"Local Government" Defined; Contract for Prepayment of Ad Valorem Taxes; Accounting; No Debt of Local Government Created

  1. Law
  2. Georgia Code
  3. Revenue and Taxation
  4. Ad Valorem Taxation of Property
  5. General Provisions
  6. "Local Government" Defined; Contract for Prepayment of Ad Valorem Taxes; Accounting; No Debt of Local Government Created

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  1. As used in this Code section, the term "local government" means the governing body of any county or any municipal corporation which has the authority to collect ad valorem taxes.
  2. Notwithstanding any provision of law to the contrary, and subject to the conditions specified in this Code section, any taxpayer may enter into an agreement with any local government and tax commissioner or tax collector for the prepayment of ad valorem taxes. Any such agreement shall be a lawful and binding contract enforceable by and against the local government and the taxpayer.
  3. No tax prepayment agreement authorized under this Code section shall become effective until the local government with the concurrence of the tax commissioner or tax collector has adopted a resolution authorizing such agreements and the subsequent execution of the prepayment of taxes agreement by the taxpayer, the tax commissioner or tax collector, and the local government. Such tax prepayment agreement shall provide for the prepayment to the tax commissioner or tax collector of not more than the amount of ad valorem taxes assessed on the subject property for the preceding tax year. The amount of taxes thus prepaid, without interest, shall be subsequently credited by the tax commissioner or tax collector against taxes due in the current tax year. Prepayments may be made by installments as provided for in the agreement. Such prepaid funds shall be maintained in a separate escrow account and shall not be expended except for payment of the taxpayer's ad valorem tax liability.
  4. Nothing contained in this Code section shall be construed to require a local government to enter into a tax prepayment agreement.
  5. Notwithstanding any other provision of law, no tax prepayment shall create a debt of the local government. To the extent that annual credits for prepaid taxes may exceed taxes due in any particular year pursuant to annual assessments of the subject property, the excess annual credit otherwise due that year shall be carried forward in the taxpayer's account and in no event shall the taxpayer or any other person be allowed to claim a refund of any part of a prepayment.

(Code 1981, §48-5-31.1, enacted by Ga. L. 2019, p. 271, § 2/SB 216.)


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