Georgia 2023-2024 Regular Session

Georgia House Bill HB504 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	23 LC 43 2830S
	1	+	23 LC 33 9456S
	2	+	H. B. 504 (SUB)
2	3		- 1 -
3		-	The Senate Committee on Finance offered the following
4		-	substitute to HB 504:
	4	+	House Bill 504 (COMMITTEE SUBSTITUTE)
	5	+	By: Representatives Hatchett of the 155
	6	+	th
	7	+	and Jones of the 25
	8	+	th
	9	+
5	10		A BILL TO BE ENTITLED
6	11		AN ACT
7		-	To amend Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to1
8		-	eligibility to receive tax credits, so as to revise a definition; to amend Code Section2
9		-	48-7-29.20 of the Official Code of Georgia Annotated, relating to tax credits for3
10		-	contributions to rural hospital organizations, so as to expand the definition of "rural hospital4
11		-	organizations"; to revise the manner of preapproving and allocating certain contributions; to5
12		-	extend the sunset provision; to amend Code Section 48-7-29.21 of the Official Code of6
13		-	Georgia Annotated, relating to tax credits for qualified education donations for the purpose7
14		-	of awarding grants to public schools, so as to provide for a sunset date; to amend an Act8
15		-	relating to education and to revenue and taxation to authorize the Public Education9
16		-	Innovation Fund Foundation to receive private donations to be used for grants to public10
17		-	schools; to provide for grant criteria; to provide for an income tax credit for qualified11
18		-	education donations; to provide for conditions and limitations; to provide for powers, duties,12
19		-	and authority of the state revenue commissioner with respect to such donations, approved13
20		-	April 27, 2017 (Ga L. 2017, p. 100), so as to repeal a sunset provision; to provide for related14
21		-	matters; to provide for effective dates and applicability; to repeal conflicting laws; and for15
22		-	other purposes.16
23		-	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:17 23 LC 43 2830S
	12	+	To amend Code Section 20-2-164 of the Official Code of Georgia Annotated, relating to
	13	+	1
	14	+	local five mill share funds, so as to exclude amounts attributable to tangible personal2
	15	+	property for which level 1 freeport exemptions were granted from the equalized adjusted3
	16	+	school property tax digest for the purpose of calculating local five mill share; to require4
	17	+	certain municipalities and counties to annually provide information relating to level 15
	18	+	freeport exemptions to the Department of Revenue; to require the Department of Revenue6
	19	+	to annually verify, certify as correct, and furnish the State Board of Education such7
	20	+	information relating to level 1 freeport exemptions; to provide for related matters; to repeal8
	21	+	conflicting laws; and for other purposes.9
	22	+	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
	23	+	SECTION 1.11
	24	+	Code Section 20-2-164 of the Official Code of Georgia Annotated, relating to local five mill12
	25	+	share funds, is amended by revising subsections (d), (e), and (g) as follows:13
	26	+	"(d) Each municipality having an independent school system and each county government14
	27	+	shall annually provide the Department of Revenue with the following information for each15
	28	+	local school system within its jurisdiction:16 23 LC 33 9456S
	29	+	H. B. 504 (SUB)
24	30		- 2 -
25		-	PART I18
26		-	SECTION 1-1.19
27		-	Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to eligibility to20
28		-	receive tax credits, is amended by revising paragraph (3) of subsection (a) as follows:21
29		-	"(3) 'Rural hospital organization' means an acute care hospital or rural freestanding
30		-	22
31		-	emergency department licensed by the department pursuant to Article 1 of Chapter 7 of23
32		-	this title that:24
33		-	(A) Has its primary campus Provides inpatient hospital services at a facility located in25
34		-	a rural county or is a critical access hospital;26
35		-	(B) Participates in both Medicaid and medicare and accepts both Medicaid and27
36		-	medicare patients;28
37		-	(C) Provides health care services to indigent patients;29
38		-	(D) Has at least 10 percent of its annual net revenue categorized as indigent care,30
39		-	charity care, or bad debt;31
40		-	(E) Annually files IRS Form 990, Return of Organization Exempt From Income Tax,32
41		-	with the department, or for any hospital not required to file IRS Form 990, the33
42		-	department will provide a form that collects the same information to be submitted to the34
