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"A Bill to be Entitled An Act...."
To amend Article 1 of Chapter 5 of
Title 48 of the Official Code of Georgia Annotated, relating to general
provisions regarding ad valorem taxation of property, so as to provide for the
comprehensive revision of provisions regarding certification and computation
method of the assessed taxable value of property; to specify the manner of
calculating millage rates; to provide for related matters; to provide an
effective date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY
THE GENERAL ASSEMBLY OF GEORGIA
SECTION 1.
Article 1 of Chapter 5 of Title
48 of the Official Code of Georgia Annotated, relating to general provisions
regarding ad valorem taxation of property, is amended by striking Code Section
48-5-32.1, relating to certification and computation method of the assessed
taxable value of property, and inserting in its place a new Code Section
48-5-32.1, to read as follows:
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THIS COLUMN
Explanation of Proposed
Changes |
"48-5-32.1.
(a) As used in this Code section, the term:
(1) 'Ad valorem tax' or 'property tax' means a tax imposed upon the assessed
value of real property.
(2) 'Certified tax digest' means the total net assessed value on the annual
property tax digest certified by the tax commissioner of a taxing jurisdiction
to the department and authorized by the commissioner for the collection of
taxes, or, in the case where the governing authority of a county whose digest
has not been approved by the commissioner has petitioned the superior court of
the county for an order authorizing the immediate and temporary collection of
taxes, the temporary digest so authorized.
(3) 'Levying authority' means a county, a municipality, or a consolidated
city-county governing authority or other governing authority of a political
subdivision of this state that exercises the power to levy ad valorem taxes to
carry out the governing authority's purposes.
(4) 'Mill' means one one-thousandth of a United States dollar.
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Definition updated to explain meaning of millage
to taxpayer |
(5) 'Millage' or 'millage rate' means the levy, in mills, which is established
by the governing authority for purposes of financing, in whole or in part, the
taxing jurisdiction's expenses for their fiscal year.
The millage represents the amount of tax, in dollars, on every thousand dollars
of net assessed value within the taxing jurisdiction required to funded
the portion of the budget that must be funded by ad valorem property tax
revenues for the fiscal year. |
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(6) 'Millage equivalent' means the number of mills which would result when the
total net assessed value added by reassessments is divided by the certified tax
digest and the result is multiplied by the previous year's millage rate.
(7) 'Net assessed value' means the taxable assessed value of property after all
exemptions.
(8) 'Recommending authority' means a county, independent, or area school board
of education that exercises the power to cause the levying authority to levy ad
valorem taxes to carry out the purposes of such board of education. |
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With the elimination of the millage rollback, the
definition of 'Roll back rate' is unnecessary. |
(9) 'Roll-back rate' means the previous year's millage rate minus the
millage equivalent of the total net assessed value added by reassessments;
provided, however, that if the taxing jurisdiction has created a redevelopment
area under the provisions of Chapter 44 of Title 36 and the roll-back rate that
would otherwise result is lower than the minimum millage permissible under such
chapter, the roll-back rate shall mean such minimum millage.
(10) (9) 'Taxing
jurisdiction' means all the real property subject to the levy of a specific
levying authority or the recommended levy of a specific recommending authority.
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With the elimination of the millage rollback, the
definition of 'Total net assessed value added by reassessments' is unnecessary.
Because the rollback is eliminated, the tax
commissioner is no longer required to certify the total net assessed value added
by reassessments. |
(11) 'Total net assessed value added by reassessments' means the total net
assessed value added to the certified tax digest as a result of revaluation of
existing real property that has not been improved since the previous tax digest
year.
(b) At the time of certification of the digest, the tax receiver or tax
commissioner shall also certify to the recommending authority and levying
authority of each taxing jurisdiction the total net assessed value added by
reassessments contained in the certified tax digest for that tax digest year of
the taxing jurisdiction.
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This represents the codification of the correct
procedure for calculating the millage rate.
For a narrative description of the calculation,
go here. |
(b) Whenever a
recommending authority or levying authority shall propose to adopt a millage
rate, it shall calculate the proposed millage as follows:
(1) A dollar
figure representing the portion of the budget for the fiscal year that must be
funded by ad valorem property tax revenues shall be determined;
(2) A dollar
figure representing the tax jurisdiction's net tax digest shall be determined
and that figure shall be multiplied by 40 percent; and
(3) The amount
determined under paragraph (1) of this subsection shall be divided by the amount
determined under paragraph (2) of this subsection; and
(4) The result
of the calculation under paragraph (3) shall be multiplied by 1,000 and
the resulting figure shall
be the millage rate. |
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Because the rollback is eliminated, the
advertisement requirements are simplified. |
(c)(1) Whenever a recommending authority or levying authority shall
propose to adopt a millage rate which does not exceed the roll-back rate, it
shall adopt that millage rate at an advertised public meeting and at a time and
place which is convenient to the taxpayers of the taxing jurisdiction, in
accordance with the procedures specified under Code Section 48-5-32.
