Georgia Department of Revenue EXEMPTIONS What’s new for 2010? 1. Military Spouses Residency Relief Act: DOR regulations 2. Masters vs. Dekalb County Board of Assessors: Homestead for married individuals. 3. Watercraft owned by Dealer: exemption extended 4. Heavy Duty Equipment: $100,000 exemption 5. Public Property: HB1186 Public-Private Transportation 6. Purely Public Charity: Athens-Clarke…vs Nucci Phillips… Georgia Department of Revenue Chapter I Digest Review Georgia Department of Revenue • Print image digest page Georgia Department of Revenue Georgia Department of Revenue Chapter II Constitution of United States Georgia Department of Revenue U.S. Constitution Article VI: Supremacy Clause may render certain state constitutional provisions or statutes null and void. • The states have no power, by taxation, or otherwise, to retard, impede, burden, or in any manner control, the operations of the constitutional laws enacted by Congress… Georgia Department of Revenue Service Members Civil Relief Act • Provides that a service member neither loses nor acquires a domicile/residence for purpose of taxation by reason of being absent or present in a tax jurisdiction solely in compliance with military orders. Georgia Department of Revenue NEW: DOR Regulations Military Spouses Residency Relief Act Georgia Department of Revenue Federal Law Georgia Law • DOMICILE means the • RESIDENT means a person permanent home to which who has a permanent home whenever such person is (in Georgia) to which absent, he or she has the whenever such person is intention of returning…also absent, he or she has the referred to as Home of intention of returning… Record Georgia Department of Revenue Taxation of Personal Property owned by Non-Georgia Resident Service member and/or Spouse • Exemption on GA vehicle registrations. – (see DOR Regulations) • Exemption applies to other personal property such as boats, airplanes and mobile homes. • Exemption DOES NOT APPLY to personal property used in connection with a business. Georgia Department of Revenue Taxation of Real Property owned by Service member and/or Spouse • Only a Georgia RESIDENT may be an applicant for Homestead exemption . • Real Property remains taxable to the county, state, and city in which it is located. Georgia Department of Revenue Chapter III Constitution of Georgia Georgia Department of Revenue GA Constitution: Section II Exemptions from Ad Valorem Taxation Paragraph II. Exemptions from taxation – Approved by two thirds of House and Senate – Majority of voters in a referendum Paragraph III. Exemptions authorized locally – Freeport inventory exemptions Paragraph V. Disabled Veterans Homestead – $50,000 Georgia Department of Revenue Chapter IV Income Verification Georgia Department of Revenue Income Terms • Federal Adjusted Gross Income – State Floating Exemption • Georgia Taxable Income – Retirement Income Exclusion • Gross Household Income – Deferred Tax • Net Georgia Income – Maximum social security calculation for seniors Georgia Department of Revenue Georgia Department of Revenue Georgia Department of Revenue Georgia Department of Revenue Georgia Department of Revenue Georgia Department of Revenue Chapter V State Homestead Exemption Georgia Department of Revenue 48-5-40… APPLICANT means …. 1. A married individual living with his or her spouse; 2. An individual who is unmarried but who permanently maintains a home for the benefit of one or more other individuals who are related to such individual or dependent wholly or partially upon such individual for support; 3. An individual who is widowed having one or more children and maintaining a home occupied by himself or herself and the child or children; 4. A divorced individual living in a bona fide state of separation and having legal custody of one or more children, when the divorced individual owns and maintains a home for the child or children; or 5. An individual who is unmarried or is widowed and who permanently maintains a home owned and occupied by himself or herself; and Georgia Department of Revenue New: Masters vs. Dekalb Co. • Taxpayer – GA statute 48-5-40 violates equal protection and the uniform taxation clause of GA Constitution. Definition of applicant as a “married individual living which his or her spouse” denies thousands of Georgia husbands and wives the right to apply for homestead due to living arrangements. • County – Homestead exemption does not violate equal protection rights or uniform taxation. Law clearly states only one homestead may be allowed to husband and wife. Sandra and her husband are married under GA law and have never sought a divorce. Watch for GA Supreme Court Decision Georgia Department of Revenue 48-5-40…RESIDENT means… OCGA 40-5-1(15) “RESIDENT" means a person who has a permanent home or abode in Georgia to which, whenever such person is absent, he or she has the intention of returning. For the purposes of this chapter, there is a rebuttable presumption that the following person is a resident: (A) Any person who accepts employment or engages in any trade, profession, or occupation in Georgia or enters his or her children to be educated in the private or public schools of Georgia within ten days after the commencement of such employment or education; or (B) Any person who, except for infrequent, brief absences, has been present in the state for 30 or more days; provided, however, that no person shall be considered a resident