Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
HB 942: Ad valorem tax; public property owned by a political subdivision outside of its territorial limits; limit an exemption
Last action March 4, 2026 · House Postponed
A Georgia House bill would partially remove a property tax exemption for land a city or county owns outside its own borders, once that land is developed and used for public purposes.
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
Under current Georgia law (O.C.G.A. § 48-5-41), public property owned by a city, county, or other political subdivision is normally exempt from property taxes even when it sits outside that government's own borders, as long as at least 25 percent of the land has been graded or improved and has facilities actively used for a public or governmental purpose. This bill keeps that exemption in place but caps it starting January 1, 2027. From that date forward, qualifying property would only be exempt on 60 percent of its fair market value, meaning the remaining 40 percent could be taxed like ordinary property. The bill also extends the exemption rule to cover personal property, not just real property (land and buildings), owned by a political subdivision outside its territorial limits.
What the bill does
- Limits the existing property tax exemption for out-of-territory public property so that, starting January 1, 2027, only 60 percent of its fair market value stays exempt.
- Leaves the other three existing exemption categories (300 acres or less, inside a county containing the owning municipality, or designated watershed land) untouched and fully exempt.
- Expands the exemption rule to cover personal property (movable property) in addition to real property owned by a political subdivision outside its own borders.
- Applies only to property that is at least 25 percent developed and actively used for a public or governmental purpose.
Who it affects
Cities, counties, and other political subdivisions in Georgia that own developed property, such as airports, landfills, or utility facilities, located outside their own boundaries; county tax assessors and tax commissioners who administer these exemptions; and local governments that host such property and could gain new taxable value.
Why it matters
Local governments that own developed land outside their own borders would start paying property taxes on 40 percent of that land's value after January 1, 2027, instead of none. This could shift revenue toward the counties or cities where the property sits, while raising costs for the owning government.
Key provisions
- Section 1 amends O.C.G.A. § 48-5-41(a)(1)(B) to add 'or personal' property to the types of out-of-territory property subject to the exemption rules.
- Section 1 adds a new provision under item (i) stating that, on and after January 1, 2027, developed public property used for public purposes is entitled to an exemption on only 60 percent of its fair market value.
- The three other existing exemption grounds (300 acres or less, located in a county embracing the owning municipality, or designated watershed land) remain unchanged and fully exempt.
- Section 2 repeals any conflicting laws, a standard closing provision.
From the bill
“such property shall only be entitled to an exemption equal to 60 percent of its fair market value”
Discussed in meetings (10)
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 Ways & Means Committee, February 23, 2026
From 2:40:03 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 942 would limit the tax exemption for Atlanta-owned airport property in Clayton County, arguing the county lost taxable land through airport expansion while continuing to provide services. A Clayton County representative emphasized taxing private commercial uses and said the proposal was not aimed at runways or terminal buildings. Members clarified that the proposed exemption was 60% and asked about leased facilities and governmental versus private uses. An airport government-affairs representative opposed the change, saying property taxes would divert revenue from infrastructure, safety improvements and debt repayment. The witness warned of higher landing fees and terminal rents, possible passenger cost increases and reduced competitiveness. Asked whether a different exemption level would be acceptable, the witness offered no alternative. The sponsor reiterated that Clayton County needed revenue for airport-related service costs. Members discussed the balance between the airport's statewide role and the county's expenses. The subcommittee waived the additional hearing requirement and approved the bill by voice vote, with no opposition heard.
House Ways & Means Committee, February 24, 2026
From 0:16:41 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the measure would limit the tax exemption for Atlanta-owned airport property outside city limits, arguing that Clayton County taxpayers bear costs while Atlanta receives revenue from property used partly for nongovernmental purposes. The sponsor estimated annual revenue of $34.6 million for Clayton County, its schools and seven cities, plus $12.4 million for College Park. The sponsor ultimately described the proposal as retaining a 60% exemption and taxing the remaining 40%, with no state cost. Members questioned how other airports are taxed, who owns the airport, existing payments, services and possible World Cup effects. The sponsor identified Atlanta as the owner, said Clayton receives some money but not the property taxes sought, and did not expect a World Cup impact. The sponsor said Atlanta handles policing inside the airport while Clayton handles outside services and court cases. Other speakers identified police, courts and fire services. A member questioned taxing government-owned property, and the chair said the prior discussion distinguished this proposal from real property taxation, without further explanation. The measure initially failed a show-of-hands vote. After a recess, the committee voted to reconsider and then passed it, with opposition voiced but no totals announced.
House Rules Committee, February 25, 2026
From 0:28:23 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1580
Summary by Georgia Commons: The sponsor said HB 942 would allow Clayton County to collect property taxes on public property at Hartsfield-Jackson International Airport. The sponsor said the airport had been in the county for 80 years without the county being able to collect those taxes. The chair noted that the bill remained on the general calendar, heard the presentation and took no further action shown.
House floor session, February 25, 2026 (legislative day 24)
From 5:30:11 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Postponed)
Summary by Georgia Commons: The chair announced that consideration of HB 942 was postponed until the next legislative day. No substantive discussion or vote was shown.
House Rules Committee, February 25, 2026
From 0:22:12 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1580
Summary by Georgia Commons: The chair initially declared HB 942 added to the supplemental calendar under modified structure after a motion and second, with no immediate opposition. Speakers then noted that the bill had been requested that morning. A committee member objected, prompting a voice vote with both ayes and noes. The chair again declared it added. No vote count or discussion of the bill's provisions was given.
House floor session, February 26, 2026 (legislative day 25, PM)
From 1:01:34 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair announced that HB 942 would be postponed until the next legislative day. No substantive discussion occurred.
House floor session, March 3, 2026 (legislative day 26, PM)
From 6:02:01 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Postponed)
Summary by Georgia Commons: The chair announced that HB 942 would be postponed to the next legislative day. There was no substantive discussion.
House floor session, March 4, 2026 (legislative day 27, PM, part 2)
From 2:48:30 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Postponed)
Summary by Georgia Commons: The chair announced that HB 942 would be postponed until the next legislative day, Friday. No substantive discussion occurred.
Status timeline
- House Postponed (House)
- House Postponed (House)
- House Postponed (House)
- House Postponed (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Rhonda Burnough (D, HD-77)
- Eric Bell (D, HD-75)
- Sandra Scott (D, HD-76)
Topics
- property taxes
- ad valorem tax
- local government finance
- tax exemptions