HB 942: Ad valorem tax; public property owned by a political subdivision outside of its territorial limits; limit an exemption

Under current Georgia law (O.C.G.A. § 48-5-41), public property owned by a city, county, or other political subdivision is normally exempt from property taxes even when it sits outside that government's own borders, as long as at least 25 percent of the land has been graded or improved and has facilities actively used for a public or governmental purpose. This bill keeps that exemption in place but caps it starting January 1, 2027. From that date forward, qualifying property would only be exempt on 60 percent of its fair market value, meaning the remaining 40 percent could be taxed like ordinary property. The bill also extends the exemption rule to cover personal property, not just real property (land and buildings), owned by a political subdivision outside its territorial limits.

• Limits the existing property tax exemption for out-of-territory public property so that, starting January 1, 2027, only 60 percent of its fair market value stays exempt.
• Leaves the other three existing exemption categories (300 acres or less, inside a county containing the owning municipality, or designated watershed land) untouched and fully exempt.
• Expands the exemption rule to cover personal property (movable property) in addition to real property owned by a political subdivision outside its own borders.
• Applies only to property that is at least 25 percent developed and actively used for a public or governmental purpose.

Cities, counties, and other political subdivisions in Georgia that own developed property, such as airports, landfills, or utility facilities, located outside their own boundaries; county tax assessors and tax commissioners who administer these exemptions; and local governments that host such property and could gain new taxable value.

Local governments that own developed land outside their own borders would start paying property taxes on 40 percent of that land's value after January 1, 2027, instead of none. This could shift revenue toward the counties or cities where the property sits, while raising costs for the owning government.

• Section 1 amends O.C.G.A. § 48-5-41(a)(1)(B) to add 'or personal' property to the types of out-of-territory property subject to the exemption rules.
• Section 1 adds a new provision under item (i) stating that, on and after January 1, 2027, developed public property used for public purposes is entitled to an exemption on only 60 percent of its fair market value.
• The three other existing exemption grounds (300 acres or less, located in a county embracing the owning municipality, or designated watershed land) remain unchanged and fully exempt.
• Section 2 repeals any conflicting laws, a standard closing provision.

1. 2026-03-04House Postponed (Cámara de Representantes)
2. 2026-03-03House Postponed (Cámara de Representantes)
3. 2026-02-26House Postponed (Cámara de Representantes)
4. 2026-02-25House Postponed (Cámara de Representantes)
5. 2026-02-24House Committee Favorably Reported (Cámara de Representantes)
6. 2026-01-14House Second Readers (Cámara de Representantes)
7. 2026-01-13House First Readers (Cámara de Representantes)
8. 2026-01-12House Hopper (Cámara de Representantes)

• Rhonda Burnough (D, HD-077)Patrocinador principal
• Eric Bell (D, HD-075)
• Sandra Scott (D, HD-076)

• property taxes
• ad valorem tax
• local government finance
• tax exemptions