HR 816 - Real property; market value at acquisition; appraisal - CA

First Reader Summary

A RESOLUTION proposing an amendment to the Constitution so as to authorize, upon approval in a local referendum, the freezing of existing residential real property values and to provide that residential real property and interests therein shall be appraised for ad valorem tax purposes at their fair market value as of the date of the owner's acquisition thereof; and for other purposes.

Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7

HR 816                                             LC 18 8385 
 
 
 
 
 
 
                             A RESOLUTION 
 
  1- 1  Proposing an amendment to the Constitution so as to 
  1- 2  authorize, upon approval in a local referendum, the freezing 
  1- 3  of existing residential real property values and to provide 
  1- 4  that residential real property and interests therein shall 
  1- 5  be appraised for ad valorem taxation purposes at their fair 
  1- 6  market value as of the date of the owner's acquisition 
  1- 7  thereof; to provide for conditions and limitations; to 
  1- 8  provide for authority of the General Assembly with respect 
  1- 9  to the foregoing; to provide for the submission of this 
  1-10  amendment for ratification or rejection; and for other 
  1-11  purposes. 
 
  1-12       BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-13                           SECTION 1. 
 
  1-14  Article VII, Section I of the Constitution is amended by 
  1-15  striking Paragraph III and inserting in its place a new 
  1-16  Paragraph III to read as follows: 
 
  1-17      "Paragraph III. Uniformity; classification of property; 
  1-18    assessment of agricultural land; utilities.  Uniformity; 
  1-19    classification of property; assessment of residential real 
  1-20    property, agricultural land, historic property, standing 
  1-21    timber, and utilities. (a) All taxes shall be levied and 
  1-22    collected under general laws and for public purposes only. 
  1-23    Except as otherwise provided in subparagraphs (b), (b.1), 
  1-24    (c), (d), and (e) of this Paragraph, all taxation shall be 
  1-25    uniform upon the same class of subjects within the 
  1-26    territorial limits of the authority levying the tax. 
 
  1-27      (b)(1) Except as otherwise provided in this subparagraph 
  1-28      (b), classes of subjects for taxation of property shall 
  1-29      consist of residential real property, other tangible 
  1-30      property, and one or more classes of intangible personal 
  1-31      property, including money; provided, however, that any 
  1-32      taxation of intangible personal property may be repealed 
  1-33      by general law without approval in a referendum 
  1-34      effective for all taxable years beginning on or after 
  1-35      January 1, 1996. 
 
 
 
 
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  2- 1        (2) Subject to the conditions and limitations 
  2- 2      specified by law, each of the following types of 
  2- 3      property may be classified as a separate class of 
  2- 4      property for ad valorem property tax purposes and 
  2- 5      different rates, methods, and assessment dates may be 
  2- 6      provided for such properties: 
 
  2- 7          (A) Trailers;. 
 
  2- 8          (B) Mobile homes other than those mobile homes which 
  2- 9        qualify the owner of the home for a homestead 
  2-10        exemption from ad valorem taxation; and. 
 
  2-11          (C) Heavy-duty equipment motor vehicles owned by 
  2-12        nonresidents and operated in this state. 
 
  2-13        (3) Motor vehicles may be classified as a separate 
  2-14      class of property for ad valorem property tax purposes, 
  2-15      and such class may be divided into separate subclasses 
  2-16      for ad valorem purposes.  The General Assembly may 
  2-17      provide by general law for the ad valorem taxation of 
  2-18      motor vehicles including, but not limited to, providing 
  2-19      for different rates, methods, assessment dates, and 
  2-20      taxpayer liability for such class and for each of its 
  2-21      subclasses and need not provide for uniformity of 
  2-22      taxation with other classes of property or between or 
  2-23      within its subclasses.  The General Assembly may also 
  2-24      determine what portion of any ad valorem tax on motor 
  2-25      vehicles shall be retained by the state.  As used in 
  2-26      this subparagraph, the term 'motor vehicles' means all 
  2-27      vehicles which are self-propelled. 
 
