---
title: HB 1129. Local government; designation of enterprise zones; provisions
collection: bills
id: 2025-2026/hb1129
cite_as: HB 1129, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1129
md_url: https://georgiacommons.org/bills/2025-2026/hb1129.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1129/text
source_url: https://www.legis.ga.gov/legislation/72683
date: 2026-05-11
status: passed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 1591
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1129.md?full=1
bill_number: HB 1129
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-11
last_action: Effective Date 2026-07-01
sponsors:
- Devan Seabaugh
- Matthew Gambill
- Will Wade
- Chuck Efstration
- Soo Hong
- Shaw Blackmon
- Bo Hatchett
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1129/2025
upstream_id: 2104417
summaries_model: claude-sonnet-5
topic_tags:
- enterprise zones
- local sales tax
- economic development
- redevelopment projects
- state tax exemptions
---
# HB 1129. Local government; designation of enterprise zones; provisions
## Text
House Bill 1129 (AS PASSED HOUSE AND SENATE)
By: Representatives Seabaugh of the 34th, Gambill of the 15th, Wade of the 9th, Efstration of
the 104th, Hong of the 103rd, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 88 of Title 36 of the Official Code of Georgia Annotated, relating to
enterprise zones, so as to provide that enterprise zones shall not qualify for exemption from
state sales and use tax; to provide for an exception; to provide for collection and assessment
of fees; to provide for the use of the principal of revenue bonds; to limit the number of
enterprise zones in urban redevelopment areas; to provide a sunset date; to make allowances
for enterprise zones in existence and those in the process of being approved prior to such
sunset date; to provide for related matters; to provide for an effective date and applicability;
to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 88 of Title 36 of the Official Code of Georgia Annotated, relating to enterprise
zones, is amended in Code Section 36-88-6, relating to criteria for enterprise zone, by
revising subsection (g) as follows:
"(g)(1) A nominated area under this subsection shall:
(A) Be included in an urban redevelopment area as defined in Code Section 36-61-2;
and
(B) Contain within its borders the site for a redevelopment project having a minimum
of $400 million in capital investment for the redevelopment of an area certified by the
commissioner to have been chronically underdeveloped for a period of 20 years or
more.
(2)(A) The commissioner of the department may designate a nominated area satisfying
Any nominated area meeting the criteria in paragraph (1) of this subsection may be
designated as an enterprise zone. Any redevelopment project used to qualify an area
for designation as an enterprise zone under this subsection shall, upon approval of such
designation, qualify for an exemption of any local sales and use tax levied by a local
governing body within the boundaries of such project.
(B) Any redevelopment project used to qualify an area for designation as an enterprise
zone under this subsection shall not, upon approval of such designation, qualify for an
exemption of any state sales and use tax levied by this state within the boundaries of
such project unless such exemption is approved by the Governor or his or her designee.
(3) Any variation in the sales price of goods and services within any redevelopment
project used to qualify an area for designation as an enterprise zone under this subsection
attributable to lease arrangements between a retailer and the owner of the project shall be
a permitted practice under Parts 1 and 2 of Article 15 of Chapter 1 of Title 10.
(4)(A) By resolution or ordinance, the local governing body designating and creating
that nominated an enterprise zone under this subsection may, after designation as an
enterprise zone by the commissioner of the department, assess and collect annual
enterprise zone infrastructure fees from each retailer that is a qualifying business or
service enterprise making sales transactions exempted from sales and use tax under
paragraph (2) of this subsection in an amount not to exceed, in aggregate, the amount
of sales and use tax on transactions of such retailer exempted under paragraph (2) of
this subsection, which fees may be pledged by such local governing body, directly or
indirectly, as security for revenue bonds issued for development or infrastructure within
the enterprise zone.
(B) The principal of the revenue bonds provided for under subparagraph (A) of this
paragraph shall not be used, directly or indirectly, to satisfy any obligation on or
otherwise provide a return of the capital investment contemplated by subparagraph (B)
of paragraph (1) of this subsection.
