Georgia CommonsHouse · Engrossed · 2025-2026 Regular Session
HB 186: Revenue and taxation; eliminate title ad valorem tax fee requirement for certain inherited vehicles
Last action March 27, 2026 · Senate Committee Favorably Reported By Substitute
A Senate substitute for HB 186 would end the state sales and use tax exemption for high-technology data centers in Georgia, stopping new exemption certificates from being issued after the law takes effect.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
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.
What the bill does
- 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.
Who it affects
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.
Why it matters
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.
Key provisions
- 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.
From the bill
“no new certificates of exemption from sales and use tax to a high-technology data center or a high-technology data center customer shall be issued pursuant to the former provisions of this paragraph”
“any certificate of exemption issued prior to the effective date of this Act shall continue to be governed by the provisions of this paragraph as it existed immediately prior to the effective date of this Act”
Discussed in meetings (2)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
Senate Finance Committee, March 26, 2026
From 0:13:33 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair described a 23-line version containing previously considered data-center language, without utility provisions added earlier. The chair said existing participants would continue through 2032. One committee member urged passage into law, saying state data-center subsidies exceeded $1 billion and local governments had probably contributed a similar amount. The member argued those resources could support healthcare, education and other needs, and said data centers would continue coming to Georgia without the incentives. The chair said the state share of computer-equipment and data-center exemptions exceeded one month of Georgia income-tax collections, with a nearly equal local share. Another member asked whether a separate exemption provision would remain unchanged and expire in 2028. The chair confirmed that and said the original language addressed only the other provision. Members later considered including the separate provision, but disagreed about whether doing so would extend its expiration to 2032. No amendment was adopted. The committee unanimously approved a motion to recommend passage.
Status timeline
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Recommitted (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
Show full history (11 actions)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Jordan Ridley (R, HD-22)
- Jan Jones (R, HD-47)
- Jason Ridley (R, HD-6)
- Jaclyn Ford (R, HD-170)
- Bruce Williamson (R, HD-112)
- Rob Clifton (R, HD-131)
- Jason Anavitarte (R, SD-31)
Votes
- House voteMarch 3, 2025
171 yea, 0 nay (6 not voting, 3 excused)
Topics
- sales tax
- data centers
- tax exemptions
- state revenue