same sign. Uh, car- carries unanimously. Congratul- [0:39:24](https://vimeo.com/1167430828#t=2364s) Thank you, Mr. Chair [0:39:25](https://vimeo.com/1167430828#t=2365s) ... congratulations. [0:39:25](https://vimeo.com/1167430828#t=2365s) Thank you. [0:39:26](https://vimeo.com/1167430828#t=2366s) All right. Uh, next we're gonna have a first hearing for, uh, Chairman Carson, uh, House Bill 1370. [0:39:40](https://vimeo.com/1167430828#t=2380s) Thank you, Mr. Chairman. This is, uh, House Bill 1370. Um, kind of, uh, parlays on, uh, what we discussed on the floor last week, but as, as many of you know, there was, uh, the big beautiful bill, as, uh, HR 1 passed in July and signed by the president, uh, allows for certain thresholds of no tax on tips and a thir- certain threshold as to no tax on overtime. Uh, what we've been advised to do by, uh, per legal, uh, legislative counsel is to introduce separate legislation on this. [0:40:14](https://vimeo.com/1167430828#t=2414s) And that's all this bill does right now, is exempt effectively $2,500 of, uh, overtime and, uh, f- uh, $5,000 of, uh, tip or tip income, uh, for, uh, tax years '27 and '28. Uh, this is a bill in, uh, I would say very much in, in draft and, and in progress. It's actually being changed right now. And, um, this more or less, uh, starts the conversation, and I'm happy to answer any questions. [0:40:46](https://vimeo.com/1167430828#t=2446s) Do we have any questions? Any questions in th- this first hearing? Do you have a question, Dr. Newton? Recognize, um, Chair Newton. [0:40:58](https://vimeo.com/1167430828#t=2458s) Yes, sir. Thank you, Chairman. Um, uh, and thank you for the bill. The, um, um, just curious how, um, and you say it's in process right now maybe, uh, in flux. It, it, it is, is there any way we can be identical to the federal limits, or is that too costly? Just, just for ease of, um, transferring. You know, a lot, a lot of these are t- [0:41:19](https://vimeo.com/1167430828#t=2479s) Is there a way to be equal to the federal balance? Yes. [0:41:21](https://vimeo.com/1167430828#t=2481s) Yes. [0:41:21](https://vimeo.com/1167430828#t=2481s) Is it costly? Very. [0:41:23](https://vimeo.com/1167430828#t=2483s) So that's- [0:41:23](https://vimeo.com/1167430828#t=2483s) And so- [0:41:24](https://vimeo.com/1167430828#t=2484s) ... it's a lot higher than these numbers. [0:41:25](https://vimeo.com/1167430828#t=2485s) Uh, correct. And I think what the Chairman Blackmon has said on the floor is what we're looking to do is provide tax relief for everyone in regard to lower rates- [0:41:35](https://vimeo.com/1167430828#t=2495s) Okay [0:41:35](https://vimeo.com/1167430828#t=2495s) ... as opposed to, you know, not tax this income or that or what have you. [0:41:41](https://vimeo.com/1167430828#t=2501s) Thank you. [0:41:43](https://vimeo.com/1167430828#t=2503s) Any further questions? [0:41:45](https://vimeo.com/1167430828#t=2505s) Thank you, Mr. Chairman. One of the other things I heard besides the money was that the, how to implement the program or the process of this is, um, I'm having trouble seeing how that's getting addressed. It'll just be left up to the department? [0:42:00](https://vimeo.com/1167430828#t=2520s) No. Well, there's, there's two a- avenues of thought, um, Representative Buckner. One is to say we're gonna... Okay, so you have a, a, a federal 1040 and a Georgia 500, and there would be reconciling differences between the adjusted gross income from one form to the other, right? Uh, this would be proposed to be one of those reconciling differences, such that we don't tax this, uh, revenue, or we don't add back this revenue for Georgia. It's gonna be exempted for federal. Let's exempt it for Georgia. That would be one of the reconciling differences. [0:42:33](https://vimeo.com/1167430828#t=2553s) The other way of, uh, possibly doing this is to raise the standard deduction by an appropriate amount to say a normal Georgia taxpayer gets X amount of standard deduction, but if they have tip income, they get an extra X thousand, whatever that is, or overtime income. [0:42:51](https://vimeo.com/1167430828#t=2571s) But we don't know which of those we'll do at this point? [0:42:53](https://vimeo.com/1167430828#t=2573s) We, we don't, and it's because we're, we're doing our best to be, uh, fiscally responsible. I wouldn't say liberal or conservative either way. I'm just talking about w- within the confines of, of what c- we can afford to do on a, on a requirement for a balanced budget. [0:43:08](https://vimeo.com/1167430828#t=2588s) Thank you. [0:43:10](https://vimeo.com/1167430828#t=2590s) Any further questions? Again, this is a first hearing only. Hearing no further questions, then, uh, we'll take this up a- again at the next meeting. And, uh, the Income Tax Subcommittee of the Ways and Means Committee, having completed our agenda today, stands adjourned. Thank you. [0:43:27](https://vimeo.com/1167430828#t=2607s) Thank you. [0:46:29](https://vimeo.com/1167430828#t=2789s) We're gonna start in about one minute, ladies and gentlemen, with the Ad Valorem Subcommittee. [0:46:37](https://vimeo.com/1167430828#t=2797s) So do you want me to just give it to everybody? [0:46:40](https://vimeo.com/1167430828#t=2800s) Well, don't get the... [0:50:59](https://vimeo.com/1167430828#t=3059s) We know. We'll get there. Okay, ladies and gentlemen, we're gonna call the Ad Valorem Committee to order. Uh- [0:51:07](https://vimeo.com/1167430828#t=3067s) If we could, we'd like to hear from, uh, Representative Scott, District 76, on House Bill 1035. [0:51:37](https://vimeo.com/1167430828#t=3097s) Okay, Representative. [0:51:38](https://vimeo.com/1167430828#t=3098s) Good a- [0:51:38](https://vimeo.com/1167430828#t=3098s) You've got the floor. Yes, ma'am. [0:51:39](https://vimeo.com/1167430828#t=3099s) Okay. Good afternoon. Thank you, uh, Mr. Speakers and members of the committee. I rise today to present House Bill 1035, uh, let me get that. Oh, that should have heard. 1035, the Georgia Homeownership Protection Act of 2026. This bill addresses a fundamental question: Should a Georgia family lose their primary residence over a water bill, an HOA assessment, or a service fee? [0:52:15](https://vimeo.com/1167430828#t=3135s) Under current law, unpaid non-tax service charges, including HOA assessments, condo fees, water bills, storm water fees, and other similar obligations, can ultimately be bundled into enforcement mechanisms that lead to foreclosure or tax sale exposure. House Bill 1035 draws a clear and principle line. [0:52:46](https://vimeo.com/1167430828#t=3166s) If it is not a tax and it is not a mortgage, it should not cost a family their home. Let me be clear about what this bill does not do. It does not eliminate debt. It does not interfere with ad valorem tax collection. It does not impair mortgage foreclosure rights. It does not protect investment properties. [0:53:18](https://vimeo.com/1167430828#t=3198s) What it does is simple. It says that a non-tax service charge must be collected through civil judgment, not through forced sale of an owner-occupied dwelling. Foreclosure is the most extreme s- civil remedy in our legal system. It strips titles, it interferes, it transfers equity, and it permanently destabilize families. [0:53:48](https://vimeo.com/1167430828#t=3228s) That remedy should be reserved for secured obligations, taxes, and mortgages, not service fees. Members, when a homeowner falls behind on a $1,200 assessment, that debt can escalate quickly. Late fees are added, interests accrued, attorney fees are imposed. A small obligation become thousands of dollars, and in some cases, that process ends with a f- forced sale of a home worth hundreds of thousands of dollars. [0:54:28](https://vimeo.com/1167430828#t=3268s) That is not proportional, that is not balance, and that is not what most Georgians believe should happen to their neighbor. This bill protects the sanctity of home ownership. It protects seniors living on fixed incomes. It protects veterans. It protects first-generation homeowners. It protects wrong- working families experiencing temporary hardship, and at the same time, it preserves enforcement. [0:55:05](https://vimeo.com/1167430828#t=3305s) HOAs may still pursue civil judgements. Utilities may still collect unpaid bills. Taxes remain fully enforceable. Mortgage lenders remain fully protected. Debt remains owed, but foreclosure is removed as a tool for unsecured service charges on owner-occupied homes. This bill strengthens property rights. [0:55:35](https://vimeo.com/1167430828#t=3335s) It reinforces proportionate enforcement. It stabilize neighborhoods, and it prevents avoidable displacement. Members, we often speak about protecting home ownership in Georgia. Today, we have the opportunity to do exactly that. HB 35 is not anti-HOA. It is not anti-local government. It is pro-home. [0:56:07](https://vimeo.com/1167430828#t=3367s) It is pro-stability. It is pro-property rights. If we believe that a home should not be lost over a service fee, if we believe that foreclosure should be reserved for taxes and secured debt, then this bill deserves your support. I respectfully ask of your favorable consideration. Thank you. [0:56:34](https://vimeo.com/1167430828#t=3394s) Uh, thank you, Representative Scott. Now, as you know, this is first hearing only, and we've got a couple questions on the committee, and then we've got two or three people in the audience. So, uh, first off, uh, Chairman Newton. [0:56:46](https://vimeo.com/1167430828#t=3406s) Thank you, Mr. Chairman, and thank you, Representative, for this bill. I think, uh, looking after the, the, the, the, f- the, the fear of foreclosure, uh, is something that, that this committee and I think this legislature does need to do and, and to give, give attention to. I noticed you did say, uh, the home- homeowner fees, homeowner association fees, there's nothing in this that prevents a lien that does not result in foreclosure, but if the property's sold, uh- the, the association can be reimbursed. [0:57:16](https://vimeo.com/1167430828#t=3436s) Is, is that correct? [0:57:18](https://vimeo.com/1167430828#t=3438s) That's right. Um, that's just like when a lien is placed on thing, when you, if you sell your property- [0:57:23](https://vimeo.com/1167430828#t=3443s) A mechanic's lien or a mechanic's lien or something like that. [0:57:27](https://vimeo.com/1167430828#t=3447s) Yes. Yes. [0:57:27](https://vimeo.com/1167430828#t=3447s) Okay. And I do see on line 66 through 72, you put some reasonable, um, guardrails, I guess, around that are in there to keep that from being an ex- You know, it says reasonable attorney fees, 10% a year, uh, 10% penalties and all. I think those are reasonable, um, efforts to, to accomplish that without the exorbitant fees that can sometimes be added, uh, by, uh, associations. So I appreciate the bill. Thank you for that. [0:57:55](https://vimeo.com/1167430828#t=3475s) All right. Thank you, Chairman Newton. Anybody else on the committee at the moment? We have three people in the audience that wanna speak, so we'll go, go to them. First is ... [0:58:05](https://vimeo.com/1167430828#t=3485s) Patricia Wise. [0:58:07](https://vimeo.com/1167430828#t=3487s) Is this, uh ... I can't read my writing, but I can't read anybody else's either, so- Patricia Wise. Ms. Patricia Wise. Yes, ma'am. [0:58:19](https://vimeo.com/1167430828#t=3499s) Oh, oh, you, you wanna go. Oh. Which one is it? Yes, ma'am. Come on up to the podium. You didn't need to go first. [0:58:26](https://vimeo.com/1167430828#t=3506s) Yeah, I think Linda was going. [0:58:27](https://vimeo.com/1167430828#t=3507s) Okay. [0:58:28](https://vimeo.com/1167430828#t=3508s) Linda Pritchett. I'm sorry. Ms. Pritchett. [0:58:30](https://vimeo.com/1167430828#t=3510s) Yes, ma'am. Just state your ... Y- you can stand right there if you'd like. [0:58:33](https://vimeo.com/1167430828#t=3513s) Thank you. [0:58:33](https://vimeo.com/1167430828#t=3513s) And just state your name and who you're with. And I'm gonna try to ask y'all, if you could, go about a minute, minute and a half, be what we ... 'Cause we have a long list. If y'all gotta- [0:58:44](https://vimeo.com/1167430828#t=3524s) I'ma talk real quick. [0:58:46](https://vimeo.com/1167430828#t=3526s) Okay. Thank you. [0:58:46](https://vimeo.com/1167430828#t=3526s) So good afternoon. Thank you for having me. I am Councilwoman Linda Pritchett from the great city of South Fulton. And I'm here, uh, to thank Sandra, uh, Representative Sandra Scott for introducing this. Um, in my city, we're already dealing with the bad actors of HOAs being abusive and predatory in their tax- tactics against homeowners. In the city of South Fulton, we're s- uh, uniquely situated where we have 70% homeownership, where the national average is 65 to 66%. [0:59:17](https://vimeo.com/1167430828#t=3557s) Um, HOAs have people, regular neighbors that serve on boards. They're not trained. They run communities. Sometimes, like many governments, uh, create a lot of, uh, a lot of red tape for people without due process. Also, uh, residents are having their dues and fines and fees used against them by HOAs that navigate through a sophisticated process like arbitration, mediation, and complicated litigation for people who have not paid their dues, have not cut their grass, have not ... [0:59:54](https://vimeo.com/1167430828#t=3594s) have broken mailboxes, have not power-washed their houses. Um, these are fees and dues that accumulate and become very exorbitant. Foreclosures create blight. They displace homeowners, and they create an opportunity for squatters. This is something we've already dealt with legislatively. Um, I can't think of anything that any homeowner can do that will create a fine or an amount that can match the value of their home. Um, allowing HOAs to continue to take advantage of people by trying to put liens, uh, foreclose people's home, this is not good business for our residents that we all represent, but this is not good business for our cities as well. [1:00:41](https://vimeo.com/1167430828#t=3641s) So I am in support of Representative Scott's bill and all the efforts that this legislature is taking this year focusing on HOAs and making sure that homeowners are not losing their quality of life and their peacemen enjoyment of their homes being bogged down by these things that have not been regulated. Thank you so much. [1:01:04](https://vimeo.com/1167430828#t=3664s) Yes, ma'am. Thank you. Anybody have a question? Okay. Thank you, ma'am. Thank you very much. Uh, next is ... Yes, ma'am. State your name, who you're with. [1:01:13](https://vimeo.com/1167430828#t=3673s) Hi. Uh, my name is Patricia Wise, and I'm by myself. I'm a homeowner in, uh, District se- seven, we're L- uh, Linda's, Linda Pritchett's district. I'm also a United States Army veteran, retired, and I am over the age of 62, so I think I fall right into that basket. I wanna thank everyone and anyone who is willing to support any measure that is, um, willing to protect homeowners and their rights. We're not talking about the necessary needs to pressure wash and do what you're supposed to do. We're talking about the ne- nefarious activities that these HOA boards, management companies, and attorneys are doing to homeowners in an effort to take, uh, take their homes away from them, i.e., home equity theft, fraud, is something that you need to look into because that's exactly what they're trying to do. [1:02:01](https://vimeo.com/1167430828#t=3721s) I can't speak on my litigation in terms of what I'm, I'm going through, but I've been in my home for 17 years. 