HB1447: HB1447 Local government; comprehensive efficiency review of local taxing bodies; provide

Georgia currently has a local government efficiency grant program, but no requirement that local taxing bodies periodically review how efficiently they operate. This bill would add a new section to that law requiring every local taxing body, meaning any local government, school system, or special district that can levy property taxes, to conduct a comprehensive efficiency review every ten years starting January 1, 2027. The review must look at administrative costs, staffing, and technology compared to similarly sized jurisdictions, evaluate utility bond structures, assess whether consolidating operations with a neighboring or overlapping taxing body could cut administrative costs by at least 5 percent, and decide whether to pursue a formal consolidation feasibility study. The taxing body must adopt a public report on its findings by December 31 of the reporting year and submit it to the Department of Community Affairs. A taxing body that fails to submit the report becomes ineligible for state grants or funding until it does. The Department of Community Affairs would write rules for the report's format and could use its existing efficiency grant program to help fund the reviews.

• Requires every local taxing body (governments, school systems, and special districts that levy property taxes) to conduct an efficiency review every ten years starting January 1, 2027.
• Specifies the review must examine administrative costs, staffing, technology use, utility bond structures, and potential savings from consolidating with nearby taxing bodies.
• Requires a public, written report on the review's results submitted to the Department of Community Affairs by December 31 of the reporting year.
• Cuts off a local taxing body from state grants or funding if it fails to submit the required report, until it does so.
• Lets the Department of Community Affairs use the existing local government efficiency grant program (O.C.G.A. § 36-86-4) to help pay for these reviews.
• Directs the Department of Community Affairs to write rules setting the format for the reports.

Georgia's cities, counties, local school systems, and special districts that levy property taxes, along with the Department of Community Affairs, which will collect reports, write rules, and administer grant eligibility tied to compliance.

Local governments and school districts would face a new recurring paperwork and analysis requirement aimed at spotting cost savings, including possible consolidation with neighboring jurisdictions. Those that skip the report risk losing access to state grant funding, which could affect local budgets and services.

• Adds new O.C.G.A. § 36-86-5 to Chapter 86 of Title 36, defining 'local taxing body' as any local government, school system, or special district that levies ad valorem (property) taxes.
• Subsection (b) requires a comprehensive efficiency review every ten years beginning January 1, 2027, covering administrative costs, staffing, technology, utility bond structures, and consolidation potential.
• Subsection (c) and (d) require the taxing body to publish and submit a written report to the Department of Community Affairs, adopted no later than December 31 of the reporting year.
• Subsection (e) makes a taxing body ineligible for state grants or funding if it fails to submit the required report, until it does.
• Subsection (f) directs the Department of Community Affairs to set rules for the report's format and allows use of the existing efficiency grant program (O.C.G.A. § 36-86-4) to assist with review costs.
• Section 2 repeals any conflicting laws.

1. 2026-03-03House Committee Favorably Reported By Substitute (House)
2. 2026-02-25House Second Readers (House)
3. 2026-02-24House First Readers (House)
4. 2026-02-24House Hopper (House)

• Beth Camp (R, HD-135)Primary sponsor
• Karen Mathiak (R, HD-082)
• Bethany Ballard (R, HD-147)
• Leesa Hagan (R, HD-156)
• Brent Cox (R, HD-028)
• Mitchell Horner (R, HD-003)

• local government efficiency
• property taxes
• school system consolidation
• state grants
• government accountability