08 LC
14 9811
House
Bill 1215
By:
Representatives Davis of the
109th,
Barnard of the
166th,
Jacobs of the
80th,
Casas of the
103rd,
and Lunsford of the
110th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 44 of Title 36 of the Official Code of Georgia Annotated, the
"Redevelopment Powers Law," so as to eliminate provisions for school system and
school tax participation in tax allocation financing for redevelopment purposes;
to state legislative intent with respect to transactions previously entered into
and obligations previously incurred; to provide for other related matters; 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
44 of Title 36 of the Official Code of Georgia Annotated, the "Redevelopment
Powers Law," is amended by adding a new Code section to read as
follows:
"36-44-2.1.
The
General Assembly finds that the decision of the Georgia Supreme Court in Woodham
v. City of Atlanta (S07A1309, February 11, 2008) has invalidated the use of
school taxes under this chapter, at least prospectively. It is the intent of
the General Assembly in enacting the 2008 amendments to this chapter to conform
this chapter to the decision of the Supreme Court for the prospective guidance
and use of political subdivisions. The enactment of the 2008 amendments to this
chapter is not intended in and of itself to affect the validity of any
transactions previously entered into or to suggest any legislative determination
with respect to whether school taxes may or may not continue to be used for
purposes of transactions previously entered into and obligations previously
incurred under this chapter."
SECTION
2.
Said
chapter is further amended in Code Section 36-44-3, relating to definitions, by
revising the introductory language of paragraph (1), subparagraph (G) of
paragraph (8), and paragraph (16) as follows:
"(1)
'Ad valorem property taxes' means all ad valorem property taxes levied by each
political subdivision
and each
county and independent board of education consenting to the inclusion of that
board of education´s property taxes as being applicable to a tax allocation
district as provided by Code Section
36-44-9, except:"
"(G)
Payments to a political subdivision or board of education in lieu of taxes to
compensate for any loss of tax revenues or for any capital costs incurred
because of redevelopment activity; provided, however, that any such payments to
a political subdivision
or board of
education shall not exceed in any year the
amount of the contribution to the tax allocation increment in that year by such
political subdivision
or board of
education; and"
"(16)
'Taxable property' means all real and personal property subject to ad valorem
taxation by a political
subdivision,
including property subject to local ad valorem taxation for educational
purposes."
SECTION
3.
Said
chapter is further amended in Code Section 36-44-8, relating to creation of tax
allocation districts, by revising paragraph (1) as follows:
"(1)
Preparation by the redevelopment agency of a redevelopment plan for the proposed
tax allocation district and its submission for consent to the political
subdivision
or board of
education required to consent, if the plan
proposes to include in the tax allocation increment ad valorem property taxes
levied by a political subdivision
or board of
education required to consent to such
inclusion under Code Section 36-44-9, or if the plan proposes to pledge for
payment or security for payment of tax allocation bonds and other redevelopment
costs the general funds of a county required to consent to such inclusion under
Code Section 36-44-9;".
SECTION
4.
Said
chapter is further amended by revising Code Section 36-44-9, relating to
computation of tax allocation increments of districts, as follows:
"36-44-9.
(a)
When a tax allocation district is created within the area of operation of a
municipality by the local legislative body of such municipality, property taxes
for computing tax allocation increments shall be based on all ad valorem
property taxes levied by the municipality.
If the
municipality has an independent school system, ad valorem property taxes levied
for educational purposes by the municipality shall be included in computing the
tax allocation increments if the local legislative body of the municipality is
empowered to make the determination of the municipal ad valorem tax millage rate
for educational purposes. If the board of education of the independent school
system is empowered to set the ad valorem tax millage rate for educational
purposes and the local legislative body of the municipality does not have the
authority to modify such rate set by the board of education, the tax allocation
increment shall not be computed on the basis of municipal taxes for educational
purposes unless the board of education of the independent school system
consents, by resolution duly adopted by said board of education, to the
inclusion of educational ad valorem property taxes as a basis for computing tax
allocation increments.
(b)
County ad valorem property taxes may be included in the computation of tax
allocation increments of a municipal tax allocation district if the local
legislative body of the county consents to such inclusion by resolution duly
adopted by said local legislative body.
For those
municipalities which do not have an independent school system, ad valorem
property taxes levied for county school district purposes may be included in the
computation of tax allocation increments of a municipal tax allocation district
if the county board of education or the local legislative body of the county,
whichever is authorized to establish the ad valorem tax millage rate for
educational purposes, consents to such inclusion by resolution duly adopted by
said board of education or local legislative body, respectively.
(c)
When a tax allocation district is created within the area of operation of a
county by the local legislative body of the county, property taxes for computing
tax allocation increments shall be based on all county ad valorem property taxes
levied for county governmental purposes.
Ad valorem
property taxes levied for county school district purposes may be included in the
computation of tax allocation increments for a county tax allocation district if
the board of education of the county school district or the local legislative
body of the county, whichever is authorized to establish the ad valorem tax
millage rate for educational purposes, consents to such inclusion by resolution
duly adopted by said board of education or local legislative body,
respectively.
(d)
When a tax allocation district is created within the area of operation of a
consolidated government by the local legislative body of the consolidated
government, property taxes for computing tax allocation increments shall be
based on all consolidated government ad valorem property taxes levied for
consolidated government purposes.
Ad valorem
property taxes levied for school district purposes within the boundaries of the
consolidated government may be included in the computation of tax allocation
increments for a consolidated government tax allocation district if the board of
education of such school district or the local legislative body of the
consolidated government, whichever is authorized to establish the ad valorem tax
millage rate for educational purposes within the school district, consents to
such inclusion by resolution duly adopted by said board of education or local
legislative body, respectively.
(e)
The resolution of any county, municipality,
or
consolidated government
or board of
education consenting to the inclusion of
ad valorem property taxes in the computation of tax increments shall not specify
the inclusion of any ad valorem property taxes not specified in the resolution
creating the tax allocation district.
(f)
A county may pledge all or part of county general funds derived from a municipal
tax allocation district for payment or security of payment of tax allocation
bonds issued by the municipality and for payment of other redevelopment costs of
the tax allocation district if the local legislative body of the county consents
to the use of such general funds by resolution duly adopted by said local
legislative body."
SECTION
5.
Said
chapter is further amended in Code Section 36-44-11, relating to allocation of
positive tax allocation increments, by revising paragraph (1) of subsection (b)
as follows:
"(b)(1)
Each county tax collector or tax commissioner, municipal official responsible
for collecting municipal ad valorem property taxes, or consolidated government
official responsible for collecting consolidated government ad valorem property
taxes shall, on the dates provided by law for the payment of taxes collected to
the respective political subdivisions, pay over to the appropriate fiscal
officer of each political subdivision having created a tax allocation district,
out of taxes collected on behalf of such political subdivision, including but
not limited to taxes collected for a political subdivision
or board of
education consenting, pursuant to Code
Section 36-44-9, to inclusion of its ad valorem property taxes in the
computation of tax allocation increments for that tax allocation district, that
portion, if any, which represents positive tax allocation increments payable to
such political subdivision."
SECTION
6.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.