HB 140: End Local Taxation by Citation Act; enact

Some Georgia municipalities rely heavily on fines from traffic tickets and other citations, plus civil and criminal forfeitures, to fund their budgets. This bill would cap that reliance. Starting with fiscal years beginning on or after January 1, 2027, a municipality's budget ordinance could include no more than 30 percent of funds from criminal or civil fines or forfeiture actions. That cap would shrink over time: 25 percent for fiscal year 2028, 20 percent for fiscal year 2029, and 15 percent for fiscal year 2030 and beyond. Any fine or forfeiture money a municipality collects above the allowed percentage would escheat (be forfeited) to the state within 30 days of the end of its fiscal year, going to the Office of the State Treasurer for deposit in the state's general fund. The bill also amends Georgia's home rule law (O.C.G.A. § 36-81-10) to make clear this new cap overrides a municipality's home rule powers. The Act is titled the 'End Local Taxation by Citation Act.'

• Caps the share of a municipality's budget that can come from criminal or civil fines or forfeiture proceeds, starting at 30 percent for fiscal year 2027 and dropping to 15 percent by fiscal year 2030.
• Requires any fine or forfeiture revenue collected above the cap to escheat to the state within 30 days of the end of the municipality's fiscal year.
• Directs escheated funds to be sent to the Office of the State Treasurer for deposit in the state's general fund.
• Amends Georgia's local government home rule law (O.C.G.A. § 36-81-10) to state that municipal home rule powers are subordinate to this new fine and forfeiture cap.
• Establishes the short title 'End Local Taxation by Citation Act' for citing the law.

Georgia municipalities that depend on court fines, traffic citations, or civil and criminal forfeitures for a large share of their budgets, along with municipal officials who draft budget ordinances, the Office of the State Treasurer, and residents in cities where fine revenue currently funds significant portions of local government operations.

Cities that lean heavily on ticket and forfeiture revenue would have to find other funding sources or reduce spending as the cap tightens each year through 2030, and any excess collections would go to the state instead of staying local, changing how those cities budget and possibly how aggressively citations are issued.

• Section 1 names the law the 'End Local Taxation by Citation Act.'
• Section 2 revises O.C.G.A. § 36-81-10 so municipal home rule powers are explicitly subject to the new cap created in Section 3.
• Section 3 adds O.C.G.A. § 36-81-12, setting phased caps on fine and forfeiture revenue in municipal budgets: 30 percent (FY2027), 25 percent (FY2028), 20 percent (FY2029), and 15 percent (FY2030 and after).
• Section 3 also requires excess fine and forfeiture revenue to escheat to the state within 30 days of fiscal year end, deposited by the Office of the State Treasurer into the state general fund.
• Section 4 repeals any conflicting laws.

1. 2026-01-29House Committee Favorably Reported By Substitute (House)
2. 2025-04-04House Withdrawn, Recommitted (House)
3. 2025-02-13House Committee Favorably Reported By Substitute (House)
4. 2025-01-30House Second Readers (House)
5. 2025-01-29House First Readers (House)
6. 2025-01-28House Hopper (House)

• Joseph Gullett (R, HD-019)Primary sponsor
• David Jenkins (R, HD-136)
• Matt Barton (R, HD-005)
• Eddie Lumsden (R, HD-012)
• Steve Tarvin (R, HD-002)

• local government funding
• court fines
• traffic citations
• civil forfeiture
• municipal budgets