New Laws In Effect

The Georgia Association of Realtors recently issued their legislative report that highlights the Georgia General Assembly legislation signed into law by the Governor. The new legislation in this report pertains mainly to those that have property tax implications or deal with other real estate issues.

Georgia Association of Realtors
LEGISLATIVE BULLETIN
2009 Legislative Session Recap
Every effort has been made to be accurate and complete in our descriptions of the contents of each act, but we caution you to rely only on the acts themselves and not solely on the summaries in this or any report. Seek appropriate counsel when needed.

LEGISLATION PASSED SIGNED INTO LAW

SB 55 Change in Factors Considered in Determining Fair Market Value of Real Property (by Sen. Chip Pearson of Dawsonville) This bill changes the factors considered in determining the fair market value of real property by adding foreclosure or bank-owned sales of real property to the list of considerations tax assessors must consider in the valuation process. (Signed by Governor on 4/14/09)

SB 82 Selling Copper to Secondary Metal Recyclers (by Sen. Renee Unterman of Loganville) The House substituted the language from HB 177 into SB 82 and made several changes. SB 82 places tighter restrictions on metal recyclers by increasing the minimum transaction standards for the purchase of recycled metals. SB 82 will allow for stricter sentencing of metal thieves by using the aggregate sum of the damage done to property in determining the severity of the crime. Additionally, to address the problem of quick cash purchases of stolen metals, SB 82 provides a 24-hour waiting period for cash purchases of copper, aluminum property and catalytic converters. However, a check can be made payable to the individual whose personal information is recorded at the time of sale for immediate payment. (Signed by Governor on 5/5/09)

SB 141 Filing of Deed or Documents Relating to Foreclosures (by Sen. Bill Hamrick of Carrolton) This bill says that within 90 days of a foreclosure sale, all deeds under power shall be recorded by the holder of a deed to secure debt or a mortgage with the clerk of the superior court of the county or counties in which the foreclosed property is located. (Signed by Governor on 5/5/09)

SB 155 Stream Buffers and Soil Erosion (by Sen. Chip Pearson of Dawsonville) This bill would change the provisions relating to the 25-foot buffers along state waters by making an exception for ephemeral streams. Ephemeral streams are defined as having water flow only during and shortly after precipitation, where the channel is located above ground-water table year-round, the ground water is not a source of water and for which runoff from rainfall is the primary source of water flow. (Signed by Governor on 5/5/09)

SB 240 Comprehensive Revision of County Boards of Tax Assessors and Appeal Process (by Sen. Chip Rogers of Woodstock) This bill says for any dispute involving the value of real property, an appeal may be submitted to binding arbitration, at the option of the taxpayer. Prior to appointment of the arbitrator and within 30 days of filing the notice of appeal, the taxpayer shall provide a copy of the value as certified by a professional real estate appraiser. If, within 30 days of receiving the taxpayer's certified appraisal, the board of assessors accepts the taxpayer's appraisal, that value shall become final. If the county board of tax assessors rejects the taxpayer's appraisal, the county board of tax assessors shall certify within 30 days the appeal to the clerk of the superior court. Within 30 days of the date of the hearing, the arbitrator shall render a decision regarding the value of the property. In order to determine the value, the arbitrator shall consider a single value for the property submitted by the board of assessors and a single value submitted by the taxpayer. If the taxpayer's value is determined by the arbitrator to be the value, the county shall be responsible for the fees and costs of such arbitration. If the board of tax assessors' value is determined by the arbitrator to be the value, the taxpayer shall be responsible for the fees and costs of such arbitration. The board of tax assessors shall have the burden of proving its opinion of value and the validity of its proposed assessment by a preponderance of evidence. (Signed by Governor on 4/29/09)

HB 63 Restrictions on Use of Tax Allocation Districts (TADs) (by Rep. Earl Ehrhart of Powder Springs) This bill would restrict the use of Tax Allocation Districts by narrowing the definition of redevelopment area. This bill adds a new component to TADs by introducing the PILOT (payment in lieu of taxes) concept. This concept would grant an exemption from ad valorem taxation for capital projects within a TAD, but would require payment in lieu of taxes for educational purposes in the same proportion that property taxes for educational purposes would be owed if the project were subject to ad valorem property taxation. The bill provides detailed steps for the creation and adoption of a TAD. All TADs must be created by resolution by the local governing authority. Each resolution should contain evidence that the redevelopment area would not be redeveloped without a TAD and the improvement of the area is likely to enhance the value of a substantial portion of the other real property in the district. (Signed by Governor on 4/22/09)

HB 127 Uniformity in the Recording of Real Property (by Rep. Ed Lindsey of Buckhead) This bill says that an electronic document filed in accordance with the rules set forth in the bill shall be satisfactory in the recording of real property. Electronic signatures would meet the necessary requirements and if a document needs to be notarized or witnessed an electronic signature of such person would be acceptable if included with documents. Clerks of Superior Court may provide access to documents by electronic means, will be required to continue to accept filing of paper documents and may accept fees electronically. The bill attempts to establish uniform standards and practices for Clerks of Superior Courts by adopting standards created by national standard setting bodies and associations. (Signed by Governor on 5/5/09)

HB 143 Funding for Homestead Tax Relief Grants (by Rep. Larry ONeal of Bonaire) This bill links state revenue collections to the funding of the Homestead Tax Relief Grants provided by the state. Under this bill the grants would be paid for 2009, but in the future, the state would only pay the grants if state revenues grow at least 3% plus the rate of inflation annually. (Signed by Governor on 2/17/09)

