HB 1189 - Ad valorem tax; certain property; preferential treatment

First Reader Summary

A BILL to amend Article 1 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to general provisions relative to ad valorem taxation of property, so as to provide for the approval and filing of applications for preferential or current use assessment of tangible real property devoted to agricultural use, bona fide conservation use property, and bona fide residential transitional property; and for other purposes.

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HB 1189                                            HB 1189/AP 
 
      H. B. No. 1189 (AS PASSED HOUSE AND SENATE) 
      By:  Representatives Walker of the 141st, Skipper of the 
      137th, Royal of the 164th, Buck of the 135th and Jamieson of 
      the 22nd 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 1 of Chapter 5 of Title 48 of the Official 
  1- 2  Code of Georgia Annotated, relating to general provisions 
  1- 3  relative to ad valorem taxation of property, so as to 
  1- 4  provide for the approval and filing of applications for 
  1- 5  preferential or current use assessment of  tangible real 
  1- 6  property devoted to agricultural use, bona fide conservation 
  1- 7  use property, and bona fide residential transitional 
  1- 8  property; to provide for the filing and recording of such 
  1- 9  approved applications and covenants in the real property 
  1-10  records of the county maintained by the clerk of the 
  1-11  superior court; to provide for fees; to provide for releases 
  1-12  and the approval, filing, and recording thereof; to repeal 
  1-13  conflicting laws; and for other purposes. 
 
  1-14       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-15                           SECTION 1. 
 
  1-16  Article 1 of Chapter 5 of Title 48 of the Official Code of 
  1-17  Georgia Annotated, relating to general provisions relative 
  1-18  to ad valorem taxation of property, is amended by striking 
  1-19  subsection (k) of Code Section 48-5-7.1, relating to 
  1-20  tangible real property devoted to agricultural use and 
  1-21  preferential tax assessment thereof, and inserting in its 
  1-22  place the following: 
 
  1-23    "(k) All applications for preferential assessment, 
  1-24    including the covenant agreement required under this Code 
  1-25    section, shall be filed on or before the last day for 
  1-26    filing ad valorem tax returns in the county for the tax 
  1-27    year for which such preferential assessment shall be first 
  1-28    applicable. An application for continuation of 
  1-29    preferential assessment upon a change in ownership of the 
  1-30    qualified property shall be filed on or before the last 
  1-31    date for filing tax returns in the year following the year 
  1-32    in which the change in ownership occurred.  Applications 
  1-33    for preferential assessment shall be filed with the county 
  1-34    board of tax assessors who shall approve or deny the 
  1-35    application.  If the application is approved on or after 
 
 
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  2- 1    July 1, 1998, the county board of tax assessors shall file 
  2- 2    a copy of the approved application in the office of the 
  2- 3    clerk of the superior court in the county in which the 
  2- 4    eligible property is located.  The clerk of the superior 
  2- 5    court shall file and index such application in the real 
  2- 6    property records maintained in the clerk's office. 
  2- 7    Applications approved prior to July 1, 1998, shall be 
  2- 8    filed and indexed in like manner without payment of any 
  2- 9    fee.  If the application is not so recorded in the real 
  2-10    property records, a transferee of the property affected 
  2-11    shall not be bound by the covenant or subject to any 
  2-12    penalty for its breach.  The fee of the clerk of the 
  2-13    superior court for recording such applications approved on 
  2-14    or after July 1, 1998, shall be paid by the owner of the 
  2-15    eligible property with the application for preferential 
  2-16    treatment and shall be paid to the clerk by the board of 
  2-17    tax assessors when the application is filed with the 
  2-18    clerk.  If the application is denied, the board of tax 
  2-19    assessors shall notify the applicant in the same manner 
  2-20    that notices of assessment are given pursuant to Code 
  2-21    Section 48-5-306 and shall return any filing fees advanced 
  2-22    by the owner.  Appeals from the denial of an application 
  2-23    by the board of tax assessors shall be made in the same 
  2-24    manner that other property tax appeals are made pursuant 
  2-25    to Code Section 48-5-311. As to property approved for 
  2-26    preferential assessment prior to July 1, 1998, the county 
  2-27    board of tax assessors shall file copies of all approved 
  2-28    applications in the office of the clerk of the superior 
  2-29    court not later than August 14, 1998, and the clerk shall 
  2-30    file, index, and record such approved applications, as 
  2-31    provided for in this subsection, with the fee of the clerk 
  2-32    of the superior court for filing, indexing, and recording 
  2-33    to be paid out of the general funds of the county." 
 
  2-34                           SECTION 2. 
 
  2-35  Said article is further amended by adding at the end of said 
  2-36  Code Section 48-5-7.1 a new subsection (t) to read as 
  2-37  follows: 
 
  2-38    "(t) At such time as the property ceases to be eligible 
  2-39    for preferential assessment or when any ten-year covenant 
  2-40    period expires and the property does not qualify for 
  2-41    further preferential assessment, the owner of the property 
  2-42    shall file an application for release of preferential 
  2-43    treatment with the county board of tax assessors who shall 
  2-44    approve the release upon verification that all taxes and 
 
 
 
                                 -2- 
 
 
 
  3- 1    penalties with respect to the property have been 
  3- 2    satisfied. After the application for release has been 
  3- 3    approved by the board of tax assessors, the board shall 
  3- 4    file the release in the office of the clerk of the 
  3- 5    superior court in the county in which the original 
  3- 6    covenant was filed. The clerk of the superior court shall 
  3- 7    file and index such release in the real property records 
  3- 8    maintained in the clerk's office. The fee of the clerk of 
  3- 9    the superior court for recording such release shall be 
  3-10    paid by the owner of the property with the application for 
  3-11    release from preferential treatment, and such fee shall be 
  3-12    paid to the clerk by the board of tax assessors when the 
  3-13    release is filed with the clerk.  The commissioner shall 
  3-14    by regulation provide uniform release forms." 
 
