25 LC 50 1265S
The Senate Committee on Finance offered the following
substitute to HB 66:
A BILL TO BE ENTITLED
AN ACT
To amend Article 2A of Chapter 8 of Title 48 of the Official Code of Georgia Annotated,1
relating to homestead option sales and use tax, so as to provide for an alternative homestead2
option sales and use tax; to provide for the distribution of the proceeds from the levy of such3
tax; to provide for the levy of a special purpose local option sales and use tax in certain4
counties; to provide for a referendum; to provide for procedures, conditions, and limitations;5
to provide for a short title; to provide for legislative intent; to provide for construction; to6
amend Code Section 48-5C-1 of the Official Code of Georgia Annotated, relating to7
alternative ad valorem taxation of motor vehicles and title ad valorem tax fee, so as to8
provide for an alternative method for payment of such ad valorem tax for certain modified9
rental vehicles; to provide for definitions; to provide for related matters; to repeal conflicting10
laws; and for other purposes.11
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12
SECTION 1.13
Article 2A of Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to14
homestead option sales and use tax, is amended by adding a new part to read as follows:15
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"Part 416
48-8-109.25.17
(a) This part shall be known and may be cited as the 'Alternative Homestead Option Sales18
and Use Tax Act of 2025.'19
(b) As used in this part, the term:20
(1) 'Existing municipality' means a municipality created prior to January 1, 2026, lying21
wholly within or partially within a county.22
(2) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40, with23
the additional qualification that it shall include only the primary residence and not more24
than five contiguous acres of land immediately surrounding such residence.25
(3) 'Qualified municipality' means a municipality created on or after January 1, 2026,26
lying wholly within or partially within a county.27
(c) It is the intent of the General Assembly that the proceeds of the alternative homestead28
option sales and use tax be distributed equitably to the counties and qualified municipalities29
such that the residents of a new incorporated municipality will continue to receive a benefit30
from that tax substantially equal to the benefit they would have received if the area covered31
by the municipality had not incorporated. The provisions of this part shall be liberally32
construed to effectuate such intent.33
48-8-109.26.34
(a) Pursuant to the authority granted by Article IX, Section II, Paragraph VI of the35
Constitution of this state, there are created within this state 159 special districts. The36
geographical boundary of each county shall correspond with and shall be conterminous37
with the geographical boundary of one of the 159 special districts.38
(b)(1) When the imposition of a local sales and use tax is authorized according to the39
procedures provided in this part within a special district, the county whose geographical40
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boundary is conterminous with that of the special district shall levy a local sales and use41
tax at the rate of 1 percent, except as provided in paragraph (2) of this subsection. Except42
as to rate, the local sales and use tax shall correspond to the tax imposed and administered43
by Article 1 of this chapter. No item or transaction which is not subject to taxation by44
Article 1 of this chapter shall be subject to the sales and use tax levied pursuant to this45
part, except that the sales and use tax provided for in this part shall be applicable to sales46
of motor fuels as prepaid local tax as such term is defined in Code Section 48-8-2 and47
shall be applicable to the sale of food and food ingredients and alcoholic beverages only48
to the extent provided for in paragraph (57) of Code Section 48-8-3.49
(2) Such sales and use tax levied on sales of motor fuels as defined in Code50
Section 48-9-2 shall be at the rate of 1 percent of the retail sales price of the motor fuel51
which is not more than $3.00 per gallon.52
(c) The proceeds of the sales and use tax levied and collected under this part shall be used53
only for the purposes of funding capital outlay projects and of funding services within a54
special district equal to the revenue lost to the homestead exemption as provided for in55
Code Section 48-8-109.27, and, in the event excess funds remain following the expenditure56
for such purposes, such excess funds shall be expended as provided in57
subparagraph (c)(2)(C) of Code Section 48-8-109.27.58
(d)(1) Such sales and use tax shall only be levied in a special district following the59
enactment of a local Act which provides for a homestead exemption of an amount to be60
determined from the amount of sales and use tax collected under this part. Such61
exemption shall commence with taxable years beginning on or after January 1 of the year62
immediately following the first complete calendar year in which the sales and use tax63
under this part is levied. Any such local Act shall incorporate by reference the terms and64
conditions specified under this part. Any such local Act shall not be subject to the65
provisions of Code Section 1-3-4.1. Any such homestead exemption under this part shall66
be in addition to and not in lieu of any other homestead exemption applicable to county67
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taxes for county purposes within the special district. Notwithstanding any provision of68
such local Act to the contrary, the referendum which shall otherwise be required to be69
conducted under such local Act shall only be conducted if the resolution required under70
this part is adopted prior to the issuance of the call for the referendum under the local Act71
by the election superintendent. If such ordinance is not adopted by that date, the72
referendum otherwise required to be conducted under the local Act shall not be73
conducted.74
(2) Such sales and use tax and the associated homestead exemption shall terminate ten75
years after the date such sales and use tax is first collected; provided, however, that76
nothing in this subsection shall prevent subsequent sales and use taxes or homestead77
