XBRD BIRTHPLACE OF EMORY UINIVERSITY OFFICIAL MINUTES OF THE OXFORD MAYOR AND COUNCIL MEETING OXFORD CITY HALL MONDAY, FEBUARY 3, 2025 PUBLIC HEARING STATEWIDE ADJUSTED BASE YEAR AD VALOREM HOMESTEAD EXEMPTION PRESENT: Mayor David Eady, Councilmembers Jim Windham, Mike Ready, Erik Oliver, City Attorney David Strickland, Deputy Clerk Stacey Mullen OTHERS PRESENT: Jody Graichen, Northeast Georgia Regional Commission The purpose of the public hearing was to obtain comments and questions regarding the City of Oxford's pending decision of whether to opt out of the statewide adjusted base ad valorem homestead exemption. The public hearing was called to order at 6:30 pm by Mayor Eady. Mayor Eady called for written and oral comments from the public. Hearing none, he adjourned the meeting at 6:45 pm. Respectfully Submitted, Sim MW Stacey Mullen Deputy City Clerk OXFORD MAYOR AND COUNCIL PUBLIC HEARING MONDAY, FEBRUARY 3, 2025 6:30 PM CITY HALL 110 W. Clark Street, Oxford, Georgia AGENDA PUBLIC HEARING REGARDING THE STATEWIDE ADJUSTED BASE YEAR AD VALOREM HOMESTEAD EXEMPTION The Oxford mayor and council are wishing to receive written and oral comments from residents and property owners in the city ofOxford as they consider whether to opt out of this statewide homestead exemption. To opt out, the city must conduct three public hearings, pass a resolution opting out, and file that resolution with the Secretary of State by March 1, 2025. The mayor and council are following this process to maintain the option of opting out while we receive input from our residents and property owners. 1. Call to Order, Mayor David S. Eady a. *Review ofHouse Bill 581 and what its implications may be for Oxford. 2. Questions/Public Comment 3. Adjourn. Bill Andrew From: Martie Kinard <MKINARD@co.newton.ga.us> Sent: Friday, January 31, 2025 10:12 AM To: Harold Cooper; Brittany White; Stan Edwards (District 1); Demond Mason; Stephanie Lindsey; JC Henderson; LeAnne Long; Brent Bennett; Randy Smith; Bill Andrew; Vickie Short; City of Newborn; Susan Roper; Erica Robinson; bring@mansfreagagow Cc: AaVeronica Hardy; vemonvelwp@gmailcom: Charles Berry; Marvin Maner; Kevin Mitcham; Jacquelyn Smith Subject: IMPORTANT - 2025 Legislation Summary specifically, HB 92 - HB581 "Clean-Up" Importance: High Follow Up Flag: Follow up Flag Status: Flagged Good morning All, Ijust wanting to share and make you aware of some information that is currently going on at the State Capital. HB 92 is a "Clean-Up" bill for HB581. Some of the key changes are: Possibility extending the opt-out deadline from March 1st to May 1st Possibility of adding a 5 acre minimum Ift these changes happen, there will be delays in getting assessment notices mailed out by early to mid-April. There will be significant software changes from our state-wide vendor and there could also be delays in getting the digest to the state by September 1st. Decisions have not been made yet, but I wanted to make you all aware. Please feelj free to share this information, as the more we are aware, the better decisions we can make as a whole for our community! Kindly, Mrs. Martie A. Kirard Newton County Chief Appraiser 1113 Usher Street Ste 102 Covington, GA 30014 770-784-2030 Main office number 678-625-1638 Direct line 2025 Legislation Summary Click on the Bill Number to access the latest legislation HB52 Introduced 1/14/2025 1 Constitutional amendment expanding the disabled veteran's exemption to allow the unremarried surviving spouse or minor children to claim the exemption on future primary residence as long as they apply, own and occupy the residence. HB 90 Introduced 1/16/2025 Increase the maximum acreage for CUV from 2,000 to 4,000 Requires constitution amendment Connected to HR 32 HB92 Introduced 1/16/2025 Extends HB 581 opt-out period from March 1 to May 1 HB 129 Introduced 1/27/2025 Amends 48-5-7.4 to allow leasing of conservation use property to the following entities: Corporation, partnership, general partnership, limited partnership, limited corporation, or limited liability corporation registered with the Secretary of State that meets the following conditions: Ownership must be a natural citizen Primary purpose of the entity must be the production of agriculture or timber 80% of gross income ofthe entity must be derived from conservation use At least one of the entity members must hold at least a 25% interest in the property being leased. HB 142 Introduced 1/29/2025 Amends 48-5-7.2 to allow rehabilitated historic property to continue CUV of an income producing for an additional 12 years HB 169 Introduced 1/29/2025 Amends 48-5-7.4 to only allow solar farms on cuv property ifthey were in place prior to July 1, 2025 and placing a sunset on having solar farms on cuv property through July 1, 2035 HR: 32 Introduced 1/16/2025 Constitution amendment to increase the maximum acreage for CUV from 2,000 to 4,000 Connected to HB 90 SB 24 Introduced 1/17/2025 Amends 48-5-7.2 to allow rehabilitated historic property to continue CUV of an income producing for an additional 12 years SB 43 Introduced 1/29/2025 Constitution amendment to increase the maximum acreage for CUV from 2,000 to 6,000 SB 45 Introduced 1/29/2025 Constitution amendment to increase the maximum acreage for CUV from 2,000 to 4,000 SB52 Introduced 1/29/2025 "Timberlands Recovery, Exemption, and Earnings Stability (TREES) Act.' I Authorize certain local governing authorities to provide temporary tax relief from the taxes levied for the harvest or sale ofstanding timber in certain disaster areas; to provide for conditions and procedures; to provide for grants to such local governing authorities to offset the loss of certain revenues resulting from certain disaster damage to standing timber and such temporary tax relief; to provide for an appropriations contingency; to provide for a grant cap; to provide for the calculation of equalized adjusted property tax digests. 2 SB59 Introduced 1/29/2025 Amends 48-5-7.4 to allow leasing of conservation use property to the following entities: Corporation, partnership, general partnership, limited partnership, limited corporation, or limited liability corporation registered with the Secretary of State that meets the following conditions: Ownership must be a natural citizen Primary purpose of the entity must be the production of agriculture or timber 80% of gross income oft the entity must be derived from conservation use At least one of the entity members must hold at least a 25% interest in the property being leased. SR55 Introduced 1/29/2025 Constitution amendment to increase the maximum acreage for CUV from 2,000 to 6,000 SR56 Introduced 1/29/2025 Constitution amendment to increase the maximum acreage for CUV from 2,000 to 4,000 3 24 HB 581/AP House Bill 581 (AS PASSED HOUSE AND SENATE) By: Representatives Blackmon of the 146th and Crowe of the 118th A BILL TO BE ENTITLED AN ACT 1 To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and 2 taxation, SO as to provide requirements for ad valorem property tax bills; to provide for 3 definitions; to provide for minimum mandatory reappraisal ofparcels; to provide that county 4 boards of tax assessors shall have the right to appeal concerning sales ratio studies under 5 certain conditions; to revise the limitation on increasing new valuations established through 6 appeals or agreements; to revise the required contents of annual notices of assessment; to 7 revise requirements for notices of current assessment; to provide for a statewide adjusted 8 base year ad valorem homestead exemption and provide procedures for opting out of such 9 homestead exemption at the locall level; torevise provisions forthemaximum allowablesales 10 and use tax rate; to authorize a new local option sales tax for the purpose of property tax 11 reliefin those political subdivisions that have in effectal base year value or adjusted base year 12 value homestead exemption; to provide for authorization oftax and applicability; to provide 13 for local authorization and referenda; to provide for imposition and termination of tax; to 14 provide for administration and collection of tax; to provide for returns; to provide for 15 distribution oftax proceeds; to provide for an effective date, applicability, and a contingent, 16 automatic repeal; to provide for related matters; to repeal conflicting laws; and for other 17 purposes. H. B. 581 - 1- 24 HB 581/AP 18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 19 PARTI 20 SECTION 1-1. 21 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is 22 amended in Code Section 48-5-2, relating to definitions, by revising the introductory 23 language of paragraph (3) and by adding a new paragraph to read as follows: 24 "(2.1) 'Estimated roll-back rate' means the current year's estimated millage rate minus the 25 millage equivalent oft the total net assessed value added by reassessments: 26 (A) As calculated and certified to the tax commissioner by the levying authority for 27 county and educational tax purposes: and 28 (B) As calculated and certified to the collecting officer of the municipality by the 29 levying authority for municipal tax purposes. 30 (3) 'Fair market value ofproperty' means the amount a knowledgeable buyer would pay 31 forthe property and a willing seller would accept fori the property at an arm's length, bona 32 fide sale. The income approach, if data are available, shall be considered in determining 33 the fair market value ofincome-producing property. If: actual income and expense data 34 are voluntarily supplied by the property owner, such data shall be considered in such 35 determination. Notwithstanding yutherporismflirciertisyrwrirmpte 36 tamsctiomamomtoftieotiretamiemghbomfdrsieimmmyyerahalbetie 37 maximumratlowabitcfair-markctvatue-forthe-mext-taxabic-ycar. With respect to the 38 valuation ofequipment, machinery, and fixtures when no ready market exists for the sale 39 of the equipment, machinery, and fixtures, fair market value may be determined by 40 resorting to any reasonable, relevant, and useful information available, including, but not 41 limited to, the original cost ofthe property, any depreciation or obsolescence, and any H. B. 581 - 2- 24 HB 581/AP 42 increase in value by reason ofinflation. Each tax assessor shall have access to any public 43 records of the taxpayer for the purpose of discovering such information." 44 SECTION 1-2. 45 Said title is further amended by adding a new Code section to read as follows: 46 48-5-34. 47 (a) In addition to any other requirements provided by law, the ad valorem property taxl bill 48 form shall be prepared annually by the county tax commissioner or collector and furnished 49 to each taxpayer who owes state. county, or county school tax for the current tax year. The 50 form shall provide the total amount of such taxes levied on property owned by the 51 taxpayer, the amount ofproperty tax credit granted by Act ofthe 1973 Session ofGeorgia's 52 General Assembly, and the net amount ofs such taxes due for the current tax year. 53 (b) In addition to the requirements of subsection (a) of this Code section, regarding any 54 ad valorem property tax bill where the millage rate adopted by a tax authority exceeds the 55 estimated roll-back rate, such tax bill shall include a notice containing the name of such 56 taxing authority and the following statement in bold print: 57 The adopted millage rate exceeds the estimated roll-back rate as stated in the annual 58 notice of assessment that you previously received for this taxable year, which will 59 result in an increase in the amount of property tax that you will owe." !! 60 SECTION 1-3. 61 Said title is further amended in Code Section 48-5-264, relating to designation and duties of 62 chief appraiser, by adding a new subsection to read as follows: 63 "(d) The chiefappraiser shall ensure that every parcel in his or her respective county is 64 appraised at least every three years." I H. B. 581 -3- 24 HB 581/AP 65 SECTION 1-4. 66 Said title is further amended in Code Section 48-5-274, relating to the establishment of 67 equalized adjusted property tax digest, establishment and use ofaverage ratio, information 68 to be furnished by state auditor, grievance procedure, and information to be furnished by 69 commissioner, by revising paragraph (1) of subsection (f) as tollows: 70 "(f)(1) Each county governing authority, each governing authority of a municipality 71 having an: independent school system, and each local board ofeducation, and each county 72 board of tax assessors, when aggrieved or when having an aggrieved constituent, shall 73 have a right, upon written request made within 30 days after receipt of the digest 74 information, to refer the question ofcorrectness ofthe current equalized adjusted property 75 tax digest ofthe local school system to the state auditor. The state auditor shall take any 76 steps necessary to make a determination of the correctness ofthe digest and to notify all 77 interested parties of the determination within 45 days after receiving the request 78 questioning the correctness ofthe digest." 79 SECTION 1-5. 80 Said title is further amended in Code Section 48-5-299, relating to ascertainment oftaxable 81 property, assessments against unreturned: personal property, penalty for unreturned property, 82 and changing real property values established by appeal in prior year or stipulated by 83 agreement, by revising subsection (c) as follows: 84 "(c) When the value of real property is reduced oris-umchanged from the value on the 85 initial annual notice of assessment or a corrected annual notice ofassessment issued byt the 86 board of tax assessors and such reduced valuation has been established as the result of an 87 appeal decision rendered by the board of equalization, hearing officer, arbitrator, or 88 superior court pursuant to Code Section 48-5-311 or stipulated by written agreement signed 89 by the board oftax assessors and taxpayer or taxpayer's authorized representative, the new 90 valuation SO establishedbya appeal decision or agreement may not bei increasedbyt theboard H. B. 581 4 - 24 HB 581/AP 91 oft tax assessors during the next two successive years, unless otherwise agreed in writing 92 by both parties, subject to the following exceptions: 93 (1) This subsection shall not apply to a valuation established by an appeal decision ifthe 94 taxpayer or his or her authorized representative failed to attend the appeal hearing or 95 provide the board of equalization, hearing officer, or arbitrator with some written 96 evidence supporting the taxpayer's opinion ofvalue; 97 (2) This subsection shall not apply to a valuation established by an appeal decision or 98 agreement if the taxpayer files a return at a different valuation during the next two 99 successive years; 100 (3) Unless otherwise agreed in writing by both parties, if the taxpayer files an appeal 101 pursuant to Code Section 48-5-311 during the next two successive years, the board oftax 102 assessors, the board of equalization, hearing officer, or arbitrator may increase or 103 decrease the value ofthe real property based on the evidence presented by the taxpayer 104 during the appeal process; and 105 (4) The board oftax assessors may increase or decrease the value oft the real property if, 106 after a visual on-siteinspection ofthe property, itis found that therel have been substantial 107 additions, deletions, orimprovements to such property or that there are errors in the board 108 of tax assessors' records as to the description or characterization of the property, or the 109 board of tax assessors finds an occurrence of other material factors that substantially 110 affect the current fair market value of such property." 