Georgia Code
Article 1 - General Provisions
§ 48-5-7.4. Bona Fide Conservation Use Property; Residential Transitional Property; Application Procedures; Penalties for Breach of Covenant; Classification on Tax Digest; Annual Report

(A.1) In the application of the limitation contained in the introductory language of this paragraph, the following rules shall apply to determine beneficial interests in bona fide conservation use property held in a family owned farm entity as described in division (1)(C)(iv) of this subsection:
(a.1) Notwithstanding any other provision of this Code section to the contrary, in the case of property which otherwise meets the requirements for current use assessment and the qualifying use is pursuant to division (1)(E)(iii) of subsection (a) of this Code section, when the owner seeks to renew the covenant or reenter a covenant subsequent to the termination of a previous covenant which met such requirements and the owner meets the qualifications under this Code section but the property is no longer being used for the qualified use for which the previous covenant was entered pursuant to division (1)(E)(iii) of subsection (a) of this Code section, the property is not environmentally sensitive property within the meaning of paragraph (2) of subsection (a) of this Code section, and the primary use of the property is maintenance of a wildlife habitat of not less than ten acres either by maintaining the property in its natural condition or under management, the county board of tax assessors shall be required to accept such use as a qualifying use for purposes of this Code section.
Prior to a denial of eligibility under this paragraph, the tax assessor shall conduct and provide proof of a visual, on-site inspection of the property. Reasonable notice shall be provided to the property owner before being allowed a visual, on-site inspection of the property by the tax assessor.
(k.1) In the case of an alleged breach of the covenant, the owner shall be notified in writing by the board of tax assessors. The owner shall have a period of 30 days from the date of such notice to cease and desist the activity alleged in the notice to be in breach of the covenant or to remediate or correct the condition or conditions alleged in the notice to be in breach of the covenant. Following a physical inspection of property, the board of tax assessors shall notify the owner that such activity or activities have or have not properly ceased or that the condition or conditions have or have not been remediated or corrected. The owner shall be entitled to appeal the decision of the board of tax assessors and file an appeal disputing the findings of the board of tax assessors. Such appeal shall be conducted in the same manner that other property tax appeals are made pursuant to Code Section 48-5-311. If the final determination on appeal to superior court is to reverse the decision of the board of tax assessors to enforce the breach of the covenant, the taxpayer shall recover costs of litigation and reasonable attorney’s fees incurred in the action.
and in any such case the property so transferred shall not be eligible for a covenant for bona fide conservation use, but shall, if otherwise qualified, be eligible for current use assessment as residential transitional property and the remainder of the property from which such transfer was made shall continue under the existing covenant until a terminating breach occurs or until the end of the specified covenant period.
History. Code 1981, § 48-5-7.4 , enacted by Ga. L. 1991, p. 1903, § 6; Ga. L. 1992, p. 6, § 48; Ga. L. 1993, p. 947, §§ 1-6; Ga. L. 1994, p. 428, §§ 1, 2; Ga. L. 1996, p. 1021, § 1; Ga. L. 1998, p. 553, §§ 3, 4; Ga. L. 1998, p. 574, § 1; Ga. L. 1999, p. 589, § 2; Ga. L. 1999, p. 590, § 1; Ga. L. 1999, p. 656, § 1; Ga. L. 2000, p. 1338, § 1; Ga. L. 2002, p. 1031, §§ 2, 3; Ga. L. 2003, p. 271, § 2; Ga. L. 2003, p. 565, § 1; Ga. L. 2004, p. 360, § 1; Ga. L. 2004, p. 361, § 1; Ga. L. 2004, p. 362, §§ 1, 1A; Ga. L. 2005, p. 60, § 48/HB 95; Ga. L. 2005, p. 222, §§ 1, 2/HB 1; Ga. L. 2006, p. 685, § 1/HB 1293; Ga. L. 2006, p. 819, § 1/HB 1502; Ga. L. 2007, p. 90, § 1/HB 78; Ga. L. 2007, p. 608, § 1/HB 321; Ga. L. 2008, p. 1149, §§ 1, 2, 3/HB 1081; Ga. L. 2012, p. 763, § 1/HB 916; Ga. L. 2013, p. 141, § 48/HB 79; Ga. L. 2013, p. 655, § 1/HB 197; Ga. L. 2013, p. 683, § 1/SB 145; Ga. L. 2016, p. 583, § 1/HB 987; Ga. L. 2017, p. 9, § 1/HB 238; Ga. L. 2018, p. 910, § 1/SB 458; Ga. L. 2019, p. 1056, § 48/SB 52.
The 2016 amendment, effective July 1, 2016, inserted “within 24 months from the date of the start” in the middle of paragraph (o)(1); in subsection (p), deleted “or” at the end of paragraph (p)(8), substituted “; or” for a period at the end of paragraph (p)(9), and added paragraph (p)(10).
The 2017 amendment, effective April 17, 2017, in division (a)(1)(C)(iv), in the middle, deleted “or” preceding “a trust of which the beneficiaries”, and inserted “, or an entity created by the merger or consolidation of two or more entities which independently qualify as a family owned farm entity,”; and, in subsection (p), deleted “or” at the end of paragraph (p)(9), substituted a semicolon for a period at the end of paragraph (p)(10), and added paragraphs (p)(11) and (p)(12).
