23 LC 33 9456S
H. B. 504 (SUB)
- 1 -
House Bill 504 (COMMITTEE SUBSTITUTE)
By: Representatives Hatchett of the 155
th
and Jones of the 25
th
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 20-2-164 of the Official Code of Georgia Annotated, relating to
1
local five mill share funds, so as to exclude amounts attributable to tangible personal2
property for which level 1 freeport exemptions were granted from the equalized adjusted3
school property tax digest for the purpose of calculating local five mill share; to require4
certain municipalities and counties to annually provide information relating to level 15
freeport exemptions to the Department of Revenue; to require the Department of Revenue6
to annually verify, certify as correct, and furnish the State Board of Education such7
information relating to level 1 freeport exemptions; to provide for related matters; to repeal8
conflicting laws; and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
Code Section 20-2-164 of the Official Code of Georgia Annotated, relating to local five mill12
share funds, is amended by revising subsections (d), (e), and (g) as follows:13
"(d) Each municipality having an independent school system and each county government14
shall annually provide the Department of Revenue with the following information for each15
local school system within its jurisdiction:16 23 LC 33 9456S
H. B. 504 (SUB)
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(1) The total number of granted state-wide constitutional homestead exemptions for
17
occupied homes pursuant to Code Section 48-5-44 exclusive of those homestead18
exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and 48-5-52;19
(2) The total number of granted state-wide constitutional homestead exemptions for20
disabled veterans pursuant to Code Section 48-5-48;21
(3) The amounts of tax and nontax revenues by source which have been distributed by22
said local government to local school systems for educational maintenance and operation;23
provided, further, that if the total tax revenues collected by a municipal government24
exceed the amount of all revenues distributed to its school system, the total amount of tax25
revenues collected by the municipal government shall also be submitted to the26
Department of Revenue. Such data shall be submitted to the Department of Revenue no27
later than the date required for the submission of the local tax digests to the Department28
of Revenue; and
29
(4) The difference between the actual assessed valuation of agricultural property and the30
valuation that would be assessed if all agricultural property were assessed at 40 percent31
of its fair market value as provided in Code Section 48-5-7; provided, however, that if the32
taxing authority of a local school system assesses property at a legal standard other than33
40 percent of fair market value, the actual assessed valuation used in this calculation shall34
be reduced to represent the amount which would be assessed if the jurisdiction assessed35
property at 40 percent of fair market value; and36
(5) The value of all tangible personal property for which level 1 freeport exemptions37
pursuant to Code Sections 48-5-48.1 and 48-5-48.2 were granted for that year.38
(e) The Department of Revenue shall annually verify, certify as correct, and furnish the39
State Board of Education with the following data for each local school system by40
November 15:41
(1) All tax and nontax revenues by source for the preceding fiscal year which were42
distributed for educational maintenance and operation; provided, however, that such tax43 23 LC 33 9456S
H. B. 504 (SUB)
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and nontax revenues shall exclude any state revenue collections which were previously
44
distributed to the state general fund and then appropriated or allocated to local school45
systems; and provided, further, that if the total tax revenues collected by a municipal46
government exceed the amount of all revenues which it distributed to its school system,47
the total amount of revenues distributed to the school system shall be designated as tax48
revenues in the report of the Department of Revenue to the state board;49
(2) The number of exemptions granted for state-wide constitutional homestead50
exemptions for owner occupied homes pursuant to Code Section 48-5-44, exclusive of51
those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and52
48-5-52, for the preceding calendar year;53
(3) The number of exemptions granted for state-wide constitutional homestead54
exemptions for disabled veterans pursuant to Code Section 48-5-48 for the preceding55
calendar year; and
56
(4) The difference between the actual assessed valuation of agricultural property and the57
valuation that would be assessed if all agricultural property were assessed at 40 percent58
of its fair market value as provided in Code Section 48-5-7, adjusted pursuant to59
paragraph (4) of subsection (d) of this Code section; and60
(5) The value of all tangible personal property for which level 1 freeport exemptions61
pursuant to Code Sections 48-5-48.1 and 48-5-48.2 were granted for that year."62
"(g) For purposes of calculation under this Code section and Code Section 20-2-165, the63
equalized adjusted school property tax digest, adjusted by paragraph (1) of subsection (a)64
of this Code section, shall be reduced by the sum of the following products:65
(1) The product of the number of constitutional homestead exemptions for owner66
occupied homes pursuant to Code Section 48-5-44 granted for that year, exclusive of67
those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and68
48-5-52, multiplied by the amount per exemption authorized under Code Section 48-5-44;69
provided, further, that in any city operating an independent school system which provides70 23 LC 33 9456S
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a homestead exemption through local legislation comparable to that provided in Code
71
Section 48-5-44, the product calculated in this paragraph shall represent the number of72
homestead exemptions provided through the applicable local legislation multiplied by the73
amount per exemption authorized in Code Section 48-5-44, or by the amount per74
exemption authorized in the applicable local legislation, whichever is less; and provided,75
further, that if the amount per exemption authorized in Code Section 48-5-44 has been76
changed subsequent to the year of the applicable digest, the more recently adopted77
amount per exemption shall be used for the product calculated in this paragraph;78
(2) The product of the number of constitutional homestead exemptions for disabled79
veterans pursuant to Code Section 48-5-48 granted for that year, multiplied by the amount80
per exemption authorized under that Code section; provided, further, that in any city81
operating an independent school system which provides a homestead exemption through82
local legislation comparable to that provided in Code Section 48-5-48, the product83
calculated in this paragraph shall represent the number of homestead exemptions84
provided through the applicable local legislation multiplied by the amount per exemption85
authorized in the applicable local legislation, whichever is less; and provided, further, that86
if the amount per exemption authorized in Code Section 48-5-48 has been changed87
subsequent to the year of the applicable digest, the more recently adopted amount per88
exemption shall be used for the product calculated in this paragraph;89
(3) The product of the estimated number of persons age 65 or older residing in the local90
school system during that year multiplied by 5,000;91
(4) The product which results from the following calculations:92
(A) Subtract the estimated state-wide percentage that persons age 65 or older is of the93
total population, excluding military personnel and institutional population, from the94
respective percentage for the local school system. If the respective percentage for the95
local school system is less than the state-wide percentage, a difference of zero shall be96
used in the calculations in this paragraph;97 23 LC 33 9456S
H. B. 504 (SUB)
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(B) Multiply the difference which results from subparagraph (A) of this paragraph by
98
1,000; and99
(C) Multiply the product which results from subparagraph (B) of this paragraph by the100
estimated number of persons age 65 or older residing in the local school system during101
that year; and
102
(5) The product which results from the following calculations:103
(A) Divide the amount reported in paragraph (4) of subsection (e) of this Code section104
by the average ratio of assessed value to true value used to calculate the most recent105
equalized adjusted school property tax digest pursuant to Code Section 48-5-274; and106
(B) Multiply the quotient which results from subparagraph (A) of this paragraph by .4;107
and108
(6) The value of all tangible personal property for which level 1 freeport exemptions109
pursuant to Code Sections 48-5-48.1 and 48-5-48.2 were granted for that year, multiplied110
by .4."111
SECTION 2.112
All laws and parts of laws in conflict with this Act are repealed.113