24 LC 50 0786S
The House Committee on Ways and Means offers the following substitute to HB 1185:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to tax1
exemption, so as to limit the application of certain local requirements regarding the setting2
of millage rates; to provide for a local option adjusted base year homestead exemption from3
county, consolidated government, municipality, or school district taxes upon the local4
approval of the governing authority and qualified voters of such political subdivisions; to5
specify the terms and conditions of the exemption and the procedures relating thereto; to6
provide for applicability; to provide for approval by local governing authorities and7
referenda; to provide for related matters; to provide for an effective date and contingent8
repeal; to repeal conflicting laws; and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to tax exemption,12
is amended in Code Section 48-5-32.1 of the Official Code of Georgia Annotated, relating13
to certification of assessed taxable value of property and method of computation, resolution14
or ordinance required for millage rate, and advertisement of intent to increase property tax,15
by adding a new subsection to read as follows:16
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"(g) The provisions of this Code section shall not apply to any levying authority or17
recommending authority for which a base year assessed value homestead exemption or18
adjusted base year assessed value homestead exemption is in effect."19
SECTION 2.20
Said chapter is further amended by adding a new Code section to read as follows:21
"48-5-44.2.22
(a) For purposes of this Code section, the term:23
(1) 'Ad valorem taxes' means all ad valorem taxes levied by, for, or on behalf of a given24
county, consolidated government, municipality, or local school district in this state,25
except for any ad valorem taxes levied to pay interest on and to retire bonded26
indebtedness.27
(2) 'Adjusted base year value' means, with respect to a given county, consolidated28
government, municipality, or local school district, the sum of:29
(A) The previous adjusted base year assessed value;30
(B) An amount equal to the difference between the current year assessed value of the31
homestead and the base year assessed value of the homestead, provided that such32
amount shall not exceed the total of the previous adjusted base year assessed value of33
the homestead multiplied by the inflation rate for the prior year; and34
(C) The value of any substantial property change, provided that no such value added35
improvements to the homestead shall be duplicated as to the same addition or36
improvement.37
(3) 'Base year assessed value' means, with respect to a given county, consolidated38
government, municipality, or local school district, the assessed value, including any final39
determination of value on appeal pursuant to Code Section 48-5-311, of the homestead40
from the taxable year immediately preceding the taxable year in which the local option41
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homestead exemption under this Code section is first granted to the applicant for such42
political subdivision.43
(4) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40 of44
the O.C.G.A., as amended.45
(5) 'Inflation rate' means the annual inflationary index rate as determined for a given year46
by the commissioner in accordance with subsection (g) of this Code section.47
(6) 'Previous adjusted base year assessed value' means, with respect to a given county,48
consolidated government, municipality, or local school district:49
(A) For the year in which a given local option homestead exemption is first granted to50
a person on such person's homestead, the base year assessed value; or51
(B) For all other years, the adjusted base year assessed value of the homestead as52
calculated in the taxable year immediately preceding the current year, including any53
final determination of value on appeal pursuant to Code Section 48-5-311.54
(7) 'Substantial property change' means any increase or decrease in the assessed value55
of a homestead derived from additions or improvements to, or the removal of real56
property from, the homestead which occurred after the year in which the base year57
assessed value is determined for the homestead. The assessed value of the substantial58
property changes shall be established following any final determination of value on59
appeal pursuant to Code Section 48-5-311.60
(b)(1) As authorized under Paragraph III(b) of Section II of Article VII of the61
Constitution, for a given county, consolidated government, municipality, or local school62
district which has approved the homestead exemption in the manner provided for in63
paragraph (3) of this subsection, each resident of such given political subdivision is64
granted an exemption on that person's homestead from ad valorem taxes in an amount65
equal to the amount by which the current year assessed value of that homestead,66
including any final determination of value on appeal pursuant to Code Section 48-5-311,67
exceeds its previous adjusted base year assessed value.68
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(2) Except as provided for in subsection (c) of this Code section, no exemption provided69
for in this subsection shall transfer to any subsequent owner of the property, and the70
