HB140: HB140 End Local Taxation by Citation Act; enact

Some Georgia municipalities rely heavily on fines from traffic tickets and other citations, along with civil and criminal forfeiture proceeds, to fund their budgets. This bill, called the 'End Local Taxation by Citation Act,' would cap how much of that money a city can count in its yearly budget ordinance. Starting with fiscal years beginning on or after January 1, 2027, no more than 30 percent of a municipality's appropriated budget could come from fines or forfeitures. That cap drops to 25 percent for fiscal year 2028, 20 percent for fiscal year 2029, and 15 percent for fiscal year 2030 and beyond. Any fine or forfeiture money a city collects above the applicable cap would escheat (revert) to the state and must be sent to the Office of the State Treasurer within 30 days of the end of the municipality's fiscal year. The bill also states that these limits override any conflicting home rule powers cities otherwise have to set their own budgets and raise revenue.

• Caps the share of a municipal budget that can come from criminal or civil fines or forfeiture proceeds, starting at 30 percent for fiscal year 2027.
• Lowers that cap in steps: 25 percent for fiscal year 2028, 20 percent for fiscal year 2029, and 15 percent for fiscal year 2030 and after.
• Requires any fine or forfeiture revenue collected above the applicable cap to escheat (revert) to the state instead of staying with the municipality.
• Directs municipalities to transmit escheated funds to the Office of the State Treasurer within 30 days after the end of their fiscal year.
• Amends O.C.G.A. § 36-81-10 to state that these new limits override any conflicting home rule powers that let cities set their own budgets and revenue methods.
• Gives the short title 'End Local Taxation by Citation Act' to the law created by this bill.

Georgia municipalities and their city governments, especially those that rely on ticket and citation revenue for a large share of their budgets, along with municipal courts, local police departments that issue citations, and the state treasury, which would receive any excess fine revenue.

Cities that depend on fines and forfeitures for a significant part of their budget would need to find other funding sources or reduce citation-driven revenue collection as the cap tightens each year through 2030, while money collected beyond the cap would go to the state instead of local coffers.

• Section 1 gives the Act the short title 'End Local Taxation by Citation Act.'
• Section 2 revises O.C.G.A. § 36-81-10 to note that the article's protection of local revenue-raising and home rule powers does not apply where the new Code Section 36-81-12 provides otherwise.
• Section 3 adds new Code Section 36-81-12, setting phased-in caps on the percentage of a municipal budget that can come from fines or forfeiture proceeds: 30% (FY2027), 25% (FY2028), 20% (FY2029), and 15% (FY2030 and later).
• Section 3(b) requires any fine or forfeiture revenue collected above the applicable cap to escheat to the state and be transmitted to the Office of the State Treasurer within 30 days of the end of the municipality's fiscal year.
• Section 4 repeals all laws and parts of laws in conflict with the Act.

1. 2026-01-29House Committee Favorably Reported By Substitute (House)
2. 2025-04-04House Withdrawn, Recommitted (House)
3. 2025-02-13House Committee Favorably Reported By Substitute (House)
4. 2025-01-30House Second Readers (House)
5. 2025-01-29House First Readers (House)
6. 2025-01-28House Hopper (House)

• Joseph Gullett (R, HD-019)Primary sponsor
• David Jenkins (R, HD-136)
• Matt Barton (R, HD-005)
• Eddie Lumsden (R, HD-012)
• Steve Tarvin (R, HD-002)

• municipal budgets
• traffic citations and fines
• civil forfeiture
• local government revenue
• home rule