By David Hudson
General counsel, Georgia Press Association
OCT. 15, 2024 | With two constitutional amendments and one statewide referendum on the November ballot in Georgia, here is my assessment of these ballot initiatives.
Hudson
Constitutional Amendment 1: Authorizing a Statewide Homestead Exemption for Ad Valorem Taxes.
- This will be a Statewide vote on whether the Georgia Constitution should be amended to permit the General Assembly to set a statewide homestead exemption for local government taxation beginning January 1, 2025.
- In doing so, the General Assembly may exempt the application of this new homestead amount so that it does not apply to political subdivisions that already have an existing homestead exemption.
- Also, any local government may choose to opt out of the new exemption passed by the General Assembly.
- For a local government entity to opt out of a new homestead exemption, it must advertise its intent to do so and conduct at least three public hearings. O.C.G.A. § 48-5-44.2(i), as passed in 2024.
- Summary: This amendment would make a homestead exemption the norm statewide for ad valorem taxation. It would then be up to each political subdivision to determine whether to apply the exemption or opt out.
Constitutional Amendment 2: Creation of a Georgia Tax Court.
This vote will decide whether the Georgia Constitution should be amended to permit the General Assembly to add a Georgia Tax Court. This new Court would operate under the Judicial Branch of Georgia and replace the current Tax Tribunal which operates under the Executive Branch. The Tax Court would be a part of the Georgia Judiciary.
- This Court shall have a governor-appointed judge approved by the General Assembly.
- The Court shall conduct its proceedings in any County as the General Assembly may provide in legislation for operation of the Court.
- The advantage of this Court is that its judge or judges will have expertise to decide cases pertaining to the assessment and collection of State or local taxes.
- Appeals would be permitted from decisions of the Tax Court as currently apply for appeals from Superior Courts.
- For the Tax Court to obtain jurisdiction of a case, it must be by agreement of the parties to the dispute.
- Summary: This amendment was passed by near unanimous votes of the Georgia House and Senate. It does not appear to have any negative impact, and has the potential to provide a more efficient forum for resolving tax litigation.
Statewide Referendum: To Increase the Property Tax Exemption on Tangible Personal Property
In the 2024 Session, the General Assembly passed HB808 which will increase the exemption for ad valorem taxation on certain personal property from $7,500 to $20,000. It will only go into effect if approved by the majority of voters statewide at the election on November 5, 2024.
- Summary: For several years, the State has operated at a budget surplus and various tax reduction legislation has been passed. This provision would be consistent with those measures.
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