17 years. And I have planted flowers for 17 years. And now I am going to ... If it goes awry, I will lose my home, and I will be homeless. It's not a question of, of homeowners doing what they're supposed to. It's the bogus, the abuse, and the nefarious activities of these HOA boards. Um, so I'm for this bill. We need this bill. We need all the protections that we can because she is correct. [1:02:34](https://vimeo.com/1167430828#t=3754s) Um, they are going after, um, veterans, um, fixed income, young, young people trying to buy their homes that are not aware of how the HOA dynamics work. And I also believe, if I can th- slip this in there, there should be some legislation that should be passed that when you go to closing, that there be a HOA packet that each buyer gets so that they can ensure that they're going into an HO- way, HOA community that is free of li- legalitus, li- uh, I mean, um, numerous lawsuits and, um, activities that they may wanna stay away from. [1:03:09](https://vimeo.com/1167430828#t=3789s) All right. [1:03:09](https://vimeo.com/1167430828#t=3789s) Uh, thank you very much. [1:03:10](https://vimeo.com/1167430828#t=3790s) Yes, ma'am. Thank you. Uh, Chairman Williams. [1:03:14](https://vimeo.com/1167430828#t=3794s) Uh, th- thank you to the lady that just presented. First of all, thank you for your service to our country right here. [1:03:19](https://vimeo.com/1167430828#t=3799s) Oh, sorry. Yeah. [1:03:20](https://vimeo.com/1167430828#t=3800s) Yeah, thank you for your service to our country, but I love your idea about a better, uh, irrespective of h- where we go with this particular bill, uh, I love the idea about a HOA disclosure package, a very clear disclosure to make p- sure that people understand the contractual terms that they're obligating themselves to at the closing table. [1:03:38](https://vimeo.com/1167430828#t=3818s) Thank you. [1:03:38](https://vimeo.com/1167430828#t=3818s) Thank you for, thank you for spending time in this, uh, legislative process today. Thanks for coming to your state capital. [1:03:43](https://vimeo.com/1167430828#t=3823s) Thank you. [1:03:44](https://vimeo.com/1167430828#t=3824s) Thank you, ma'am. Thank you, Mr. Chairman. Okay, we have Ms. Amy McCoy. [1:03:53](https://vimeo.com/1167430828#t=3833s) Thank you so much, um, Mr. Chair and the members of this committee. My name is Amy McCoy, and I'm here today to strongly urge your support for House Bill 1035. This bill is about protecting Georgia families and preserving generational wealth. To, to understand why this bill is necessary, we have to look at how neighborhood governance has changed. Academic research tracks a clear shift from exclusion to extraction. Historically, tools like restrictive covenants were used f- for exclusion to dictate who was allowed to live in a neighborhood, and today, that system has evolved into extraction. [1:04:32](https://vimeo.com/1167430828#t=3872s) Mechanisms like aggressive HOA fines, arbitrary assessments, and utility fees are being weaponized to extract equity from vulnerable homeowners. When a family can lose their home, their primary asset, over a missed trash fee, or a dispute about a mailbox, or a basketball hoop, we have moved from community management to wealth extraction. Stripping a family of their owner-occupied home over a non-tax service charge is a disproportionate predatory pr- penalty. [1:05:06](https://vimeo.com/1167430828#t=3906s) It destabilizes neighborhoods and transfers hard-earned equity away from the Georgia families, often di- directly into the hands of corporate investors. HB 1035 does not mean to, uh, the, does not mean that debts shouldn't be paid. It simply reclassifies HOAs as a utility, uh, and utility assessments as unsecured debt. It ensures that the, the ultimate threat of forced foreclosure is reserved for primary mortgages and taxes, not used as a heavy-handed collection tactic or neighborhood association. [1:05:42](https://vimeo.com/1167430828#t=3942s) So I urge you, urge you, please move yes to move this bill forward, um, and so we can stop the extraction from Georgia homeowners. Um, I have gone in and helped many homeowners, uh, previously, uh, have to fight litigation because Georgia treats this as a civil issue when it's a structural issue, and right now HOAs are able to operate as a shadow government, and so there has to be guardrails. We should not be allowing them to be able to foreclose on homes just because, you know, like I said, a mailbox fee or a basketball goal. [1:06:20](https://vimeo.com/1167430828#t=3980s) So... [1:06:21](https://vimeo.com/1167430828#t=3981s) All right. Thank you, ma'am. Any questions from members of the committee? Thank you very much. Appreciate it. [1:06:26](https://vimeo.com/1167430828#t=3986s) Thank you very much. [1:06:26](https://vimeo.com/1167430828#t=3986s) Yes, ma'am. Uh, one more. Ms. Carolyn Simmons. [1:06:33](https://vimeo.com/1167430828#t=3993s) We got another sheet down there. [1:06:37](https://vimeo.com/1167430828#t=3997s) Good afternoon. I live at Waldrop Park Condominium Association in DeKalb County. I support the bill, but I'm asking for an amendment because condominiums are structured a little bit differently. We share financial responsibility for our buildings. In my community, there are 228 units. There are 19 buildings, 12 units per building, four units per floor over the course of three floors. [1:07:03](https://vimeo.com/1167430828#t=4023s) And then you have the floor. [1:07:05](https://vimeo.com/1167430828#t=4025s) If 28 units in my community pay their assessments and the other 200 do not, how do we recoup that money? I use myself as an example all the time. My unit is held in a trust. The trust only owns my unit. There is no money to go after. So if my community cannot foreclose on my unit, I get to eat for free while those other 28 units are paying, and it's not fair. I completely understand. [1:07:36](https://vimeo.com/1167430828#t=4056s) I don't want anyone to lose their home, but I don't want to lose mine either because other people aren't doing what they are supposed to be doing. So the only thing that I am asking is that there be an amendment to it to inc- to carve out a space for our condominium units. I also would ask that within that bill, if there is a space carved out for condominiums, that we actually state what assessments actually are. There are annual assessments, which are usually paid over the course month to month. [1:08:07](https://vimeo.com/1167430828#t=4087s) There are special assessments for things that are required to be fixed within that community that are not in the annual budget. You know, little things that happen out of the ordinary that we put our reserves aside for. And then there are specific assessments. Within those specific assessments are fines, attorney's fees, late fees, interest. No one should ever lose their home for a fine. There's a bill for that also, I believe, on the Senate side. There's another bill on the Senate side that I am also fighting for these same inclusions on. [1:08:40](https://vimeo.com/1167430828#t=4120s) Condominiums are a little bit different, and I don't want to lose my home because someone else isn't doing the right thing in theirs. Thank you very much. [1:08:49](https://vimeo.com/1167430828#t=4129s) Yes, ma'am. Thank you. Any questions, anybody on committee? We've got one more speaker. Uh, is it Ms. Archie? [1:08:59](https://vimeo.com/1167430828#t=4139s) Yes. [1:08:59](https://vimeo.com/1167430828#t=4139s) Yes, ma'am. [1:09:01](https://vimeo.com/1167430828#t=4141s) Good morning. I want to thank, uh, Representative Scott for writing this bill. My name is Archie Emerson. Again, I serve as a HUD housing counselor. I'm also a real estate broker. I serve as the VA rep, uh, real estate broker president, and I currently serve as the women's counselor of the National Association of Real Estate Brokers. As a counselor, I've seen all of this. I've seen people lose their properties. I've seen people call to figure out how can they get the assessment. This bill is much needed. [1:09:32](https://vimeo.com/1167430828#t=4172s) Uh, we cannot, um, sustain the amount of calls that comes through. Some other agencies don't even answer the calls anymore because it's unheard of. S- most of these are veterans, elderly that don't understand what's going on. They just don't understand the language, they don't understand the fact that if they didn't, during COVID for some reason, some elderly didn't answer their phone, they didn't check the mail. And guess what? By the time they did, they had a $15,000 debt, was one item. [1:10:02](https://vimeo.com/1167430828#t=4202s) It was a can on the side of the building that he had forgot it was there. It had sit there two year. The bill had gone up numerous. So how can we fix something to make sure homeownership ha- everyone has the right to have a homeownership. But when you have an association telling you and dictating how you can use your home, and then take the time to foreclose on it, I feel it's unfair to our community. So at one time, I only supposed to service the Southwest Atlanta. During COVID, since we went there, I serviced the State of Georgia. [1:10:35](https://vimeo.com/1167430828#t=4235s) So that mean we get constant call each and every day to service to keep people out their homes. Even a, uh, a person that's a senior that did a reverse mortgage wasn't aware that these items are going on and don't have the fund. Taxes increased. We have a number of things that are constantly going on that affecting, and then now we have HOA taking people property. We say we want homeownership in our community, then we must help protect homeownership at what price. [1:11:07](https://vimeo.com/1167430828#t=4267s) I do believe we're at a turning point now where we can find something, a bill, and I think that it is the right bill. It may have to have some alteration, like she said, that may affect different area, the condo, but it, it's much needed, and this is the opportunity for us to put something in place to allow someone that from a out of state to come here, run association, and then, uh, take the ownership of people property. I have one my own self that's an association. We went from $75 to $75,000, all because of argument going back and forth. [1:11:42](https://vimeo.com/1167430828#t=4302s) Now they refuse to negotiate. So I'm, I believe this is a opportunity that we need to look at this bill, fix it so it goes into life to make sure that we're protecting homeowners. Thank you. [1:11:57](https://vimeo.com/1167430828#t=4317s) All right. Thank you, ma'am. Any questions by members of the committee? Okay, that's all the testimony. Um, M- Representative Scott, you know this first hearing, so do you have any g- last comments you'd like to make, well, before we move on? [1:12:10](https://vimeo.com/1167430828#t=4330s) Um, thank you, uh, Mr. Chairman. What I would like to say is, is that no one should be losing their homes, um, to foreclosure because of assessment fines and fees. The only way a person should lose their home, and we all know, if they don't pay their taxes or they don't pay their morg- mortgage. Those are the only two things that we know when we buy a home that we could lose our home for. If we don't pay our taxes and we don't pay our mortgage, then we know we stand a possibility of losing our homes. [1:12:47](https://vimeo.com/1167430828#t=4367s) But for fines and assessments and fees, it should never happen and it should never be. So I ask that you all do take into consideration House Bill 1035. Thank you. [1:12:59](https://vimeo.com/1167430828#t=4379s) Y- yes, ma'am, Representative Scott, and you'll be notified when the next, uh, second hearing is. Any other comments on that legislation? We'll move on to, uh, Chairman Scott now, uh, Chairman, uh, Crowe. You ready? [1:13:14](https://vimeo.com/1167430828#t=4394s) Yes, sir. [1:13:16](https://vimeo.com/1167430828#t=4396s) You, you, you choose which one. Let's see, you just got one. Okay, yeah. Go ahead. [1:13:22](https://vimeo.com/1167430828#t=4402s) Thank you, Mr. Chairman, and members of the committee. Uh, this is House Bill 1336, uh, LC number 590343. Um, what this bill does is it, uh, it helps to get funding to our municipal and general aviation airports. Uh, Georgia has dozens of public use general aviation and municipal airports that serve our local communities, agricultural operations, emergency medical services, charter operations, and business aviation. [1:13:53](https://vimeo.com/1167430828#t=4433s) Unlike major commercial airports such as Hartsfield-Jackson or Savannah/Hilton Head, these smaller airports do not generate significant commercial revenue from airline operations, terminal concessions, or passenger fees. Yet when aircraft ad valorem tax revenues are collected by local jurisdictions, those funds flow into the general fund with no guarantee that any portion returns to the airport infrastructure that justifies the tax. This bill corrects that disconnect, ensuring that the revenue generated by aircraft actively benefits airports those aircraft depend on. [1:14:28](https://vimeo.com/1167430828#t=4468s) Importantly, this bill is not about Hartsfield-Jackson or other large commercial airports. Those facilities have substantial commercial revenue streams and are expressly excluded. This bill protects the smaller airports that don't. Uh, commercial airports are intentionally excluded. The definition in this bill refer- cross-references OCGA 32-9-8, uh, which expressly excludes facilities operating under 14 CFR Part 139, which is the FAA certification standard for airport service scheduled commercial air carrier operations. [1:15:02](https://vimeo.com/1167430828#t=4502s) Um, that exclusion is deliberate and purposeful. What it would require is that each of the jurisdictions that generate this revenue, uh, provided in this, uh, subsection, if they contain one or more airports, dedicate at least 50% of such revenues to the maintenance and operations of that airport, um, where they derive that revenue. So that's the bill, Mr. Chairman. I'll be happy to answer any questions if there are any. [1:15:33](https://vimeo.com/1167430828#t=4533s) All right. Thank you, Chairman Crowe. Uh, any members of the committee have a comment or a question they'd like to ask Representative Crowe? [1:15:40](https://vimeo.com/1167430828#t=4540s) All right, we've got a, uh, one speaker here, Nathan Corbett. [1:15:52](https://vimeo.com/1167430828#t=4552s) Good afternoon, Mr. Chairman, members of the committee. Always a pleasure to be here. My name is Nathan Corbett with ACCG. Thank you for the opportunity to speak to this bill. I'll keep it very brief. ACCG opposes House Bill 1336. Revenues from ad valorem tax on airplanes are currently unrestricted, and ACCG opposes any new restrictions on how counties can spend their tax revenues. Thank you very much. All right. Any questions from the committee to Mr. Corbett? All right. Thank you, Mr. [1:16:22](https://vimeo.com/1167430828#t=4582s) Corbett. [1:16:25](https://vimeo.com/1167430828#t=4585s) Uh, Mr. Larry Schnatter. [1:16:31](https://vimeo.com/1167430828#t=4591s) Mr. Larry. That's me. That's you. Go ahead and state your full name so I won't mess it up. I might- Yeah. I thank you for that. It's, uh, Larry Scheinflug. Good job. Okay. [1:16:46](https://vimeo.com/1167430828#t=4606s) I've, I've had a few years to practice. [1:16:50](https://vimeo.com/1167430828#t=4610s) Uh, Mr. Chairman and members of the committee, um, I'm Larry Scheinflug. I reside at 1725 Kellogg Springs Drive in Dunwoody, Georgia. I've been a pilot, uh, since 1988. I have, uh, private instrument, commercial and ATP ratings. Um, I also own and operate a small single engine airplane out of Peachtree-DeKalb Airport. Uh, the Peachtree-DeKalb Airport, located in DeKalb County, has an airport advisory board consisting of seven members representing all districts across DeKalb County. [1:17:23](https://vimeo.com/1167430828#t=4643s) I've been appointed, uh, by several District 1 county commissioners over the past 20 years, um, both Democrat and Republican. I've served on this board at the airport as both vice chair and chairman of the board. Uh, the duty of the airport advisory board is to advise the DeKalb County Board of Commissioners on airport-related issues using our aviation expertise. But here, I'm speaking on behalf of myself as an aviation airport, um, expert. [1:17:56](https://vimeo.com/1167430828#t=4676s) I'm in support of this bill, and, uh, 50%, as, uh, Clint pointed out, is really a great start. Uh, let me explain why. Um, I think I'm gonna echo some of the same issues that Clint talked about. Uh, first of all, community airports are always in need of additional resources due to increased costs of infrastructure maintenance, repair, and replacement. Most airports are enterprise funds and therefore self-sufficient. They are not supported by any local or county tax dollars. [1:18:30](https://vimeo.com/1167430828#t=4710s) Plus, aviation fuel tax dollars from the federal government are not meeting the financial needs of operating community airports. Many airports have begun instituting landing fees to make up for this shortfall, but private owners such as myself do not have any paying passengers who can pass along the cost. So we can't pass along this ta- tax to anybody else, or landing fee. We have to pay for it ourself. At PDK, our ad valorem tax is distributed as follows: 58% go to schools, 30, 34% go to the DeKalb County general fund, and 8% to the city of Chamblee. [1:19:11](https://vimeo.com/1167430828#t=4751s) Since I've been on the board for the past 20-plus years, not one penny has gone back into the airport. So in conclusion, as I stated previously, I'm in support of this bill, and 50% is really a great start. This bill should include all public airports and not just private airports, and not, uh, commercial airports, as Clint pointed out. It makes sense that aviation-related taxes make their way back to airports to support them due to increase in cost in maintaining airport infrastructure. [1:19:45](https://vimeo.com/1167430828#t=4785s) I feel that ad valorem tax should be used at airports where they are generated and funneled back into the operating costs of those airports. And thank you for your time. Yes, sir. Hold on just a minute. We got, uh, Chairman Williamson h- may have a question. Uh, just a quick question. Thank you for your testimony today. Um- Sure. ... you know, as a private pil- pilot who's using PDK, uh, just curious, and you're obviously reside fairly close to, right at the airport. Is that what you said? I'm four miles away. Oh, very close. [1:20:16](https://vimeo.com/1167430828#t=4816s) Uh, just out of curiosity, do you have any idea what the gross, uh, market value o- of the, uh, aircraft that were there January the 1st of 2026? I'm, uh ... Just a friendly question. I have no idea what kind of a gross assessment or gross value to, to which the assessment of the airplanes. I, I don't know the gross value of the airplanes, but I, I do have, uh, an estimate on the amount of ad valorem tax collected at the airport is about $9 million a year. [1:20:46](https://vimeo.com/1167430828#t=4846s) Okay. So if we could get 50% of that turned over to the airport, that would be fantastic. Uh, I talked to the airport director at our last airport advisory board meeting, and he said, "Larry, I have no money to do anything. We're gonna be relying on these landing fees." So this bill that is proposed would be a fantastic help to not only PDK, but a lot of other community airports that are, are self-funded. A- and on that note, a follow-up question. The landing fees, what do they charge you to, um ... What's your landing fee for your small private plane? [1:21:16](https://vimeo.com/1167430828#t=4876s) Well, right now, we're exempt, we're exempt below 9,000 pounds. Okay. My airplane's 3,000. Well, that's reasonable. So thank you. Thank you for your testimony. You bet. All righty. Thank you, sir. Thank you, Mr. Chairman Williamson. Okay. Anybody else? Any comments? This, um, first hearing only. Representative Crowe. And we will move on. Is Representative Clark, District 100, is he here? David Clark. How about Representative McCollum, District 30? [1:21:51](https://vimeo.com/1167430828#t=4911s) I reached out to him, so give me just a second. Five-minute pause. If you want to. Make some changes. [1:22:03](https://vimeo.com/1167430828#t=4923s) Presented, uh, Representative presented in another committee, and he's coming out of there, coming here. [1:22:58](https://vimeo.com/1167430828#t=4978s) So let's give him about two or three minutes and see if he can get here. Any other comments? Uh, while I'm talking, these bills that we're taking up here are all first hearings. Um, I