Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
HB 1240: Local government; total ad valorem tax digest limitation upon creating new tax allocation districts shall also apply to the renewal of existing tax allocation districts; provide
Last action February 26, 2026 · House Committee Favorably Reported
A Georgia House bill would apply the existing 10 percent limit on tax allocation district size to renewals of existing districts, not just newly created ones, closing what some see as a gap in current law.
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 Introduced version, the latest the General Assembly's website lists.
In plain language
Georgia law lets cities and counties (political subdivisions) create tax allocation districts, special zones used to fund redevelopment projects with future increases in property tax revenue. Current law caps how much taxable property value can sit inside these districts: a local government cannot create a new district if the taxable value inside it, combined with all its existing districts, would exceed 10 percent of the total taxable property value in its jurisdiction. This bill rewrites O.C.G.A. § 36-44-17 so that same 10 percent cap also applies when a local government renews an existing tax allocation district, not just when it creates a brand new one. The bill does not change the 10 percent threshold itself, only extends when it applies. It repeals any conflicting laws and does not state a special effective date.
What the bill does
- Extends the existing 10 percent taxable-value cap on tax allocation districts so it applies to renewals of existing districts, not just newly created ones.
- Amends O.C.G.A. § 36-44-17 by adding the words "or renew" and "new or renewed" to cover renewal decisions under the same limit.
- Repeals any state laws that conflict with this change.
Who it affects
City and county governments (political subdivisions) that use tax allocation districts to finance redevelopment projects, along with developers and property owners inside those districts whose ability to renew or expand district financing could be limited by the cap.
Why it matters
Local governments that want to renew a tax allocation district nearing or over the 10 percent taxable-value threshold would now face the same restriction that already applies to creating new districts, potentially limiting their ability to continue using this redevelopment financing tool.
Key provisions
- Section 1 revises O.C.G.A. § 36-44-17 to insert "or renew" so the ban on exceeding the 10 percent taxable-value threshold covers renewing a district, not just creating one.
- Section 1 also changes "proposed district" to "proposed new or renewed district" so the taxable value calculation applies equally to renewals.
- Section 2 repeals any conflicting laws, a standard clause with no substantive effect beyond clearing conflicts.
From the bill
“No political subdivision may create or renew a tax allocation district when the total current taxable value of property subject to ad valorem property taxes within the proposed new or renewed district plus the total current taxable value of property subject to ad valorem property taxes within all its existing tax allocation districts exceeds 10 percent”
Discussed in meetings (7)
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 1:23:12 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair announced that HB 1240 was being held. No presentation, discussion of its provisions or vote followed.
House Ways & Means Committee, February 25, 2026 (part 1)
From 0:31:59 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the bill would clarify that the existing 10% limit on a jurisdiction’s property-tax base committed to tax allocation districts also applies when districts are renewed. The sponsor said Atlanta’s proposed renewals could bring its share to 17% or 18%, argued that exceeding the limit could harm the rest of the city, and said clearer law could prevent disputes during bond approval. The sponsor said discussions with Atlanta were continuing. An Invest Atlanta witness urged preserving redevelopment tools for underserved neighborhoods. The witness said districts had supported more than 46,000 jobs and nearly 18,000 homes since 2014, including 6,200 affordable homes, and attracted $12 in additional investment per public dollar. The witness also said more than 8,000 affordable homes risked losing affordability protections. The chair described using a district to fund infrastructure without placing the costs on taxpayers outside it. The subcommittee passed the bill by voice vote, with no opposition heard.
House Ways & Means Committee, February 26, 2026
From 0:52:56 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1240 would clarify that the limit restricting tax allocation districts to 10% of a jurisdiction's tax base also applies when districts are renewed through new development plans or financing. The sponsor acknowledged concerns that the clarification could hinder redevelopment and said those conversations would continue, but argued that 10% was already the intended legal limit. No substantive questions followed. The chair announced that the bill passed; no vote count was stated.
House Rules Committee, March 2, 2026
From 1:22:05 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1240 would clarify the Redevelopment Powers Act and protect taxpayers by enforcing a 10% limit involving property in tax allocation districts. A member asked whether it would stop or undermine ongoing development projects. The sponsor responded that certain Atlanta projects under consideration were already prohibited under the sponsor's reading of current law, because a district requiring reauthorization should count as a new district subject to the limit. The sponsor said the proposal was intended to bring that issue to the city's attention. No decision was recorded.
House Rules Committee, March 6, 2026
From 1:27:13 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2179
Summary by Georgia Commons: The committee placed HB 1240 on the supplemental floor calendar under structured rules. An objection prompted a voice vote, and the chair announced that the motion passed. No substantive discussion occurred.
Status timeline
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Chuck Martin (R, HD-49)
- Brent Cox (R, HD-28)
- Trey Kelley (R, HD-16)
- Scott Hilton (R, HD-48)
- Chas Cannon (R, HD-172)
- Jan Jones (R, HD-47)
Topics
- tax allocation districts
- property taxes
- local government finance
- redevelopment