Bill Text: GA HB794 | 2011-2012 | Regular Session | Introduced

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Bill Title: Ad valorem taxation; property; change certain definitions

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-01-26 - House Second Readers [HB794 Detail]

Download: Georgia-2011-HB794-Introduced.html

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12 LC 34 3238

House Bill 794

By: Representatives Mayo of the 91st, Riley of the 50th, Kaiser of the 59th, Lindsey of the 54th, and Marin of the 96th

A BILL TO BE ENTITLED
AN ACT

To amend Code Section 48-5-2 of the Official Code of Georgia Annotated, relating to definitions regarding ad valorem taxation of property, so as to change certain definitions; to provide for related matters; to provide for an effective date; to repeal conflicting laws; and for other matters.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Code Section 48-5-2 of the Official Code of Georgia Annotated, relating to definitions regarding ad valorem taxation of property, is amended by revising paragraphs (.1) and (3) as follows:

"(.1) 'Arm's length, bona fide sale' means a transaction which has occurred in good faith without fraud or deceit carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his or her own self-interest, including but not limited to a distress sale, short sale, bank sale, or sale at public auction."

"(3) 'Fair market value of property' means the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm's length, bona fide sale. The income approach, if data is available, shall be considered in determining the fair market value of income-producing property. Notwithstanding any other provision of this chapter to the contrary, the transaction amount of the most recent arm's length, bona fide sale in any year shall be considered in determining the the maximum allowable fair market value for the next taxable year. With respect to the valuation of equipment, machinery, and fixtures when no ready market exists for the sale of the equipment, machinery, and fixtures, fair market value may be determined by resorting to any reasonable, relevant, and useful information available, including, but not limited to, the original cost of the property, any depreciation or obsolescence, and any increase in value by reason of inflation. Each tax assessor shall have access to any public records of the taxpayer for the purpose of discovering such information.

(A) In determining the fair market value of a going business where its continued operation is reasonably anticipated, the tax assessor may value the equipment, machinery, and fixtures which are the property of the business as a whole where appropriate to reflect the accurate fair market value.

(B) The tax assessor shall apply consider the following criteria in determining the fair market value of real property:

(i) Existing zoning of property;

(ii) Existing use of property, including any restrictions or limitations on the use of property resulting from state or federal law or rules or regulations adopted pursuant to the authority of state or federal law;

(iii) Existing covenants or restrictions in deed dedicating the property to a particular use;

(iv) Bank sales, other financial institution owned sales, or distressed sales, or any combination thereof, of comparable real property;

(v) Decreased value of the property based on limitations and restrictions resulting from the property being in a conservation easement; and

(vi) Any other existing factors provided by law or by rule and regulation of the commissioner deemed pertinent in arriving at fair market value."

SECTION 2.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.