---
title: HB 416. Local government; enterprise zones; revise class of retailer from which fees may be collected
collection: bills
id: 2025-2026/hb416
cite_as: HB 416, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb416
md_url: https://georgiacommons.org/bills/2025-2026/hb416.md
text_url: https://georgiacommons.org/bills/2025-2026/hb416/text
source_url: https://www.legis.ga.gov/legislation/70257
date: 2025-05-14
status: passed
corpus_version: bills-2026-08-28
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: 1057
omitted_url: https://georgiacommons.org/bills/2025-2026/hb416.md?full=1
bill_number: HB 416
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-05-14
last_action: Effective Date 2025-07-01
sponsors:
  - Chuck Efstration
  - Shaw Blackmon
  - Trey Kelley
  - Bill Cowsert
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB416/2025
upstream_id: 1968093
summaries_model: claude-sonnet-5
topic_tags:
  - enterprise zones
  - local government taxes
  - economic development
  - sales tax exemptions
  - redevelopment projects
---

# HB 416. Local government; enterprise zones; revise class of retailer from which fees may be collected

## Text

25 LC 44 3107S/AP
House Bill 416 (AS PASSED HOUSE AND SENATE)
By: Representatives Efstration of the 104th, Blackmon of the 146th, and Kelley of the 16th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 88 of Title 36 of the Official Code of Georgia Annotated, relating to1
enterprise zones, so as to revise the class of retailer from wh ich fees may be collected; to2
revise the period of existence of enterprise zones; to provide for related matters; to repeal3
conflicting laws; and for other purposes.4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5
SECTION 1.6
Chapter 88 of Title 36 of the Official Code of Georgia Annotate d, relating to enterprise7
zones, is amended in Code Section 36-88-6, relating to criteria for enterprise zone, by8
revising subsection (g) as follows:9
"(g)(1) A nominated area under this subsection shall:10
(A) Be included in an urban redevelopment area as defined by p aragraph (23) of in11
Code Section 36-61-2; and12
(B) Contain within its borders the site for a redevelopment project having a minimum13
of $400 million in capital investment for the redevelopment of an area certified by the14
commissioner to have been chronically underdeveloped for a peri od of 20 years or15
more.16
H. B. 416
- 1 -
25 LC 44 3107S/AP
(2) Any nominated area meeting the criteria in paragraph (1) of this subsection may be17
designated as an enterprise zone. Any redevelopment project used to qualify an area for18
designation as an enterprise zone under this subsection shall, upon approval of such19
designation, qualify for an exemption of any sales and use tax levied within the20
boundaries of such project.21
(3) Any variation in the sales price of goods and services wit hin any redevelopment22
project used to qualify an area for designation as an enterprise zone under this subsection23
attributable to lease arrangements between a retailer and the owner of the project shall be24
a permitted practice under Parts 1 and 2 of Article 15 of Chapter 1 of Title 10.25
(4) By resolution or ordinance, the local governing body desig nating and creating an26
enterprise zone under this subsection may assess and collect an nual enterprise zone27
infrastructure fees from each retailer operating within the boundaries of the project that28
is a qualifying business or service enterprise making sales tra nsactions exempted from29
sales and use tax under paragraph (2) of this subsection in an amount not to exceed, in30
aggregate, the amount of sales and use tax on transactions of s uch retailer exempted31
under paragraph (2) of this subsection, which fees may be pledg ed by such local32
governing body, directly or indirectly, as security for revenue bonds issued for33
development or infrastructure within the enterprise zone.34
(5) This subsection shall not apply to projects involving or related to casino gambling."35
SECTION 2.36
Said chapter is further amended by revising Code Section 36-88- 10, relating to time37
limitations, as follows:38
"36-88-10.39
An area designated as an enterprise zone shall remain in existence for ten years from the40
first day of the calendar year immediately following its designation as an enterprise zone;41
provided, however, that an area designated as an enterprise zone under subsection (g) of42
H. B. 416
- 2 -
25 LC 44 3107S/AP
Code Section 36-88-6 shall remain in existence for 30 years fro m such day or until the43
redevelopment project required in subparagraph (g)(1)(B) of Cod e Section 36-88-6 is44
complete and t h e f i r s t i s s u a n c e o f any revenue bonds issued under paragraph (4) of45
subsection (g) of Code Section 36-88-6 are retired, whichever first occurs with a principal46
amount in excess of $100,000.00 . Municipal and county governments may enter into47
agreements with qualifying business or service enterprises in designated enterprise zones48
to provide for modification or termination of the tax and fee exemptions and abatements.49
Property tax incentives available to a qualified business or se rvice enterprise in an50
enterprise zone shall remain in effect for the full ten-year pe riod established by Code51
Section 36-88-8, regardless of the termination of the designation of the enterprise zone."52
SECTION 3.53
All laws and parts of laws in conflict with this Act are repealed.54
H. B. 416
- 3 -