was notified by Chairman Chuck Martin that he's holding HB1240. So, uh, just wanna let, let y'all know that. And I hope to have this done in just a few minutes 'cause I know we got another meeting that's supposed to start at 2:00. That I see somebody down there. You're running over, Paul. I'm running over. Thank you. Thank you, Chairman Corbett. [1:24:31](https://vimeo.com/1167430828#t=5071s) All right, M- uh, Representative McCollum, huh? [1:24:34](https://vimeo.com/1167430828#t=5074s) You gonna need anything from me? [1:24:34](https://vimeo.com/1167430828#t=5074s) Yeah. W- we're gonna let Chair- Chairman Williamson do that. I think he may have had a different version, but that's- [1:24:39](https://vimeo.com/1167430828#t=5079s) Okay. [1:24:40](https://vimeo.com/1167430828#t=5080s) We, we held out for you. [1:24:41](https://vimeo.com/1167430828#t=5081s) Thank you. [1:24:41](https://vimeo.com/1167430828#t=5081s) All right, you got, you got a couple minutes. Go. We're running a little late. [1:24:49](https://vimeo.com/1167430828#t=5089s) You can start with either bill you have. [1:24:51](https://vimeo.com/1167430828#t=5091s) Okay. So, um, well, y'all have a copy of it? I was kinda ... Sorry. [1:25:56](https://vimeo.com/1167430828#t=5156s) Thank you for commit- Thank you, committee. Sorry. Nothing like being prepared, right? [1:26:05](https://vimeo.com/1167430828#t=5165s) Well, I have, um, [1:26:09](https://vimeo.com/1167430828#t=5169s) House Bill 1228, LC9- 590301. Um, a little background on this bill. I've been working on legislation, um, to curb the private equity from buying up our houses, single family houses in, in Georgia. Um, I think it's, uh, detrimental. I'm pretty passionate about this. Um, far ... Sorry, I'm collecting my thoughts here. I wasn't expecting this. Um, it's, uh, pretty detrimental for, for Georgia. [1:26:43](https://vimeo.com/1167430828#t=5203s) Um, they're buying up, they have 83,000 houses in Georgia, about 30% of the single family housing rental market in Georgia, which, uh, it's, uh, pretty challenging in a lot of areas. Essentially, what this bill does is, uh, it taxes them. It sets up a new tax code. It taxes them, uh, at 100% evaluation. So essentially, that 100% instead of 40, they'll be evaluated at, and then those proceeds from that will go back to paying down homestead in those counties and cities they're in at that time. [1:27:24](https://vimeo.com/1167430828#t=5244s) It's a constitutional amendment, so I have enacting legislation, then have the constitutional amendment, um, and it essentially says the same thing, uh, in the, in the, uh, constitutional amendment. That's pretty much the bill. I mean, uh, at the end of the day, they're ... In, in the United States, they're wiping out the middle class. The middle class has always been able to build wealth by buying a house and building equity, sending their kids to school, uh, starting a, a second, uh, little business with the, with the value of the house. [1:28:02](https://vimeo.com/1167430828#t=5282s) They're, they're killing our young kids by buying up these houses, little small houses in neighborhoods. They're buying individual houses throughout the, throughout the neighborhoods and gobbling them up. I had-- When I introduced legislation last year, I know a lot of, uh, legislators had issues with it being a, uh, because of private property rights, but this bill does something different than that. When I, when I addressed that issue last year, a lot of the young, uh, lawyers and things come up to me, um, and said, "Thank you for doing this. [1:28:35](https://vimeo.com/1167430828#t=5315s) We've been saving up as for, saved up $50,000 to be able to buy a house. We find a house that we like, and then all of a sudden a private equity group comes up and buys it out from be- from under us, pays- [1:28:50](https://vimeo.com/1167430828#t=5330s) Over asking and, uh, close in 15 days. Well, that's, that's something you can't compete with as a young, young person. So onl- also what they're doing is when they buy these houses in these subdivisions, and they overpay for them, our tax assessor's using that as a comp. So there again, it's making everyone's taxes go up in that neighborhood. So it's a, it's a several different things that's affecting us in Georgia. [1:29:22](https://vimeo.com/1167430828#t=5362s) That's essentially the bill. I'll, I'll be glad to take questions. All right. Thank you, uh, Representative. An- anybody on the committee have a question? We have some few speakers in the audience, and we're gonna let everybody just, you know, squeeze it in as much as you can, just a couple of minutes. Um, Ms. Bradfield. [1:29:46](https://vimeo.com/1167430828#t=5386s) Remember, just state your name and who you with. Thank you. Thank you, Mr. Chairman. Betsy Bradfield, Georgia Association of Realtors. Um, Representative McCollum, thank you for bringing this bill. Uh, for full disclosure, Representative McCollum also had House Bill 555, which we previously opposed last year because of the cap, but we are on board with his current bill and the constitutional amendment because of, we believe that the tax approach is the proper approach. So I represent the Georgia Association of Realtors, which is 46,000 Georgia Realtor members who live and work in communities just like yours. [1:30:21](https://vimeo.com/1167430828#t=5421s) I do not represent Wall Street. I do not represent private equity. We represent mom-and-pop landlords and their property managers. Our mom-and-pop structure their rental properties in LLCs to protect themselves from liability, which is exactly how a lot of corporations, larger corporations also structure theirs. We wanna protect our mom-and-pop landlords from the unintended consequences of rental bans, which is a lot of these caps that you hear that can create loopholes and bans. Um, I will say that no other group besides the Realtors has been down here for longer representing homeowners and home buyers, and also banging the drum about our housing crisis, uh, alongside our home builder friends, and we are in a housing affordability crisis. [1:31:01](https://vimeo.com/1167430828#t=5461s) Much of it to do is with interest rates, which I wish I could bring you guys a bill to change interest rates, but unfortunately, that is not this government. Um, and but a lot of it is also competition, and much first-time homebuyers currently cannot compete. The median sales price in 2025 rose to $360,000. That is not an affordable price for a first-time homebuyer. Our national association just released a study that said that the average age of a first-time homebuyer was 40 years old. [1:31:32](https://vimeo.com/1167430828#t=5492s) 40 years old. So we, the Georgia Association of Realtors, we do not support arbitrary caps that create loopholes, but we do support... Is my mic... Nope, there it is. We do support leveling the playing field, and we believe that we can do that through this tax approach. So adopting a structure where mom-and-pop landlords are, are taxed at 40% of assessed value and large institutional investors are taxed at 100% of assessed value will require a lot of these private equity firms to readdress their stance in Georgia, and thank you so much. [1:32:02](https://vimeo.com/1167430828#t=5522s) I'll stand for any questions. All right. Thank you, Ms. Bradfield. Any questions for Ms. Bradfield? Thank you very much. Uh, we've got a question here, Chairman Williamson. Thank you, Ms. Bradfield. You, you've mentioned several times about you didn't support last year's because it had a cap. This bill does has a ca- have a cap. So what's different? So that 555's cap was basically if you owned above the cap, you had to divest and put all of those homes back onto the market, um, anything above the cap, and that makes us nervous because we don't want a, a forced divestiture similar to like 2008. [1:32:37](https://vimeo.com/1167430828#t=5557s) And also, with that cap, my opinion was that, um, a large corporation could just create two different LLCs under the same, uh, under two different names and get out from under the provisions of House Bill 555. I think this one is a lot more tightly wound with the affiliate language so that the LLCs cannot find loopholes, um, to get out of the cap. Well, but again, so you, you support that, the concept of the cap, it just needs to be something that's enforceable. Something that's enforceable. Yes, sir. Yep. And then can, can you help me understand then lines 37 through 39? [1:33:13](https://vimeo.com/1167430828#t=5593s) Uh, it says, uh, "Business enterprise means a corporation, association, partnership, limited liability company, limited partnership, trust, issue, or other private legal entity organized under the laws of the State of Georgia," blah, blah, blah, but it means owned by a business enterprise directly or indirectly. What's the indirect ownership? Can you give me an example of that? Because I'm, I'm- No ... this is a silly question. I have no idea what that means. Yeah, my opinion is that that would be like the subsidiaries LLCs. So company A has, you know, several different LLCs underneath. [1:33:45](https://vimeo.com/1167430828#t=5625s) Um, or it would be an indirect ownership, like you have 10 different investors all sharing ownership of a property, which is what are, they don't own it all outright, but they share ownership. So this would, to your point then, this would affect every REIT in Georgia. It is my opinion that it would affect REITs, yes, sir. I am not an attorney. So and, and REITs don't just invest in single family residential homes, so this would be li- limited to the single family residential properties that the REITs own, correct? I believe so. [1:34:15](https://vimeo.com/1167430828#t=5655s) Um, also, I do know that, I'm not sure about Georgia's TRS and Georgia's ERS. I know several other states', uh, employee retirement systems invest in REITs. Yeah, and I was gonna, that was the follow-up question I was gonna ask. Do you have any idea what the impact that would do, have on our retirement funds in the State of Georgia? Because we're assuming that you're correct, that typically it's been a, it's, uh, been an asset class that most pension funds are, are exposed to through, you know, through investments. And do you have any idea how that would impact, impact our retirement funds? [1:34:49](https://vimeo.com/1167430828#t=5689s) You are correct. It is one of the strongest investments real estate is that you can make, and so that's why so many people have invested in real- the real estate market. I am not 100% sure, um, but it's something that I can definitely look into to see if our investment, if the state's funds are invested in REITs. And then the final question, would you not argue then that, that- [1:35:08](https://vimeo.com/1167430828#t=5708s) the intended, this bill would intend to stop that ac- economic activity to put a economic disincentive in place. Is that not correct? [1:35:17](https://vimeo.com/1167430828#t=5717s) I think so, yes, sir. I think the state incentivizes, um, the certain actions that they want all the time, similar to how you guys incentivize home ownership through offering homestead exemptions. Um, there, and you, through tax credits you incentivize certain businesses to move to the state of Georgia and open up shop here. So I don't think it would be out of the realm of possibility that you would be incentivizing owner-occupied home ownership with this bill. [1:35:41](https://vimeo.com/1167430828#t=5741s) Well, a lot of times then, just, that's a good illustration you just gave. So would it not be true that most of the time when we remove an economic incentive that the Georgia legislature has put into place, there's typically a sunset, uh, or I would say an exit ramp? 'Cause you've created conditions in which capital is deployed according to the laws and rules and regulations of the state of Georgia at the time that you deploy that capital and, but then you change the rules and then, uh, it, is, um, 'cause some of these activities might have occurred within the last six months, and all of a sudden you've got investors, be it through pension bands, um, um, plans or whatever, all of a sudden, um, the state of Georgia's changed the rules on them that, to the economic disincentive. [1:36:24](https://vimeo.com/1167430828#t=5784s) Would that be a fair way to put it? Uh, re- economic detriment, not disincent- uh, to their economic detriment. [1:36:31](https://vimeo.com/1167430828#t=5791s) Yes, sir, I understand. Um, I think that that has been a conversation for a lot of, like, the tax credit com- especially when, with your colleagues in the Senate who are looking to sunset a lot of different tax credits, and a lot of the, the feedback is that the general assembly's not providing them with an exit ramp on the way out. Um, you are, are, you all are the policy makers. If you decide to put some sort of exit ramp, some sort of divestiture, uh, timeline in here, I would just ask that it be a slow divestiture and not something where you're requiring a bunch of houses to all hit the market all at once, 'cause I do believe that will destabilize the market. [1:37:05](https://vimeo.com/1167430828#t=5825s) Well, but the, the, uh, that , I think that's our s- as I heard you say, that's the intended, that's the intent of this bill, to have them exit as rapidly as possible. [1:37:14](https://vimeo.com/1167430828#t=5834s) Mm. I don't think it's to have them... I think it's basically to level the playing field. So it will require, uh, several of them, the action that will happen is that some of them will sell off some of the properties, right? Because they'll look at their entire tax liability and they will want to sell off 100, right, in order to, to meet their tax obligations. There will also be some that eat the cost, that eat the increased tax. Um, and then I know that there's been a lot of questions, we have a similar tax approach about, well, what happens when they just pass the tax on to the renter? [1:37:44](https://vimeo.com/1167430828#t=5864s) Um, there is an income approach that I'd be happy to talk with you guys offline about in, under the appraisal code that the real estate commission uses. Um, and if, it's used in a ton of commercial properties that the appraiser can appraise based on how much income is generated. [1:37:57](https://vimeo.com/1167430828#t=5877s) And I'm, and I'm- [1:37:57](https://vimeo.com/1167430828#t=5877s) I know you're 100% familiar with it, yes. [1:37:58](https://vimeo.com/1167430828#t=5878s) Yeah, I'm, I'm familiar with that. I just, I just think you better be, this legislative body better be thinking about the, maybe some of the unintended consequences. You're s- you're assuming- [1:38:08](https://vimeo.com/1167430828#t=5888s) Yeah [1:38:08](https://vimeo.com/1167430828#t=5888s) ... this would be a slow process, but at a minimum, uh, it's just like any kind of bond or whatever. It's like a, a, the, the, you would have a, a immediate decrease in value because the, the, this asset class was throwing off a, a, a, a yield, and all of a sudden that yield's gonna move down. So the, the, the, um, the, the price of that underlying asset, the value of that's gonna go down as well. So anyhow, but thank you for your testimony. [1:38:40](https://vimeo.com/1167430828#t=5920s) Yes, sir. Thank you. [1:38:41](https://vimeo.com/1167430828#t=5921s) May I respond, Mr. Chairman? [1:38:44](https://vimeo.com/1167430828#t=5924s) Who said that? Oh, yeah. Okay. Uh, I'm looking around, trying to find you. [1:38:48](https://vimeo.com/1167430828#t=5928s) Yeah. So- [1:38:49](https://vimeo.com/1167430828#t=5929s) Now I come back to you, Mr. Chair. [1:38:51](https://vimeo.com/1167430828#t=5931s) So the, um, uh, Representative We- Williamson, I, I just wanna respond. It's not a cap. It's obviously they c- they can still own the houses above, it's just, it's just a setting up a new class of taxes. So, um, we're not capping them. They can continue to run them just, you know, just like they can anything else. But I would also say that the legislator who creates laws, a lot of times it affect businesses and to a detrimental as well. So I mean, it's, it's no different than anything, anything else we've passed in the past. [1:39:21](https://vimeo.com/1167430828#t=5961s) We can get offline on that. [1:39:23](https://vimeo.com/1167430828#t=5963s) All right, let's see what Chairman Martin's got down there. [1:39:26](https://vimeo.com/1167430828#t=5966s) Oh, let's do. Um, all right, so, so I'm, I'm gonna, uh, I know we're, we're in the question portion here, but I'm gonna try to lay the, the basis for my question if I can, Mr. Chair, and I'll be as brief as I can. So, so, so the issue here is, well, you know, if there's 1,000, okay, why 1,000? Why not 900? The issue I think is we have c- we'll just say companies, you know, investors that are coming in, they're competing with folks to buy houses, right? Uh, would you agree it, that that has happened over the years because the interest rates have gotten low, so the places where retirement funds used to invest in bonds and so forth and used to get a 6 or 7% return there, they're not getting that, so they get their, they can get that return o- on real estate now? [1:40:05](https://vimeo.com/1167430828#t=6005s) I mean, that's one of the reasons that money's poured into real estate, wouldn't you say? [1:40:08](https://vimeo.com/1167430828#t=6008s) Well, I, I would, I would say that what, what originally happened was in 2008 during the s- selloff, the, the Obama administration started selling houses in thousand lots, which most homeowners can't obviously buy 1,000 houses at a time. And also they created, uh, loans to, for, for these groups that are doing this, uh, big feder- federal loans at, at pennies on the dollar interest to buy up all these houses. So once they got a taste of it, uh, y- you are correct, they started, started buying them. [1:40:37](https://vimeo.com/1167430828#t=6037s) So, so, so my question here is, this, this picks a number. It says if you own more than these, you know, you gotta, you're treated different. I, I, I would, in this, you have a bill here, but you