  2-28      (b.1)(1) Except as otherwise provided in subparagraphs 
  2-29      (c) and (d) of this Paragraph: 
 
  2-30          (A) The value of residential real property and 
  2-31        interests therein shall not be changed from the 
  2-32        valuation of such property established for the 1998 
  2-33        taxable year except as a result of new construction, 
  2-34        additions, or improvements to the property of the 
  2-35        taxpayer which require a building permit; and 
 
  2-36          (B) Residential real property and interests therein 
  2-37        shall be appraised for ad valorem taxation purposes at 
  2-38        their fair market value as of the date of the owner's 
  2-39        acquisition thereof; provided, however, that in no 
  2-40        event shall the increase in the value of such 
  2-41        residential real property exceed a percentage greater 
  2-42        than the Consumer Price Index of the Bureau of Labor 
 
 
 
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  3- 1        Statistics of the United States Department of Labor 
  3- 2        for the calendar year immediately preceding the 
  3- 3        calendar year in which the new owner acquires such 
  3- 4        residential property and residential real property and 
  3- 5        interests therein shall be assessed for ad valorem 
  3- 6        taxation purposes at 40 percent of that fair market 
  3- 7        value. 
 
  3- 8        (2) The provisions of this subparagraph shall only 
  3- 9      become effective in a local taxing jurisdiction by 
  3-10      following either of the following procedures: 
 
  3-11          (A) Approval by a majority vote of the qualified 
  3-12        electors residing within the limits of the applicable 
  3-13        local taxing jurisdiction voting in a referendum 
  3-14        thereon in the manner provided by law; or 
 
  3-15          (B) The provisions of this subparagraph may be 
  3-16        initiated by a petition filed with the judge of the 
  3-17        probate court of the county containing, in cases of 
  3-18        counties with a population of 5,000 or less, the 
  3-19        signatures of at least 25 percent of the electors 
  3-20        registered to vote in the last general election; in 
  3-21        cases of counties with a population of more than 5,000 
  3-22        but not more than 50,000, at least 20 percent of the 
  3-23        electors registered to vote in the last general 
  3-24        election; and, in cases of a county with a population 
  3-25        of more than 50,000, at least 10 percent of the 
  3-26        electors registered to vote in the last general 
  3-27        election, which petition shall specifically set forth 
  3-28        the proposed revision.  The judge of the probate court 
  3-29        shall determine the validity of such petition within 
  3-30        60 days of its being filed with the judge of the 
  3-31        probate court. In the event the judge of the probate 
  3-32        court determines that such petition is valid, it shall 
  3-33        be said judge's duty to issue the call for an election 
  3-34        for the purpose of submitting such revision to the 
  3-35        registered electors of the county for their approval 
  3-36        or rejection.  Such call shall be issued not less than 
  3-37        ten nor more than 60 days after the date of the filing 
  3-38        of the petition.  The judge of the probate court shall 
  3-39        set the date of such election for a day not less than 
  3-40        60 nor more than 90 days after the date of such 
  3-41        filing.  The judge of the probate court shall cause a 
  3-42        notice of the date of said election to be published in 
  3-43        the official organ of the county once a week for three 
  3-44        weeks immediately preceding such date.  Said notice 
 
 
 
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  4- 1        shall also contain a synopsis of the proposed revision 
  4- 2        and shall state that a copy thereof is on file in the 
  4- 3        office of the judge of the probate court of the county 
  4- 4        for the purpose of examination and inspection by the 
  4- 5        public.  The judge of the probate court shall furnish 
  4- 6        anyone, upon written request, a copy of the proposed 
  4- 7        revision.  If more than one-half of the votes cast on 
  4- 8        such question are for approval of the revision, it 
  4- 9        shall become of full force and effect and shall be 
  4-10        applicable to all taxable years beginning on or after 
  4-11        January 1 of the year immediately following the year 
  4-12        in which such referendum was conducted; otherwise, it 
  4-13        shall be void and of no force and effect.  The expense 
  4-14        of such election shall be borne by the county, and it 
  4-15        shall be the duty of the judge of the probate court to 
  4-16        hold and conduct such election.  Such election shall 
  4-17        be held under the same laws and rules and regulations 
  4-18        as govern special elections, except as otherwise 
  4-19        provided in this subparagraph.  It shall be the duty 
  4-20        of the judge of the probate court to canvass the 
  4-21        returns and declare and certify the result of the 
  4-22        election.  It shall be said judge's further duty to 
  4-23        certify the result thereof to the Secretary of State 
  4-24        in accordance with the provisions of Article IX, 
  4-25        Section II, Paragraph I(g).  A referendum on any such 
  4-26        amendment or repeal shall not be held more often than 
  4-27        once each year.  In the event that the judge of the 
  4-28        probate court determines that such petition was not 
  4-29        valid, said judge shall cause to be published in 
  4-30        explicit detail the reasons why such petition is not 
  4-31        valid; provided, however, that, in any proceeding in 
  4-32        which the validity of the petition is at issue, the 
  4-33        tribunal considering such issue shall not be limited 
  4-34        by the reasons assigned.  Such publication shall be in 
  4-35        the official organ of the county in the week 
  4-36        immediately following the date on which such petition 
  4-37        is declared to be not valid. 
 
