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HB 553 - Local governments; homeowner tax relief grants

Smith, Jr., Charlie (175th)	Turnquest, Henrietta (73rd)	Dukes, Winfred (161st)
Day, Burke (153rd)	Royal, A. Richard (164th)	Buck, III, Thomas B (135th)

Status Summary	HC:	W&M	SC:	F&PU	FR:	02/10/99	LA:	04/15/99	Signed by Governor

First Reader Summary

A BILL to amend Title 36 of the Official Code of Georgia Annotated, relating to local government, so as to provide for homeowner tax relief grants to counties and local school districts; and for other purposes.

Code Sections - 36-89-1/ 36-89-2/ 36-89-3/ 36-89-4/ 36-89-5/ 36-89-6

HB 553                                          LC 18 9436-EC 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Title 36 of the Official Code of Georgia Annotated, 
  1- 2  relating to local government, so as to provide for homeowner 
  1- 3  tax relief grants to counties and local school districts; to 
  1- 4  define terms; to provide for the purpose of such grants; to 
  1- 5  authorize appropriations for such grants and specify the 
  1- 6  manner of such appropriation; to provide for calculation of 
  1- 7  the amount of such grants; to require the granting of 
  1- 8  certain credits against county and school ad valorem taxes 
  1- 9  as a condition of such grants; to provide for amount and 
  1-10  manner of granting of such credits; to provide for 
  1-11  administration and the adoption of rules and regulations by 
  1-12  the state revenue commissioner; to provide for return to the 
  1-13  state treasury of excess grant amounts; to provide for 
  1-14  recovery of erroneously granted credit amounts; to provide 
  1-15  for other related matters; to provide an effective date; to 
  1-16  repeal conflicting laws; and for other purposes. 
 
  1-17       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-18                           SECTION 1. 
 
  1-19  Title 36 of the Official Code of Georgia Annotated, relating 
  1-20  to local government, is amended by adding a new Chapter 89 
  1-21  to read as follows: 
 
 
 
  1-22    36-89-1. 
 
  1-23    As used in this chapter, the term: 
 
  1-24      (1) 'County millage rate' means the ad valorem tax 
  1-25      millage rate levied by a county for county purposes and 
  1-26      applying to all qualified homesteads in the county, not 
  1-27      including any millage levied for purposes of bonded 
  1-28      indebtedness and not including any millage levied for 
  1-29      school purposes. 
 
  1-30      (2) 'Eligible assessed value' means a certain stated 
  1-31      amount of the assessed value of each qualified homestead 
  1-32      in the state.  The amount of the eligible assessed value 
 
 
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  2- 1      for any given year shall be fixed in that year's General 
  2- 2      Appropriations Act. 
 
  2- 3      (3) 'Fiscal authority' means the political subdivision 
  2- 4      which levies and collects ad valorem taxes on behalf of 
  2- 5      a local school district and may, if appropriate, include 
  2- 6      a local school district itself but will generally refer 
  2- 7      to a county or municipality which levies and collects ad 
  2- 8      valorem taxes on behalf of a local school district. 
 
  2- 9      (4) 'Qualified homestead' means a homestead qualified 
  2-10      for any exemption, state, county, or school, authorized 
  2-11      under Code Section 48-5-44. 
 
  2-12      (5) 'School millage rate' means the ad valorem tax 
  2-13      millage rate levied by or on behalf of a local school 
  2-14      district and applying to all qualified homesteads in the 
  2-15      local school district, not including any millage levied 
  2-16      for purposes of bonded indebtedness and not including 
  2-17      any millage levied for county purposes. 
 
  2-18      (6) 'State millage rate' means the state millage levy. 
 
  2-19    36-89-2. 
 
  2-20    In any year the General Assembly may appropriate funds for 
  2-21    homeowner tax relief grants to counties and local school 
  2-22    districts, in order to provide for more effective 
  2-23    regulation and management of the finance and fiscal 
  2-24    administration of the state and pursuant to and in 
  2-25    furtherance of the provisions of Article III, Section IX, 
  2-26    Paragraph II(c) of the Constitution; Article VII, Section 
  2-27    III, Paragraph III of the Constitution; Article VIII, 
  2-28    Section I, Paragraph I of the Constitution; and other 
  2-29    provisions of the Constitution. 
 
  2-30    36-89-3. 
 
