HB1018: HB1018 Sales and use tax; exempt sales of clothing and school related supplies during the month of August each year

Georgia previously had a sales tax holiday for back-to-school shopping, and this bill would revive it on a permanent, recurring basis. It amends Georgia's sales and use tax exemptions law (O.C.G.A. § 48-8-3) so that sales of clothing and school related supplies (referred to in the law as 'eligible property') are exempt from state sales and use tax every year from August 1 through August 31, instead of the older one-time July 30 to July 31, 2016 window listed in current law. The bill also amends Georgia's motor fuel excise tax law (O.C.G.A. § 48-9-3) to add a new exemption: all sales of motor fuel would be exempt from the excise tax during that same August 1 through August 31 period each year. The bill repeals any conflicting laws but does not state a separate effective date beyond the amended text itself.

• Restores and makes permanent a sales and use tax exemption for clothing and school related supplies during August of each year, updating outdated 2016 dates in current law.
• Adds a brand new tax exemption so that all sales of motor fuel are excused from Georgia's excise tax during the month of August every year.
• Changes the language in O.C.G.A. § 48-9-3 to insert this new fuel exemption as paragraph (13), adjusting punctuation in the surrounding list of exemptions.
• Repeals any existing state laws that conflict with these new tax exemption rules.

Georgia shoppers buying clothing and school supplies, retailers who collect sales tax, drivers and motor fuel sellers who pay or collect the fuel excise tax, and the state revenue system that relies on sales and fuel tax collections.

Georgia families would pay no state sales tax on clothing and school supplies bought in August, and no excise tax on motor fuel bought that month, potentially lowering costs during back-to-school season, while the state would collect less tax revenue from those categories during that time.

• Section 1 rewrites O.C.G.A. § 48-8-3(75)(A) so the clothing and school supplies tax exemption runs from August 1 through August 31 every year, replacing the expired 2016 dates.
• Section 2 adds new paragraph (13) to O.C.G.A. § 48-9-3(b), exempting all motor fuel sales from the excise tax from August 1 through August 31 each year.
• Section 2 also makes technical wording changes, striking 'or' after paragraph (11) and changing the ending punctuation of paragraph (12) to fit the new paragraph (13).
• Section 3 repeals any conflicting laws, a standard provision ensuring this Act overrides inconsistent prior statutes.

1. 2026-01-29House Second Readers (House)
2. 2026-01-28House First Readers (House)
3. 2026-01-27House Hopper (House)

• Dar'shun Kendrick (D, HD-095)Primary sponsor
• David Wilkerson (D, HD-038)
• Stacey Evans (D, HD-057)
• Spencer Frye (D, HD-122)
• Regina Lewis-Ward (D, HD-115)
• Sandra Scott (D, HD-076)

• sales tax holiday
• school supplies
• clothing tax exemption
• motor fuel tax
• back to school shopping