HB 233 is dead man walking legislation. For those who do not know, the 2009 Georgia General Assembly passed an ad valorem property tax freeze and sent the Bill (HB 233) [1] to the Governor. HB 233 creates a new Georgia Tax Statute, OCGA Sec. 48-5B-1. It proposes to freeze all statewide property assessments for two (2) years on all Georgia real property.
HB 233 is a bad legislation for following reasons. First, it shifts the burden of taxation from commercial properties to residential properties and from existing owners to new owners. Second, HB 233 is facially unconstitutional. It violates the uniformity provision of the 1983 Georgia Constitution.
1. HB 233 Shifts the Burden of Property Taxation to New Owners
While the General Assembly seeks tax relief, it has only passed legislation that shifts burdens of taxation from existing Georgia owners to those new owners and new business that choose to move to Georgia [or choose not move to Georgia after they read HB 233].
A common misconception regarding property tax relief is that assessment
caps lower or limit the growth in property tax. They do neither. They
simply shift the burden and institutionalize unfair and unequal treatment
among owners of comparable properties. There is significant scientific and
anecdotal evidence of the failure of these policies. Some of the problems [associated with assessment caps are]: Assessment caps tend to be anti-competitive by taxing new entrants more heavily than current owners. The benefit accrues to those owners of rapidly appreciating property and shifts the burden to those owning slower appreciating property (and owners of property decreasing in value). [Assessment caps] provide the largest tax break to upper-income homeowners and provide little or no tax relief to low-income homeowners. Assessment caps tend to be regressive. [Assessment caps] eliminate "uniformity" from the property tax system. That is, huge disparities in effective taxes are created among comparable property owners. It is inevitably and irrefutably unfair and inequitable. Millage rates rise and new fees are born to make up for the revenue lost through artificial manipulation of individually assessed property values and the total tax digest. Unequal taxation distorts the decision making process of buyers and sellers and thereby reduces economic growth as transactions don't occur or occur at reduced prices. [2]
2. HB 233 is Facially Unconstitutional
In facial violation of the uniformity clause of the 1983 Georgia Constitution, the same property, of the same class for the same purpose receives two (2) completely different assessments under new OCGA Sec. 48-5B-1.
We know that HB 233 is unconstitutional for a reason not apparent from the language of the passed House Bill. The General Assembly spent the entire 2009 session fighting over the passage of a properly drafted assessment freeze bill, HR1 (later SB1). HR1 provided for a proper Amendment to the Georgia Constitution.
HR1 provided for a statewide assessment freeze, which then allowed values to rise (approximately 3% per year, or thereabouts); the First Reader Summary read:
A RESOLUTION proposing an amendment to the Constitution so as to freeze the valuation of residential and nonresidential real property except for certain adjustments; to provide for ratification of certain exemptions and assessment freezes which were previously enacted; to provide for applicability; to provide for the submission of this amendment for ratification or rejection; and for other purposes. HR1. [3]
Political in-fighting or the failure of its backers to obtain the necessary two-thirds vote in both the House and Senate doomed HR1. Instead of going home with no tax freeze, certain members of the General Assembly deemed it better to pass the hopelessly flawed HB 233 than return home with no progress on containing local property tax increases.
As far back at the Georgia Constitution of 1877, the following phrase has been part of every Georgia Constitution: "[A]ll taxation shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax." Art. VII, Sec. I, Para III, Georgia Const. (1983). [Uniformity; classification of property; assessment of agricultural land; utilities.] Because HB 233 sets up non-uniform taxation for identical property it runs afoul of this provision of the Georgia Constitution. See also, Benson-Corwin, Inc. v. Cobb County School District, et. al., 239 Ga. 199, 236 S.E.2d 361 (1977). [4]
A modification of the "uniformity," clause in the Constitution requires a constitutional amendment and amending the Constitution is no easy matter. Article X of the 1983 Georgia Constitution provides the only method(s) by which it may be amended. Skipping the bizarre statewide Constitutional Convention method, the Constitution may be amended by a Proposal to amend the Constitution passed by two-thirds of both the House and Senate. The passed conformed proposal (after formal review and lengthy publishing on a statewide basis) is presented to the people for a vote in a regular election. If a majority approves the Amendment is shall become part of the Constitution on the date specified in the Proposal. [5]
HB 233 has none of the trappings of a Constitutional Amendment. It is a mere naked House Bill holding no more than 50 percent passage in both the House and Senate. Since it seeks by its terms to modify a significant clause of the 1983 Georgia Constitution and yet it was not created in conformity with Article X of the current Constitution, it is, well - a nullity. Or, at least, a Court should so find it to be a nullity.
