ACCG WEBINAR Constitutional Amendments and Statewide Referendum Questions on the November 6 General Election Ballot

Georgia Outdoor Stewardship Act Constitutional Amendment 1

Georgia Outdoor Stewardship Act Ballot Language: Georgia Amendment 1, Portion of Revenue from Outdoor Recreation Equipment Sales Tax Dedicated to Land Conservation Fund Amendment “Without increasing the current state sales tax rate, shall the Constitution of Georgia be amended so as to create the Georgia Outdoor Stewardship Trust Fund to conserve lands that protect drinking water sources and the water quality of rivers, lakes, and streams; to protect and conserve forests, fish, wildlife habitats, and state and local parks; and to provide opportunities for our children and families to play and enjoy the outdoors, by dedicating, subject to full public disclosure, up to 80 percent of the existing sales tax collected by sporting goods stores to such purposes without increasing the current state sales tax rate?”

Georgia Outdoor Stewardship Act Creates the: Georgia Outdoor Stewardship Trust Fund Provides dedicated funding for: state parks state wildlife management areas critical conservation land local parks and trails  General Assembly can appropriate up to 80% of the existing state sales and use tax on outdoor sporting goods No tax increase or new fees

Georgia Outdoor Stewardship Act County Impact: Counties would be eligible to apply for grants and loans from this newly created trust fund. A Board of Trustees of the Georgia Outdoor Stewardship Trust Fund is created to oversee the grant/loan applications. The composition of the board could include representatives from local government. GA DNR will issue an annual grant if: land acquired with Outdoor Stewardship Trust Fund money exceeds 20,000+ acres property belongs to the state and under the custody or control of GA DNR such state-owned property exceeds 10% of the taxable real property in county, and such property represents 10% or more of the assessed tax digest of the county

For More Info: www.GeorgiaOutdoorStewardship.org

Authorization of Business Courts with Statewide Jurisdiction Constitutional Amendment #2 Ballot Language: “Shall the Constitution of Georgia be amended so as to create a state-wide business court, authorize superior court business court divisions, and allow for the appointment process for state-wide business court judges in order to lower costs, improve the efficiency of all courts, and promote predictability of judicial outcomes in certain complex business disputes for the benefit of all citizens of this state?" 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.”

Authorization of Business Courts with Statewide Jurisdiction Constitutional Amendment #2 Authorizes creation of statewide business court Judges appointed by Governor for terms of 5 years, subject to approval by a majority vote of both the house and senate judiciary committees. Business Court to have same jurisdiction as superior in equity matters. Intent to increase efficiency in the handling of complex business cases

Authorization of Business Courts with Statewide Jurisdiction Constitutional Amendment #2 County Impact: Uncertain, there was no enabling legislation, it unclear whether the counties or the state will be financially responsible for the salaries and benefits of judges as well as required support positions for the judges. Typically the salaries of the judges and their secretaries are paid by the state, but the counties fund additional positions, office costs, and provide local supplements.

Forestland and Commercial Timberland Tax Assessment Constitutional Amendment 3

Forestland and Timberland Assessment Ballot Language: Georgia Amendment 3, Changes to Tax Assessment of Forestland and Commercial Timberland Properties “Shall the Constitution of Georgia be amended so as to revise provisions related to the sub classification for tax purposes of and the prescribed methodology for establishing the value of forest land conservation use property and related assistance grants, to provide that assistance grants related to forest land conservation use property may be increased by general law for a five-year period and that up to 5 percent of assistance grants may be deducted and retained by the state revenue commissioner to provide for certain state administrative costs, and to provide for the sub classification of qualified timberland property for ad valorem taxation purposes?” Would be implemented by HB 85 (2018)

Forestland and Timberland Assessment 1. Changes Formula for Calculating Forestland Protection Act (“FLPA”) Grants Reduces restrictive covenant period from 15 years to 10 Changes base assessment year from 2008 to 2016, then re-sets every 3 years thereafter Provides for additional FLPA grants over 4-year period for local governments harmed by the base year change Allows for parcels of at least 100 acres in one county to be aggregated to meet the 200-acre minimum for FLPA assessment Allows up to 5% of total FLPA grants to be withheld by the Dept. of Revenue to administer commercial timberland assessment process (discussed later)