for purposes of this chapter unless such person is either a United States citizen or an alien with legal authorization from the U.S. Immigration and Naturalization Service. Georgia Department of Revenue Georgia Department of Revenue 48-5-40…HOMESTEAD means… – the real property owned by and in possession of the applicant on January 1 – upon which the applicant resides Georgia Department of Revenue 48-5-40…HOMESTEAD includes… • The actual permanent place of residence … • Where the applicant holds bona fide fee title, an estate for life, or under any bona fide contract of purchase… • Where building is occupied primarily as a dwelling; • In the event a dwelling … is destroyed …shall continue to be classed as a homestead for a period of one ; Georgia Department of Revenue 48-5-40…HOMESTEAD includes… • The permanent place of residence of an individual in the armed forces...shall be construed to be actually occupied … when the family of the individual resides in the residence or when the family is forced to live elsewhere because of the individual's service in the armed forces; • 10. Absence of an individual from his residence because of duty in the armed forces shall not be considered as a waiver upon the part of the individual in applying for a homestead exemption…; Georgia Department of Revenue 48-5-40…HOMESTEAD includes… • The homestead exempted must be the legal residence and domicile of the applicant for all purposes whatever… • The deed … must be recorded … prior to filing the application ... • Absence of an individual from such individual's residence because of health reasons shall not in and of itself be considered as a waiver … if all other qualifications are otherwise met... Georgia Department of Revenue 48-5-44… Homestead occupied by owner… • The homestead shall be exempted from all ad valorem taxation for state, county, and school… – Does not include taxes levied • by municipalities • by municipalities for school purposes and • to pay interest on and to retire bonded indebtedness, – exemption shall not exceed $2,000.00. The value of property in excess of $2,000.00 shall remain subject to taxation – The exemption shall be claimed in the manner prescribed by law. Georgia Department of Revenue 48-5-45. Application … • An applicant shall file a written application… – at any time during the calendar year subsequent to the property becoming the primary residence – up to and including date for the closing of the books. • Failure to file the application shall constitute a waiver… • The exemption shall automatically be renewed from year to year. • It is unlawful for any person to solicit for the purpose of filing on behalf of such other person if a fee is charged. A violation of this subsection shall be a misdemeanor. Georgia Department of Revenue 48-5-46. Procedure for application. • The application shall be furnished by the commissioner … • The application shall include: – A statement of ownership, – A description of the property, – When and from whom the property was acquired, – The kind of title held, and amount of liens, – Approval of the application by the official so authorized. • An oath shall be administered … • The tax commissioner shall receive applications for homestead exemption and shall file and preserve the applications. Georgia Department of Revenue 48-5-47. Homestead…individuals 65 +. • Each person 65 years of age or over is granted an exemption from all state and county ad valorem taxes in the amount of $4,000.00 … – if net income does not exceed $10,000.00 … – owner shall file an affidavit • age • amount of income • such additional information relative to such exemption. Georgia Department of Revenue 48-5-47.1… individuals 62+, income < $30,000 • A senior citizen is granted an exemption in an amount equal to the amount of assessed value that exceeds the value for the immediately preceding tax year when first granted – "Income" means federal adjusted gross income. – "Senior citizen" means 62 years of age Georgia Department of Revenue 48-5-48… qualified disabled veteran… 1. Wartime veteran, discharged under honorable conditions, totally and permanently disabled and 100 percent service connected disability; Letter from VA stating the qualifying disability 2. American veteran of any war/armed conflict that is disabled due to: • the loss/loss of use of both lower extremities • due to blindness in both eyes, together with the loss or loss of use of one lower extremity; • or due to the loss or loss of use of one lower extremity together with residuals of organic disease or injury which so affect the functions of balance or propulsion as to preclude locomotion without resort to a wheelchair. Letter from VA stating the qualifying disability. Georgia Department of Revenue 3. Disabled veteran who qualifies, as provided for by Article VII, Section I, Paragraph IV of the Constitution of Georgia of 1976; DD form 214 along with a letter from a doctor 4. American veteran who is disabled due to loss or loss of use of one lower extremity together with the loss or loss of use of one upper extremity which so affects the functions of balance or propulsion as to preclude locomotion without the aid of braces, crutches, canes, or a wheelchair; Letter from a doctor 5. Veteran becoming eligible for assistance in acquiring housing under Section 2101 of Title 38 of the United States Code … Letter from the VA stating the eligibility for such housing assistance