SB 10: Sales and Use Taxes; any existing special district option sales and use tax (FLOST) cease to be imposed and levied immediately prior to the imposition of any local homestead option sales tax (LHOST); require

Georgia law currently allows counties to adopt a special district option sales and use tax, known as FLOST, and separately allows a local homestead option sales tax, known as LHOST, which funds property tax breaks for homeowners. As written, nothing in current law says what happens when both could apply to the same special district at once. This bill adds a new Code section stating that wherever a FLOST is already being collected in a special district that covers the same area as a county, that FLOST must stop being imposed at the very end of the day before a new LHOST starts being collected there. The bill also removes a January 1, 2028 start date that currently applies to when LHOST can begin, letting it start on whatever date local officials and voters otherwise set. The law would take effect as soon as the Governor signs it or it becomes law without a signature.

• Adds a new Code section (48-8-109.43) that automatically ends an existing FLOST (special district sales tax) in a county the instant a new LHOST (homestead tax relief sales tax) begins covering the same area.
• Prevents a FLOST and a LHOST from being collected in the same special district at the same time by making the FLOST's end automatic rather than requiring a separate vote or ordinance.
• Removes the requirement that LHOST could not begin before January 1, 2028, allowing it to start on an earlier timeline once otherwise authorized.
• Sets the effective date as the day the Governor signs the bill or it otherwise becomes law.

County governments and other eligible local governments that levy FLOST or LHOST taxes, homeowners who benefit from LHOST-funded property tax exemptions, and any local government or authority that currently relies on FLOST revenue for services within a special district.

Counties that already collect a FLOST for local projects would see that revenue stream end automatically once a LHOST homestead tax break program starts covering the same area, which could affect local budgets. Homeowners could see LHOST-funded property tax relief begin sooner since the 2028 start date is removed.

• Section 1 adds Code Section 48-8-109.43, stating a FLOST in a special district conterminous with a county ceases to be imposed as of the last moment before a LHOST begins in that same district.
• Section 1 specifies this override applies notwithstanding any existing resolution, ordinance, intergovernmental agreement, or referendum that authorized the FLOST.
• Section 2 revises O.C.G.A. § 48-8-109.52(a) by removing the requirement that LHOST could not begin before January 1, 2028.
• Section 3 makes the Act effective immediately upon the Governor's approval or upon becoming law without approval.
• Section 4 repeals any conflicting laws.

1. 2026-06-23Senate Read and Referred (Senate)
2. 2026-06-22Senate Hopper (Senate)

• Chuck Hufstetler (R, SD-052)Primary sponsor
• Blake Tillery (R, SD-019)
• Matt Brass (R, SD-006)
• Drew Echols (R, SD-049)
• Marty Harbin (R, SD-016)
• John Albers (R, SD-056)
• Carden Summers (R, SD-013)
• Randy Robertson (R, SD-029)
• Ed Setzler (R, SD-037)
• Ricky Williams (R, SD-025)
• Lanny Thomas (R, SD-053)
• Chuck Payne (R, SD-054)
• Bill Cowsert (R, SD-046)
• Mike Hodges (R, SD-003)
• Bo Hatchett (R, SD-050)
• Jason T. Dickerson (R, SD-021)
• Billy Hickman (R, SD-004)
• Lee Anderson (R, SD-024)
• Russ Goodman (R, SD-008)
• Clint Dixon (R, SD-045)

• sales tax
• property tax relief
• local government finance
• homestead exemption
• county taxes