43		-	department on an annual basis;35
44		-	(F) Is operated by a county or municipal authority pursuant to Article 4 of Chapter 736
45		-	of this title or is designated as a tax-exempt organization under Section 501(c)(3) of the37
46		-	Internal Revenue Code;38
47		-	(G) Is current with all audits and reports required by law; and39
48		-	(H) Has a three-year average patient margin, as a percent of expense, less than one40
49		-	standard deviation above the state-wide three-year average of organizations defined in41
50		-	subparagraphs (A) through (G) of this paragraph, as calculated by the department. For42
51		-	purposes of this subparagraph, the term 'patient margin' means gross patient revenues43 23 LC 43 2830S
	31	+	(1) The total number of granted state-wide constitutional homestead exemptions for
	32	+	17
	33	+	occupied homes pursuant to Code Section 48-5-44 exclusive of those homestead18
	34	+	exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and 48-5-52;19
	35	+	(2) The total number of granted state-wide constitutional homestead exemptions for20
	36	+	disabled veterans pursuant to Code Section 48-5-48;21
	37	+	(3) The amounts of tax and nontax revenues by source which have been distributed by22
	38	+	said local government to local school systems for educational maintenance and operation;23
	39	+	provided, further, that if the total tax revenues collected by a municipal government24
	40	+	exceed the amount of all revenues distributed to its school system, the total amount of tax25
	41	+	revenues collected by the municipal government shall also be submitted to the26
	42	+	Department of Revenue. Such data shall be submitted to the Department of Revenue no27
	43	+	later than the date required for the submission of the local tax digests to the Department28
	44	+	of Revenue; and
	45	+	29
	46	+	(4) The difference between the actual assessed valuation of agricultural property and the30
	47	+	valuation that would be assessed if all agricultural property were assessed at 40 percent31
	48	+	of its fair market value as provided in Code Section 48-5-7; provided, however, that if the32
	49	+	taxing authority of a local school system assesses property at a legal standard other than33
	50	+	40 percent of fair market value, the actual assessed valuation used in this calculation shall34
	51	+	be reduced to represent the amount which would be assessed if the jurisdiction assessed35
	52	+	property at 40 percent of fair market value; and36
	53	+	(5) The value of all tangible personal property for which level 1 freeport exemptions37
	54	+	pursuant to Code Sections 48-5-48.1 and 48-5-48.2 were granted for that year.38
	55	+	(e) The Department of Revenue shall annually verify, certify as correct, and furnish the39
	56	+	State Board of Education with the following data for each local school system by40
	57	+	November 15:41
	58	+	(1) All tax and nontax revenues by source for the preceding fiscal year which were42
	59	+	distributed for educational maintenance and operation; provided, however, that such tax43 23 LC 33 9456S
	60	+	H. B. 504 (SUB)
52	61		- 3 -
53		-	less contractual adjustments, bad debt, indigent and charity care, other uncompensated44
54		-	care, and total expenses."45
55		-	SECTION 1-2.46
56		-	Code Section 48-7-29.20 of the Official Code of Georgia Annotated, relating to tax credits47
57		-	for contributions to rural hospital organizations, is amended by revising subsections (e) and48
58		-	(k) as follows:49
59		-	"(e)(1) In no event shall the aggregate amount of tax credits allowed under this Code50
60		-	section exceed $75 million per taxable year.51
61		-	(2)(A) No more than $4 million of the aggregate limit established by paragraph (1) of52
62		-	this subsection shall be contributed to any individual rural hospital organization in any53
63		-	taxable year. From January 1 to June 30 each taxable year, the commissioner shall only54
64		-	preapprove contributions submitted by individual taxpayers in an amount not to exceed55
65		-	$2 million, and from corporate donors in an amount not to exceed $2 million. From56
66		-	July 1 to December 31 each taxable year, subject to the aggregate limit in paragraph (1)57
67		-	of this subsection and the individual rural hospital organization limit in this paragraph,58
68		-	the commissioner shall approve contributions submitted by individual taxpayers and59
69		-	corporations or other entities.60
70		-	(B) In the event an individual or corporate donor desires to make a contribution to an61
71		-	individual rural hospital organization that has received the maximum amount of62
