25 HB 223/AP
House Bill 223 (AS PASSED HOUSE AND SENATE)
By: Representatives Burchett of the 176
th
, Efstration of the 104
th
, McDonald III of the 26
th
,
Hong of the 103
rd
, Gambill of the 15
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and
1
taxation, so as to authorize certain local governing authorities to provide temporary tax relief2
from ad valorem taxes levied for the harvest or sale of standing timber from eligible timber3
property that was severely damaged or destroyed in certain disaster areas; to provide for4
conditions and procedures; to provide for the establishment of a certification form; to provide5
for audits; to provide for grants to such local governing authorities to offset the loss of certain6
revenues resulting from certain disaster damage to standing timber and such temporary tax7
relief; to provide for an appropriations contingency; to provide for a grant cap; to provide for8
the calculation of equalized adjusted property tax digests; to require the establishment of9
criteria regarding damage or destruction; to exclude from the calculation of taxable net10
income certain disaster relief or assistance grant program payments and crop insurance11
proceeds for agricultural losses suffered due to Hurricane Helene; to provide for refundable12
income tax credits for certain timber producers based on certain casualty losses related to13
Hurricane Helene; to provide for transferability of such credits; to provide for an aggregate14
annual cap; to provide for terms and conditions; to provide for credit preapproval; to provide15
for legislative findings; to provide for definitions; to provide for a sales and use tax16
exemption for a limited period of time for building materials used to repair or replace17
greenhouses and real property structures or fixtures used exclusively for the production of18
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animals; to provide for rules and regulations; to provide for definitions; to provide for related
19
matters; to provide for a short title and legislative findings and intent; to provide for an20
effective date; to repeal conflicting laws; and for other purposes.21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:22
PART I23
SECTION 1-1.24
This part shall be known and may be cited as the "Timberlands Recovery, Exemption, and25
Earnings Stability (TREES) Act."26
SECTION 1-2.27
The General Assembly finds that:28
(1) Hurricane Helene has had a catastrophic impact on the citizens and the economy of29
many areas in this state, has particularly devastated the timber industry on which the30
citizens of southwest Georgia are heavily dependent for their livelihood by reducing or31
eliminating the long-held investments in standing timber and timberlands of businesses and32
families, and has created both a public fire hazard and a danger of insect infestations due33
to the massive amounts of downed timber caused by the severity of this natural disaster;34
(2) As of November, 2024, the estimated losses to standing timber caused by Hurricane35
Helene as measured by the State Forestry Commission were nearly $1.3 billion;36
(3) Timberlands as investments are unique as an agriculture product in this state, as timber37
products often take ten years or longer to realize any return on the investment;38
(4) Many counties, municipalities, and local school districts rely on the taxes levied at the39
time of timber's harvest or sale pursuant to Code Section 48-5-7.5, but with the destruction40
of timberlands throughout this state, that tax revenue will likely not be realized; and41
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(5) It is the intent of the General Assembly to authorize local governing authorities to
42
provide temporary tax relief from the taxes levied pursuant to Code 48-5-7.5 so that the43
timber industry, and the businesses and families that provide timber products to such44
industry, will realize a reduced cost for growing new product and recovering from the45
devastating effects of Hurricane Helene. These reduced costs will help stabilize the market46
and allow for quicker harvesting and recovery of lands where some timber is still47
salvageable.48
SECTION 1-3.49
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is50
amended by adding a new Code section to read as follows:51
"48-5-33.1.