As painful as the new 2008-2009 Depression is, it would be better - over the long haul - to allow market forces to run their course on the correction of real property taxes than to inject an artificial ad valorem tax freeze into the system. Like an inverted version of "rent control," nothing good will come out in the long haul from "tax control."
Hugh Wood
Atlanta, GA
[1]
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, related to revenue and taxation, so as to provide for a moratorium period during which valuation increases of property shall be limited; to provide for legislative findings; to provide for the authority for this Act; to provide for procedures, conditions, limitations, and exclusions; to provide for applicability; to provide for related matters; to provide for an effective date; to provide for automatic repeal; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 48 of the Official Code of Georgia Annotated, related to revenue and taxation, is amended by adding a new chapter to read as follows:
"CHAPTER 5B
48-5B-1.
(a) The General Assembly finds that the citizens and property owners of this state are experiencing a crisis in the reduction of value of tangible property of unprecedented magnitude and that it is in the best interests of this state that immediate action be taken to secure the economic stability of all Georgians. This crisis is having a devastating effect on the economy of the State of Georgia, and this Code section is enacted in order to provide for more effective regulation and management of the finance and fiscal administration of the state and pursuant to and in furtherance of the provisions of Article III, Section IX, Paragraph II(c) of the Constitution and other provisions of the Constitution.
(b) In recognition of the emergency situation and fiscal conditions set forth in subsection (a) of this Code section and pursuant to the authority specified in subsection (a) of this Code section, for taxable years beginning on or after January 1, 2009, and continuing only until the Sunday immediately preceding the second Monday in January, 2011, a moratorium is declared on all increases in the assessed value of all classes of all subjects of property which are subject to ad valorem taxation property except as specifically permitted under this Code section. The rate of increase of the assessed value of property for county, county school district, municipal, or independent school district ad valorem tax purposes shall not exceed from one taxable year to the succeeding taxable year 0 percent except as otherwise permitted in this Code section.
(c) The limitations of this Code section shall not apply to the correction by local tax officials, pursuant to Chapter 5 of this title, of any manifest, factual error or omission in the valuation of property. The limitations of this Code section shall take effect on January 1, 2010, for any county which performed or had performed on its behalf a comprehensive county-wide revaluation of all properties in the county in 2008 or any county which in 2009 was under contract prior to February 28, 2009, to have performed on its behalf a comprehensive county-wide revaluation of all properties in the county.
(d) Nothing in this Code section shall be construed to prohibit the assessed value of property from decreasing.
(e) If property or interests therein are sold or transferred, the assessed value of such property for ad valorem tax purposes shall not exceed the most recent value established under subsection (b) of this Code section.
(f) Additions or improvements to property shall be valued for ad valorem tax purposes at their fair market value and shall be added to the owner's valuation amount under this subsection.
(g) If property is rezoned, subdivided, or combined with other property at the request of the owner of such property and the use of such property is changed to conform with the use authorized or caused by such rezoning, subdivision, or combination with other property, such property shall be valued for ad valorem tax purposes at its fair market value.
(h) Nothing in this Code section shall be construed to alter or affect in any manner the authority granted to the General Assembly under Article VII, Section II, Paragraph II of the Constitution to enact homestead exemptions.
(i) The provisions of this chapter shall not apply to real property in any county for which a local constitutional amendment has been continued in force and effect as part of the Constitution which imposes millage rate limitations regarding ad valorem property taxes with respect to real property in such county or county school district unless such local constitutional amendment is repealed.
(j) During the period of time in which this Code section is in effect, the commissioner shall continue to examine and review county tax digests as required under this chapter; provided, however, that, in the event a deficiency in the tax digest of a county is attributable directly to the limitations required by this Code section, no penalties shall be levied against such county regarding such deficiency.
(k) This chapter shall be repealed in its entirety on the second Monday in January, 2011."
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.
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[2]
Georgia Association of Property Tax Professional, Inc., Controlling Property Taxes Through Proven Legislation: Assessment Limits versus Revenue Limits. Revised Jan. 2009.
