hr1246_LC_17_7200S_hs

08 LC 18 7200S

The House Committee on Ways and Means offers the following substitute to HR 1246:

A RESOLUTION

Proposing an amendment to the Constitution so as to provide for tax relief from ad valorem property taxes; to provide for a short title; to authorize additional tax relief including the elimination of ad valorem property taxes for educational purposes; to provide for optional homeowner´s incentive adjustments; to authorize the limited amending of conflicting local constitutional amendments; to provide for the automatic repeal of The Property Tax Reform Amendment unless specifically continued by general law; to provide for the revival and restoration of certain prior general and local constitutional provisions; to provide for the repeal of such provisions; to prohibit the annual levy of state ad valorem taxes except in emergencies; to authorize a refundable income tax credit for low-income families for qualified food expenses; to provide for motor vehicle tax relief grants; to provide for procedures; to provide for effective dates; 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:

PART I
SECTION 1-1.

This Part I of this resolution shall be known and may be cited as "The Property Tax Reform Amendment."

SECTION 1-2.

The Constitution is amended by adding a new subparagraph to Article VII, Section I, Paragraph II to read as follows:

"(c) On or after January 1, 2010, upon a determination by the General Assembly that sufficient revenues are available, the General Assembly shall be authorized by general law to provide for additional tax relief from ad valorem property taxes for educational purposes up to and including the abolishment and repeal of ad valorem property taxes for educational purposes in addition to the tax relief provided under Article VII, Sections IIA and IIB. Such further tax relief or abolishment and repeal shall take place in accordance with such schedule as may be established by the General Assembly and shall apply to any or all such ad valorem property taxes for educational purposes as determined by the General Assembly except for ad valorem taxes pertaining to general obligation indebtedness incurred prior to January 1, 2010, and except for intangible taxes, tax allocation districts, or community improvement districts. Any provisions of this Constitution to the contrary shall be deemed inapplicable to such general law or laws. It is the express purpose and intent of this subparagraph that, upon sufficient revenues becoming available, all taxpayers are relieved from all ad valorem property taxes for educational purposes in this state; and the General Assembly is granted the authority to enact such general laws as are necessary to accomplish this purpose."

SECTION 1-3.

Article VII of the Constitution is amended by revising Section IIA as follows:

"SECTION IIA.
HOMEOWNER´S INCENTIVE ADJUSTMENT

Paragraph I. State grants; adjustment amount. (a) For each taxable year, a homeowner´s incentive adjustment may shall be applied to the return of each taxpayer claiming such state-wide homestead exemption as may be specified by general law. The amount of such adjustment may provide a taxpayer with a benefit equivalent to a homestead exemption of up to $18,000.00 of the assessed value of a taxpayer´s homestead or the taxpayer´s ad valorem property tax liability on the homestead, whichever is lower shall be determined pursuant to subparagraph (b) of this Paragraph. The General Assembly may shall appropriate such amount each year for grants to local governments and school districts as homeowner tax relief grants. The adjustments and grants authorized by this Paragraph shall be made in such manner and shall be subject to the procedures and conditions as may be specified by general law heretofore or hereafter enacted.

(b) Subject to the limitations of subparagraph (c) of this Paragraph, each qualified taxpayer shall receive whichever of the following adjustment amounts provides the maximum benefit to that taxpayer on the tax bill for the applicable tax year:

(1) A benefit equivalent to a homestead exemption of up to $30,000.00 of the assessed value of the taxpayer´s homestead or the taxpayer´s ad valorem property tax liability for county or municipal purposes, or both if applicable, on the homestead, whichever is lower; or

(2) A benefit equivalent to an exemption from the full amount of the taxpayer´s ad valorem property tax liability for educational purposes on the homestead.

