SUMMARY:

            This resolution calls for a referendum to amend the Constitution to freeze all real property assessments with certain exceptions and to ratify exemptions and assessment freezes previously enacted.

REQUIREMENTS:

• No increases to assessments would be allowed after the 2010 valuation unless an adjustment to fair market value if sold or transferred.
• Additions/improvements after 12/31/10 would be added to the owner’s valuation amount.
• The definition of “fair market value” would be “…not [to] exceed the sales price of that property in a bona fide arm’s length transaction.”
• The valuation may be increased either by 3% or the percent change in the rate of economic inflation, whichever is lesser.
• Constitutional status would be given to any local or general laws passed before January 1, 2011 regarding property assessment freezes.
• Local or general exemptions would be excluded, unless repealed.  If repealed, the valuation would revert to the 2010 valuation without the exemption.
• Constitutional amendments already authorized [e.g., Muscogee County], would be exempt from this requirement, unless they should ever be repealed.  In such a case, the most recent taxable value established under such local Constitutional amendments would apply.
• School districts and counties with Constitutionally imposed millage rate limitations on property taxes would be exempt from these requirements.

NOTES:

• If a local school system grows at a rate higher than 3% or the rate of economic inflation, that system could quickly run short of local revenue.