& & &
[3]
HR1
The House Committee on Rules offers the following substitute to HR 1:
A RESOLUTION
Proposing an amendment to the Constitution so as to limit valuation increases of real property; to provide for procedures, conditions, and limitations; to provide for ratification of prior and enactment of new exemptions and assessment freezes; to provide for applicability; to provide for the submission of this amendment for ratification or rejection; and for other purposes.
BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article VII, Section I of the Constitution is amended by revising Paragraph III and by adding a new Paragraph to read as follows:
"Paragraph III. Uniformity Applicability of uniformity; exceptions; classification of property; assessment of agricultural land; conservation use; timber; utilities. (a) All taxes shall be levied and collected under general laws and for public purposes only. Except as otherwise provided in subparagraphs (b), (c), (d), (e), and (f) of this Paragraph and Paragraph IV of this section, all taxation shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax.
(b)(1) Except as otherwise provided in this subparagraph (b) Paragraph, classes of subjects for taxation of property shall consist of real property, other tangible property, and one or more classes of intangible personal property including money; provided, however, that any taxation of intangible personal property may be repealed by general law without approval in a referendum effective for all taxable years beginning on or after January 1, 1996.
(2) Subject to the conditions and limitations specified by law, each of the following types of property may be classified as a separate class of property for ad valorem property tax purposes, and different rates, methods, and assessment dates may be provided for such properties:
(A) Trailers.;
(B) Mobile homes other than those mobile homes which qualify the owner of the home for a homestead exemption from ad valorem taxation.; and
(C) Heavy-duty equipment motor vehicles owned by nonresidents and operated in this state.
(3) Motor vehicles may be classified as a separate class of property for ad valorem property tax purposes, and such class may be divided into separate subclasses for ad valorem purposes. The General Assembly may provide by general law for the ad valorem taxation of motor vehicles, including, but not limited to, providing for different rates, methods, assessment dates, and taxpayer liability for such class and for each of its subclasses, and need not provide for uniformity of taxation with other classes of property or between or within its subclasses. The General Assembly may also determine what portion of any ad valorem tax on motor vehicles shall be retained by the state. As used in this subparagraph, the term 'motor vehicles' means all vehicles which are self-propelled.
(c) Tangible real property, but no more than 2,000 acres of any single property owner, which is devoted to bona fide agricultural purposes shall be assessed for ad valorem taxation purposes at 75 percent of the value which other tangible real property is assessed. No property shall be entitled to receive the preferential assessment provided for in this subparagraph if the property which would otherwise receive such assessment would result in any person who has a beneficial interest in such property, including any interest in the nature of stock ownership, receiving the benefit of such preferential assessment as to more than 2,000 acres. No property shall be entitled to receive the preferential assessment provided for in this subparagraph unless the conditions set out below are met:
(1) The property must shall be owned by:
(A)(i) One or more natural or naturalized citizens;
(ii) An estate of which the devisee or heirs are one or more natural or naturalized citizens; or
(iii) A trust of which the beneficiaries are one or more natural or naturalized citizens; or
(B) A family-owned farm corporation, the controlling interest of which is owned by individuals related to each other within the fourth degree of civil reckoning, or which is owned by an estate of which the devisee or heirs are one or more natural or naturalized citizens, or which is owned by a trust of which the beneficiaries are one or more natural or naturalized citizens, and such corporation derived 80 percent or more of its gross income from bona fide agricultural pursuits within this state within the year immediately preceding the year in which eligibility is sought.;
(2) The General Assembly shall provide by law:
(A) For a definition of the term 'bona fide agricultural purposes,' but such term shall include timber production; and
(B) For additional minimum conditions of eligibility which such properties must meet in order to qualify for the preferential assessment provided for herein, including, but not limited to, the requirement that the owner be required to enter into a covenant with the appropriate taxing authorities to maintain the use of the properties in bona fide agricultural purposes for a period of not less than ten years and for appropriate penalties for the breach of any such covenant.
(3) In addition to the specific conditions set forth in this subparagraph (c), the General Assembly may place further restrictions upon, but may not relax, the conditions of eligibility for the preferential assessment provided for herein.; and
(4) Property under this subparagraph (c) shall be subject to the limitations under Paragraph IV of this section only if provided by general law and only to the extent provided for in such general law.