72		-	contributions for that taxable
73		-	year, the Department of Community Health shall provide63
74		-	the individual or corporate donor with a list, ranked in order of financial need, as64
75		-	determined by the Department of Community Health, of rural hospital organizations65
76		-	still eligible to receive contributions for the taxable year.66
77		-	(C) In the event an individual or corporate donor desires to make a contribution to an67
78		-	individual rural hospital organization that would cause such rural hospital organization68
79		-	to exceed its maximum amount of contributions for that year, the commissioner shall69 23 LC 43 2830S
	62	+	and nontax revenues shall exclude any state revenue collections which were previously
	63	+	44
	64	+	distributed to the state general fund and then appropriated or allocated to local school45
	65	+	systems; and provided, further, that if the total tax revenues collected by a municipal46
	66	+	government exceed the amount of all revenues which it distributed to its school system,47
	67	+	the total amount of revenues distributed to the school system shall be designated as tax48
	68	+	revenues in the report of the Department of Revenue to the state board;49
	69	+	(2) The number of exemptions granted for state-wide constitutional homestead50
	70	+	exemptions for owner occupied homes pursuant to Code Section 48-5-44, exclusive of51
	71	+	those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and52
	72	+	48-5-52, for the preceding calendar year;53
	73	+	(3) The number of exemptions granted for state-wide constitutional homestead54
	74	+	exemptions for disabled veterans pursuant to Code Section 48-5-48 for the preceding55
	75	+	calendar year; and
	76	+	56
	77	+	(4) The difference between the actual assessed valuation of agricultural property and the57
	78	+	valuation that would be assessed if all agricultural property were assessed at 40 percent58
	79	+	of its fair market value as provided in Code Section 48-5-7, adjusted pursuant to59
	80	+	paragraph (4) of subsection (d) of this Code section; and60
	81	+	(5) The value of all tangible personal property for which level 1 freeport exemptions61
	82	+	pursuant to Code Sections 48-5-48.1 and 48-5-48.2 were granted for that year."62
	83	+	"(g) For purposes of calculation under this Code section and Code Section 20-2-165, the63
	84	+	equalized adjusted school property tax digest, adjusted by paragraph (1) of subsection (a)64
	85	+	of this Code section, shall be reduced by the sum of the following products:65
	86	+	(1) The product of the number of constitutional homestead exemptions for owner66
	87	+	occupied homes pursuant to Code Section 48-5-44 granted for that year, exclusive of67
	88	+	those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and68
	89	+	48-5-52, multiplied by the amount per exemption authorized under Code Section 48-5-44;69
	90	+	provided, further, that in any city operating an independent school system which provides70 23 LC 33 9456S
	91	+	H. B. 504 (SUB)
80	92		- 4 -
81		-	not deny such desired contribution, but shall approve the proportional amount of the
82		-	70
83		-	desired contribution up to the rural hospital organization's maximum allowed amount;71
84		-	any remainder shall be attributed as provided for in subparagraph (D) of this paragraph.72
85		-	(C)(D) In the event that an individual or corporate donor desires to make a contribution73
86		-	to an unspecified or undesignated rural hospital organization, either directly to the74
87		-	department or through a third party that participates in soliciting, administering, or75
88		-	managing donations, such donation shall be attributed to the rural hospital organization76
89		-	ranked with the highest financial need that has not yet received the maximum amount77
90		-	of contributions for that taxable year, regardless of whether a third party has a78
91		-	contractual relationship or agreement with such rural hospital organization.79
92		-	(D)(E) Any third party that participates in soliciting, advertising, or managing80
93		-	donations shall provide the complete list of rural hospital organizations eligible to81
94		-	receive the tax credit provided pursuant to this Code section including their ranking in82
95		-	order of financial need as determined by the Department of Community Health83
96		-	pursuant to Code Section 31-8-9.1, to any potential donor regardless of whether a third84
97		-	party has a contractual relationship or agreement with such rural hospital organization.85
