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

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.

• 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.

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.

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.

• 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.

1. 2026-02-26House Committee Favorably Reported (House)
2. 2026-02-10House Second Readers (House)
3. 2026-02-09House First Readers (House)
4. 2026-02-06House Hopper (House)

• Charles Martin (R, HD-049)Primary sponsor
• Brent Cox (R, HD-028)
• Trey Kelley (R, HD-016)
• Scott Hilton (R, HD-048)
• Charles Cannon (R, HD-172)
• Jan Jones (R, HD-047)

• tax allocation districts
• property taxes
• local government finance
• redevelopment