have to, we have to change the constitution 'cause you're creating a different class of property. M- my, my question is- ... you know, why not this, okay? Um, why not treat the class of property different that it's a generating, it's a, it's a revenue generating residential property? That's different than a rev- a residential property that somebody lives in and calls home. [1:41:09](https://vimeo.com/1167430828#t=6069s) I mean, we're seeing that with the HOME Act and, and, and those various things. And, and so I would suggest that anything, if you have a 1,000 home built to rent neighborhood- That's like 1,000 home apartment complex, but we tax it different in the state of Georgia because it's single family residential versus multi-family. So my question is, rather than chase a number, why not chase what it's doing because it's a class property? Further to, to Chairman Williamson's point is, l- let's, let's worry less about what you have now and, and put a date certain and say, "Eyes wide open going in. [1:41:44](https://vimeo.com/1167430828#t=6104s) If you, if you buy these properties in the future and it's a revenue gen- generating piece of property, the Georgia Constitution changed and we're gonna treat you like this," rather than, than an arbitrary limit on, on what's out there. If I'm listening to what the, um, the speaker said, and, and I, I think what I've heard you say before is you're not necessarily trying to make people sell things, but you, you wanna try to lay, level the playing field going forward. Would that not be a way to do it? So you treat a revenue generating piece of properties. [1:42:14](https://vimeo.com/1167430828#t=6134s) The property's worth, you know, less to you if you're buying as a revenue just generator because your pro forma says you gotta pay more tax than it is if a family wants to buy it and live in it. So that makes it more competitive, um, you make more competitive if you're a family buying. And two, if you do it going forward rather than what you have now, any investor going in is going eyes wide open and you're not taking anything away from them. [1:42:38](https://vimeo.com/1167430828#t=6158s) Well, the, my, my intent as well is I don't wanna make sure we, we hurt Georgians. So, uh, throughout history, you know, Georgians a- and all, all people in the country have been able to buy, you know, one rental house or a couple rental houses and, and that's their retirement. And, uh, so we have a lot of, uh, lot of people in Georgia that have a, you know, two or three rental houses. So i- in, in your scenario, what would happen was, we're, we're not leveling the playing field. We're, we're, we're getting everybody that has a few rental houses all the way up to the ones that have 83,000 or, or 16,000. [1:43:13](https://vimeo.com/1167430828#t=6193s) So, um, we're not really giving, you know- [1:43:17](https://vimeo.com/1167430828#t=6197s) That, that, that all depends on how you write the... That all de- depends on how you write the, um, class property. [1:43:22](https://vimeo.com/1167430828#t=6202s) Right. [1:43:23](https://vimeo.com/1167430828#t=6203s) I mean, you, you, you could s- scale it down. I just suggest that any revenue generating piece of property is, is taxed different than if you own your house. [1:43:32](https://vimeo.com/1167430828#t=6212s) Right. [1:43:32](https://vimeo.com/1167430828#t=6212s) If you, if you own a revenue generating piece of property, is it not true that you can depreciate that property and it lowers your taxes? Is it not true that you can write off when you paint the house on that property and it lowers your taxes? But, but I as a homeowner can't write off my, you know, property tax. I can't write off... I can write them off up to a certain point, but I can't write them off dollar for dollar against income. Um, and I, I can't write off, uh, my expenses. I just, just suggest as you're doing it rather than to, to find certain numbers, to, that you do it prospectively, number one, and number two, do it based on what, what's really different about the property. [1:44:05](https://vimeo.com/1167430828#t=6245s) The property is this generates income, this doesn't. [1:44:08](https://vimeo.com/1167430828#t=6248s) Well, I, and thank you for that. [1:44:10](https://vimeo.com/1167430828#t=6250s) Throw that out there for you. [1:44:10](https://vimeo.com/1167430828#t=6250s) Right. Thank you for that. That, but I will also say that, you know, I've had rental houses. I, I don't have many. I have a few, uh, throughout, you know, for 30 years. And, and the difference is between me and, and a lot of people that have rental houses, you, you create a relationship with those people you rent to. They, they become, they're your neighbors. You have to look them in the eye. So I, I've had a lot of times when the downturn in the economy, uh, you know, I've, I had, I reduced the rent. I didn't have to, but I did to help them. Well, these constitutional, these, these, these outside investors, big private, they could care less. [1:44:43](https://vimeo.com/1167430828#t=6283s) They, they're gonna... All it is about them is m- is money. Um, and you know, I'm not against private equity investing, but I think there's so many things that they can invest in other than single family housing and knocking out the middle class and the American dream of owning a home. But, but I, I see what you, what you're saying and I appreciate it. [1:45:03](https://vimeo.com/1167430828#t=6303s) We've got a few more speakers, so thank you, Chairman Martin. Thank you, Mr. Bradfield. Okay, uh, Mr. Hackney. [1:45:17](https://vimeo.com/1167430828#t=6317s) Thank you, Mr. Chairman and members of the committee. My name's Austin Hackney. I'm here on behalf of the Home Builders Association of Georgia. Unfortunately, here to oppose House Bill 1228, and wanna briefly tell you a couple reasons why. A- and the first is, um, i- i- is that it sets up, a- as been discussed, a, a new class of property owners based on, uh, their ownership scale and business structure. And so, um, you know, to me, that's more selective taxation than just fairness across the board. [1:45:49](https://vimeo.com/1167430828#t=6349s) So, um, in a year that this house is proposing sweeping comprehensive property tax reform, uh, this seems like a complication that's maybe a little bit outside of those goals because, uh, um, in my experience, uh, the real estate economists that come to the capital to speak to the legislature that, that, that I speak with in a normal course of business say that Georgia is in a housing supply crisis. And, um, to my reading of this bill, that there, it does nothing to increase housing supply of new rooftops into the marketplace. [1:46:25](https://vimeo.com/1167430828#t=6385s) In fact, um, the way we read it, it reduces supply by, uh, increasing costs for renters, uh, for rental homes to have to absorb these new costs, um, and pass them on to their tenants. Uh, it reads like a tax shift, uh, so that the, uh, the bill uses the proceeds to reduce homestead tax bills in that same jurisdiction, which to me means that the goal of the, of the policy here is not to stop the practice or, or create a structural fix, but to just redistribute those dollars within the tax digest. [1:47:02](https://vimeo.com/1167430828#t=6422s) And the, um, comments about the 1,000 unit trigger being arbitrary or inviting maybe some gaming or complexity, um, I would just say that, you know, uh, the legislature wouldn't tell a restaurant that it can't serve more than 1,000 meals, and it wouldn't tell a hospital that it can't see more than 1,000 patients. So when you start to think about it from a 30,000 foot view like that, um, you know, we're not telling- Timber farmers that they can't grow more than 1,000 trees. [1:47:32](https://vimeo.com/1167430828#t=6452s) Uh, so, uh, to me, that number just seems kind of off the cuff. And, and this whole structure, uh, to our reading, is just gonna result in more county and s- assessors and taxpayers getting into fights about compliance instead of focusing on accurate assessments for all property owners. Um, so if I could just leave you with, uh, th- three points. Um, please don't punish housing in this affordability crisis environment. Uh, the tax shift is not creating affordability. [1:48:03](https://vimeo.com/1167430828#t=6483s) It's just moving that burden to a different homeowner or tenant. And then, uh, Georgia needs more homes, and anything the legislature can do to increase supply is gonna help, uh, all Georgians fix this housing affordability crisis. Thank you. All right. Thank you, Mr. Hatney. Anybody got any questions? Thank you, sir. Appreciate it. Uh, Mr. Ross. [1:48:28](https://vimeo.com/1167430828#t=6508s) Thank you, Mr. Chairman, members of the committee. My name is Richard Ross. I'm here to speak against, uh, House Bill 1228, as well as House Bill 1244. Um, I am the CEO of Quinn Residences. We are a Georgia-based owner, operator, developer of purpose-built dedicated rental communities throughout the southeastern United States. We currently operate 1,200 homes in Georgia, with 800 more under construction across 15 communities. [1:48:59](https://vimeo.com/1167430828#t=6539s) That represents a $750 million investment in Georgia. We employ over 100 Georgians in our company. Uh, we will pay property taxes this year somewhere in excess of $5.8 million. That's in addition to the ad valorem taxes and sales taxes that we pay and our residents pay to the state. What is a purpose-built dedicated rental community? Think of it as a subdivision in suburban, uh, Gwinnett County, Cobb County, 150-home starter homes. [1:49:31](https://vimeo.com/1167430828#t=6571s) These are three and four-bedroom communities where every home is for rent. Our homes, on average, in Georgia are 56% cheaper to rent than to own. Apples to apples, same home. That means more, monthly mortgage payment, property taxes, insurance, maintenance costs. So it costs less than half to rent a home from us than it does to own the identical home, if you will, next door. The average age of our resident is 38 years old. [1:50:03](https://vimeo.com/1167430828#t=6603s) Um, their income is somewhere around $120,000 a year. Many of our residents stay three years or longer in our homes. A third of our residents are renters by choice, meaning they don't wanna buy a home. They choose to rent from us for a number of reasons. One is the no-maintenance lifestyle. They don't have to mow the lawn. They don't have to unclog the toilet. Um, they want access to schools. They may wanna move from Atlanta to Charlotte or to Denver in a couple of years. So the flexibility is there. [1:50:34](https://vimeo.com/1167430828#t=6634s) The other two-thirds of our residents do wanna own a home, and the reason they're living in our homes is so that they, they can save money, not only for a down payment. Uh, just today, I had a resident, a, a five-year resident in one of our homes tell us she was moving out because she was able to save enough money to buy that home over that five-year period. We do things to help our residents afford a home. We positive credit report rental payments, so it helps build their credit score. Obviously, the ability to save. [1:51:06](https://vimeo.com/1167430828#t=6666s) I would also say more broadly, the ding against this industry, as you heard some speak, is that we're taking homes from others, um, from people who could otherwise not afford them, and that's just simply not true. In Georgia, the homeownership... In Atlanta, Metro Atlanta, the homeownership rate is well over 66%. That's the highest it's been in 10 years. The average rate of homeownership, which by the way, has not changed in this country for 60 years, is around 65%. [1:51:36](https://vimeo.com/1167430828#t=6696s) So we're actually over the average over the last 10 years. Institutional investors, as you call them, uh, I'm using 100-plus, actually own only 4% of the homes in Georgia. When you shrink it to just the rental homes, that's when you get a higher number. But if you look at the overall homeownership, it's less than 4% are owned by institutions. And I'm using that loosely as people who own 100 or more homes, not 1,000. Um, the other thing, um, this bill will do for me and my business is it'll put me out of business. [1:52:11](https://vimeo.com/1167430828#t=6731s) As- assessing my homes at 100% will force my divestiture and not allow me to build any more homes. Thank you. All right. Uh, we got a question here. Chairman Martin. Yes, sir. Would, would you take a question? Absolutely. I, I, I wanna first tell you, I, I'm, I'm personally aware where it, it absolutely impacts, uh, young families buying a house. When, when the... Maybe not today, but when the housing market was hot, it was a common practice. [1:52:43](https://vimeo.com/1167430828#t=6763s) Um, is it not true that, that people would go to highest and best offer? And I just, I saw a person after person lose to, um, a venture capital firm or private equity firm because the extra five grand or whatever just really meant nothing to a billion-dollar portfolio, and it, it meant that a couple couldn't do that. But that, that's beside the point today. So I, I, I take your point at the macro level. At the micro level, it is absolutely affecting Georgia f- uh, families. My question to you is this. You mentioned that you did, you know, build, build to rent neighborhoods. [1:53:13](https://vimeo.com/1167430828#t=6793s) Am I saying that or... That's correct. You used diff- I mean, you might have used different terminology. I was trying to- Same thing ... tr- trying to use yours [1:53:19](https://vimeo.com/1167430828#t=6799s) W- would you object to being, um, having those neighborhoods? 'Cause they essentially are horizontal apartments, are they not? [1:53:26](https://vimeo.com/1167430828#t=6806s) Correct. [1:53:27](https://vimeo.com/1167430828#t=6807s) So if, if, you, you wouldn't be opposed to them being a class of property that could be taxed like an apartment building? [1:53:34](https://vimeo.com/1167430828#t=6814s) Many of our, um, subdivisions are in fact what we call single plat or treated as multi-family. [1:53:39](https://vimeo.com/1167430828#t=6819s) Okay. [1:53:39](https://vimeo.com/1167430828#t=6819s) So no, that's something that creates, um, a different tax base, and that's fine as long as we know what the playing field is. [1:53:46](https://vimeo.com/1167430828#t=6826s) Okay. So ba- back to my questions earlier. Your, your objection is you, you went into a, um, you per- performer to, to buy a house or to do a thing and it was like this, and going ... And, and, and therefore you built your, your financial model to do that. But if going forward ... And I'm not saying 100% is the right thing. I know that's the gentleman's proposal. But, but would you not agree that there is a, a tax advantage for you, the reason you can provide that, uh, the rent at a certain fee from that is, is you, you can have non-cash depreciation on houses. You can, you know, uh, write things off that the homeowner can't. [1:54:20](https://vimeo.com/1167430828#t=6860s) It puts you in a better po- position. Is it not true when you're- [1:54:22](https://vimeo.com/1167430828#t=6862s) There are certainly- [1:54:23](https://vimeo.com/1167430828#t=6863s) ... you're trying to- [1:54:24](https://vimeo.com/1167430828#t=6864s) There are certainly tax incentives to our business. [1:54:26](https://vimeo.com/1167430828#t=6866s) Right. So- [1:54:26](https://vimeo.com/1167430828#t=6866s) We do not get a homestead exemption- [1:54:28](https://vimeo.com/1167430828#t=6868s) No, I understand that [1:54:28](https://vimeo.com/1167430828#t=6868s) ... like a homeowner does. [1:54:29](https://vimeo.com/1167430828#t=6869s) I, I understand that. [1:54:30](https://vimeo.com/1167430828#t=6870s) Uh, and scale also allows us to provide, right- [1:54:33](https://vimeo.com/1167430828#t=6873s) Fair enough [1:54:34](https://vimeo.com/1167430828#t=6874s) ... lower costs. So we can mow the lawn cheaper than- [1:54:35](https://vimeo.com/1167430828#t=6875s) Okay. F- f- yeah, fair, fair enough [1:54:36](https://vimeo.com/1167430828#t=6876s) ... a property owner. [1:54:37](https://vimeo.com/1167430828#t=6877s) So I mean, we're, we're, we're, I mean, we might, like I say, on the micro level have slight disagreements, but on the macro level we see the, the sames, same thing or see it very similarly, and we just kinda are l- are s- searching for a, a way to improve it for everybody. Thank you. [1:54:51](https://vimeo.com/1167430828#t=6891s) You're welcome. [1:54:54](https://vimeo.com/1167430828#t=6894s) All right. Thank you, Mr. Chairman. Okay, no other questions. Thank you, sir. Um, now we're gonna hear from Mr. John Isakson. [1:55:06](https://vimeo.com/1167430828#t=6906s) Mr. Chairman, members of the committee, uh, thanks for having me. Uh, thanks for allowing us to speak in opposition to this bill. My name is John Isakson. I'm the CEO of ARC Homes for Rent. We own about 1,000 homes here in the state of Georgia, and we're a little different than Mr. Ross in that about two-thirds of our homes are actually the scattered site single family, and about one-third are the build to rent. We also have about 500 homes today under development in that same build to rent category that we had talked about previously. And m- make no mistake about it, a, a change from 40% to 100% in the ad valorem tax would destroy our business. [1:55:44](https://vimeo.com/1167430828#t=6944s) Uh, today my company pays between three and a half and $4 million in ad valorem taxes. You take that up 250%, that's almost $10 million, and that would certainly swamp our business and force us to sell or liquidate, uh, as fast as we could. I think there is a misnomer about our business and where- how it has created and how it has evolved over the last 10 to 15 years. Although yes, we did start coming out of the great financial crisis, and yes, there was a period of time where thousands of homes were being bought off foreclosure steps or out of the banks REO. [1:56:18](https://vimeo.com/1167430828#t=6978s) Since 2016, the homeownership rate in America and the homeownership rate in Georgia and the homeownership rate in Atlanta have gone up significantly. And in both the city of Atlanta and the state of Georgia, our homeownership rate is actually higher than the national average. What we do today as an industry is we provide the financial engine that helps create more single family ownership housing, and let me explain why that is. Today, so many builders when they go out to build a property, the, because of the cost of building, because of the cost of capital, whether it's investor capital or debt capital, it is harder and harder to achieve a rate of return that makes a development make sense. [1:56:59](https://vimeo.com/1167430828#t=7019s) By coming to us, and I have a deal in Savannah that I'm doing today that's a perfect example of this, uh, a large national builder is building 1,000 home development. 