06 LC 18
5122
House
Bill 1293
By:
Representatives Royal of the
171st,
Floyd of the
147th,
Roberts of the
154th,
Channell of the
116th,
and O’Neal of the
146th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-5-7.4 of the Official Code of Georgia Annotated, relating
to bona fide conservation use property, so as to provide for additional acts
which constitute a breach of a conservation use covenant but incur a reduced
penalty; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-5-7.4 of the Official Code of Georgia Annotated, relating to bona
fide conservation use property, is amended by striking subsection (q) and
inserting in its place a new subsection (q) to read as follows:
"(q)
In the following cases, the penalty specified by subsection (l) of this Code
section shall not apply and the penalty imposed shall be the amount by which
current use assessment has reduced taxes otherwise due for the year in which the
covenant is breached, such penalty to bear interest at the rate specified in
Code Section 48-2-40 from the date of the breach:
(1)
Any case in which a covenant is breached solely as a result of the foreclosure
of a deed to secure debt or the property is conveyed to the lienholder without
compensation and in lieu of foreclosure, if:
(A)
The deed to secure debt was executed as a part of a bona fide commercial loan
transaction in which the grantor of the deed to secure debt received
consideration equal in value to the principal amount of the debt secured by the
deed to secure debt;
(B)
The loan was made by a person or financial institution who or which is regularly
engaged in the business of making loans; and
(C)
The deed to secure debt was intended by the parties as security for the loan and
was not intended for the purpose of carrying out a transfer which would
otherwise be subject to the penalty specified by subsection (l) of this Code
section;
(2)
Any case in which a covenant is breached solely as a result of a medically
demonstrable illness or disability which renders the owner of the real property
physically unable to continue the property in the qualifying use, provided that
the board of tax assessors shall require satisfactory evidence which clearly
demonstrates that the breach is the result of a medically demonstrable illness
or disability;
or
(3)
Any case in which a covenant is breached solely as a result of an owner electing
to discontinue the property in its qualifying use, provided such owner has
renewed without an intervening lapse at least once the covenant for bona fide
conservation use, has reached the age of 65 or older, and has kept the property
in a qualifying use under the renewal covenant for at least three years. Such
election shall be in writing and shall not become effective until filed with the
county board of tax
assessors.;
or
(4)
Any case in which a covenant is breached solely as a result of an owner electing
to discontinue the property in its qualifying use, provided such owner entered
into the covenant for bona fide conservation use for the first time after
reaching the age of 67 and has either owned the property for at least 15 years
or inherited the property and has kept the property in a qualifying use under
the covenant for at least three years. Such election shall be in writing and
shall not become effective until filed with the county board of tax
assessors."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.