---
title: HB 140. End Local Taxation by Citation Act; enact
collection: bills
id: 2025-2026/hb140
cite_as: HB 140, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb140
md_url: https://georgiacommons.org/bills/2025-2026/hb140.md
text_url: https://georgiacommons.org/bills/2025-2026/hb140/text
source_url: https://www.legis.ga.gov/legislation/69562
date: 2026-01-29
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.
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index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 319
omitted_url: https://georgiacommons.org/bills/2025-2026/hb140.md?full=1
bill_number: HB 140
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-01-28
last_action: House Committee Favorably Reported By Substitute
sponsors:
- Joseph Gullett
- David Jenkins
- Matt Barton
- Eddie Lumsden
- Steve Tarvin
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB140/2025
upstream_id: 1945113
summaries_model: claude-sonnet-5
topic_tags:
- local government funding
- court fines
- traffic citations
- civil forfeiture
- municipal budgets
---
# HB 140. End Local Taxation by Citation Act; enact
## Text
The House Committee on Governmental Affairs offers the following substitute to HB 140:
A BILL TO BE ENTITLED
AN ACT
To amend Article 1 of Chapter 81 of Title 36 of the Official Code of Georgia Annotated,
relating to local government budgets and audits, so as to cap the amount of funds derived
from court fines or forfeiture action that municipalities may use as part of their yearly
budgets; to provide that any funds collected in excess of such cap shall escheat to the state;
to supersede any conflicting home rule powers of municipalities; to provide for applicability;
to provide a short title; to provide for related matters; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "End Local Taxation by Citation Act."
SECTION 2.
Article 1 of Chapter 81 of Title 36 of the Official Code of Georgia Annotated, relating to
local government budgets and audits, is amended by revising Code Section 36-81-10, relating
to effect of article on right to make expenditures and raise revenue, and effect on home rule
powers, as follows:
"36-81-10.
Except as provided for in Code Section 36-81-12, this This article shall not be construed
so as to prohibit local governments from making authorized expenditures for any lawful
purpose or from raising revenues in any manner otherwise authorized by law. It is the
specific intent of the General Assembly in adopting this article that, except as provided for
in Code Section 36-81-12, local units of government shall continue to have and to exercise
their home rule powers as provided by law."
SECTION 3.
Said article is further amended by adding a new Code section to read as follows:
"36-81-12.
(a) The funds appropriated in a municipality's budget ordinance derived from funds
collected by such municipality as criminal or civil fines or as a result of a criminal or civil
forfeiture action shall not exceed the following percentages by the following applicable
dates:
(1) No more than 30 percent of the funds appropriated for any budget ordinance adopted
by a municipality for any fiscal year beginning on or after January 1, 2027;
(2) No more than 25 percent of the funds appropriated for any budget ordinance adopted
by a municipality for any fiscal year beginning on or after January 1, 2028;
(3) No more than 20 percent of the funds appropriated for any budget ordinance adopted
by a municipality for any fiscal year beginning on or after January 1, 2029;
(4) No more than 15 percent of the funds appropriated for any budget ordinance adopted
by a municipality for any fiscal year beginning on or after January 1, 2030;
(b) Any funds received by a municipality as criminal or civil fines or as a result of a
criminal or civil forfeiture action in excess of the amount provided for in subsection (a) of
this Code section shall escheat to the state at the conclusion of the municipality's fiscal
year. Within 30 days of the end of a municipality's fiscal year, such escheated funds shall
be transmitted to the Office of the State Treasurer for deposit in the general fund of this
state."
SECTION 4.
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.
House Bill 140 would limit how much of a Georgia city's budget can come from court fines and forfeitures, phasing the cap down from 30 percent to 15 percent by 2030, with excess money sent to the state.
### Plain-language summary
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.'
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Introduced (2025-01-28)
- Last action: House Committee Favorably Reported By Substitute (2026-01-29)
- Sponsors: Joseph Gullett, David Jenkins, Matt Barton, Eddie Lumsden, Steve Tarvin
- Official page: https://www.legis.ga.gov/legislation/69562
> The history, votes, and amendments (319 characters) are at https://georgiacommons.org/bills/2025-2026/hb140.md?full=1