Key Legislation That Passed

Despite Cuts, Funding for Counties Retained in FY 2021 Budget

The final FY 2021 Budget, House Bill 793, reduced or eliminated many of the initially-proposed cuts to the state budget. Though there were many reductions, funding for key county issues was ultimately included in the final version. These cuts effect services that help people… Mental Health, TANF and Human Services. Forestland Protection Grants were fully funded while funding for public health grants and accountability courts was reinstated. For detailed information on the Conference Committee Report on the budget, click here to view the tracking sheet.

COVID-19 Liability Protection for Businesses and Counties

Legislation providing liability coverage for businesses, health care providers, local governments, and other entities in response to the COVID-19 pandemic passed the House and Senate on the last day of session and now awaits the Governor’s signature. Senate Bill 359, the Georgia Pandemic Business Safety Act, includes county government employees and county government facilities in the definition as being afforded liability protection from such lawsuits.

Tweaks to Title Ad Valorem Tax (TAVT) Formula

House Bill 779 , this year’s Title Ad Valorem Tax (TAVT) legislation, is headed to the Governor’s desk. HB 779 adjusts the local split of TAVT proceeds for vehicles registered to addresses within city limits. Under this bill, counties will receive 23% (currently 28%) of the local TAVT share, and cities will receive 28% (currently 23%), with the county school system receiving 49%. For vehicles registered to unincorporated addresses, the county (51%) and school (49%) shares remain unchanged.

Peace Officer Annuity and Benefit Fund

Senate Bill 249 contains numerous changes to the Peace Officers Annuity and Benefit Fund (POAB). Among the major components are the inclusion of county jailers in the POAB Fund; an increase in the surcharge in order to meet the actuarial needs of the plan; increased contribution by members; and the language change that adds the fee to the fine instead of deducting it from counties’ portion of the fine. This should result in an increase in the amount of fines collected by counties.

Omnibus Alcohol Bill Passes

Late in the session, various alcohol-related bills were combined into House Bill 879 . The bill first requires a statewide, streamlined alcohol licensing process whereby the state and local governments review and issue new and renewed alcohol permits via an online portal. The bill also authorizes the home delivery (under very strict guidelines) of beer, wine and liquor unless prohibited by local governments; allows beer, wine and liquor tastings at package stores; authorizes local governments to permit package sales within 200 yards of college campuses; and allows local governments to change the hours of Sunday alcohol sales via an ordinance rather than taking it to referendum.

Counties Move Up in Priority of Payment

House Bill 576, changes the priority for payment for partial fine payments. When someone pays a portion of a fine instead of the full amount, there is a statutory priority of which entity receives payment first. Under current law, counties are 10th on that priority of payment, but HB 576 now places them at number five. This will result in an increase in fine revenue.

Sales Tax Refunds – Cash Flow Relief for Counties

House Bill 846 will lessen the impact of some sales-tax refunds paid out by the Department of Revenue (DOR). HB 846 codifies the “direct pay permit” program, under which major taxpayers from industries such as manufacturing, telecommunications, mining and transportation can directly pay sales taxes on their purchases (rather than paying sales taxes to vendors). When DOR determines that a direct-pay permit holder has overpaid sales taxes, counties (and other local governments) may choose to have that refund paid out over the same amount of time that the permit holder overpaid those taxes. Under present law, such refunds are deducted from DOR payments to local governments all at once, even if those taxes were overpaid for multiple years. This change will allow counties to avoid the significant cash flow problems that arise from such refunds being deducted all at once.

Timber Harvesting: Changes to County Ordinance & New Notification Website

House Bill 897  establishes a framework for a statewide timber harvest notification web page housed by the Georgia Forestry Commission; increases the fine for harvesters who fail to notify the county that they are operating within their jurisdiction; and increases the bond amount due by harvesters who have previously been found to cause damage to county roads and rights of way. Counties are encouraged to review their current Timber Harvest Notification Ordinance. Click  here for additional details.

To review additional key 2020 legislation that passed visit here

Key Legislation That Failed To Pass

Short Term Rental Preemptions Fall Short

House Bill 523 would have prohibited counties and cities from regulating most aspects of short-term rentals of property. Among the bill’s provisions, local governments could not prohibit such rentals, impose occupancy limits, require registration of such properties, regulate rental frequency, or require licenses/permits for or inspections of such properties.  Senate Bill 162 , as changed in the House, would have allowed local governments to regulate the occupancy or rental of residences (defined as properties rented for less than 30 consecutive days) within their jurisdictions; however, local governments could not have “prohibited all such occupancies or rentals” within their jurisdiction. Lastly, House Bill 980 would have redefined “family” in state law, mandating that local zoning codes permit all forms of housing, co-housing, boarding houses and student housing in single-family neighborhoods. All these bills failed.

Design Standards Preemptions Fail to Pass Muster

House Bill 302 , House Bill 937 and Senate Bill 172 would have prohibited counties and cities from regulating “building design elements” in single or double family dwellings. In short, if new residences and subdivisions met state minimum building standard codes, they could be built, and local governments would have no say in the matter.

General Assembly Declines to Take Up Lodging Facilitator Legislation

House Bill 448 ) requiring lodging facilitators such as Airbnb and VRBO to collect local hotel-motel taxes failed to pass. However, under legislation passed early in the session, as of April 1 st these lodging facilitators are required to collect sales taxes on short-term rentals through their platforms. HB 448 would also have expanded the state $5 per night fee (currently applicable to hotel stays) to also apply to short-term rentals.

To review additional key 2020 legislation that Did Not pass visit here