111 SECTION 1-6. 112 Said title is further amended in Code Section 48-5-306, relating to annual notice of current 113 assessment, contents, posting notice, and new: assessment description, by revising paragraphs 114 (1) and (2) of subsection (b) as follows: 115 "(1) The annual notice of current assessment required to be given by the county board of 116 tax assessors under subsection (a) of this Code section shall be dated and shall contain H. B. 581 - 5- 24 HB 581/AP 117 the name and last known address of the taxpayer. The annual notice shall conform with 118 the state-wide uniform assessment notice which shall be established by the commissioner 119 by rule and regulation and shall contain: 120 (A) The amount of the previous assessment; 121 (B) The amount oft the current assessment; 122 (C) The year for which the new assessment is applicable; 123 (D) A brief description of the assessed property broken down into real and personal 124 property classifications; 125 (E) The fair market value of property of the taxpayer subject to taxation and the 126 assessed value of the taxpayer's property subject to taxation after being reduced; 127 (F) The name, phone number, and contact information ofthe person in the assessors' 128 office who is administratively responsible for the handling of the appeal and who the 129 taxpayer may contact ifthe taxpayer has questions about the reasons for the assessment 130 change or the appeals process; 131 (G)I Ifavailable, the website address ofthe office oft the county board oftax assessors; 132 and 133 (H). A statement that all documents and records used to determine the current value are 134 available upon request; and 135 (I) The current year's estimated roll-back rate. 136 (2)(A) In addition to the items required under paragraph (1) ofthis subsection, the notice 137 shall contain a statement of the taxpayer's right to an appeal mcamrcstimatcuftne 138 wrthy authorities which shall be in substantially the 139 following form: 140 The amount of your ad valorem tax bill for this year will be based on the appraised and 141 assessed values specified in this notice. You have the right to appeal these values to the 142 county board oftax assessors. At the time off filing your appeal you must select one ofthe 143 following options: H. B. 581 - 6- 24 HB 581/AP 144 ((A) An appeal to the county board of equalization with appeal to the superior court; 145 (I)(B) To arbitration without an appeal to the superior court; or 146 (iny(C) For a parcel of nonhomestead property with a fair market value in excess of 147 $500,000.00 as shown on the taxpayer's: annual notice of current assessment under this 148 Code section, or for one or more account numbers of wireless property as defined in 149 subparagraph c.I)0)B)otCode Section 48-5-311 with an aggregate fairi market value 150 in excess of $500,000.00 as shown on the taxpayer's annual notice of current 151 assessment under this Code section, to a hearing officer with appeal to the superior 152 court. 153 Ifyou wish to file an appeal, you must do SO in writing no later than 45 days after the date 154 ofthis notice. Ifyou do not file an appeal by this date, your right to file an appeal will be 155 lost. For further information on the proper method for filing an appeal, you may contact 156 the county board oftax assessors which is located at: (insert address) and which may be 157 contacted by telephone at: (insert telephone number).' 158 )hemotitrahaiahsvrirtrtbmigrambolfprin: 159 heestimmtrufyoaracvemtatitfertir-umutyuristasefumtiepntevioms 160 matwpisyui-freminéinti: 161 notice. Theactuahtaxbilyourecivemybemorcoristhmrthisestimate-This 162 estimatemay-mot-motimehnde-atfchgbiicexemptions. 163 SECTION 1-7. 164 Said title is further amended in Code Section 48-5-311, relating to creation of county boards 165 of equalization, duties, review of assessments, and appeals, by revising paragraph (2) of 166 subsection (g) as follows: 167 '(2) An appeal by the taxpayer as provided in paragraph (1) of this subsection shall be 168 effected by emailing, ifthe county board of tax assessors has adopted a written policy 169 consenting to electronic service, or by mailing to or filing with the county board of tax H. B. 581 -7- 24 HB 581/AP 170 assessors a written petition for review. An appeal by the county board oftax assessors 171 shall be effected by giving a petition for review to the taxpayer. The petition for review 172 given to the taxpayer shall be dated and shall contain the name and the last known 173 address of the taxpayer. The petition for review shall specifically state the grounds for 174 appeal. The petition for review shall be mailed or filed within 30 days from the date on 175 which the decision of the county board of equalization, hearing officer, or arbitrator is 176 delivered pursuant to subparagraph (e)(6)(D), paragraph (7) of subsection (e.1), or 177 division (f)(3)(C)(ix) of this Code section. Within 45 days of receipt of a taxpayer's 178 petition for review and before the petition for review is filed in superior court, the county 179 board of tax assessors shall send to the taxpayer notice that a settlement conference, in 180 which the county board of tax assessors and the taxpayer shall confer in good faith, will 181 be held at a specified date and time which shall be no later than 30 days from the notice 182 ofthe settlement conference, and notice ofthe amount ofthe filing fee for a petition for 183 review, ifany, required by the clerk ofthe superior court. A taxpayer may appear fort the 184 settlement conference in person, by his or her authorized agent or representative, or both. 185 The county board of tax assessors, in their discretion and with the consent of the 186 taxpayer, may alternatively conduct the settlement conference by audio or video 187 teleconference or any other remote communication medium. The taxpayer may exercise 188 a one-time option to reschedule the settlement conference to a different date and time 189 acceptable to the taxpayer during normal business hours. After a settlement conference 190 has convened, the parties may agree to continue the settlement conference to a later date. 191 Ifat the end of the 45 day review period the county board of tax assessors elects not to 192 hold a settlement conference, then the appeal shall terminate and the taxpayer's stated 193 value shall be entered in the records ofthe board oftax assessors as the fair market value 194 for the year under appeal and the provisions of subsection (c) ofCode Section 48-5-299 195 shall apply to such value. Fthetapayerchosermottopamicpiee-setiememt 196 comferenee,heur-shemay-motseek-mdahatfmotbeanandetfersamtcostsatsuchrtime H. B. 581 8 - 24 HB 581/AP 197 wherthepetitionforrevEwirevENctmsuperiorcourt: Ifneither the taxpayer nor his 198 or her authorized agent or representative attends a properly scheduled settlement 199 conference or fails to confer with the board oft tax assessors in good faith on the matter, 200 then such taxpayer shall not receive the benefits of any temporary reduction in the 201 amount of taxes due pending the outcome of the appeal and shall not be awarded 202 attorney's feesor costs of litigation in connection with the appeal to the superior court. 203 If at the conclusion of the settlement conference the parties reach an agreement, the 204 settlement value shall be entered in the records ofthe county board oftax assessors as the 205 fair market value for the tax year under appeal and the provisions of subsection (c) of 206 Code Section 48-5-299 shall apply to such value. Ifat the conclusion of the settlement 207 conference the parties cannot reach an agreement, then written notice shall be provided 208 to the taxpayer that the filing fees for the superior court must be paid by the taxpayer by 209 submitting to the county board of tax assessors a check, money order, or any other 210 instrument payable to the clerk of the superior court within 20 days of the date of the 211 conference. Notwithstanding any other provision of1 law to the contrary, the amount of 212 the filing fee for an appeal under this subsection shall be $25.00. An appeal under this 213 subsection shall not be subject to any other fees or additional costs otherwise required 214 under any provision ofTitle 15 or under any other provision oflaw. Within 30 days of 215 receipt of the taxpayer's payment made out to the clerk ofthe superior court, or, in the 216 case of a petition for review filed by the county board oftax assessors, within 30 days of 217 giving notice oft the petition for review to the taxpayer, the county board oftax assessors 218 shall file with the clerk ofthe superior court the petition for review and any other papers 219 specified by the person appealing, including, but not limited to, the staffinformation from 220 the file used by the county board of tax assessors, the county board of equalization, the 221 hearing officer, or the arbitrator. Immediately following payment of such $25.00 filing 222 fee to the clerk of the superior court, the clerk shall remit the proceeds thereof to the 223 governing authority ofthe county which shall deposit the proceeds into the general fund H. B. 581 -9- 24 HB 581/AP 224 oft the county. All papers and information filed with the clerk shall become a part ofthe 225 record on appeal to the superior court. At the time ofthe filing ofthe petition for review, 226 the county board of tax assessors shall serve the taxpayer and his or her attorney of 227 record, if any, with a copy ofthe petition for review filed in the superior court and with 228 the civil action file number assigned to the appeal. Such service shall be effected in 229 accordance with subsection (b) ofCode Section 9-11-5. No discovery, motions, or other 230 pleadings may be filed by the county board of tax assessors in the appeal until such 231 service has been made." 232 PART II 233 SECTION 2-1. 234 Said title is further amended by adding a new Code section to read as follows: 235 48-5-44.2. 236 (a) For purposes oft this Code section. the term: 237 'Ad valorem taxes' means all ad valorem taxes levied by, for. or on behalfofthe state 238 or any county, consolidated government. municipality, or local school district in this 239 state, except for any ad valorem taxes levied to pay interest on and to retire bonded 240 indebtedness. 241 (2) 'Adjusted base year assessed value' means the sum of: 242 (A) The previous adjusted base year assessed value: 243 (B) An amount equal to the difference between the current year assessed value ofthe 244 homestead and the base year assessed value of the homestead, provided that such 245 amount shall not exceed the total ofthe previous adjusted base year assessed value of 246 the homestead multiplied by the inflation rate for the prior year:and H. B. 581 - 10- 24 HB 581/AP 247 (C) The value ofany substantial property change. provided that no such value added 248 improvements to the homestead shall be duplicated as to the same addition or 249 improvement. 250 (3) 'Base year assessed value' means: 251 (A) With respect to an exemption under this Code section which is first granted to a 252 person on such person's homestead for the 2025 taxable year, the assessed value for 253 taxable year 2024. including any final determination of value on appeal pursuant to 254 Code Section 48-5-311.ofthe homestead: or 255 (B) In all other cases, the assessed value. including any final determination ofvalueon 256 appeal pursuant to Code Section 48-5-311. of the homestead from the taxable year 257 immediately preceding the taxable yeari in which the exemption under this Code section 258 is first granted to the applicant. 259 (4) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40. 260 (5) 'Inflation rate' means the annual inflationary index rate as determined for a given year 261 by the commissioner in accordance with subsection (g) of this Code section. 262 (6) 'Previous adjusted base year assessed value' means: 263 (A) With respect to the year for which the exemption under this Code section is first 264 granted to a person on such person's homestead, the base year assessed value; or 265 (B) In all other cases, the adjusted base year assessed value of the homestead as 266 calculated in the taxable year immediately preceding the current year. including any 267 final determination of value on appeal pursuant to Code Section 48-5-311. 268 (7) 'Substantial property change' means any increase or decrease in the assessed value 269 ofa a homestead derived from additions or improvements to, or the removal of real 270 property from. the homestead which occurred after the year in which the base year 271 assessed value is determined for the homestead. The assessed value of the substantial 272 property changes shall be established following any final determination of value on 273 appeal pursuant to Code Section 48-5-311. H. B. 581 - 11 - 24 HB 581/AP 274 (b)(1) Subject to the limitations provided in this Code section, each resident ofthis state 275 is granted an exemption on that person's homestead from ad valorem taxes in an amount 276 equal to the amount by which the current year assessed value of that homestead, 277 including any final determination ofy value on appeal pursuant to Code Section 48-5-311. 278 exceeds its previous adjusted base year assessed value. 