  4-38        (3) The General Assembly shall be authorized to 
  4-39      provide by general law for the implementation of this 
  4-40      subparagraph. 
 
  4-41      (c) Tangible real property, but no more than 2,000 acres 
  4-42    of any single property owner, which is devoted to bona 
  4-43    fide agricultural purposes shall be assessed for ad 
  4-44    valorem taxation purposes at 75 percent of the value which 
  4-45    other tangible real property is assessed.  No property 
 
 
                                 -4- 
 
 
 
  5- 1    shall be entitled to receive the preferential assessment 
  5- 2    provided for in this subparagraph if the property which 
  5- 3    would otherwise receive such assessment would result in 
  5- 4    any person who has a beneficial interest in such property, 
  5- 5    including any interest in the nature of stock ownership, 
  5- 6    receiving the benefit of such preferential assessment as 
  5- 7    to more than 2,000 acres.  No property shall be entitled 
  5- 8    to receive the preferential assessment provided for in 
  5- 9    this subparagraph unless the conditions set out below are 
  5-10    met: 
 
  5-11        (1) The property must be owned by: 
 
  5-12          (A)(i) One or more natural or naturalized citizens; 
 
  5-13            (ii) An estate of which the devisee or heirs are 
  5-14          one or more natural or naturalized citizens; or 
 
  5-15            (iii) A trust of which the beneficiaries are one 
  5-16          or more natural or naturalized citizens; or 
 
  5-17          (B) A family-owned farm corporation, the controlling 
  5-18        interest of which is owned by individuals related to 
  5-19        each other within the fourth degree of civil 
  5-20        reckoning, or which is owned by an estate of which the 
  5-21        devisee or heirs are one or more natural or 
  5-22        naturalized citizens, or which is owned by a trust of 
  5-23        which the beneficiaries are one or more natural or 
  5-24        naturalized citizens, and such corporation derived 80 
  5-25        percent or more of its gross income from bona fide 
  5-26        agricultural pursuits within this state within the 
  5-27        year immediately preceding the year in which 
  5-28        eligibility is sought. 
 
  5-29        (2) The General Assembly shall provide by law: 
 
  5-30          (A) For a definition of the term 'bona fide 
  5-31        agricultural purposes,' but such term shall include 
  5-32        timber production; 
 
  5-33          (B) For additional minimum conditions of eligibility 
  5-34        which such properties must meet in order to qualify 
  5-35        for the preferential assessment provided for herein, 
  5-36        including, but not limited to, the requirement that 
  5-37        the owner be required to enter into a covenant with 
  5-38        the appropriate taxing authorities to maintain the use 
  5-39        of the properties in bona fide agricultural purposes 
  5-40        for a period of not less than ten years and for 
  5-41        appropriate penalties for the breach of any such 
  5-42        covenant. 
 
 
                                 -5- 
 
 
 
  6- 1        (3) In addition to the specific conditions set forth 
  6- 2      in this subparagraph (c), the General Assembly may place 
  6- 3      further restrictions upon, but may not relax, the 
  6- 4      conditions of eligibility for the preferential 
  6- 5      assessment provided for herein. 
 