assessed value of the property shall be as provided by law.71
(3) The exemption provided for in paragraph (1) of this subsection shall not be72
applicable to any county, consolidated government, municipality, or local school district73
in this state until January 1 after:74
(A) The governing authority of the county, consolidated government, municipality, or75
local school district approves the local option homestead exemption by ordinance or76
resolution; and77
(B) Such ordinance or resolution is approved in a special election held in conformity78
with the requirements for special elections pursuant to Title 21 by a majority of the79
qualified voters of such county, consolidated government, municipality, or local school80
district.81
(4)(A) The exemption provided for in paragraph (1) of this subsection shall not be82
available to any county, consolidated government, municipality, or local school district83
in this state for which any base year value or adjusted base year value homestead84
exemption is currently in effect or was in effect as of January 1, 2025.85
(B) The governing authority of a political subdivision seeking to repeal a local option86
homestead exemption approved under this Code section shall adopt a resolution or87
ordinance that repeals the enabling resolution or ordinance and shall submit the88
question of the repeal to the qualified voters of such political subdivision. If a majority89
of the votes cast are in favor of the question to repeal the local option homestead90
exemption, then such exemption shall be repealed as of January 1 of the year following91
the certification of such referendum.92
(C) The General Assembly shall not repeal or modify the provisions or application of93
this Code section with respect to any one or more political subdivisions that have94
approved an homestead exemption under this Code section except upon the passage of95
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a general bill by two-third's vote of the General Assembly and the approval of a96
majority of voters in a statewide referendum calling for such repeal or modification.97
(c) The surviving spouse of the person who has been granted the exemption provided for98
in subsection (b) of this Code section shall continue to receive the exemption provided99
under subsection (b) of this Code section, so long as such surviving spouse continues to100
occupy the residence as a homestead.101
(d) A person shall not receive the homestead exemption granted through subsection (b) of102
this Code section unless such person or person's agent files an application with the tax103
receiver or tax commissioner of his or her respective local government or governments104
charged with the duty of receiving returns of property for taxation giving such information105
relative to receiving such exemption as will enable such tax receiver or tax commissioner106
to make a determination regarding the initial and continuing eligibility of such person for107
such exemption or has already filed for and is receiving a homestead exemption and such108
existing application provides sufficient information to make such determination of109
eligibility. Such tax receiver or tax commissioner shall provide application forms for this110
purpose.111
(e) Exemptions authorized through this Code section shall be claimed and returned as112
provided in Code Section 48-5-50.1 and shall be automatically renewed from year to year113
so long as the owner occupies the residence as a homestead. After a person or a person's114
agent has filed the proper application as provided in subsection (d) of this Code section, it115
shall not be necessary to make application thereafter for any year, and the exemption shall116
continue to be allowed to such person. It shall be the duty of any person granted the117
homestead exemption through this Code section to notify the tax receiver or tax118
commissioner of the local government or governments in the event such person for any119
reason becomes ineligible for such exemption.120
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(f) Homestead exemptions granted through subsection (b) of this Code section shall be in121
addition to and not in lieu of any other homestead exemption applicable to ad valorem122
taxes.123
(g) For the purposes of this Code section, the commissioner shall promulgate a124
standardized method for determining annual inflationary index rates which reflect the125
effects of inflation and deflation on the cost of living for residents of this state for a given126
calendar year. Such method may utilize the Consumer Price Index as reported by the127
Bureau of Labor Statistics of the United States Department of Labor or any other similar128
index established by the federal government if the commissioner determines that such129
federal index fairly reflects the effects of inflation and deflation on residents of this state."130
SECTION 3.131
This Act shall become effective on January 1, 2025; provided, however, that, if a132
constitutional amendment which becomes effective on such date and which authorizes the133
General Assembly to provide by general law for local option homestead exemptions has not134
been ratified, then this Act shall stand automatically repealed on such date.135
SECTION 4.136
All laws and parts of laws in conflict with this Act are repealed.137
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