(c) Any benefit determination under subparagraph (b) of this Paragraph shall be determined according to a base millage rate. This base millage rate shall be the millage rate for the county, municipality, or school district which provides the amount of property tax revenue collected for such county, municipality, or school district during a tax year, not attributable to new construction, which does not exceed the amount collected in the 2008 tax year plus the cap rate including any accrued cap rates. The term 'cap rate' means the percentage change in the price index for gross output of state and local government from the prior year to the current year as defined by the National Income and Product Accounts and determined by the United States Bureau of Economic Analysis and indicated by the Price Index for Government Consumption Expenditures and General Government Gross Output (Table 3.10.4)."

SECTION 1-4.

Article XI, Section I, Paragraph IV of the Constitution is amended by revising subparagraph (b) as follows:

"(b)(1) Except as otherwise provided in this subparagraph, any Any amendment which is continued in force and effect after July 1, 1987, pursuant to the provisions of subparagraph (a) of this Paragraph shall be continued in force and effect as a part of this Constitution, except that such amendment may thereafter be repealed but may not be amended. The repeal of any such amendment shall be accomplished by local Act of the General Assembly, the effectiveness of which shall be conditioned on its approval by a majority of the qualified voters voting thereon in each of the particular political subdivisions affected by the amendment.

(2) In the event any amendment which was continued in force and effect after July 1, 1987, either pursuant to the provisions of subparagraph (a) of this Paragraph or any other provision of this Constitution contains provisions which require the rollback of ad valorem property taxes for educational purposes as the exclusive use of the proceeds of a local tax authorized and imposed pursuant to such amendment, the General Assembly is authorized to amend such amendment once for the limited purpose of either authorizing the use of such proceeds to roll back other ad valorem property taxes or to repeal such amendment. Any such amendatory or repealing local constitutional amendment shall be adopted by a majority vote of each house of the General Assembly but shall not require approval in a referendum in the affected local jurisdiction. Once a local constitutional amendment has been amended once pursuant to this subparagraph (b)(2), such amendment shall again become subject to the provisions of subparagraph (b)(1) of this Paragraph."

PART II
SECTION 2-1.

The Constitution is amended by revising subparagraph (a) of Article VII, Section I, Paragraph II as follows:

"(a)(1) The state shall not impose an annual levy of state ad valorem taxes on tangible property for all purposes, any purpose except for defending the state in an emergency, shall not exceed one-fourth mill on each dollar of the assessed value of the property.

(2) Solely, for purposes of any general law in effect on January 1, 2008, which distributes intangible tax revenues to the state based upon a proportion that the state millage rate and millage rates of local tax jurisdictions bear to the total millage rate levied for all purposes, the state millage rate shall equal one-fourth mill on each dollar of assessed value.

(3) The prohibition of this subparagraph shall not affect state:

(A) Assessment and collection of ad valorem taxes on public utilities, railroad companies, and airlines on behalf of local governments; or

(B) Administrative functions with respect to local ad valorem taxation pursuant to any general law.

(4) The state shall continue to assure that all taxation is uniform upon the same class of subjects across all taxing jurisdictions of this state."

SECTION 2-2.

Article VII, Section I of the Constitution is amended by adding a new Paragraph to read as follows:

"Paragraph VI. State tax requirements. The General Assembly may provide by general law for a state income tax credit for low-income families for qualified food expenses. Such credit may be refundable to a taxpayer to the extent a taxpayer´s credit amount exceeds the taxpayer´s state income tax liability."

SECTION 2-3.

Article VII of the Constitution is amended by adding a new section to read as follows:

"SECTION IIB.
MOTOR VEHICLE TAX RELIEF GRANTS

Paragraph I. State grants; appropriations. (a) For each 12 month period beginning on July 1 and ending on June 30, a motor vehicle tax relief adjustment shall be applied to the ad valorem property tax bill of a taxpayer on each qualified motor vehicle, titled in the name of an individual natural person. Subject to the limitations of subparagraph (b) of this Paragraph, the amount of such adjustment shall provide a taxpayer with a benefit equivalent to an ad valorem tax exemption of the eligible assessed value of such motor vehicle. The General Assembly shall appropriate such amount each year for grants to counties, municipalities, county school districts, and independent school districts as motor vehicle tax relief grants. The grants authorized by this Paragraph shall be made in such manner and shall be subject to the procedures and conditions as may be specified by general law.

