2010 Legislative Survey Supporting Documentation

1.) Taxes:
• Senate Bill 366 Summary:
This legislation provides for a single sales and use tax of up to 1 percent to fund transportation purposes in a transportation district. Each county in the state is wholly within one transportation district. A “district” is: (1) The metropolitan transportation district which encompasses and is coterminous with the geographical area on January 1, 2010, of each metropolitan planning and development commission that was activated prior to January 1, 1972; and (2) Special transportation districts not encompassing any part of the metropolitan transportation district that may be created by the governing authorities of two or more contiguous counties or by the governing authority of a single county.

Metropolitan Transportation District (O.C.G.A. § 48-8-222)
Management and supervision of the metropolitan transportation district is vested in a district board to consist of those members of the metropolitan planning and development commission holding elective public office. Each county in the district may select one or more transportation agencies to be responsible for designing, planning, and contracting for the construction of district projects. The district, in cooperation with its constituent counties and qualified municipalities and its designated transportation agency, must approve by resolution a list of transportation purposes/projects to be funded by the tax. Approval of the resolution requires a majority vote of the voting members of the district and must include:
• A list of the specific transportation purposes/projects to be funded;
• The approximate cost of the transportation purposes/projects, which must also be the maximum amount of net proceeds to be raised by the tax; and
• The rate of the levy.

The district resolution must be immediately transmitted to the governing authority of each county and qualified municipality which then has 45 days to vote to opt the county out of the district. A county may opt out of the district on: the affirmative vote of the county governing authority by resolution; and, if there are one or more qualified municipalities within the county whose area within the county contains more than 50 percent of the population of the county, the affirmative vote on resolutions by the governing authorities of such qualified municipalities. After a county opts out of a district, the remaining counties have 30 days from the expiration of the 45-day period to opt out. The district may revise the list of transportation projects. Prior to adoption of the resolution calling for the referendum, the governing authority of any county sharing a boundary with any county within a district may by resolution opt into the district. Not less than 10 days prior to a vote on a resolution for this purposes, notice of the intention a county to opt in must be transmitted to the governing authority of the county to the metropolitan transportation district board. As soon as practicable, the voting officials of the district may, by a majority vote, submit to the electors of the district the transportation project list and the question of whether to levy the tax.

Special Transportation Districts (O.C.G.A. § 48-8-223)
The county or counties that desire to levy the tax within a special transportation district must deliver or mail a written notice of a meeting to the mayor or chief elected official in each municipality located within the district at least 10 days prior to the date of the meeting. The meeting must be held at least 30 days prior to the call for a referendum. Following the meeting, the governing authority or authorities of the county or counties within the district may enter into an intergovernmental agreement with each other and with one or more qualified municipalities within the district containing a combined total of no less than 50 percent of the aggregate municipal population located within the district. At a minimum, the intergovernmental agreement must include the following:
• A list of the projects and proposals qualifying as transportation purposes proposed to be funded from the tax;
• The estimated or projected dollar amounts allocated for each transportation purposes from proceeds from the tax;
• The procedures for distributing proceeds from the tax to qualified municipalities;
• A schedule for distributing proceeds from the tax to qualified municipalities which must include the priority or order in which projects will be fully or partially funded;
• A provision that all transportation purposes included in the agreement must be funded from proceeds from the tax;
• A provision that proceeds from the tax be maintained in separate accounts and utilized exclusively for the specified purposes;
• Necessary record-keeping and audit procedures; and
• Other provisions chosen to be addressed.

If the parties fail to reach an agreement within 60 days, the parties must submit the dispute to nonbinding arbitration, mediation, or other means of resolving conflicts in a manner which reflects a good faith effort to resolve the dispute. If the parties fail to reach an agreement within 60 days of submitting the dispute, any party may file a petition, no later than 30 days after the last day of the 60-day alternative dispute resolution period, in superior court of the county seeking resolution of the items remaining in dispute. The county and qualified municipalities representing at least 50 percent of the aggregate municipal population of all qualified municipalities located wholly or partially within the district must separately submit to the judge and other parties a written best and final offer as to the distribution of the tax proceeds.

