---
title: 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
collection: bills
id: 2025-2026/hb1240
cite_as: HB 1240, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1240
md_url: https://georgiacommons.org/bills/2025-2026/hb1240.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1240/text
source_url: https://www.legis.ga.gov/legislation/72967
date: 2026-02-26
status: introduced
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.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb1239.md
next: https://georgiacommons.org/bills/2025-2026/hb1241.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 185
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1240.md?full=1
bill_number: HB 1240
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-06
last_action: House Committee Favorably Reported
sponsors:
- Charles Martin
- Brent Cox
- Trey Kelley
- Scott Hilton
- Charles Cannon
- Jan Jones
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1240/2025
upstream_id: 2111495
summaries_model: claude-sonnet-5
topic_tags:
- tax allocation districts
- property taxes
- local government finance
- redevelopment
---
# 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
## Text
House Bill 1240
By: Representatives Martin of the 49th, Cox of the 28th, Kelley of the 16th, Hilton of the 48th,
and Cannon of the 172nd
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 44 of Title 36 of the Official Code of Georgia Annotated, relating to
redevelopment powers, so as to provide that the total ad valorem tax digest limitation upon
creating new tax allocation districts shall also apply to the renewal of existing tax allocation
districts; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 44 of Title 36 of the Official Code of Georgia Annotated, relating to redevelopment
powers, is amended by revising Code Section 36-44-17, relating to limitation on creation of
tax allocation district, as follows:
"36-44-17.
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 of the total
current taxable value of all taxable property located within the area of operation of the
political subdivision."
SECTION 2.
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.
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.
### Plain-language summary
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 it 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.
## Status
- Status: Introduced (2026-02-06)
- Last action: House Committee Favorably Reported (2026-02-26)
- Sponsors: Charles Martin, Brent Cox, Trey Kelley, Scott Hilton, Charles Cannon, Jan Jones
- Official page: https://www.legis.ga.gov/legislation/72967
> The history, votes, and amendments (185 characters) are at https://georgiacommons.org/bills/2025-2026/hb1240.md?full=1