279 (2) Except as provided for in subsection (c) ofthis Code section. no exemption provided 280 for in this subsection shall transfer to any subsequent owner oft the property, and the 281 assessed value of the property shall be as provided by law. 282 (c) The surviving spouse ofthe person who has been granted the exemption provided for 283 in subsection (b) of this Code section shall continue to receive the exemption provided 284 under subsection (b) oft this Code section, SO long as such surviving spouse continues to 285 occupy the residence as a homestead. 286 (d) No person shall receive the exemption granted by subsection (b) ofthis Code section 287 unless such person or person's agent files an application with the tax receiver or tax 288 commissioner ofhis or her respective local government or governments charged with the 289 duty of receiving returns of property for taxation giving such information relative to 290 receiving such exemption as will enable such tax receiver or tax commissioner to 291 make a determination regarding the initial and continuing eligibility of such person for 292 such exemption; provided, however, that any person who had previously applied for 293 ahomstendexemption. wasallowed suchl homestead exemption fort the 20241 tax year. and 294 remains eligible for a homestead exemption for that same homestead property in the 2025 295 tax year shall be automatically allowed the exemption granted under subsection (b) ofthis 296 Code section for that homestead without further application. Such tax receiver or tax 297 commissioner shall provide application forms for this purpose. 298 (e) The exemption granted by subsection (b) of this Code section shall be claimed and 299 returned as provided in Code Section 48-5-50.1. Such exemption shall be automatically 300 renewed from year to year SO long as the owner occupies the residence as a homestead. H. B. 581 - 12- 24 HB 581/AP 301 After a person or a person's agent has filed the proper application or is automatically 302 granted thehomestead exemption as provided in subsection (d) ofthis Code section, its shall 303 not be necessary to make application thereafter for any year, and the exemption shall 304 continue to be allowed to such person. It shall be the duty of any person granted the 305 homestead exemption under subsection (b) ofthis Code section to notify the tax receiver 306 or tax commissioner of the local government or governments in the event such person for 307 any reason becomes ineligible for such exemption. 308 (f)(1) Except as otherwise provided in paragraph (2)oft this subsection, the homestead 309 exemption granted by subsection (b) ofthis Code section shall be in addition to and not 310 in lieu of any other homestead exemption applicable to ad valorem taxes. 311 (2) The homestead exemption granted by subsection (b) of this Code section shall not 312 be applied in addition to any otherbase year value homestead exemption provided by law 313 with respect to the given taxing jurisdiction to which the such law applies. In any such 314 event. the tax receiver or tax commissioner ofthe taxpayer's respective local government 315 or governments charged with the duty of receiving returns of property for taxation shall 316 apply only the base year value homestead exemption that is larger or more beneficial for 317 the taxpayer with respect to the particular taxing jurisdictions to which more than one 318 base year value homestead exemption applies. 319 (g) For the purposes of this Code section, the commissioner shall promulgate a 320 standardized method for determining annual inflationary index rates which reflect the 321 effects ofinflation and deflation on the cost ofliving for residents ofthis state for a given 322 calendar year. Such method may utilize the Consumer Price Index as reported by the 323 Bureau of] Labor Statistics oft the United States Department ofI Labor or any other similar 324 index established by the federal government if the commissioner determines that such 325 federal index fairly reflects the effects ofinflation and deflation on residents oft this state. 326 (h) The exemption granted by subsection (b) ofthis Code section shall apply to all taxable 327 years beginning on or after January 1, 2025, provided that: H. B. 581 - 13 - 24 HB 581/AP 328 (1) A constitutional amendment is ratified and becomes effective on January 1. 2025, 329 which authorizes the General Assembly to provide by general law for a homestead 330 exemption that shall not! be applicable to certain political subdivisions. which elect to opt 331 out oft the homestead exemption by a date certain: and 332 (2) The exemption granted by subsection (b) of this Code section shall not be 333 applicable for any county, consolidated government, municipality, or school district for 334 which the governing authority of such political subdivision adopts an opt-out 335 resolution in accordance with subsection (i) ofthis Code section. 336 (i) The governing authority of any county, consolidated government. municipality, or 337 school district may elect to opt out of the homestead exemption otherwise granted by 338 subsection (b) ofthis Code section with respect to such political subdivision through the 339 adoption of a resolution to do the same by March 1. 2025, after completing the 340 following steps: 341 (1) The governing authority shall advertise its intent to do SO and shall conduct at least 342 three public hearings thereon, at least one of which shall commence between the hours 343 of6 6:00 P.M. and 7:00 P.M.. inclusive, onal business weekday. The governing authority 344 shall place an advertisement in a newspaper of general circulation serving the residents 345 ofthe political subdivision and post such advertisement on its website, which shall read 346 as follows: 347 TNTENT TO OPT OUT OF HOMESTEAD EXEMPTION 348 The(name ofgoverning authority) intends to opt out ofthe statewide adjusted base year 349 ad valorem homestead exemption for (name ofthe political subdivision). 350 All concerned citizens are invited to the public hearing on this matter to be held at 351 (place ofmeeting) on (date and time). 352 Times and places of additional public hearings on this matter are at (place of 353 meeting) on (date and time). H. B. 581 - 14- 24 HB 581/AP 354 Simultaneously with this notice the governing authority shall provide a press release to the 355 local media. 356 (2) The advertisement required by paragraph (1) of this subsection shall appear at least 357 one week prior to each hearing, be prominently displayed, be not less than 30 square 358 inches. and not be placed in that section ofthe newspaper where legal notices appear and 359 shall be posted on the appropriate website at least one week prior to each hearing. In 360 addition to the advertisement specified under this paragraph. the levying or 361 recommending authority may include in the notice reasons or explanations for its 362 intention to opt out oft the homestead exemption. 363 (3) No resolution to opt out of the homestead exemption shall become effective with 364 respect to a political subdivision unless the procedures and hearings required by this 365 subsection are completed and a copy ofsuch resolution is filed with the Secretary ofState 366 by March 1, 2025." 367 PART III 368 SECTION 3-1. 369 Said title is further amended in Code Section 48-8-6, relating to prohibition of political 370 subdivisions from imposing various taxes, ceiling on local sales and use taxes, and taxation 371 ofmobile telecommunications, by revising subsection (a) as follows: 372 "48-8-6. 373 -FPhere-shaihnotbeimpeimposdinmyiwhaistinmint-uEewRamytmsetiominthis 374 steioahsiertezboeathuctmegurinataakerméurtmerinetesofèperent 375 Forpurpossoftis-yprohiHbFReiEséNEysAEETusetagursitsr-md 376 e-tavlchirividin an arca-comsistmg hrtekrlnwe 377 authorized,imcludingsuchtaxerauthvrinetbyorpureanttovconstitationat-amendment: H. B. 581 - 15 - 24 HB 581/AP 378 xeeptthat-the-foliowimgtaxer-shathmot-comttowantanturbe-smtyettorsuch2pereent 379 limitation: 380 th*isteméustarferewamtomfpuposs cxempted-fiumrsuchnhimitatiorrumder 381 Articie-H,Sectio"w-Pamgph'ofthe-Comstitution; 382 2Amy-taxleviedfforpurpoxesofammetropohturaeeasystemrofpabhietctramsportation; 383 authvriradbytivamemmemanetivrharcmsinsomastwtGagistams196t-pge 384 wlrmiusiaufashawENESatwtPpeN 385 ofthe-Constitutiompamctthclawsemsemasetdyursuamttorsmchrcomstitutiomat-amendment; 386 provridrthowever:thattathraepaopordaefermérthpmgmphahatomlyapply: 387 rmrwyimwtahemiwwPeeéne 388 Sasarss-ttinswewripatfreypswrepepusrufrarepat 389 outiaypojeetorprojetsisaswerepitfoumtiyposturpeisewer 390 pisfomtihypojettorpvtsiraméspestrmicostsardefinedumder 391 pamgaphtoffndesetio#s-WAurmycombmiomthereofméwvithrpet 392 towhichthecommtyhaseémvmimegeemmemafomtmettactwrthamumicpality: 393 imwhichntieawergewasmshmicptiyalityismotissthmss 394 mifiomgHomspertyptisetimgpoedrvshmmepaliyutobeuaedsokelyfor 395 watramdsewerprojetrméutrardtfanemmérpmgrpatt#ofEnd-Section 396 48-8-200. fheexceptiomprovidetforumderthssthissmhpamgrphshatapplyonlydurimg 397 tirperinae-thirta-uméermespangpreetyOririmefest: Theexception 398 providetforumiertirbpamgmphatatinnuampbyimmycoamimwhichataris 399 bimgsimposeumarArtici2Aoftirchper: 400 B)-Imarcoumtyimwihchrtnetarievviceforpurpoxtsfametropohtamrarearsystemrot 401 publit-trmportatiomrisfinstievischaferiamat2eieamteferrhmomyt,20t 402 Sachtarshattmotapplytoth-foliowing: 403 F-swwefitfskmd 404 eserfmtreaee H. B. 581 - 16- 24 HB 581/AP 405 E)-imarcoumtyimwhicrtaririevicdamdrulksetdpursumttoPart2ofAn - e2A 406 ofthis-chapter; 407 BimrtiertventufrratmerarcimpostdyursuamttuvEude Sertior*8--brumtytie 408 amotntimrexeessoftheimitattpercemtsmitsamduseturamtimrthtecventofamewly 409 imposctturpumsuamtivnl-SertioHs-6omtinexcssofatpeent 410 salesandusetax; 411 Asatesameusetaxtevicdumder. Article ofthischapter, - 412 5-Fitherasieramdurtaxievicumdes 1 1e - ofthischapterorassaitsandusctax 413 eviceumderArticie-sufthischapter: 414 *saitey-méusetaeicviscumarArstesAufthirchapter: 415 Asatesamdusetarlevictmder7 Articie2ufChapter9ufTitte-32, and 416 r*serméuetarir# ac undei - ticic3ofthschapter: 417 iFtieimpasiioofmyohemiemtvinéhshssrtachahuetmgurboethsite: 418 méusctarwoitreitiIPERPNEieREratathvrimety"hissabetior:then 419 ehotemicmtvtineerpan 420 (a)(1) Except as provided in this subsection. on and after. July 1. 2024. there shall not be 421 imposed in any jurisdiction in this state or on any transaction in this state local sales 422 taxes, local use taxes, or local sales and use taxes in excess of2 percent. For purposes 423 ofthis 2 percent limitation, the taxes affected are any sales tax, use tax, or sales and use 424 tax which is leviedi in an area consisting ofless than the entire state. howevera authorized. 425 including such taxes authorized by or pursuant to constitutional amendment, and 426 regardless of whether another provision of law purports to the contrary. except for the 427 following: 428 (A) A 1 percent sales and use tax for educational purposes exempted from such 429 limitation under Article VIII, Section VI, Paragraph IV oft the Constitution; H. B. 581 - 17- 24 HB 581/AP 430 (B) Upto 1 percent in aggregate ofany ofthe transportation related sales and use taxes 431 authorized under Articles 5. 5A. and 5B of this chapter and Article 2 of Chapter 9 of 432 Title 32: and 433 (C) Up to 1 percent in aggregate of any sales and use taxes authorized under Code 434 Section 48-8-96. Code Section 48-8-97, Article 2B of this chapter, Part 3 of Article 3 435 ofthis chapter. and Article 4 of this chapter. 436 (2) Notwithstanding any provision oflaw to the contrary, any tax that does not comply 437 with the limitations provided in paragraph (1) ofthis subsection as of July 1. 2025, but 438 was initiated in compliance with the law in effect prior to January 1. 2025, shall be 439 allowed to continue as authorized under laws that existed prior to July 1. 2025; 440 provided, however, that upon the expiration or termination ofany such tax, such tax shall 441 not be renewed and the jurisdiction that levied such tax shall be fully subject to the 442 limitations imposed by this subsection. 443 (3) This subsection shall not limit the imposition of any local excise tax, which is 444 separately authorized under Chapter 13 oft this title. 445 (4) Except as provided in paragraph (2) of this subsection. if the imposition of any 446 otherwise authorized local sales tax, local use tax, or local sales and use tax would result 447 in a tax rate in excess of that authorized by this subsection, then such otherwise 448 authorized tax shall not be imposed." I 449 SECTION 3-2. 450 Said title is further amended in Chapter 8, relating to sales and use taxes, by adding a new 451 article to read as follows: H. B. 581 - 18 - 24 HB 581/AP 452 I Article 2B 453 48-8-109.30. 454 (a) Pursuant to the authority granted by Article IX. Section II. Paragraph VI of the 455 Constitution of this state, there are created within this state 159 special districts. The 456 geographical boundaries ofeach county shall correspond with and shall be conterminous 457 with the geographical boundaries ofthe 159 special districts. 458 (b) The territory of each special district shall include all ofthe territory within the county 459 including all municipalities. to the extent the municipal boundaries lie within the 460 geographical boundaries of the county and any consolidated government. 461 48-8-109.31. 462 (a) Subject to the requirement ofapproval by localreferendum and the other requirements 463 of this article, to impose within any given special district a special sales and use tax for a 464 limited period oft time for the limited purpose of property tax relief. 465 (b) Except as to rate. a tax imposed under this part shall correspond to the tax imposed by 466 Article 1 of this chapter. No item or transaction which is not subject to taxation under 467 Article 1 oft this chapter shall be subject to a tax imposed under this article. except that a 468 tax imposed under this article shall apply to sales of motor fuels as prepaid local tax as 469 defined in Code Section 48-8-2 and shall be applicable to the sale of food and food 470 ingredients and alcoholic beverages as provided for in Code Section 48-8-3. 471 (c) The special sales and use tax provided for in subsection (a) oft this Code section may 472 be imposed by a special district in 0.05 percent increments, but in no event shall such tax 473 exceed 1 percent in total. The levy ofsuch tax upon sales ofi motor fuels as defined in Code 474 Section 48-9-2 shall only be imposed on the retail sales price ofthe motor fuel which is not 475 more than $3.00 per gallon. 