850 of those homes will be for sale. 150 of those homes will be for rent. Because we are buying those 150 homes, that 850 homes that they're developing for sale are more financially viable and are being developed. I'm also doing this in other states. So for, if we are looking at a housing shortage in America, and acknowledging that there will always be a percentage of America that rents, today it's about 35%, which is about the historic average over the last 60 years, we need more supply of both rental and for sale housing. [1:57:42](https://vimeo.com/1167430828#t=7062s) And our capital structure and our business plan allows us to provide that capital both for the rental housing and to incentivize the for sale housing. And when we talk about communities and when we talk about creating neighborhoods, it is in our best interest to create a neighborhood that has long-term sustained value. I do not make my return on the monthly rental payments. I make the return when I sell the home. And when I sell the home, it needs to be in fantastic shape. The yard needs to be mowed. It needs to be painted. [1:58:12](https://vimeo.com/1167430828#t=7092s) The roof needs to be kept up. It needs to have a full suite of appliances that are all in good working order. It needs to be a home that an individual would like to buy or another investment firm would like to buy, whichever the case may be. So we spend a lot of money on capital improvements, on repairs and maintenance. Every time we turn a unit, that home gets in, that home has more money invested into it to preserve it and to keep it in that manner so that when we do sell, we do get the value that we're looking for. And I would say to the, to the idea that we're somehow taking homes from, from families that are ... [1:58:49](https://vimeo.com/1167430828#t=7129s) That's really not the case, and if it ever was the case, it certainly hasn't been the case in the last six to seven years. We have a financial return that we have to meet for our investors. When somebody is buying a home, that is far more an emotional decision than it is a financial decision. And we are far more limited in the prices we can pay than a homeowner is when they have s- when they have a home they want. And it is, has, it has been the case oftentimes, and I would say well over the majority in the last five to seven years, when an institution has come up against an individual buyer, they have lost that. [1:59:23](https://vimeo.com/1167430828#t=7163s) Because we are capped at a certain amount, and we can't just, we can't just pay the next $5,000, the next $10,000, or we can't actually earn the return that our investors are requiring us to get. [1:59:35](https://vimeo.com/1167430828#t=7175s) All right. Uh, Chairman Martin. [1:59:38](https://vimeo.com/1167430828#t=7178s) Thank you, Mr. Chairman. I'll just- [1:59:39](https://vimeo.com/1167430828#t=7179s) Yes, sir [1:59:39](https://vimeo.com/1167430828#t=7179s) ... I'm, I'm not gonna take the committee's time, but I'm, I'm gonna challenge you on that because I've, I've seen it come to pass, and I'm, I've got the... I mean, I've got the numbers. On, on a $300,000 house, you, you, you- [1:59:50](https://vimeo.com/1167430828#t=7190s) Exactly [1:59:50](https://vimeo.com/1167430828#t=7190s) ... you're absolutely $5,000 means less to a billion-dollar investment firm than it does to somebody who's $5,000 means they can't qualify for the loan, or they don't have it for the down payment. Again, I'm not arguing with you. I- [2:00:01](https://vimeo.com/1167430828#t=7201s) Yes, sir [2:00:01](https://vimeo.com/1167430828#t=7201s) ... I just love... I, I appreciate you. I know you're very, um, you know, good at your business and, and good at that. But I would just tell you, you're looking at the macro level. Uh, Georgians at the micro level, it, it absolutely $5,000 means that you can either qualify or you, you can't make the down payment work. I mean, you know the, you know the ratios, and you know those things. And that doesn't mean that you don't have a good business and don't deserve to be in it. But I think we have to be open to the fact that there's people in this business, isn't that true, that weren't in this business 10 years ago because of the, the, the returns have changed in, in the equity m- markets in general. [2:00:37](https://vimeo.com/1167430828#t=7237s) And, and, and by definition, if there are hundreds of thousands of, um, residential properties that are now owned by businesses, and 10 years ago they weren't, then there's less supply for, for the homeowners that wanna buy. If there's less supply, that means it costs more. To say the business doesn't affect the price, I think is, is less than, um... I won't say less than honest, but it is, it's taking not into account all the facts. Which again, doesn't say you don't have every right to be in the business. But what we're trying to strike here, and what the gentleman's trying to strike here, is some reasonable level of, of, of leveling it out, because you do have tax advantages and, and deeper pockets than, than our young families in Georgia. [2:01:19](https://vimeo.com/1167430828#t=7279s) I mean... So I, I'd just love to get with you. I, I appreciate that. [2:01:22](https://vimeo.com/1167430828#t=7282s) I, I'd be happy, happy to exchange information. [2:01:23](https://vimeo.com/1167430828#t=7283s) And, you know, you'll make- [2:01:23](https://vimeo.com/1167430828#t=7283s) Yes, sir [2:01:23](https://vimeo.com/1167430828#t=7283s) ... you'll make me better with the knowledge. You'll do that, and I, I hope I can- [2:01:26](https://vimeo.com/1167430828#t=7286s) That's all right. I'm sure- [2:01:27](https://vimeo.com/1167430828#t=7287s) ... present to you some things- [2:01:28](https://vimeo.com/1167430828#t=7288s) ... there's something I can learn from you as well [2:01:29](https://vimeo.com/1167430828#t=7289s) ... that, that means something in District 49. [2:01:30](https://vimeo.com/1167430828#t=7290s) Well, I- [2:01:31](https://vimeo.com/1167430828#t=7291s) Thank you very much [2:01:31](https://vimeo.com/1167430828#t=7291s) ... I assure you I'll follow up with you. [2:01:33](https://vimeo.com/1167430828#t=7293s) Yes, sir. [2:01:33](https://vimeo.com/1167430828#t=7293s) Chairman Martin. [2:01:33](https://vimeo.com/1167430828#t=7293s) Thank you. [2:01:34](https://vimeo.com/1167430828#t=7294s) Thank you. [2:01:34](https://vimeo.com/1167430828#t=7294s) All right. We'll let y'all get to offline. We've got one more. Thank you, Mr. Iza. A- appreciate it. [2:01:39](https://vimeo.com/1167430828#t=7299s) Yes, sir. Thank you, Mr. Chairman. [2:01:40](https://vimeo.com/1167430828#t=7300s) One more speaker here, and that's, uh, Mr. Owens. [2:01:43](https://vimeo.com/1167430828#t=7303s) Good morning, Mr. Chairman, the members of the committee. Uh, I don't wanna repeat a bunch of what you've already heard, so I'm gonna s- so I'm gonna go f- around a little bit. Um, maximum investor ownership ceased in 2017. The numbers have actually gone down since then, since 2017. Uh, it's not 30%, as was just stated before. It's about 4%, the share of homes, uh, that are, uh, rental. Uh, the vast majority of the rental homes are actually mom and pops, not investor-owned. [2:02:17](https://vimeo.com/1167430828#t=7337s) Investor-owned, about 4%. This is data from AEI, from Georgia Public Policy Foundation, from Freddie Mac, all reputable sources. If you remove institutional investors in the manner that this bill is seeking, the only thing it does is, uh, immediately cause divestiture, immediately increase rents, immediately tell people, for instance, that have mobile positions, people in the military, "We don't want you," because by definition, those folks would not have a place. [2:02:49](https://vimeo.com/1167430828#t=7369s) Uh, many young people nowadays do not wanna own a home. Many old people now- nowadays do not wanna own a home. They don't want the, uh, the added cost, the added uncertainty that comes with it. [2:03:03](https://vimeo.com/1167430828#t=7383s) I have not talked to a single business in this space who views the 100% assessed value as anything other than automatically leaving the State of Georgia. The numbers just don't work. And Chairman Martin, I hear your questions, and there's, there's plenty, uh, of opportunity for folks to talk in the industry with members of the legislature. But when arbitrarily, uh, a number is made, they divest. They... You cannot run the business with what's in this bill. Um, it's just that, it's just that simple. [2:03:35](https://vimeo.com/1167430828#t=7415s) And keep in mind, once again, these folks don't have the benefit of homestead exemption. They're paying full tax. So as we're talking about local governments, they're the beneficiary of these properties paying full tax as compared to the properties that, uh, have homestead. Finally, I wanna talk a little bit like a lawyer. These bills are absolutely unconstitutional. They violate numerous provisions of the Georgia Constitution and the Federal Constitution. Let's start with interstate commerce. [2:04:05](https://vimeo.com/1167430828#t=7445s) Let's start with federal preemption. Absolutely violates due process equal protection under the Federal Constitution, takings under the Georgia Constitution and Federal Constitution. Uniform taxation is currently found in the Georgia Constitution. Uh, you know, we, we all talk about the Georgia Constitution. Folks in the legislature know it more than anyone else in the state. The very beginning of our Georgia Constitution talks about property. These arbitrary limits absolutely violate our own state constitution. [2:04:41](https://vimeo.com/1167430828#t=7481s) I, I don't wanna take more of your time. I greatly appreciate all the time that's already been permitted. Um, these... There are sound discussions, arguments, positions for folks to get together to look at issues. This bill isn't it. Thank you very much for your time. [2:04:55](https://vimeo.com/1167430828#t=7495s) All right. Thank you, Mr. Owens. Appreciate that. Uh, any last words? [2:04:59](https://vimeo.com/1167430828#t=7499s) Yes. [2:05:00](https://vimeo.com/1167430828#t=7500s) Yes, sir. [2:05:00](https://vimeo.com/1167430828#t=7500s) Thank you. Thank you for, Committee, for, for, for hearing about, hearing my bill. I just wanted to, uh, just reiterate, this is pretty much a David-Goliath story. Uh, this is our constituents against these huge private equity companies buying up our land. Just like he had said, one of the legislators' duties is to protect our Georgia land. Um, I'll, I'll also say they, they're driving up costs because I know for a fact- When they buy these subdivisions, this land, it'll never be fee simple again. It's always gonna be rental. [2:05:31](https://vimeo.com/1167430828#t=7531s) Um, and so they'll overpay for this land. I know for a fact they do that, and so that's been driving up costs on, on lots in Georgia. And I have a lot of builders come to me, uh, that say they can't compete now because they're buying up these h- these subdivisions for, for rental. Um, the small mom-and-pop builders, uh, are, are against this. I've talked to a lot of them. Now, I know they represent the small ones and the big ones. The Pulte Homes and all those, they love building these things because they're, you know, get paid a lot because these companies have a massive amount of money. [2:06:07](https://vimeo.com/1167430828#t=7567s) Um, but at the end of the day, uh, we just need to make sure we, we try to help our constituents compete and, and be able to be fee simple houses. I don't think anybody says, "Wow, I would love to be a renter for the rest of my life." Um, if you look at any socialist country, uh, Britain for instance, they're all rental. Uh, you can't own a house there unless you've been passed down, uh, the crown, and private equity owns all the flats and all the houses in, in all these socialist countries. So if we wanna see, uh, our country change, uh, wipe out the middle class and stop fee simple houses. [2:06:42](https://vimeo.com/1167430828#t=7602s) And then also, um, Georgia is number one on the hit list for these h- these fee simple companies. They're not building houses in, uh, Podunk, B- Nebraska or in Montana. They're hitting Georgia and Texas and Nevada. Um, so we're ground zero for this. It's not happening a lot of times in other states. Thank you. Thank you for hearing me. [2:07:04](https://vimeo.com/1167430828#t=7624s) Thank you, Representative McCollum. All right, this is first hearing. You had two. The other one was a CA, so we may just move on since we've gone over an hour, and we've got one more bill. Got Representative Scott- [2:07:15](https://vimeo.com/1167430828#t=7635s) Thank you [2:07:15](https://vimeo.com/1167430828#t=7635s) ... and, uh, Clark in the back. Excuse me, David. Um, come on up, Representative s- uh, Clark. Thank you, Mr. McCollum. [2:07:24](https://vimeo.com/1167430828#t=7644s) Thank you. [2:07:33](https://vimeo.com/1167430828#t=7653s) Okay, Representative Clark, you got House Bill 1102. [2:07:39](https://vimeo.com/1167430828#t=7659s) I do. Thank you, Chairman, and, uh, colleagues. I have, uh, LC443298, should be the bill. And that's House Bill 1102. And this, uh, bill is, um, simply just saying those at 60 year, 60 years old and above, that if they cannot pay their property tax, then it would become a lien. And so when the house, when they pass away and it's passed on to in their will or when it's sold, um, that's when it'll be collected, the, uh, property tax. [2:08:13](https://vimeo.com/1167430828#t=7693s) And, um, I mean, I know we have in the House the property tax bill to eliminate it in the next six years, but I know also with seniors, they are getting crushed, um, across this state. And I know I've got more calls in the 12 years I've been here in the House, uh, from seniors saying, "Hey, if my property tax goes up one more time, I could lose my forever home." And, um, most seniors are on fixed incomes when they retire. And I think that this would be a great step forward, um, to at least protect them for now to not lose their home. [2:08:44](https://vimeo.com/1167430828#t=7724s) All right. Thank you, Representative Clark. Any member of the committee have any questions, any kind? This is first hearing on this, uh, and you'll be notified when the next hearing comes. So any comments, questions, anybody? Thank you, Representative. We appreciate it, and you'll be notified when the next hearing comes. [2:09:00](https://vimeo.com/1167430828#t=7740s) Yep. Thank you. [2:09:00](https://vimeo.com/1167430828#t=7740s) All right. This, uh, Ad Valorem Tax Subcommittee is adjourned. [2:11:18](https://vimeo.com/1167430828#t=7878s) Okay, ladies and gentlemen, I'll call the Sales Tax Subcommittee of the House Ways and Means Committee to order. We have three items on the agenda, two for the first hearing, one that would be available, uh, for action, uh, should the author make a good presentation. Um, HB, we'll go first to HB1209. Uh, Chairman Ron Stephens from the 164th, tell us briefly about your, uh, presentation, or about your proposition. [2:11:43](https://vimeo.com/1167430828#t=7903s) Thank you, Mr. Chairman, members of committee. This one we heard in the subcommittee earlier. It is a sales tax refund if the, uh, property, uh, down in the area. Similar to the income tax, um, income tax credit that we had before. Uh, you get it after the property is built on a refund basis of sales tax, primarily to get the full, uh, benefit of the, uh, massive, um, structures there. And this is shared by the locals, Mr. [2:12:14](https://vimeo.com/1167430828#t=7934s) Chairman. This would be half by the state, half by the locals, and that is the presentation. [2:12:22](https://vimeo.com/1167430828#t=7942s) The- [2:12:23](https://vimeo.com/1167430828#t=7943s) The cap is seven million [2:12:24](https://vimeo.com/1167430828#t=7944s) ... the cap is seven million. That is a combination of state and local tax, so- [2:12:27](https://vimeo.com/1167430828#t=7947s) Yes, sir [2:12:27](https://vimeo.com/1167430828#t=7947s) ... yes, sir. Uh, any, any questions to this, um, subcommittee members? Any, any questions? I, I see no questions. We have this available, uh, for action. What's the pleasure? Let me, uh, sound the LC. We have LC 5903 59 S. Um, it's available for action. What's the pleasure of the subcommittee on 12, HB1209? Do pass. Have a motion to do pass. It, and a second, is there a discussion? Discussion on the motion? Motion is, uh, let's move forward to full committee with due pass recommendation. [2:12:59](https://vimeo.com/1167430828#t=7979s) All those in favor say aye. Aye. Any opposed, no. You're on to full committee, uh, Chairman Stephens. We're gonna go next to, um, Representative Huddleston, 1261, HB1261. [2:13:17](https://vimeo.com/1167430828#t=7997s) Representative Huddleston, we're, we're gonna beat, uh, Chairman Smith. We're not gonna be here an hour, right? [2:13:22](https://vimeo.com/1167430828#t=8002s) Yes, sir. We don't want- [2:13:23](https://vimeo.com/1167430828#t=8003s) You're gonna tell us about your proposition, uh- [2:13:25](https://vimeo.com/1167430828#t=8005s) I'm gonna make- [2:13:26](https://vimeo.com/1167430828#t=8006s) ... H- HB1261 LC 560550. [2:13:30](https://vimeo.com/1167430828#t=8010s) That is correct, Mr. Chairman. Thank you all to the