(d)(1) The General Assembly shall be authorized by general law to establish as a separate class of property for ad valorem tax purposes any tangible real property which is listed in the National Register of Historic Places or in a state historic register authorized by general law. For such purposes, the General Assembly is shall be authorized by general law to establish a program by which certain properties within such class may be assessed for taxes at different rates or valuations in order to encourage the preservation of such historic properties and to assist in the revitalization of historic areas. Property under this subparagraph (d) shall be subject to the limitations under Paragraph IV of this section only if provided by general law and only to the extent provided for in such general law.
(2) The General Assembly shall be authorized by general law to establish as a separate class of property for ad valorem tax purposes any tangible real property on which there have been releases of hazardous waste, constituents, or substances into the environment. For such purposes, the General Assembly is shall be authorized by general law to establish a program by which certain properties within such class may be assessed for taxes at different rates or valuations in order to encourage the cleanup, reuse, and redevelopment of such properties and to assist in the revitalization thereof by encouraging remedial action. Property under this subparagraph (d) shall be subject to the limitations under Paragraph IV of this section only if provided by general law and only to the extent provided for in such general law.
(e) The General Assembly shall provide by general law:
(1) For the definition and methods of assessment and taxation, such methods to include a formula based on current use, annual productivity, and real property sales data, of: 'bona fide conservation use property,' to include bona fide agricultural and timber land not to exceed 2,000 acres of a single owner; and 'bona fide residential transitional property,' to include private single-family residential owner occupied property located in transitional developing areas not to exceed five acres of any single owner. Such methods of assessment and taxation shall be subject to the following conditions:
(A) A property owner desiring the benefit of such methods of assessment and taxation shall be required to enter into a covenant to continue the property in bona fide conservation use or bona fide residential transitional use; and
(B) A breach of such covenant within ten years shall result in a recapture of the tax savings resulting from such methods of assessment and taxation and may result in other appropriate penalties;
(2) That standing timber shall be assessed only once, and such assessment shall be made following its harvest or sale and on the basis of its fair market value at the time of harvest or sale. Said assessment shall be two and one-half times the assessed percentage of value fixed by law for other real property taxed under the uniformity provisions of subparagraph (a) of this Paragraph but in no event greater than its fair market value; and for a method of temporary supplementation of the property tax digest of any county if the implementation of this method of taxing timber reduces the tax digest by more than 20 percent, such supplemental assessed value to be assigned to the properties otherwise benefiting from such method of taxing timber; and
(3) Property under this subparagraph (e) shall be subject to the limitations under Paragraph IV of this section only if provided by general law and only to the extent provided for in such general law.
(f)(1) The General Assembly shall provide by general law for the definition and methods of assessment and taxation, such methods to include a formula based on current use, annual productivity, and real property sales data, of 'forest land conservation use property' to include only forest land each tract of which exceeds 200 acres of a qualified owner. Such methods of assessment and taxation shall be subject to the following conditions:
(A) A qualified owner shall consist of any individual or individuals or any entity registered to do business in this state;
(B) A qualified owner desiring the benefit of such methods of assessment and taxation shall be required to enter into a covenant to continue the property in forest land use;
(C) All contiguous forest land conservation use property of an owner within a county for which forest land conservation use assessment is sought under this subparagraph shall be in a single covenant;
(D) A breach of such covenant within 15 years shall result in a recapture of the tax savings resulting from such methods of assessment and taxation and may result in other appropriate penalties; and
(E) The General Assembly may provide by general law for a limited exception to the 200 acre requirement in the case of a transfer of ownership of all or a part of the forest land conservation use property during a covenant period to another owner qualified to enter into an original forest land conservation use covenant if the original covenant is continued by both such acquiring owner and the transferor for the remainder of the term, in which event no breach of the covenant shall be deemed to have occurred even if the total size of a tract from which the transfer was made is reduced below 200 acres.
(2) No portion of an otherwise eligible tract of forest land conservation use property shall be entitled to receive simultaneously special assessment and taxation under this subparagraph and either subparagraph (c) or (e) of this Paragraph.
(3)(A) The General Assembly shall appropriate an amount for assistance grants to counties, municipalities, and county and independent school districts to offset revenue loss attributable to the implementation of this subparagraph. Such grants shall be made in such manner and shall be subject to such procedures as may be specified by general law.
(B) If the forest land conservation use property is located in a county, municipality, or county or independent school district where forest land conservation use value causes an ad valorem tax revenue reduction of 3 percent or less due to the implementation of this subparagraph, in each taxable year in which such reduction occurs, the assistance grants to the county, each municipality located therein, and the county or independent school districts located therein shall be in an amount equal to 50 percent of the amount of such reduction.