52
(a) As used in this Code section, the term:53
(1) 'Disaster area' means any county designated for public assistance or individual and54
public assistance pursuant to the Federal Emergency Management Agency55
FEMA-4830-DR Georgia disaster declaration as of November 4, 2024.56
(2) 'Eligible governing authority' means the governing authority of any county,57
consolidated government, or municipality or the governing body of any county or58
independent board of education that is located in whole or in part in the disaster area.59
(3) 'Eligible standing timber' means any timber which is subject to taxation pursuant to60
Code Section 48-5-7.5 that is on eligible timber property.61
(4) 'Eligible timber property' means any parcel, tract, stand, or other identifiable unit of62
property that:63
(A) Contains standing timber which would, in the ordinary course of business, be sold64
or harvested;65
(B) Is timberland property as such term is defined in Code Section 48-5-600;66
(C) Is located within the disaster area; and67
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(D) Was severely damaged or destroyed as a result of the natural disaster.68
(5) 'Severely damaged or destroyed' means damaged to the extent which would require69
salvage thinning, a salvage operation, or clear-cut of eligible standing timber based on70
criteria established by the State Forestry Commission pursuant to subsection (k) of this71
Code section.72
(b) Pursuant to Article VII, Section I, Paragraph III(h) of the Constitution of Georgia and73
in accordance with the provisions of this Code section, an eligible governing authority may74
grant temporary tax relief from taxes levied for eligible standing timber pursuant to Code75
Section 48-5-7.5 during:76
(1) The final quarter of 2024; and77
(2) Each quarter of 2025.78
(c) To grant the temporary tax relief authorized by subsection (b) of this Code section, an79
eligible governing authority shall adopt a resolution or ordinance that:80
(1) Declares that its jurisdiction contains eligible timber property;81
(2) Consents to grant the tax relief provided under this Code section;82
(3) Requires that taxpayers seeking such tax relief submit the certification established83
pursuant to subsection (f) of this Code section and that such certification shall be84
accepted by the eligible governing authority; and85
(4) Waives the levy and collection of payment of taxes otherwise due pursuant to Code86
Section 48-5-7.5 for the final quarter of 2024 and during each quarter of 2025.87
(d) Upon adoption of the resolution or ordinance provided under subsection (c) of this88
Code section, no taxpayer who submits the certification established pursuant to89
subsection (f) of this Code section shall be required to pay taxes otherwise levied pursuant90
to Code Section 48-5-7.5 for eligible standing timber during the final quarter of 2024 or91
during any quarter of 2025.92
(e) In the event taxes were levied and paid by a taxpayer pursuant to Code93
Section 48-5-7.5 for eligible standing timber during the final quarter of 2024 or during any94
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quarter of 2025, the eligible governing authority to which such taxes were payable or95
collected shall provide that a refund be issued to such taxpayer for the total amount paid96
in the same manner as otherwise provided under Code Section 48-5-380. If such taxes97
were levied but unpaid, the eligible governing authority to which such taxes are payable98
or collected shall waive payment and collection as provided in the resolution or ordinance99
adopted pursuant to subsection (c) of this Code section, and shall be provided by the tax100
collector or tax commissioner an updated tax bill reflecting that the amount is no longer101
due.102
(f)(1) A certification form shall be established by the State Forestry Commission in103
consultation with the commissioner and Association County Commissioners of Georgia104
within ten days of the effective of this Code section. In addition to requiring necessary105
identification and location information, such certification shall:106
(A) Require such taxpayer to declare that their otherwise taxable property is eligible107
standing timber;108
(B) Require such taxpayer to declare that they are making a claim for temporary tax109
relief for eligible standing timber pursuant to this Code section; and110
(C) Allow the taxpayer to attach photographs of their eligible timber property,111
verification by a registered forester that the otherwise taxable property is eligible timber112
property, or other supporting documentation.113
(2) Such certification shall be completed by the taxpayer and shall be submitted to the114
eligible governing authority as provided in the resolution or ordinance adopted pursuant115
to subsection (c) of this Code section.116
(3) The State Forestry Commission shall distribute or otherwise make available such117
certification form to taxpayers.118
(g) The State Forestry Commission is authorized to conduct audits of property for119
compliance with this Code section at the request of the tax collector or tax commissioner120
for an eligible governing authority. In the event the State Forestry Commission conducts121
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an audit and finds that the temporary tax relief granted to a taxpayer pursuant to this Code122
section was improper, the State Forestry Commission shall report such findings to the tax123
collector or tax commissioner who may pursue all remedies available by law as necessary124
to recapture the tax that would have been due but for being wrongfully claimed by a125
taxpayer.126
(h) Any temporary tax relief approved or allowed under this Code section shall be paid127
from funds of the eligible governing authority to which the taxes were or were to have been128
paid.129
(i)(1) For the purpose of offsetting an eligible governing authority's revenue loss in the130
