hb848_HB_848_AP_6.html
06 HB 848/AP
House Bill 848 (AS PASSED HOUSE AND SENATE)
By: Representatives Butler of the 18th, Maxwell of the 17th, England of the 108th, Roberts of the 154th, and Stephens of the 164th

A BILL TO BE ENTITLED
AN ACT

To amend Part 1 of Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to tax exemptions, so as to provide for an ad valorem tax exemption for certain charitable institutions; to provide a homestead exemption to certain residents who are senior citizens with respect to state ad valorem taxes; to provide qualifications; to provide procedures for obtaining such exemption; to provide for the taxes to which such homestead exemption is applicable; to provide for referenda, applicability, and effective dates; to provide for automatic repeal under certain circumstances; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I
SECTION 1.
Part 1 of Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to tax exemptions, is amended in Code Section 48-5-41, relating to property exempt from ad valorem taxation, by striking subsection (d) and inserting in its place a new subsection (d) to read as follows:
"(d)(1) Except as otherwise provided in paragraph (2) of this subsection, this This Code section, excluding paragraph (1) of subsection (a) of this Code section, shall not apply to real estate or buildings which are rented, leased, or otherwise used for the primary purpose of securing an income thereon and shall not apply to real estate or buildings which are not used for the operation of religious, educational, and charitable institutions. Donations of property to be exempted shall not be predicated upon an agreement, contract, or other instrument that the donor or donors shall receive or retain any part of the net or gross income of the property.
(2) With respect to paragraph (4) of subsection (a) of this Code section, real estate or buildings which are owned by a charitable institution that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code and used by such charitable institution for the charitable purposes of such charitable institution may be used for the purpose of securing income so long as such income is used exclusively for the operation of that charitable institution."

SECTION 2.
Unless prohibited by the federal Voting Rights Act of 1965, as amended, the Secretary of State shall call and conduct an election as provided in this section for the purpose of submitting Section 1 of this part to the electors of the State of Georgia for approval or rejection. The Secretary of State shall conduct that election on the date of the November, 2006, state-wide general election. The Secretary of State shall issue the call and conduct that special election as provided by general law. The Secretary of State shall cause the date and purpose of the special election to be published in the official organ of each county in the state once a week for two weeks immediately preceding the date of the referendum. The ballot shall have written or printed thereon the following:
"(  )  YES
  (  )  NO
Shall the Act be approved which grants an exemption from ad valorem taxation on property owned by a charitable institution which generates income when that income is used exclusively for the operation of such charitable institution?"
All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on such question are for approval of the Act, then Section 1 of this part shall become effective on January 1, 2007, and shall apply to all taxable years beginning on or after that date. If Section 1 of this part is not so approved or if the election is not conducted as provided in this section, Section 1 of this part shall not become effective and this part shall be automatically repealed on the first day of January immediately following that election date.

PART II
SECTION 3.
Said part is further amended by adding between Code Sections 48-5-48.2 and 48-5-49 a new Code Section 48-5-48.3 to read as follows:
"48-5-48.3.
(a) As used in this Code section, the term:
(1) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of the O.C.G.A., as amended, with the additional qualification that it shall include only the primary residence and not more than ten contiguous acres of land immediately surrounding such residence.
(2) "Senior citizen" means a person who is 65 years of age or over on or before January 1 of the year in which application for the exemption under this Code section is made.
(b) Any person who is a senior citizen and resident of Georgia is granted upon application an exemption on his or her homestead which such person owns and actually occupies as a residence and homestead in an amount equal to the actual levy for state ad valorem taxation made pursuant to Code Section 48-5-8 with respect to that homestead, such exemption being from all ad valorem taxation for state purposes. The value of all property in excess of the exempted amount cited above shall remain subject to taxation.
(c) The exemption shall be claimed and returned in the same manner as otherwise required under Code Section 48-5-50.1. Each person shall file for the exemption only once in the county of his or her residence. Once filed, the exemption shall automatically be renewed from year to year.
(d) The exemption granted by this Code section shall not apply to or affect county taxes, municipal taxes, or school district taxes.
(e) The exemption granted by this Code section shall be in addition to and not in lieu of any other homestead exemption from state taxes."

SECTION 4.
Unless prohibited by the federal Voting Rights Act of 1965, as amended, the Secretary of State shall call and conduct a referendum as provided in this section for the purpose of submitting Section 3 of this part to the electors of the State of Georgia for approval or rejection. The Secretary of State shall conduct that election on the date of and in conjunction with the November, 2006, state-wide general election. The Secretary of State shall cause the date and purpose of the election to be published once a week for two weeks immediately preceding the date thereof in the official organ of each county in the state. The ballot shall have written or printed thereon the words:
"(  )  YES

(  )  NO
Shall the Act be approved which provides a homestead exemption for senior citizens in an amount equal to the actual levy for state ad valorem tax purposes on the homestead?"
All persons desiring to vote for approval of the Act shall vote "Yes," and those persons desiring to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on such question are for approval of the Act, then Section 3 of this part shall become effective on January 1, 2007, and shall be applicable to all taxable years beginning on or after that date. If Section 3 of this part is not so approved or if the election is not conducted as provided in this section, Section 3 of this part shall not become effective and this part shall be automatically repealed on the first day of January immediately following that election date.
PART III
SECTION 5.
Except as otherwise provided in Section 2 of Part I of this Act and Section 4 of Part II of this Act, this Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.