HB165: HB165 Income tax credit; business enterprises for leased motor vehicles; repeal and reserve

Georgia currently exempts half the sales price of certain manufactured homes from sales tax, but only if the home is being converted into real property, meaning it's permanently set on land rather than treated as personal property. House Bill 165 rewrites that exemption in O.C.G.A. § 48-8-3(102). The bill keeps the 50 percent sales price exemption for manufactured homes that are installed and converted to real property within 30 days of the retail sale, and it defines what counts as a manufactured home (a chassis-built dwelling with plumbing, heating, air conditioning, electrical systems, an angled roof, and at least 650 square feet). It tightens enforcement: if the seller does not properly file a Certificate of Permanent Location within 30 days, the state can recover 1.5 times the exempted tax from the seller. It also blocks a home that received the exemption from later being converted back to personal property (getting a Certificate of Removal) unless the exempted tax is repaid. The exemption still does not apply to certain local or special-purpose sales taxes, such as those authorized for MARTA. The changes take effect July 1, 2026.

• Keeps a 50 percent sales tax exemption on manufactured homes that are installed and converted to real property (permanently attached to land) within 30 days of sale.
• Defines 'manufactured home' in the tax code as a chassis-built dwelling that is transportable, has full utility systems, an angled roof, and at least 650 square feet.
• Lets the state tax commissioner collect 1.5 times the exempted tax from a seller who fails to file the required Certificate of Permanent Location within 30 days.
• Bars a home that got the exemption from being converted back to personal property (via a Certificate of Removal) unless the exempted tax amount is repaid.
• Excludes certain local and special-purpose sales taxes, including MARTA's tax, from the exemption.
• Sets the effective date as July 1, 2026, and repeals conflicting laws.

Manufactured home buyers and sellers in Georgia, dealers who sell manufactured homes, county clerks of superior court who file Certificates of Permanent Location, and the Georgia Department of Revenue, which administers and enforces the exemption and any tax recovery.

Buyers of qualifying manufactured homes would keep a sales tax discount, but sellers face a real financial penalty, 1.5 times the exempted tax, if they miss the 30-day filing deadline. Homeowners also could not undo the real-property conversion later without repaying the tax break.

• Section 1 revises O.C.G.A. § 48-8-3(102)(A), keeping the 50 percent sales price exemption tied to conversion to real property within 30 days of sale.
• Section 1 adds a definition of 'manufactured home' requiring specific size, construction, and utility system features.
• Section 1 requires the seller to file a Certificate of Permanent Location within 30 days or face recovery of 1.5 times the exempted tax by the commissioner.
• Section 1 prohibits reverting an exempted manufactured home to personal property status unless the exempted tax is repaid.
• Section 1 continues to exclude certain local sales taxes, including the MARTA tax, from the exemption.
• Section 2 sets the effective date as July 1, 2026.
• Section 3 repeals conflicting laws.

1. 2026-05-05Effective Date 2026-07-01
2. 2026-05-05Act 407
3. 2026-05-05House Date Signed by Governor (House)
4. 2026-04-10House Sent to Governor (House)
5. 2026-03-31House Agreed Senate Amend or Sub (House)
6. 2026-03-19Senate Passed/Adopted By Substitute (Senate)
7. 2026-03-19Senate Third Read (Senate)
8. 2026-03-19Senate Engrossed (Senate)

• Lehman Franklin (R, HD-160)Primary sponsor
• Spencer Frye (D, HD-122)
• Al Williams (D, HD-168)
• William Werkheiser (R, HD-157)
• Mike Cameron (R, HD-001)
• Rick Townsend (R, HD-179)
• Chuck Hufstetler (R, SD-052)

1. PassedHouse voteMarch 3, 2025

   173 yea, 0 nay (2 not voting, 5 absent)

   Passage: House Vote #145

2. PassedSenate voteMarch 19, 2026

   32 yea, 20 nay (0 not voting, 2 absent)

   Motion To Engross: Senate Vote #746

3. PassedSenate voteMarch 19, 2026

   46 yea, 0 nay (4 not voting, 4 absent)

   Passage By Substitute: Senate Vote #751

4. PassedHouse voteMarch 31, 2026

   166 yea, 3 nay (2 not voting, 5 absent)

   Agree To Senate Substitute: House Vote #798

• manufactured homes
• sales tax exemption
• property conversion
• tax enforcement