---
title: HB 165. Income tax credit; business enterprises for leased motor vehicles; repeal and reserve
collection: bills
id: 2025-2026/hb165
cite_as: HB 165, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb165
md_url: https://georgiacommons.org/bills/2025-2026/hb165.md
text_url: https://georgiacommons.org/bills/2025-2026/hb165/text
source_url: https://www.legis.ga.gov/legislation/69642
date: 2026-05-05
status: passed
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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omitted: votes and history
omitted_chars: 1515
omitted_url: https://georgiacommons.org/bills/2025-2026/hb165.md?full=1
bill_number: HB 165
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-05
last_action: Effective Date 2026-07-01
sponsors:
  - Lehman Franklin
  - Spencer Frye
  - Al Williams
  - William Werkheiser
  - Mike Cameron
  - Rick Townsend
  - Chuck Hufstetler
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB165/2025
upstream_id: 1947533
summaries_model: claude-sonnet-5
topic_tags:
  - manufactured homes
  - sales tax exemption
  - property taxes
  - local sales taxes
  - real estate conversion
---

# HB 165. Income tax credit; business enterprises for leased motor vehicles; repeal and reserve

## Text

House Bill 165 (AS PASSED HOUSE AND SENATE)
By: Representatives Franklin of the 160th, Frye of the 122nd, Williams of the 168th,
Werkheiser of the 157th, Cameron of the 1st, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and
taxation, so as to revise and expand a sales tax exemption for manufactured homes; to
provide for related matters; to provide an effective date; to repeal conflicting laws; and for
other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is
amended by revising paragraph (102) of Code Section 48-8-3, relating to exemptions from
sales and use tax, as follows:
"(102)(A) Fifty percent of the sales price of a manufactured home if such manufactured
home is installed pursuant to Code Section 8-2-160 and will be converted to real
property pursuant to Code Section 8-2-183.1 within 30 days of the retail sale.
(B) As used in this paragraph, the term 'manufactured home' means a structure built on
a permanent chassis that:
(i) Is designed to be used as a dwelling;
(ii) Is transportable in one or more sections;
(iii) Contains plumbing, heating, air-conditioning, and electrical systems; and
(iv) Is designed to have an angled roof and contain an area of at least 650 square feet.
(C) Within 30 days of <del>a</del> <ins>the</ins> sale <ins>of a manufactured home that is</ins> exempted <del>as provided
for in</del> <ins>from taxation pursuant to</ins> subparagraph (A) of this paragraph, the seller shall
complete the requirements of Code Section 8-2-183.1 and properly file <del>a copy of</del> the
Certificate of Permanent Location with the clerk of superior court, or the commissioner
shall recover from the seller 1.5 times the amount of <del>tax</del> <ins>taxes</ins> exempted <del>by</del> <ins>pursuant
to</ins> this paragraph.
(D) <del>A</del> <ins>No</ins> manufactured home <del>that is</del> <ins>of which the sale was</ins> exempted <del>as provided in
</del> <ins>from taxation pursuant to</ins> subparagraph (A) of this paragraph shall <del>not</del> be eligible for
a Certificate of Removal from Permanent Location <ins>as</ins> provided <ins>for</ins> in Part 4 of Article 2
of Chapter 2 of Title 8, or any other manner of a return to tangible personal property
unless the amount <ins>of taxes</ins> exempted pursuant to subparagraph (A) of this paragraph
is paid to the commissioner.
<del>(E) The exemption provided for in subparagraph (A) of this paragraph shall not apply
to any sales and use tax levied or imposed in an area consisting of less than the entire
state, however authorized, including, but not limited to, such taxes authorized by or
pursuant to:
(i) Constitutional amendment;
(ii) Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as
amended, the 'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; or
(iii) Article 2, 2A, 3, 4, 5, or 5A of this chapter;"
</del> SECTION 2.
This Act shall become effective on July 1, 2026.
SECTION 3.
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 165 rewrites Georgia's sales tax break for manufactured homes that are converted into real property, changing filing and penalty rules and removing a provision that had kept the exemption from applying to certain local sales taxes.

### Plain-language summary

Georgia law already gives a 50 percent sales tax exemption on manufactured homes that are installed and then converted into real property within 30 days of sale. House Bill 165 keeps that basic exemption but rewrites the rules around it. It clarifies that within 30 days of the exempted sale, the seller must complete the conversion paperwork and file the Certificate of Permanent Location with the clerk of superior court, or the state revenue commissioner can recover 1.5 times the taxes that were exempted.
The bill also says a manufactured home whose sale was tax exempt cannot get a Certificate of Removal from Permanent Location, or otherwise be converted back to personal property, unless the exempted taxes are repaid to the commissioner. It removes a section of current law that had blocked the exemption from applying to local sales taxes such as those tied to MARTA or special local sales taxes. The changes take effect July 1, 2026.

### What it does

- Keeps the existing 50 percent sales tax exemption for manufactured homes that are installed and converted to real property within 30 days of sale.
- Requires sellers to file the Certificate of Permanent Location within 30 days of an exempted sale or face recovery of 1.5 times the exempted taxes by the state revenue commissioner.
- Bars a manufactured home that received the exemption from getting a Certificate of Removal from Permanent Location, or from otherwise reverting to personal property, unless the exempted taxes are repaid.
- Deletes a subparagraph that had excluded local sales and use taxes, such as MARTA's tax or various special local sales taxes, from the manufactured home exemption.
- Sets the effective date of the changes as July 1, 2026.

### Who it affects

Manufacturers and sellers of manufactured homes, buyers who plan to convert a manufactured home into real property, county clerks of superior court who record the paperwork, and the Georgia Department of Revenue, which administers the exemption and can claw back taxes.

### Why it matters

Sellers and buyers of manufactured homes get clearer deadlines and consequences for completing the paperwork that makes the tax break valid, and the change to local tax treatment could affect how much sales tax applies in areas with additional local sales taxes like MARTA's transit tax.

### Key provisions

- Section 1 amends O.C.G.A. § 48-8-3(102), keeping the 50 percent exemption for a manufactured home installed and converted to real property within 30 days of sale.
- Section 1 defines 'manufactured home' as a structure on a permanent chassis with plumbing, heating, air conditioning, and electrical systems, at least 650 square feet, with an angled roof.
- Section 1 requires sellers to file the Certificate of Permanent Location within 30 days of the exempted sale, or the commissioner can recover 1.5 times the exempted tax amount from the seller.
- Section 1 blocks a home that got the exemption from later obtaining a Certificate of Removal from Permanent Location unless the exempted tax amount is repaid to the commissioner.
- Section 1 deletes former subparagraph (E), which had said the exemption did not apply to local sales taxes such as MARTA's tax or certain special local sales taxes.
- Section 2 sets the effective date as July 1, 2026.
- Section 3 repeals conflicting laws.

## Status

- Status: Passed (2026-05-05)
- Last action: Effective Date 2026-07-01 (2026-05-05)
- Sponsors: Lehman Franklin, Spencer Frye, Al Williams, William Werkheiser, Mike Cameron, Rick Townsend, Chuck Hufstetler
- Official page: https://www.legis.ga.gov/legislation/69642

> The history, votes, and amendments (1,515 characters) are at https://georgiacommons.org/bills/2025-2026/hb165.md?full=1