HB 1298: Sales and use tax; exempt retail sale of electricity and natural gas for use by any residential property

Georgia currently taxes retail sales of electricity and natural gas, including for homes, unless another specific exemption already applies. This bill adds a new exemption to Georgia's sales and use tax law (O.C.G.A. § 48-8-3) covering the retail sale of electricity and natural gas for use by any residential property. The new exemption would not take effect immediately. Instead, it is written to begin on January 1 of the year after lawmakers repeal a different, already-existing exemption found in paragraph (68.1) of the same Code section. Until that other paragraph is repealed, this new residential utility exemption would not apply. The bill also repeals any conflicting laws, a standard closing provision.

• Adds a new sales and use tax exemption in Georgia law (O.C.G.A. § 48-8-3) for retail sales of electricity and natural gas used by any residential property.
• Delays that exemption from taking effect until January 1 of the year following the repeal of a separate existing exemption, paragraph (68.1) of the same Code section.
• Adjusts the punctuation and wording of two neighboring exemption paragraphs (104 and 105) to fit the new paragraph into the list.
• Repeals any other Georgia laws that conflict with the new provision.

Georgia homeowners and renters who pay for electricity and natural gas would be affected, as would utility companies that collect sales tax on residential energy sales, and the Georgia Department of Revenue, which administers the sales and use tax exemption list.

If it ever takes effect, residential customers would stop paying sales tax on their electricity and natural gas bills, lowering monthly utility costs. But because the exemption is tied to the repeal of an unrelated existing exemption (paragraph 68.1), it may not take effect for some time, if at all.

• Section 1 amends O.C.G.A. § 48-8-3 by adding new paragraph (106), exempting retail sales of electricity and natural gas for residential property use from sales and use tax.
• Section 1 sets the exemption's start date as January 1 of the year following the repeal of paragraph (68.1) of the same Code section, meaning it depends on a separate future legislative action.
• Section 1 also makes small wording changes to paragraphs (104) and (105) to properly list the new exemption among existing ones.
• Section 2 repeals any other Georgia laws that conflict with the new exemption.

1. 2026-02-18House Second Readers (House)
2. 2026-02-17House First Readers (House)
3. 2026-02-12House Hopper (House)

• Charles Cannon (R, HD-172)Primary sponsor
• John Corbett (R, HD-174)
• David Huddleston (R, HD-072)
• Trey Kelley (R, HD-016)
• Shaw Blackmon (R, HD-146)

• sales tax
• utility bills
• residential energy costs
• Georgia tax exemptions