(b) Any benefit determination under subparagraph (a) of this Paragraph shall be determined according to a base millage rate. This base millage rate shall be the millage rate for the county, municipality, county school district, or independent school district which provides the amount of property tax revenue collected for such county, municipality, county school district, or independent school district during a tax year, not attributable to new construction, which does not exceed the amount collected in the 2008 tax year plus the cap rate including any accrued cap rates. The term 'cap rate' means the percentage change in the price index for gross output of state and local government from the prior year to the current year as defined by the National Income and Product Accounts and determined by the United States Bureau of Economic Analysis and indicated by the Price Index for Government Consumption Expenditures and General Government Gross Output (Table 3.10.4)"

PART III
SECTION 3-1.

The Constitution is amended by repealing subparagraph (c) of Article VII, Section I, Paragraph II which reads as follows:

"(c) On or after January 1, 2010, upon a determination by the General Assembly that sufficient revenues are available, the General Assembly shall be authorized by general law to provide for additional tax relief from ad valorem property taxes for educational purposes up to and including the abolishment and repeal of ad valorem property taxes for educational purposes in addition to the tax relief provided under Article VII, Sections IIA and IIB. Such further tax relief or abolishment and repeal shall take place in accordance with such schedule as may be established by the General Assembly and shall apply to any or all such ad valorem property taxes for educational purposes as determined by the General Assembly except for ad valorem taxes pertaining to general obligation indebtedness incurred prior to January 1, 2010, and except for intangible taxes, tax allocation districts, or community improvement districts. Any provisions of this Constitution to the contrary shall be deemed inapplicable to such general law or laws. It is the express purpose and intent of this subparagraph that, upon sufficient revenues becoming available, all taxpayers are relieved from all ad valorem property taxes for educational purposes in this state; and the General Assembly is granted the authority to enact such general laws as are necessary to accomplish this purpose."

SECTION 3-2.

Article VII of the Constitution is amended as follows:

"SECTION IIA.
HOMEOWNER´S INCENTIVE ADJUSTMENT

Paragraph I. State grants; adjustment amount. (a) For each taxable year, a homeowner´s incentive adjustment may shall be applied to the return of each taxpayer claiming such state-wide homestead exemption as may be specified by general law. The amount of such adjustment may provide a taxpayer with a benefit equivalent to a homestead exemption of up to $18,000.00 of the assessed value of a taxpayer´s homestead or the taxpayer´s ad valorem property tax liability on the homestead, whichever is lower shall be determined pursuant to subparagraph (b) of this Paragraph. The General Assembly may shall appropriate such amount each year for grants to local governments and school districts as homeowner tax relief grants. The adjustments and grants authorized by this Paragraph shall be made in such manner and shall be subject to the procedures and conditions as may be specified by general law heretofore or hereafter enacted.

(b) Subject to the limitations of subparagraph (c) of this Paragraph, each qualified taxpayer shall receive whichever of the following adjustment amounts provides the maximum benefit to that taxpayer on the tax bill for the applicable tax year:

(1) A benefit equivalent to a homestead exemption of up to $30,000.00 of the assessed value of the taxpayer´s homestead or the taxpayer´s ad valorem property tax liability for county or municipal purposes, or both if applicable, on the homestead, whichever is lower; or

(2) A benefit equivalent to an exemption from the full amount of the taxpayer´s ad valorem property tax liability for educational purposes on the homestead.

(c) Any benefit determination under subparagraph (b) of this Paragraph shall be determined according to a base millage rate. This base millage rate shall be the millage rate for the county, municipality, or school district which provides the amount of property tax revenue collected for such county, municipality, or school district during a tax year, not attributable to new construction, which does not exceed the amount collected in the 2008 tax year plus the cap rate including any accrued cap rates. The term 'cap rate' means the percentage change in the price index for gross output of state and local government from the prior year to the current year as defined by the National Income and Product Accounts and determined by the United States Bureau of Economic Analysis and indicated by the Price Index for Government Consumption Expenditures and General Government Gross Output (Table 3.10.4)."

