HB 964: Revenue and taxation; state and local title ad valorem tax fee; exempt certain motor vehicles used in fire protection services for local governments

Under current Georgia law, motor vehicles are generally subject to the state and local title ad valorem tax fee (a one-time tax paid when a vehicle is titled), and there is no clear sales tax exemption for equipment bought by nonprofit fire-service organizations. This bill changes that for a specific group: nonprofit organizations recognized as tax-exempt under Section 501(c)(3) of the federal tax code that provide fire protection or emergency services for a county, city, or other local government under Georgia's general and emergency powers laws (O.C.G.A. §§ 25-3-1 and 25-3-2). The bill exempts vehicles owned or leased by these organizations from the title ad valorem tax fee when the vehicles are used substantially for that fire and emergency service work. It also creates a sales and use tax exemption for tangible personal property (physical goods and equipment) sold to these organizations for the same purpose. A separate section also tweaks the definition of 'alternative nicotine product dealer' in the tobacco and vaping tax law, removing the requirement that the dealer be physically located in Georgia, so the definition now covers anyone selling to a consumer in the state regardless of where the seller is located.

• Exempts motor vehicles owned or leased by 501(c)(3) nonprofit organizations from the state and local title ad valorem tax fee when the vehicles are used substantially for fire protection or emergency services for a local government.
• Creates a sales and use tax exemption for tangible personal property sold to those same nonprofit organizations for use in providing fire protection or emergency services for a county, city, or other political subdivision.
• Removes the requirement that an 'alternative nicotine product dealer' be physically located within Georgia, so the tobacco and vaping tax law now covers any seller reaching a Georgia consumer.
• Repeals any existing laws that conflict with these changes.

Nonprofit organizations that provide fire protection or emergency services under contract or arrangement with counties and cities, local governments that rely on these nonprofit fire services, sellers of vehicles and equipment to those organizations, and out-of-state or online sellers of alternative nicotine and vaping products who reach Georgia consumers.

Nonprofit fire departments and similar emergency service organizations serving local governments would save money on vehicle titling fees and on purchases of equipment and supplies, potentially lowering their operating costs. The vaping law change would extend Georgia's dealer definition and tax obligations to out-of-state sellers who were not clearly covered before.

• Section 1 amends O.C.G.A. § 48-5C-1 to add a new exemption so vehicles owned or leased by 501(c)(3) organizations used substantially for county or city fire and emergency powers are not subject to the state and local title ad valorem tax fee.
• Section 2 amends O.C.G.A. § 48-8-3 to fill a previously 'reserved' exemption slot with a sales and use tax exemption for goods sold to those same nonprofit fire and emergency service organizations.
• Section 3 amends O.C.G.A. § 48-11-1's definition of 'alternative nicotine product dealer' by deleting the requirement that the dealer be located within Georgia's borders.
• Section 4 repeals any conflicting laws.

1. 2026-03-31Senate Tabled (Senate)
2. 2026-03-31Senate Engrossed (Senate)
3. 2026-03-19Senate Read Second Time (Senate)
4. 2026-03-18Senate Committee Favorably Reported By Substitute (Senate)
5. 2026-02-19Senate Read and Referred (Senate)
6. 2026-02-18House Passed/Adopted By Substitute (House)
7. 2026-02-18House Third Readers (House)
8. 2026-02-11House Committee Favorably Reported By Substitute (House)

• Charles Cannon (R, HD-172)Primary sponsor
• Johnny Chastain (R, HD-007)
• Lauren McDonald (R, HD-026)
• Al Williams (D, HD-168)
• Eddie Lumsden (R, HD-012)
• Bill Hitchens (R, HD-161)
• John Albers (R, SD-056)

1. PassedHouse voteFebruary 18, 2026

   162 yea, 4 nay (3 not voting, 6 absent)

   Passage: House Vote #526

2. PassedSenate voteMarch 31, 2026

   33 yea, 15 nay (2 not voting, 4 absent)

   Motion To Engross: Hb 52, Hb 248, Hb 963, Hb 964, Hb 1001, Hb 1077, Hb 1116, Hb 1129, Hb 1132, Hb 1209: Senate Vote #876

3. PassedSenate voteMarch 31, 2026

   39 yea, 10 nay (2 not voting, 3 absent)

   Motion To Table Remaining Legislation On The Rules Calendar: Senate Vote #912

• fire departments
• vehicle taxes
• sales tax exemptions
• vaping and tobacco taxes
• local government funding