HB 1047: Revenue and taxation; water and sewer projects and costs tax; revise definition of the term "municipality"

Georgia law allows certain municipalities to levy a special tax to pay for water and sewer projects and costs (O.C.G.A. § 48-8-200). Currently, only a municipality with an average wastewater flow of at least 85 million gallons per day, or one that connects its sewer system to such a municipality, counts as a 'municipality' eligible under this law. This bill would remove that wastewater-flow test entirely. Instead, it would define 'municipality' as any 'qualified municipality' as that term is already defined elsewhere in Georgia tax law (O.C.G.A. § 48-8-110), plus any consolidated government formed by merging a county with one or more cities. The bill does not set an effective date beyond the standard process, and it repeals any conflicting laws.

• Removes the current 85-million-gallon-per-day wastewater flow requirement used to decide which municipalities can use the water and sewer projects tax.
• Redefines 'municipality' under this tax law to mean any 'qualified municipality' as defined in a separate section of Georgia tax law (O.C.G.A. § 48-8-110).
• Adds consolidated governments, meaning a merged county and city government, to the list of entities that count as a municipality under this tax provision.
• Repeals any existing laws that conflict with this new definition.

Georgia municipalities that levy or want to levy the water and sewer projects and costs tax, especially smaller or mid-sized cities that could not meet the old 85-million-gallon wastewater threshold, and consolidated city-county governments that would now explicitly qualify.

By dropping the wastewater volume test, more Georgia cities and consolidated governments could become eligible to impose this special tax to fund water and sewer infrastructure, potentially expanding which local governments can raise revenue this way for pipes, treatment plants, and related projects.

• Section 1 amends O.C.G.A. § 48-8-200(3) to strike the old definition based on wastewater flow of at least 85 million gallons per day.
• Section 1 replaces it with a definition tying eligibility to 'qualified municipality' status under O.C.G.A. § 48-8-110.
• Section 1 also adds any consolidated government formed by merging a county and one or more municipalities to the eligible category.
• Section 2 repeals any conflicting laws, a standard provision with no substantive effect beyond this bill's changes.

1. 2026-01-29House Second Readers (House)
2. 2026-01-28House First Readers (House)
3. 2026-01-27House Hopper (House)

• Dale Washburn (R, HD-144)Primary sponsor
• Robert Dickey (R, HD-134)
• Kasey Carpenter (R, HD-004)
• Brian Prince (D, HD-132)
• Spencer Frye (D, HD-122)
• Rick Jasperse (R, HD-011)

• water and sewer taxes
• municipal government
• local government finance
• infrastructure funding