Georgia 2025-2026 Regular Session

Georgia House Bill HB129 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25 HB 129/AP
2		-	House Bill 129 (AS PASSED HOUSE AND SENATE)
3		-	By: Representatives Cannon of the 172
4		-	nd
5		-	, Burchett of the 176
6		-	th
7		-	, Dickey of the 134
8		-	th
9		-	, Corbett
10		-	of the 174
11		-	th
12		-	, Huddleston of the 72
13		-	nd
14		-	, and others
	1	+	25 LC 44 3199S
	2	+	The Senate Committee on Rules offered the following
	3	+	substitute to HB 129:
15	4		A BILL TO BE ENTITLED
16	5		AN ACT
17		-	To amend Code Section 48-5-7.4 of the Official Code of Georgia Annotated, relating to
18		-	1
	6	+	To amend Code Section 48-5-7.4 of the Official Code of Georgia Annotated, relating to1
19	7		preferential assessment for bona fide conservation use property and bona fide residential2
20	8		transitional property, so as to remove a limitation on leased property as to certain entities; to3
21	9		amend Code Section 48-7-40.26A of the Official Code of Georgia Annotated, relating to tax4
22	10		credits for postproduction expenditures, so as to renew a tax credit for postproduction5
23	11		expenditures; to provide for related matters; to provide for an effective date and applicability;6
24	12		to repeal conflicting laws; and for other purposes.7
25	13		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
26	14		SECTION 1.9
27	15		Code Section 48-5-7.4 of the Official Code of Georgia Annotated, relating to preferential10
28	16		assessment for bona fide conservation use property and bona fide residential transitional11
29	17		property, is amended by revising subsection (b) as follows:12
30	18		"(b) Except in the case of the underlying portion of a tract of real property on which is13
31	19		actually located a constructed storm-water wetland, the following additional rules shall14
32	20		apply to the qualification of conservation use property for current use assessment:15
33		-	H. B. 129
34		-	- 1 - 25 HB 129/AP
35		-	(1) When one-half or more of the area of a single tract of real property is used for a
36		-	16
	21	+	- 1 - 25 LC 44 3199S
	22	+	(1) When one-half or more of the area of a single tract of real property is used for a16
37	23		qualifying purpose, then such tract shall be considered as used for such qualifying17
38	24		purpose unless some other type of business is being operated on the unused portion;18
39	25		provided, however, that such unused portion must be minimally managed so that it does19
40	26		not contribute significantly to erosion or other environmental or conservation problems.20
41	27		The lease of hunting rights or the use of the property for hunting purposes shall not21
42	28		constitute another type of business. The charging of admission for use of the property for22
43	29		fishing purposes shall not constitute another type of business;23
44		-	(2)(A)(i)
45		-	The owner of a tract, lot, or parcel of land totaling less than ten acres shall24
	30	+	(2)(A)(i) The owner of a tract, lot, or parcel of land totaling less than ten acres shall24
46	31		be required by the tax assessor to submit additional relevant records regarding proof25
47	32		of bona fide conservation use for qualified property that on or after May 1, 2012, is26
48	33		either first made subject to a covenant or is subject to a renewal of a previous27
49	34		covenant. The provisions of this paragraph relating to requiring additional relevant28
50	35		records regarding proof of bona fide conservation use shall not apply to such property29
51	36		if the owner of the subject property provides one or more of the following:30
52	37		(i)(I) Proof that such owner has filed with the Internal Revenue Service a31
53	38		Schedule E, reporting farm related income or loss, or a Schedule F, with Form 1040,32
54	39		or, if applicable, a Form 4835, pertaining to such property;33
55	40		(ii)(II) Proof that such owner has incurred expenses for the qualifying use; or34
56	41		(iii)(III) Proof that such owner has generated income from the qualifying use.35
57	42		(ii) Prior to a denial of eligibility under this paragraph, the tax assessor shall conduct36
58	43		and provide proof of a visual, on-site inspection of the property. Reasonable notice37
59	44		shall be provided to the property owner before being allowed a visual, on-site38
60	45		inspection of the property by the tax assessor.39
61	46		(B) The owner of a tract, lot, or parcel of land totaling ten acres or more shall not be40
62	47		required by the tax assessor to submit additional relevant records regarding proof of41
63		-	H. B. 129
64		-	- 2 - 25 HB 129/AP
65		-	bona fide conservation use for qualified property that on or after May 1, 2012, is either
66		-	42
	48	+	- 2 - 25 LC 44 3199S
	49	+	bona fide conservation use for qualified property that on or after May 1, 2012, is either42
67	50		first made subject to a covenant or is subject to a renewal of a previous covenant;43
68	51		(3) No property shall qualify as bona fide conservation use property if such current use44
69	52		assessment would result in any person who has a beneficial interest in such property,45
70	53		including any interest in the nature of stock ownership, receiving in any tax year any46
71	54		benefit of current use assessment as to more than 2,000 acres. If any taxpayer has any47
72	55		beneficial interest in more than 2,000 acres of tangible real property which is devoted to48
73	56		bona fide conservation uses, such taxpayer shall apply for current use assessment only49
74	57		as to 2,000 acres of such land;50
75	58		(4) No property shall qualify as bona fide conservation use property if it is leased to a51
76		-	person or entity which would not be entitled to conservation use assessment;
