---
title: 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
collection: bills
id: 2025-2026/hb1209
cite_as: HB 1209, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1209
md_url: https://georgiacommons.org/bills/2025-2026/hb1209.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1209/text
source_url: https://www.legis.ga.gov/legislation/72885
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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index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 1251
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1209.md?full=1
bill_number: HB 1209
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-11
last_action: Effective Date 2026-05-11
sponsors:
- Ron Stephens
- Shaw Blackmon
- Jesse Petrea
- Carl Gilliard
- Houston Gaines
- Ben Watson
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1209/2025
upstream_id: 2109989
summaries_model: claude-sonnet-5
topic_tags:
- sales tax exemption
- construction
- Savannah convention center
- state tax law
---
# 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
## Text
House Bill 1209 (AS PASSED HOUSE AND SENATE)
By: Representatives Stephens of the 164th, Blackmon of the 146th, Petrea of the 166th, Gilliard
of the 162nd, and Gaines of the 120th
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 48-8-3 of the Official Code of Georgia Annotated, relating to
exemptions relative to state sales and use taxes, so as to provide for a sales and use tax
exemption for purchases of tangible property and construction materials used for or in the
construction and furnishing of certain buildings; to provide for limitations on the amount of
credits to be issued; 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.
Code Section 48-8-3 of the Official Code of Georgia Annotated, relating to exemptions
relative to state sales and use taxes, is amended by striking "or" at the end of paragraph (104),
by replacing the period at the end of paragraph (105) with "; or", and by adding a new
paragraph to read as follows:
"(105.1)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary,
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 that is also located on an island in a river that serves as this state's boundary. The
exemption granted by this paragraph shall not include the sale or use of tangible
property remaining in the possession of a contractor after completion of construction.
(B) 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. A qualifying purchaser must pay sales and use tax on all
purchases and uses of tangible property and construction material and may obtain the
benefit of this exemption from sales and use tax by filing a claim for refund of tax paid
on qualifying items. No refunds made pursuant to this paragraph shall include interest."
SECTION 2.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
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 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.
### Plain-language summary
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 it 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.
## Status
- Status: Passed (2026-05-11)
- Last action: Effective Date 2026-05-11 (2026-05-11)
- Sponsors: Ron Stephens, Shaw Blackmon, Jesse Petrea, Carl Gilliard, Houston Gaines, Ben Watson
- Official page: https://www.legis.ga.gov/legislation/72885
> The history, votes, and amendments (1,251 characters) are at https://georgiacommons.org/bills/2025-2026/hb1209.md?full=1