Georgia Code
Part 1 - Tax Exemptions
§ 48-5-41.1. Exemption of Qualified Farm Products and Harvested Agricultural Products of Family Farm Entities

History. Code 1981, § 48-5-41.1 , enacted by Ga. L. 1998, p. 1150, § 3; Ga. L. 1999, p. 81, § 48; Ga. L. 2000, p. 950, § 1; Ga. L. 2001, p. 887, § 1; Ga. L. 2005, p. 140, § 1/HB 203; Ga. L. 2015, p. 947, § 1/HB 374; Ga. L. 2017, p. 482, § 1/HB 290.
Delayed effective date.
Ga. L, 2021, p. 602, § 2-2/HB 498, not codified by the General Assembly, provides, in part, that “The Secretary of State shall call and conduct an election as provided in this section for the purpose of submitting Part II of this Act to the electors of the entire state for approval or rejection. The Secretary of State shall conduct such election on the Tuesday next following the first Monday in November, 2022, and shall issue the call and conduct that election as provided by general law. The Secretary of State shall cause the date and purpose of the election to be published once a week for two weeks immediately preceding the date thereof in the official organ of each county in the state.
“All persons desiring to vote for approval of the Act shall vote ‘Yes,’ and all persons desiring to vote for rejection of the Act shall vote ‘No.’ If more than one-half of the votes cast on such question are for approval of the Act, Part II of this Act shall become of full force and effect on January 1, 2023, and shall be applicable to all tax years beginning on or after such date. If the Act is not so approved or if the election is not conducted as provided in this section, Part II of this Act shall not become effective, and Part II of this Act shall be automatically repealed on the first day of January immediately following that election date. It shall be the duty of each county election superintendent to certify the result thereof to the Secretary of State.”
This Code section, as amended, is not set out in the Code owing to the delayed effective date. After approval by the electors of the state, paragraphs (a)(2) and (a)(9) will read as follows:
“(2) ‘Family owned farm entity’ means an entity that has derived 80 percent or more of its gross income from bona fide agricultural uses within this state within the year immediately preceding the year in which the exemption provided by this Code section is sought and that is organized as:
“(A) A family corporation, a family partnership, a family general partnership, a family limited partnership, a family limited corporation, or a family limited liability company all of the interest of which is owned by one or more natural or naturalized citizens related to each other within the fourth degree of civil reckoning;
“(B) An entity created by the merger or consolidation of two or more entities that would qualify independently as a family owned farm entity as defined in subpragraph (A) of this paragraph;
“(C) An estate of which the devisees or heirs are one or more natural or naturalized citizens related to each other within the fourth degree of civil reckoning;
“(D) A trust of which the beneficiaries are one or more natural or naturalized citizens related to each other within the fourth degree of civil reckoning.
“(9) ‘Qualified farm products’ means livestock; dairy products; unfertilized eggs of poultry; crops; fruit or nut-bearing trees, bushes, or plants; annual and perennial plants; Christmas trees; and plants and trees grown in nurseries for transplantation elsewhere. Qualified farm products shall not include standing timber.”
The 2015 amendment, effective July 1, 2015, added paragraph (c)(1) and designated the previously existing provisions of subsection (c) as paragraph (c)(2).
The 2017 amendment, effective July 1, 2017, added paragraph (a)(1); redesignated former paragraphs (a)(1) through (a)(5) as present paragraphs (a)(2) through (a)(6), respectively; added paragraph (a)(7); redesignated former paragraphs (a)(6) and (a)(7) as present paragraphs (a)(8) and (a)(9), respectively; deleted “and” at the end of paragraph (b)(2); substituted “; and” for a period at the end of subparagraph (b)(3)(C); added paragraph (b)(4); and deleted subsection (c), which read: “(c)(1) As used in this subsection, the term ‘lease purchase agreement’ means a financing agreement under which:
“(A) A family owned qualified farm products producer has possession and control of farm tractors, combines, or other farm equipment other than motor vehicles equipment and uses such farm equipment directly in the production of agricultural products; and
“(B) The payments made pursuant to such financing agreement are credited towards the purchase of such farm equipment.
“(2) Farm tractors, combines, and all other farm equipment other than motor vehicles, whether fixed or mobile, which are owned by or held under a lease purchase agreement and directly used in the production of agricultural products by family owned qualified farm products producers shall be exempt from all ad valorem property taxes in this state.”
The 2021 amendment, rewrote paragraph (a)(2), which read: “ ‘Family owned farm entity’ means a family corporation, a family partnership, a family general partnership, a family limited partnership, a family limited corporation, or a family limited liability company all of the interest of which is owned by one or more natural or naturalized citizens related to each other within the fourth degree of civil reckoning. It shall include an estate of which the devisees or heirs are one or more natural or naturalized citizens related to each other within the fourth degree of civil reckoning. It shall include a trust of which the beneficiaries are one or more natural or naturalized citizens related to each other within the fourth degree of civil reckoning. Such family owned farm entity must have derived 80 percent or more of its gross income from bona fide agricultural uses within this state within the year immediately preceding the year in which the exemption provided by this Code section is sought.”, and, in paragraph (a)(9), substituted “livestock; dairy products; unfertilized eggs of poultry; crops; fruit or nut-bearing trees” for “livestock; crops; fruit or nut bearing trees”. See the delayed effective date note for effective date and applicability.
Editor’s notes.
Ga. L. 1998, p. 1150, § 4, not codified by the General Assembly, provides that the Act is applicable to taxable years beginning on or after January 1, 1999.
The state-wide referendum (Ga. L. 1998, p. 1150) which exempted from ad valorem taxation livestock, crops, fruit or nut bearing trees, bushes, or plants; annual and perennial plants; Christmas trees, and plants and trees grown in nurseries for transplantation, was approved by a majority of the qualified voters voting at the November, 1998 general election.
The state-wide referendum (Ga. L. 2000, p. 950, § 2) which added subsection (c) was approved by a majority of the qualified voters voting at the general election held on November 7, 2000.
The state-wide referendum (Ga. L. 2005, p. 140, § 2) which inserted language in subsection (c) was approved by a majority of the qualified voters voting at the general election held on November 7, 2006.
Law reviews.
For note on the 2001 amendment to this Code section, see 18 Ga. St. U. L. Rev. 289 (2001).