(C) If the forest land conservation use property is located in a county, municipality, or county or independent school district where forest land conservation use value causes an ad valorem tax revenue reduction of more than 3 percent due to the implementation of this subparagraph, in each taxable year in which such reduction occurs, the assistance grants to the county, each municipality located therein, and the county or independent school districts located therein shall be as follows:
(i) For the first 3 percent of such reduction amount, in an amount equal to 50 percent of the amount of such reduction; and
(ii) For the remainder of such reduction amount, in an amount equal to 100 percent of the amount of such remaining reduction amount.
(4) Such revenue reduction shall be calculated by utilizing forest land fair market value. For purposes of this subparagraph, forest land fair market value means the 2008 fair market value of the forest land. Such 2008 valuation may increase from one taxable year to the next by a rate equal to the percentage change in the price index for gross output of state and local government from the prior year to the current year as defined by the National Income and Product Accounts and determined by the United States Bureau of Economic Analysis and indicated by the Price Index for Government Consumption Expenditures and General Government Gross Output (Table 3.10.4). Such revenue reduction shall be determined by subtracting the aggregate forest land conservation use value of qualified properties from the aggregate forest land fair market value of qualified properties for the applicable tax year and the resulting amount shall be multiplied by the millage rate of the county, municipality, or county or independent school district.
(5) For purposes of this subparagraph, the forest land conservation use value shall not include the value of the standing timber located on forest land conservation use property.
(6) Property under this subparagraph (f) shall be subject to the limitations under Paragraph IV of this section only if provided by general law and only to the extent provided for in such general law.
(g) The General Assembly may provide for a different method and time of returns, assessments, payment, and collection of ad valorem taxes of public utilities, but not on a greater assessed percentage of value or at a higher rate of taxation than other properties, except that property provided for in subparagraph (c), (d), (e), or (f) of this Paragraph. Property under this subparagraph (g) shall be subject to the limitations under Paragraph IV of this section only if provided by general law and only to the extent provided for in such general law.
Paragraph IV. Limitations on assessed value increases for real property. (a)(1) Except as otherwise provided in this Paragraph, the rate of increase of the assessed value of real property for state, county, municipal, or educational ad valorem tax purposes shall not exceed an aggregate of 9 percent for each three-year period of successive ownership and, except as provided in this subparagraph, shall not exceed from one taxable year to the succeeding taxable year the lesser of 3 percent or the percent change in the rate of economic inflation on individual taxpayers as determined by the state revenue commissioner. For such purpose, the state revenue commissioner may use the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics of the United States Department of Labor and any other reliable economic indicator determined by the state revenue commissioner or such other designee as specified by general law to be appropriate. Within such three-year period, such 3 percent limitation shall operate in a cumulative manner so if an increase in one year is less than 3 percent, the 3 percent cap for the next succeeding year shall be increased by an amount equal to the difference in the actual percentage increase in the preceding year and 3 percent. Nothing in this Paragraph shall be construed to prohibit the assessed value of property from decreasing.
(2) If real property or interests therein are sold or transferred, such real property shall be valued for ad valorem tax purposes in an amount not to exceed fair market value. Substantial additions or improvements to such real property shall be valued for ad valorem tax purposes at their fair market value and shall be added to the owner's valuation amount under this subparagraph.
(3) In addition to any general law authorizing error or omission correction by local tax officials, the state revenue commissioner shall be authorized to correct any manifest, factual error or omission in the valuation of real property.
(b) The General Assembly shall be authorized by general law to further define and implement the provisions of this Paragraph, including, but not limited to:
(1) The establishment of classes or subclasses of real property and methods of assessment and taxation, including percentage limitations applicable thereto;
(2) The definition of a sale or transfer of real property or interests therein under subparagraph (a)(2) of this Paragraph IV;
(3) Other circumstances that shall require a revaluation of the real property, including, but not limited to, rezoning;
(4) The timing of the reassessments as a result of sale, transfer, additions, or improvements and the establishment of phase-in periods of assessment increases due to sales or transfers of property at such rate or rates and in such manner as determined by general law; and
(5) The definition and methods of determining fair market value as applied to nonresidential real property under subparagraph (a)(2) of this Paragraph, such methods may include, but shall not be limited to, a formula based on current use, annual revenue, and real property sales data.