committee, and thank you, Mr. Chairman. [2:13:34](https://vimeo.com/1167430828#t=8014s) Basically, uh, House Bill 1261, uh, what this speaks upon today is the, um, uh, level one free port tax exemption. Quickly what that is, uh, set back in code in the mid-'80s and, and amended a time two over the years. Basically, this allows manufacturing and production businesses with inventory that is in planning for transit from one year to the next to be exempt from the taxes. Um, real quickly, basically what this does with, um, those entities, allows them to go to their local county municipality to get approval from the electors for whatever percentage of exemption that they negotiate and agree upon. [2:14:14](https://vimeo.com/1167430828#t=8054s) What we're trying to do today within this, within this piece of legislation is to add electrical utilities, uh, to, to this to where it allows their inventory that sits on the yard to be, uh, uh, spoken upon within their county mus- municipalities for the percentage of exemption. Uh, basically this pertains to all the, uh, products that is used within line construction. Uh, and, and in lines 102 to 108, it pretty much explains that. Uh, basically any inventory that is, um, in the infrastructure of, of the, the distribution system itself would be exempt from this, and you pay basically ad valorem within that. [2:14:55](https://vimeo.com/1167430828#t=8095s) Very quickly why this is important. Uh, we all heard in the past reliability of service or, you know, of reliability of power to our customers. We've had major storms over the years. And, and basically in reference to that, of 36 years of me working with a care- uh, EMC, uh, I, I was over procurement and of materials that I was required to keep a certain level of inventories in stock to basically for storm restoration. So over the period of years, that there is a value of dollars that is paid in taxes. One of the instances that I've used with a few that I've had conversation with is, uh, within our distribution system, we had a c- company that had German-based equipment. [2:15:34](https://vimeo.com/1167430828#t=8134s) It's basically different within voltage than what we have here, uh, from 60 hertz to 50 hertz. Basically, uh, within that, uh, reliability of service of that company, we was required to obtain a transformer on the yard at all times for in case anything happened to the transformer that was there at their place of business. So you get to thinking basically over a period of time, 40% the value of that transformer times the 2.75 that we paid locally there, over a period of about nine or 10 years, you would actually pay as much as in taxes as in the cost of the transformer. [2:16:04](https://vimeo.com/1167430828#t=8164s) In, in the interest of the hours, Lane, not to cut the residents off- [2:16:06](https://vimeo.com/1167430828#t=8166s) Yes, sir [2:16:06](https://vimeo.com/1167430828#t=8166s) ... but would you say this would, uh, be good for the ratepayer and drive cost out of the electricity supply chain? [2:16:12](https://vimeo.com/1167430828#t=8172s) Absolutely. My, my last, my last conversation was basically this would be a savings to the ratepayer, but also the reliability of service of the customer. [2:16:20](https://vimeo.com/1167430828#t=8180s) Just trying to help you if I can. [2:16:21](https://vimeo.com/1167430828#t=8181s) Thank you, sir. [2:16:22](https://vimeo.com/1167430828#t=8182s) You had a question from, uh, Representative Frye down here. [2:16:26](https://vimeo.com/1167430828#t=8186s) Thank you. Thank you, Mr. Chair. To be clear, we want to make sure that this only applies to our EMCs and Georgia Power that are w- having equipment sit on the yard. So if you ha- if you order a bunch of that equipment and it's owned by a private company on their lot, but it hasn't been yet installed or, like this says, uh, incorporated into the operating electrical generation facilities, that it's not gonna count for those guys. It only applies to our local power providers. [2:16:57](https://vimeo.com/1167430828#t=8217s) That is correct. It's your utilities with inventory that is sitting on the yard, but as they use that and goes on the infrastructure line, that sets it differently. But that is correct. Thank you. [2:17:05](https://vimeo.com/1167430828#t=8225s) Thank you very much. [2:17:06](https://vimeo.com/1167430828#t=8226s) Uh, ownership, I believe, is the key, is what you were after, right, Representative Frye? The ownership of the- [2:17:11](https://vimeo.com/1167430828#t=8231s) Just make sure that we're not, uh, piling on our tax exemption- [2:17:15](https://vimeo.com/1167430828#t=8235s) No [2:17:15](https://vimeo.com/1167430828#t=8235s) ... of, uh, current facilities being built all over the state. [2:17:19](https://vimeo.com/1167430828#t=8239s) No. [2:17:19](https://vimeo.com/1167430828#t=8239s) That's right. [2:17:20](https://vimeo.com/1167430828#t=8240s) No, sir. It's... [2:17:23](https://vimeo.com/1167430828#t=8243s) Are, are there any further questions? [2:17:24](https://vimeo.com/1167430828#t=8244s) Good bill. [2:17:25](https://vimeo.com/1167430828#t=8245s) Um, Jason Bragg wants to add something quickly. [2:17:31](https://vimeo.com/1167430828#t=8251s) I, I tried to speak fast. Yes, sir. Thank you, Mr. Chair, members of the committee, Jason Bragg- [2:17:36](https://vimeo.com/1167430828#t=8256s) And that's good [2:17:36](https://vimeo.com/1167430828#t=8256s) ... Georgia EMC. Yes, sir. Um, just wanted to thank Representative Huddleston for bringing this bill. I thank Representative Williamson. Hit the nail on the head on that. This is a bill that promotes electric re- reliability in our state, and also as nonprofit cooperatives, those savings are passed directly on to our members. We've seen transformers increase in price 70 to 100%. Material lead times have gone from months to years. And we're really having to keep that inventory on our yards to make sure that we're prepared for an emergency and also meet the needs of economic growth. So with that, Mr. Chairman, urge the committee to favorably, uh, support the bill. [2:18:08](https://vimeo.com/1167430828#t=8288s) You, you have no questions, sir. [2:18:10](https://vimeo.com/1167430828#t=8290s) Okay. [2:18:10](https://vimeo.com/1167430828#t=8290s) Um, th- there are no further questions. Th- this is the first hearing of the bill. [2:18:14](https://vimeo.com/1167430828#t=8294s) Yes, sir. [2:18:14](https://vimeo.com/1167430828#t=8294s) I just want to confirm, uh, Revenue is around here somewhere. I saw them. Um, but, uh, I know some of our utilities are centrally assessed, and you, you guys will be able to keep up with this. It won't be a problem. Where's Revenue? Anyway, if it is a problem, get with the author, because this looks like a good thing for the ratepayer. If there's nothing further, we'll have you back when the chairman's ready. [2:18:34](https://vimeo.com/1167430828#t=8314s) Hey, thank you very, thank you very much. [2:18:35](https://vimeo.com/1167430828#t=8315s) Thank you, Representative Huddleston. We're gonna move now to, uh, HB 1111. And, uh, if the committee doesn't object, we're gonna allow, uh, Representative Leverett to come before us and spread his wisdom. Representative, tell us about your, um, your proposition. Do we have a sub for that, or are we working off the original? Ladies and gentlemen, we're working off, uh, L- LC47-3887. Yes, sir. [2:19:04](https://vimeo.com/1167430828#t=8344s) Thank you, Mr. Chairman and members of the committee. As, uh, the chairman mentioned earlier, I understand the hour is late, so I will try to be very brief in my comments. So this, this is a bill that really arose out of a situation I have in my home county where we have a local public authority hospital that is a great little hospital. It is essential, I think, to quality of life in our community, but they have a tremendous amount of uncompensated care that they are forced to fund. In the past, the county has, uh, assessed a millage to help defray some of those costs, and it's been crucial to the continued success and really existence of that hospital. [2:19:37](https://vimeo.com/1167430828#t=8377s) They were considering doing the same again, but the, the- That they, uh, actually I was going to do a local bill to call a referendum just straw poll on the question. But once that word got out, they ... I, I, my s- belief is they heard from, uh, property tax owners who I think basically said, either rightly or wrongly, they did not feel that solely property tax owners should be responsible for funding the cost of trying to fill that hole. That should be d- diffused a little more broadly. And whether they're right or wrong, that, that was the net result, and the, the, the referendum and the, and sort of the initiative of using property tax revenue is not going forward. [2:20:16](https://vimeo.com/1167430828#t=8416s) This would be an alternative that could be spread out beyond just those who own property. Um, and so it's based on the s- the SPLOST, the Special Purpose Local Option Sales Tax. Most of the language in here that is as far as process and procedure and imposition and levy and collection and administration is premised, uh, on that statute and just tracks the language of that statute. Um, in the definition section, we try to confirm that it, it is for, uh, operations and for capital outlay, uh, projects for healthcare enhancement purposes, which is defined, as I say, to be, uh, capital outlay or, um, MNO for hospitals, and that's limited to public authority hospitals or non-profit hospitals. [2:20:59](https://vimeo.com/1167430828#t=8459s) It does not include for-profit hospitals. Um, and so that, that's basically the bill, Mr. Chairman. I think it just provides an alternative means of, uh, for local communities to try to support their local public authority hospital if the county commission deems it to be appropriate. Um, that, that process on Special Purpose Local Option Sales Tax has to originate with the county commission. The, the, the authority cannot call the election. It would still be up to the county commission, so we've got sort of a, a, I think, a control or a check. It'd still have to be a public will. [2:21:30](https://vimeo.com/1167430828#t=8490s) And then, of course, the tax can only be imposed if it's passed in a referendum. And, and the first section also, uh, confirms that this, uh, tax is not subject to that 2% limit. Just, just like SPLOST and ESPLOST are excluded from this, this would be excluded from it, too. So that's the, that's the bill, Mr. Chairman. I'm glad to answer any questions. [2:21:47](https://vimeo.com/1167430828#t=8507s) Is it ta- is it not true that as a taxpayer in Fulton County, some, some of us in Fulton and DeKalb have been paying property tax to support a hospital for a long time? [2:21:56](https://vimeo.com/1167430828#t=8516s) I ... Not being a resident of, of Fulton, I would assume the chairman ... I, I understand the re- the chairman is. I'm, I'm, I t- I would say yes. [2:22:02](https://vimeo.com/1167430828#t=8522s) Yes, sir. Um, may perhaps you would wanna check with our county commission and see if they'd be interested in an alternative method. Uh, Representative Frye. [2:22:11](https://vimeo.com/1167430828#t=8531s) Thank you, Mr. Chair. Um, I absolutely appreciate this, Mr. Chair, and the idea that it is left up to the locals. I do have a little bit of concern, um, with the idea that they could, a nonprofit organization could buy land and sit on that land and not ... and maybe have a 10-year plan, but it, that piece of property specifically not necessarily being able to be on the tax rolls and them actually receiving further tax benefit just by, from the purchase of the property. [2:22:46](https://vimeo.com/1167430828#t=8566s) So, but since it's a local decision ... But I do know that's not gonna be on the ballot, but that is a concern that I would have in something like this. [2:22:55](https://vimeo.com/1167430828#t=8575s) Well, if I could, may I address that briefly, Mr. Chairman? I, I, I- [2:22:58](https://vimeo.com/1167430828#t=8578s) Uh, we're at a first hearing, so you'll be able to get with the gentleman, but yes, absolutely. [2:23:02](https://vimeo.com/1167430828#t=8582s) Okay. [2:23:03](https://vimeo.com/1167430828#t=8583s) No, I, I think it's important for you ... Yeah, uh, you're gonna have l- later to really work it out, but please, yes sir. [2:23:08](https://vimeo.com/1167430828#t=8588s) Yeah, I, I would just say I think that could be dealt with in the acting resolution. [2:23:14](https://vimeo.com/1167430828#t=8594s) See, I can give a quick answer. [2:23:15](https://vimeo.com/1167430828#t=8595s) Yeah. Yes, sir. And, and we, we ... and we're not even paying you by the minute, sir. Um, Ch- uh, the chairman of the committee, uh, Chairman Blackmon. [2:23:22](https://vimeo.com/1167430828#t=8602s) Mr. Chairman. Thank you, Mr. Chairman. Um, we've talked a good bit about this, but to, to, to the gentleman's, uh, point, I, I may have already talked about this, but this would just be a part of the menu available to the locals. [2:23:37](https://vimeo.com/1167430828#t=8617s) That's correct. [2:23:37](https://vimeo.com/1167430828#t=8617s) It's, it's not an increase. It's just part of the menu that they would have access to, uh, a- as a penny that they could levy if they chose to do that. [2:23:47](https://vimeo.com/1167430828#t=8627s) That, that's correct, Mr. Chairman. It's just we're, we're giving a- another option, another local option sales tax that they could, the locals could, that the local commission could authorize a vote on to determine if the people in that community wanted to impose that sales tax. [2:24:01](https://vimeo.com/1167430828#t=8641s) Now, just a quick follow-up, Mr. Chairman. Now, if they wanted to, they could put those dollars into a SPLOST referendum, or I mean, they would not have to use a, a separate penny, right? I mean, if, if the county wanted to, to do something capital-wise for the hospital or wanted to do something that they could, they, they could pull those dollars in. I mean, they could still do that without leveraging an additional penny for specifically. [2:24:31](https://vimeo.com/1167430828#t=8671s) Uh, uh, actually, I'm, I'm ... I have never understood that a regular SPLOST was eligible for use in a hospital that was owned by a hospital authority, but I would think the chairman knows better than I do. So my assumption is yes. [2:24:43](https://vimeo.com/1167430828#t=8683s) Seems like it has happened before, but there may be just certain circumstances and special circumstances, but I was just curious. Thank you, Mr. Chairman. [2:24:50](https://vimeo.com/1167430828#t=8690s) Thank you. [2:24:51](https://vimeo.com/1167430828#t=8691s) Are there further questions? Um- [2:24:53](https://vimeo.com/1167430828#t=8693s) I, I would note, Mr. Chairman, I believe there's a letter in your folder of support on the legislation, which I'm sure you will all read voraciously. [2:24:59](https://vimeo.com/1167430828#t=8699s) While you were gone, that was withdrawn. No, I'm just kidding. I'm just a little bit light in the afternoon. No, there, uh, you have a, a letter I believe on our, um, on our tablet for that. [2:25:11](https://vimeo.com/1167430828#t=8711s) Okay. [2:25:11](https://vimeo.com/1167430828#t=8711s) Did you have a ... Where's my ... Or we have, uh, well, if you would s- hang with us a second here, we have a, a speaker, uh, Tim Kibler. Tim? [2:25:19](https://vimeo.com/1167430828#t=8719s) Thank you, Mr. Chairman. Tim Kibler with the Georgia Alliance of Community Hospitals. Uh, the letter is from us. We very much support this legislation. We have a handful of, uh, uh, hospitals that are facing extreme financial vulner- vulnerability, and this would be probably the best way for the local government and local, uh, citizens to ensure that their hospital continues to, uh, serve their community. I'd be glad to take any questions if there are any. [2:25:48](https://vimeo.com/1167430828#t=8748s) You have a, a light here, uh, Chairman Williams [2:25:50](https://vimeo.com/1167430828#t=8750s) Yeah. W- w- very quickly, I s- I, I do support this measure, but is it not true, to Chairman Blackmon's fur- uh, earlier point, that this could be part of a SPLOST? I know that Walton County had a SPLOST bond. At that time it was a community-owned hospital, and this was 25, 30 years ago, and, and it was very successful, and is it not true- [2:26:12](https://vimeo.com/1167430828#t=8772s) Mr. Chairman, I don't know the details of that specific SPLOST. It is my understanding that most of the SPLOSTs that have been done, and have included something for the hospital, it has been, uh, uh, reduction of bonded indebtedness- [2:26:24](https://vimeo.com/1167430828#t=8784s) I- [2:26:24](https://vimeo.com/1167430828#t=8784s) ... of the hospital, rather than capital improvements, which is- [2:26:27](https://vimeo.com/1167430828#t=8787s) That's my- [2:26:27](https://vimeo.com/1167430828#t=8787s) ... included in, uh, Representative Buckner's- [2:26:30](https://vimeo.com/1167430828#t=8790s) It's clear. It's my remembrance- [2:26:32](https://vimeo.com/1167430828#t=8792s) Okay [2:26:32](https://vimeo.com/1167430828#t=8792s) ... but be that matter what it may, that we did a $5 million, um, SPLOST many years ago, and it was suc- su- successful for our then-owned community hospital. [2:26:45](https://vimeo.com/1167430828#t=8805s) Yeah, and there's, and I think the letter, uh- [2:26:46](https://vimeo.com/1167430828#t=8806s) But regardless, we support this measure as well. Thank you. [2:26:48](https://vimeo.com/1167430828#t=8808s) Several other, uh, local areas that have done something for bonded indebtedness. [2:26:54](https://vimeo.com/1167430828#t=8814s) Thank you. [2:26:55](https://vimeo.com/1167430828#t=8815s) One other, if I could make one other comment in response to that exchange, Mr. Chairman. I, I don't believe that a SPLOST is eligible for use to provide maintenance and operation money for a hospital. [2:27:05](https://vimeo.com/1167430828#t=8825s) M- M&O may be the difference. [2:27:08](https://vimeo.com/1167430828#t=8828s) It is not. [2:27:08](https://vimeo.com/1167430828#t=8828s) And