(2) In those instances
in which the recommending authority or levying authority proposes to establish
any millage rate which would require increases beyond the roll-back rate
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The wording of the required millage advertisement
is updated to reflect the elimination of the rollback.
A more detailed and informative advertisement is
under consideration. |
(1) Prior to establishing any millage rate, the
recommending authority or levying authority shall advertise its intent to do so
and shall conduct at least three public hearings thereon, at least one of which
shall commence between the hours of 6:00 P.M. and 7:00 P.M., inclusive, on a
business weekday. The recommending authority or levying authority shall place an
advertisement in a newspaper of general circulation serving the residents of the
unit of local government, which shall read as follows:
'NOTICE OF PROPERTY TAX INCREASE MILLAGE
RATE
The (name of recommending
authority or levying authority) has tentatively adopted
proposed to adopt a millage rate which will
require an increase in property taxes by (percentage increase over roll-back
rate) percent of ___________.
All concerned citizens are invited to the public hearing on this tax
increase millage rate to be held at (place
of meeting) on (date and time).'
Simultaneously with this notice the recommending authority or levying authority
shall provide a press release to the local media.
(3) (2) The advertisement shall
appear at least one week prior to each hearing and shall be prominently
displayed and shall not be placed in that section of the newspaper where legal
notices appear. |
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Because a mathematical rate will be required and
the rollback eliminated, this paragraph is no longer necessary. |
(4) No recommending authority shall recommend and no levying authority
shall levy a millage rate in excess of the proposed millage rate as established
pursuant to paragraph (2) of this subsection without beginning anew the
procedures and hearings required by this Code section and those required by Code
Section 48-5-32.
(5) (3) Any notice or hearing
required under this Code section may be combined with any notice or hearing
required under Article 1 of Chapter 81 of Title 36 or Code Section 48-5-32.
(d) Nothing contained in this Code section shall serve to extend or authorize
any millage rate in excess of the maximum millage rate permitted by law
or to prevent the reduction of the millage rate. |
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(e) The commissioner shall not accept for review the digest of any county which
does not submit simultaneously with such digest evidence of compliance with this
Code section by the levying authorities and recommending authorities with the
exception of municipal governing authorities. In the event a digest is not
accepted for review by the commissioner pursuant to this subsection, it shall be
accepted for review upon satisfactory submission by such authorities of such
evidence. The levies of each of the levying authorities other than the county
governing authority shall be invalid and unenforceable until such time as the
provisions of this Code section have been met.
(f) The commissioner shall promulgate such rules and regulations as may be
necessary for the administration of this Code section."
SECTION 2.
This Act shall become effective
on January 1, 2007.
SECTION 3.
All laws and parts of laws in
conflict with this Act are repealed.
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Updates under consideration
Simplification of mathematical millage requirement. Several legislators have
expressed concern about the "political viability" of a bill that includes the
actual millage computation. Some prefer a general requirement that taxing
authorities adopt a millage rate that generates no more tax revenue than
required by the respective budget. The procedure for arriving at a mathematical
millage would instead be incorporated in the administrative regulations
promulgated by the Department of Revenue.
Improved wording of the millage public hearing
advertisement. The updated advertisement will include a five-year history of
the components of the millage calculation, the total budget, and the portion of
the budget to be funded by property tax revenue stated as a percentage of the
total budget.
First-year millage inflation protection.
In the first year of requirement of a mathematical millage, taxing
authorities could increase expenditures to justify and maintain an
already-inflated prior year's rate rather than calculate the millage rate based
on proper and controlled expenditure levels. The following first-year
requirement should eliminate this possibility.
For the first millage following the effective
date, levying and recommending authorities must adopt either last year's
mathematical rate or the current year's mathematical rate, whichever is
lower. A taxing authority's first-year millage would be no higher than the prior
year's adopted millage unless the taxing authority adopted a deficient rate. In
that case, the jurisdiction would adopt the current year calculated rate, which
may be higher than the prior year adopted rate. For most cities, counties
and school boards, however, the first-year mathematical rate will be lower
than last year's adopted rate. |
