HB737: HB737 Haralson County; levy an excise tax

Georgia law lets counties levy a hotel or motel excise tax on rooms and lodging rented to the public. This bill authorizes Haralson County's governing authority to levy that tax at a rate of up to 8 percent, higher than the standard 5 percent rate, under the special provision in state law (O.C.G.A. § 48-13-51(b)) that allows higher local hotel taxes when tied to tourism spending commitments. The bill notes that Haralson County's government already adopted an ordinance on January 27, 2025 setting the tax rate and describing which tourism projects the money would fund. Under the bill's terms, at least 50 percent of the revenue collected above what a 5 percent tax would generate must go to a tourism marketing organization for promoting tourism, conventions, and trade shows. The rest of that excess revenue must be spent on tourism product development. The bill repeals conflicting laws.

• Authorizes Haralson County's governing authority to levy a hotel and motel excise tax at a rate of up to 8 percent, above the standard 5 percent cap.
• Ties the higher tax rate to a local ordinance the county already adopted on January 27, 2025 that spells out the tax rate and tourism projects.
• Requires at least 50 percent of the revenue collected above the 5 percent rate to go toward tourism, convention, and trade show promotion through a designated marketing organization.
• Directs the remaining excess revenue toward tourism product development projects.
• Repeals any state laws that conflict with this authorization.

Haralson County's government, which gains authority to raise the tax; hotels, motels, inns, campgrounds, and similar lodging businesses that collect the tax from guests; travelers who pay higher room charges; and the county's tourism marketing organization, which would receive a share of the funds.

Visitors staying at Haralson County lodging could pay a higher room tax, up to 8 percent instead of 5 percent. The added revenue would fund local tourism marketing and development projects rather than going into the county's general budget, potentially affecting how the county grows its tourism economy.

• Section 1 authorizes Haralson County to levy the excise tax at up to 8 percent under O.C.G.A. § 48-13-51(b), applying to hotels, motels, inns, lodges, tourist camps, cabins, and campgrounds.
• Section 2 notes the tax authorization follows a county ordinance adopted January 27, 2025 that sets the rate and identifies tourism projects and allocation of proceeds.
• Section 3(1) requires at least 50 percent of revenue collected above the 5 percent baseline to fund tourism, convention, and trade show promotion through a designated organization.
• Section 3(2) directs the remaining excess revenue to tourism product development.
• Section 4 repeals conflicting laws.

1. 2025-05-13Effective Date 2025-05-13
2. 2025-05-13Act 163
3. 2025-05-13House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-27Senate Passed/Adopted (Senate)
6. 2025-03-27Senate Committee Favorably Reported (Senate)
7. 2025-03-20Senate Read and Referred (Senate)
8. 2025-03-18House Passed/Adopted (House)

• Tyler Smith (R, HD-018)Primary sponsor

1. PassedHouse voteMarch 18, 2025

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

   Local Calendar : House Vote #279

2. PassedSenate voteMarch 27, 2025

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

   Local Consent Calendar: Senate Vote #291

• hotel motel tax
• Haralson County
• tourism funding
• local government taxes