Georgia CommonsHB 1209: Sales and use tax; purchases of tangible property and construction materials used for or in the construction and furnishing of certain buildings; provide exemption
Last action May 11, 2026 · Effective Date 2026-05-11
House Bill 1209 creates a state sales and use tax exemption, capped at $7 million, for construction materials and property used to build and furnish certain buildings near a specific state-owned convention facility on a Savannah River island.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest LegiScan holds.
In plain language
Georgia currently taxes purchases of construction materials and property used in most building projects. This bill amends Georgia's sales and use tax exemption law (O.C.G.A. § 48-8-3) to add a narrow new exemption for tangible property and construction materials used to build and furnish buildings on a wharf lot located between 1,500 and 5,000 feet from a large state-owned convention or meeting facility, one with between 150,000 and 750,000 square feet of meeting space, sited on an island in a river that forms Georgia's border. That description matches the area around the Savannah Convention Center on Hutchinson Island. The exemption runs from July 1, 2026 through June 30, 2033, or until total refunds under this provision reach $7 million, whichever comes first. Buyers must still pay the tax upfront and then apply for a refund; the law does not cover materials a contractor keeps after finishing construction, and refunds will not include interest. The law takes effect once the Governor signs it.
What the bill does
- Adds a new sales and use tax exemption to Georgia law (O.C.G.A. § 48-8-3) for construction materials and property used to build and furnish qualifying buildings near a large state-owned convention facility on a river-boundary island.
- Caps the total tax relief available under this exemption at $7 million in aggregate refunds.
- Sets the exemption period from July 1, 2026 through June 30, 2033, ending early if the $7 million refund cap is reached first.
- Requires qualifying purchasers to pay the sales and use tax upfront and then file a refund claim, rather than getting the exemption at the point of sale.
- Excludes from the exemption any tangible property a contractor still has after finishing construction.
- Specifies that refunds issued under this provision will not include interest.
Who it affects
This affects developers, contractors, and purchasers involved in construction projects near the state-owned convention facility on Hutchinson Island in Savannah, as well as the Georgia Department of Revenue, which will process the refund claims and track the $7 million cap.
Why it matters
Builders and buyers working on qualifying projects near this convention facility could recover sales and use tax paid on construction materials and furnishings, lowering the cost of that specific development. Because the benefit is capped at $7 million total and requires filing for a refund, its practical reach is limited to one identifiable project area.
Key provisions
- Section 1 amends O.C.G.A. § 48-8-3 by adding new paragraph (105.1), creating the exemption for property and materials used in construction and furnishing of buildings within a defined distance of a specified convention facility.
- The exemption applies to a wharf lot and improvements located between 1,500 and 5,000 feet from a state-owned convention or meeting facility with 150,000 to 750,000 square feet of meeting space, on an island in a boundary river.
- The exemption excludes tangible property still in a contractor's possession after construction is complete.
- The exemption is available only from July 1, 2026 to June 30, 2033, or until $7 million in refunds is reached, whichever happens first.
- Purchasers must pay the tax at purchase and then file a claim for refund to receive the benefit; no interest is paid on these refunds.
- Section 2 sets the effective date as the date the Governor signs the bill or it otherwise becomes law without signature.
- Section 3 repeals any conflicting laws.
From the bill
“the sale or use of tangible property and construction material used for or in the construction and furnishing of buildings located at any wharf lot and improvements that are located between 1,500 feet and 5,000 feet of a state owned convention or meeting facility with between 150,000 square feet and 750,000 square feet of available meeting space”
“This exemption shall apply from July 1, 2026, until June 30, 2033, or until the aggregate sales and use tax refunded pursuant to this paragraph exceeds $7 million, whichever occurs first.”
“No refunds made pursuant to this paragraph shall include interest.”
Status timeline
- Effective Date 2026-05-11
- Act 467
- House Date Signed by Governor (House)
- House Sent to Governor (House)
- Senate Passed/Adopted (Senate)
- Senate Third Read (Senate)
- Senate Engrossed (Senate)
- Senate Read Second Time (Senate)
Show full history (16 actions)
- Senate Committee Favorably Reported (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted By Substitute (House)
- House Third Readers (House)
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Ron Stephens (R, HD-164)
- Shaw Blackmon (R, HD-146)
- Jesse Petrea (R, HD-166)
- Carl Gilliard (D, HD-162)
- Houston Gaines (R, HD-120)
- Ben Watson (R, SD-001)
Votes
- House voteMarch 3, 2026
160 yea, 8 nay (7 not voting, 2 absent)
- Senate voteMarch 31, 2026
33 yea, 15 nay (2 not voting, 4 absent)
- Senate voteMarch 31, 2026
42 yea, 8 nay (1 not voting, 3 absent)
Topics
- sales tax exemption
- construction
- Savannah convention center
- state tax law