HB1298: HB1298 Sales and use tax; exempt retail sale of electricity and natural gas for use by any residential property

Georgia currently taxes retail sales of electricity and natural gas under its sales and use tax law (O.C.G.A. Title 48). This bill would add a new exemption to that law so that electricity and natural gas sold for use by any residential property would no longer be subject to state sales and use tax. The exemption does not start right away. The bill says it begins on January 1 of the year following the repeal of a separate existing provision, paragraph (68.1) of the same tax code section, which apparently already addresses related exemptions in some form. Until that older provision is repealed, the new residential exemption in this bill would not take effect. The bill also repeals any conflicting laws.

• Adds a new exemption to Georgia's sales and use tax law (O.C.G.A. § 48-8-3) covering retail sales of electricity and natural gas for residential property.
• Delays the start of the new exemption until January 1 of the year after an existing tax code provision, paragraph (68.1), is repealed.
• Adjusts the punctuation and wording of two neighboring exemption paragraphs (104 and 105) to fit in the new one.
• Repeals any other Georgia laws that conflict with this change.

Georgia homeowners and renters who pay for electricity and natural gas at residential properties, along with utility companies that collect sales tax on those bills and the Georgia Department of Revenue, which administers the sales and use tax exemptions.

If the contingency is met, residential customers would no longer pay state sales tax on their electricity and natural gas bills, potentially lowering monthly utility costs. Because the exemption only starts after a separate provision is repealed, the actual savings and timing depend on that unrelated legislative action.

• Section 1 amends O.C.G.A. § 48-8-3 by adding paragraph (106), exempting retail sales of electricity and natural gas for residential property from sales and use tax.
• Section 1 sets the exemption's start date as January 1 of the year following the repeal of paragraph (68.1) of the same Code section.
• Section 1 also makes minor wording changes to paragraphs (104) and (105) to accommodate the new exemption.
• Section 2 repeals any laws that conflict with the bill.

1. 2026-02-18House Second Readers (House)
2. 2026-02-17House First Readers (House)
3. 2026-02-12House Hopper (House)

• Charles Cannon (R, HD-172)Primary sponsor
• John Corbett (R, HD-174)
• David Huddleston (R, HD-072)
• Trey Kelley (R, HD-016)
• Shaw Blackmon (R, HD-146)

• sales tax exemption
• utility bills
• residential energy costs
• Georgia tax law