98		-	(3) For purposes of paragraphs (1) and (2) of this subsection, a rural hospital86
99		-	organization shall notify a potential donor of the requirements of this Code section.87
100		-	Before making a contribution to a rural hospital organization, the taxpayer shall88
101		-	electronically notify the department, in a manner specified by the department, of the total89
102		-	amount of contribution that the taxpayer intends to make to the rural hospital90
103		-	organization. The commissioner shall preapprove or deny the requested amount or a91
104		-	portion of such amount, if applicable pursuant to subparagraph (C) of paragraph (2) of92
105		-	this subsection, within 30 days after receiving the request from the taxpayer and shall93
106		-	provide written notice to the taxpayer and rural hospital organization of such preapproval94
107		-	or denial which shall not require any signed release or notarized approval by the taxpayer.95
108		-	In order to receive a tax credit under this Code section, the taxpayer shall make the96 23 LC 43 2830S
	93	+	a homestead exemption through local legislation comparable to that provided in Code
	94	+	71
	95	+	Section 48-5-44, the product calculated in this paragraph shall represent the number of72
	96	+	homestead exemptions provided through the applicable local legislation multiplied by the73
	97	+	amount per exemption authorized in Code Section 48-5-44, or by the amount per74
	98	+	exemption authorized in the applicable local legislation, whichever is less; and provided,75
	99	+	further, that if the amount per exemption authorized in Code Section 48-5-44 has been76
	100	+	changed subsequent to the year of the applicable digest, the more recently adopted77
	101	+	amount per exemption shall be used for the product calculated in this paragraph;78
	102	+	(2) The product of the number of constitutional homestead exemptions for disabled79
	103	+	veterans pursuant to Code Section 48-5-48 granted for that year, multiplied by the amount80
	104	+	per exemption authorized under that Code section; provided, further, that in any city81
	105	+	operating an independent school system which provides a homestead exemption through82
	106	+	local legislation comparable to that provided in Code Section 48-5-48, the product83
	107	+	calculated in this paragraph shall represent the number of homestead exemptions84
	108	+	provided through the applicable local legislation multiplied by the amount per exemption85
	109	+	authorized in the applicable local legislation, whichever is less; and provided, further, that86
	110	+	if the amount per exemption authorized in Code Section 48-5-48 has been changed87
	111	+	subsequent to the year of the applicable digest, the more recently adopted amount per88
	112	+	exemption shall be used for the product calculated in this paragraph;89
	113	+	(3) The product of the estimated number of persons age 65 or older residing in the local90
	114	+	school system during that year multiplied by 5,000;91
	115	+	(4) The product which results from the following calculations:92
	116	+	(A) Subtract the estimated state-wide percentage that persons age 65 or older is of the93
	117	+	total population, excluding military personnel and institutional population, from the94
	118	+	respective percentage for the local school system. If the respective percentage for the95
	119	+	local school system is less than the state-wide percentage, a difference of zero shall be96
	120	+	used in the calculations in this paragraph;97 23 LC 33 9456S
	121	+	H. B. 504 (SUB)
109	122		- 5 -
110		-	contribution to the rural hospital organization within 180 days after receiving notice from
111		-	97
112		-	the department that the requested amount was preapproved. In order to receive a tax98
113		-	credit under this Code section, a taxpayer preapproved by the department on or before99
114		-	September 30 shall make the contribution to the rural hospital organization within 180100
115		-	days after receiving notice of preapproval from the department, but not later than October101
116		-	31. A taxpayer preapproved by the department after September 30 shall make the102
117		-	contribution to the rural hospital organization on or before December 31. If the taxpayer103
118		-	does not comply with this paragraph, the commissioner shall not include this preapproved104
119		-	contribution amount when calculating the limits prescribed in paragraphs (1) and (2) of105
120		-	this subsection.106
121		-	(4)(A) Preapproval of contributions by the commissioner shall be based solely on the107