HB 233 Moratorium on Increase of Property Tax Assessment (by Rep. Ed Lindsey of Buckhead) This bill would place a two-year moratorium between Jan. 1, 2009, and January 2011 on the increase of property tax assessments. If a property is sold within the two-year period, the assessed value shall not exceed the most recent value before sale. If additions or improvements are made to the property it shall be valued at fair market value and increases shall be added to the owner's valuation. If property is rezoned at the request of the owner, the property will be assessed at fair market value. Provisions of this bill will not apply to cities or counties which previously have property tax assessment caps, unless local ordinance is repealed. If a factual error or omission has occurred, local government can correct assessed value. The provisions of this bill will take effect on January 1, 2010, for any county which performed a comprehensive county-wide revaluation of all properties in the county in 2008 or any county which in 2009 was under contract to do so prior to February 28, 2009. Nothing in this code section shall prohibit assessments from decreasing during the two-year period. (Signed by Governor on 5/5/09)

HB 248 Remediation of Property with Release of Regulated Substances (by Rep. Terry Barnard of Glennville) This bill would create a voluntary remediation program for qualifying properties where regulated substances have been released into the environment. To enroll in the program, an applicant shall submit a corrective action plan prepared by a registered engineer or professional geologist and must pay a nonrefundable application fee of $3,000.00. Upon verification of compliance, property will be removed from the state inventory of contaminated properties. (Signed by Governor on 5/5/09)

HB 261 Statewide Homebuyer Tax Credit (by Rep. Ron Stephens of Savannah) This legislation provides a state income tax credit for the purchase of one single-family residence during the six-month period following the effective date of this legislation. Understanding the delicate nature of passing a tax credit bill in our current budgetary climate, House sponsor Ron Stephens and House Ways and Means Chairman Larry O'Neal met with the Governor and decided to reduce the overall maximum benefit of the tax credit to $1,800 or 1.2 % of the purchase price spread over three years. The final version of the bill contains the GAR amendment to clarify condominiums and residences occupied at the time of sale are eligible for the credit. In addition, eligible single-family residences include 1) new single-family residences; 2) previously-occupied residences that were for sale prior to the effective date of this legislation and are still for sale after the effective date; 3) owner-occupied residences with respect to which the owners acquisition debt is in default on or before March 1, 2009; and 4) residences where foreclosure has taken place and are owned by the mortgagor or the mortgagors agent. (Signed by Governor on 5/11/09)

HB 304 Notice of Appraisers and Assessors Entering Property (by Rep. DuBose Porter of Dublin) This bill says that appraisers and assessors shall not enter property for purposes of their duties unless reasonable notice has been provided to the occupant. Such person representing the chief appraiser, appraisal staff, or county board of tax assessors shall carry identification which is sufficiently prominent. The bill also requires the county tax commissioner to include a statement with the ad valorem tax bill notifying the taxpayer of the right to file an ad valorem property tax return. (Signed by Governor on 5/5/09)

HB 312 S.A.F.E. Mortgage Licensing Act of 2008 (by Rep. Calvin Hill of Canton) This bill seeks to bring Georgia into compliance with federal law that requires mortgage license holders to be licensed in a uniform manner nationwide. If Georgia does not comply with federal regulations by July 31, 2009, HUD will come in and ensure federal regulations are met in Georgia. (Signed by Governor on 4/29/09)

HB 315 Disclosure of All Items of Value Obtained in Real Estate Transactions (by Rep. Terry Barnard of Glennville) This bill is a result of the issues brought forth by the Hinesville Board concerning affinity groups. This bill changes the word commission to fee and adds, or other valuable consideration in referencing what must be disclosed when procuring a loan, or insurance, or for conducting a property inspection related to a real estate transaction. The bill further states that all items of value obtained in a real estate transaction must be disclosed on the settlement statement. (Signed by Governor on 5/1/09)

HB 487 Increase in Superior Court Filing Fees for Real Estate (by Rep. John Meadows of Calhoun) This bill originally included language that would have raised the fees for the processing of all instruments pertaining to real estate filed in the superior courts from $0.50 to $1.50. These fees were intended for the Superior Court Clerks Retirement Fund. GAR opposed this language and negotiated the removal of the increase in real estate filing fees. Language to allow voluntary contribution to the Superior Court Clerks Retirement Fund remains. (Signed by Governor on 5/5/09)

HB 492 Private Residence Club Developments (by Rep. Jay Neal of Lafayette) This bill defines Private Residence Club as a single-family residence where the title is held by a maximum of six individuals as tenants in common and the use of the residence is determined among the titleholders by contract. The bill also defines Private Residence Club Development as a development of at least two private residence clubs. The bill says that neither a private residence club nor private residence club development shall be considered a time share in Georgia. (Signed by Governor on 5/5/09)

HB 528 Regulating Developers that Manage Homeowners Associations (by Rep. Tom McCall of Elberton) This bill says that any developer that manages or is responsible for a homeowners association whose annual assessment fee is $500.00 or more in a development with 20 or more homes shall provide a report itemizing the expenses for such homeowners or condominium owners association to each homeowner not later than 60 days after the end of the year for which the fees were assessed. (Signed by Governor on 5/1/09)

HB 529 Liability of Landowners Who Allow Hunting and Agritourism on Property (by Rep. Tom McCall of Elberton) This bill provides limited liability for landowners who allow visitors to hunt, fish or tour their land (by incorporating language from SB 75). The bill also includes provisions prohibiting local governments from regulating farming or animal husbandry practices. (Signed by Governor on 5/1/09)

Copies of Legislation are easily accessed via the Internet; go to http://www.legis.state.ga.us/ to check the status of any of the legislation outlined in this bulletin.