this would. [2:27:09](https://vimeo.com/1167430828#t=8829s) Yes. [2:27:09](https://vimeo.com/1167430828#t=8829s) Because that's u- that's really what most local hospitals need. They don't need to build m- well, they could always use to build more stuff, but they really desperately need it to provide, to, to fill the hole that uncompensated care provides. So that's M&O. [2:27:21](https://vimeo.com/1167430828#t=8841s) That was true. [2:27:22](https://vimeo.com/1167430828#t=8842s) Yes, sir. And there, there are no further, uh, no further questions. Uh, thank the gentleman for, um, providing this. There is the letter and the, the bill, uh, in the packet. If there's nothing further, thank you very much, sir. I have nothing further on the sales tax agenda. [2:27:36](https://vimeo.com/1167430828#t=8856s) Thank you, Mr. Chairman. [2:27:37](https://vimeo.com/1167430828#t=8857s) Chairman, do you have anything? [2:27:38](https://vimeo.com/1167430828#t=8858s) That's very good. [2:27:39](https://vimeo.com/1167430828#t=8859s) If there's, uh, Chairman has nothing. If there's, um, anything anyone would like to bring before the subcommittee? I see nothing. If there is, uh, nothing further before the subcommittee, we'll stand to adjourn without objection. I hear no objection. We're adjourned. [2:28:39](https://vimeo.com/1167430828#t=8919s) All right. We're going to call this meeting of the, um, Ways and Means Tax Reform Subcommittee to order. Um, we do have an addition to the, to the bill today, or to the agenda today. It'll be HB 275. Chairman Williamson, if you can start with that. If you can just want to present from right there, that'd be great. [2:28:59](https://vimeo.com/1167430828#t=8939s) Uh, thank you, Mr. Chairman. So, uh, bringing before you today the committee's consideration, House Bill 275 by committee substitute LC339880S. First thing I'd like to do is direct the members' attention to the tablet. It is under the Tax Reform Committee, uh, notes, uh, House Bill 275. If you'd click on that. There's two PDFs. I'm giving everybody a chance to catch up. Uh, the, the PDF, uh, the, say an example, notice of assessment, that's what we're, this bill does. [2:29:34](https://vimeo.com/1167430828#t=8974s) I think all of us can agree that there's been a lot of confusion, um, uh, in, uh, the way our assessments come out. They're sometimes, um, ambiguous, but there's been a, um... This measure before us today has come, uh, comes with the backing of ACCG and the, um, Association of... All right. Help me, Dante. What's y'all's association? [2:29:59](https://vimeo.com/1167430828#t=8999s) Georgia Association of Assessing Officials. [2:30:02](https://vimeo.com/1167430828#t=9002s) Ge- Georgia Association of Assessing Officials. And, um, in particular, I want to, um, thank James Stokes from Paulding County and, uh, Tommy Knight from the greatest, um, uh, county in Georgia, Walton County, uh, for their efforts on this. But if you'll see, this proposed, the, the bill before us puts the metrics in place to be able to have this, uh, much clearer and easier to understand, uh, assessment notice. So if you'll just take a minute and let your, uh... [2:30:34](https://vimeo.com/1167430828#t=9034s) Take a look in the right-hand side. It shows the notice of the, of, of the y- year in which it's been assessed, notice of 20 si- 2026 property value, date of the notice, appeal deadline. It's very clear. It drops down. It very clearly states that the, the assessment in this example is 700, current value is 725,000. It shows you the previous year's value. Very clearly worded. On the left-hand side, uh, the top left-hand, uh, part is reserved by the United States Postal Service to make sure these things get mailed properly. [2:31:11](https://vimeo.com/1167430828#t=9071s) Uh, drops down, got the ad, below the address, shows the exemptions applied to the bill. Um, and rather than getting confused on what the, um, estimated tax bill would be, it simply takes the, uh, current assessment in place before the new budget for that year is done, m- multiplies it times the z- uh, the milla- the applicable millage rate times the exemptions that are currently, that, that are, be applied to that particular piece of property. In this example, it says that, um, tax savings due to the exemptions that are applied would be $1,000. [2:31:48](https://vimeo.com/1167430828#t=9108s) Uh, we never know exactly how much the bill's gonna be until that levying a- authority, uh, does their budget, revises their millage rate if needed, and comes up with a final, um, um, bill due. Uh, so happy to take any questions, but I think you'll find that it's, uh, clear, easy to understand. It'll help, uh, eliminate a lot of confusion when, um, property owners across the State of Georgia open that little assessment envelope. [2:32:19](https://vimeo.com/1167430828#t=9139s) Thank you, Chairman Williamson, for the presentation. Do any members of the committee have questions? Chairman Blackmon. [2:32:28](https://vimeo.com/1167430828#t=9148s) I just, I wanted to thank the assessors for putting in some extra time to create something and, uh, that is, is very taxpayer-friendly here. And, um, I know we have a few of them here, but, um, if the assessors would, would mind standing up real quick. I know, I didn't know if they're signed up to speak, but- [2:32:46](https://vimeo.com/1167430828#t=9166s) They are [2:32:46](https://vimeo.com/1167430828#t=9166s) ... all right. So, uh, the one in the middle happens to be our tax assessor, and, uh, she, she's going to kill me for acknowledging her here today. But I want to thank Ms. Clark for driving all the way up to be here, uh, to, for this committee meeting here today. I don't know, have you been to the, been to a committee meeting before? First one, so thank you very much. It's good to see you, and appreciate all you do for us back home. And same goes for each and every one of you tax assessors. I know it's a thankless job. [2:33:17](https://vimeo.com/1167430828#t=9197s) It is. [2:33:17](https://vimeo.com/1167430828#t=9197s) Thank you. [2:33:18](https://vimeo.com/1167430828#t=9198s) Thank you. Thank you, Chairman. Uh, any other questions from the committee? Seeing none, there are some that have signed up to speak to this. Um, if, uh, Dante Handle and Nathan Corbett, if you could come up and maybe if you got something to say or introduce others, that'd be great, too. [2:33:37](https://vimeo.com/1167430828#t=9217s) Good afternoon, Chairman Newton, members of the committee. I'm Dante Handle with the Southern Group, representing GAAL, uh, joined by Nathan Corbett with ACCG. Uh, glad to, I guess, answer questions if there are any on the first couple sections of the bill. But, um, I think that, uh, Representative Williamson's explanation was strong. And, you know, the goal here is to simplify things for the taxpayer, refocus the notice of assessment on value and the exemptions that are actually being applied for that taxpayer, and really just make it easier for them to understand and make it more taxpayer-friendly. [2:34:10](https://vimeo.com/1167430828#t=9250s) Uh, glad to turn it over to Nathan or answer questions if y'all have any. [2:34:13](https://vimeo.com/1167430828#t=9253s) And just again, ACCG fully supports this legislation. It is, uh, one of our legislative priorities for the session, and we thank the chairman for bringing it. [2:34:23](https://vimeo.com/1167430828#t=9263s) Thank you. I appreciate the, uh, y'all's example is very, does make it very clear. I do see a couple of things just if you, from your example. It did have a reason number five, reason number six. Is that just blanks, you can put up to six reasons that- [2:34:34](https://vimeo.com/1167430828#t=9274s) Yes, sir [2:34:34](https://vimeo.com/1167430828#t=9274s) ... the bill was affected. [2:34:36](https://vimeo.com/1167430828#t=9276s) Those placeholders. [2:34:36](https://vimeo.com/1167430828#t=9276s) So, okay. Thank you. Um, yeah. Did you have others that were, that like, would like to speak? [2:34:41](https://vimeo.com/1167430828#t=9281s) Uh, yes, sir. Uh, James Stokes is the Paulding County Chief Appraiser, and Tommy Knight's the Chief Appraiser in Walton County. [2:34:46](https://vimeo.com/1167430828#t=9286s) All right. Thank you. Y'all- [2:34:47](https://vimeo.com/1167430828#t=9287s) Thank you [2:34:47](https://vimeo.com/1167430828#t=9287s) ... come on up and introduce yourselves. We look forward to hearing from you. [2:34:51](https://vimeo.com/1167430828#t=9291s) Yeah, my name is James Stokes, the Chief Appraiser in Paulding County. I'm also, uh, the Georgia Association of Assessing Officials Legislative Director. I've got Tommy Knight, the Chief Appraiser in, uh, uh, Walton County, and he's also in the executive board. Uh, our organization has worked for weeks, uh, if not months, on this bill really to try to get, uh, the questions that we receive at the local level, uh, try to get as many of those questions, uh, addressed and to really keep the notice of assessment in a non-technical, um, aspect where more people can generally understand it. [2:35:29](https://vimeo.com/1167430828#t=9329s) Uh, we have a list of questions that we go through every single year with our property owners, and our goal was to try to eliminate as many questions as possible and get property owners the information that they really need. I'd be glad to answer, uh, any questions that you may have. [2:35:46](https://vimeo.com/1167430828#t=9346s) Any questions from the committee? Thank you, sir. [2:35:49](https://vimeo.com/1167430828#t=9349s) Thank you. [2:35:49](https://vimeo.com/1167430828#t=9349s) Thank you for your team's work. [2:35:52](https://vimeo.com/1167430828#t=9352s) I just wanna add real quick. [2:35:53](https://vimeo.com/1167430828#t=9353s) Please do. [2:35:53](https://vimeo.com/1167430828#t=9353s) I've been up here for about 31 years now. Yeah, I'm, I'm, I'm that old. I've been in this business too long. I wanna thank Representative Williams and Chairman Shaw for allowing us to come up here and going through this with us. I've never been in a more open environment, and we do appreciate that from our organization. Thank you. [2:36:09](https://vimeo.com/1167430828#t=9369s) Thank you. Thank you for your... Please pass along to your organization our appreciation. It, as, as the chairman said, it is a thankless job sometime, but it is a constitutional one, an important one to get things accurate. Um, s- seeing no other questions from the committee, and I don't believe there's anyone else... Are there any others that signed up, I don't believe, for this bill? Um, with that, we are in a position to, uh, hear the will of the committee. [2:36:36](https://vimeo.com/1167430828#t=9396s) Chairman Blackmon? [2:36:36](https://vimeo.com/1167430828#t=9396s) Um, um, you know, for expediency purposes, I mean, if, if, if it is the will of the committee, I, I would recommend that we, you know, waive the second hearing and, and approve this, uh, to full committee. [2:36:50](https://vimeo.com/1167430828#t=9410s) Um, is there objection from anybody on the committee? [2:36:51](https://vimeo.com/1167430828#t=9411s) But I believe the will of the chairman and the will of the committee. [2:36:55](https://vimeo.com/1167430828#t=9415s) All right. N- the, as I see no objection, we will proceed. [2:36:58](https://vimeo.com/1167430828#t=9418s) Move, move do pass. [2:36:59](https://vimeo.com/1167430828#t=9419s) We have a do pass. Is there a second? [2:37:01](https://vimeo.com/1167430828#t=9421s) Second. [2:37:02](https://vimeo.com/1167430828#t=9422s) We have a do pass and a second. Is there d- any discussion or amendments to the, to the bill suggested or offered? [2:37:08](https://vimeo.com/1167430828#t=9428s) Oh, I'm sorry. Yeah, I've got an amendment. Powell. [2:37:11](https://vimeo.com/1167430828#t=9431s) Oh. [2:37:11](https://vimeo.com/1167430828#t=9431s) I about went to sleep there. [2:37:13](https://vimeo.com/1167430828#t=9433s) Chairman. [2:37:13](https://vimeo.com/1167430828#t=9433s) Um, yes. If, uh, if it please the chairman and, uh, and the Chairman of Ways and Means, I'd like to propose a slight amendment. Uh, a- amend the substitute to HB 275, uh, LC 339880S by replacing line 134... I'm sorry. I'm gonna draw... Wait a minute. Come here and walk me through this. [2:37:40](https://vimeo.com/1167430828#t=9460s) Yeah. [2:37:40](https://vimeo.com/1167430828#t=9460s) Legislative Council's worked on this, this. Uh, go ahead. This, this, and this. [2:37:44](https://vimeo.com/1167430828#t=9464s) Read past it. [2:37:44](https://vimeo.com/1167430828#t=9464s) Okay. All right. By, uh, replacing line 134 with the following. Uh, so it would, line two would say, "Official," close pareth- uh, pare- parentheses, "If you were ineligible as of January 1st of," and then, uh, open parentheses, insert current tax year, close parentheses, "for any homestead exemption listed in this." So that would, uh, uh, go in lines two and three. I mean, I'm sorry, going, uh, right after line 134. [2:38:17](https://vimeo.com/1167430828#t=9497s) Um, and then the second, after line 147, we would insert, um, "Said chapter is further amended by repealing Code Section 48-5-306.2 relating to annual calculation and certification of estimated rollback rate in its entirety." Uh, and then section four then becomes section five. If, uh, I'd like to propose that as amendment to the bill. [2:38:46](https://vimeo.com/1167430828#t=9526s) You have to read it to them. [2:38:47](https://vimeo.com/1167430828#t=9527s) No. [2:38:51](https://vimeo.com/1167430828#t=9531s) All right, we have a proposal for, uh, an amendment to the bill. Is there, there... I heard a second. Chairman Blackmon, is there further discussion on the amendment? [2:39:01](https://vimeo.com/1167430828#t=9541s) Just to make clear, Legislative Council, you do have that in, in context for it. [2:39:04](https://vimeo.com/1167430828#t=9544s) Yes, sir. [2:39:05](https://vimeo.com/1167430828#t=9545s) Thank you. Thank you. [2:39:08](https://vimeo.com/1167430828#t=9548s) Uh, is there any other discussion on the amendment? If, if not, all in favor of the amendment say aye. [2:39:13](https://vimeo.com/1167430828#t=9553s) Aye. [2:39:13](https://vimeo.com/1167430828#t=9553s) Any opposed, no. All right, the amendment passes. We go back to the main question. Uh, with the, uh, first hearing waived, uh, rule waived on House Bill 275, LC 339880S, as amended. Uh, any, any other discussion on that? All in favor say aye. [2:39:34](https://vimeo.com/1167430828#t=9574s) Aye. [2:39:34](https://vimeo.com/1167430828#t=9574s) All opposed, no. Hearing none, the bill passes as amended. Thank you, sir. All right, we will go on to, um, uh, 932. [2:39:47](https://vimeo.com/1167430828#t=9587s) No, actually [2:40:00](https://vimeo.com/1167430828#t=9600s) not. [2:40:00](https://vimeo.com/1167430828#t=9600s) All right, we're gonna go to, uh, House Bill 942. Representative Burnough, if you have, uh, you or any others with you, please come on up either to the table or wherever you're most comfortable and, uh, present, uh, just r- if you can read your LC number, and we will, uh, we will get started. [2:40:28](https://vimeo.com/1167430828#t=9628s) Thank you, Mr. Chairman. It is LC443245. [2:40:36](https://vimeo.com/1167430828#t=9636s) All right, thank thank you. [2:40:39](https://vimeo.com/1167430828#t=9639s) Good afternoon, Mr. Chairman, members of the committee, members of the General Assembly attending the hearing, and those attending from the public. Thank you for the opportunity to appear and discuss HB 942, amending an exemption from ad valorem taxes relating to the extraterritorial presence in Clayton County of the Atlanta-owned Hartsfield-Jackson Atlanta International Airport. It is well-documented that Clayton County hosts the majority of the airport, and has lost residents te- and tax digest to the expansion of the airport over the years. [2:41:18](https://vimeo.com/1167430828#t=9678s) It is not known as w- it is not as well-known, however, that Clayton County has not in return received ad valorem taxes from the lands acquired and improvements made on such lands due to the exemption in code section 4- 48-5-41 subparagraph A1B, that resulted from an amendment made by the Georgia General Assembly in 1946, some 80 years ago. [2:41:52](https://vimeo.com/1167430828#t=9712s) That 1946 exemption was based on consideration in the developmental stages of the airport that no longer exist 80 years later. After almost a century of growth, the Atlanta-owned airport no longer needs an ad valorem tax exemption that was created 80 years ago. Now is the time to pa- r- now is the time for Clayton County to recover from this unjust enrichment created through an exemption that is more linked to the past than the present. [2:42:25](https://vimeo.com/1167430828#t=9745s) Property tax fairness reform stands as a pivotal issue for communities facing economic challenges like Clayton County. By fostering an equitable tax system, homeowners can find relief from financial strain while contributing fairly to local service requirements, with the exception that the tax burden is equitably distributed. Legislators and tax- legislators and, and stakeholders must collaborate to ensure these reforms are implemented effectively, as the state will benefit from the reform p- proposed. [2:43:00](https://vimeo.com/1167430828#t=9780s) A vibrant Clayton County would attract businesses that r- rely on air transportation in their business operations. The rainbow of economic success attributed to Hartsfield-Jackson International Airport is wide enough to share with Clayton County. Ultimately, achieving property tax fairness not only supports individual owners, but also strengthens community and political ties and promotes economic stability for all residents of Georgia. [2:43:30](https://vimeo.com/1167430828#t=9810s) The opening remarks establish the framework for HB 942, and following comments present the underlying structure for the amendment. So this would have no, um, effect on the state. Um, c- the financial impact would be, uh, for Clayton County does not have taxable or, and tax-exempt real property tax