final quarter of 2024 and any quarter of 2025 due to the destruction of eligible standing131
timber in the disaster area and the temporary tax relief authorized pursuant to this Code132
section, the commissioner shall, subject to an appropriation by the General Assembly133
specifically referencing the provisions of this Code section, provide a grant to each134
eligible governing authority that has consented to grant the temporary tax relief135
authorized pursuant to this Code section.136
(2) A grant provided for in paragraph (1) of this subsection shall be allotted to each137
eligible governing authority based on:138
(A) The governing authority's estimated revenue loss as described in paragraph (1) of139
this subsection;140
(B) The revenue received by such governing authority pursuant to Code141
Section 48-5-7.5 in each of the preceding three years; and142
(C) The estimated damage to eligible standing timber in the jurisdiction as provided143
in the Hurricane Helene Timber Damage Assessment published by the State Forestry144
Commission on November 5, 2024, or other reliable data from the State Forestry145
Commission.146
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(3) No grant to an eligible governing authority provided pursuant to paragraph (1) of this147
subsection shall exceed the average of the total revenue received by such governing148
authority pursuant to Code Section 48-5-7.5 in 2021, 2022, and 2023.149
(j)(1) The grants provided pursuant to subsection (i) of this Code section shall not be150
included in the calculation of the equalized adjusted property tax digest under Code151
Section 48-5-274 for the purpose of calculating the required local five mill share for152
school funding purposes under Code Section 20-2-164.153
(2) The temporary tax relief authorized pursuant to this Code section shall not affect the154
requirement provided for in paragraph (2) of subsection (m) of Code Section 48-5-7.5155
that the fair market value of timber harvested or sold be added to a digest and be included156
in the calculation of the equalized adjusted property tax digest under Code157
Section 48-5-274 for the purpose of calculating the required local five mill share for158
school funding purposes under Code Section 20-2-164.159
(k)(1) The commissioner, tax collectors, and tax commissioners shall be authorized to160
consult with the State Forestry Commission to implement the provisions of this Code161
section.162
(2) The State Forestry Commission shall establish criteria for determining whether163
timber property is severely damaged or destroyed. In establishing such criteria, such164
commission may consider:165
(A) The average damage sustained throughout the timber property;166
(B) Whether the timber property has adequate remaining trees per acre to maintain167
viable timber property; and168
(C) The risk of insect and disease damage to the timber property as a result of the169
disaster.170
(l) The commissioner may promulgate any rules and regulations necessary to implement171
and administer the provisions this Code section."172
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PART II
173
SECTION 2-1.174
Said title is further amended in Code Section 48-7-27, relating to computation of taxable net175
income, by adding new paragraphs to subsection (a) to read as follows:176
"(11.3) For taxable years beginning on or after January 1, 2025, and ending on or before
177
December 31, 2029, income received as payments from a federal disaster relief or178
assistance grant program administered by this state or its instrumentalities or the United179
States Department of Agriculture, if such federal grant program was established180
specifically to address agricultural losses suffered due to Hurricane Helene which was a181
weather event declared to be a major disaster in this state by the President of the United182
States during the 2024 calendar year, to the extent such income is included in federal183
adjusted gross income or federal taxable income;184
(11.4) For taxable years beginning on or after January 1, 2025, and ending on or before185
December 31, 2025, federal crop insurance proceeds received for the destruction or186
damage to crops due to Hurricane Helene which was a weather event declared to be a187
major disaster in this state by the President of the United States during the 2024 calendar188
year, to the extent such proceeds are included in federal adjusted gross income or federal189
taxable income;"190
SECTION 2-2.191
Said title is further amended by adding a new Code section to read as follows:192
"48-7-40.37.193
(a)(1) The General Assembly finds and determines that Hurricane Helene has had a194
catastrophic impact on the citizens and the economy of Georgia, has particularly195
devastated the timber industry on which the citizens of Georgia are heavily dependent for196
their livelihood, and has created both a public fire hazard and a danger of insect197
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infestations due to the massive amounts of downed timber caused by the severity of this198
natural disaster.199
(2) The General Assembly further finds and declares that it is appropriate and advisable200
to provide relief to the timber industry in the form of a tax credit targeted to those201
taxpayers that have suffered substantial economic losses and that will have to incur202
significant expenses for salvaging downed timber, site clearance, restoration, and203
reforestation over the coming years.204
(b) As used in this Code section, the term:205
(1) 'Disaster area' means the real property encompassed by the borders of the 66 counties206
included in the renewal of the State of Emergency pronounced in the Executive Order of207
the Governor dated October 29, 2024, and filed in the official records of the office of the208
Governor as Executive Order No. 10.29.24.01.209
(2) 'Eligible timber property' means timber which on September 24, 2024, was being210
