SB584: SB584 Ad Valorem Tax; class action suits by taxpayers for refunds; prohibit

Under current Georgia law, taxpayers who believe they were charged property taxes or license fees illegally or by mistake can seek a refund from their county or municipality, and in some cases these refund claims or lawsuits have proceeded as class actions covering many taxpayers at once. This bill would end that practice. It amends Georgia's general class action rule (O.C.G.A. § 9-11-23) to carve out an exception for tax refund cases, and it adds a new provision to the tax refund law (O.C.G.A. § 48-5-380) stating that a claim, action, or suit for a refund cannot be submitted or maintained by a taxpayer on behalf of a class of other taxpayers. The rest of the existing refund process, including the one to three year filing deadlines, the option to skip a local hearing and sue directly, and the five year absolute deadline for filing suit, remains unchanged. The law would take effect as soon as the Governor signs it or it otherwise becomes law without his signature.

• Adds a new subsection to Georgia's local tax refund law (O.C.G.A. § 48-5-380) barring taxpayers from bringing or maintaining a refund claim, action, or suit on behalf of a class of other taxpayers.
• Revises Georgia's general class action statute (O.C.G.A. § 9-11-23) to exempt tax refund cases from the normal rule requiring court approval to dismiss or settle a class action.
• Leaves intact existing rules letting taxpayers file individual refund claims with a county or municipality within one to three years of payment, or sue directly without filing a claim first.
• Keeps the existing five year outer deadline for filing any refund suit and the existing 60 day payment window once a refund is approved.

Property owners and other taxpayers who pay county or municipal taxes and license fees in Georgia, local governments and their tax collection departments, and attorneys who currently bring or defend class action refund lawsuits against counties and municipalities over ad valorem (property) tax billing errors.

Taxpayers who believe they were overcharged would still be able to seek refunds, but only individually rather than by joining with others in a single class action lawsuit. This could make it harder or more expensive for taxpayers with small individual claims to pursue relief, while limiting counties' and municipalities' exposure to large combined refund judgments.

• Section 1 revises O.C.G.A. § 9-11-23(e) to exempt tax refund cases governed by the new subsection (h) of O.C.G.A. § 48-5-380 from the normal class action dismissal and settlement approval rule.
• Section 2 rewrites O.C.G.A. § 48-5-380 and adds subsection (h), stating a claim, action, or suit for refund 'shall not be submitted or maintained by the taxpayer on behalf of a class consisting of other taxpayers.'
• Section 2 preserves existing subsections allowing individual taxpayers to file refund claims within one to three years, to skip the local claim process and sue directly, and setting a five year absolute deadline for suit.
• Section 3 makes the Act effective immediately upon the Governor's approval or upon becoming law without his signature.
• Section 4 repeals all conflicting laws.

1. 2026-02-26Senate Read and Referred (Senate)
2. 2026-02-25Senate Hopper (Senate)

• Max Burns (R, SD-023)Primary sponsor
• Jason Anavitarte (R, SD-031)
• Jason T. Dickerson (R, SD-021)
• Brian Strickland (R, SD-042)
• Bo Hatchett (R, SD-050)
• Drew Echols (R, SD-049)
• Frank Ginn (R, SD-047)
• Billy Hickman (R, SD-004)
• Steve Gooch (R, SD-051)
• Lee Anderson (R, SD-024)
• Ben Watson (R, SD-001)
• Kay Kirkpatrick (R, SD-032)
• Sam Watson (R, SD-011)
• Ricky Williams (R, SD-025)

• property taxes
• tax refunds
• class action lawsuits
• local government taxation