08 LC 18
6897
House
Resolution 1170
By:
Representatives Levitas of the
82nd,
Powell of the
29th,
McCall of the
30th,
Geisinger of the
48th,
Coan of the
101st,
and others
A
RESOLUTION
Proposing
an amendment to the Constitution so as to provide for a base-value exemption
from county ad valorem taxes for county purposes for homestead and nonhomestead
property in an amount equal to the amount by which the current-year assessed
value of the property exceeds the base value of such property in any county in
which such exemption is approved in a referendum; to provide for definitions; to
specify the terms and conditions of the exemption and procedures relating
thereto; to provide for applicability; to provide for the submission of this
amendment for ratification or rejection; and for other purposes.
BE
IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
VII, Section II of the Constitution is amended by adding new a Paragraph to read
as follows:
"Paragraph
VI.
Base-value
exemptions for homestead and nonhomestead
property. (a) For purposes of this
Paragraph, the term:
(1)
'Appraisal,' 'appraisal report,' 'appraiser,' or ' appraiser classification'
shall have the same meaning as those terms are defined by general law relating
to appraiser licensing.
(2)
'Appraisal valuation' means an estimate by an appraiser of applicable appraiser
classification of the value of real estate or real property based on an
appraisal.
(3)
'Base value' of a homestead means either the purchase price of the homestead
property paid by the most recent owner of such homestead or the 2002 assessed
value of the homestead, as determined pursuant to subparagraph (d) of this
Paragraph. 'Base value' of a nonhomestead property means the 2002 assessed
value of the nonhomestead property.
(4)
'County ad valorem taxes' means all ad valorem taxes for county purposes levied
by, for, or on behalf of a county, including, but not limited to, taxes to pay
interest on and to retire county bonded indebtedness.
(5)
'County´s appraisal valuation' or 'county´s valuation' means an
appraisal valuation or valuation obtained by a county pursuant to this
Paragraph.
(6)
'Fair market value' means the compensation that a knowledgeable buyer would pay
for a homestead property or nonhomestead property and a willing seller would
accept for the homestead property or nonhomestead property at an
arm´s-length, bona fide sale of such homestead or nonhomestead
property.
(7)
'Homestead' means the homestead as defined and qualified by general law for
other general law homestead exemptions, with the additional qualification that
it shall include not more than five contiguous acres of homestead
property.
(8)
'Immediate family member' means the spouse, child, stepchild, child´s
spouse, stepchild´s spouse, grandchild, stepgrandchild, grandchild´s
spouse, stepgrandchild´s spouse, parent, stepparent, parent-in-law,
sibling-in-law, niece, nephew, stepparent-in-law, sibling, or stepsibling of the
seller.
(9)
'Nonhomestead property' means any business or commercial real property or other
real property which does not qualify as a homestead.
(10)
'Purchase price' means the amount of total compensation that a buyer pays to
acquire a homestead or nonhomestead property from a willing seller in an
arm´s-length, bona fide sale of such homestead or nonhomestead property.
The term 'total compensation' shall include, without limitation, any in-kind
transfer, land transfer, or other transfer or exchange of a thing of value
given, directly or indirectly, to acquire such homestead property or
nonhomestead property.
(11)
'Taxpayer' means a person or entity subject to county ad valorem taxes for real
property owned by the person or entity as a homestead or as nonhomestead
property.
(12)
'Taxpayer´s appraisal valuation' or 'taxpayer´s valuation' means an
appraisal valuation or valuation obtained by a taxpayer pursuant to this
Paragraph.
(b)(1)
Each taxpayer is granted an exemption on that taxpayer´s homestead and
nonhomestead property from all county ad valorem taxes in an amount equal to the
amount by which the current-year assessed value of that homestead or
nonhomestead property exceeds the base value of that homestead or nonhomestead
property.
(2)
This exemption shall not apply to taxes assessed on improvements to such
homestead or nonhomestead property or to additional land that is added to such
homestead or nonhomestead property after January 1 of the base year. If any
real property is removed from such homestead or nonhomestead property, then the
base value shall be adjusted by the county tax commissioner to reflect such
removal, and any exemption shall be recalculated accordingly. The value of that
property in excess of such exempted amount shall remain subject to taxation;
provided, however, that the excess amount as determined by the tax commissioner
shall be subject to the provisions of subparagraph (d) of this
Paragraph.
(c)(1)
A taxpayer shall not receive an exemption granted by this Paragraph unless such
taxpayer or taxpayer´s agent files an application with the tax commissioner
of the county giving such information relative to receiving such exemption as
will enable the tax commissioner to make a determination regarding the
correctness of the base value and the initial and continuing eligibility of such
taxpayer for such exemption. The tax commissioner of the county shall provide
application forms for this purpose.