(5) No enterprise zone shall be designated under this subsection in a county in which
four enterprise zones under this subsection are wholly or partially located, regardless of
which local governing body or bodies nominated such existing enterprise zones under this
subsection.
(6) This subsection shall not apply to projects involving or related to casino gambling."
SECTION 2.
This Act shall become effective on July 1, 2026, and shall apply to enterprise zones
designated on or after such date.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 1129 changes how Georgia's largest enterprise zones work, ending automatic state sales tax breaks for big redevelopment projects and capping how many such zones a single county can have.
### Plain-language summary
Georgia law lets local governments create 'enterprise zones' that offer tax breaks to encourage big redevelopment projects, especially in areas that have been rundown for decades. This bill focuses on a specific type of enterprise zone tied to redevelopment projects worth at least $400 million in areas certified as chronically underdeveloped for 20 years or more.
Under current law, projects that qualify for one of these zones automatically get exempted from both local and state sales and use taxes. The bill changes that so the automatic exemption only covers local sales tax; the state sales tax exemption would now require sign-off from the Governor or the Governor's designee. It also lets local governments charge annual infrastructure fees to businesses benefiting from the tax break, limits how those fees and any bonds backed by them can be used, and caps the number of these zones in urban redevelopment areas to four per county. The changes take effect July 1, 2026, and apply to zones designated on or after that date, with the Department of Community Affairs' commissioner now formally approving new zone designations.
### What it does
- Removes the automatic exemption from state sales and use tax for qualifying enterprise zone redevelopment projects, requiring Governor approval instead.
- Keeps the exemption from local sales and use tax automatic for qualifying projects within these enterprise zones.
- Gives the commissioner of the Department of Community Affairs formal authority to designate nominated areas as enterprise zones rather than treating qualification as automatic.
- Allows local governments to charge annual infrastructure fees to qualifying businesses, capped at the amount of sales tax exempted, which can back revenue bonds for zone infrastructure.
- Bars the use of revenue bond principal to pay back or return the capital investment required to qualify for the zone.
- Limits the number of these large redevelopment enterprise zones to four per county, regardless of which local government created them.
### Who it affects
Local governments and urban redevelopment authorities that create enterprise zones, developers behind large redevelopment projects worth $400 million or more, retailers and businesses operating inside those zones, the Governor's office, and the Department of Community Affairs, which now formally approves zone designations.
### Why it matters
Big redevelopment projects in these zones would no longer automatically skip state sales tax, meaning the state keeps more revenue unless the Governor approves an exemption. Local governments also face a new four-zone-per-county limit, which could restrict future large-scale redevelopment tax incentives in already-active counties.
### Key provisions
- Section 1 revises O.C.G.A. § 36-88-6(g)(2) so the commissioner must designate a nominated area, rather than automatic qualification, before enterprise zone status applies.
- Section 1 adds § 36-88-6(g)(2)(B), removing automatic state sales and use tax exemption for zone projects unless the Governor or designee approves it.
- Section 1 adds § 36-88-6(g)(4), letting local governing bodies collect annual infrastructure fees from qualifying retailers after the commissioner designates the zone, capped at the amount of tax exempted.
- Section 1 adds § 36-88-6(g)(4)(B), prohibiting use of revenue bond principal to repay or return the capital investment required to qualify for the zone.
- Section 1 adds § 36-88-6(g)(5), capping these enterprise zones at four per county regardless of which local government nominated them.
- Section 1 retains the existing exclusion barring casino gambling projects from qualifying under this subsection.
- Section 2 sets the effective date as July 1, 2026, applying only to zones designated on or after that date.
## Status
- Status: Passed (2026-05-11)
- Last action: Effective Date 2026-07-01 (2026-05-11)
- Sponsors: Devan Seabaugh, Matthew Gambill, Will Wade, Chuck Efstration, Soo Hong, Shaw Blackmon, Bo Hatchett
- Official page: https://www.legis.ga.gov/legislation/72683
> The history, votes, and amendments (1,591 characters) are at https://georgiacommons.org/bills/2025-2026/hb1129.md?full=1