Georgia CommonsHouse · Passed · 2025-2026 Regular Session
HB 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
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 the General Assembly's website lists.
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.”
Discussed in meetings (13)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Ways & Means Committee, February 23, 2026
From 2:11:34 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor described HB 1209 as providing a sales tax refund after qualifying construction is completed. The sponsor said the cost would be shared equally by the state and local governments. The chair and sponsor identified a combined state and local cap of $7 million. No substantive questions were asked. The subcommittee voted to send the substitute to the full committee with a recommendation to pass, with no opposition heard.
House Ways & Means Committee, February 24, 2026
From 0:26:52 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor described a public-private partnership for a large construction project in the sponsor's area. The sponsor said local governments would provide half of a sales tax refund after construction and the state would provide the other half, totaling $7 million. No questions were asked, and the committee approved the do-pass motion by voice vote.
House Rules Committee, March 2, 2026
From 1:09:43 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1696
Summary by Georgia Commons: The sponsor said HB 1209 would provide a sales tax refund on construction equipment for a large economic development project in coastal Georgia. The sponsor said the project was expected to create 1,000 jobs and bring about half a billion dollars in investment. No questions or decision followed.
House Rules Committee, March 2, 2026
From 0:20:53 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1696
Summary by Georgia Commons: The committee placed HB 1209 on Tuesday’s calendar under structured rules. The motion was seconded, no opposition was heard, and there was no discussion of the bill’s contents.
House floor session, March 3, 2026 (legislative day 26, PM)
From 0:54:25 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1729
Summary by Georgia Commons: The sponsor said HB 1209 would provide a $7 million sales-tax refund upon completion of a coastal Georgia project, split equally between state and local governments. The sponsor projected 300 construction jobs, $100 million in construction spending over eight months, and a completed project worth $500 million that would produce about 1,000 permanent jobs and approximately $12 million in tax revenue. The sponsor argued that the incentive would increase jobs and public revenue. No questions were asked. The House adopted the committee substitute and passed the bill 160-8.
Senate Finance Committee, March 25, 2026
From 1:05:06 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor described a sales-tax refund for construction materials used in a large Savannah River Street hotel, restaurant and related development. The sponsor said the project would help meet lodging demand following the state's $276 million convention-center expansion. According to the sponsor, the roughly $500 million project could begin that fall, create 300 immediate construction jobs and, upon completion in late 2028, support about 1,000 permanent jobs and generate $12 million in tax revenue. The sponsor said the refund would be available after completion and receipt of a certificate of occupancy, capped at $7 million, with the expiration date extended to June 30, 2033. The chair said the fiscal note showed effects in two years and that the eligibility rules appeared narrowly tailored to this project. No substantive questions followed. The committee approved the measure 6-1.
Senate Rules Committee, March 30, 2026
From 1:13:34 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The vice chair selected HB 1209 for the floor calendar. No substantive explanation or debate followed. The committee unanimously approved the calendar containing it.
Senate floor session, March 31, 2026 (legislative day 39, part 1)
From 1:31:10 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)
Summary by Georgia Commons: The majority leader included HB 1209 in a request to prevent floor amendments to ten bills. The clerk described a sales tax exemption for property and construction materials used to construct and furnish certain buildings, without identifying the buildings. After an objection, the Senate approved the group motion 33-15. No substantive debate or final passage occurred.
Senate floor session, March 31, 2026 (legislative day 39, part 2)
From 2:46:15 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Third Read)
Summary by Georgia Commons: The clerk described a sales-tax exemption for property and construction materials used in certain buildings. The sponsor described the proposal as a narrowly targeted, refund-only cost-sharing arrangement for extraordinary costs on a riverfront project. The sponsor said the investment was about $500 million and the refund was capped at $7 million. No questions or opposing speeches followed. The Senate passed the bill, 42 to 8.
- Read aloud: House floor session, February 6, 2026 (legislative day 14), 0:40:05
- Read aloud: House floor session, February 9, 2026 (legislative day 15), 0:32:53
- Read aloud: Senate floor session, March 4, 2026 (legislative day 27), 0:44:53
- Read aloud: Senate floor session, March 27, 2026 (legislative day 38), 0:26:20
Status timeline
- Effective Date
- 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-1)
Votes
- House voteMarch 3, 2026
160 yea, 8 nay (7 not voting, 2 excused)
- Senate voteMarch 31, 2026
33 yea, 15 nay (2 not voting, 4 excused)
- Senate voteMarch 31, 2026
42 yea, 8 nay (1 not voting, 3 excused)
Topics
- sales tax exemption
- construction
- Savannah convention center
- state tax law