Exemption of homestead occupied by owner; effect of participation in rural housing program on homestead exemption; limits.

The homestead of each resident of this state actually occupied by the owner as a residence and homestead shall be exempted from all ad valorem taxation for state, county, and school purposes, except taxes levied by municipalities for school purposes and except to pay interest on and to retire bonded indebtedness, for as long as the residence and homestead is actually occupied by the owner primarily as a residence and homestead. The exemption shall not exceed $2,000.00 of the value of the homestead. Should the owner of a dwelling house on a farm who is already entitled to a homestead exemption participate in the program of rural housing and obtain a new house under contract with the local housing authority, he shall be entitled to receive the same homestead exemption as allowed before making the contract. Except as otherwise specifically provided by law, the value of all homestead property in excess of $2,000.00 shall remain subject to taxation. The exemption shall be returned and claimed in the manner prescribed by law. This exemption shall not apply to taxes levied by municipalities. History. Ga. L. 1946, p. 12, § 1; Ga. L. 1937-38, Ex. Sess., p. 145, §§ 6, 12, 14; Code 1933, § 91A-1110, enacted by Ga. L. 1978, p. 309, § 2. Cross references. Exemption of homestead and other property from levy and sale, Ga. Const. 1983, Art. VII, Sec. II, Para. I-IV and T. 44, C. 13. JUDICIAL DECISIONS There is no limitation as to size or physical proportions of property to be embraced within the homestead provision, and it would seem that the purpose of Ga. Const. 1945, Art. VII, Sec. I, Para. IV (see now Ga. Const. 1983, Art. VII, Sec. II, Para. I-IV) and Ga. L. 1946, p. 12, § 1 (see now O.C.G.A. § 48-5-44) in fixing a maximum valuation was by so doing to equalize the exemption as between applicants on the basis of value, regardless of the extent of the tract involved. Jones v. Johnson, 80 Ga. App. 340, 55 S.E.2d 904, 1949 Ga. App. LEXIS 835 (1949). Effect of use to which rural or farm homestead is put. — Reasonable intent of the homestead exemption provisions of the Constitution of Georgia and its statutes is to include in rural homesteads the entire tract of land upon which the house is situated, regardless of whether the land surrounding the dwellings be used simply as an extended approach to the building or put to agricultural uses. Jones v. Johnson, 80 Ga. App. 340, 55 S.E.2d 904, 1949 Ga. App. LEXIS 835 (1949). Farming not considered commercial or business enterprise for purposes of homestead exemption. — Owner of a farm located in this state, who resides in a house on the farm, is entitled to a homestead exemption as to the entire tract of land upon which the house is situated, to a value of $2,000.00, notwithstanding the fact that the owner devotes the land to agricultural purposes, since this is not such a use of the land as to amount to a commercial or business enterprise. Jones v. Johnson, 80 Ga. App. 340, 55 S.E.2d 904, 1949 Ga. App. LEXIS 835 (1949). OPINIONS OF THE ATTORNEY GENERAL Constitutional authority for exemptions. — Ga. L. 1946, p. 12, § 1 (see now O.C.G.A. §§ 48-5-42 and 48-5-44) are authorized by Ga. Const. 1945, Art. VII, Sec. I, Para. IV (see now Ga. Const. 1983, Art. VII, Sec. II, Para. I-IV). 1952-53 Ga. Op. Att'y Gen. 439. Construction of provision in constitution for disabled veterans with other provisions. — Amendment to Ga. Const. 1945, Art. VII, Sec. I, Para. IV (see Ga. Const. 1983, Art. VII, Sec. II, Para. I-IV), granting an exemption of $10,000.00 to disabled veterans, is to be read in pari materia with the original homestead provision in that constitutional provision. The statutes passed to carry the original provision into effect, former Code 1933, § 92-219 et seq. (see now O.C.G.A. § 48-5-40 et seq.) should also be applied to that amendment. 