Columbus, Georgia

Ad Valorem Tax Study Committee

December 9, 2003

Committee Members Present:

Chairman Ron Dodson

Representative Royal

Representative Ashe

Representative Day

Representative Scott

Representative Scholar

ACCG, GATO, GAAC

This meeting provided an opportunity to discuss the proposed tax digest

legislation spearheaded by ACCG, GATO and GAAC (Clint Mueller, Jim Davis, and

Phil Hogsed, respectfully). According to the panel, only 9 of the 159 counties

in Georgia, submitted their required tax digests by the August 1, 2003 due

dates. Panel members suggested that there are legislative solutions which, if

enacted, would assist the counties increase their efficiency and therefore be

better able to honor their required timeline. They proposed eight potential

solutions (will be in their proposed legislative bills/ package).

1. Move the Personal Property Return due date from April 1 to March 1 to

assist in eliminating the need for filing of ?real property return.? Real

Property Returns are normally used to initiate an appeal. Instead, companies

would file an estimate/ expected return in order to ?get their books in line,?

later they can submit an amended return.

2. Re-assess the rollback provision in the Taxpayers Bill of Rights.

Panelists indicated that the provision is not understandable to the general

public, as it relates to raising property taxes. Conversation ensued between

committee members (Rep Day and Austin Scott) and panelists regarding the need

to (if at all) and how that language might be modified. It was determined that

the problem lies in both the semantics and the legislation. No resolution was

reached.

3. Currently, the counties must publish a ?five-year history? of taxes in

the paper two weeks prior to the setting of the millage rate at a public

meeting. This legislation proposes that the timeline be compressed to speed up

the process. Panelists seek to change the law so that the advertisement should

be placed one week prior to the meeting. Committee members (Day and Ashe, and

others) disagree that this action would be citizen friendly.

4. With respect to the Homestead Exemption, panelists propose that

qualifiers should be able to pre-file for the exemption or apply year round

(including at the close of the previous year). This would allow the counties

to process the paperwork earlier. Committee members agree that this provision

is citizen friendly (Royal, Dodson, Ashe)

5. Reduce the 45 day appeal period to 30 days for everyone. Panelists

suggested that most individuals who plan to appeal either appeal immediately,

or wait until days before the ?due date?. Royal and others thought this was

tax payer unfriendly.

6. Relating to appeals, panelists proposed that individuals, who opt to

appeal their assessment, must specify if they wish to continue the appeal to

the Board of Equalization, if the verdict is ?no change? initially (as opposed

to the current policy of automatic continuation). This would reduce paperwork

and the time of the board should the individual not have a desire to pursue the

reassessment.

7. Relating to the Board of Equalization hearings, should individuals fail

to appear for their hearings, it will be assumed that that individual is no

longer debating the original assessment.

8. Panelists suggested the passage of other legislative package/ bill to

eliminate Real Property Tax Returns.

Hunter Hopkins, Georgia Chamber of Commerce

Hunter indicated that the Chamber is neutral on the issue of the tax digest.

The Chamber is however, not in favor of freezing personal property taxes,

because the freeze will shift the tax burden onto businesses.

Gwen Copeland, Georgia Municipal Association

Gwen indicated that the property tax is among the most unpopular taxes imposed

upon citizens. She too, suggested that a personal property tax freeze unduly

shifts the tax burden to businesses. In addition, she argued that local

governments have different needs, and that ?one size does not fit all.? As

such, the state should not institute statewide mandates but should allow local

governments to respond to their citizens in order to sustain needed services.

In terms of the digest, GMA worked with the panelists on the legislation and

for the most part, agrees with their recommendations.

Hayden Stanley, Georgia Apartment Association

Hayden indicated that ad valorem taxes make up the largest operating expense

for many businesses including apartment building owners. The industry,

therefore, supports any effort to keep local property taxes ?practically

applied? and can support the intent of the freeze in its efforts to make the

taxes transparent. Hayden did indicate that one must understand that when you

make policy by singling out only one constituency (i.e. single family, owner

occupied) the tax burden shifts to others (multi- family, commercial, etc).

Hayden encouraged limits that apply across the board.

Representative Scott

Scott suggested that local governments have two options for raising revenue,

sales tax and property tax. Scott suggested that the Apartment Association,

and others must stand up and be vocal (and understand) regarding the lost

revenue due to the state?s inability to collect sales tax from internet sales.

Subcommittee Appointed:

A subcommittee was appointed with the same members in order to more fully delve

into the language and intent of the proposed legislation. The committee will

work with ACCG et al. In addition, there will be a formal hearing on SR 311

during prior to the session or early in the session.



Sheila G. Humberstone

Manager-State Affairs

Troutman Sanders Public Affairs Group LLC

404-879-6502

404-962-6684 (fax)

Sheila.Humberstone@troutmansanders.com