---
title: HB 942. Ad valorem tax; public property owned by a political subdivision outside of its territorial limits; limit an exemption
collection: bills
id: 2025-2026/hb942
cite_as: HB 942, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb942
md_url: https://georgiacommons.org/bills/2025-2026/hb942.md
text_url: https://georgiacommons.org/bills/2025-2026/hb942/text
source_url: https://www.legis.ga.gov/legislation/72140
date: 2026-03-04
status: introduced
corpus_version: bills-2026-09-13
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: 333
omitted_url: https://georgiacommons.org/bills/2025-2026/hb942.md?full=1
bill_number: HB 942
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-01-12
last_action: House Postponed
sponsors:
  - Rhonda Burnough
  - Eric Bell
  - Sandra Scott
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB942/2025
upstream_id: 2071933
summaries_model: claude-sonnet-5
topic_tags:
  - property taxes
  - ad valorem tax
  - local government finance
  - tax exemptions
---

# HB 942. Ad valorem tax; public property owned by a political subdivision outside of its territorial limits; limit an exemption

## Text

House Bill 942
By: Representatives Burnough of the 77th, Bell of the 75th, Flournoy of the 74th, and Scott of
the 76th
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 48-5-41 of the Official Code of Georgia Annotated, relating to
property exempt from ad valorem taxation, so as to limit an exemption from ad valorem
taxation for public property owned by a political subdivision outside of its territorial limits
that is developed by grading or other improvements to the extent of at least 25 percent of the
total land area and has facilities actively used for a public or governmental purpose; to
provide for an effective date; to provide for related matters; to repeal conflicting laws; and
for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Code Section 48-5-41 of the Official Code of Georgia Annotated, relating to property exempt
from ad valorem taxation, is amended by revising subparagraph (a)(1)(B) as follows:
"(B) No public real <ins>or personal</ins> property which is owned by a political subdivision of
this state and which is situated outside the territorial limits of the political subdivision
shall be exempt from ad valorem taxation unless the property is:
(i) Developed by grading or other improvements to the extent of at least 25 percent
of the total land area and facilities are located on the property which are actively used
for a public or governmental purpose; <ins>provided, however, that on and after
January 1, 2027, such property shall only be entitled to an exemption equal to 60
percent of its fair market value;
</ins> (ii) Three hundred acres or less in area;
(iii) Located inside a county embracing all or part of a municipality owning such
property; or
(iv) That portion of any real property which has been designated as a watershed by
the United States Soil and Water Conservation Service and used as a watershed by the
political subdivision owning the property."
SECTION 2.
All laws and parts of laws in conflict with this Act are repealed.

## 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.

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.

### Plain-language summary

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 it 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.

## Status

- Status: Introduced (2026-01-12)
- Last action: House Postponed (2026-03-04)
- Sponsors: Rhonda Burnough, Eric Bell, Sandra Scott
- Official page: https://www.legis.ga.gov/legislation/72140

> The history, votes, and amendments (333 characters) are at https://georgiacommons.org/bills/2025-2026/hb942.md?full=1