1960-61 Ga. Op. Att'y Gen. 492. In determining whether an applicant is entitled to a homestead exemption, it is necessary to ascertain from all the facts available whether the applicant owned and occupied the home on January 1 and whether the home was being occupied as a permanent residence and place of abode and was the legal residence of the applicant for all purposes. 1967 Op. Att'y Gen. No. 67-11. Property must be occupied by claimant as dwelling place. — Homestead exemption is allowed only for that property actually occupied by the claimant as a dwelling place. 1950-51 Ga. Op. Att'y Gen. 172. Widow who owns a life estate in her dead husband’s property is entitled to a homestead exemption. 1968 Op. Att'y Gen. No. 68-190. Exemption of farm which lies in two counties. — Owner of a farm is entitled to claim an exemption on the entire farm. If the farm lies in two counties, the applicant has a right to file application in each of the counties in proportion to the acreage or value located therein and claim as exempt the property located in each county, so long as the total exemption does not exceed the sum of $2,000.00. 1958-59 Ga. Op. Att'y Gen. 342. Exemption of house trailers. — If the house trailer is not on a permanent foundation but is located on land owned by the person residing in the trailer, the person is entitled to a homestead exemption on the value of the land. However, if the owner of a house trailer uses the trailer as the owner’s residence and has the trailer mounted on a foundation similar to the foundation of a house, but on land the owner does not own, the owner is not entitled to a homestead exemption. 1960-61 Ga. Op. Att'y Gen. 491. Exemption from taxes levied to pay principal and interest on bond indebtedness. — Exemption does not exempt property from taxes levied to pay the principal and interest on bonded indebtedness, whether past, present, or future. 1957 Ga. Op. Att'y Gen. 295. Homestead exemption must be applied prior to collection of taxes for county school purposes as well as for other taxing purposes. 1962 Ga. Op. Att'y Gen. 504. Liability of city residents for county school taxes after merger of school systems. — When an independent school system of a city was merged with the county school system in accordance with former Code 1933, §§ 32-1201, 32-1202 and 32-1203, (see now O.C.G.A. §§ 20-2-370 through 20-2-372), the homestead exemptions granted under Ga. L. 1937-38, Ex. Sess., p. 145, §§ 6, 12 and 14 (see now O.C.G.A. § 48-5-44) to the residents of the city would not become subject to the tax levied by the county for school purposes. In other words, the residents of the city would be on the same basis as residents of the county outside of the municipality with reference to school taxes. 1958-59 Ga. Op. Att'y Gen. 348. Comparison of homestead exemption and personal property exemption. — Personal property ad valorem tax exemption differs from a homestead exemption in that the former provides for an exemption of property up to $300.00 in value from all taxes whereby a homestead exemption is exempt from all taxes, except taxes for school purposes and taxes to pay interest on and retire bonded indebtedness. 1962 Ga. Op. Att'y Gen. 500. Effect of claim of two or more similar exemptions. — If a taxpayer is qualified for and chooses to invoke the benefits of any one of the exemptions from any one of the types of ad valorem taxes, the taxpayer necessarily triggers the limitation clause of that exemption; any attempt to take two or more similar exemptions would violate the limitation clause of each of the exemptions and cannot be done. 1974 Op. Atty Gen. No. U74-83. RESEARCH REFERENCES Am. Jur. 2d. 40 Am. Jur. 2d, Homestead, § 18. C.J.S. 40 C.J.S., Homesteads, § 14 et seq. ALR. Tax exemption of property as affecting its inclusion in determining requisite consent of property owners to annexation territory, local improvement, bond issue, and other public activity, 146 A.L.R. 1260. Homestead exemption as extending to rentals derived from homestead property, 40 A.L.R.2d 897. Prospective use for tax-exempt purposes as entitling property to tax exemption, 54 A.L.R.3d 9. Availability of tax exemption to property held on lease from exempt owner, 54 A.L.R.3d 402.