digests. [2:43:57](https://vimeo.com/1167430828#t=9837s) And so if this bill passes, um, it would be a benefit to, um, Clayton County. [2:44:09](https://vimeo.com/1167430828#t=9849s) Thank you. Uh, did you have, um... Did you wanna introduce yourself to the- [2:44:14](https://vimeo.com/1167430828#t=9854s) Thank you [2:44:14](https://vimeo.com/1167430828#t=9854s) ... those watching? [2:44:15](https://vimeo.com/1167430828#t=9855s) Yeah. Thank you, Mr. Chairman. I'm Boyd Pettit with Georgia Link Public Affairs Group, and we represent Clayton County. Just a brief couple of comments with regard to this. Think about your home county, and you pluck 4,000 acres out of the middle of it, and it, it serves a governmental purpose, no question about it, but it affects every resident of your county in terms of how their ad valorem taxes are computed. This doesn't do anything except go after the personal property where there are leases that are not necessarily a governmental purpose, and allows that then to be taxed so that Clayton County, which is providing police service, they're providing other services, there are hospitals. [2:44:58](https://vimeo.com/1167430828#t=9898s) You know, when, when we see on the news about arrests that are made at Clay- or at the airport, guess where they go? Go to Clayton County. When there are issues there that EMS responds to, guess where they come from? They come from Clayton County. When transports have to be made from the hospital, or excuse me, from the airport to the hospital, guess where they go? They go into Clayton County. So again, it's a fairness issue. And nobody's questioning the governmental purpose of the airport. Nobody's looking at taxing a landing strip. Nobody's looking at taxing a terminal building that's built. [2:45:31](https://vimeo.com/1167430828#t=9931s) But the leases that are within that are personal property. I do enough economic development work in my pract- law practice where I know that those personal properties are taxed by the individual counties, as they should be. As they should be, and that's what this is about. So I appreciate it. Thank you, Mr. Chairman, members of the committee. [2:45:49](https://vimeo.com/1167430828#t=9949s) Thank you. And if I could use your, um, legal. If you look on line 12- [2:45:55](https://vimeo.com/1167430828#t=9955s) Mm-hmm [2:45:55](https://vimeo.com/1167430828#t=9955s) ... which is just, just is the original, probably the reference that the, the, the representative made about, uh, that, that no public, real, or personal property- [2:46:04](https://vimeo.com/1167430828#t=9964s) Mm-hmm [2:46:04](https://vimeo.com/1167430828#t=9964s) ... owned by a political subdivision. And then you go over and s- and, and show that, that there is an exemption for- [2:46:10](https://vimeo.com/1167430828#t=9970s) Correct [2:46:10](https://vimeo.com/1167430828#t=9970s) ... 60% of its fair market value. [2:46:12](https://vimeo.com/1167430828#t=9972s) Correct. [2:46:12](https://vimeo.com/1167430828#t=9972s) Now, that's both real and personal, correct? [2:46:14](https://vimeo.com/1167430828#t=9974s) Correct. [2:46:15](https://vimeo.com/1167430828#t=9975s) Okay, so those- [2:46:15](https://vimeo.com/1167430828#t=9975s) That's my understanding. [2:46:16](https://vimeo.com/1167430828#t=9976s) All right. So, um, and this obviously at 4,700 acres, I believe you said, is well, well over- [2:46:22](https://vimeo.com/1167430828#t=9982s) At least 4,000 [2:46:23](https://vimeo.com/1167430828#t=9983s) ... s- um, that's in Clayton County. And certainly, as you mentioned, this is- exemption has been there for 80 years, and this is a, uh, this is not 100%. I mean, this is, uh- Not saying it goes to 100% of its assessed value, but 60%. [2:46:37](https://vimeo.com/1167430828#t=9997s) Yeah. [2:46:37](https://vimeo.com/1167430828#t=9997s) Okay. Thank you for, thank you for that. Let me see, uh, Representative Frye. [2:46:42](https://vimeo.com/1167430828#t=10002s) Thank you, Mr. Chair. Um, just clear up something for me if you can, 'cause I hadn't hung out over on those 4,000 acres a whole bunch. So I guess they've got warehouses that the airport owns the land, but they rent out the warehouses to private businesses to do whatever business they've got to handle, and those have been ad valorem exempt this whole time. Is that correct? [2:47:05](https://vimeo.com/1167430828#t=10025s) I'll have to ask the tax assessor someone to ask. I, I don't know that I could answer that. But if you think about the airport leases within the airport, all of which we enjoy. If we go to the airport, we go in those businesses, you know? But the question is whether or not that's an essential government service. [2:47:21](https://vimeo.com/1167430828#t=10041s) Right. [2:47:23](https://vimeo.com/1167430828#t=10043s) And to s- to talk about a repair facility, I don't know if somebody else would have to answer that question for you. For example, a big warehouse that's used as a repair facility. [2:47:33](https://vimeo.com/1167430828#t=10053s) Follow-up, Mr. Chair? [2:47:35](https://vimeo.com/1167430828#t=10055s) Sure. [2:47:35](https://vimeo.com/1167430828#t=10055s) I would assume that, um, speaking to the author, that those warehouses exist all over the place in Clayton. It's not just 4,000 acres of woods. Is that correct? [2:47:45](https://vimeo.com/1167430828#t=10065s) Yes. [2:47:46](https://vimeo.com/1167430828#t=10066s) Okay. Thank you, ma'am. Um- [2:47:47](https://vimeo.com/1167430828#t=10067s) And those are, and those are taxed. [2:47:51](https://vimeo.com/1167430828#t=10071s) Mr. Chair, at the appropriate time. [2:47:53](https://vimeo.com/1167430828#t=10073s) Thank you. Um, any oth- we do have, uh, any other questions from the committee? We do have, uh, one who's signed up to speak to the bill, if you wanna hold on just a moment. Walter Vinson, if you could, uh, introduce yourself, who you're representing, and then, then proceed. Thank you for being here. [2:48:13](https://vimeo.com/1167430828#t=10093s) Thank you, sir. Thank you, Mr. Chairman. [2:48:15](https://vimeo.com/1167430828#t=10095s) Yeah. Have a seat. [2:48:22](https://vimeo.com/1167430828#t=10102s) Good afternoon, Mr. Chairman and the members of the subcommittee. My name is Walter Vinson. I am the Assistant General Manager of Government Affairs for Hartsfield-Jackson Atlanta International Airport. I'm here to express our position about the potential impact of House Bill 942 to, on the airport. This airport is not simply a piece of city-owned property. It is the busiest and most efficient airport in the world, and one of the most powerful economic engines in the United States. It supports tens of thousands of jobs, drives billions in economic activity, and connects Georgia to global markets. [2:48:58](https://vimeo.com/1167430828#t=10138s) While the City of Atlanta owns and operates A- Atlanta, I'm sorry, Hartsfield-Jackson, a substantial portion of the property sits in Clayton County. HB 942 would limit tax exemptions for public property owned outside a jurisdiction, jurisdiction's boundaries. In this case, that would expose Hartsfield-Jackson to significant property tax liability. If that happens, the consequences will not be symbolic. They'll be financial and operational. Airport revenues are not general surplus funds. These funds are required to help the airport suspa- be self-sustaining in accordance with FAA regulations. [2:49:35](https://vimeo.com/1167430828#t=10175s) They are reinvested directly into aviation infrastructure, runway maintenance, safety upgrades, terminal modernization, excuse me, and bond repayment. [2:49:50](https://vimeo.com/1167430828#t=10190s) Diverting those revenues to property taxes would reduce available capital for critical improvements needed to maintain the over $300 billion economic impact on the southeast region. Should HB, HB 942 become law, Hartsfield-Jackson may have to increase airline la- airline landing fees and terminal rents. Airlines w- would then pass tho- could very well pass those costs on to passengers. Over time, that could weaken Hartsfield-Jackson's competitiveness against other large hub airports. [2:50:22](https://vimeo.com/1167430828#t=10222s) This is not just an Atlanta issue or a Clayton County issue. Hartsfield-Jackson serves the entire state. Businesses choose Georgia because of its connectivity. Taxing this infrastructure could un- unintentionally slow expansion, increase borrowing costs, and create uncert- uncertainty around future development. Public use infrastructures like this have traditionally been exempt from ad v- valorem taxation, because taxing government property used for public purposes simply shifts money from one public pocket to another, often at the expense of service delivery. [2:50:58](https://vimeo.com/1167430828#t=10258s) HB 942 risks undermining a statewide asset that fuels Georgia's economy. I urge the members of the subcommittee today to carefully consider the broader economic implications before placing new financial burdens on one of the most important transportation hubs in the world. Thank you for your time. [2:51:16](https://vimeo.com/1167430828#t=10276s) Thank you, Mr. Vinson, and thank you for, to, to all the workers at the airport that, as you say, it is a crucial part of the entire state. Um, there are, you would agree there's significant, uh, private businesses that also operate in addition to that more government related purpose, wouldn't you? [2:51:34](https://vimeo.com/1167430828#t=10294s) Yes, sir. [2:51:35](https://vimeo.com/1167430828#t=10295s) Okay. I think that might be some of the goal. Let me see if there's any, uh, members of the committee. Chairman Blackmon? [2:51:40](https://vimeo.com/1167430828#t=10300s) No, we appreciate you, Mr. Vinson. Appreciate what, what you do. Um, is there a, an exemption amount that would be acceptable? I know this reference is 60%. Uh, would there be any, any level? [2:51:57](https://vimeo.com/1167430828#t=10317s) At this moment, Mr. Chairman, I don't, I haven't- [2:51:59](https://vimeo.com/1167430828#t=10319s) Not authorized to offer [2:52:01](https://vimeo.com/1167430828#t=10321s) ... an alternative to offer. [2:52:01](https://vimeo.com/1167430828#t=10321s) Understood. Thank you very much. [2:52:03](https://vimeo.com/1167430828#t=10323s) Yes, sir. [2:52:05](https://vimeo.com/1167430828#t=10325s) This do- this does seem to be, obviously somewhere between zero and 100, um, this seems to be an effort to strike a balance. Chairman Williamson. [2:52:13](https://vimeo.com/1167430828#t=10333s) Uh, so Mr., uh, Vinson, sort of echo what Chairman, uh, Blackmon said. I just, uh, wanna, uh, please extend our, uh, thanks to the people that are running the world's most efficient airport. I know we have a, a lot of things we can agree to disagree on, but, uh, you know, moving those planes in and out of there as efficiently as, uh... The airport's well-run, well-managed, and it's got the best airline in the world headquartered here, so we have- Appreciate all y'all do to keep, um, uh, planes coming in and out safely and, and, um, and such a economic blessing to the state of Georgia, in fact, to the whole Southeast. [2:52:49](https://vimeo.com/1167430828#t=10369s) So thank- thanks for all, all y'all do. [2:52:52](https://vimeo.com/1167430828#t=10372s) Thank you, sir. [2:52:53](https://vimeo.com/1167430828#t=10373s) Representative Buckner. [2:52:56](https://vimeo.com/1167430828#t=10376s) Ditto. Thank you for running a great airport, and, um, I wish I were over there heading somewhere fun. Um, I have a question, and it may not be for you, but I wanna make sure I understand this. Right now there are, the land is, is fully exempt from property tax. There's no taxes paid, correct? And if this goes into effect, then in 2027 it would be exempt, according to this bill, from 60% of property tax. [2:53:30](https://vimeo.com/1167430828#t=10410s) Is that correct? [2:53:35](https://vimeo.com/1167430828#t=10415s) Yes. [2:53:35](https://vimeo.com/1167430828#t=10415s) Okay. [2:53:37](https://vimeo.com/1167430828#t=10417s) You can ask him or him. [2:53:37](https://vimeo.com/1167430828#t=10417s) Yeah, I'll let sir- [2:53:37](https://vimeo.com/1167430828#t=10417s) Anybody that wanna answer. [2:53:38](https://vimeo.com/1167430828#t=10418s) Okay. [2:53:39](https://vimeo.com/1167430828#t=10419s) Not if, not if it's done with purposes. [2:53:41](https://vimeo.com/1167430828#t=10421s) Right. There's proportions to- [2:53:42](https://vimeo.com/1167430828#t=10422s) But if it, uh, that's what I- [2:53:43](https://vimeo.com/1167430828#t=10423s) From what I understood from Mr. Vinson- [2:53:45](https://vimeo.com/1167430828#t=10425s) Understood [2:53:45](https://vimeo.com/1167430828#t=10425s) ... and certainly that's, and we're talking about property within Clayton County, not outside of Clayton County. [2:53:50](https://vimeo.com/1167430828#t=10430s) Right. [2:53:50](https://vimeo.com/1167430828#t=10430s) And, you know, what he said a minute ago, it's used for public purposes, not used for governmental purposes, and there is a very significant distinction, as Chair recognized just a moment ago. [2:54:04](https://vimeo.com/1167430828#t=10444s) I was just thinking that a lot of people that live in rural areas would like to have that 60% rather than the 40 that they have, and they don't have the option of it being used for public and pri- versus private, so [2:54:19](https://vimeo.com/1167430828#t=10459s) it'd- [2:54:19](https://vimeo.com/1167430828#t=10459s) It'd be good to know what percentage we pay. [2:54:24](https://vimeo.com/1167430828#t=10464s) All right. Well, there's, thank you, sir. Thank you, Mr. Vinson. [2:54:27](https://vimeo.com/1167430828#t=10467s) Thank you. [2:54:27](https://vimeo.com/1167430828#t=10467s) Thank you for your help. [2:54:28](https://vimeo.com/1167430828#t=10468s) Mm-hmm. [2:54:28](https://vimeo.com/1167430828#t=10468s) Your testimony. [2:54:30](https://vimeo.com/1167430828#t=10470s) And, uh- [2:54:31](https://vimeo.com/1167430828#t=10471s) Yes, if the author, if you'd like some final comments. [2:54:35](https://vimeo.com/1167430828#t=10475s) Uh, yes, I would. Um, there also, um, are many residents that work at the airport, and, um, we do, um, think that they do run, uh, efficiently, and they provide a great service for the state of Georgia, in fact, the whole world. But at the same time, Clayton County, um, does not benefit, and this would give us an opportunity to get some funding from the airport. So this would benefit us. [2:55:05](https://vimeo.com/1167430828#t=10505s) While I understand, um, the airport's position, but, um, this is also fairness for Clayton County. [2:55:13](https://vimeo.com/1167430828#t=10513s) Right. And as you mentioned, a lot of the, the burden of, uh, EMS, the jail- [2:55:17](https://vimeo.com/1167430828#t=10517s) Everything [2:55:18](https://vimeo.com/1167430828#t=10518s) ... things like that, you, you say there are some expenses to Clayton County. All right. Uh, hear no other, um, no other committee members with a question. Um, similar to what we did with the last bill because of the, uh, how close we are to crossover and all with limited time, um, is there any objection to moving forward with a vote on this? Have us waive the first hearing rule. [2:55:42](https://vimeo.com/1167430828#t=10542s) So moved. [2:55:43](https://vimeo.com/1167430828#t=10543s) Is there any, is there any objection? [2:55:47](https://vimeo.com/1167430828#t=10547s) I move it. [2:55:47](https://vimeo.com/1167430828#t=10547s) I hear no objection, so we will go on, and we will, uh, depend on the will of the committee, um, on this bill. Is- [2:55:54](https://vimeo.com/1167430828#t=10554s) Make a motion to pass. [2:55:56](https://vimeo.com/1167430828#t=10556s) We have a mo- we have a motion to pass and a second. Is there any further discussion or amendments or...? If not, all in favor say aye. [2:56:04](https://vimeo.com/1167430828#t=10564s) Aye. [2:56:04](https://vimeo.com/1167430828#t=10564s) Any opposed, no. All right, thank you. The bill passes. Thank you, ma'am. Thank you for your presentation. [2:56:09](https://vimeo.com/1167430828#t=10569s) Thank you. [2:56:09](https://vimeo.com/1167430828#t=10569s) Thank you, sir, for to your team. [2:56:11](https://vimeo.com/1167430828#t=10571s) Thank you, Mr. Chairman, members. [2:56:12](https://vimeo.com/1167430828#t=10572s) And I believe we're gonna hold off on Chairman, uh, Chairman Sainz's Bill 932. Uh, believe the author was tied up, and, uh, we will hold that to the next subcommittee hearing for HB 932. And with that, we'll adjourn the, uh, Tax Reform Subcommittee. Thank you. [2:56:29](https://vimeo.com/1167430828#t=10589s) Tax Subcommittee will reconvene in [2:59:02](https://vimeo.com/1167430828#t=10742s) seven minutes. [2:59:03](https://vimeo.com/1167430828#t=10743s) We're gonna be at ease for just a minute, and if, uh, Representative Townsend comes back and we can field a quorum, we'll try to pass his bill out. Otherwise, we're, we'll push that until our next, uh, full committee meeting. [3:12:23](https://vimeo.com/1167430828#t=11543s) Ladies and gentlemen, we'll call the full Committee to Ways and Means, uh, to order, and we have one bill on the agenda. It is HB 565. You should have a copy on your tablet. Um, essentially, we're extending a, uh, [3:12:46](https://vimeo.com/1167430828#t=11566s) amount of, um, tax credits available up under this code section. [3:13:00](https://vimeo.com/1167430828#t=11580s) This is the PEACH tax credit, so it is for public schools. This is the- [3:13:04](https://vimeo.com/1167430828#t=11584s) So moved [3:13:04](https://vimeo.com/1167430828#t=11584s) ... yeah, Brooks Coleman's original bill. [3:13:06](https://vimeo.com/1167430828#t=11586s) Second. [3:13:07](https://vimeo.com/1167430828#t=11587s) I have a motion and a second. Is there any further discussion? Hearing none, all in favor, please signify by stating aye. [3:13:14](https://vimeo.com/1167430828#t=11594s) Aye. [3:13:15](https://vimeo.com/1167430828#t=11595s) Those opposed like same. Thank you very much. M- [3:13:18](https://vimeo.com/1167430828#t=11598s) Brooks Coleman [3:13:19](https://vimeo.com/1167430828#t=11599s) ... meeting is adjourned.