HB 165: Income tax credit; business enterprises for leased motor vehicles; repeal and reserve

Georgia law already gives a 50 percent sales tax exemption on manufactured homes that are installed and then converted into real property within 30 days of sale. House Bill 165 keeps that basic exemption but rewrites the rules around it. It clarifies that within 30 days of the exempted sale, the seller must complete the conversion paperwork and file the Certificate of Permanent Location with the clerk of superior court, or the state revenue commissioner can recover 1.5 times the taxes that were exempted. The bill also says a manufactured home whose sale was tax exempt cannot get a Certificate of Removal from Permanent Location, or otherwise be converted back to personal property, unless the exempted taxes are repaid to the commissioner. It removes a section of current law that had blocked the exemption from applying to local sales taxes such as those tied to MARTA or special local sales taxes. The changes take effect July 1, 2026.

• Keeps the existing 50 percent sales tax exemption for manufactured homes that are installed and converted to real property within 30 days of sale.
• Requires sellers to file the Certificate of Permanent Location within 30 days of an exempted sale or face recovery of 1.5 times the exempted taxes by the state revenue commissioner.
• Bars a manufactured home that received the exemption from getting a Certificate of Removal from Permanent Location, or from otherwise reverting to personal property, unless the exempted taxes are repaid.
• Deletes a subparagraph that had excluded local sales and use taxes, such as MARTA's tax or various special local sales taxes, from the manufactured home exemption.
• Sets the effective date of the changes as July 1, 2026.

Manufacturers and sellers of manufactured homes, buyers who plan to convert a manufactured home into real property, county clerks of superior court who record the paperwork, and the Georgia Department of Revenue, which administers the exemption and can claw back taxes.

Sellers and buyers of manufactured homes get clearer deadlines and consequences for completing the paperwork that makes the tax break valid, and the change to local tax treatment could affect how much sales tax applies in areas with additional local sales taxes like MARTA's transit tax.

• Section 1 amends O.C.G.A. § 48-8-3(102), keeping the 50 percent exemption for a manufactured home installed and converted to real property within 30 days of sale.
• Section 1 defines 'manufactured home' as a structure on a permanent chassis with plumbing, heating, air conditioning, and electrical systems, at least 650 square feet, with an angled roof.
• Section 1 requires sellers to file the Certificate of Permanent Location within 30 days of the exempted sale, or the commissioner can recover 1.5 times the exempted tax amount from the seller.
• Section 1 blocks a home that got the exemption from later obtaining a Certificate of Removal from Permanent Location unless the exempted tax amount is repaid to the commissioner.
• Section 1 deletes former subparagraph (E), which had said the exemption did not apply to local sales taxes such as MARTA's tax or certain special local sales taxes.
• Section 2 sets the effective date as July 1, 2026.
• Section 3 repeals conflicting laws.

1. 2026-05-05Effective Date 2026-07-01
2. 2026-05-05Act 407
3. 2026-05-05House Date Signed by Governor (Cámara de Representantes)
4. 2026-04-10House Sent to Governor (Cámara de Representantes)
5. 2026-03-31House Agreed Senate Amend or Sub (Cámara de Representantes)
6. 2026-03-19Senate Passed/Adopted By Substitute (Senado)
7. 2026-03-19Senate Third Read (Senado)
8. 2026-03-19Senate Engrossed (Senado)

• Lehman Franklin (R, HD-160)Patrocinador principal
• Spencer Frye (D, HD-122)
• Al Williams (D, HD-168)
• William Werkheiser (R, HD-157)
• Mike Cameron (R, HD-001)
• Rick Townsend (R, HD-179)
• Chuck Hufstetler (R, SD-052)

1. AprobadaVotación: Cámara de Representantes3 de marzo de 2025

   173 a favor, 0 en contra (2 sin votar, 5 ausentes)

   Passage: House Vote #145

2. AprobadaVotación: Senado19 de marzo de 2026

   32 a favor, 20 en contra (0 sin votar, 2 ausentes)

   Motion To Engross: Senate Vote #746

3. AprobadaVotación: Senado19 de marzo de 2026

   46 a favor, 0 en contra (4 sin votar, 4 ausentes)

   Passage By Substitute: Senate Vote #751

4. AprobadaVotación: Cámara de Representantes31 de marzo de 2026

   166 a favor, 3 en contra (2 sin votar, 5 ausentes)

   Agree To Senate Substitute: House Vote #798

• manufactured homes
• sales tax exemption
• property taxes
• local sales taxes
• real estate conversion