Georgia Department of Revenue 48-5-48.3. Homestead … seniors… "Homestead" means additional qualification that it shall include only the primary residence and not more than ten contiguous acres . "Senior citizen" means a person who is 65 years of age on January 1 of the year in which application for the exemption is made. State tax only Georgia Department of Revenue 48-5-48.4. Homestead …for unremarried surviving spouse of peace officer or firefighter killed in the line of duty. • The un-remarried surviving spouse of a peace officer or firefighter who was killed in the line of duty is granted an exemption on that person's homestead from all ad valorem taxes for the full value of that homestead. • "Ad valorem taxes" means all state, county, school, municipal, and independent school taxes including taxes to retire bonded indebtedness. Georgia Department of Revenue 48-5-49. Determination of eligibility …appeal. • The official receiving an application for homestead exemption shall determine the eligibility of the applicant to claim the exemption and whether the application is approved or disapproved, he shall then transfer the application to the county board of tax assessors for final determination by the board as to eligibility and value as provided by law. • The applicant shall have the right of appeal from the decision of the board of assessors to the county board of equalization as provided in Code Section 48-5-311. Georgia Department of Revenue 48-5-51. Fraudulent claim of homestead … • It shall be unlawful for any person to: – Make any fraudulent claim for exemption – Make any false representation of a material fact in support of a claim – Assist another knowingly in the preparation of any false or fraudulent claim for exemption, or enter into any collusion with another by the execution of a fictitious deed, deed of trust, mortgage, or otherwise. • Any person who violates this Code section shall be guilty of a misdemeanor. • In addition, the property shall be taxed in an amount double the tax otherwise to be paid. Georgia Department of Revenue 48-5-52. Exemption/educational purposes/62+ • An applicant who is 62 years of age, whose net income does not exceed $10,000.00 for the preceding tax year, is exempted from ad valorem taxes levied by any independent school and county school, including school bond … • The exemption shall not exceed $10,000.00 . The value in excess of such exempted amount shall remain subject to taxation. • The exemption shall not be granted unless an affidavit, prepared upon forms prescribed by the commissioner, is filed with the tax commissioner… – Age of the owner on January 1; – Total amount of income all sources during the immediately preceding calendar year; Georgia Department of Revenue 48-5-52.1. Exemption … unremarried surviving spouses of U.S. service members killed in action. • An un-remarried surviving spouse of a member of the US armed forces that has been killed in or has died as a result of war, who is a citizen and resident of Georgia shall be granted a homestead exemption for state, county, municipal, and school purposes – the maximum amount which may be granted is $50,000 • In order to qualify, the un-remarried surviving spouse shall furnish to the tax commissioner of the county of residence documents from the Secretary of Defense Georgia Department of Revenue 48-5-53 Falsification of Information … Georgia Department of Revenue 48-5-54… homestead … multiple titleholders … administrators, executors, or trustees. • Homestead shall apply where legal title is vested in one or more titleholders … – In such instances, exemptions shall be granted if claimed by one or more of the owners actually residing on such property. • Homestead shall apply where the title is vested in an administrator, executor, or trustee… – if one or more of the heirs or beneficiaries residing on the property claims the exemption in the manner provided by law. • Failure to file an application shall not be cause for waiver that arises because of an administrator's or executor's deed transferring the property to a surviving spouse. – In such instances, the board of tax assessors shall give notice of its intent to deny the exemption, and the surviving spouse may make application for the amount of homestead exemption within 30 days from the date of the notice by the board of tax assessors. – In the case of a base year assessed value homestead exemption, as long as the surviving spouse makes proper application, the exemption shall be continued with the same base year assessed value as had been established for the deceased spouse, unless otherwise provided by local law. Georgia Department of Revenue • Homestead Application Georgia Department of Revenue • Homestead Grid Georgia Department of Revenue Chapter VI Local Homestead Georgia Department of Revenue Georgia Department of Revenue Georgia Department of Revenue Chapter VII Tax Deferral Georgia Department of Revenue The Tax Deferral Act for the Elderly • Age 62 or older • Gross Household Income $15,000 or less • Deferral allowed on $50,000 assessed value • Insurance policy with loss payable clause to tax commissioner • No Deferral: – Liens and taxes total 85% of value on digest – Bond levy Georgia Department of Revenue Chapter VIII Other Exemptions and Exempt Property Georgia Department of Revenue Miscellaneous Exempt Statutes • Hospital Authority: OCGA 31-7-72 – Hospital authorities are granted the