HB186: HB186 Revenue and taxation; eliminate title ad valorem tax fee requirement for certain inherited vehicles

HB 186 started as a bill about title taxes on inherited vehicles, but the version shown here is a Senate Finance Committee substitute that changes the subject entirely. It amends Georgia's sales and use tax law (O.C.G.A. § 48-8-3) to repeal the exemption that lets high-technology data centers and their customers avoid paying sales and use tax on qualifying equipment. Under the substitute, no new certificates of exemption for data centers could be issued once the law takes effect. However, any exemption certificate already issued before that date would keep working under the old rules, so existing data center operators would not immediately lose their tax break. The law would take effect as soon as the Governor signs it or it becomes law without his signature, and it repeals any conflicting laws.

• Repeals paragraph (68.1) of Georgia's sales and use tax code (O.C.G.A. § 48-8-3), which had exempted high-technology data center equipment from sales and use tax.
• Blocks the state from issuing any new data center sales tax exemption certificates after the law's effective date.
• Preserves the old exemption rules for any certificate issued before the effective date, letting existing certificate holders keep their tax break under prior law.
• Sets the effective date as the date the Governor signs the bill or it otherwise becomes law without his signature.

High-technology data centers operating in Georgia and their customers who currently hold or would have sought sales and use tax exemption certificates for data center equipment, as well as state revenue officials who administer the exemption program.

Data center operators that have not yet obtained an exemption certificate would lose access to this tax break going forward, while those who already hold one would keep it. This could affect the cost of building or expanding data centers in Georgia and the state's sales tax revenue.

• Section 1 repeals paragraph (68.1) of O.C.G.A. § 48-8-3, the sales and use tax exemption for high-technology data center equipment.
• Section 1 also enacts new language barring issuance of new exemption certificates under the old paragraph after the effective date.
• Section 1 grandfathers in certificates already issued, letting them continue under the exemption rules that existed before the repeal.
• Section 2 sets the effective date as the date of the Governor's approval or the date the bill becomes law without approval.
• Section 3 repeals any conflicting laws.

1. 2026-03-27Senate Committee Favorably Reported By Substitute (Senate)
2. 2026-01-12Senate Recommitted (Senate)
3. 2025-03-27Senate Read Second Time (Senate)
4. 2025-03-27Senate Committee Favorably Reported By Substitute (Senate)
5. 2025-03-04Senate Read and Referred (Senate)
6. 2025-03-03House Passed/Adopted (House)
7. 2025-03-03House Third Readers (House)
8. 2025-02-26House Committee Favorably Reported (House)

• Jordan Ridley (R, HD-022)Primary sponsor
• Jan Jones (R, HD-047)
• Jason Ridley (R, HD-006)
• Jaclyn Ford (R, HD-170)
• Bruce Williamson (R, HD-112)
• Rob Clifton (R, HD-131)
• Jason Anavitarte (R, SD-031)

1. PassedHouse voteMarch 3, 2025

   171 yea, 0 nay (6 not voting, 3 absent)

   Passage: House Vote #127

• sales tax
• data centers
• tax exemptions
• state revenue