2020 Georgia Code
Title 36 - Local Government
Chapter 62 - Development Authorities
§ 36-62-3. Constitutional Authority for Chapter; Finding of Public Purposes; Tax Exemption

This chapter is passed pursuant to authority granted the General Assembly by Article IX, Section VI, Paragraph III of the Constitution of this state. Each authority created by this chapter is created for nonprofit and public purposes, and it is found, determined, and declared that the creation of each such authority and the carrying out of its corporate purposes is in all respects for the benefit of the people of this state and that the authority is an institution of purely public charity and will be performing an essential governmental function in the exercise of the power conferred upon it by this chapter. For such reasons, the state covenants, from time to time, with the holders of the bonds issued under this chapter that such authority shall be required to pay no taxes or assessments imposed by the state or any of its counties, municipal corporations, political subdivisions, or taxing districts upon any property acquired by the authority or under its jurisdiction, control, possession, or supervision or leased by it to others (other than property leased for the purposes of a "project" as defined in subparagraph (J) or (K) of paragraph (6) of Code Section 36-62-2, which shall be taxable by the state and its counties, municipal corporations, political subdivisions, and taxing districts) or upon its activities in the operation or maintenance of any such property or on any income derived by the authority in the form of fees, recording fees, rentals, charges, purchase price, installments, or otherwise, and that the bonds of such authority, their transfer, and the income therefrom shall at all times be exempt from taxation within this state. The tax exemption provided in this Code section shall not include any exemption from sales and use tax on property purchased by the authority or for use by the authority.

(Ga. L. 1963, p. 531, § 13; Ga. L. 1969, p. 137, § 10; Ga. L. 1979, p. 413, § 2; Ga. L. 1980, p. 1332, § 2; Ga. L. 1983, p. 3, § 57; Ga. L. 1987, p. 3, § 36; Ga. L. 1992, p. 6, § 36.)

- Prepayment of ad valorem or school taxes by developers of major industrial projects, § 48-5-31.

- Ga. L. 1979, p. 413, § 3, which Act amended this section, provides that if any provision of § 1 or § 2 of the Act is held to be invalid or inoperative, the remaining provisions of the Act shall be deemed to be void and of no effect.

Ga. L. 1980, p. 1332, § 3, which Act amended this section, provides that if any part of the Act is declared or adjudged invalid or unconstitutional, such adjudication shall affect the other parts of the Act, which shall thereafter be of no force and effect.

- For article, "Tax-Exempt Financing of Section 8 Housing Projects," see 15 Ga. St. B. J. 68 (1978). For article discussing the role of Georgia development authorities in tax-exempt financing of private business, see 16 Ga. St. B. J. 8 (1979). For article discussing tax-exempt financing in Georgia, see 18 Ga. St. B. J. 20 (1981).

JUDICIAL DECISIONS

Business taking leasehold from authority subject to taxation.

- While the authority is exempt under O.C.G.A. § 36-62-3, a business which takes a leasehold from the authority is subject to ad valorem taxation on the fair market value of the possessory interest held. DeKalb County Bd. of Tax Assessors v. W.C. Harris & Co., 248 Ga. 277, 282 S.E.2d 880 (1981).

- Trial court erred by validating taxable revenue bonds for a county development authority as the order validating the bonds failed to set forth sufficient findings of fact and conclusions of law to support the court's holdings and, thus, failed to satisfy the requirements of O.C.G.A. § 9-11-52(a). Sherman v. Dev. Auth., 320 Ga. App. 689, 740 S.E.2d 663 (2013).

- In a taxpayer's suit against a county and officials, the court upheld the grant of summary judgment to the county because the testimony of the counsel for the taxpayers was insufficient to create an issue of material fact on the taxpayer's claims in regard to the tax-exempt status of the county development authority-owned properties as there was no evidence that any of the properties actually possessed the characteristics of an office building or hotel facility as defined in O.C.G.A. § 36-62-2. SJN Props., LLC v. Fulton County Bd. of Assessors, 296 Ga. 793, 770 S.E.2d 832 (2015).

OPINIONS OF THE ATTORNEY GENERAL

Property held by other entity subject to taxation.

- While a development authority is not required to pay any ad valorem taxes on any estate the authority holds, an estate in property held by another entity is not exempt from ad valorem taxation. 1974 Op. Att'y Gen. No. U74-5.

RESEARCH REFERENCES

C.J.S.

- 64 C.J.S., Municipal Corporations, §§ 1279, 1280. 64A C.J.S., Municipal Corporations, § 2267 et seq.

- Bond or warrant of governmental subdivision as subject of taxation or exemption, 44 A.L.R. 510.

Tax exemptions and the contract clause, 173 A.L.R. 15.