House Bill 1132 (COMMITTEE SUBSTITUTE)
By: Representatives Franklin of the 160th, Stephens of the 164th, Evans of the 57th, Jones of
the 25th, Crowe of the 118th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Part 1 of Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia
Annotated, relating to general provisions relative to state sales and use tax, so as to exempt
from state sales and use taxation materials used in construction, renovation, and rehabilitation
of affordable housing by purely public charities; to provide for requirements; to provide for
automatic repeal; to provide for related matters; to provide for an effective date; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Part 1 of Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated,
relating to general provisions relative to state sales and use tax, is amended by revising
paragraph (103) of Code Section 48-8-3, relating to exemptions, as follows:
"(103)(A) <ins>Notwithstanding any provision of Code Section 48-8-63 to the contrary,
sales of tangible personal property to a purely public charity used by such charity for
the construction, renovation, or rehabilitation of affordable housing on real property;
provided, however, that the exemption shall only apply to such personal property that
will remain on the real property permanently, and only if:
</ins>
<ins>(i) Such charity is exempt from taxation under Section 501(c)(3) of the federal
Internal Revenue Code;
(ii) Such real property is held exclusively for the purpose of constructing, renovating,
and rehabilitating single-family homes to be financed by such charity to individuals
purchasing their first home using loans that shall not bear interest;
(iii) Such individuals at the time of purchase shall have an income equal to or less
than 80 percent of the median income based on the maximum household income
limits for the county where the real property is located as established annually by the
United States Department of Housing and Urban Development; and
(iv) Such individuals shall reside in such homes as a primary residence and such
residence shall be subject to a covenant for at least 30 years that restricts the resale of
the home to a buyer who at the time of purchase has an income equal to or less than
80 percent of the median income based on the maximum household income limits for
the county where the real property is located as established annually by the United
States Department of Housing and Urban Development.
(B) This paragraph shall stand repealed and reserved on December 31, 2031</ins> <del>Reserved;"
</del> SECTION 2.
This Act shall become effective on January 1, 2027.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.