The judge’s decision on the allocation of the tax proceeds must adopt one submitted best and final offer; however, the decision must include findings of fact. The decision must be based on certain goals that include, but are not limited to, navigation around metropolitan area congestion; connection of major freight origins and destinations; implementation of current transportation plans, expansion of access to jobs and linkage of labor markets, and enhancement of public mass transit operations and capacity. Costs of any conflict resolution must be borne proportionately by the affected political subdivisions. Prior the the adopting of a resolution calling for a referendum, the governing authority of any county sharing a boundary with any county within a district may be resolution opt into the district. Written notice must be given to each county and to each municipality of a meeting to discuss possible projects for inclusion in the referendum. No later than 30 days after execution of an intergovernmental agreement or entry of the judge’s final order, the county or counties must call for a referendum to submit the projects list and the question of whether the tax should be approved to electors of the district in an election called for this purpose.
Tax Proceeds
The proceeds of the tax must be transferred to a trust fund maintained on behalf of the district by the metropolitan district board or by one county, or some other public body agreed to by the county or counties, that created the special transportation district. In the metropolitan transportation district, no less than 50 percent of the proceeds of the tax must be used for public transportation purposes. Any county or municipality that levies the tax is not required to expend any funds for public transportation purposes.

Exemptions
The tax will only be levied on the first $10,000 of any transaction regarding a motor vehicle, watercraft, or aircraft. The tax will not apply to:
• The sale or use of any type of fuel used for off-road heavy-duty equipment, off-road farm or agricultural equipment, or locomotives;
• The sale or use of tangible personal property used in the production or generation of energy; or
• The sale or use of energy used in the manufacturing or processing of tangible goods primarily for resale.

The tax will be subject to any sales and use tax exemption otherwise imposed by general law; however, the tax will not be levied on the sale of food or beverages.

Effective Date
This legislation is effective on January 1, 2011; however, it will only be effective upon ratification of a resolution at the November 2010 state-wide general election which amends the State Constitution. If the resolution is not ratified, the legislation will stand repealed in its entirety on January 1, 2011.

• Georgia Senate Bill 366

2.) Revenue Generating Proposals:
• House Bill 67 Summary

• Georgia House Bill 67

• House Resolution 1110 Summary

• Georgia House Resolution 1110

3.) Texting:
• House Bill 944 Summary

• Georgia House Bill 944

4.) Appointed Positions
• Senate Bill 393 Summary
This legislation provides for the following offices to be appointed by the Governor and confirmed by the Senate: Commissioner of Agriculture, State School Superintendent, Commissioner of Labor, and Commissioner of Insurance. Currently, all of these offices are elected. The persons elected to these offices in the November 2010 election are to serve out their terms, with the Governor’s appointing power to begin upon the expiration of the term or vacancy of the office. The bill also provides for the salaries of these offices to be set by the Governor.

• Georgia Senate Bill 393

5.) Assessments:
• Senate Bill 346 Summary
This legislation revises numerous provisions relating to real property tax assessments and appeals.

PART I:
Annual assessment notices must be provided to property owners regardless of changes in value, and conform with a statewide uniform assessment notice that will be draft by the GDOR Commissioner. The notice must also contain any comparable sales data used to determine Fair Market Value (FMV). The GDOR Commissioner must also draft a uniform appeal form for taxpayers to use which allows taxpayers to submit relevant information along with that appeal; moreover, the GDOR Commissioner must set statewide dates for mailing the annual notice to taxpayers.

PART II:
Counties will be authorized to create regional boards of equalization; these regional boards will operate the same as local boards. Board of equalization members will be required to execute in writing a specific oath which states the members will make decisions without favor or prejudice. If a local grand jury fails to appoint members to a board of equalization, a taxpayer or tax assessor may request in writing that the grand jury complete the appointments within five days of receipt of the request. Each county will be required to assign a person to oversee the local board of equalization.

Group appeals of commonly-owned or managed property assessment will be authorized.

Property owners will be allowed to file an appeal at any time during the year following reassessment. If the property owner and the local board of tax assessors sign an agreement setting value, the existing appeal will terminate.

The GDOR Commissioner will draft rules governing procedure during hearings before local boards of equalization, and these rules must be updated at least every five years. On appeal, if the actual FMV is determined to be less than the assessor’s FMV after August 1, the property owner will receive a deduction on the subsequent year’s tax bill; the same will apply if there is an increase in the assessment.