476 (d)(1) As a condition precedent to the issuance ofthe call for the referendum: H. B. 581 - 19 - 24 HB 581/AP 477 (A) The governing authority of the county whose geographical boundary is 478 conterminous with that ofthe special district and the governing authority or authorities 479 of all municipalities that levy an ad valorem tax on property, other than those 480 municipalities that are excluded from the special district pursuant to paragraph (3)of 481 this subsection, shall have in effect a base year value or adjusted base year value 482 homestead exemption: and 483 (B) The governing authority of the county whose geographical boundary is 484 conterminous with that ofthe special district and the governingauthority or authorities, 485 if any, that represent at least 50 percent of the special district's residents of 486 municipalities that levy an ad valorem tax on property, other than those municipalities 487 that are excluded from the special district pursuant to paragraph (3) ofthis subsection, 488 shall enter into an mepovemmemaayremen calling forthe tax authorized under this 489 article and specifying the proposed rate of the tax, the proposed maximum period of 490 time that the tax is to be levied. and the proposed distribution oft the tax. 491 (2) Ifthe combined total ofthe populations of all such absent municipalities is less than 492 one-half of the aggregate population of all municipalities located within the special 493 district that levy an ad valorem tax on property, the political subdivisions entering into 494 the intergovernmental agreement shall, on behalfofs such absent municipalities. specify 495 a percentage of that portion of the remaining proceeds which each municipality that 496 levies anad valorem tax on property shallreceive. which percentage shalli not be less than 497 that proportion which each such absent municipality's population bears to the total 498 population ofall municipalities that levy ad valorem taxes on property within the special 499 district multiplied by that portion of the remaining proceeds which are received by all 500 suchmunicipalities within the special district. Noj portion ofthe tax shall be apportioned 501 to counties and municipalities that do not levy an ad valorem tax on property or do not 502 have a base year value or adjusted base year value homestead exemption in effect. H. B. 581 - 20 - 24 HB 581/AP 503 (3) Subject to the limitation provided for in Code Section 48-8-6. any special district 504 which wholly or partially contains a jurisdiction levying the tax provided for under 505 Article 4 of this chapter is authorized to levy the tax authorized under this article. Such 506 tax authorized under this article may only be levied in the areas of the special district 507 outside of the jurisdiction levying the tax provided for under Article 4 of this chapter. 508 Anyj jurisdiction levying the tax provided for under Article 4 ofthis chapter shall not be 509 considered within the procedure necessary to levy the tax under this article and shall not 510 be entitled to any portion of said tax. 511 48-8-109.32. 512 (a) The intergovernmental agreement required by this article shall specify the maximum 513 period of time ofthe tax, to be stated in calendar years or calendar quarters not to exceed 514 five years in total. 515 (b) Each such intergovernmental agreement shall prescribe that the county election 516 superintendent shall issue the call for an election fort the purpose ofsubmitting the question 517 ofthe imposition of the tax authorized by this article to the voters oft the county. The call 518 for and conduct of any such election shalll be in the manner authorized under Code Section 519 21-2-540. on a date specified by the intergovernmental agreement from among the dates 520 allowed under paragraph (2) of subsection (c) of Code Section 21-2-540. Such election 521 superintendent shall cause the date and purpose of the election to be published once a 522 week for four weeks immediately preceding the date of the election in the legal organ of 523 the county ori in a newspaper having general circulation in the county at least equal to that 524 ofthe legal organ. 525 (c) The exact ballot language shall be prescribed in the intergovernmental agreement 526 which imposes the tax authorized by this article, but shall contain, at a minimum, the 527 purpose ofthe tax, the rate ofthe tax, and the duration for which the tax shall be imposed. H. B. 581 - 21 - 24 HB 581/AP 528 (d) All persons desiring to vote in favorofimposing the tax shall vote 'Yes' and all persons 529 opposed to levying the tax shall vote 'No.' Ifmore than one-half oft the votes cast are in 530 favor of imposing the tax, then the tax shall be imposed as provided in this article: 531 otherwise, the tax shall not bei imposed and the question ofimposing the tax shall not again 532 be submitted to the voters of the special district until after 12 months immediately 533 following the month in whichi the election was held; provided, however. that, ifan election 534 date authorized under paragraph (2) of subsection (c) of Code Section 21-2-540 occurs 535 during the twelfth month immediately following the month in which such election was 536 held, the question ofimposing the tax may be submitted to the voters ofthe special district 537 onsuch date. The county election superintendent shall hold and conduct the election under 538 the same rules and regulations as govern special elections. Such election superintendent 539 shall canvass the returns, declare the result of the election, and certify the result to the 540 Secretary ofState and to the commissioner. The expense ofthe election shall be paid from 541 county funds. 542 48-8-109.33. 543 (a)(1) Ifthe imposition ofthe tax is approved by referendum, the tax shall be imposed 544 on the first day ofthe next succeeding calendar quarter which begins more than 50 days 545 after the date oft the election at which the tax was approved by the voters. 546 (2) With respect to services that are regularly billed on a monthly basis. however, the 547 resolution or ordinance imposing the tax shall become effective and the tax shall lapply 548 to the first regular billing period coinciding with or following the effective date specified 549 in paragraph (1) of this subsection. A certified copy of the ordinance or resolution 550 imposing the tax shall be forwarded to the commissioner to ensure iti is received within 551 five business days after certification of the election results. 552 (b) The tax shall cease to be imposed on the final day of the maximum period of time 553 specified for the imposition ofthe tax. H. B. 581 - 22 - 24 HB 581/AP 554 (c) For any special district in which a tax authorized by this article is in effect may, while 555 such taxi is in effect, the General Assembly may pass a local Act calling for a reimposition 556 ofa tax as authorized by this article upon the termination oft the tax then in effect, and a 557 referendum may be held for this purpose while the tax is in effect. Proceedings for such 558 reimposition shall be in the same manner as proceedings for the initial imposition oft the 559 tax as provided for in Code Section 48-8-109.32. Such newly authorized tax shall not be 560 imposed until the expiration of the tax then in effect. 561 48-8-109.34. 562 Atax levied pursuant to this article shall be exclusively administered and collected by the 563 commissioner for the use and benefit of the special district imposing the tax. Such 564 administration and collection shall be accomplished in the same manner and subject to the 565 same applicable provisions. procedures, and penalties provided in Article 1 ofthis chapter 566 except that the sales and use tax provided in this article shall be applicable to sales ofmotor 567 fuels as prepaid local tax as defined in Code Section 48-8-2: provided, however, that all 568 moneys collected from each taxpayer by the commissioner shall be applied first to such 569 taxpayer's liability for taxes owed the state: and provided, further, that the commissioner 570 may rely upon a representation by or on behalfofthe county government or the Secretary 571 of State that such a tax has been validly imposed, and the commissioner and the 572 commissioner's: agents shall not be liable to any person for collecting any such tax which 573 was not validly imposed. Dealers shall be allowed aj percentage ofthe amount ofthe tax 574 due and accounted for and shall be reimbursed in the form ofa deduction in submitting, 575 reporting, and paying the amount due if such amount is not delinquent at the time of 576 payment. Such dealer deduction shall be at the rate and subject to the requirements 577 specified under subsections (b) through (f)of Code Section 48-8-50. H. B. 581 - 23 - 24 HB 581/AP 578 48-8-109.35. 579 Each sales and use tax return remitting sales and use taxes collected under this article shall 580 separately identify the location of each retail establishment at which any of the sales and 581 use taxes remitted were collected and shall specify the amount ofsales and the amount of 582 taxes collected at each establishment for the period covered by the return to facilitate the 583 determination by the commissioner that all sales and use taxes imposed by this article are 584 collected and distributed according to situs of sale. 585 48-8-109.36. 586 The proceeds ofthe tax collected by the commissioner under this article shall be disbursed 587 as soon as practicable after collection as follows: 588 (1) One percent of the amount collected shall be paid into the general fund of the state 589 treasury to defray the costs of administration: and 590 (2) The remaining proceeds ofthe tax shall be distributed to the county whose boundary 591 is conterminous with the boundary oft the special district to be distributed thereafter by 592 such county among the political subdivisions within the special district in accordance 593 with the distribution schedule. which shall be prescribed in the intergovernmental 594 agreement imposing the tax. 595 48-8-109.37. 596 Where a local sales or use tax has been paid with respect to tangible personal property by 597 the purchaser either in another local tax jurisdiction within the state or in a taxj jurisdiction 598 outside the state, the tax may be credited against the tax authorized to be imposed by this 599 article upon the same property. If the amount of sales or use tax sO paid is less than the 600 amount oft the use tax due under this article, the purchaser shall pay an amount equal to the 601 difference between the amount paid in the other tax jurisdiction and the amount due under 602 this article. The commissioner may require such proof of payment in another local tax H. B. 581 - 24 - 24 HB 581/AP 603 jurisdiction as the commissioner deems necessary and proper. No credit shall be granted, 604 however, against the taxi imposed under this article for tax paid in anotherj jurisdiction ifthe 605 tax paid in such otheri jurisdiction is used to obtaina credit against any other local sales and 606 use tax levied in the special district or any political subdivision within the special district; 607 and taxes SO paid in another jurisdiction shall be credited first against the tax levied under 608 Article 2 of this chapter, ifapplicable. then against the tax levied under Part 1 of Article 609 3ofthis chapter, ifa applicable. then against the tax levied under Part 2 of Article 3 ofthis 610 chapter. if applicable. and then against the tax levied under this article. 611 48-8-109.38. 612 No tax provided for in this article shall be imposed upon the sale of tangible personal 613 property which is ordered by and delivered to the purchaser at a point outside the 614 geographical area of the special district in which the tax is imposed regardless of the point 615 at which title passes, if the delivery is made by the seller's vehicle, and including United 616 States mail or common carrier or by a private or contract carrier licensed by the Federal 617 Motor Carrier Safety Administration or the Georgia Department of] Public Safety. 618 48-8-109.39. 619 No tax provided for in this article shall be imposed upon the sale or use ofbuilding and 620 construction: materials when the contract for which the materials are] purchased or used was 621 advertised for bid prior to the voters' approval ofthe levy oft the tax and the contract was 622 entered into as a result ofal bid actually submitted in response to the advertisement prior 623 to approval ofthe levy of the tax. H. B. 581 - 25 - 24 HB 581/AP 624 48-8-109.40. 625 The commissioner shall have the power and authority to promulgate such rules and 626 regulations as shall be necessary for the effective and efficient administration and 627 enforcement ofthe collection of the tax authorized by this article. 628 48-8-109.41. 629 The tax authorized by this article shall be in addition to any other local sales and use tax. 630 Thei imposition ofany other local sales and use tax within a county, municipality. or special 631 district shall not affect the authority ofa county, municipality, or special district to impose 632 the tax authorized by this article, and the imposition of the tax authorized by this article 633 shall not affect the imposition of any otherwise authorized local sales and use tax within 634 acounty, municipality. or special district. 635 48-8-109.42. 636 (a) Any proceeds received by aj political subdivision from the tax authorized by this article 637 shalll be used bys suchy political subdivisionexclusivelyi fortax reliefandinc conjunction with 638 all limitations provided in the intergovernmental agreement authorizing the tax for such 639 political subdivision. 640 (b)(1) Each taxpayer's ad valorem tax bill shall clearly state the dollar amount by which 641 the property tax has been reduced as aj result ofthe imposition ofthe tax imposed under 642 this article. 643 (2) The roll-back rate for the political subdivision, which is calculated under Code 644 Section 48-5-32.1. shall be reduced annually by the millage equivalent of the net 645 proceeds of the tax authorized under this article. which proceeds were received by the 646 political subdivision during the prior taxable year. H. B. 581 - 26 - 24 HB 581/AP 647 (c) Ifany political subdivision is not in compliance with the use of the proceeds ofa tax 648 levied under this article, the commissioner shall not certify the tax digest ofs such political 649 subdivision until it complies with this Code section." I 650 PART IV 651 SECTION 4-1. 