HB1209: HB1209 Sales and use tax; purchases of tangible property and construction materials used for or in the construction and furnishing of certain buildings; provide exemption

Georgia law generally charges sales and use tax on construction materials and property purchased for building projects. House Bill 1209 amends Georgia's list of sales and use tax exemptions (O.C.G.A. § 48-8-3) to add a narrow new exemption for tangible property and construction materials used to build and furnish buildings on a specific wharf lot and nearby improvements. The location must sit between 1,500 and 5,000 feet from a state-owned convention or meeting facility that has between 150,000 and 750,000 square feet of meeting space and is located on an island in a river that forms Georgia's state boundary. The exemption does not cover materials a contractor keeps after finishing construction. Buyers must still pay the tax up front and then file for a refund. The exemption runs from July 1, 2026 through June 30, 2033, or until total refunds under this provision reach $7 million, whichever happens first, and refunds will not include interest. The law takes effect once the Governor signs it or it otherwise becomes law.

• Adds a new sales and use tax exemption to Georgia law (O.C.G.A. § 48-8-3) for construction materials and property used to build and furnish a narrowly defined riverside building project.
• Limits the exemption to a specific location: a wharf lot and improvements within 1,500 to 5,000 feet of a large state-owned convention facility on a river-boundary island.
• Excludes from the exemption any construction materials a contractor still has in hand after the project is finished.
• Requires purchasers to pay the sales and use tax at purchase and then apply for a refund rather than getting an upfront exemption.
• Caps the total refunds allowed under this exemption at $7 million and ends the program by June 30, 2033, whichever comes first.
• Sets the exemption's start date as July 1, 2026, and states refunds issued under it will not include interest.

The exemption affects whoever builds and furnishes the specific wharf-area building described in the bill, likely a developer or public entity tied to a state-owned convention facility, along with contractors and suppliers providing construction materials for that project, and the Georgia Department of Revenue, which processes the refund claims.

For the specific project described, builders would recover sales tax paid on construction materials by filing refund claims, lowering the project's overall cost up to a $7 million cap. Because the location is defined so narrowly, the tax benefit would not extend to other Georgia construction projects.

• Section 1 amends O.C.G.A. § 48-8-3 by adding paragraph (105.1), creating the new exemption and specifying the qualifying location by distance and facility size.
• The exemption excludes materials still in a contractor's possession after construction is complete, preventing leftover materials from qualifying.
• The exemption applies from July 1, 2026 to June 30, 2033, or until $7 million in refunds have been paid, whichever comes first.
• Purchasers must pay tax upfront and file a refund claim to receive the benefit; no interest will be paid on those refunds.
• Section 2 sets the effective date as upon the Governor's approval or the bill otherwise becoming law.
• Section 3 repeals any conflicting laws.

1. 2026-05-11Effective Date 2026-05-11
2. 2026-05-11Act 467
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-07House Sent to Governor (House)
5. 2026-03-31Senate Passed/Adopted (Senate)
6. 2026-03-31Senate Third Read (Senate)
7. 2026-03-31Senate Engrossed (Senate)
8. 2026-03-27Senate Read Second Time (Senate)

• Ron Stephens (R, HD-164)Primary sponsor
• Shaw Blackmon (R, HD-146)
• Jesse Petrea (R, HD-166)
• Carl Gilliard (D, HD-162)
• Houston Gaines (R, HD-120)
• Ben Watson (R, SD-001)

1. PassedHouse voteMarch 3, 2026

   160 yea, 8 nay (7 not voting, 2 absent)

   Passage: House Vote #589

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

   42 yea, 8 nay (1 not voting, 3 absent)

   Passage: Senate Vote #910

• sales tax exemption
• construction materials
• convention facilities
• state tax law