SECTION 3-3.

Article XI, Section I, Paragraph IV of the Constitution is amended by revising subparagraph (b) as follows:

"(b)(1) Except as otherwise provided in this subparagraph, any Any amendment which is continued in force and effect after July 1, 1987, pursuant to the provisions of subparagraph (a) of this Paragraph shall be continued in force and effect as a part of this Constitution, except that such amendment may thereafter be repealed but may not be amended. The repeal of any such amendment shall be accomplished by local Act of the General Assembly, the effectiveness of which shall be conditioned on its approval by a majority of the qualified voters voting thereon in each of the particular political subdivisions affected by the amendment.

(2) In the event any amendment which was continued in force and effect after July 1, 1987, either pursuant to the provisions of subparagraph (a) of this Paragraph or any other provision of this Constitution contains provisions which require the rollback of ad valorem property taxes for educational purposes as the exclusive use of the proceeds of a local tax authorized and imposed pursuant to such amendment, the General Assembly is authorized to amend such amendment once for the limited purpose of either authorizing the use of such proceeds to roll back other ad valorem property taxes or to repeal such amendment. Any such amendatory or repealing local constitutional amendment shall be adopted by a majority vote of each house of the General Assembly but shall not require approval in a referendum in the affected local jurisdiction. Once a local constitutional amendment has been amended once pursuant to this subparagraph (b)(2), such amendment shall again become subject to the provisions of subparagraph (b)(1) of this Paragraph."

PART IV
SECTION 4-1.

Article XI, Section I, of the Constitution is amended by adding a new paragraph to read as follows:

"Paragraph IVA. Continuation or repeal of The Property Tax Reform Amendment; former provisions restored. (a) The amendments to this Constitution in force and effect as a result of the ratification of The Property Tax Reform Amendment shall continue in force and effect as part of this Constitution until the last moment of December 31, 2012, at which time said amendments contained in The Property Tax Reform Amendment shall be repealed and shall be deleted as a part of this Constitution unless The Property Tax Reform Amendment shall be specifically continued in force and effect without amendment by a general law enacted prior to December 31, 2012. If so continued in force and effect as a part of this Constitution, such provisions may thereafter be amended in the same manner as any other provision of this Constitution. If not so continued in force and effect as a part of this Constitution, then effective January 1, 2013, all provisions of this Constitution which were amended by The Property Tax Reform Amendment shall be revived and restored in their entirety in the form in which such provisions existed immediately prior to their amendment by The Property Tax Reform Amendment. Such revival and restoration shall also include any local constitutional amendment which was amended pursuant to the limited authority of the provisions of Article XI, Section I, Paragraph IV(b)(2). Any such amendment to such local constitutional amendment shall be repealed effective at the last moment of December 31, 2012, and effective January 1, 2013, the former provisions of such local constitutional amendment shall be revived and restored in their entirety in the form in which such provisions existed immediately prior to their amendment pursuant to said Paragraph IV(b)(2). Once a local constitutional amendment has been so revived and restored, such amendment shall again become subject to the provisions of Article IX, Section I, Paragraph IV(b).

(b) This Paragraph shall stand repealed in its entirety on January 1, 2013."

PART V
SECTION 5-1.

(a) 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:

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."
(b) If such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall become effective and a part of the Constitution of this state as follows:

(1) Part I: Sections 1-1, 1-2, and 1-4 on January 1, 2009;

(2) Part I: Section 1-3 on January 1, 2010;

(3) Part II, Part IV, and this Part on January 1, 2009; and

(4) Part I shall stand repealed only under the circumstances provided in Part IV; otherwise, Part I shall remain effective as provided in Part IV. If Part I is repealed as provided in Part IV, then Part III shall become effective January 1, 2013; otherwise, Part III shall not become effective.