HB964: HB964 Revenue and taxation; state and local title ad valorem tax fee; exempt certain motor vehicles used in fire protection services for local governments

Georgia charges a title ad valorem tax fee (a one-time tax paid when a vehicle is titled) on most vehicles, and it charges sales tax on most purchases of goods. This bill changes both of those rules for certain nonprofit organizations that provide fire protection and other emergency services to counties, cities, or other local governments. Section 1 adds a new exemption so that vehicles owned or leased by a 501(c)(3) nonprofit and used substantially to carry out the general and emergency powers described in O.C.G.A. Sections 25-3-1 and 25-3-2 (powers tied to fire departments and emergency response for local governments) would not have to pay the state and local title tax fee. Section 2 revises a currently unused (reserved) part of the sales tax exemption law to exempt purchases of tangible personal property (physical goods and equipment) by those same nonprofit fire protection organizations from sales and use tax. Section 3 revises the definition of 'alternative nicotine product dealer' in the tobacco and vaping tax law. The bill repeals conflicting laws but does not state a specific effective date beyond the standard process.

• Exempts vehicles owned or leased by qualifying 501(c)(3) nonprofit organizations from the state and local title ad valorem tax fee when the vehicles are used substantially for local government fire protection and emergency powers.
• Revises a previously reserved (unused) paragraph in the sales tax exemption statute to exempt purchases of equipment and other tangible personal property by these same fire protection nonprofits from sales and use tax.
• Revises the definition of 'alternative nicotine product dealer' in Georgia's tobacco and vaping tax law to mean any person located in Georgia who sells or distributes alternative nicotine products to a consumer in the state.
• Repeals any existing state laws that conflict with these changes.

Nonprofit organizations that provide fire protection or emergency services under contract or arrangement with counties, cities, or other local governments; those local governments themselves; the Georgia Department of Revenue, which administers the title tax and sales tax; and sellers and dealers of alternative nicotine products.

Nonprofit fire protection providers serving local governments would save money by not paying title fees on their vehicles or sales tax on equipment purchases, potentially freeing up funds for emergency services. The tobacco law change also clarifies who counts as a dealer subject to related tax rules.

• Section 1 amends O.C.G.A. § 48-5C-1(d) to add paragraph (6.1), exempting vehicles owned or leased by qualifying 501(c)(3) nonprofits used substantially for fire protection and emergency powers (O.C.G.A. §§ 25-3-1, 25-3-2) from the title ad valorem tax fee.
• Section 2 amends O.C.G.A. § 48-8-3(26), previously reserved, to exempt sales of tangible personal property to these same qualifying nonprofit fire protection organizations from sales and use tax.
• Section 3 amends O.C.G.A. § 48-11-1(2) to revise the definition of 'alternative nicotine product dealer' to mean a person located in Georgia who sells or distributes alternative nicotine products to consumers in the state.
• 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

• vehicle taxes
• fire departments
• sales tax exemptions
• nonprofit organizations
• vaping and tobacco taxes