Forestland and Timberland Assessment County Impact: Change in base year valuation will increase state grant funds for some counties and decrease for others, at least initially Counties negatively impacted will receive supplemental FLPA grants to limit harm (covering 80%, 60%, 40% and 20% of negative impact over first 4 years) FLPA grants will be subject to reduction by DOR administrative fee (up to 5% under HR 51; set at 3% by HB 85)

Forestland and Timberland Assessment 2. Creates new Property Classification: Qualified Commercial Timberland Property with primary use of producing trees for primary purpose of producing timber for commercial purposes No restrictive covenant required Assessment would be at fair market value, but conducted by DOR using DOR-created methodology Resulting fair market value could not be less than 175% of corresponding FLPA value

Forestland and Timberland Assessment County Impact: Boards of tax assessors would no longer perform valuation of qualified commercial timberland Unknown methodology to be used by DOR Unlike FLPA properties, no state grants to make up any revenue losses

Constitutional Amendment to Provide Certain Rights and Enforcement of those Rights of Victims of Crimes - Amendment 4 Ballot Question: “Shall the Constitution of Georgia be amended so as to provide certain rights to victims against whom a crime has allegedly been perpetrated and allow victims to assert such rights?" 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”.

Constitutional Amendment to Provide Certain Rights and Enforcement of those Rights of Victims of Crimes - Amendment 4 Amendment 4 was designed to add a Paragraph to the Georgia Constitution. The paragraph was written to, upon request, provide crime victims with specific rights; *the right to be treated with fairness, dignity, and respect; *the right to notice of all proceedings involving the alleged criminal; *the right to be heard at any proceedings involving that release, plea, or sentencing of the accused; *and the right to be informed of their rights. The amendment also contains provisions preventing its use to justify a legal action against the state or any state officials, a challenge to a verdict or sentence in a criminal case, an appeal of any criminal court decision or proceeding, and the ability to be a party in any criminal proceeding beyond what is explicitly allowed by the amendment.

County Impact: None Constitutional Amendment to Provide Certain Rights and Enforcement of those Rights of Victims of Crimes - Amendment 4 Amendment 4 was designed to add a Paragraph to the Georgia Constitution. The paragraph was written to, upon request, provide crime victims with specific rights; *the right to be treated with fairness, dignity, and respect; *the right to notice of all proceedings involving the alleged criminal; *the right to be heard at any proceedings involving that release, plea, or sentencing of the accused; *and the right to be informed of their rights. The amendment also contains provisions preventing its use to justify a legal action against the state or any state officials, a challenge to a verdict or sentence in a criminal case, an appeal of any criminal court decision or proceeding, and the ability to be a party in any criminal proceeding beyond what is explicitly allowed by the amendment.

School District E-SPLOST Distribution - Amendment 5 In counties with independent school districts, allows district with majority of students to call E-SPLOST referendum Current provision: all districts must agree to referendum In response to perception that smaller districts holding process hostage Allows districts to split proceeds according to IGA; otherwise, split pro rata according to total enrollment

Statewide Referendum Question – Atlanta Homestead Exemption Would create “floating” homestead exemption within the City of Atlanta, limiting amount of assessed value increase that could be taxed Statewide vote because enacted as general law rather than local law Required due to inclusion of provision excusing Atlanta from compliance with Taxpayers Bill of Rights provisions on notices of tax increases

Statewide Referendum Question – Property Tax Exemption -Homes for Mentally Disabled Existing law provides a property tax exemption for homes for the mentally disabled owned by a non-profit, tax-exempt organization Proposed amendment would allow same exemption where: The home is owned by a limited liability company that in turn is owned by the tax-exempt organization; and Where “indirect” ownership is in a for-profit organization that has provided financing in exchange for receiving low-income housing tax credits

Questions?