All decisions by the board of equalization which increases a valuation must be unanimous; absent unanimity, the result will favor the taxpayer.

Computations of time for applicable deadlines will mirror civil judicial rules. If the taxpayer and tax assessor agree in writing to the FMV, the county must record the agreed amount on all necessary documents to reflect the value.

If county commercial property exceeds $1 million cumulative value according to the tax digest, then a licensed appraiser will be appointed for commercial appeals.

Regarding arbitration, a taxpayer may request same for up to a year following notice of assessment and is deemed filed by the date of the postmark, receipt delivery, or by PDF email, if this process is approval by the local board of assessors. Proof of service may be made to the taxpayer, an attorney or to an agent. The same applies to notices for binding arbitration. A “certified appraisal” is defined at one given, signed, and certified by a registered real estate appraiser. Following receipt of notice for binding arbitration, the board of tax assessors has ten days to send the taxpayer acknowledgement of receipt and inform the taxpayer of 45 days to provide the board with a certified appraisal and confirmation of applicable filing fees. Failure to provide the appraisal and necessary fees will terminate the appeal unless the appeal is forwarded to the board of equalization. The board of assessors must accept or reject the certified appraisal within 45 days. If rejected, it will be certified with 45 days to the local superior court which has jurisdiction over the subject property. If the assessors fail to reply either way, the certified appraisal provided by the taxpayer becomes the final value. If more than one parcel is appealed by a single taxpayer, the taxpayer may request consolidation of these appeals into a single hearing.

Laws governing tax returns will not apply to arbitration or to appeals to the superior court. The taxpayer and board of assessors may mutually waive appeal to the county board of equalization and appeal directly to the superior court. Attorneys representing taxpayers must be provided copies of all notices required to be provided to the taxpayer.

PART III:
Existing requirements for property tax returns are eliminated. All real and personal property, regardless if owned by resident or nonresident, will taxed at FMV, and a return will not be necessary for real property owned by Georgia residents. Personal property owned by nonresidents must be returned for taxation, and tax liability will attach to personal property owned by nonresidents. Tax Commissioners must receive returns for personal property under the existing timeframe: January 1 to April 1.

All real and tangible personal property located on airport premises will be subject to taxation, and aforementioned personal property must be returned. Existing penalties for failure to make returns will apply to personal property.

PART IV:
Local tax officials and staff including tax collectors and tax commissioners, appraisers, tax assessors, and equalizers will be required to receive instruction through education and training courses provided by GDOR. The materials must be updated at least every five years. Online training will be available for some courses. All training will be made available to by GDOR to taxpayers or attorneys upon request for a reasonable fee.

New tax collectors or tax commissioners as of January 1, 2011, must complete 40 hours of training.

PART V:
The statutory definition for FMV is changed so that the previous owner of the subject property cannot be considered by the tax assessor; there is no difference between individual or bank sale transactions. Further, the sales price will be the maximum assessed value for a one-year period after the transaction.

The tax assessor must apply existing zoning of a property in question, and is precluded from considering future uses to determine FMV. The use of view factor technique of inspecting property is prohibited.

PART VI:
During the period of assessment increase moratorium, a county cannot be charged with fines or penalties for deficient tax digest if it directly relates to the statutory freeze.

PART VII:
Counties and cities will be authorized to refund taxes paid but appealed under the purview of this legislation.

PART VIII:
If annual reports by the GDOR Commissioner to the local boards of tax assessors are made on or after August 1, the board or tax assessors must use the report of the past year for its current tax year.

PART IX:
Counties and cities may allow tax payments by installment and set the due dates for those installment payments and receive the tax payments by any form of payment.

Certain requirements for publishing reports of the ad valorem tax rates are eliminated; however, advertisements must be published regarding millage increases and rollback rates. The notice must provide an example of the proposed tax increased for a specific FMV on homestead and non-homestead property. The GDOR Commissioner retains the right to void any millage roll-back increases (if the law has not been followed by the various authorities), and any revenues already received will be returned to the taxpayer.

Roll-back rates for millage purposes are required to be calculated and certified to the GDOR Commissioner by the local tax commissioner for county and educational purposes and as calculated by a municipal tax officer.

• Georgia Senate Bill 346