2022 Georgia Code
Title 48 - Revenue and Taxation
Chapter 5 - Ad Valorem Taxation of Property
Article 2 - Property Tax Exemptions and Deferral
Part 1 - Tax Exemptions
§ 48-5-41.1. Exemption of Qualified Farm Products and Harvested Agricultural Products of Family Farm Entities

1. As used in this Code section, the term:
   1. “Agricultural equipment” means 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 farm products by a family owned qualified farm products producer.
   2. “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.
   3. “Family owned qualified farm products producer” means an individual or family owned farm entity primarily engaged in the direct cultivation of the soil, including soil removed from the land and placed in pots or containers, or operation of land for the production of qualified farm products. A family owned qualified farm products producer shall not include wholesalers, distributors, storage facility owners, manufacturers, processors, or other similar entities that primarily prepare qualified farm products for any intermediate or final market or that primarily operate to move or facilitate the movement of qualified farm products from a producer to any intermediate or final markets.
   4. “Farm products” means only those farm products eligible to qualify for exemption from ad valorem taxation pursuant to the former provisions of paragraph (10) of subsection (a) of Code Section 48-5-41 as it existed prior to January 1, 1999.
   5. “Harvested agricultural products” means only those harvested agricultural products eligible to qualify for exemption from ad valorem taxation pursuant to the former provisions of paragraph (10) of subsection (a) of Code Section 48-5-41 as it existed prior to January 1, 1999.
   6. “Initial production” means:
      1. When applied to a laying hen, a period beginning at the time the laying hen comes into production at age six months rather than a period beginning when the laying hen is hatched; or
      2. When applied to a brood cow, a period of nine months from the time the brood cow is able to conceive at age 12 months rather than a period beginning when the brood cow is born.
   7. “Lease-purchase agreement” means a financing agreement under which lessee payments are credited toward the purchase of agricultural equipment or that provides for a fixed amount purchase option to a lessee during the lease term. Under a lease-purchase agreement the title of ownership may remain with the lessor during the lease.
   8. “Producer” means any entity that produces farm products.
   9. “Qualified farm products” means 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 elsewhere. Qualified farm products shall not include standing timber.
2. The following property shall be exempt from all ad valorem property taxes in this state:
   1. All farm products grown in this state and remaining in the hands of the producer during the one year beginning immediately after their initial production;
   2. Harvested agricultural products which have a planting-to-harvest cycle of 12 months or less, which are customarily cured or aged for a period in excess of one year after harvesting and before manufacturing, and which are held in this state for manufacturing and processing purposes;
   3. All qualified farm products grown in this state:
      1. Remaining in the hands of a family owned qualified farm products producer;
      2. Still in their natural and unprocessed condition, unless processed solely for further use in the production of other qualified farm products; and
      3. Not held for direct retail sale by someone other than the original family owned qualified farm products producer; and
   4. Agricultural equipment.

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).