same exemptions and exclusions from taxes as are now granted to cities and counties for the operation of facilities similar to facilities to be operated by hospital authorities … – Exception: • Real property, where 50 percent or more of the floor space (excluding halls, corridors, and public spaces) is rented or leased by an entity engaged in for- profit business, owned by a hospital authority which is located in a county having a population of 50,000 and which operates a hospital containing more than 100 beds, shall be subject to all state, county, and municipal ad valorem taxes in the same manner as other private property. Georgia Department of Revenue Miscellaneous Exempt Statutes • Enterprise Zone: OCGA 36-88-8 – The governing body of a local government creating an enterprise zone shall include in the creating ordinance a provision to exempt qualifying business and service enterprises from state, county, and municipal ad valorem taxes not to exceed the following schedule … • 100% exempt for the first five years; • 80% exempt for the next two years; • 60% exempt for the next year; • 40% exempt for the next year; and • 20% exempt for the last year Georgia Department of Revenue Miscellaneous Exempt Statutes • Computer Software: OCGA 48-1-8 – Computer software means any program which is used or intended to cause computers or related equipment, to perform a set of tasks… includes operating programs and documentation. • Except as otherwise provided … computer software shall constitute personal property only to the extent of the value of the un-mounted or un-installed medium on which it is stored. – Copies of computer software held as inventory ready for sale at retail by one who is a dealer shall remain subject to ad valorem taxation. Georgia Department of Revenue Miscellaneous Exempt Statutes • Foreign Merchandise: O.C.G.A. 48-5-5 – Foreign merchandise in transit shall acquire no situs – Foreign merchandise in transit means personal property which has been or will be moved by waterborne commerce through any port located in GA • Port of Savannah • Port of Brunswick • Port Bainbridge • Port Columbus Georgia Department of Revenue Miscellaneous Exempt Statutes • Timber: O.C.G.A. 48-5-7.5 – Standing timber shall be assessed for ad valorem taxation only once and such assessment shall be made following its harvest or sale … – Timber shall be subject to ad valorem taxation notwithstanding the fact that the underlying land is exempt from taxation… The State of Georgia and its political subdivisions remain exempt from the taxation on timber. ….This tax exemption is "necessary in order that the functions of government be not unduly impeded, and that the government be not forced into the inconsistency of taxing itself in order to raise money to pay over to itself. . . ." Georgia Department of Revenue Miscellaneous Exempt Statutes • Farm Products: OCGA 48-5-41.1 – The following property is exempt from ad valorem property taxes : • Farm products grown in GA and remaining in the hands of the producer during the one year after initial production; • All qualified farm products grown in this state and remaining in the hands of a family owned qualified farm products producer; – Still in their natural and unprocessed condition, unless processed solely for further use in the production of other qualified farm products; and – Not held for direct retail sale by someone other than the producer. • Farm tractors, combines, and other farm equipment other than motor vehicles, 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. Georgia Department of Revenue Miscellaneous Exempt Statutes • Personalty: OCGA 48-5-42 – All personal clothing and effects, household furniture, furnishings, equipment, appliances, and other personal property used within the home, if not held for sale, rental, or other commercial use, shall be exempt from all ad valorem taxation. – All tools and implements of trade of manual laborers shall be exempt from all ad valorem taxation in an amount not to exceed $2,500.00 in actual value – All domestic animals shall be exempt from all ad valorem taxation in an amount not to exceed $300.00 in actual value. Georgia Department of Revenue Miscellaneous Exempt Statutes • Personal Property < $7,500: OCGA 48-5-42.1 – All tangible personal property of a taxpayer, except motor vehicles, trailers, and mobile homes, shall be exempt from all ad valorem taxation if the actual fair market value of the total amount of taxable tangible personal property owned by the taxpayer within the county, as determined by the board of tax assessors, does not exceed $7,500.00. Georgia Department of Revenue Miscellaneous Exempt Statutes • Fertilizer: OCGA 48-5-43 – Consumers of commercial fertilizers shall not be required to return for taxation any commercial fertilizers or any manures commonly used by farmers and others if the land upon which the fertilizer is to be used has been properly returned for taxation. Georgia Department of Revenue Miscellaneous Exempt Statutes • Freeport Inventory: OCGA 48-5-48.1 – The governing authority of any county or municipality wherein an exemption has been approved by the voters may, by appropriate resolution, exempt from taxation 20 percent, 40 percent, 60 percent, 80 percent or 100 percent of qualified inventory. NEW – HB1082 creates a Level 1 and Level 2 Freeport Georgia Department of Revenue Miscellaneous Exempt Statutes • Equipment Used to Perform