SUMMARY (as revised by the House Rules Committee):

            This bill is a total re-write of the original bill and would amend Title 48 of O.C.G.A. to provide a moratorium period for raising property assessments with an automatic repeal date.

REQUIREMENTS:

• This bill would apply only to tax years from January 1, 2009 until the Sunday immediately preceding the second Monday in January, 2011.
• Property assessments would not be allowed to increase at all during that period, even though each parcel in the state would be required to be reassessed at least one time during the time period specified.
• The assessed value of property could decrease during the period.
• If property is sold or transferred, the property would continue to be valued for tax purposes at the most recent value established in January of 2009.
• If the property is re-zoned, then the property would be assessed at its fair market value.
• The bill would not apply to counties that have a local constitutional amendment in force regarding property assessment freezes unless it is repealed.

NOTES:

• It is interesting that in the introductory section of the bill the statement is made “that the citizens and property owners of this state are experiencing a crisis in the reduction of value of real estate…and it is in the interest of this state that immediate action be taken to secure the economic stability of all Georgians.”  Nevertheless, in the body of the bill it states that the assessed value of any property could decrease during the period.
• Though this bill has a sunset clause, it could easily be renewed in 2011.  Significant questions have been raised as to the constitutional merits of this legislation.