(c) The General Assembly shall be authorized to provide by local or general law for base year assessed value homestead exemptions that freeze the assessment of property with respect to any or all ad valorem taxes. Any local or general law providing for base year assessed value homestead exemptions that freeze the assessment of property with respect to any or all ad valorem taxes enacted prior to January 1, 2011, shall be ratified expressly; provided, however, that such ratification shall not be interpreted to imply that such laws were invalid at the time they became law. The provisions of this Paragraph shall not apply to any homestead's ad valorem taxes which are the subject of any such general or local law exemption unless such general law or local law is repealed. In the event of such repeal, the initial valuation amount of the homestead property for purposes of this Paragraph shall be the taxable value of such property established as the initial base year assessed value of such property; provided, however, that in the case of an adjusted base year assessed value homestead exemption, the initial valuation amount of the homestead property for purposes of this Paragraph shall be the taxable value of the property established as the most recent adjusted base year assessed value applicable to such property.
(d) This Paragraph shall not apply to homestead real property in any county or consolidated government for which a local constitutional amendment has been continued in force and effect as part of this Constitution which freezes ad valorem property taxes with respect to such homestead real property unless such local constitutional amendment is repealed. In the event of such repeal, the initial valuation amount of each parcel of homestead real property shall be the most recent taxable value of such parcel as established under such local constitutional amendment.
(e) This Paragraph shall not apply to real property in any county for which a local constitutional amendment has been continued in force and effect as part of this Constitution which imposes millage rate limitations regarding ad valorem property taxes with respect to real property in such county or county school district unless such local constitutional amendment is repealed.
(f) The General Assembly shall be authorized to provide for procedures to discontinue the limitations under this Paragraph conditioned upon approval by a majority of the qualified electors residing within the limits of a county voting in a referendum thereon which shall discontinue such limitations for ad valorem taxes for such county and each municipality and each county or independent school system located in such county."
SECTION 2.
The above proposed amendment to the Constitution shall be published and submitted as provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the above proposed amendment shall have written or printed thereon the following:
"( ) YES
( ) NO
Shall property taxes in Georgia be reformed by limiting increases of the value of real property through an amendment to the Constitution of Georgia?"
All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes." All persons desiring to vote against ratifying the proposed amendment shall vote "No." If such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall become a part of the Constitution of this state.
[4]
GEORGIA CONSTITUTION
Article VII. TAXATION AND FINANCE
Section I. POWER OF TAXATION
Current through 2004
Paragraph III. Uniformity; classification of property; assessment of agricultural land; utilities.
(a) All taxes shall be levied and collected under general laws and for public purposes only. Except as otherwise provided in subparagraphs (b), (c), (d), and (e), all taxation shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax.
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236 S.E.2d 361 (Ga. 1977)
239 Ga. 199
BENSON-CORWIN, INC.
v.
COBB COUNTY SCHOOL DISTRICT et al.
No. 32247.
Supreme Court of Georgia.
June 8, 1977
Page 362
[239 Ga. 201] Downey, Cleveland & Moore, Lynn A. Downey, Joseph C. Parker, Marietta, for appellant.
Richard H. Still, Jr., Awtrey, Parker, Risse, Mangerie & Brantley, Dana L. Jackel, Bentley & Schindelar, Fred D. Bentley, Sr., Marietta, for appellees.
[239 Ga. 199] INGRAM, Justice.
Appellant's property was annexed into the City of Marietta from the unincorporated area of Cobb County. [239 Ga. 200] Thereafter, the assessed value of appellant's property was increased by the county and this caused an increase in appellant's tax liability for the retirement of Cobb County School bonds. Appellant brought suit in Cobb Superior Court for a temporary and permanent injunction to prevent the appellees from collecting a school bond tax on its property at a valuation higher than the assessed valuation of appellant's property at the time it was annexed by the City of Marietta. This appeal follows the trial court's denial of appellant's prayers for injunctive relief. We affirm as we find no error.
At trial appellant stipulated: that its property is within the Cobb County school district; that it is subject to taxation for the purpose of retiring Cobb County school bonds issued prior to the annexation of its property into the City of Marietta; and, that the assessed value placed on its property is completely fair.