## 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 416 revises Georgia's enterprise zone law by changing which retailers can be charged infrastructure fees within certain large redevelopment projects and extending how long some zones can last, up to 30 years.

### Plain-language summary

Georgia's enterprise zone law (O.C.G.A. Chapter 88 of Title 36) lets local governments designate underdeveloped areas as zones eligible for tax breaks to encourage redevelopment. This bill changes the rules for a specific type of enterprise zone tied to large redevelopment projects worth at least $400 million, located in areas certified as chronically underdeveloped for 20 years or more.
The bill clarifies that any local government creating this kind of zone can charge annual infrastructure fees to each retailer operating within the project that qualifies for the sales tax exemption, up to the amount of sales tax that retailer would otherwise owe. These fees can be pledged as security for revenue bonds used to fund development or infrastructure in the zone. The bill also extends how long these special enterprise zones can remain in existence, from a shorter period up to 30 years, or until the redevelopment project is finished and related bonds above $100,000 are retired, whichever comes first. Municipal and county governments retain the ability to modify or end tax and fee exemptions through agreements with qualifying businesses.

### What it does

- Revises which retailers within a large redevelopment project (at least $400 million in capital investment) can be charged annual enterprise zone infrastructure fees.
- Clarifies that these fees can be pledged as security for revenue bonds used for development or infrastructure within the enterprise zone.
- Extends the maximum life of enterprise zones created under this specific redevelopment provision to 30 years, or until the project is finished and qualifying bonds are retired.
- Confirms that price variations from lease arrangements between a retailer and project owner within these zones are a permitted business practice under Georgia law.
- Keeps property tax incentives for qualifying businesses in effect for the standard ten-year period even if the zone's overall designation ends early.

### Who it affects

The bill affects local governing bodies (cities and counties) that create enterprise zones, retailers operating within large qualifying redevelopment projects, businesses that lease space within those projects, and holders of revenue bonds issued to fund zone infrastructure.

### Why it matters

For large-scale redevelopment projects, this bill changes how long tax and fee benefits last and clarifies which retailers can be charged fees that help pay for infrastructure or bonds, potentially affecting local financing of major developments and the businesses operating within them for up to 30 years.

### Key provisions

- Section 1 revises O.C.G.A. § 36-88-6(g), setting criteria for a nominated area to include a $400 million minimum redevelopment project in a chronically underdeveloped area of 20+ years.
- Section 1 allows local governments to collect annual infrastructure fees from retailers within the project up to the amount of their exempted sales and use tax.
- Section 1 permits these fees to be pledged as security for revenue bonds funding development or infrastructure in the zone.
- Section 1 excludes casino gambling projects from qualifying under this subsection.
- Section 2 revises O.C.G.A. § 36-88-10 to extend the existence of these special enterprise zones to 30 years or until the project is complete and bonds over $100,000 are retired, whichever comes first.
- Section 2 preserves the standard ten-year property tax incentive period for qualifying businesses even if the zone designation ends sooner.
- Section 3 repeals conflicting laws.

## Status

- Status: Passed (2025-05-14)
- Last action: Effective Date 2025-07-01 (2025-05-14)
- Sponsors: Chuck Efstration, Shaw Blackmon, Trey Kelley, Bill Cowsert
- Official page: https://www.legis.ga.gov/legislation/70257

> The history, votes, and amendments (1,057 characters) are at https://georgiacommons.org/bills/2025-2026/hb416.md?full=1