State Contract: OCGA 50-17-29 – No city, county, municipality, or other political subdivision shall impose any tax, assessment, levy, license fee, or other fee upon any contractors as a condition to or result of the performance of a contract, work, or services in connection with any project being constructed, repaired, remodeled, enlarged, serviced, or destroyed for, or on behalf of, the state or any of its agencies, boards, bureaus, commissions, and authorities… Georgia Department of Revenue Motor Vehicle Exempt Statutes • Driver Education: 48-5-470 • Transporting Persons w/ Disabilities: 48-5-470.1 • Van/Bus Owned by Religious: 48-5-470.2 • Owned by Dealer: 48-5-472 • Disabled Veteran: 48-5-478 • Prisoner of War: 48-5-478.1 • Purple Heart Citation: 48-5-478.2 • Medal of Honor: 48-5-478.3 • Veteran Organization: 48-5-478.4 • Self Propelled Farm Equipment Owned by Dealer: 48-5-504 • Aircraft Owned by Dealer: 48-5-504.20 • NEW: Watercraft Owned by Dealer: 48-5-504.40 • NEW: Heavy Duty Equipment Dealer: 48-5-505 Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 NEW: Public Property 1. All public property is exempt - except real property owned by a political subdivision which is situated outside the territorial limits of that political subdivision unless… – Real property developed by grading or improvements to at least 25 percent of the total land area and facilities are located on the property which are actively used for a public purpose; – Real property is three hundred acres or less in area; – Real property is located inside a county embracing a municipality that owns such property; – Real property has been designated and used as a watershed by the US Soil & Water Cons Service 2. Property owned by and used exclusively as the general state headquarters of a nonprofit corporation organized for the primary purpose of encouraging cooperation between parents and teachers to promote the education and welfare of children … shall be considered to be an extension of the public schools … 3. Property which is held by a Georgia nonprofit corporation whose income is exempt from federal income tax pursuant to Section 115 of the Internal Revenue Code of 1986 and when such property is held exclusively for the benefit of a county, municipality, or school district shall be considered to be exempt public property. 4. NEW: HB1186 : Property that qualifies as a public-private transportation project under code 32-2-80 which is owned or leased by the state or other government agency and which is developed, operated or held by a private partner shall be considered to be public property. Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Places of Burial • All places of burial are exempt from all ad valorem taxation. Attorney General opinion regarding for-profit corporate cemetery … Property utilized as a cemetery or place of burial is exempt from taxation without regard for the fact that the property is owned by either a public or private corporation or by individuals, collectively or severally Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Places of Religious Worship 1. All places of religious worship; 2. All property owned by and operated exclusively as a church, an association or convention of churches, a mission agency, or as an auxiliary of a church, convention or association, when such entity is qualified as an exempt religious organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and such property is used in a manner consistent with such exemption under Section 501(c)(3) of the Internal Revenue Code of 1986 are exempt from ad valorem taxation. Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Single-Family Residence Owned by Religious Group • All property owned by religious groups and used only for single- family residences when no income is derived from the property is exempt from ad valorem taxation. Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 NEW: Purely Public Charity • All institutions of purely public charity are exempt for ad valorem taxation. 48-5-40. (5) "Institutions of purely public charity," "nonprofit hospitals," and "hospitals not operated for the purpose of private or corporate profit and income" mean such institutions or hospitals which may have incidental income from paying patients when the income, if any, is devoted exclusively to the charitable purpose of caring for patients who are unable to pay and to maintaining, operating, and improving the facilities of such institutions and hospitals, and when the income is not directly or indirectly for distribution to shareholders in corporations owning such property or to other owners of such property. York Rite Bodies …vs …..Chatham County …Three Prong Test 1. Owner must be entity devoted entirely to charitable pursuits 2. Charitable pursuits must be for benefit of public 3. Use of property must be exclusively devoted to those charitable pursuits Court of Appeals: Athens-Clarke County …vs Nucci Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Non-Profit Hospital • All property of nonprofit hospitals used in connection with their operation when the hospitals have no stockholders, have no income or profit which is distributed to or for the benefit of any private person, and are subject to the laws of this state regulating nonprofit or charitable corporations are exempt from taxation. • Property exempted shall not include property of a nonprofit hospital held primarily for investment purposes or used for purposes unrelated to: – Providing of patient care; – Providing and delivery of health care services; or – Training and education of physicians, nurses, and other health care personnel. . Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Colleges, Academy, Seminary of Learning • All buildings erected for and used as a college, incorporated academy, or other seminary of learning are exempt from ad valorem taxation when they are open to the general public. Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Funds or Property Held as Endowments • All funds or property held or used as endowment by colleges, nonprofit hospitals, incorporated academies, or other seminaries of learning when the funds or property are not invested in real estate are exempt from taxation. Public Library • All real and personal property used by or connected with any public library is exempt from ad valorem taxation. Books, Paintings, Statuary Kept in Public Hall • All books, philosophical apparatus, paintings, and statuary of any company or association which are kept in a public hall and which are not held as merchandise or for purposes of sale or gain are exempt from ad valorem taxation. Air and Water Pollution Control Equipment • All property used in or which is a part of any facility which has been installed or constructed at any time for the primary purpose of eliminating or reducing air or water pollution if such facilities have been certified by the Department of Natural Resources as necessary and adequate for the purposes intended is exempt from ad valorem taxation. Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Non-Profit Home for the Aged • Property of a nonprofit home for the aged used in connection with its operation when the home for the aged has no stockholders and no income or profit which is distributed to or for the benefit of any private person and when the home is qualified as an exempt organization under the United States Internal Revenue Code, Section 501(c)(3), as amended, and Code Section 48-7-25, and is subject to the laws of this state regulating nonprofit and charitable corporations; is exempt from ad valorem taxation. • Property exempted shall not include property of a home for the aged held primarily for investment purposes or used for purposes unrelated to the providing of residential or health care to the aged; For purposes of this paragraph, indirect ownership of such home for the aged through a limited liability company that is fully owned by such exempt organization shall be considered direct ownership; Non-Profit Home for the Mentally Disabled • All property of any nonprofit home for the mentally disabled used in connection with its operation when the home for the mentally disabled has no stockholders and no income or profit which is distributed to or for the benefit of any private person and when the home is qualified as an exempt organization under the United States Internal Revenue Code of 1954, Section 501(c)(3), as amended, and Code Section 48-7-25, and is subject to the laws of this state regulating nonprofit and charitable corporations; is exempt from ad valorem taxation. • Property exempted shall not include property of a home for the mentally disabled held primarily for investment purposes or used for purposes unrelated to the providing of residential or health care to the mentally disabled; . Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Headquarters or Post Home of Veterans Organization 1. Property which is owned by and used exclusively as the headquarters, post home, or similar facility of a veterans organization is exempt from ad valorem taxation when the "veterans organization" has been chartered by the Congress of the United States which is exempt from federal income taxes and only if such organization is a post or organization of past or present members of the armed forces of the United States organized in the State of Georgia with at least 75 percent of the members of which are past or present members of the armed forces of the United States, and where no part of the net earnings of which inures to the benefit of any private shareholder or individual. 2. Property which is owned by and used exclusively by any veterans organization which is qualified as a nonprofit organization under Section 501(c)(3) of the Internal Revenue Code of 1986 is exempt from ad valorem taxation when the entity has been organized for the purpose of refurbishing and operating historic military aircraft acquired from the federal government and other sources, making such aircraft airworthy, and putting such aircraft on display to the public for educational purposes. Georgia Department of Revenue Property Exempt Under O.C.G.A. 48-5-41 Historical Fraternal Benefit Association • Property that is owned by an historical fraternal benefit association and which is used exclusively for charitable, fraternal, and benevolent purposes is exempt from ad valorem taxation when "fraternal benefit association" means an organization qualified as an exempt organization under the United States Internal Revenue Code of 1954, Section 501(c)(10), as amended, where such organization has a representative form of government and a lodge system with a ritualistic form of work for the meeting of its chapters or other subordinate bodies and whose founding organization received its charter from the General Assembly of Georgia prior to January 1, 1880.