  3-15                           SECTION 3. 
 
  3-16  Said article is further amended by striking subsection (j) 
  3-17  of Code Section 48-5-7.4, relating to bona fide conservation 
  3-18  use property and bona fide residential transitional 
  3-19  property, and inserting in its place the following: 
 
  3-20      "(j)(1) All applications for current use assessment 
  3-21      under this Code section, including the covenant 
  3-22      agreement required under this Code section, shall be 
  3-23      filed on or before the last day for filing ad valorem 
  3-24      tax returns in the county for the tax year for which 
  3-25      such current use assessment is sought, except that in 
  3-26      the case of property which is the subject of a 
  3-27      reassessment by the board of tax assessors an 
  3-28      application for current use assessment may be filed in 
  3-29      conjunction with or in lieu of an appeal of the 
  3-30      reassessment.  An application for continuation of such 
  3-31      current use assessment upon a change in ownership of all 
  3-32      or a part of the qualified property shall be filed on or 
  3-33      before the last date for filing tax returns in the year 
  3-34      following the year in which the change in ownership 
  3-35      occurred.  Applications for current use assessment under 
  3-36      this Code section shall be filed with the county board 
  3-37      of tax assessors who shall approve or deny the 
  3-38      application.  If the application is approved on or after 
  3-39      July 1, 1998, the county board of tax assessors shall 
  3-40      file a copy of the approved application in the office of 
  3-41      the clerk of the superior court in the county in which 
  3-42      the eligible property is located.  The clerk of the 
  3-43      superior court shall file and index such application in 
  3-44      the real property records maintained in the clerk's 
 
 
 
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  4- 1      office.  Applications approved prior to July 1, 1998, 
  4- 2      shall be filed and indexed in like manner without 
  4- 3      payment of any fee.  If the application is not so 
  4- 4      recorded in the real property records, a transferee of 
  4- 5      the property affected shall not be bound by the covenant 
  4- 6      or subject to any penalty for its breach.  The fee of 
  4- 7      the clerk of the superior court for recording such 
  4- 8      applications approved on or after July 1, 1998, shall be 
  4- 9      paid by the owner of the eligible property with the 
  4-10      application for preferential treatment and shall be paid 
  4-11      to the clerk by the board of tax assessors when the 
  4-12      application is filed with the clerk.  If the application 
  4-13      is denied, the board of tax assessors shall notify  the 
  4-14      applicant in the same manner that notices of assessment 
  4-15      are given pursuant to Code Section 48-5-306 and shall 
  4-16      return any filing fees advanced by the owner. Appeals 
  4-17      from the denial of an application by the board of tax 
  4-18      assessors shall be made in the same manner that other 
  4-19      property tax appeals are made pursuant to Code Section 
  4-20      48-5-311. 
 
  4-21      (2) In the event such application is approved, the 
  4-22      taxpayer shall continue to receive annual notification 
  4-23      of any change in the fair market value of such property 
  4-24      and any appeals with respect to such valuation shall be 
  4-25      made in the same manner as other property tax appeals 
  4-26      are made pursuant to Code Section 48-5-311." 
 
  4-27                           SECTION 4. 
 
  4-28  Said article is further amended by adding at the end of said 
  4-29  Code Section 48-5-7.4 a new subsection (w) to read as 
  4-30  follows: 
 
  4-31    "(w) At such time as the property ceases to be eligible 
  4-32    for current use assessment or when any ten-year covenant 
  4-33    period expires and the property does not qualify for 
  4-34    further current use assessment, the owner of the property 
  4-35    shall file an application for release of current use 
  4-36    treatment with the county board of tax assessors who shall 
  4-37    approve the release upon verification that all taxes and 
  4-38    penalties with respect to the property have been 
  4-39    satisfied.  After the application for release has been 
  4-40    approved by the board of tax assessors, the board shall 
  4-41    file the release in the office of the clerk of the 
  4-42    superior court in the county in which the original 
  4-43    covenant was filed. The clerk of the superior court shall 
  4-44    file and index such release in the real property records 
 
 
                                 -4- 
 
 
 
  5- 1    maintained in the clerk's office. The fee of the clerk of 
  5- 2    the superior court for recording such release shall be 
  5- 3    paid by the owner of the property with the application for 
  5- 4    release from current use treatment, and such fee shall be 
  5- 5    paid to the clerk by the board of tax assessors when the 
  5- 6    release is filed with the clerk.  The commissioner shall 
  5- 7    by regulation provide uniform release forms." 
 
  5- 8                           SECTION 5. 
 
  5- 9  All laws and parts of laws in conflict with this Act are 
  5-10  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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