The 2018 amendment, effective July 1, 2018, added the second sentence in subparagraph (a)(1)(B); deleted “conservation” following “nonprofit” in division (a)(1)(C)(v); deleted “pursuant to Section 501(c)(7) of the Internal Revenue Code” following “purposes” in division (a)(1)(C)(vi); substituted “wetland” for “wetlands” in the middle of the introductory paragraph of subsection (b); substituted the present provisions of paragraph (b)(2) for the former provisions, which read: “The owner of a tract, lot, or parcel of land totaling less than ten acres shall be required by the tax assessor to submit additional relevant records regarding proof of bona fide conservation use for qualified property that on or after May 1, 2012, is either first made subject to a covenant or is subject to a renewal of a previous covenant. If the owner of the subject property provides proof that such owner has filed with the Internal Revenue Service a Schedule E, reporting farm related income or loss, or a Schedule F, with Form 1040, or, if applicable, a Form 4835, pertaining to such property, the provisions of this paragraph, requiring additional relevant records regarding proof of bona fide conservation use, shall not apply to such property. Prior to a denial of eligibility under this paragraph, the tax assessor shall conduct and provide proof of a visual on-site inspection of the property. Reasonable notice shall be provided to the property owner before being allowed a visual, on-site inspection of the property by the tax assessor;”; added paragraphs (j)(2) through (j)(4); redesignated former paragraph (j)(2) as present paragraph (j)(5); added the last sentence in subsection (k.1); in subsection (l), deleted the former third sentence, which read: “Any such penalty shall bear interest at the rate specified in Code Section 48-2-40 from the date the covenant is breached.”, and added the present third through sixth sentences; deleted “or” at the end of paragraph (q)(3); substituted “; or” for a period at the end of paragraph (q)(4); and added paragraph (q)(5).
The 2019 amendment, effective May 12, 2019, part of an Act to revise, modernize, and correct the Code, substituted “provided that the owner” for “provided the owner” in the first sentence of paragraph (q)(5).
Code Commission notes.
Pursuant to Code Section 28-9-5, in 1998, subsection (w), as added by Ga. L. 1998, p. 574, § 1, was redesignated as subsection (x).
Pursuant to Code Section 28-9-5, in 2003, divisions (a)(2)(G)(1) and (a)(2)(G)(2) as added by Ga. L. 2003, p. 271, § 2, were redesignated as divisions (a)(2)(G)(i) and (a)(2)(G)(ii).
Pursuant to Code Section 28-9-5, in 2004, paragraph (a)(2.1) was redesignated as subsection (a.1) and “paragraph (2) of subsection (a) of this Code section” was substituted for “paragraph (2) of this subsection” in subsection (a.1).
Pursuant to Code Section 28-9-5, in 2012, “and paragraph (3)” was deleted following “paragraph (1) or (2)” in the introductory language of subsection (a); “May 1, 2012” was substituted for “the effective date of this paragraph” at the end of subparagraph (a)(1)(B); in paragraph (b)(2), “May 1, 2012,” was substituted for “the effective date of this paragraph” in the first sentence, a period was substituted for a semicolon at the end of the next-to-last sentence, and a semicolon was added at the end. The language appearing in the Act as “(1)(A) The governing authority of a county shall not publish or promulgate any information which is inconsistent with the provisions of this Chapter.” was redesignated as subsection (z).
Pursuant to Code Section 28-9-5, in 2018, “July 1, 2018” was substituted for “the effective date of this paragraph” in paragraph (q)(5).
Editor’s notes.
Ga. L. 1991, p. 1903, § 15, not codified by the General Assembly, provides that 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. 1993, p. 947, § 10, not codified by the General Assembly, provides: “Sections 1, 2, 3, 4, and 9 of this Act shall be applicable to all bona fide conservation use covenants entered into for all taxable years beginning on or after January 1, 1993, and to any table of values of bona fide conservation use property established by the state revenue commissioner for all taxable years beginning on or after January 1, 1993. Any bona fide conservation use covenant entered into for the taxable year beginning January 1, 1992, shall continue to be governed by the law in effect for that taxable year.”
Ga. L. 2002, p. 1031, § 9, not codified by the General Assembly, provided that the Act shall be applicable to all taxable years beginning on or after January 1, 2002.
Ga. L. 2003, p. 271, § 3, not codified by the General Assembly, provides that the amendment by this Act shall be applicable to all taxable years beginning on or after January 1, 2004.
Ga. L. 2004, p. 361, § 2, not codified by the General Assembly, provides that the amendment to subparagraph (a)(2)(F) shall apply to all taxable years beginning on or after January 1, 2005.
For application of this statute in 2020, see Executive Order 03.31.20.03.
A listing of Executive Orders issued in 2020 can be found at https://gov.georgia.gov/executive-action/executive-orders/2020-executive-orders.
Administrative rules and regulations.
Rules for Certification of Environmentally Sensitive Property, Official Compilation of the Rules and Regulations of the State of Georgia, Georgia Department of Natural Resources, Environmental Protection, Chapter 391-3-18.
Law reviews.
For note on the 2000 amendment of this Code section, see 17 Ga. St. U. L. Rev. 277 (2000).
For survey article on real property law, see 60 Mercer L. Rev. 345 (2008).
For annual survey on zoning and land use law, see 61 Mercer L. Rev. 427 (2009).
For article, “The Chevron Two-Step in Georgia’s Administrative Law,” see 46 Ga. L. Rev. 871 (2012).
For annual survey on real property, see 66 Mercer L. Rev. 151 (2014).
For annual survey on administrative law, see 69 Mercer L. Rev. 15 (2017).
For annual survey on local government law, see 69 Mercer L. Rev. 205 (2017).
For annual survey on environmental law, see 71 Mercer L. Rev. 1005 (2020).