05 LC 18
3966
House
Bill 116
By:
Representative O`Neal of the
146th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating
to ad valorem taxation of property, so as to change certain definitions
regarding such taxation; to provide an effective date; to repeal conflicting
laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
5 of Title 48 of the Official Code of Georgia Annotated, relating to ad valorem
taxation of property, is amended by striking Code Section 48-5-2, relating to
definitions regarding such taxation, and inserting in its place a new Code
Section 48-5-2 to read as follows:
"48-5-2.
As
used in this chapter, the term:
(1)
'Current use value' of bona fide conservation use property means the amount a
knowledgeable buyer would pay for the property with the intention of continuing
the property in its existing use and in an
arḿs
length, bona fide sale and shall be determined in accordance with the
specifications and criteria provided for in subsection (b) of Code Section
48-5-269.
(2)
'Current use value' of bona fide residential transitional property means the
amount a knowledgeable buyer would pay for the property with the intention of
continuing the property in its existing use and in an
arḿs
length, bona fide sale. The tax assessor shall consider the following criteria,
as applicable, in determining the current use value of bona fide residential
transitional property:
(A)
The current use of such property;
(B)
Annual productivity; and
(C)
Sales data of comparable real property with and for the same existing
use.
(3)
'Fair market value of property' means the amount a knowledgeable buyer would pay
for the property and a willing seller would accept for the property at an
arḿs
length, bona fide sale. With respect to the valuation of equipment, machinery,
and fixtures when no ready market exists for the sale of the equipment,
machinery, and fixtures, fair market value may be determined by resorting to any
reasonable, relevant, and useful information available including, but not
limited to, the original cost of the property, any depreciation or obsolescence,
and any increase in value by reason of inflation. Each tax assessor shall have
access to any public records of the taxpayer for the purpose of discovering such
information.
(A)
In determining the fair market value of a going business where its continued
operation is reasonably anticipated, the tax assessor may value the equipment,
machinery, and fixtures which are the property of the business as a whole where
appropriate to reflect the accurate fair market value.
(B)
The tax assessor shall consider the following criteria in determining the fair
market value of real property:
(i)
Existing zoning of property;
(ii)
Existing use of property, including any restrictions or limitations on the use
of property resulting from state or federal law or rules or regulations adopted
pursuant to the authority of state or federal law;
(iii)
Existing covenants or restrictions in deed dedicating the property to a
particular use; and
(iv)
Any other factors deemed pertinent in arriving at fair market
value.
(B.1)
The tax assessor shall not consider any income tax credits with respect to real
property which are claimed and granted pursuant to either Section 42 of the
Internal Revenue Code of 1986, as amended, or Chapter 7 of this title in
determining the fair market value of real property.
(C)
Fair market value of 'historic property' as such term is defined in subsection
(a) of Code Section 48-5-7.2 means:
(i)
For the first eight years in which the property is classified as 'rehabilitated
historic property,' the value equal to the greater of the acquisition cost of
the property or the appraised fair market value of the property as recorded in
the county tax digest at the time preliminary certification on such property was
received by the county board of tax assessors pursuant to subsection (c) of Code
Section 48-5-7.2;
(ii)
For the ninth year in which the property is classified as 'rehabilitated
historic property,' the value of the property as determined by division (i) of
this subparagraph plus one-half of the difference between such value and the
current fair market value exclusive of the provisions of this subparagraph;
and
(iii)
For the tenth and following years, the fair market value of such property as
determined by the provisions of this paragraph, excluding the provisions of this
subparagraph.
(D)
Fair market value of 'landmark historic property' as such term is defined in
subsection (a) of Code Section 48-5-7.3 means:
(i)
For the first eight years in which the property is classified as 'landmark
historic property,' the value equal to the greater of the acquisition cost of
the property or the appraised fair market value of the property as recorded in
the county tax digest at the time certification on such property was received by
the county board of tax assessors pursuant to subsection (c) of Code Section
48-5-7.3;
(ii)
For the ninth year in which the property is classified as 'landmark historic
property,' the value of the property as determined by division (i) of this
subparagraph plus one-half of the difference between such value and the current
fair market value exclusive of the provisions of this subparagraph;
and
(iii)
For the tenth and following years, the fair market value of such property as
determined by the provisions of this paragraph, excluding the provisions of this
subparagraph.
(E)
Timber shall be valued at its fair market value at the time of its harvest or
sale in the manner specified in Code Section 48-5-7.5.
(F)
Fair market value of 'brownfield property' as such term is defined in subsection
(a) of Code Section 48-5-7.6 means:
(i)
Unless sooner disqualified pursuant to subsection (e) of Code Section 48-5-7.6,
for the first ten years in which the property is classified as 'brownfield
property,' the value equal to the lesser of the acquisition cost of the property
or the appraised fair market value of the property as recorded in the county tax
digest at the time application was made to the Environmental Protection Division
of the Department of Natural Resources for participation under Article 9 of
Chapter 8 of Title 12, the 'Hazardous Sites Reuse and Redevelopment Act,' as
amended;
(ii)
Unless sooner disqualified pursuant to subsection (e) of Code Section 48-5-7.6,
for the eleventh and following years, the fair market value of such property as
determined by the provisions of this paragraph, excluding the provisions of this
subparagraph.
(4)
'Foreign merchandise in transit' means personal property of any description
which has been or will be moved by waterborne commerce through any port located
in this state and:
(A)
Which has entered the export stream, although temporarily stored or warehoused
in the county where the port of export is located; or
(B)
Which was shipped from a point of origin located outside the customs territory
of the United States and on which United States customs duties are paid at or
through any customs district or port located in this state, although stored or
warehoused in the county where the port of entry is located while in transit to
a final
destination."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.