HB 1447: Local government; comprehensive efficiency review of local taxing bodies; provide

Under current Georgia law, local governments and school systems that levy property taxes (ad valorem taxes) are not required to periodically evaluate whether their operations are efficient or whether they could save money by consolidating services. HB 1447 adds a new section to Georgia's local government efficiency law (O.C.G.A. Chapter 36-86) requiring these 'local taxing bodies' to conduct a comprehensive efficiency review every ten years, beginning January 1, 2027. The review must look at administrative costs, staffing, technology use compared with similar jurisdictions, a utilities bond structure, and whether consolidating operations with a neighboring or overlapping local taxing body could cut administrative costs by at least 5 percent. After completing the review, the local taxing body must publish a written report and submit it to the Department of Community Affairs by December 31 of the reporting year. Bodies that fail to submit the report lose eligibility for state grants or funding until they do. The Department of Community Affairs must write rules for the report's format and may use its existing local government efficiency grant program to help pay for the reviews.

• Requires every local taxing body (a city, county, school system, or special district that levies property taxes) to conduct a comprehensive efficiency review every ten years starting in 2027.
• Specifies the review must examine administrative costs, staffing levels, technology use, a utilities bond structure, and potential consolidation with neighboring bodies.
• Requires a written report on the review's results to be published and submitted to the Department of Community Affairs by December 31 of the reporting year.
• Cuts off eligibility for state grants or funding for any local taxing body that fails to submit its required report.
• Directs the Department of Community Affairs to write rules for the report format and allows it to use the existing local government efficiency grant program to help pay for reviews.

Georgia cities, counties, local school systems, and special districts that levy property taxes, along with the Department of Community Affairs, which will collect the reports, write rules, and enforce the grant funding penalty for bodies that miss the deadline.

Local governments and school systems would face new administrative work every decade to study their own costs, staffing, and possible consolidation opportunities, and those that skip the report would lose access to state grants, potentially affecting local budgets and services funded by that money.

• New Code Section 36-86-5(a) defines 'local taxing body' as any local government unit, school system, or special district authorized to levy property taxes.
• Subsection (b) requires a comprehensive efficiency review every ten years starting January 1, 2027, covering administrative costs, staffing, technology, a utilities bond structure evaluation, and a consolidation cost-savings analysis of at least 5 percent.
• Subsection (c) requires the local taxing body to publish the review results and submit a written report to the Department of Community Affairs.
• Subsection (d) sets a deadline of December 31 of the reporting year for the report to be completed and adopted.
• Subsection (e) makes a local taxing body ineligible for state grants or funding if it fails to submit the required report, until it does so.
• Subsection (f) directs the Department of Community Affairs to set rules for the report's form and allows use of the local government efficiency grant program (O.C.G.A. § 36-86-4) to assist with reviews.

1. 2026-03-03House Committee Favorably Reported By Substitute (House)
2. 2026-02-25House Second Readers (House)
3. 2026-02-24House First Readers (House)
4. 2026-02-24House Hopper (House)

• Beth Camp (R, HD-135)Primary sponsor
• Karen Mathiak (R, HD-082)
• Bethany Ballard (R, HD-147)
• Leesa Hagan (R, HD-156)
• Brent Cox (R, HD-028)
• Mitchell Horner (R, HD-003)

• local government efficiency
• property taxes
• government consolidation
• state grants
• school systems