Legislative Days 23-25

On February 3, Chief Justice Nels Peterson issued a concurrence in Media v.  Walker, urging the General Assembly to revise two sections of Georgia’s garnishment statute.

Under current law, a garnishee – often a financial institution – that fails to timely respond to a garnishment may be held liable for the full amount of the underlying judgement, often in excess of $1 million.  Chief Justice Peterson noted that the statute permits default judgments against garnishees for the entire debt owned by the defendant, even when the initial garnishment amount was substantially lower.

CBA and the other financial trade associations have brought this concern to the House Judiciary Committee staff; this on their “to do” list.  Unfortunately, there is likely not enough time for a bill to be drafted, vetted, and introduced this session and we expect to pursue a remedy in the 2027 session.

Property Owners’ Associations.  Legislators in both the House and Senate are interested in reforming predatory practices of property owners’ associations (POAs), with an emphasis on transparency and enforcement actions that threaten ownership.  Several bipartisan bills are active in this space, including: 

• HB 512 to require POAs to provide annual certificates of good standing 

• HB 1036 and HR 1046 to allow binding referendum to dissolve property owners’ associations 

• HB 1219 to require all new associations be subject to the Property Owners’ Association Act 

• HB 1221 to require property owners' associations to disclose certain fines and fees before an association can collect reasonable attorney's fees. 

• HB 1222 to standardize the process for obtaining an estoppel when a property is being sold or refinanced 

• HB 1251 to require certain disclosures to unit owners. 

• SB 108 to require alternative dispute resolution prior to enforcing a lien 

• SB 361 to authorize liens and the use of assessments by property owners' associations 

• SB 393 to prohibit property owners’ associations from traffic and parking enforcement 

• SB 406 to raise the minimum delinquency threshold for foreclosure 

Corporate Home Ownership.  Policymakers continue to grapple with the issue of corporate ownership of single-family residential properties (SFRP).  Legislators are considering a myriad of options: 

• HB 305 to prohibit large corporations from owning more than 25 SFRPs in a single county 

• HB 374 to establish housing management databases of corporate owners of more than 10 contiguous units of SFRP in a single jurisdiction 

• HB 403 to limit corporate ownership of SFRPs to no more than 12,000 units statewide 

• HB 864 to require corporations to divest all SFRP by 2030 

• HB 1017 to tax certain corporate-owned SFRP at 100% of fair market value 

• HB 1055 to prohibit certain entities from owning 25 or more SFRPs 

• HB 1115 to prohibit corporations from owning more than 2,000 SFRPs 

• HB 1228 and HR 1244 to tax these properties at 100% of fair market value 

• HB 1252 to prohibit certain corporations from owning SFRPs 

• HR 1103 to encourage local governments to assist with reducing “Wall Street landlord ownership” 

• HR 656 to create a study committee on this topic 

• SB 313 to require a registry of owners with more than 20 residential rental properties statewide 

• SB 463 to prohibit corporations from working more than 500 SFRPs 

Eliminate Ad Valorem Tax on Timber (HR 1000) Rep. Chuck Efstration, R—Mulberry
Favorably reported from the House Ways and Means Committee on February 11 

HR 1000 proposes an amendment to the Constitution to eliminate the ad valorem tax assessment of certain timber at sale or harvest.  To make affected cities, counties, and school districts whole, the state will annually appropriate funding according to a formula.

Property Tax Reform (HB 1116 / HR 1114) Rep. Shaw Blackmon, R-Bonaire
Considered by a House Ways and Means Subcommittee on February 9 

The Georgia HOME Act eliminates property taxes on homesteaded property statewide by 2032.  The bill caps local property tax revenue growth at 3% for non-homesteaded property, which continues to pay property taxes.  To make up for the $5 billion in lost revenue for schools and local governments, the proposal allows those entities to repurpose existing sales taxes or charge assessments that are not tied to property value. 

Income Tax Reduction (HB 800)  Rep. Shaw Blackmon, R-Bonaire
Favorably Reported by the House Ways and Means Committee on February 26

HB 800 accelerates the reduction of the state income tax rate under certain revenue triggers.

Georgia Homeownership Protection Act (HB 1035) Rep. Sandra Scott, D-Rex
Favorably Reported by the House Ways and Means Committee on February 26

HB 1035 prohibits local governments from adding unpaid service charges to the ad valorem tax roll for purposes of tax execution or tax sale of an owner-occupied dwelling.

Deny Tax Credits for Businesses that Hire Illegal Aliens (SB 465) Sen. Steve Gooch, R-Dahlonega
Favorably Reported by the Senate Finance Committee on February 25

SB 465 disqualifies business enterprises that hire illegal aliens for large-scale projects from claiming certain tax credits associated with such projects. 

Business Litigation Reform (HB 1185) Rep. Chuck Efstration, R-Mulberry
Adopted by the House on February 25 and assigned to the Senate Judiciary Committee on February 26

This business-friendly litigation reform is designed to make Georgia more attractive for incorporation and headquarters operations.

Nonjudicial Foreclosure on Time Share Estates (HB 1364) Rep. Rob Leverett, R-Elberton
Favorably reported by the House Judiciary Committee on February 23

HB 1364 repeals provisions for nonjudicial foreclosures of time-share estates, subject to exceptions for time-share estates created during certain time periods.

Unauthorized Practice of Law (HB 1433) Rep. Joseph Gullett, R-Dallas
Assigned to the House Judiciary Committee on February 25

HB 1433 makes certain acts of unauthorized practice of law felonies.  The bill was dropped to mitigate concerns expressed with the Remote Online Notary legislation (HB 289) and ongoing discussions from past sessions.

Active Measures: Technology