HB1100: HB1100 Sales and use tax; new special purpose local option sales tax dedicated to healthcare purposes; provide

Georgia law already allows several kinds of special purpose local option sales taxes (SPLOSTs) for things like roads, schools, and general capital projects. This bill adds a new one, found in a new Part 4 of Chapter 8 of Title 48 of the Georgia code, aimed specifically at healthcare. It applies to municipalities or counties whose boundaries match their county special district, meaning consolidated city-county governments. The governing authority could call a referendum asking voters to approve a 1 percent sales and use tax for up to five years, with proceeds used only for hiring healthcare providers, building or upgrading healthcare facilities and equipment, and related programs. Money collected has to be kept in a separate account and cannot replace existing healthcare funding. The state revenue commissioner would collect the tax, keep 1 percent for administration costs, and could withhold funds if a local government misuses the money. The bill would take effect immediately if signed by the Governor.

• Creates a new local sales tax option under a new Part 4 of Georgia's sales tax code, allowing consolidated city-county governments to impose a 1 percent sales and use tax dedicated to healthcare.
• Requires voter approval through a referendum before the tax can be imposed, with the ballot language and election procedures spelled out in the bill.
• Limits how the tax revenue can be spent to 'healthcare enhancement purposes,' including hiring healthcare providers, upgrading facilities and equipment, and related training programs.
• Caps the tax at 1 percent, limits it to a maximum of five years, and bars local governments from using the new revenue to replace money they already spend on healthcare.
• Gives the state revenue commissioner authority to withhold tax proceeds from a local government that misuses the funds, and to hold the money in trust for healthcare purposes if the problem is not fixed within 180 days.
• Adds this new healthcare tax to the list of local sales taxes counted toward Georgia's existing 1 percent aggregate cap on certain local sales taxes.

Consolidated city-county governments in Georgia (municipalities or counties whose boundaries match their special tax district), local voters who would decide the referendum, healthcare providers such as doctors, nurses, dentists, and therapists who could be hired or trained with the funds, and the Georgia Department of Revenue, which would collect and oversee the tax.

If approved locally, residents of a consolidated government area could see a new 1 percent sales tax on most purchases, with the money legally required to go toward hiring healthcare workers, upgrading medical facilities, or expanding healthcare programs rather than general government spending.

• Section 1 revises O.C.G.A. § 48-8-6 to add this new healthcare tax to the existing 1 percent aggregate cap on certain local sales and use taxes.
• Section 2 creates new Code Sections 48-8-170 through 48-8-184 establishing the tax, defining 'healthcare enhancement purposes' and 'healthcare provider,' and setting the tax at 1 percent for up to five years.
• The tax can only be imposed after voter approval in a referendum with specific ballot language asking whether to approve the tax and for how long.
• Proceeds must be kept in a separate account, cannot replace existing healthcare funding, and must be reported in the local government's annual audit.
• The state revenue commissioner collects the tax, keeps 1 percent for administrative costs, and distributes the rest to the local government.
• The commissioner can withhold or redirect the funds into a state-held trust if a local government does not use the money for healthcare purposes as required.
• The bill exempts certain construction materials under contracts bid before voter approval and exempts goods delivered outside the taxing jurisdiction.
• Section 3 makes the Act effective immediately upon the Governor's signature or upon becoming law without the Governor's signature.

1. 2026-02-03House Second Readers (House)
2. 2026-02-02House First Readers (House)
3. 2026-01-29House Hopper (House)

• Eric Bell (D, HD-075)Primary sponsor
• Spencer Frye (D, HD-122)
• Bryce Berry (D, HD-056)
• Sheila Jones (D, HD-060)
• Patty Stinson (D, HD-150)
• Yasmin Neal (D, HD-079)

• sales tax
• healthcare funding
• local option sales tax
• consolidated governments
• county referendums