HB 1285: Sales and use tax; limit number of local sales and use taxes by authorizing counties; revise provisions

Georgia law generally caps local sales and use taxes at 2 percent in any jurisdiction, but it carves out exceptions for certain taxes like school sales taxes and transportation taxes so they don't count fully against that cap. This bill changes the list of taxes covered by one of those exceptions, the one allowing up to 1 percent combined for taxes authorized under specific code sections and chapter articles dealing with homestead option sales taxes and other local sales taxes. By rewriting paragraph (1) of subsection (a) in O.C.G.A. Section 48-8-6, the bill effectively lets a county collect both an enhanced homestead option sales tax and a local option sales tax at the same time, as long as their combined rate under this carve-out stays within the 1 percent aggregate limit. The bill does not set a new effective date and repeals conflicting laws.

• Rewrites the list of sales tax types counted under the 1 percent aggregate exception to Georgia's 2 percent local sales tax cap (O.C.G.A. Section 48-8-6).
• Groups an enhanced homestead option sales tax together with a local option sales tax under the same 1 percent combined limit, letting counties potentially levy both.
• Keeps the overall structure of the law intact, including the separate 1 percent exemption for the school sales tax and the 1 percent exemption for transportation-related taxes.
• Repeals any other Georgia laws that conflict with this change.

County governments deciding which local sales taxes to levy, county residents who pay local sales taxes, homeowners who benefit from homestead exemptions funded by these taxes, and local school systems or transportation agencies that rely on related sales tax revenue.

The change affects how much flexibility counties have to stack different local sales taxes without breaching the state's overall cap. If enacted, some counties could adopt or combine an enhanced homestead option sales tax with a local option sales tax, potentially changing how much sales tax residents pay locally and how homestead tax relief is funded.

• Section 1 amends O.C.G.A. Section 48-8-6(a)(1), which sets the general 2 percent ceiling on local sales, use, and sales-and-use taxes statewide.
• The amended text keeps a 1 percent exemption for the education sales and use tax authorized under the state constitution.
• The amended text keeps up to 1 percent in aggregate for transportation-related sales and use taxes under specified chapters of Georgia law.
• The amended text sets up to 1 percent in aggregate for taxes authorized under Code Section 48-8-96, Code Section 48-8-97, Article 2A, Article 2B, Part 3 of Article 3, and Article 4 of Chapter 8, which cover taxes including the homestead option and local option sales taxes.
• Section 2 repeals any conflicting Georgia laws.

1. 2026-03-09Senate Read and Referred (Senate)
2. 2026-03-06House Passed/Adopted (House)
3. 2026-03-06House Third Readers (House)
4. 2026-03-06House Committee Favorably Reported (House)
5. 2026-02-17House Second Readers (House)
6. 2026-02-12House First Readers (House)
7. 2026-02-11House Hopper (House)

• Mike Cheokas (R, HD-151)Primary sponsor
• Ron Stephens (R, HD-164)
• Carter Barrett (R, HD-024)
• Noel Williams (R, HD-148)
• Soo Hong (R, HD-103)
• Charles Cannon (R, HD-172)

1. PassedHouse voteMarch 7, 2026

   98 yea, 58 nay (3 not voting, 18 absent)

   Passage: House Vote #688

• sales tax
• local option sales tax
• homestead exemption
• county government finance
• property tax relief