HB 534: Fairburn, City of; levy an excise tax

Georgia law lets cities charge an excise tax on hotel, motel, and similar lodging stays, but state law caps how high that rate can go unless the General Assembly grants special permission for a higher rate. This bill gives the City of Fairburn that permission, authorizing its governing authority to levy the tax at up to 8 percent of the charge for rooms, lodgings, or accommodations at hotels, motels, inns, campgrounds, and similar places. The bill follows a resolution the Fairburn mayor and council adopted on January 13, 2025, that set the specific new rate and spelled out how the money above the standard 5 percent rate would be used. Under the bill, at least 50 percent of the tax collected above what a 5 percent rate would bring in must go to a tourism marketing organization for promoting tourism, conventions, and trade shows. The rest of that extra revenue must be spent on tourism product development.

• Authorizes the City of Fairburn's governing authority to levy a hotel and motel excise tax at a rate of up to 8 percent, higher than the standard cap.
• Ties the new authority to a January 13, 2025 city resolution that set the specific rate and spending plan for the tax proceeds.
• Requires at least 50 percent of tax revenue collected above what a 5 percent rate would generate to fund tourism, convention, and trade show promotion through a designated marketing organization.
• Requires the remaining share of that excess revenue to be spent on tourism product development projects.
• Repeals any existing state laws that conflict with this new authorization.

Hotel, motel, inn, lodge, tourist camp, campground, and similar lodging operators in Fairburn who collect the tax from guests; visitors and travelers staying in Fairburn lodging; the City of Fairburn's government; and the destination marketing organization that administers tourism promotion funds.

Fairburn visitors staying in local hotels and similar lodging could pay a higher excise tax on their room charges, up to 8 percent instead of the standard rate. The added revenue would fund tourism marketing and tourism development projects in the city rather than the city's general budget.

• Section 1 authorizes Fairburn to levy the excise tax at a rate not to exceed 8 percent under O.C.G.A. § 48-13-51(b), covering hotels, motels, inns, lodges, tourist camps, cabins, and campgrounds.
• Section 2 notes the authorization follows a January 13, 2025 city resolution that set the specific rate, identified tourism projects, and specified how proceeds would be allocated.
• Section 3(1) requires at least 50 percent of revenue collected above a 5 percent rate to go toward promoting tourism, conventions, and trade shows through a designated marketing organization.
• Section 3(2) requires the remaining excess revenue not spent under paragraph (1) to be used for tourism product development.
• Section 4 repeals conflicting laws.

1. 2025-05-13Effective Date
2. 2025-05-13Act 146
3. 2025-05-13House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-13Senate Passed/Adopted (Senate)
6. 2025-03-13Senate Committee Favorably Reported (Senate)
7. 2025-03-06Senate Read and Referred (Senate)
8. 2025-03-04House Passed/Adopted (House)

• Derrick Jackson (D, HD-68)Primary sponsor
• Lydia Glaize (D, HD-67)

1. PassedHouse voteMarch 4, 2025

   172 yea, 0 nay (6 not voting, 2 excused)

   Local Calendar: House Vote #148

2. PassedSenate voteMarch 13, 2025

   48 yea, 0 nay (4 not voting, 4 excused)

   LOCAL CONSENT CALENDAR: Senate Vote #229

• hotel motel tax
• Fairburn
• local tax authorization
• tourism funding