---
title: O.C.G.A. § 36-62-3. Constitutional authority for chapter; finding of public purposes; tax exemption.
collection: code
id: 36-62-3
cite_as: O.C.G.A. § 36-62-3 (2025)
canonical_url: https://georgiacommons.org/code/36-62-3
md_url: https://georgiacommons.org/code/36-62-3.md
text_url: https://georgiacommons.org/code/36-62-3/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t36-ch60-92-(v27a)-2025-pdf.pdf?sfvrsn=1fad51cc_0#page=115
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
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publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
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current_through: Including Acts of the 2025 Session of the General Assembly of Georgia
heading_path: LOCAL GOVERNMENT / Provisions Applicable to Counties and Municipal Corporations / DEVELOPMENT AUTHORITIES / GENERAL PROVISIONS
---

# O.C.G.A. § 36-62-3. Constitutional authority for chapter; finding of public purposes; tax exemption.

This chapter is passed pursuant to authority granted the General Assembly by Article IX, Section VI, Paragraph III of the Constitution of this state. Each authority created by this chapter is created for nonprofit and public purposes, and it is found, determined, and declared that the creation of each such authority and the carrying out of its corporate purposes is in all respects for the benefit of the people of this state and that the authority is an institution of purely public charity and will be performing an essential governmental function in the exercise of the power conferred upon it by this chapter. For such reasons, the state covenants, from time to time, with the holders of the bonds issued under this chapter that such authority shall be required to pay no taxes or assessments imposed by the state or any of its counties, municipal corporations, political subdivisions, or taxing districts upon any property acquired by the authority or under its jurisdiction, control, possession, or supervision or leased by it to others (other than property leased for the purposes of a “project” as defined in subparagraph (J) or (K) of paragraph (6) of Code Section 36-62-2, which shall be taxable by the state and its counties, municipal corporations, political subdivisions, and taxing districts) or upon its activities in the operation or maintenance of any such property or on any income derived by the authority in the form of fees, recording fees, rentals, charges, purchase price, installments, or otherwise, and that the bonds of such authority, their transfer, and the income therefrom shall at all times be exempt from taxation within this state. The tax exemption provided in this Code section shall not include any exemption from sales and use tax on property purchased by the authority or for use by the authority.

## History

Ga. L. 1963, p. 531, § 13; Ga. L. 1969, p. 137, § 10; Ga. L. 1979, p. 413, § 2; Ga. L. 1980, p. 1332, § 2; Ga. L. 1983, p. 3, § 57; Ga. L. 1987, p. 3, § 36; Ga. L. 1992, p. 6, § 36.

## Cross References

Prepayment of ad valorem or school taxes by developers of major industrial projects, § 48-5-31.

## Editor's Notes

Ga. L. 1979, p. 413, § 3, which Act amended this section, provides that if any provision of § 1 or § 2 of the Act is held to be invalid or inoperative, the remaining provisions of the Act shall be deemed to be void and of no effect.

Ga. L. 1980, p. 1332, § 3, which Act amended this section, provides that if any part of the Act is declared or adjudged invalid or unconstitutional, such adjudication shall affect the other parts of the Act, which shall thereafter be of no force and effect.

## Law Reviews

For article, “Tax-Exempt Financing of Section 8 Housing Projects,” see 15 Ga. St. B.J. 68 (1978).

For article discussing the role of Georgia development authorities in tax-exempt financing of private business, see 16 Ga. St. B.J. 8 (1979).

For article discussing tax-exempt financing in Georgia, see 18 Ga. St. B.J. 20 (1981).