HB66: HB66 Ad valorem tax; expand definition of rental motor vehicle

As introduced, HB 66 dealt with the ad valorem tax definition of a rental motor vehicle. The version reflected in this text is a Senate Finance Committee substitute that replaces that subject entirely. It creates a new part of Georgia's homestead option sales tax law (O.C.G.A. Title 48, Chapter 8) called the 'Alternative Homestead Option Sales and Use Tax Act of 2026.' The substitute lets a county's governing authority ask voters, in a joint referendum with a required local Act, to approve a 1 percent sales and use tax within a special tax district that matches the county's boundaries. Money raised would fund road and other capital outlay projects and pay for a homestead exemption that offsets county property taxes on primary residences. The tax could not be levied where a similar tax already exists, would run for ten years unless renewed, and counties would have to publicly report each year how much was collected and how much homestead value was reduced.

• Creates a new 'Alternative Homestead Option Sales and Use Tax Act of 2026' allowing counties to levy a 1 percent local sales and use tax within a special tax district matching the county's borders.
• Requires voter approval through a joint referendum tied to a separate local Act creating the homestead property tax exemption funded by the new tax.
• Directs the money raised to be split between capital outlay projects (mainly road improvements for counties) and a homestead exemption that reduces county property taxes on primary residences.
• Sets the tax to expire automatically ten years after it starts being collected unless voters approve it again.
• Bars a county from levying this new tax in a special district where another similar local sales tax (under Article 2 of the same chapter) is already in effect.
• Requires counties to post an annual public report on tax collections and homestead value reductions and send it to local legislators.

County governments and their voters, existing and newly incorporated municipalities within those counties, homeowners who qualify for the homestead exemption, retail businesses and consumers who would pay the added sales tax, and the state revenue commissioner, who would administer and collect the tax.

If adopted by a county and its voters, the change would shift some of the tax burden from property taxes to sales taxes, giving homeowners a bigger break on their tax bills while funding road projects through a new local sales tax that shoppers would pay at checkout.

• New Code Section 48-8-109.25 names the act and defines terms like 'homestead,' 'existing municipality,' and 'qualified municipality.'
• Section 48-8-109.26 authorizes a 1 percent sales and use tax within each county's special tax district, generally following existing sales tax rules, with a special rate for motor fuel purchases.
• The tax requires a joint referendum: voters must approve both the sales tax and a related local Act creating the homestead exemption, or neither takes effect.
• Section 48-8-109.27 sets how proceeds are divided: a capped share for capital projects (with road-only spending for county-run projects) and the remainder for the homestead exemption, with any leftover used to roll back county tax rates.
• The tax and its exemption terminate ten years after first collection unless renewed through the same referendum process.
• Section 48-8-109.28 addresses tax credits for property already taxed elsewhere and exempts certain construction materials purchased under contracts bid before the tax's approval.
• Section 2 repeals all conflicting state laws.

1. 2026-03-31Senate Tabled (Senate)
2. 2026-03-10Senate Committee Favorably Reported By Substitute (Senate)
3. 2026-01-12Senate Recommitted (Senate)
4. 2026-01-12Senate Taken from Table (Senate)
5. 2025-04-02Senate Tabled (Senate)
6. 2025-04-02Senate Engrossed (Senate)
7. 2025-03-28Senate Read Second Time (Senate)
8. 2025-03-28Senate Committee Favorably Reported By Substitute (Senate)

• Ron Stephens (R, HD-164)Primary sponsor
• Tim Fleming (R, HD-114)
• John Albers (R, SD-056)

1. PassedHouse voteFebruary 28, 2025

   164 yea, 2 nay (5 not voting, 9 absent)

   Passage: House Vote #117

2. PassedSenate voteApril 2, 2025

   31 yea, 24 nay (0 not voting, 1 absent)

   Motion To Engross: Sb 214, Hb 66, Hb 79, Hb 129, Hb 134, Hb 141, Hb 370, Hb 397, Hb 445, Hb 463, Hb 532, Hb 586, Hb 652: Senate Vote #383

3. PassedSenate voteMarch 31, 2026

   39 yea, 10 nay (2 not voting, 3 absent)

   Motion To Table Remaining Legislation On The Rules Calendar: Senate Vote #912

• property taxes
• sales tax
• homestead exemption
• local government finance
• county referendums