grown by a taxpayer in a disaster area as part of a trade or business or a transaction211
entered into for profit.212
(3) 'Timber' means trees grown for the primary purpose of commercial production of213
food or wood or wood fiber products.214
(4) 'Timber casualty loss' means the amount of the diminution of value included in the215
computation of the casualty loss deduction for such casualty losses claimed and allowed216
pursuant to Section 165 of the Internal Revenue Code of 1986 as casualty losses incurred217
by a taxpayer between September 24, 2024, and December 31, 2024, as a result of218
damage to or destruction of eligible timber property caused by Hurricane Helene.219
(c)(1) A taxpayer shall be allowed tax credits against the tax imposed by this article in220
an amount equal to 100 percent of such taxpayer's timber casualty loss; provided,221
however, that the credit amount shall not exceed the number of the taxpayer's affected222
acres of eligible timber property in such disaster areas multiplied by $550.00.223
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(2) To be allowed such tax credits, a taxpayer shall submit an application for preapproval224
of such credits based on timber casualty losses incurred by such taxpayer by225
December 31, 2025.226
(d)(1) The commissioner shall require preapproval applications to contain such227
information as is necessary to substantiate a taxpayer's eligibility for tax credits allowed228
pursuant to this Code section.229
(2) The commissioner is authorized to require electronic submission of preapproval230
applications in the manner specified by the commissioner.231
(3) The commissioner shall review completed preapproval applications in the order in232
which such applications were submitted and shall provide notice to each taxpayer that233
submitted an application within 30 days of receipt stating whether such taxpayer's234
application is complete or incomplete.235
(4) In no event shall the commissioner preapprove tax credits pursuant to this Code236
section in an amount that exceeds $200 million in aggregate.237
(5) In the event that properly completed and timely submitted preapproval applications238
are submitted for an amount that exceeds the amount of funds available to fully fund the239
tax credits requested, the commissioner shall prorate the available funds between or240
among the applicants.241
(6) The commissioner shall approve properly completed and timely submitted242
preapproval applications and issue a preapproval certificate to the taxpayer by243
January 31, 2026, certifying the amount of credits such taxpayer is eligible to claim if the244
taxpayer meets the conditions of this Code section.245
(e) In no event shall the amount of the tax credits allowed pursuant to this Code section246
exceed $200 million in aggregate.247
(f)(1)(A) Tax credits allowed pursuant to this Code section shall be eligible to be248
claimed only by the taxpayer to which the commissioner issued a preapproval249
certificate.250
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(B) Tax credits allowed pursuant to this Code section shall only be claimed in the251
taxable year in which the taxpayer first completes:252
(i) The restoration of each acre for which timber casualty losses were incurred to a253
condition that has an adequately stocked stand that is expected to result in forest254
products or ecological services in the foreseeable future; or255
(ii) The replanting of timber in a quantity projected to yield at maturity at least 90256
percent of the value of the timber casualty loss claimed. Such timber shall be planted257
within the same county in which the eligible timber property was being grown when258
the timber casualty loss was incurred. Timber market conditions as of259
September 25, 2024, shall be used for the purposes of establishing projected value.260
(2) To claim tax credits allowed pursuant to this Code section, a taxpayer shall attach to261
such taxpayer's state tax return certification from the taxpayer that the requirements of262
this Code section have been met and any other information required by the commissioner,263
including information which demonstrates that it has completed the restoration or264
replanting of timber required pursuant to paragraph (1) of this subsection.265
(3) Any tax credits allowed pursuant to this Code section shall be claimed on or before266
December 31, 2030.267
(g)(1) The total amount of the tax credits allowed pursuant to this Code section for a268
taxable year may exceed the taxpayer's income tax liability. Such tax credits allowed in269
excess of a taxpayer's income tax liability shall be refundable to such taxpayer, provided270
that such taxpayer is the same taxpayer that incurred the timber casualty loss.271
(2) Tax credits claimed pursuant to this Code section but not used in any taxable year272
may be carried forward for ten years from the close of the taxable year in which the273
credits are claimed.274
(h) Tax credits claimed pursuant to this Code section but neither used by the taxpayer275
against its income tax liability nor refunded may be transferred or sold one time to one276
single other Georgia taxpayer, subject to the following conditions:277
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(1) Only the taxpayer that claimed the tax credits allowed pursuant to this Code section278
shall make the transfer or sale of such tax credits;279
(2) The taxpayer that claimed the tax credits allowed pursuant to this Code section shall280
submit to the commissioner written notification of any transfer or sale of such tax credits281
within 30 days after the transfer or sale of the tax credits. Such written notification shall282
include:283
(A) Such taxpayer's credit balance prior to transfer;284
(B) The credit certificate number;285
(C) The remaining balance of credits after transfer;286
(D) The tax identification number of the transferee;287