652 This Act shall become effective on January 1, 2025, and shall be applicable to taxable years 653 beginning on orafter.January 1,2025;provided, however, that, ifa constitutional amendment 654 which becomes effective on such date and which authorizes the General Assembly toj provide 655 by general law for a homestead exemption that applies statewide, but that permits political 656 subdivisions to individually opt out ofsuch homestead exemption, has not been ratified, then 657 this Act shall stand automatically repealed on such date. 658 SECTION 4-2. 659 All laws and parts oflaws in conflict with this Act are repealed. H. B. 581 - 27 - GEORGIA MUNICIPAL ACCG Advancing Georgia's Counties. ASSOCIATION 191 Peachtree Street NE, Sute 700- Atlanta, GA30303 201 Pryor Street, SW Atlanta, GA30303 ASSOCIATION COUNTY COMMISSIONERS OF GEORGIA & GEORGIA MUNICIPAL ASSOCIATION HB 581 (2024): Frequently Asked Questions Document The Local Opt-out Floating Homestead Exemption & Floating Local Option Sales Tax (FLOST) House Bill 581 was passed by the Georgia General Assembly during the 2024 legislative session and was signed into law by Governor Kemp on April 18, 2024. HB581 provides for several significant changes impacting local government revenue. Counties and cities must understand these changes and be prepared to make critical decisions in the coming months that will have lasting impacts. In general, HB 581 has three major components: first, the bill provides for some procedural changes to property tax assessments and appeals; second, the bill provides for a new statewide homestead exemption that applies to local governments unless the local government affirmatively opts out; third, the bill creates a new local option sales tax available to be used for property tax relief. This document provides frequently asked questions (FAQs) to give an overview of the key provisions of the bill, the statewide homestead exemption and new local option sales tax, and the considerations local governments must have in mind. Appendix A1 then includes an outline of these key provisions to help guide local decision making. A. Generally 1. In a nutshell, what is HB 581 (2024) about? HB 581 contains multiple provisions related to property tax and sales tax. Most relevant to this FAQ, the bill: a. Grants a statewide homestead exemption that limits the increases in the taxable value of homes to no more than the inflation rate that occurred over the prior year; b. Allows local governments to elect to opt out of this homestead exemption within their jurisdiction sO that it will not apply to their taxable values; and C. Authorizes most local governments with the new homestead exemption (or equivalent) to levy a new sales tax to be used for property tax relief. HB 581 (2024): Frequently. Asked Questions Document 2. Where did this proposal come from and what was the reason? Entering the 2024 legislative session, many egislators were concerned with the rapid rise in property values across the state, and in turn, the rise in property taxes. The homestead exemption proposal came from the General Assembly and was first introduced in the Senate. The reason was to provide more certainty to homeowners who are concerned about the significant increases to the taxable value of homes in recent years. Under this bill, if the local government does not opt out, then the homeowner knows their value may not increase by more than the rate of inflation, which prevents large jumps and helps them budget. The sales tax provision (FLOST) came from the House and was originally designed as a flexible new sales tax to act in place of sales tax laws written to apply to only one jurisdiction, such as that for the Coliseum SPLOST for Augusta-Richmond County; however, it changed throughout the legislative process to become a method to reduce millage rates imposed on all properties (homestead and non-homestead). B. The Homestead Exemption of HB 581 1. What type of homestead exemption does HB 581 provide? Is there a difference between floating, base-year, adjusted base-year, and frozen homestead exemptions? The core purpose of any base-year, floating, or frozen homestead exemption is to reduce or eliminate the tax impact of increases in the fair market value of a nomesteaded property that occur following the purchase of a home. The terms are, generally synonymous and used to describe either the practical or technical effect of the exemption. The key difference is whether such an exemption allows for adjustments to the base year value based on a standard rate or the inflation rate. For a base-year, floating, or1 frozen homestead exemption without an adjustment factor, the value of the exemption changes or floats each year to always equal and exempt the full difference between the base-year value of the home and the current value of the home, sO that the taxable value of the home never increases (but the millage rate may still increase). These are most often called frozen exemptions because the assessed value of the home is blocked from increasing (and often, from decreasing). For a base-year, floating, or1 frozen homestead exemption with an adjustment factor, the base year and the base year value for a homestead does not change, but the base year value is adjusted annually by a percentage equal to either a set rate or the inflation rate that occurred during the prior year. These are best called adjusted base-year homestead exemptions. In the case of HB 581, practically speaking, the homestead exemption limits the amount of any increase in the assessed value of homes to no more than the rate ofi inflation experienced over the prior year-it does not freeze the value. This is best described as an adjusted base-year homestead exemption, because it grants an exemption equal to the difference between the homestead's adjusted base-year value- generally the value for the year prior to the homeowner's application for the exemption plus an inflation factor for each year since the exemption was first granted--and the current year's true value. 2 HB 581 (2024): Frequently. Asked Questions Document Iti is important to note that most of these homestead exemptions do account for substantial changes in the property. For example, if a homeowner doubles the size of their house, then the base-year value may be increased, regardless of any freeze or limitation, but thereafter, the new base-year value enjoys the benefit of the exemption. Also important to note, these exemptions do not stay with the property nor the property owner when a change in ownership occurs. If an individual sells their home, the taxable value of that home resets to fair market value for the next owner. Similarly, the individual cannot carry the value of the exemption to their new home. 2. How is the value ofthe HB 581 homestead exemption determined? The value of the exemption is unique to each individual property and will generally change each year for such properties. The core purpose of a base-year or floating homestead exemption is to reduce or eliminate the impact of increases to the fair market value of a homestead. In the case of HB 581, the homestead exemption prevents rapid increases in the assessed value of homes but does not freeze the value. HB 581 is considered an adjusted base-year homestead exemption, because it allows the homestead's base-year value to increase annually by up to the inflation rate determined by the State Revenue Commissioner (likely the consumer price index) which occurred during the prior year. The value of the exemption is the difference between the adjusted base-year value and the fair market value. Even if two properties begin with identical base yearvalues, ift the fair market value of the properties diverge over time, then the property with the higher fair market value will receive the larger exemption while potentially paying the same in property taxes. 3. If my local government wants to opt out of the HB 581 homestead exemption, how can we do that? As authorized through a constitutional amendment (HR 1022 (2024)) and outlined in HB 581, the opt-out process is very similar to the public notification of tax increase" process that is required when a local government does not fully rollback its millage rate. The local government seeking to opt out of the HB 581 homestead exemption must advertise and hold three public hearings of intent to opt out, and then pass a resolution opting out and file it with the Secretary of State. The process maynot begin untili the effective date of the bill onlanuay1.2025.and must be completed by March1,2025. Each local government (county, city, school) may independently make the decision whether to opt out; any combination may elect to do nothing or opt out of the HB 581 floating homestead exemption. If a local government opts out, its taxpayers will not receive the benefit of the exemption, and their property will be taxed (absent other exemptions) at the property's fair market value. 4. Should my local government opt out of the homestead exemption if we already have another form of a floating, base-year, or frozen homestead exemption? There are at least a few things to consider when answering this question for your. jurisdiction. First, how far does your current floating homestead exemption extend? Does it cover all millage rates, including those for special districts? The reason that this is important to answer is that the HB 581 homestead exemption extends to all millage levies except for any bond levies. 3 HB 581 (2024): Frequently. Asked Questions Document Second, does your current homestead exemption incorporate any form of inflationary or automatic increase? The value oft the HB 581 homestead exemption for each homeowner is, in effect, reduced annually by the amount of inflation that occurred overt the prior year, which allows the taxable value of the homestead to rise over time in-line with inflation. Ify your jurisdiction has a set rise over time that is expected to exceed the inflation factor in HB 581, then your jurisdiction may want to opt out. Third, if the homestead exemptions are equivalent, you may want to consider opting out of the HB 581 floating homestead exemption to reduce confusion. Your jurisdiction would still have access to the new sales tax for property tax relief (FLOST) assuming all the conditions to impose the tax are met. 5. Does the HB 581 homestead exemption apply to community improvement districts (CIDs)? For all practical purposes, the homestead exemptions would not apply to CID's as CID's may only levy taxes on nonresidential property. Ga. Const. Art. IX, Sec. VII, Para. III(c). 6. How does the HB 581 homestead exemption affect tax allocation districts (TADs)? The homestead exemption could potentially reduce the amount of expected property tax revenue growth within the TAD by limiting the assessed value increase of homestead property over time. This question requires analysis specific to the TAD in question. 7. Can the HB 581 floating homestead exemption be later repealed for my county or city? Ifaj jurisdiction elects not to opt out of the HB 581 homestead exemption, they will not have an opportunity to opt out in the future and will have the homestead exemption permanently. There may be a method to remove such jurisdictions in the future, but it would require a change to general law or a constitutional amendment done by the legislature. 8. Will the HB 581 homestead exemption affect a homeowner's existing homestead exemptions? HB 581 does not eliminate any existing homestead exemptions for any jurisdiction, regardless of the type of homestead exemption, but it may override existing floating, base-year, and frozen exemptions, if the HB 581 exemption provides a greater benefit to the taxpayer. a. Ify your local government has an existing non-floating homestead exemption, such as an exemption for $5,000 of assessed value, that will be unaffected by HB 581. The floating homestead exemption is calculated first, and then the non-floating exemptions are calculated on the back end. That said, if the existing, non-floating local homestead exemption says that it may not be applied in addition to any other homestead exemption, then it may not be applied. b. Ify your local government has an existing base-year homestead exemption, then the taxpayer will receive whichever provides them with the largest benefit in any given year. Your tax assessor's office will be responsible fort tracking both floating homestead exemption values in addition to the fair market value. 4 HB 581 (2024): Frequently. Asked Questions Document For example, if there is an existing base-year or floating homestead exemption that does not have inflationary increases, then it would generally provide the larger benefit to the taxpayer. Similarly, if the base-year of a homestead exemption that is comparable to HB 581 pre-dates HB 581's base-year, then the older base year will likely provide the larger benefit. 9. Will it affect the county's ability to impose a FLOST if another city opts out of the homestead exemption granted by HB 581? Yes, if a city that imposes a property tax opts out, then the county and all cities within the county will be ineligible for the FLOST. If a city that does not levy a property tax opts out, then it would not affect the ability for the county to levy a FLOST. If even one city that opts out does levy a property tax at such time, then the FLOST would not be permitted. Of course, jurisdictions may opt out and not impact eligibility if the jurisdiction has another eligible homestead exemption in place. 10. If the county opts out of the homestead exemption will this impact a municipality's ability to impose a FLOST? Yes. Similarly, if a county opts out all municipalities in the county will be ineligible fort the FLOST unless the county has another eligible homestead exemption in place. 11. If a municipality or a county opts out of the HB 581 homestead exemption will homesteads have multiple assessed values for tax assessment? Yes, if the homestead exemption applies for some but not all jurisdictions, the taxable value of the property will essentially be different. The fair market value of a property is the same for all taxing jurisdictions where the property is subject to property tax. Homestead exemptions are applied after the fair market value of the home is determined and reduce the taxable value of the home- the taxable value may be different among. jurisdictions based on applicable homestead exemptions. Every county assessor's office is required to maintain a set of books with the fair market value of the property. The assessor's office will be required to maintain two or more sets of values if there are one or more floating homestead exemptions. Each homestead may have a different base-year value across multiple jurisdictions, but this will be tracked by the assessor's office. 