24 LC 44 2634
House Bill 1185
By: Representatives Camp of the 135
th
, Washburn of the 144
th
, Frye of the 122
nd
, Martin of
the 49
th
, and Blackmon of the 146
th
A BILL TO BE ENTITLED
AN ACT
To amend Part 1 of Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia
1
Annotated, relating to tax exemption, so as to provide for a statewide homestead exemption2
from ad valorem taxes in an amount equal to any amount by which the current year assessed3
value of a homestead exceeds the inflation rate from the adjusted base year value of such4
homestead; to provide for definitions; to specify the terms and conditions of the exemption5
and the procedures relating thereto; to provide for applicability; to provide for approval by6
local governing authorities; to provide for related matters; to provide for compliance with7
constitutional requirements; to provide for a referendum, effective dates, and automatic8
repeal; to provide for contingent repeal; to repeal conflicting laws; and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
Part 1 of Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated,12
relating to tax exemption, is amended by adding a new Code section to read as follows:13
"48-5-44.2.
14
(a) For purposes of this Code section, the term:15
H. B. 1185
- 1 - 24 LC 44 2634
(1) 'Ad valorem taxes' means all ad valorem taxes levied by, for, or on behalf of the state16
or any county, consolidated government, municipality, or local school district in this17
state, except for any ad valorem taxes levied to pay interest on and to retire bonded18
indebtedness.19
(2) 'Adjusted base year value' means the sum of:20
(A) The previous adjusted base year assessed value;21
(B) An amount equal to the difference between the current year assessed value of the22
homestead and the base year assessed value of the homestead, provided that such23
amount shall not exceed the total of the previous adjusted base year assessed value of24
the homestead multiplied by the inflation rate for the prior year; and25
(C) The value of any substantial property change, provided that no such value added26
improvements to the homestead shall be duplicated as to the same addition or27
improvement.28
(3) 'Base year assessed value' means:29
(A) With respect to an exemption under this Code section which is first granted to a30
person on such person's homestead for the 2025 taxable year, the assessed value for31
taxable year 2024, including any final determination of value on appeal pursuant to32
Code Section 48-5-311, of the homestead; or33
(B) In all other cases, the assessed value, including any final determination of value on34
appeal pursuant to Code Section 48-5-311, of the homestead from the taxable year35
immediately preceding the taxable year in which the exemption under this Code section36
is first granted to the applicant.37
(4) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40 of38
the O.C.G.A., as amended.39
(5) 'Inflation rate' means the annual inflationary index rate as determined for a given year40
by the commissioner in accordance with subsection (g) of this Code section.41
(6) 'Previous adjusted base year assessed value' means:42
H. B. 1185
- 2 - 24 LC 44 2634
(A) With respect to the year for which the exemption under this Code section is first43
granted to a person on such person's homestead, the base year assessed value; or44
(B) In all other cases, the adjusted base year assessed value of the homestead as45
calculated in the taxable year immediately preceding the current year, including any46
final determination of value on appeal pursuant to Code Section 48-5-311.47
(7) 'Substantial property change' means any increase or decrease in the assessed value48
of a homestead derived from additions or improvements to, or the removal of real49
property from, the homestead which occurred after the year in which the base year50
assessed value is determined for the homestead. The assessed value of the substantial51
property changes shall be established following any final determination of value on52
appeal pursuant to Code Section 48-5-311.53
(b)(1) Subject to local approval as provided for in paragraph (3) of this subsection, each54
resident of this state is granted an exemption on that person's homestead from ad valorem55
taxes in an amount equal to the amount by which the current year assessed value of that56
homestead, including any final determination of value on appeal pursuant to Code57
Section 48-5-311, exceeds its previous adjusted base year assessed value.58
(2) Except as provided for in subsection (c) of this Code section, no exemption provided59
for in this subsection shall transfer to any subsequent owner of the property, and the60
assessed value of the property shall be as provided by law.61
(3) The exemption provided for in paragraph (1) of this subsection shall not be62
applicable to any county, consolidated government, municipality, or local school district63
in this state until January 1 of the calendar year in which the governing authority of the64
county, consolidated government, municipality, or local school district elects to approve65
of the exemption by ordinance or resolution.66
(c) The surviving spouse of the person who has been granted the exemption provided for67
in subsection (b) of this Code section shall continue to receive the exemption provided68
H. B. 1185
- 3 - 24 LC 44 2634
under subsection (b) of this Code section, so long as such surviving spouse continues to69
occupy the residence as a homestead.70
(d) A person shall not receive the homestead exemption granted by subsection (b) of this71
Code section unless such person or person's agent files an application with the tax receiver72
