HB 632: Professions and businesses; clarify certain veterans' eligibility for exemption with regard to payment of occupation taxes, administrative fees, and regulatory fees

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.

• 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.

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.

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.

• 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.

1. 2026-03-25Senate Read Second Time (Senate)
2. 2026-03-25Senate Committee Favorably Reported (Senate)
3. 2026-02-10Senate Read and Referred (Senate)
4. 2026-02-09House Passed/Adopted (House)
5. 2026-02-09House Third Readers (House)
6. 2026-02-03House Committee Favorably Reported (House)
7. 2025-04-04House Withdrawn, Recommitted (House)
8. 2025-03-04House Committee Favorably Reported (House)

• Josh Bonner (R, HD-073)Primary sponsor
• 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-095)
• Chuck Payne (R, SD-054)

1. PassedHouse voteFebruary 9, 2026

   167 yea, 0 nay (1 not voting, 7 absent)

   Passage: House Vote #489

• veterans benefits
• occupation taxes
• business licensing
• disabled veterans