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| We want to keep Georgia Green: | ||||||||||
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| Amendment #1, the "Georgia Forest Land Protection Act of 2008" is now law! It was approved by nearly 70% of voters in the Nov. 4 election • Frequently Asked Questions about Amendment #1 Q: What is Amendment #1? On November 4, the General Election ballot will include a proposed amendment to the Georgia Constitution known as amendment #1. The amendment will appear on the ballot as follows: “Shall the Constitution of Georgia be amended so as to provide that the General Assembly by general law shall encourage the preservation, conservation, and protection of the state's forest through the special assessment and taxation of certain forest lands and assistance grants to local government?” Q: What does Amendment #1 do? For property tax purposes, Amendment #1 will allow state and local governments to assess forestland according to its value as a forest rather than at fair market value. To receive the forest value assessment, forestland owners will have to promise to leave their land in tree production for at least 15 years. Q: Why is Amendment #1 needed? Property taxes on most Georgia forestland are based on the fair market value of the land. As land values have increased, property taxes in many areas have risen to the point where many landowners have to decide whether it makes economic sense to keep their land in forests or sell it for development. Landowners in areas of the state that were once rural but are now rapidly growing are especially feeling the pinch of rising property taxes. Amendment #1 will encourage landowners to keep their land in forests rather than selling it for development. Q: What is fair market value and why is it important? In the context of property taxes, fair market value is the estimated value of property at its highest and best use. The fair market value is the basis for calculating most property taxes. Development pressure raises the fair market value of forestland, increasing property taxes and discouraging landowners from keeping the land in forest. High taxes penalize landowners for providing greenspace. Amendment #1 encourages greenspace. Q: Why is forest land different from other land? Forest management is a long-term commitment for landowners. Forest owners may receive no return on their investment for 20 years or more, but they must pay property taxes every year. An increasing property tax burden often forces landowners to consider whether the investment is worthwhile. Amendment #1 will help forestland owners afford to keep their land in forests. Q: I don't own forestland. Why should I support Amendment #1? Georgia is the number one forestry state in the nation, and the forest industry is a major economic force. Forestland is good for our environment. Trees help to clean our air and water and provide habitat for wildlife. Many recreational activities occur in woodlands. Georgia's abundant forests add to our quality of life. Vote yes on Amendment #1 to keep Georgia green! Q: How will Amendment #1 affect my county's tax base? Amendment #1 will affect local county tax revenues very little. If Amendment #1 causes the total county tax digest of revenue to be reduced by 3% or less, the State of Georgia will reimburse the county for half the lost revenue. Lost revenue in excess of 3% will be totally reimbursed by the State. Q: Who supports Amendment #1? This amendment is supported by diverse groups representing farmers, foresters, environmentalists, and sportsmen. The legislation authorizing Amendment #1 passed the Georgia House of Representatives on March 6 by a margin of 159-0. It passed the Georgia Senate 46-1 on March 31, and was signed by Governor Perdue on May 8. Just about everybody who loves the outdoors and wants to preserve Georgia's forests supports this amendment. Q: What type of land qualifies to be entered into the 15 year covenant? The property must be a tract of land of at least 200 acres which has as its primary use the preservation & management of wildlife habitat; the commercial production of trees, timber, or other wood products; or carbon sequestration. At least half of the land must be dedicated to these uses provided that no business is being operated on the unused portion, and the unused portion of the property must be managed in an environmentally responsible manner. The land must be owned by individuals or entities registered to do business in Georgia. Q: What is the 15 year covenant? In order to receive the reduced property tax assessment, landowners must sign a legal document stating the property will continue to be used as forestland for the next 15 years. Stiff penalties are associated with breaching the covenant. Q: What are penalties for breaching the 15 year covenant? If the breach occurs during the first five years of the covenant, the penalty is 3 times the accrued tax savings received by the owner. If the breach occurs in years 6-10, the penalty is two and a half times the tax savings, and in years 11-15, the penalties are double the accrued tax savings over the life of the covenant. The penalties and interest constitute a lien on the property and shall be collected under the same authorization as property taxes. Q: When will Amendment #1 go into effect? Amendment #1 will appear on the November 4 General Election ballot. If ratified by the voters, the effective date is January 1, 2009. |
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