  2-31    In any year the General Assembly may appropriate to the 
  2-32    Department of Revenue funds to provide homeowner tax 
  2-33    relief grants to counties and local school districts. 
  2-34    When funds are so appropriated, the General Appropriations 
  2-35    Act shall specify the amount appropriated and the eligible 
  2-36    assessed value of each qualified homestead in the state 
  2-37    for the specified tax year.  If for any reason the amount 
  2-38    appropriated in the General Appropriations Act is 
  2-39    insufficient to fund the eligible assessed value stated in 
  2-40    the General Appropriations Act, the amount appropriated 
  2-41    may be adjusted in amendments to the General 
  2-42    Appropriations Act. 
 
 
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  3- 1    36-89-4. 
 
  3- 2    (a) When funds are appropriated as provided in Code 
  3- 3    Section 36-89-3, such grants shall be allotted to each 
  3- 4    county and local school district in the state as follows: 
 
  3- 5      (1) Immediately following the actual preparation of ad 
  3- 6      valorem property tax bills, each county tax commissioner 
  3- 7      shall notify the Department of Revenue of the total 
  3- 8      amount of tax revenue which would be generated by 
  3- 9      applying the sum of the state and county millage rates 
  3-10      to the eligible assessed value of each qualified 
  3-11      homestead in the county.  The total amount of actual tax 
  3-12      credits, so calculated, given to all qualified 
  3-13      homesteads in the county shall be the amount of the 
  3-14      grant to that county; and 
 
  3-15      (2) Immediately following the actual preparation of ad 
  3-16      valorem property tax bills, each local school district's 
  3-17      fiscal authority shall notify the Department of Revenue 
  3-18      of the total amount of tax revenue which would be 
  3-19      generated by applying the school millage rate to the 
  3-20      eligible assessed value of each qualified homestead in 
  3-21      the local school district.  The total amount of actual 
  3-22      tax credits, so calculated, given to all qualified 
  3-23      homesteads in the local school district shall be the 
  3-24      amount of the grant to that local school district. 
 
  3-25    Credit amounts computed under paragraphs (1) and (2) of 
  3-26    this subsection shall be applied to reduce the otherwise 
  3-27    applicable tax liability on a dollar-for-dollar basis, but 
  3-28    the credit granted shall not in any case exceed the amount 
  3-29    of the otherwise applicable tax liability after the 
  3-30    granting of all applicable constitutional homestead 
  3-31    exemptions and millage rollbacks. 
 
  3-32    (b) The grant of funds to each county shall be conditioned 
  3-33    on the county reducing each qualified homestead's 
  3-34    otherwise applicable liability for county taxes for county 
  3-35    purposes by a credit amount calculated in paragraph (1) of 
  3-36    subsection (a) of this Code section. 
 
  3-37    (c) The grant of funds to each local school district shall 
  3-38    be conditioned on the local school district and its fiscal 
  3-39    authority reducing each qualified homestead's otherwise 
  3-40    applicable liability for school taxes by a credit amount 
  3-41    calculated in paragraph (2) of subsection (a) of this Code 
  3-42    section. 
 
 
 
                                 -3- 
 
 
 
  4- 1    (d) Each county and each fiscal authority shall show the 
  4- 2    credit amount on the tax bill, together with a prominent 
  4- 3    notice in substantially the following form: 'This 
  4- 4    reduction in your bill is the result of homeowner's tax 
  4- 5    relief enacted by the Governor and the General Assembly of 
  4- 6    the State of Georgia.' 
 
  4- 7    36-89-5. 
 
  4- 8    (a) The state revenue commissioner shall administer this 
  4- 9    chapter and shall adopt rules and regulations for the 
  4-10    administration of this chapter, including specific 
  4-11    instructions to local governments.  The state revenue 
  4-12    commissioner may adopt procedures for partial or 
  4-13    installment distribution of grants when the commissioner 
  4-14    determines that a full distribution will only result in 
  4-15    the necessity of return of funds under subsection (b) of 
  4-16    this Code section. 
 
  4-17    (b) If any excess funds remain from the funds granted to 
  4-18    any county or local school district under this chapter, 
  4-19    after the county or local school district complies with 
  4-20    the credit requirements of Code Section 38-89-4, such 
  4-21    excess funds shall be returned by the county or local 
  4-22    school district to the Department of Revenue. 
 
  4-23    36-89-6. 
 
  4-24    Any credit under this chapter which is erroneously or 
  4-25    illegally granted shall be recoverable by the political 
  4-26    subdivision granting such credit in the same manner as any 
  4-27    other delinquent tax." 
 
  4-28                           SECTION 2. 
 
  4-29  This Act shall become effective upon its approval by the 
  4-30  Governor or upon its becoming law without such approval. 
 
  4-31                           SECTION 3. 
 
  4-32  All laws and parts of laws in conflict with this Act are 
  4-33  repealed. 
 
 
 
 
 
 
 
 
 
 
 
                                 -4-