or tax commissioner of his or her respective local government or governments charged with73
the duty of receiving returns of property for taxation giving such information relative to74
receiving such exemption as will enable such tax receiver or tax commissioner to make a75
determination regarding the initial and continuing eligibility of such person for such76
exemption or has already filed for and is receiving a homestead exemption and such77
existing application provides sufficient information to make such determination of78
eligibility. Such tax receiver or tax commissioner shall provide application forms for this79
purpose.80
(e) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1.81
Such exemption shall be automatically renewed from year to year so long as the owner82
occupies the residence as a homestead. After a person or a person's agent has filed the83
proper application as provided in subsection (d) of this Code section, it shall not be84
necessary to make application thereafter for any year, and the exemption shall continue to85
be allowed to such person. It shall be the duty of any person granted the homestead86
exemption under subsection (b) of this Code section to notify the tax receiver or tax87
commissioner of the local government or governments in the event such person for any88
reason becomes ineligible for such exemption.89
(f)(1) Except as otherwise provided in paragraph (2) of this subsection, the homestead90
exemption granted by subsection (b) of this Code section shall be in addition to and not91
in lieu of any other homestead exemption applicable to ad valorem taxes.92
(2) The homestead exemption granted by subsection (b) of this Code section shall be in93
lieu of and not in addition to any other adjusted base year value homestead exemption94
provided by local Act which is applicable to ad valorem taxes.95
H. B. 1185
- 4 - 24 LC 44 2634
(g) For the purposes of this Code section, the commissioner shall promulgate a96
standardized method for determining annual inflationary index rates which reflect the97
effects of inflation and deflation on the cost of living for residents of this state for a given98
calendar year. Such method may utilize the Consumer Price Index as reported by the99
Bureau of Labor Statistics of the United States Department of Labor or any other similar100
index established by the federal government if the commissioner determines that such101
federal index fairly reflects the effects of inflation and deflation on residents of this state.102
(h) The exemption granted by subsection (b) of this Code section shall apply to all taxable103
years beginning on or after January 1, 2025."104
SECTION 2.105
In accordance with the requirements of Article VII, Section II of the Constitution of the State106
of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority107
vote in both the Senate and the House of Representatives.108
SECTION 3.109
The Secretary of State shall call and conduct an election as provided in this section for the110
purpose of submitting this Act to the electors of the entire state for approval or rejection. The111
Secretary of State shall conduct such election no later than the Tuesday next following the112
first Monday in November, 2024, and shall issue the call and conduct such election as113
provided by general law. The Secretary of State shall cause the date and purpose of the114
election to be published once a week for two weeks immediately preceding the date thereof115
in the official organ of each county in the state. The ballot shall have written or printed116
thereon the words:117
H. B. 1185
- 5 - 24 LC 44 2634
"( ) YES
118
( ) NO119
120
121
122
123
Shall the Act be approved which provides a statewide homestead exemption
from ad valorem taxes in an amount equal to the amount by which the
current year assessed value of a homestead exceeds its base year assessed
value, provided that the base year assessed value of such homestead shall
be subject to annual changes based on the inflation rate, subject to approval
of the applicable local governing authority?"
All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring
124
to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on125
such question are for approval of the Act, Section 1 of this Act shall become of full force and126
effect on January 1, 2025, only if an amendment to the Constitution to provide for local127
governments to have the option to offer a state-wide homestead exemption from ad valorem128
taxes in an amount equal to any amount by which the current year assessed value of a129
homestead exceeds the inflation rate from the adjusted base year value of such homestead130
as provided by general law is ratified by the voters at the November, 2024, state-wide general131
election. If such an amendment is not so ratified, then this Act shall not become effective132
and shall stand repealed on January 1, 2025. If the Act is not so approved, if the election is133
not conducted, or if the constitutional amendment is not ratified as provided in this section,134
Section 1 of this Act shall not become effective and this Act shall be automatically repealed135
on the first day of January immediately following such election date. It shall be the duty of136
each county election superintendent to certify the results thereof to the Secretary of State.137
SECTION 4.138
Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon139
its approval by the Governor or upon its becoming law without such approval.140
SECTION 5.141
All laws and parts of laws in conflict with this Act are repealed.142
H. B. 1185
- 6 -