  6- 6      (d) The General Assembly shall be authorized by general 
  6- 7    law to establish as a separate class of property for ad 
  6- 8    valorem tax purposes any tangible real property which is 
  6- 9    listed in the National Register of Historic Places or in a 
  6-10    state historic register authorized by general law.  For 
  6-11    such purposes, the General Assembly is authorized by 
  6-12    general law to establish a program by which certain 
  6-13    properties within such class may be assessed for taxes at 
  6-14    different rates or valuations in order to encourage the 
  6-15    preservation of such historic properties and to assist in 
  6-16    the revitalization of historic areas. 
 
  6-17      (e) The General Assembly shall provide by general law: 
 
  6-18        (1) For the definition and methods of assessment and 
  6-19      taxation, such methods to include a formula based on 
  6-20      current use, annual productivity, and real property 
  6-21      sales data, of: 'bona fide conservation use property' to 
  6-22      include bona fide agricultural and timber land not to 
  6-23      exceed 2,000 acres of a single owner; and 'bona fide 
  6-24      residential transitional property,' to include private 
  6-25      single-family residential owner occupied property 
  6-26      located in transitional developing areas not to exceed 
  6-27      five acres of any single owner.  Such methods of 
  6-28      assessment and taxation shall be subject to the 
  6-29      following conditions: 
 
  6-30          (A) A property owner desiring the benefit of such 
  6-31        methods of assessment and taxation shall be required 
  6-32        to enter into a covenant to continue the property in 
  6-33        bona fide conservation use or bona fide residential 
  6-34        transitional use; and 
 
  6-35          (B) A breach of such covenant within ten years shall 
  6-36        result in a recapture of the tax savings resulting 
  6-37        from such methods of assessment and taxation and may 
  6-38        result in other appropriate penalties; 
 
  6-39        (2) That standing timber shall be assessed only once, 
  6-40      and such assessment shall be made following its harvest 
  6-41      or sale and on the basis of its fair market value at the 
  6-42      time of harvest or sale.  Said assessment shall be two 
  6-43      and one-half times the assessed percentage of value 
 
 
                                 -6- 
 
 
 
  7- 1      fixed by law for  other real property taxed under the 
  7- 2      uniformity provisions of subparagraph (a) of this 
  7- 3      Paragraph but in no event greater than its fair market 
  7- 4      value; and for a method of temporary supplementation of 
  7- 5      the property tax digest of any county if the 
  7- 6      implementation of this method of taxing timber reduces 
  7- 7      the tax digest by more than 20 percent, such 
  7- 8      supplemental assessed value to be assigned to the 
  7- 9      properties otherwise benefiting from such method of 
  7-10      taxing timber. 
 
  7-11      (f) The General Assembly may provide for a different 
  7-12    method and time of returns, assessments, payment, and 
  7-13    collection of ad valorem taxes of public utilities, but 
  7-14    not on a greater assessed percentage of value or at a 
  7-15    higher rate of taxation than other properties, except that 
  7-16    property provided for in subparagraph (c), (d), or (e)." 
 
  7-17                           SECTION 2. 
 
  7-18  The above proposed amendment to the Constitution shall be 
  7-19  published and submitted as provided in Article X, Section I, 
  7-20  Paragraph II of the Constitution. 
 
  7-21  The ballot submitting the above proposed amendment shall 
  7-22  have written or printed thereon the following: 
 
  7-23    "(  ) YES Shall the Constitution be amended so as to 
  7-24              authorize, upon approval in a local 
  7-25     (  ) NO  referendum, the freezing of existing 
  7-26              residential real property values and to 
  7-27              provide that residential real property and 
  7-28              interests therein shall be appraised for ad 
  7-29              valorem taxation purposes at their fair market 
  7-30              value as of the date of the owner's 
  7-31              acquisition thereof?" 
 
  7-32  All persons desiring to vote in favor of ratifying the 
  7-33  proposed amendment shall vote "Yes."  All persons desiring 
  7-34  to vote against ratifying the proposed amendment shall vote 
  7-35  "No." 
 
  7-36  If such amendment shall be ratified as provided in said 
  7-37  Paragraph of the Constitution, it shall become a part of the 
  7-38  Constitution of this state. 
 
 
 
 
 
 
 
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