HB534: HB534 Fairburn, City of; levy an excise tax

Georgia law lets cities levy an excise tax on hotel and motel rooms, but caps the rate unless the state legislature grants special authority. This bill grants that authority to the City of Fairburn, letting its governing authority levy the tax at a rate up to 8 percent on hotels, motels, inns, campgrounds, and similar lodging businesses within the city. The bill follows a January 13, 2025 resolution passed by Fairburn's mayor and council that set the specific tax rate and spelled out how the extra money would be used. Under the bill, at least half of the revenue collected above what a 5 percent tax would generate must go to tourism, convention, and trade show promotion through the city's designated marketing organization. The rest of that excess revenue must be spent on tourism product development. The bill repeals any conflicting laws.

• Authorizes the City of Fairburn to levy a hotel and motel excise tax at a rate of up to 8 percent, higher than the standard state cap.
• Ties the increased tax authority to a January 13, 2025 city resolution that set the rate and spending plan.
• Requires at least 50 percent of revenue collected above the 5 percent baseline rate to fund tourism, convention, and trade show promotion.
• Directs any remaining excess revenue not spent on promotion to be used for tourism product development.
• Repeals any existing state laws that conflict with this new authorization.

Hotel, motel, inn, lodge, tourist camp, and campground operators in Fairburn who collect the tax from guests; travelers and visitors who pay higher lodging costs; the City of Fairburn's government; and the destination marketing organization that receives tourism promotion funds.

Fairburn would be able to collect more lodging tax revenue than the standard state cap allows, giving the city more money for tourism marketing and development projects. Visitors staying in Fairburn hotels and motels would pay a higher tax rate on their rooms, up to 8 percent.

• Section 1 authorizes Fairburn to levy the excise tax at up to 8 percent under O.C.G.A. § 48-13-51(b), covering hotels, motels, inns, lodges, tourist camps, cabins, and campgrounds.
• Section 2 notes the tax authority follows a January 13, 2025 city resolution setting the rate, projects, and allocation of proceeds.
• Section 3(1) requires at least 50 percent of revenue collected above the amount a 5 percent rate would generate to fund tourism, convention, and trade show promotion.
• Section 3(2) requires the remaining excess revenue not used for promotion to be spent on tourism product development.
• Section 4 repeals conflicting laws.

1. 2025-05-13Effective Date 2025-05-13
2. 2025-05-13Act 146
3. 2025-05-13House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-13Senate Passed/Adopted (Senate)
6. 2025-03-13Senate Committee Favorably Reported (Senate)
7. 2025-03-06Senate Read and Referred (Senate)
8. 2025-03-04House Passed/Adopted (House)

• Derrick Jackson (D, HD-068)Primary sponsor
• Lydia Glaize (D, HD-067)

1. PassedHouse voteMarch 4, 2025

   172 yea, 0 nay (6 not voting, 2 absent)

   Local Calendar : House Vote #148

2. PassedSenate voteMarch 13, 2025

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

   Local Consent Calendar: Senate Vote #229

• hotel motel tax
• Fairburn city government
• tourism funding
• local taxes