12. For a home that has an exemption under HB 581, what happens if the home is substantially improved or is destroyed? How are changes to the home's value that do not result from market forces handled? Substantial changes to the property are considered when assessing the property. Any substantial change will increase or decrease the adjusted base year value of the home. Example: The adjusted base year value of a home as of January 1, 2028, was $500k. During 2028, the homeowner doubles the square-footage of her home and adds a swimming pool. As of January 1, 2029, the tax officials for the county determine that the changes to the home increase the value by $200k. The adjusted base year value for the 2029 tax year = $500k (the 2028 ABYV) + $200k (substantial change value) + any applicable inflation factor. 5 HB 581 (2024): Frequently. Asked Questions Document 13. If my local government opts out of the floating homestead under HB 581, can we opt in at al later date? Ify your local government opts out, there is no future opportunity for the local government to unilaterally opt-in or rejoin the HB 581 exemption. However, ,a local government may still obtain a similar homestead exemption in a traditional manner. The General Assembly may pass a local Act creating an equivalent local floating homestead exemption. This would require 2/3's vote in the General Assembly and a local referendum. The General Assembly may do this against the will of the local government. We encourage you to maintain a dialogue with your local legislators, especially if you intend to opt out. 14. If my local government opts out of the HB 581 floating homestead exemption and our legislative delegation disagrees with that decision, can they take action to mandate the floating homestead exemption on my local government? If your local government opts out of the HB 581 floating homestead exemption and your legislative delegation disagrees with that decision, your local delegation can pass a local Act to impose a floating homestead exemption within the jurisdiction. HB 581 has not changed the ability of the legislature to create specific homestead exemptions for local governments. This local Act would be subject to 2/3 vote in the General Assembly and approval by the voters in a local referendum. Ift the referendum is successful, then your local government would be subject to the homestead exemption provided fori in the local Act, even though you opted out of the HB 581 exemption. Note: A local government could elect to opt out of the HB 581 exemption and ask their local delegation to proceed with a more customized version of the homestead exemption. 15. Can the floating homestead exemption be transferred to a new owner of the home? No, the homestead exemption is not portable or transferable- -it is tied both to the property owner and the home. However, in the case of a surviving spouse who was not on the deed at the time of their spouse's death, said surviving spouse may continue the homestead exemption in the same manner as the deceased spouse, provided that the surviving spouse is otherwise eligible for the homestead exemption. For anyone else that acquires the home as a homestead, the base-year and base-year value will be reset to the year prior to the person's acquisition of the home and to the actual value for the home for such prior year. 16. How much land can be included in a qualified floating homestead exemption? Georgia state law states that the homestead exemption applies to the homestead and the land immediately surrounding the homestead; there is no specification for acreage. Manylocal homestead exemptions do limit the total acreage. It is likely up to local interpretation as to what 6 HB 581 (2024): Frequently. Asked Questions Document land constitutes the land "immediately surrounding" the homestead. The exemption would not include buildings or structures on the property, which are not part of the homestead dwelling, itself. 17. Does the HB 581 floating homestead exemption apply to special service districts? Yes, the HB 581 floating homestead exemption applies to all millage rates except for millage rates to retire bonded indebtedness. Point to consider: If the local government has an existing floating homestead exemption that does not apply to special service districts, then you may want to consider opting out, SO your special service district millage levies are unaffected. 18. If al homeowner's assessed value was locked following their appeal to the Board of Equalization in 2022, would that value be used for the 2024 base year for the purposes of the HB 581 exemption? The homestead's final assessed value for the base year is the base year value for the purposes of the HB 581 exemption. Code Section 48-5-44.2(a)3/A). Accordingly, if the locked assessed value from 2022 is what was lawfully used as the homestead's final assessed value for 2024, then that taxpayer would have their HB 581 2024 base year assessed value set at that same amount. 19. Will the market value or the adjusted base year value be used when calculating value increases to the tax digest that are factored into the rollback millage rate that cannot be exceeded without advertising a tax increase? The digest value for rollback purposes utilizes the net taxable digest, which is the value of the digest after exemptions are accounted for. 7 HB 581 (2024): Frequently. Asked Questions Document C. The Floating Local Option Sales Tax (FLOST) 1. Generally, what is the FLOST? The Floating Local Option Sales Tax or FLOST (named for its relation to the floating homestead exemption) is a new sales tax that can be levied up to 1 percent and collected county-wide. Funds are split between the county and cities based upon an intergovernmental agreement (IGA) and used for property tax relief. 2. What are the minimum requirements for a given county or municipality to be eligible to levy a FLOST? a. The county or municipality must levy a property tax and have a base-year or floating homestead exemption in effect'; b. AlL other municipalities within the county that currently levy a property tax must also have a base-year or floating homestead exemption in effect?; C. The county or municipality must have available room under the overall sales tax cap3; d. The county and the applicable number of municipalities must enter into an intergovernmental agreement as required under Code Section 48-8-109.310/0)B; e. Hold a successful local referendum4; and f. Utilize the proceeds for property tax relief and in accordance with the IGA5. . 3. Who must sign the intergovernmental agreement to authorize the referendum for the FLOST? The county must reach an intergovernmental agreement with municipalities levying a property tax that represent at least 50% of the total municipal population within the county. This minimum requirement does not preclude more municipalities than those representing 50% of the municipal population from signing the IGA if all parties agree. 6 Any municipality that does not sign the IGA is treated as an absent municipality' and will receive proceeds from the FLOST based upon the size of its population relative to the total municipal population within the county, excluding any municipalities that do not levy a property tax. Municipalities that do not levy a property tax are excluded from the calculations and from sharing in FLOST revenues. 7 1 Code Section 48-8-109.31d,0)A). 2 Code Section 48-8-109.31(d)0)A). 3 Code Section 48-8-6(a). 4 Code Section 48-8-109.32. 5 Code Section 48-8-109.42. Code Section 48-8-109.31(d)0)A). 7 Code Section 48-8-109.31(d)12). 8 HB 581 (2024): Frequently. Asked Questions Document 4. What must an IGA to levy FLOST include? a. The rate of the tax: incremental in 05% increments up to a full 1.0%; b. The duration of the tax: up to 58 years; C. Provisions for calling the referendum for the tax, including the question for the ballot; d. The distribution schedule" apportioning proceeds among: i. County ii. Municipalities iii. Absent Municipalities e. The IGA is not required to specify how property tax relief is to be applied but may do SO. 5. How is the sales tax referendum scheduled? First, there must be a valid intergovernmental agreement between the county and cities specifying the distribution of the tax. Next, the county may call fort the sales tax referendum similar to other sales tax referenda. 10 6. Is al local referendum necessary to impose the FLOST even if the ballot measure in November is successful? Yes. Iti is important to note that the ballot question in November of 2024 proposes a constitutional amendment which enables the homestead exemption. If this amendment is not approved, all of HB 581 (including the FLOST)i is repealed. If the constitutional amendment is approved, a subsequent referendum within the county is still required to levy the FLOST. Counties and cities should be mindful that the FLOST must be approved by voters in the county to be levied when making policy decisions concerning the homestead exemption. 7. Does FLOST revenue affect the rollback millage rate that is calculated for the purposes of Code Section 45-5-32.1 (Taxpayer Bill of Rights), which requires the advertising of a property tax increase, if exceeded? Yes. Unlike LOST, the total amount of FLOST collected in the preceding calendar year must be subtracted from the millage equivalent calculated to provide the jurisdiction with the same net proceeds from the current year's net taxable digest value as those derived from the previous year's millage rate when multiplied by the previous year's neti taxable digest value. 8 Code Section 48-8-109.32(a). 9 Code Section 48-8-109.36(2). 10 Code Section 48-8-109.32. 9 HB 581 (2024): Frequently. Asked Questions Document 8. What can the FLOST revenues be used for? FLOST revenue must be used for property tax relief. Per Code Section 48-8-109.42, FLOST revenues: "[S]hall be used exclusively for tax relief and in conjunction with all limitations provided in the intergovernmental agreement authorizing the tax for such political subdivision." Additionally: "Each taxpayer's ad valorem tax bill shall clearly state the dollar amount by which the property tax has been reduced as a result of the imposition of the tax imposed under this article' "; and "The roll-back rate for the political subdivision, which is calculated under Code Section 48-5-32.1 Taxpayer Bill of Rights], shall be reduced annually by the millage equivalent of the net proceeds of the tax authorized under this article, which proceeds were received by the political subdivision during the prior taxable year." 9. In what ways may the local government calculate and apply the FLOST property tax relief to the property tax bill? Outside of the parameters in Code Section 48-8-109.42, jurisdictions have latitude to apply the funds for legal purposes within the special district and as may be provided fori in the intergovernmental agreement. The tax relief must be applied uniformly across all forms oftangible property within the given taxing. jurisdiction for which it applies. For these purposes, taxing jurisdictions for which property tax relief may be granted can be the county, a municipality, or a special district, provided that the application is uniform within the given taxingj jurisdiction. When the credit or reduction is shown on the taxpayer's property tax bill, it MUST be applied as property tax relief, which would be a reduction in a charge that is assessed and levied upon the value of a property. The credit cannot reduce any charge or fee, which is not levied upon the value of the property (ad valorem). If a flat dollar amount is shown on the property tax bill, said dollar amount must be derived from the taxpayer's savings from the reduction in the millage rate or assessed value. While not required, the best practice is to include within the required IGA exactly how the proceeds of the FLOST will be applied as property tax relief. 10. What types of communities would benefit most from a FLOST? Communities that wish to supplant property taxes with sales tax would benefit from FLOST. It is a policy decision that would be expected to shift some of the tax burden imposed on the local government's property owners to those who make purchases within such jurisdiction. Accordingly, communities with sales tax revenues derived disproportionately from those living outside of the local government's jurisdiction would expect to see a net benefit for its property owners by shifting the tax burden to consumers; whereas those communities that have disproportionately few property owners among its many resident consumers would find only a shifting of the tax burden within the jurisdiction. 10 HB 581 (2024): Frequently. Asked Questions Document 11. How often does the FLOST have to be voted on? FLOST may be implemented for up to 5 years at a time, SO at least every! 5y years. Moreover, all FLOST renewals require a local Act of the General Assembly, SO there is no renewal without a local Act and a new IGA, and passage in a local referendum. 11 While there is no requirement of a local Act to initially levy the FLOST any subsequent renewal does require a local Act from the General Assembly. 12. My county doesn'thave a LOST. How will this affect my county, city, etc.? Having a LOST is not a requirement for the FLOST. LOST is the most similar sales tax to the FLOST, but the way property tax relief is calculated under FLOST is more flexible than LOST. 13. Does this bill require the Department of Revenue to provide point-of-sale information? This bill does not require DOR to provide point of sale information but does require such information to be furnished to DOR byt the retail establishments that are required to collect the tax. ALL sales for FLOST occur countywide (within the special district which is conterminous with the boundaries of the county), except in the case of a county containing a municipality that levies the Water and Sewer Projects Cost Tax (MOST), in which case the FLOST is not collected within the boundaries of the MOST city. 14. Are Water and Sewer Projects Cost Tax (MOST) cities ineligible for a FLOST? Yes, the cities that levy a MOST tax are ineligible to levy or receive proceeds from FLOST. This means that they are not counted when determining the municipal population in the county levying the LOST, the city levying the MOST cannot share in the proceeds of the FLOST, and the FLOST may not be levied within the municipal boundaries of the city levying the MOST. Currently, the MOST cities are: Atlanta, East Point, College Park, and Hapeville. 