HB 186: Revenue and taxation; eliminate title ad valorem tax fee requirement for certain inherited vehicles

Georgia law currently lets qualifying high-technology data centers and their customers apply for a certificate exempting certain purchases from state sales and use tax. This Senate committee substitute repeals that exemption going forward. Once the law takes effect, the Department of Revenue could no longer issue new certificates of exemption to data centers or their customers under this provision. The bill does protect people who already have a certificate: any exemption certificate issued before the law's effective date would keep working under the old rules, so existing arrangements are not disrupted. The law would take effect as soon as the Governor signs it, or if it becomes law without the Governor's signature. Note that this substitute's actual text addresses data center tax exemptions, not the vehicle title tax topic named in the bill's original title.

• Repeals the state sales and use tax exemption (O.C.G.A. § 48-8-3(68.1)) for high-technology data centers and their customers, blocking new exemption certificates after the effective date.
• Preserves the old rules for anyone who already holds a certificate of exemption issued before the effective date, letting those certificates keep working as before.
• Sets the effective date as the date the Governor signs the bill, or the date it becomes law without a signature if the Governor does not act.
• Repeals any other Georgia laws that conflict with this change.

High-technology data center operators in Georgia and their customers who currently rely on the sales and use tax exemption, as well as the Georgia Department of Revenue, which administers exemption certificates under this part of the tax code.

Data centers and their customers that have not yet obtained an exemption certificate would lose access to this tax break, likely raising their state sales and use tax costs on covered purchases going forward. Businesses that already hold certificates would be unaffected and could continue operating under the prior rules.

• Section 1 repeals paragraph (68.1) of O.C.G.A. § 48-8-3 and replaces it with new language ending future issuance of data center sales and use tax exemption certificates.
• Section 1 grandfathers in certificates issued before the effective date, letting them continue under the exemption rules as they existed before repeal.
• Section 2 sets the effective date as the date of the Governor's approval, or the date the bill becomes law without approval.
• Section 3 repeals any conflicting Georgia laws.

1. 2026-03-27Senate Committee Favorably Reported By Substitute (Senate)
2. 2026-01-12Senate Recommitted (Senate)
3. 2025-03-27Senate Read Second Time (Senate)
4. 2025-03-27Senate Committee Favorably Reported By Substitute (Senate)
5. 2025-03-04Senate Read and Referred (Senate)
6. 2025-03-03House Passed/Adopted (House)
7. 2025-03-03House Third Readers (House)
8. 2025-02-26House Committee Favorably Reported (House)

• Jordan Ridley (R, HD-022)Primary sponsor
• Jan Jones (R, HD-047)
• Jason Ridley (R, HD-006)
• Jaclyn Ford (R, HD-170)
• Bruce Williamson (R, HD-112)
• Rob Clifton (R, HD-131)
• Jason Anavitarte (R, SD-031)

1. PassedHouse voteMarch 3, 2025

   171 yea, 0 nay (6 not voting, 3 absent)

   Passage: House Vote #127

• sales tax
• data centers
• tax exemptions
• state revenue