122		-	availability of tax credits subject to the aggregate total limit established under108
123		-	paragraph (1) of this subsection and the individual rural hospital organization limit109
124		-	established under paragraph (2) of this subsection.110
125		-	(B) Any taxpayer preapproved by the department pursuant to this subsection shall111
126		-	retain their approval in the event the credit percentage in this Code section is modified112
127		-	for the year in which the taxpayer was preapproved.113
128		-	(C) Upon the rural hospital organization's confirmation of receipt of donations that114
129		-	have been preapproved by the department, any taxpayer preapproved by the department115
130		-	pursuant to subsection (c) of this Code section shall receive the full benefit of the116
131		-	income tax credit established by this Code section even though the rural hospital117
132		-	organization to which the taxpayer made a donation does not properly comply with the118
133		-	reports or filings required by this Code section.119
134		-	(5) Notwithstanding any laws to the contrary, the department shall not take any adverse120
135		-	action against donors to rural hospital organizations if the commissioner preapproved a121
136		-	donation for a tax credit prior to the date the rural hospital organization is removed from122
137		-	the Department of Community Health list pursuant to Code Section 31-8-9.1, and all such123 23 LC 43 2830S
138		-	- 6 -
139		-	donations shall remain as preapproved tax credits subject only to the donor's compliance124
140		-	with paragraph (3) of this subsection."125
141		-	"(k) This Code section shall stand automatically repealed on December 31, 2024
142		-	2026."126
143		-	PART II127
144		-	SECTION 2-1.128
145		-	Code Section 48-7-29.21 of the Official Code of Georgia Annotated, relating to tax credits129
146		-	for qualified education donations for the purpose of awarding grants to public schools, is130
147		-	amended by revising paragraph (1) of subsection (f) and by adding a new subsection to read131
148		-	as follows:132
149		-	"(f)(1) In no event shall the aggregate amount of tax credits allowed under this Code133
150		-	section exceed $5 million per tax year."134
151		-	"(j) This Code section shall stand repealed and reserved on December 31, 2026."135
152		-	SECTION 2-2.136
153		-	An Act relating to education and to revenue and taxation to authorize the Public Education137
154		-	Innovation Fund Foundation to receive private donations to be used for grants to public138
155		-	schools; to provide for grant criteria; to provide for an income tax credit for qualified139
156		-	education donations; to provide for conditions and limitations; to provide for powers, duties,140
157		-	and authority of the state revenue commissioner with respect to such donations, approved141
158		-	April 27, 2017 (Ga L. 2017, p. 100), is amended by repealing Section 3.142 23 LC 43 2830S
159		-	- 7 -
160		-	PART III143
161		-	SECTION 3-1.144
162		-	(a) This Act shall become effective on July 1, 2023; provided, however, that Part I and145
163		-	Section 2-1 of this Act shall become effective on January 1, 2024.146
164		-	(b) This Act shall be applicable to taxable years beginning on or after January 1, 2024.147
165		-	SECTION 3-2.148
166		-	All laws and parts of laws in conflict with this Act are repealed.149
	123	+	(B) Multiply the difference which results from subparagraph (A) of this paragraph by
	124	+	98
	125	+	1,000; and99
	126	+	(C) Multiply the product which results from subparagraph (B) of this paragraph by the100
	127	+	estimated number of persons age 65 or older residing in the local school system during101
	128	+	that year; and
	129	+	102
	130	+	(5) The product which results from the following calculations:103
	131	+	(A) Divide the amount reported in paragraph (4) of subsection (e) of this Code section104
	132	+	by the average ratio of assessed value to true value used to calculate the most recent105
	133	+	equalized adjusted school property tax digest pursuant to Code Section 48-5-274; and106
	134	+	(B) Multiply the quotient which results from subparagraph (A) of this paragraph by .4;107
	135	+	and108
	136	+	(6) The value of all tangible personal property for which level 1 freeport exemptions109
	137	+	pursuant to Code Sections 48-5-48.1 and 48-5-48.2 were granted for that year, multiplied110
	138	+	by .4."111
	139	+	SECTION 2.112
	140	+	All laws and parts of laws in conflict with this Act are repealed.113