HB 92: Revenue and taxation; postpone date by which local governing authorities can opt out of base year homestead exemption - Georgia

LC 50 1125S/RCS → HB 92/AP* · 6 edits

MODERATE

The bill was updated from a committee substitute version to its final passed version, expanding its scope beyond just property tax definitions to include new provisions about sales and use tax exemptions for educational construction materials, automatic repeal mechanisms, and maximum sales tax limits. The homestead exemption definition was modified to clarify land acreage rules, and new requirements were added for notifying homeowners when jurisdictions opt out of property tax relief.

Scope change

The bill's scope expanded from primarily ad valorem property tax matters to include provisions about sales and use taxes, educational construction material exemptions, and automatic repeal conditions.

SCOPE

New provisions added to exempt sales or use of construction materials used in certain capital outlay projects for educational purposes, with limitations to local school systems that maintain specific homestead exemptions.

DEFINITION

The definition of 'Estimated roll-back rate' was modified to specify it applies to 'general maintenance and operations' millage rates rather than unspecified millage rates.

ELIGIBILITY

The homestead definition was modified to clarify that it includes only the primary residence and up to five contiguous acres of surrounding land, with additional rules for properties assessed under specific code sections.

REQUIREMENT

New requirements added for tax bills to include specific notices when jurisdictions opt out of homestead exemptions, including a statement about HB 581 and contact information for the levying authority.

TIMELINE

New provision added stating that opt-out notice requirements do not apply for taxable years beginning after December 31, 2029.

ENFORCEMENT

New provisions added regarding payment, collection, and refunds, along with automatic repeal mechanisms and maximum sales and use tax limits.

LC 50 1061S/hs → LC 50 1125S/rcs · 5 edits

MODERATE

The bill was amended by the House Committee on Rules to clarify and update provisions regarding property tax homestead exemptions and roll-back rate notifications. Key changes include updating the opt-out deadline for homestead exemptions, adding procedures to rescind an opt-out election, and refining the definition of estimated roll-back rates. These changes aim to improve clarity for taxpayers and local governing authorities regarding property tax exemptions and notification requirements.

Scope change

The bill's scope was expanded to include procedures for rescinding an opt-out election and clarifying the homestead exemption renewal process for surviving spouses.

TIMELINE

Updated the deadline for local governing authorities to opt out of homestead exemptions from March 1, 2025, 31, 2029 to March 1, 2025, 31, 2029 (formatting correction with substantive date confirmation).

REQUIREMENT

Added new procedures allowing governing authorities to rescind an election to opt out of the homestead exemption.

Clarified that surviving spouses do not need to reapply for homestead exemptions after the original owner's death.

DEFINITION

Updated the definition of 'Estimated roll-back rate' to ensure consistent calculation and certification methods for county, educational, and municipal tax purposes.

SCOPE

Changed the committee offering the substitute from Ways and Means to Rules, indicating a procedural shift in how the bill was processed.

LC 50 1030S/hs → LC 50 1061S/hs · 5 edits

MODERATE

This bill revises Georgia's property tax laws to clarify homestead exemption rules, update definitions for tax calculations, and establish new requirements for notifying property owners when tax rates increase. The changes aim to improve transparency in property taxation and simplify the homestead exemption renewal process for surviving spouses.

Scope change

The bill expands from focusing solely on homestead exemption opt-out procedures to include broader property tax bill requirements, definition updates for tax calculations, and enhanced notice provisions for property owners.

DEFINITION

Added a new definition for 'estimated roll-back rate' to clarify how property tax rate increases are calculated and communicated to taxpayers.

REQUIREMENT

Modified homestead exemption rules to automatically renew exemptions year-to-year and eliminate the need for surviving spouses to reapply.

Added requirement for property tax bills to include a notice when adopted millage rates exceed estimated roll-back rates, ensuring taxpayers are informed of tax increases.

Added requirement for public hearings on homestead exemption opt-outs to include at least one hearing within 30 days of the resolution's effective date.

TIMELINE

Modified the deadline for local authorities to opt out of homestead exemptions from March 1, 2025 to March 1, 2029, extending the window for local opt-out decisions.

LC 50 0993/a → LC 50 1030S/hs · 4 edits

MODERATE

The bill was amended to add a substitute version with a new effective date provision and reorganized structure. The main substantive change is the addition of Section 2 establishing when the law becomes effective, while Section 3 now handles repealing conflicting laws. Minor text edits were made throughout including changing 'public website' to 'website' and adjusting some formatting.

TIMELINE

Added Section 2 specifying the bill becomes effective upon Governor approval or when it becomes law without approval

REQUIREMENT

Changed 'public website' to 'website' in multiple instances throughout the notice requirements

TECHNICAL

Reorganized bill structure with new substitute designation and moved repeal provision to Section 3

Minor text adjustments including changing 'state-wide adjusted base year' to 'statewide adjusted base year'

Revenue and taxation; postpone date by which local governing authorities can opt out of base year homestead exemption

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