07 LC
25 4644
House
Bill 421
By:
Representatives Buckner of the
130th,
Crawford of the
127th,
Benfield of the
85th,
Epps of the
128th,
and Jamieson of the
28th
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 ad valorem tax treatment of bona fide conservation use property, so as to
change certain provisions relating to acreage limits; to change certain
provisions relating to eligible property owners; to provide for certain
conditions that shall not constitute a breach of covenant; to provide for a
contingent effective date; to provide for contingent automatic repeal; 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 ad
valorem tax treatment of bona fide conservation use property, is amended by
revising the introductory language of paragraph (1) of subsection (a) as
follows:
"(1)
Not more
than 2,000 acres of tangible real
Real
property of a single owner,
without any
limitation on acreage, the primary purpose
of which
property
is any good faith production, including but not limited to subsistence farming
or commercial production, from or on the land of agricultural products or
timber, subject to the following qualifications:"
SECTION
2.
Said
Code section is further amended by revising subparagraph (a)(1)(C) as
follows:
"(C)
Except as otherwise provided in division (vii) of this subparagraph, such
property must be owned by:
(i)
One or more natural or naturalized citizens;
(ii)
An estate of which the devisees or heirs are one or more natural or naturalized
citizens;
(iii)
A trust of which the beneficiaries are one or more natural or naturalized
citizens;
(iv)
A family owned farm entity, such as a family corporation, a family partnership,
a family general partnership, a family limited partnership, a family limited
corporation, or a family limited liability company, all of the interest of which
is owned by one or more natural or naturalized citizens related to each other by
blood or marriage within the fourth degree of civil reckoning, except that,
solely with respect to a family limited partnership, a corporation, limited
partnership, limited corporation, or limited liability company may serve as a
general partner of the family limited partnership and hold no more than a 5
percent interest in such family limited partnership, an estate of which the
devisees or heirs are one or more natural or naturalized citizens, or a trust of
which the beneficiaries are one or more natural or naturalized citizens and
which family owned farm entity derived 80 percent or more of its gross income
from bona fide conservation uses, including earnings on investments directly
related to past or future bona fide conservation uses, within this state within
the year immediately preceding the year in which eligibility is sought;
provided, however, that in the case of a newly formed family farm entity, an
estimate of the income of such entity may be used to determine its
eligibility;
(iv.1)
Any person engaged in the production of timber;
(v)
A bona fide nonprofit conservation organization designated under Section
501(c)(3) of the Internal Revenue Code;
(vi)
A bona fide club organized for pleasure, recreation, and other nonprofitable
purposes pursuant to Section 501(c)(7) of the Internal Revenue Code;
or
(vii)
In the case of constructed storm-water wetlands, any person may own such
property;"
SECTION
3.
Said
Code section is further amended by revising paragraphs (2) and (3) of subsection
(p) as follows:
"(2)
Allowing all or part of the property subject to the covenant to lie fallow or
idle for purposes of any land conservation program, for purposes of any federal
agricultural assistance program, or for other agricultural
or
timber management purposes;
(3)
Allowing all or part of the property subject to the covenant to lie fallow or
idle due to economic or financial hardship
or natural
disaster if the owner notifies the board
of tax assessors on or before the last day for filing a tax return in the county
where the land lying fallow or idle is located and if such owner does not allow
the land to lie fallow or idle for more than two years of any five-year
period;"
SECTION
4.
This
Act shall become effective on January 1, 2009, only if an amendment to the
Constitution to remove an acreage restriction on bona fide conservation use
property for purposes of current use taxation is ratified by the voters at the
November, 2008, general election. If such an amendment is not so ratified, this
Act shall not become effective and shall stand repealed on January 1,
2009.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.