15. Ifthe school board opts out of the floating homestead exemption, can the county and municipalities still levy the FLOST tax? Yes, if the school board opts out, you can still levy the tax assuming all other requirements are met. Schools generally cannot receive revenues from sales taxes other than those authorized by the Constitution (ESPLOST) and certain existing Local Constitutional. Amendments (ELOSTS), SO it would require such a constitutional amendment specifically authorizing or requiring that school districts receive a share in the FLOST. 11 Code Section 48-8-109.33(c) 11 HB 581 (2024): Frequently. Asked Questions Document 16. If myj jurisdiction opts out of the HB 581 floating homestead exemption and has an existing base-year or floating homestead exemption, but which only applies to the general maintenance and operations (M&0) levy, would my jurisdiction be blocked from participating in the FLOST? No, not on that basis alone. f your local government has an existing floating or base-year homestead exemption of any kind, you may still qualify for the FLOST, even if you opt out of the HB 581 floating nomestead exemption. HB 581 only requires that you have some form of a base-year ori floating homestead exemption to participate in FLOST. Such exemption can either be a local floating homestead exemption (predating HB 581 or added after) or the HB 581 floating homestead exemption. Please note that the HB 581 floating homestead exemption will apply to all levies, including special service districts, except for bonded indebtedness. 17. If my county or city decides to opt of the homestead exemption, is it forever ineligible to levy the FLOST? No. First, your city or county may already have a homestead exemption in place making them eligible for the FLOST. Second, if there is no homestead exemption in place and your county or city opts out, it can once again become eligible to levy the FLOST in the future through a subsequent eligible homestead exemption put in place by a local Act of the General Assembly. 18. What happens if we pass al FLOST and our legislative delegation does not approve the renewal, or the voters do not renew it? Ifyou pass a FLOST and your legislative delegation does not approve the renewal or the voters do not renewi it, then the most likely outcome is an increase in the applicable millage rates. Since FLOST is sales tax being used to offset property tax, ift the FLOST expires, the local government will have to cut expenses, raise property taxes, or some combination thereof. 19. If my county has an ELOST, can we utilize the FLOST? If your county has an ELOST, the availability of FLOST depends on a few factors: a. Does the exact verbiage of the local constitutional amendment (LCA) limit the distribution of proceeds in the way that FLOST requires? Some of the LCAS are very permissive, and others are very restrictive. Please consult with your local jurisdiction's attorney for a legal opinion. b. Is the jurisdiction otherwise eligible to levy a FLOST? C. Does the jurisdiction have sufficient room under its local sales tax cap to levy a FLOST? See Code Section 48-8-6(a). ELOST Counties: Bulloch County; Chattooga County (and Trion City); Colquitt County; Habersham County; Houston County; Mitchell County ( and Pelham City); Rabun County; Towns County. 12 HB 581 (2024): Frequently. Asked Questions Document Appendix A: HB 581 - Timeline/Decision: Tree 1) November 5, 2024: Statewide ballot measure determining approval of constitutional amendment enabling homestead exemption. a) If the ballot question is not approved, HB 581 is repealed in its entirety. No further action is needed by local governments. AlL other property tax changes and the FLOST are repealed as well. b) If the ballot question is approved, counties, cities, and school boards may independently determine whether they would like to "opt out" of the homestead exemption and not have the exemption apply to their homeowners. 2) Beginninglanuary 1, 2025 through March 1, 2025, local governments may' "opt out" and not have their homeowners receive the HB 581 floating homestead exemption. a) If the local government decides not to "opt out" no action is required by the local government and the homestead exemption will go into effect. i) The HB 581 homestead exemption does not replace existing locally enacted homestead exemptions. (1) Ifyour local government has an existing flat dollar homestead exemption, the 581 exemption will be in addition to that exemption. (2) Ify your local government has an existing base year or adjusted base year exemption, the taxpayer will receive the more beneficial exemption. b) Ifyour local government decides to opt out, it must advertise and hold three public hearings of intent to opt out, and then pass a resolution opting out and file it with the Secretary of State by March 1, 2025. 3) If the November 2024 ballot question is approved, your county or city may decide whether to levy a FLOST for property tax relief. You must determine if you are eligible for the FLOST. a) Ify your county/city does not levy a property tax, you are not eligible to levy/participate in the FLOST. b) If you levy a property tax: i) Your county/city must have a base year or adjusted base year homestead exemption in place. *This may either be the homestead exemption provided by HB 581 or an existing base year or adjusted base year homestead exemption created by a local Act. ii) The county and every municipality in the county that levies a property tax must also have a base year or adjusted base year homestead exemption in place (HB 581 or existing). iii) Ift the county or any city that levies a property tax does not have an eligible homestead exemption in place, the county and all cities within are not eligible fori the FLOST. 13 HB 581 (2024): Frequently. Asked Questions Document c) If the eligibility criteria is met: The county and city or cities representing at least 50% of the municipal population of cities levying a property tax must sign an intergovernmental agreement (IGA) fort the levy of the tax. This IGA will set the rate (up to 1%), duration (up to 5 years), distribution of proceeds among the county and cities, and the ballot question to be used. ii) The levy of the FLOST must be approved by the voters across the county in a referendum. d) The FLOST may then be levied for up to 5 years before needing to be renewed. Prior to the expiration of the tax a renewal requires: A local Act by the Georgia General Assembly approving the renewal fori the jurisdiction, a subsequent IGA between the eligible county and cities, and a subsequent referendum for the voters to approve the renewal of the tax. Disclaimer This publication is for general informational purposes only. While some of the information contained int this publication is about legal issues, it is not and should not be treated as legal advice. Yous should consult withy your legal counsel before taking action based on the information contained in this publication. Material posted in this publication may be subject to copyrights owned by ACCG, GMA, or others, and any reproduction, retransmission or republication ofs such material, except for personal use or with the prior written consent of ACCG, GMA, or other copyright owner, is prohibited. The names, trademarks, service marks, logos and other emblems of ACCG and GMAi in this publication may not be used without ACCG's or GMA's prior written express permission. 14 1101 W. Clark Street Incorporated December 23, 1839 Oxford, GA: 30054 Phone 770-786-7004 Mayor David S. Eady Fax 770-786-2211 City Manager Bill. Andrew xFBKD wwwoxfordgeogiorg BIRTHPLACE OF EMORY UNIVERSITY City Clerk/ Treasurer Marciz Brooks January 23, 2025 PRESS RELEASE ANNOUNCING PUBLIC HEARINGS REGARDING THE STATEWIDE ADJUSTED BASE YEAR AD VALOREM HOMESTEAD EXEMPTION The City of Oxford today announces three public hearings to receive written and oral comments concerning whether to opt out of the statewide adjusted base year ad valorem homestead exemption. Public hearings for this purpose will be held on February 3, 2025, at 6:30 p.m., and February 17, 2025, at 10:00 a.m. and 6:00 p.m. Following the hearing at 6:00 p.m. on February 17, 2025, a Special Called Voting Meeting will be held at 6:30 p.m. during which the Mayor and City Council will vote on a resolution to opt out of the statewide adjusted base year ad valorem homestead exemption. All hearings and meetings will be held at Oxford City Hall, 110 West Clark Street, Oxford, Georgia, 30054. The Georgia General Assembly passed House Bill (HB) 581 during the 2024 legislative session, and Governor Kemp signed the bill into law on April 18, 2024. One of the bill's provisions is a new statewide homestead exemption that applies to local governments unless the local government opts out. The statewide homestead exemption limits the increase in the taxable value of homes to no more than the inflation rate that occurred over the prior year. It also authorizes local governments to impose a special purpose sales tax, subject to local referendum, up to one (1) percent to generate revenue to cover general government costs typically covered by revenue from property taxes. Local governments may elect to opt out of this homestead exemption within their jurisdiction SO that it does not apply to their taxable values. The Oxford mayor and council are eager to receive written and oral comments from residents and property owners in the city of Oxford as they consider whether to opt out of this statewide homestead exemption. In order to opt out, the city must conduct three public hearings, pass a resolution opting out, and file that resolution with the Secretary of State by March 1, 2025. The mayor and council are following this process to maintain the option of opting out while we receive input from our residents and property owners. Additional information on HB 581 and the statewide adjusted base year ad valorem homestead exemption is available online through the Association County Commissioners of Georgia (ACCG) and Georgia Municipal Association (GMA): hsaslssmSaaNCPEFHBSLFAO-FMALnN HB 581 Summary and Guidance ACCG & GMA Joint Trainings October 3rd, 2024 Ryan Bowersox Assistant General Counsel, GMA Dante Handel Associate Director of Governmental Affairs, ACCG GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Background: Where Did This Come From? Legislature entered 2024 session concerned about rising property value assessments and in turn property tax Senate leaders wanted measures to control rapid increases in property assessments TT House leaders looked - to expand sales tax - - E options I7 - Various proposals ultimately resulted in HB 581 (& HR 1022) GEORGIA AcCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION HB 581: Overview Signed into law April 18, 2024 (Act 379). Contingent upon November Statewide Referendum (HR 1022) Major Components: 1.Statewide Floating Homestead Exemption (Part 2) 2.New Local Option Sales Tax (Part 3) 3.Property Tax Procedural Changes (Part 1) GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Presentation Outline When does this bill take effect? Who gets a floating homestead exemption? What is a floating homestead exemption? What is the procedure to opt out and what is the timeline? What is the new sales tax? Other sales tax revisions Other property tax changes Policy considerations for local governments Other local government considerations GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION When Does this Bill Take Effect? HB 581 is contingent upon the passage of the constitutional amendment from HR 1022 on November 5, 2024 which allows local governments the ability to opt out of the floating homestead exemption. A simple majority is required for passage. If the constitutional amendment fails, all of HB 581 is repealed. If the constitutional amendment passes, then the bill takes effect January 1, 2025. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION HB 581 Part 1: Statewide Floating Homestead Exemption Ifapproved, HB 581 implements a statewide floating homestead exemption for all local governments: Counties Cities School Boards A floating homestead is a special type of nomestead exemption designed to offset or reduce increases in taxable value to the property. Itis also referred to as a base-year or value offset exemption. Freezes are a type of floating homestead exemption, but do not have an annual inflationary adjustment. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Does a Floating Homestead Exemption Work? It works by increasing the value of the exemption to offset inflation. For example, if a property had a taxable value of $100,000 and the taxable value increased the following year due to market changes to $110,000, then the exemption floats' to be worth IIII - - $10,000 of taxable value SO the taxpayer still pays on the original base year value of $100,000. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Does HB 581's Floating Homestead Exemption Work? The HB 581 floating homestead exemption is unique because the base year value is adjusted and will increase by a rate of inflation determined by the State Revenue Commissioner - likely CPI. Ifwe take the same property with a $100,000 taxable base year value and CPI is 2% the following year, then the base value of $100,000 may be increased by up to 2% to give an adjusted base year value of $102,000. The exemption floats' to be worth $8,000 of assessed value SO the taxpayer would pay on a taxable value of $102,000 in year 2. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Does HB 581's Floating Homestead Exemption Work? For homes first receiving this exemption in taxable year 2025, the base year assessed value will be the 2024 assessed value. For homes first receiving the exemption in later years, the base year assessed value will be the assessed value for the immediately preceding year. Similar to other homestead exemptions, the value will be reset when the home is sold and is adjusted with "substantial property change. 13 Homeowners can not transfer exemption to new property. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Does HB 581's Floating Homestead Exemption Work? The effect of HB 581's homestead exemption: The taxable value of a home may only increase at a $ rate of inflation each year. Essentially controlling this will control how much the "value" of a home can increase annually. nl Homeowners already granted a homestead will receive this exemption automatically, Non-homesteaded property (i.e. Commercial) will continue to be valued at fair market. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Does this New Homestead Exemption Impact Existing Homestead Exemptions? This new floating homestead exemption is in addition to and not in lieu of all non-floating homestead exemptions. This will not repeal/replace existing homestead exemptions! If there is an existing local floating homestead exemption, the taxpayer will receive whichever of the two exemptions is more beneficial. This is also true if a local floating homestead exemption is added in the future. Existing local exemptions, such as the $2,000 of assessed value, are added after the floating homestead exemption is calculated. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Can a Local Government "Opt Out" of the Homestead Exemption? Any governing authority may elect to opt out of the floating homestead exemption created by HB 581 by following a procedure like the public notification of tax increase" when a full rollback is not taken. The local government must advertise and conduct three public hearings of intent to opt out and later adopt a resolution. Must file resolution to Secretary of State by March 1, 2025! If procedures are not met, opt out is not effective. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Can a Local Government "Opt Out" of the Homestead Exemption? This process may not begin until the bill takes effect on January 1, 2025, and must be completed by March 1, 2025. U Agoverning authority may not opt-out of the statewide floating homestead exemption after this deadline. 1 However, the local delegation may pass a local Act of the General Assembly to implement a local floating homestead exemption at any time. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Can a Local Government "Opt Out" of the Homestead Exemption? Important to note: The decision to opt out is independent among local governments. 1 A county, the cities, and the school board may each decide whether to opt out. - / The decision of whether or not to opt out will not impact the other local government's TT homestead exemption. This may result in homes having different taxable values. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Is the Decision to "Opt Out" or 6 Stay In" Permanent? Yes No action is needed by the local government to have the homestead exemption apply if it is approved in November. Once the opt out period has passed, currently there is no future method to opt out. Ifa local government opts out, there is no future method to opt in to the HB 581 exemption. Of course, a similar homestead exemption can still be done in traditional manner. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION HB 581 Timeline November 5, 2024: Statewide Question on Constitutional Amendment January 1, 2025: HB 581 takes effect, if approved March 1, 2025: Deadline for local governments to "opt out" of homestead exemption GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION HB 581 Part 2: Sales Tax Revisions and FLOST HB 581 makes two major changes to local sales tax: Revises the provisions of O.C.G.A. 48-8-6 1q which limits the percentage of local sales tax a jurisdiction may levy. Creates new local option sales tax contingent upon jurisdictions having a base year value homestead exemption. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Revised Local Sales Tax Limitation This legislation revises the existing two percent local sales tax cap; exemptions now include: ESPLOST Up to one percent of the transportation sales taxes, which include: Regional TSPLOST Single-County TSPLOST Transit SPLOST MARTA One of the specialty pennies, including: The new sales tax for property tax relief created by HB 581 Columbus-Muscogee and Macon-Bibb OLOST Augusta-Richmond Coliseum SPLOST MOST for Atlanta and cities connected to its water system (East Point, College Park, and Hapeville) GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION What is the New Sales Tax? A new sales tax is created for the limited purpose of property tax relief - it may be levied in 0.05 percent increments up to one percent. To be eligible to levy the tax, both the county and all cities within the county that levy a property tax must have in effect a floating homestead exemption: either the one created by this bill or a local floating homestead exemption. It does not matter if the school boards opt out or not since they are ineligible to share in the proceeds of the tax without a separate constitutional amendment. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How is the New Sales Tax Implemented? The county and city/cities representing at least fifty percent of the municipal population of cities that levy a property tax must enter into an intergovernmental agreement (IGA) calling for the tax. The IGA shall specify the rate, duration (not to exceed five and the distribution % years), between the county and cities. It will also set the ballot question. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How is the New Sales Tax Implemented? Following the adoption of the IGA, the tax must be approved through local referendum. Approval by the voters will be required VOTE to levy the sales tax. This is a different vote than the one that occurs in November approving the constitutional amendment! GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How are Cities Not on the IGA Treated? The IGA must also specify a portion of the proceeds that the cities not on the IGA will receive. Must not be less than the proportion the absent municipality's population bears to the total x population of all cities within the county that levy a - ? - property tax. Modelled after LOST absent municipality provisions. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How are MOST Cities Treated? Cities levying a MOST (Municipal Option Sales Tax for Water and Sewer Projects) are excluded. - - Will not be considered for eligibility and are not - included in these calculations. C Tax will not be collected within the city and city can not receive the proceeds of this tax. Currently Atlanta, East Point, College Park, & Hapeville. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How is the New Tax Collected and Distributed? Collection of the tax will begin at the start of the next calendar quarter beginning more than 50 days after that date (as opposed to eighty days for other local sales taxes). The Georgia Department of Revenue (DOR) sends the money to the county and the county will be responsible for distributing the money to the cities in accordance with the IGA. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How Can the Tax Be Renewed? The tax can run up to 5 years. Prior to the expiration, if the local governments want to renew, it requires: Passage of a local Act calling for the reimposition of the tax. - Ar new IGA between the county and eligible number of cities. A new referendum to approve the tax by the voters. Talk to your local delegation! GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION How are Funds From the New Sales Tax Used? Funds must be used exclusively for property tax relief. Each taxpayer's property tax bill shall state the amount by which property tax has been reduced because of the imposition of this tax. The roll-back rate shall be reduced annually by the millage equivalent of the net proceeds of this new tax received by the political subdivision during the prior taxable year. If any political subdivision is not in compliance with the use of the proceeds from this tax, then the State Revenue Commissioner shall not certify the tax digest of that political subdivision until it comes into compliance. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION HB 581 Part 3: Procedural Property Tax Changes Created an "estimated roll-back rate" which is BILL certified to the tax commissioner/collector by the local governments. The estimated roll-back rate is required to be included on the assessment notice, replacing the previous year's millage rate. O - - Designed to attempt to allow local government to give more accurate estimate of what tax liability will be. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION HB 581 Part 3: Procedural Property Tax Changes This gives local governments broad flexibility to set this rate wherever they deem appropriate. This does not need to be the same millage rate as the rollback rate for taxpayer bill of rights. If the adopted millage rate exceeds the estimated roll-back rate, then a disclaimer is included on the tax bill stating the name of the governing authority that exceeded the estimated roll-back rate and that this will result in an increase of taxes owed. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION HB 581 Part 3: Procedural Property Tax Changes Removed the provision that the sale price is the maximum allowable fair market value in the next taxable year. This provision caused the Department of Audits and Accounts (DOAA) to change their sales ratio study methodology when it was originally passed in 2010, SO this change will improve the sales ratio study and prevent penalties on local governments and their taxpayers. This legislation also allows the Board of Assessors to appeal the sales ratio study directly instead of requiring a local government to appeal on their behalf. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION HB 581 Part 3: Procedural Property Tax Changes Modifying the three-year lock for appeals SO the taxpayer only receives the lock if they receive a value reduction upon appeal. Updating the settlement conference statute SO that if neither the taxpayer nor their representative participates in good faith, then the taxpayer shall not receive the benefit of the temporary 15 percent reduction in taxes owed and shall not be awarded attorney's fees. Requiring that the chief appraiser ensure that every parcel in the county be appraised at least every three years. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Policy Considerations for Local Governments As with any other local government choice, this is a policy decision with pros and cons to be considered. The floating homestead exemption rewards homeowners, especially those that reside in the community for a long period of time after this legislation takes effect. Taxes do not disappear - they only shift: in this instance, the taxes are shifting from homestead properties to all other property types (commercial, agricultural, industrial, residential non-homestead). GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Policy Considerations for Local Governments Taxation is a formula: taxable value multiplied by the millage rate gives the property tax revenue to meet local budgets. Since the floating homestead exemption slows the growth in value for residential homestead properties, it will create some upward pressure on the millage rate. The effects of a floating homestead increase over time, SO this will have a smaller impact in the early years and a larger impact in the later years. Counties and cities may more easily increase the millage rate if needed than schools due to the 20-mill cap, which may only be exceeded after the successful passage of a local referendum. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Other Local Government Considerations Each local government (counties, cities, and schools) may independently decide whether to opt out. This decision does not impact the homestead exemptions but cities and counties can impact eligibility for the FLOST. Every local government has a unique digest mix of property types. Local officials are encouraged to contact their Chief Appraiser for information regarding their specific situation. Some communities will better be able to support a floating homestead exemption than others. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Other Local Government Considerations The referendum is likely to be very popular and citizens may not understand a local government's decision. Even if your local government decides to opt out of the HB 581 floating homestead exemption, nothing precludes your local delegation of the General Assembly from passing a local Act putting a local floating homestead to referendum in your jurisdiction. If a local government decides to opt out, it may be best practice to explain this decision to the public and the local delegation. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Other Local Government Considerations Many jurisdictions have existing floating homestead exemptions. These typically apply only to M&O millage rates, but not to special service districts (SSDs). The HB 581 floating homestead exemption applies to special service districts in addition to M&O but does not apply to bond millage. Ifa local government that has a floating homestead exemption already in place does not opt out, then their special service districts will be affected by the new floating homestead exemption. Alocal government may consider opting out to avoid confusion. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Other Local Government Considerations While the decision to opt out of the floating homestead exemption is independent, instituting the new sales tax requires collaboration between the county and cities. The county and all cities in the county that levy a property tax must have a base year homestead exemption in place (statewide or through a local Act). The county and cities should discuss the option of the sales tax before expiration of the opt out period. Know the distribution is determined by the IGA, SO this should be discussed early. Alocal Act is required for renewal, SO involve your local delegation. GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Next Steps. . Joint ACCG-GMA Webinar Oct. 16th (live and recorded). This will be the same presentation Joint Guidance Document/FAQ released today! Document on GMA's Website Link to ACCG HB 581 page: ACCG Advancing Georgia's Counties GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION Contact Us Ryan Bowersox Assistant General Counsel, GMA bowersox@gacles.com Dante Handel Associate Director of Governmental Affairs, ACCG Dhandel@accg.org GEORGIA ACCG MUNICIPAL Advancing Georgia's Counties. ASSOCIATION