HB1261: HB1261 Revenue and taxation; level 1 freeport exemptions for certain goods in inventory for electric utilities; provide

Georgia's level 1 freeport exemption already lets counties and cities exempt certain business inventory, like manufacturing goods and warehouse stock, from property taxes (ad valorem tax) if local voters approve it in a referendum. This bill adds a new category to that program specifically for electric utilities. It amends O.C.G.A. § 48-5-48.1 to require that freeport exemption applications include a summary of finished goods and parts an electric utility holds for building, improving, repairing, or maintaining electric generation, distribution, or transmission infrastructure in the state. It also amends O.C.G.A. § 48-5-48.2 to add electric utility equipment, things like transformers, poles, cable, turbines, and switchgear, to the list of inventory types local governments can choose to exempt from property tax. Equipment already installed and in use in an operating facility would not qualify. The bill repeals any conflicting laws.

• Adds electric utility equipment and parts held in inventory to the list of property types eligible for Georgia's level 1 freeport property tax exemption.
• Requires freeport exemption applications to include a summary of finished goods and parts an electric utility holds for building or maintaining generation, distribution, or transmission infrastructure.
• Lists specific covered items such as motors, turbines, boilers, transformers, cable, poles, and switchgear held in inventory by an electric utility for normal business use in the state.
• Excludes equipment already incorporated into operating electric generation, distribution, or transmission facilities from the exemption.
• Leaves the decision to grant the exemption with local governments, which must still get voter approval through a referendum before adopting it.

Electric utilities operating in Georgia, which could see property tax relief on equipment held in inventory; county and municipal governments, which would decide whether to offer the exemption and must hold a referendum; and local voters, who would need to approve the change before it applies.

If a county or city adopts this exemption after voter approval, electric utilities there would pay less property tax on equipment and parts sitting in inventory before installation, which could affect local tax revenue and how utilities manage their supply stock in that jurisdiction.

• Section 1 revises O.C.G.A. § 48-5-48.1(b) to require a new application summary covering electric utility finished goods and parts destined for generation, distribution, or transmission infrastructure work.
• Section 2 revises O.C.G.A. § 48-5-48.2(c) by adding paragraph (5), letting local governing authorities exempt inventory of electric utility equipment such as transformers, poles, cable, and switchgear from property tax, subject to referendum approval.
• Section 2 specifies that equipment already incorporated into operating electric generation, distribution, or transmission facilities does not qualify for the exemption.
• Section 3 repeals any laws that conflict with the Act.

1. 2026-05-11Effective Date 2026-07-01
2. 2026-05-11Act 483
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-06House Sent to Governor (House)
5. 2026-03-20Senate Passed/Adopted (Senate)
6. 2026-03-20Senate Third Read (Senate)
7. 2026-03-20Senate Engrossed (Senate)
8. 2026-03-19Senate Read Second Time (Senate)

• David Huddleston (R, HD-072)Primary sponsor
• Robert Dickey (R, HD-134)
• Bruce Williamson (R, HD-112)
• Spencer Frye (D, HD-122)
• Charles Cannon (R, HD-172)
• Brad Thomas (R, HD-021)
• Matt Brass (R, SD-006)

1. PassedHouse voteMarch 6, 2026

   100 yea, 66 nay (4 not voting, 7 absent)

   Passage: House Vote #662

2. PassedSenate voteMarch 20, 2026

   29 yea, 19 nay (1 not voting, 5 absent)

   Motion To Engross: Senate Vote #762

3. PassedSenate voteMarch 20, 2026

   45 yea, 0 nay (2 not voting, 7 absent)

   Passage: Senate Vote #778

• property taxes
• freeport exemption
• electric utilities
• local government referendums