Thus, the only question for decision is whether the trial court erred in not freezing the assessed value of appellant's property, for purposes of the county school bond tax, at its assessed value when it was annexed into the city. We agree with the trial court that to grant appellant the relief requested would contravene the constitutional rule of uniformity in taxation which exists in this State.
Article VII, Sec. I, Par. III of the Constitution of Georgia of 1976 (Code Ann. § 2-4603) provides in part that, "All taxation shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax. Classes of subjects for taxation of property shall consist of tangible property and one or more classes of intangible personal property including money."
Under this constitutional provision all real and personal tangible property, except "motor vehicles, including trailers," and "mobile homes, other than those mobile homes which qualify the owner thereof for the homestead property tax exemption under Georgia law," constitutes a single class of property and must be assessed and taxed alike. See Griggs v. Greene, 230 Ga. 257, 258(2), 197 S.E.2d 116 (1973); Hutchins et al. v. Howard et al., 211 Ga. 830(2), 89 S.E.2d 183 (1955).
Code Ann. § 92-5701 (Ga.L.1909, p. 72) provides that, [239 Ga. 201] "(a)ll property shall be returned for taxation at its fair market value."
To freeze the assessed value of appellant's property at an amount obviously below its fair market value would also obfuscate the application of Art. VIII, Sec. VII, Par. I of our Constitution (Code Ann. § 2-5501) which provides in part that, "(t)he fiscal authority of each county shall annually levy a school tax for the support and maintenance of education, not greater than twenty mills per dollar as certified to it by the county board of education, upon the assessed value of all taxable property within the county located outside any independent school system or area school district therein." The "assessed value" referred to in the Constitution is the correctly assessed fair market value. See Board of Commissioners of Newton County v. Allgood, 234 Ga. 9, 17(7), 214 S.E.2d 522 (1976).
Judgment affirmed.
All the Justices concur.
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[5]
ARTICLE X.
AMENDMENTS TO THE CONSTITUTION
SECTION I.
CONSTITUTION, HOW AMENDED
Paragraph I. Proposals to amend the Constitution; new Constitution. Amendments to this Constitution or a new Constitution may be proposed by the General Assembly or by a constitutional convention, as provided in this article. Only amendments which are of general and uniform applicability throughout the state shall be proposed, passed, or submitted to the people.
Paragraph II. Proposals by the General Assembly; submission to the people. A proposal by the General Assembly to amend this Constitution or to provide for a new Constitution shall originate as a resolution in either the Senate or the House of Representatives and, if approved by two-thirds of the members to which each house is entitled in a roll-call vote entered on their respective journals, shall be submitted to the electors of the entire state at the next general election which is held in the even-numbered years. A summary of such proposal shall be prepared by the Attorney General, the Legislative Counsel, and the Secretary of State and shall be published in the official organ of each county and, if deemed advisable by the "Constitutional Amendments Publication Board," in not more than 20 other newspapers in the state designated by such board which meet the qualifications for being selected as the official organ of a county. Said board shall be composed of the Governor, the Lieutenant Governor, and the Speaker of the House of Representatives. Such summary shall be published once each week for three consecutive weeks immediately preceding the day of the general election at which such proposal is to be submitted. The language to be used in submitting a proposed amendment or a new Constitution shall be in such words as the General Assembly may provide in the resolution or, in the absence thereof, in such language as the Governor may prescribe. A copy of the entire proposed amendment or of a new Constitution shall be filed in the office of the judge of the probate court of each county and shall be available for public inspection; and the summary of the proposal shall so indicate. The General Assembly is hereby authorized to provide by law for additional matters relative to the publication and distribution of proposed amendments and summaries not in conflict with the provisions of this Paragraph.
If such proposal is ratified by a majority of the electors qualified to vote for members of the General Assembly voting thereon in such general election, such proposal shall become a part of this Constitution or shall become a new Constitution, as the case may be. Any proposal so approved shall take effect as provided in Paragraph VI of this article. When more than one amendment is submitted at the same time, they shall be so submitted as to enable the electors to vote on each amendment separately, provided that one or more new articles or related changes in one or more articles may be submitted as a single amendment.
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Hugh Wood, Esq.
Wood & Meredith, LLP
3756 LaVista Road
Suite 250
Atlanta (Tucker), GA 30084
www.woodandmeredith.com
hwood@woodandmeredith.com
www.hughwood.blogspot.com
Phone: 404-633-4100Fax: 404-633-0068
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