HB 1214: Sales and use tax; new special purpose local option sales tax dedicated to certain healthcare purposes; provide

Under current Georgia law, local governments can already levy several kinds of special purpose local option sales taxes (SPLOSTs), but none of them are specifically earmarked for healthcare. This bill creates a new, separate SPLOST that a qualified consolidated government (a city or county whose boundaries match its special tax district) could put before voters for what the bill calls 'healthcare enhancement purposes,' meaning hospital capital projects, bad debt, indigent care, and other funding shortfalls tied to community healthcare. The tax would be capped at 1 percent, would have to be approved by referendum, and could run for up to five years before it would have to be reauthorized by a new vote. The state revenue commissioner would collect the tax alongside other sales taxes, keep 1 percent of proceeds for administrative costs, and send the rest to the local government. The bill also requires separate accounting for the money, bars using it to replace existing healthcare funding, and lets the state withhold the funds if they are misused. The law would take effect as soon as the Governor signs it.

• Creates a new part of Georgia's sales tax law (O.C.G.A. Title 48, Chapter 8) authorizing a special 1 percent sales tax dedicated to healthcare enhancement purposes.
• Limits eligibility to a 'qualified consolidated government,' a municipality or county whose boundaries match its special tax district, and requires voter approval by referendum before the tax can be imposed.
• Caps the tax at 1 percent (with a separate cap on motor fuel sales) and limits how long it can run to a maximum of five years unless reauthorized by another vote.
• Directs the state revenue commissioner to collect the tax, keep 1 percent for state administrative costs, and send the remainder to the local government that imposed it.
• Requires the proceeds to be kept in a separate account, barred from replacing existing healthcare funding, and audited annually, with the state able to withhold funds if they are misused.
• Adds this new tax to the list counted toward the state's existing 1 percent aggregate cap on certain local sales taxes.

This bill affects residents and shoppers in any qualified consolidated government (a city or county whose boundaries match its special district) that puts the tax to a vote, as well as local hospitals, hospital authorities, and nonprofit healthcare providers that could receive the funding, and the state Department of Revenue, which would collect and audit the tax.

If enacted and approved locally, shoppers in participating areas would pay up to 1 cent more per dollar on most purchases for up to five years, with the money going specifically to hospital projects, indigent care, and healthcare funding shortfalls rather than general local budgets, giving communities a new dedicated funding tool for healthcare.

• Code Section 48-8-170 defines 'healthcare enhancement purposes' as hospital capital outlay projects, bad debt, indigent care, and other healthcare funding shortfalls.
• Code Section 48-8-172 sets the tax rate at 1 percent (with a separate per-gallon cap for motor fuel) and requires referendum approval before imposition.
• Code Section 48-8-173 details the referendum process, including the required ballot language asking whether to impose the tax for 'healthcare enhancement purposes.'
• Code Section 48-8-174 limits any one government to a single 1 percent tax under this part at a time and sets a five-year maximum duration, though it can be reimposed by a later vote.
• Code Section 48-8-177 directs that 1 percent of collected proceeds go to the state general fund for administrative costs, with the remainder distributed to the local government.
• Code Section 48-8-183 requires proceeds be kept in a segregated account, prohibits using them to supplant existing healthcare funding, and requires annual audited accounting.
• Code Section 48-8-184 allows the state revenue commissioner or state auditor to withhold tax proceeds from a municipality or county that misuses the funds until a corrective plan is approved.

1. 2026-02-09House Second Readers (House)
2. 2026-02-06House First Readers (House)
3. 2026-02-05House Hopper (House)

• Angie O'Steen (R, HD-169)Primary sponsor
• James Burchett (R, HD-176)
• Noel Williams (R, HD-148)
• Trey Kelley (R, HD-016)
• John Corbett (R, HD-174)
• William Werkheiser (R, HD-157)

• sales tax
• healthcare funding
• hospitals
• local option sales tax
• indigent care