Georgia Code
Article 1 - General Provisions
§ 48-5-2. Definitions

As used in this chapter, the term:
(.1) “Arm’s length, bona fide sale” means a transaction which has occurred in good faith without fraud or deceit carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his or her own self-interest, including but not limited to a distress sale, short sale, bank sale, or sale at public auction.
(B.1) The tax assessor shall not consider any income tax credits with respect to real property which are claimed and granted pursuant to either Section 42 of the Internal Revenue Code of 1986, as amended, or Chapter 7 of this title in determining the fair market value of real property.
(B.2) In determining the fair market value of real property, the tax assessor shall not include the value of any intangible assets used by a business, wherever located, including patents, trademarks, trade names, customer agreements, and merchandising agreements.
(II) In establishing the value of any property subject to rent restrictions under the income approach, any income tax credits described in division (vi) of this subparagraph that are attributable to property may be considered in determining the fair market value of the property, provided that such income tax credits generate actual income to the record holder of title to the property; and
History. Ga. L. 1909, p. 36, § 22; Civil Code 1910, § 1004; Code 1933, § 92-5702; Ga. L. 1968, p. 358, § 1; Ga. L. 1969, p. 980, § 2; Ga. L. 1975, p. 96, § 1; Ga. L. 1978, p. 1950, § 1; Code 1933, § 91A-1001, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1979, p. 5, § 17; Ga. L. 1983, p. 716, § 1; Ga. L. 1989, p. 1585, § 1; Ga. L. 1990, p. 1122, § 1; Ga. L. 1990, p. 1869, § 1; Ga. L. 1991, p. 1903, § 2; Ga. L. 1992, p. 1008, § 1; Ga. L. 2001, p. 1098, § 1; Ga. L. 2003, p. 170, § 1; Ga. L. 2008, p. 297, § 1/HB 1211; Ga. L. 2009, p. 27, § 1/SB 55; Ga. L. 2010, p. 1104, §§ 5-1, 5-2, 5-3, 5-4/SB 346; Ga. L. 2012, p. 843, § 3/HB 1102; Ga. L. 2014, p. 672, § 1/HB 755; Ga. L. 2014, p. 820, § 1/HB 954; Ga. L. 2017, p. 55, § 1/HB 196; Ga. L. 2017, p. 774, § 48/HB 323; Ga. L. 2018, p. 119, §§ 1, 2/HB 85; Ga. L. 2018, p. 1112, § 48/SB 365; Ga. L. 2019, p. 651, § 1/HB 507.
The 2017 amendments.
The first 2017 amendment, effective July 1, 2017, in the second sentence of paragraph (3), substituted “utilized” for “considered” near the middle and inserted “, and, if actual income and expense data are voluntarily supplied by the property owner, such data shall be considered in such determination” at the end; rewrote division (3)(B)(vi); added division (3)(B)(vii); and redesignated former division (3)(B)(vii) as present division (3)(B)(viii). The second 2017 amendment, effective May 9, 2017, part of an Act to revise, modernize, and correct the Code, revised language in paragraph (3), and, in division (3)(F)(i), revised punctuation and substituted “ ‘Georgia Brownfield Act’ ” for “ ‘Georgia Hazardous Site Reuse and Redevelopment Act’ ”.
The 2018 amendments.
The first 2018 amendment, effective January 1, 2019, added subparagraph (3)(G), inserted “use” following “Forestland conservation” in paragraph (5), and rewrote paragraph (6). The second 2018 amendment, effective May 8, 2018, part of an Act to revise, modernize, and correct the Code, revised punctuation in subdivisions (3)(B)(vii)(I) and (3)(B)(vii)(II).
The 2019 amendment, effective January 1, 2020, in paragraph (3), near the middle of the second sentence, substituted “considered in” for “utilized in” and substituted “property. If actual” for “property, and, if actual”; substituted “rehabilitated historic property,” for “ ‘rehabilitated historic property,’ ” near the middle of divisions (3)(C)(i) and (3)(C)(ii); and substituted “landmark historic property,” for “ ‘landmark historic property,’ ” near the middle of divisions (3)(D)(i) and (3)(D)(ii).
Code Commission notes.
Pursuant to Code Section 28-9-5, in 2010, a misspelling of “occurred” was corrected in paragraph (.1).
Pursuant to Code Section 28-9-5, in 2018, “rehabilitated” was inserted before “historic property” in subparagraph (3)(C).
Editor’s notes.
Ga. L. 1991, p. 1903, § 15, not codified by the General Assembly, provides that the amendment to this Code section shall be applicable beginning January 1, 1992, with respect to ad valorem taxation of timber and shall be applicable beginning January 1, 1992, for all other purposes. Taxation for prior periods shall continue to be governed by prior law.
Ga. L. 2008, p. 297, § 5/HB 1211, not codified by the General Assembly, provides that the 2008 amendment becomes effective on January 1, 2009, upon the ratification of a resolution at the November 2008, state-wide general election, which resolution amends the Constitution so as to provide for the special assessment and taxation of forest land conservation use property and for local government assistance grants. The constitutional amendment (Ga. L. 2008, p. 1209) was ratified at the general election held on November 4, 2008.
Ga. L. 2009, p. 27, § 5/SB 55, not codified by the General Assembly, provides, in part, that the amendment to this Code section shall be applicable to all taxable years beginning on or after January 1, 2009.
Ga. L. 2017, p. 55, § 1/HB 196, which amended this Code section, purported to amend paragraph (3) but no changes were made to subparagraphs (B.1), (B.2), and (C) through (F).
Ga. L. 2018, p. 119, § 7/HB 85, not codified by the General Assembly, provides, in part, that this Act shall become effective on January 1, 2019, upon the ratification of the question presented to the voters at the November 6, 2018 election. The constitutional amendment was approved by a majority of the qualified voters voting at the general election held on November 6, 2018.
Law reviews.
For article discussing tax exemptions and deductions as incentives for establishment of foreign business in Georgia, see 27 Mercer L. Rev. 629 (1976).
For note on the 1989 amendment to this Code section, see 6 Ga. St. U. L. Rev. 173 (1989).
For annual survey on law of real property, see 43 Mercer L. Rev. 353 (1991).
For article, “The Tax Abatement Program for Historic Properties in Georgia,” see 28 Ga. St. B.J. 129 (1992).
For annual survey on real property law, see 61 Mercer L. Rev. 301 (2009).
For annual survey on real property, see 66 Mercer L. Rev. 151 (2014).
For survey article on local government law, see 67 Mercer L. Rev. 147 (2015).
For survey article on real property law, see 67 Mercer L. Rev. 193 (2015).
For annual survey on local government law, see 68 Mercer L. Rev. 199 (2016).
For annual survey of real property law, see 68 Mercer L. Rev. 231 (2016).
For annual survey on local government law, see 69 Mercer L. Rev. 205 (2017).
For annual survey on local government law, see 71 Mercer L. Rev. 189 (2019).