77		-	. This52
	59	+	person or entity which would not be entitled to conservation use assessment;. This52
78	60		paragraph shall not apply to a corporation, a partnership, a general partnership, a limited53
79	61		partnership, a limited corporation, or a limited liability company registered with the54
80	62		Secretary of State that meets the following conditions:55
81	63		(A)(i) Its ownership includes only natural or naturalized citizens;56
82	64		(ii) It has as its primary purpose the production of agricultural products or timber57
83	65		from or on the land, including, but not limited to, subsistence farming or commercial58
84	66		production; and59
85	67		(iii) It derives 80 percent or more of its gross income from bona fide conservation60
86	68		uses, including earnings on investments directly related to past or future bona fide61
87	69		conservation uses, within this state; or62
88	70		(B) At least one of its members has no less than a 25 percent ownership interest in the63
89	71		property being leased and would be entitled to conservation use assessment;64
90	72		(5) No property shall qualify as bona fide conservation use property if such property is65
91	73		at the time of application for current use assessment subject to a restrictive covenant66
92	74		which prohibits the use of the property for the specific purpose described in67
93		-	H. B. 129
94		-	- 3 - 25 HB 129/AP
95		-	subparagraph (a)(1)(E) of this Code section for which bona fide conservation use
96		-	68
	75	+	- 3 - 25 LC 44 3199S
	76	+	subparagraph (a)(1)(E) of this Code section for which bona fide conservation use68
97	77		qualification is sought; and69
98	78		(6) No otherwise qualified property shall be denied current use assessment on the70
99	79		grounds that no soil map is available for the county in which such property is located;71
100	80		provided, however, that, if no soil map is available for the county in which such property72
101	81		is located, the owner making an application for current use assessment shall provide the73
102	82		board of tax assessors with a certified soil survey of the subject property unless another74
103	83		method for determining the soil type of the subject property is authorized in writing by75
104	84		such board."76
105	85		SECTION 2.77
106	86		Code Section 48-7-40.26A of the Official Code of Georgia Annotated, relating to tax credits78
107	87		for postproduction expenditures, is amended by revising subsections (d) and (f) as follows:79
108	88		"(d) The tax credits allowed under this Code section for all postproduction companies shall80
109	89		be subject to the following aggregate annual caps:81
110		-	(1) For taxable years beginning on or after January 1, 2018
111		-	2026, and before January 1,82
	90	+	(1) For taxable years beginning on or after January 1, 2018 2026, and before January 1,82
112	91		2019 2031, the aggregate amount of tax credits allowed under this Code section shall not83
113	92		exceed $10 million; and84
114	93		(2) For taxable years beginning on or after January 1, 2019, and before January 1, 2020,85
115	94		the aggregate amount of tax credits allowed under this Code section shall not exceed $1086
116	95		million;87
117	96		(3) For taxable years beginning on or after January 1, 2020, and before January 1, 2023,88
118	97		the aggregate amount of tax credits allowed under this Code section shall not exceed $1089
119	98		million per year;90
120	99		(4) The tax credits allowed under this Code section shall not be available for taxable91
121	100		years beginning on or after January 1, 2023; and92
122		-	H. B. 129
123		-	- 4 - 25 HB 129/AP
	101	+	- 4 - 25 LC 44 3199S
124	102		(5) If the aggregate amount of tax credits claimed by taxpayers under this Code section93
125	103		during a year is less than the aggregate annual cap applicable to such year, the unclaimed94
126	104		portion of the aggregate annual cap shall be added to the aggregate annual cap applicable95
127	105		to the next succeeding year or years until it is fully claimed."96
128	106		"(f) For taxable years beginning on or after January 1, 2018 2026, and before January 1,97
129	107		2023 2031, the postproduction company shall report to the Department of Revenue on its98
130	108		Georgia income tax return the monthly average number of full-time employees subject to99
131	109		Georgia income tax withholding for the taxable year. For purposes of this subsection, the100
132	110		term 'full-time employee' shall mean a person who performs a job that requires a minimum101
133	111		of 35 hours a per week, and pays at or above the average wage earned in the county with102
134	112		the lowest average wage earned in this state, as reported in the most recently available103
135	113		annual issue of the Georgia Employment and Wages Averages Report of the Department104
136	114		of Labor. Notwithstanding Code Sections 48-2-15, 48-7-60, and 48-7-61, for such taxable105
137	115		years, the commissioner shall annually report to the House Committee on Ways and Means106
138	116		and the Senate Finance Committee. The report shall include the name, tax year beginning,107
139	117		and monthly average number of full-time employees for each postproduction company. 108
140	118		The first report shall be submitted by June 30, 2018, and each year thereafter by June 30."109
141	119		SECTION 3.110
142	120		This Act shall become effective upon its approval by the Governor or upon its becoming law111
143	121		without such approval and shall be applicable to all taxable years beginning on or after112
144	122		January 1, 2026.113
145	123		SECTION 4.114
146	124		All laws and parts of laws in conflict with this Act are repealed.115
147		-	H. B. 129
148	125		- 5 -