Georgia CommonsHouse · Engrossed · 2025-2026 Regular Session
HB 632: Professions and businesses; clarify certain veterans' eligibility for exemption with regard to payment of occupation taxes, administrative fees, and regulatory fees
Last action March 25, 2026 · Senate Read Second Time
House Bill 632 would update Georgia's law letting disabled veterans and blind people run businesses or professions without paying local occupation taxes or regulatory fees, by defining 'armed conflict' to match federal rules and removing an outdated income tax requirement.
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 Introduced version, the latest the General Assembly's website lists.
In plain language
Georgia law already lets certain disabled veterans, blind people, and disabled peacetime veterans practice trades or run businesses in any county or city without paying local occupation taxes, administrative fees, or regulatory fees, as long as they get a certificate of exemption from the commissioner of veterans service. This bill updates that law (O.C.G.A. Chapter 12 of Title 43) by adding a definition of 'armed conflict' that matches a federal regulation (38 C.F.R. Section 3.2) as it existed on January 1, 2025, so veterans of conflicts that were not formally declared wars can still qualify. The bill also removes an old requirement that applicants prove they owe no state income taxes, raises the disability threshold for peacetime veterans from 25 percent to 30 percent, and requires applicants to use specific Department of Veterans Service forms (VS Form 40-025 and VS Form 40-026) when applying through their county probate court. The certificate of eligibility remains valid for ten years.
What the bill does
- Adds a definition of 'armed conflict' matching a federal veterans regulation (38 C.F.R. Section 3.2) so veterans of undeclared conflicts, not just formally declared wars, can qualify for the tax exemption.
- Removes the old requirement that applicants prove they are Georgia residents with no state income tax liability before receiving the exemption.
- Raises the disability threshold required for peacetime veterans to qualify for the exemption from 25 percent to 30 percent.
- Requires veterans to apply using the Department of Veterans Service's VS Form 40-025 and receive a VS Form 40-026 certificate to file with their county tax office.
- Removes the requirement that applicants swear an affidavit before the probate judge that they owe no state income taxes.
- Keeps the ten-year validity period for a certificate of eligibility once issued.
Who it affects
Disabled veterans, blind individuals, and disabled peacetime veterans who peddle, run businesses, or practice professions in Georgia; county probate court judges who process applications; the Department of Veterans Service and its commissioner; and county tax offices and the Secretary of State's Office, which receive the new veteran certification forms.
Why it matters
Veterans of conflicts that were never formally declared wars could newly qualify for exemption from local occupation taxes and fees, while peacetime veterans would need a higher disability rating to qualify. The change also drops an outdated income-tax proof requirement, simplifying the application process through standardized state forms.
Key provisions
- Section 1 revises O.C.G.A. § 43-12-1 to define 'armed conflict' using the federal definition in 38 C.F.R. Section 3.2 as it existed on January 1, 2025, treating armed conflicts the same as wars for exemption purposes.
- Section 2 revises O.C.G.A. § 43-12-2 to delete the requirement that applicants prove Georgia residency and no state income tax liability, and raises the disability threshold for peacetime veterans from 25 percent to 30 percent.
- Section 2 also replaces the old reference to a 1933 federal law defining 'war period' with the new armed conflict definition tied to federal regulation.
- Section 3 revises O.C.G.A. § 43-12-3 to require applicants to file the Department of Veterans Service's VS Form 40-025 with the probate court and removes the affidavit requirement about state income taxes.
- Section 3 also directs the commissioner of veterans service to issue a VS Form 40-026 certificate, which the veteran files with the local county tax office for submission to the Secretary of State's Office.
- Section 3 keeps the certificate of eligibility valid for ten years from the date of issue.
- Section 4 repeals any conflicting laws.
From the bill
“Any disabled veteran of any war or armed conflict as defined in 38 C.F.R. Section 3.2, as it existed on January 1, 2025, in which any branch of the armed forces of the United States engaged, whether under United States command or otherwise”
Discussed in meetings (9)
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.
House Regulated Industries Committee, February 2, 2026
From 0:20:42 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 632 would clarify disabled veterans’ exemptions from occupation taxes, administrative fees and regulatory fees, making access consistent statewide. The Georgia Department of Veterans Services commissioner said ambiguous income-tax language had led some probate judges to deny exemptions while others approved them. The commissioner said the bill would clarify that language, link wartime-service definitions to federal law, and change the peacetime disability threshold from 25% to 30% because VA ratings use increments of 10. The commissioner also described a standardized process involving department verification, probate court and the county tax commissioner. One committee member asked whether the bill simply delivered benefits already intended for veterans, and the commissioner agreed. Another member criticized local handling of federal benefits and paid services that compete with free state assistance. A third member requested information about probate courts denying exemptions. The sponsor responded that unclear legislation and the lack of a standard process, rather than particular judges, were the problem. The committee approved a do-pass motion by voice vote, with no count stated.
House Rules Committee, February 9, 2026
From 0:47:16 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The committee placed HB 632 on the February 9 floor calendar after a motion and second, with no opposition voiced. The bill's contents were not discussed.
House floor session, February 9, 2026 (legislative day 15)
From 1:46:51 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 485
Summary by Georgia Commons: The sponsor said HB 632 would clarify disabled veterans' existing exemption from occupational taxes, update eligible service dates to match federal law and establish a formal process through the Georgia Department of Veterans Services. One member asked whether raising the disability-rating threshold from 25 to 30 percent would remove anyone's exemption. The sponsor said it would not, explaining that the VA assigns ratings in multiples of 10 and rounds 25 percent up to 30. A second member said the bill would help disabled veterans work and start small businesses, and the sponsor agreed. The House passed the bill 169 to 0.
Senate Veterans, Military, and Homeland Security Committee, March 24, 2026
From 1:05:47 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the bill clarifies disabled veterans’ eligibility for exemptions from certain business occupation taxes, administrative fees and regulatory fees. The sponsor said inconsistent interpretations had prevented some veterans from receiving the benefit. The Department of Veterans Service commissioner said some probate judges had interpreted existing language to require payment of state income tax, which the commissioner said was not intended. The commissioner said the bill uses federal definitions of veteran and wartime service and clarifies the process involving probate judges, the department and local tax commissioners. No substantive questions were asked. The committee approved the bill by voice vote.
Senate Rules Committee, March 25, 2026
From 0:33:00 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The presenter said HB 632 would clarify an existing occupational tax exemption for disabled veterans. No substantive discussion or action followed.
Senate Rules Committee, March 30, 2026
From 0:47:58 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 632, requested by the Department of Veterans Service, clarified an existing occupational-tax benefit for disabled veterans. The presentation provided no further details. It was not included in the final calendar.
Status timeline
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Withdrawn, Recommitted (House)
- House Committee Favorably Reported (House)
Show full history (11 actions)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Josh Bonner (R, HD-73)
- David Jenkins (R, HD-136)
- Shaw Blackmon (R, HD-146)
- Scott Holcomb (D, HD-101)
- Al Williams (D, HD-168)
- Dar'shun Kendrick (D, HD-95)
- Chuck Payne (R, SD-54)
Votes
- House voteFebruary 9, 2026
169 yea, 0 nay (1 not voting, 7 excused)
Topics
- veterans benefits
- occupation taxes
- business licensing
- disabled veterans