(E) The date of transfer;288
(F) The amount of credits transferred; and289
(G) Other information as may be required by the department;290
(3) Failure to comply with any provision of this subsection shall result in the291
disallowance of the tax credits allowed pursuant to this Code section until the taxpayer292
that claimed the credits is in full compliance;293
(4) The transfer or sale of the tax credits shall not extend the time during which such tax294
credits may be used. The carry-forward period for tax credits that are transferred or sold295
shall begin on the date on which such tax credits were originally claimed;296
(5) A transferee shall have only such rights to claim and use the tax credits that were297
available to the transferor at the time of the transfer; provided, however, that a transferee298
shall not be eligible to transfer or receive a refund of such tax credits. To the extent that299
the transferor did not have rights to claim or use the tax credits at the time of the transfer,300
the commissioner shall disallow the tax credits claimed by the transferee or recapture the301
tax credits from the transferee or transferor. The transferee's recourse shall not be against302
the commissioner; and303
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(6) The transferee shall acquire the tax credits allowed pursuant to this Code section for304
a minimum of 60 percent of the amount of the tax credits so transferred.305
(i)(1) A taxpayer claiming, transferring, or selling tax credits allowed pursuant to this306
Code section shall be required to reimburse the department for any department initiated307
audits relating to the tax credits, provided that such amount shall not exceed the value of308
the credits claimed by the taxpayer. This paragraph shall not apply to routine tax audits309
of such taxpayer that may include the review of the tax credits provided in this Code310
section.311
(2) The commissioner shall have access to timber property for the purpose of312
determining eligibility for both the preapproval and claiming of tax credits allowed and313
conducting audits pursuant to this Code section, provided that prior notice is given to any314
taxpayer that submitted a preapproval application or transferred or claimed tax credits315
pursuant to this Code section and the owner of the underlying real property.316
(3) The commissioner may pursue all remedies available by law as necessary to317
recapture tax credits wrongfully preapproved, allowed, or claimed by a taxpayer or a318
taxpayer's transferee.319
(4) The commissioner shall be authorized to consult with the State Forestry Commission320
as necessary to administer and enforce the provisions of this Code section.321
(j) The commissioner shall be authorized to promulgate any rules and regulations322
necessary to implement and administer the provisions of this Code section."323
SECTION 2-3.324
Said title is further amended in Chapter 8, relating to sales and use taxes, by revising325
paragraph (3) of subsection (a) of Code Section 48-8-3.3, relating to exemptions for326
agricultural operations and establishment of Georgia Agricultural Trust Fund, as follows:327
"(3)(A) 'Agricultural production inputs' means seed; seedlings; plants grown from seed,328
cuttings, or liners; fertilizers; insecticides; livestock and poultry feeds, drugs, and329
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instruments used for the administration of such drugs; fencing products and materials
330
used to produce agricultural products regardless of whether the fencing products or331
materials become incorporated into real property; fungicides; rodenticides; herbicides;332
defoliants; soil fumigants; plant growth regulating chemicals; desiccants, including, but333
not limited to, shavings and sawdust from wood, peanut hulls, fuller's earth, straw, and334
hay; feed for animals, including, but not limited to, livestock, fish, equine, hogs, or335
poultry; sugar used as food for honeybees kept for the commercial production of honey,336
beeswax, and honeybees; cattle, hogs, sheep, equine, poultry, or bees when sold for337
breeding purposes; ice or other refrigerants, including, but not limited to, nitrogen,338
carbon dioxide, ammonia, and propylene glycol used in the processing for market or339
the chilling of agricultural products in storage facilities, rooms, compartments, or340
delivery trucks; materials, containers, crates, boxes, labels, sacks, bags, or bottles used341
for packaging agricultural products when the product is either sold in the containers,342
sacks, bags, or bottles directly to the consumer or when such use is incidental to the sale343
of the product for resale; and containers, plastic, canvas, and other fabrics used in the344
care and raising of agricultural products or canvas used in covering feed bins, silos,345
greenhouses, and other similar storage structures.346
(B)(i) For the period beginning on the effective date of this Act and ending on
347
December 31, 2025, such term also means building materials used to repair or348
replace:349
(I) Greenhouses; and350
(II) Real property structures or fixtures used exclusively for the production of351
animals, including, but not limited to, poultry sheds and livestock barns.352
(ii) Notwithstanding subsection (c) of Code Section 48-8-63, contractors shall not353
incur any use tax on any building materials that a qualified agricultural producer354
purchases tax-exempt under division (i) of this subparagraph for use in an agricultural355
operation and furnishes to such contractor for installation into real property."356
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PART III
357
SECTION 3-1.358
This Act shall become effective upon its approval by the Governor or upon its becoming law359
without such approval.360
SECTION 3-2.361
All laws and parts of laws in conflict with this Act are repealed.362
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