(2)
In order for a taxpayer to receive a base value in the amount of the purchase
price of the homestead, the taxpayer shall provide to the tax commissioner
copies of the closing documents regarding the sale of that homestead or other
proof which, in the objective judgment of the tax commissioner, is sufficient to
validate such purchase price. In the event that such proof is not provided, the
base value of that homestead shall be in the amount of its 2002 assessed value.
The General Assembly shall be authorized to provide by general law for
additional items of proof which shall be sufficient to establish the purchase
price for purposes of this subparagraph.
(d)
For purposes of determining valuation pursuant to this subparagraph and
subparagraphs (b)(2), (e), and (f) of this Paragraph, the county shall obtain an
appraisal valuation and shall provide such appraisal valuation to the taxpayer
in a written appraisal report documenting the fair market value of the property,
subject to the following conditions:
(1)
If the taxpayer disagrees with the county´s appraisal valuation, then the
taxpayer, within 45 days of receipt of the county´s appraisal report, may
obtain a separate appraisal valuation; otherwise, the county´s appraisal
valuation shall become the valuation of the homestead or nonhomestead property
for purposes of this Paragraph;
(2)
If the taxpayer obtains an appraisal valuation under this subparagraph within 45
days of receipt of the county´s appraisal report and if the difference
between the taxpayer´s appraisal valuation and the county´s appraisal
valuation is 20 percent or less, then the valuation of such property for the
purpose of any exemption granted by this Paragraph shall be the taxpayer´s
appraisal valuation; provided, however, that before the taxpayer´s
appraisal valuation shall become effective, the taxpayer shall provide the
taxpayer´s appraisal valuation to the county via certified mail, return
receipt requested, via priority mail, delivery confirmation requested, or via
statutory overnight delivery; and
(3)
If the difference between the taxpayer´s appraisal valuation and the
county´s appraisal valuation exceeds 20 percent and if the county does not
agree to the valuation determined by the taxpayer´s appraisal valuation,
then the county and taxpayer shall agree to an arbitrator or shall apply to the
superior court of the county, on a form approved by the clerk of the court, to
appoint an arbitrator. The cost of the application shall be borne by the
county, but in no event shall such cost exceed $50.00. The arbitrator shall be
appointed by the court to select which of the two appraisal valuations is closer
to the fair market value of the homestead or nonhomestead property, and the
closer appraisal valuation shall become the valuation of the homestead or
nonhomestead property for purposes of this Paragraph. The cost for the service
of the arbitrator shall be borne equally by the taxpayer and by the county.
(e)
Any exemption granted under this Paragraph shall be contingent upon the purchase
being a bona fide, arm´s-length transaction. The county shall be permitted
to challenge whether a purchase of a homestead or nonhomestead property was a
bona fide, arms´s-length transaction under the following
conditions:
(1)
Where the purchase was made, directly or indirectly, by a person or by an entity
controlled by such person or in which such person has a 20 percent or greater
interest in the purchasing entity, which person is an immediate family member of
the seller or, in the case of a seller that is an entity, by a person who is an
immediate family member of a person who controls or who has a 20 percent or
greater ownership interest in the selling entity;
(2)
Where the purchase was made for less than 75 percent of fair market value;
or
(3) Where
a taxpayer purchases or otherwise acquires a homestead or nonhomestead property
as the result of a foreclosure.
(f)
A taxpayer obtaining a homestead or nonhomestead property through bequest,
inheritance, or in-kind transfer shall obtain an appraisal of the homestead or
nonhomestead property for purposes of establishing valuation for purposes of
this Paragraph. If the county disagrees with the appraisal valuation obtained
by the taxpayer, then the county may seek its own appraisal valuation pursuant
to the provisions of subparagraph (d) of this Paragraph.
(g)
When, after purchasing a homestead or nonhomestead property, a taxpayer borrows
money or is otherwise extended credit at such taxpayer´s request based on
the value of such homestead or nonhomestead property, which value exceeds the
base value, as adjusted by any applicable subparagraphs of this Paragraph, the
higher valuation shall become the value of the homestead or nonhomestead
property for purposes of this Paragraph.
(h)
Any exemption shall be claimed and returned as provided by general law for other
homestead and nonhomestead property exemptions, as applicable. The homestead
exemption shall be automatically renewed from year to year so long as the
taxpayer granted the homestead exemption under this Paragraph occupies the
residence as a homestead. The nonhomestead property exemption shall be
automatically renewed from year to year so long as the taxpayer granted the
nonhomestead property exemption under this Paragraph directly owns the
nonhomestead property. After the taxpayer has filed the proper application as
provided in this Paragraph, it shall not be necessary to make application
thereafter for any year, and the exemption shall continue to be allowed to such
taxpayer, provided that such taxpayer is otherwise eligible to receive the
exemption. It shall be the duty of any taxpayer granted the homestead exemption
or nonhomestead property exemption under this Paragraph to notify the tax
commissioner of the county in the event that such taxpayer for any reason
becomes ineligible for that exemption.
(i)(1)
The homestead or nonhomestead property exemption granted by this Paragraph shall
not apply to or affect:
(A)
Any state ad valorem taxes, county or independent school district ad valorem
taxes for educational purposes, or municipal ad valorem taxes for municipal
purposes;
(B)
Any other ad valorem tax exemption for county taxes for county purposes provided
for under this Constitution or by general or local law; or
(C)
Any property receiving preferential assessment under subparagraph (c) or (e) of
Paragraph III of Section I of this Article as long as such property remains
subject to the appropriate covenant.
(2) An exemption granted by this Paragraph shall be in addition to and not
in lieu of any other ad valorem tax exemption.
(j)
The exemptions granted by this Paragraph shall apply to all taxable years
beginning on or after January 1 of the following the year in which the
referendum required under subparagraph (k) of this Paragraph is
approved.
(k)
The exemptions granted under this Paragraph with respect to county ad valorem
taxes shall only be implemented in a county following approval by a majority of
the qualified electors residing within the limits of the county voting in a
referendum thereon as follows:
(1)
Unless a special election is called and conducted in a county sooner, pursuant
to subparagraph (k)(2) of this Paragraph, the election superintendent of each
county shall call and conduct an election as provided in this subparagraph for
the purpose of submitting the exemptions to the electors of the county for
approval or rejection. In each county in which an election has not been
conducted sooner under subparagraph (k)(2) of this Paragraph, each election
superintendent shall conduct that election on the date of the 2010 state-wide
general election and shall issue the call and conduct that election as provided
by general law. Each election superintendent 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 the county. The ballot shall have
written or printed thereon the words:
|
'( ) YES
( ) NO
|
Shall
the base-value exemptions from ______________ county ad valorem taxes for county
purposes for a homestead and nonhomestead property in an amount equal to the
amount by which the current-year assessed value of the property exceeds the base
value of such property, effectively freezing such taxes, be
approved?'
|
All
persons desiring to vote for approval of the exemptions shall vote 'Yes,' and
all persons desiring to vote for rejection shall vote 'No.' If more than
one-half of the votes cast on such question are for approval of the exemptions,
the exemptions shall become of full force and effect in that county on January
1, 2011. If the exemptions are not so approved, they shall not become effective
in that county. The expense of the election shall be borne by the county. It
shall be the election superintendent´s duty to certify the result thereof
to the Secretary of State.
(2)
The General Assembly shall be authorized to provide by local law that the
special election required in a county under subparagraph (k)(1) of this
Paragraph may be conducted sooner than the 2010 state-wide general election on
any date authorized by general law for the holding of a special election. In
such event, the election superintendent shall follow the procedures specified in
subparagraph (k)(1) of this Paragraph. If such vote is for approval of the
exemptions, they shall become effective on January 1 of the year following the
year in which such referendum was conducted.
(l)
The General Assembly shall be authorized to discontinue the exemptions granted
under this Paragraph with respect to county ad valorem taxes by local law
conditioned upon approval by a majority of the qualified electors residing
within the limits of the county voting in a referendum thereon.
(m)
In the event a referendum has been conducted under this Paragraph to authorize
such exemptions and such referendum was not approved, the General Assembly shall
be authorized by local law to again submit the question of approving such
exemptions. In such event, the election superintendent shall follow the
procedures specified in subparagraph (k)(1) of this Paragraph. If such vote is
for approval of the exemptions, they shall become effective on January 1 of the
year following the year in which such referendum was
conducted."
SECTION
2.
The
above proposed amendment to the Constitution shall be published and submitted as
provided in Article X, Section I, Paragraph II of the Constitution. The ballot
submitting the above proposed amendment shall have written or printed thereon
the following:
|
"( ) YES
( ) NO
|
Shall
the Constitution of Georgia be amended so as to authorize a base-value exemption
from county ad valorem taxes for county purposes for homestead and nonhomestead
property in an amount equal to the amount by which the current-year assessed
value of the property exceeds the base value of such property, effectively
freezing such taxes, in any county in which such exemption is approved in a
local referendum?"
|
All
persons desiring to vote in favor of ratifying the proposed amendment shall vote
"Yes." All persons desiring to vote against ratifying the proposed amendment
shall vote "No." If such amendment shall be ratified as provided in said
Paragraph of the Constitution, it shall become a part of the Constitution of
this state.