exemptions from being adopted pursuant to this part in the same manner as provided in78
this part for the initial adoption of such sales and use tax and homestead exemption.79
(3) No sales and use tax shall be levied in a special district under this part in which a tax80
is levied and collected under Article 2 of this chapter.81
(e) Whenever the governing authority of any county whose geographical boundary is82
conterminous with that of the special district wishes to submit to the electors of the special83
district the question of whether the sales and use tax authorized by this part shall be84
imposed, any such governing authority shall notify the election superintendent of the85
county whose geographical boundary is conterminous with that of the special district by86
forwarding to the superintendent a copy of a resolution of the governing authority calling87
for a referendum election. Upon receipt of the resolution, it shall be the duty of the election88
superintendent to issue the call for an election for the purpose of submitting the question89
of the imposition of the sales and use tax to the voters of the special district for approval90
or rejection. The election superintendent shall issue the call and shall conduct the election91
on a date and in the manner authorized under Code Section 21-2-540. Such election shall92
only be conducted on the date of and in conjunction with a referendum provided for by93
local Act on the question of whether to impose a homestead exemption within such county94
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and based on the amount of proceeds from the sales and use tax levied and collected95
pursuant to this part. The election superintendent shall cause the date and purpose of the96
election to be published once a week for two weeks immediately preceding the date of the97
election in the official organ of such county. The ballot shall have written or printed98
thereon the following statement which shall precede the ballot question specified in this99
subsection and the ballot question specified by the required local Act:100
'NOTICE TO ELECTORS: Unless BOTH the alternative homestead exemption AND101
the retail homestead option sales and use tax are approved, then neither the exemption nor102
the sales and use tax shall become effective.'103
Such statement shall be followed by the following:104
'( ) YES105
106
( ) NO107
108
109
110
Shall a retail homestead option sales and use tax of 1 percent be levied
within the special district within _____________ County for the
purposes of funding capital outlay projects and of funding services to
replace revenue lost to an additional homestead exemption of up to
100 percent of the assessed value of homesteads from county taxes for
county purposes?'
Notwithstanding any other provision of law to the contrary, the statement, ballot question,111
and local Act ballot question referred to in this subsection shall precede any and all other112
ballot questions calling for the levy or imposition of any other sales and use tax which are113
to appear on the same ballot.114
(f) All persons desiring to vote in favor of levying the sales and use tax shall vote 'Yes,'115
and those persons opposed to levying the tax shall vote 'No.' If more than one-half of the116
votes cast are in favor of levying the tax and approving the local Act providing such117
homestead exemption, then the tax shall be levied in accordance with this part; otherwise,118
the sales and use tax may not be levied, and the question of the imposition of the sales and119
use tax may not again be submitted to the voters of the special district until after 24 months120
immediately following the month in which the election was held. It shall be the duty of the121
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election superintendent to hold and conduct such elections under the same rules and122
regulations as govern special elections. It shall be the superintendent's further duty to123
canvass the returns, declare the result of the election, and certify the result to the Secretary124
of State and to the commissioner. The expense of the election shall be borne by the county125
whose geographical boundary is conterminous with that of the special district holding the126
election.127
(g) If the imposition of the sales and use tax provided for in this part is approved in a128
referendum election as provided by subsections (e) and (f) of this Code section, the129
governing authority of the county whose geographical boundary is conterminous with that130
of the special district shall adopt a resolution within 30 days after county certification of131
the result of the election imposing the sales and use tax authorized by this part on behalf132
of the county whose geographical boundary is conterminous with that of the special133
district. The resolution shall be effective on the first day of the next succeeding calendar134
quarter which begins more than 50 days after the adoption of the resolution. With respect135
to services which are billed on a regular monthly basis, however, the resolution shall136
become effective with the first regular billing period coinciding with or following the137
otherwise effective date of the resolution. A certified copy of the resolution shall be138
forwarded to the commissioner so that it will be received within five days after its139
adoption.140
(h) Within 30 days of the conclusion of a year in which the sales and use tax provided for141
in this part is collected, the county shall post a report in a prominent place on its public142
website detailing how much money was collected in the past year by such sales and use tax,143
the value of homesteads reduced by such sales and use tax collections, and any other144
information that may be required by the commissioner in rules adopted pursuant to145
subsection (d) of Code Section 48-8-109.28. The county shall also deliver a copy of this146
report to each member of the General Assembly whose district includes any part of the147
county.148
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48-8-109.27.149
(a) The sales and use tax levied pursuant to this part shall be exclusively administered and150
collected by the commissioner for the use and benefit of each county whose geographical151
boundary is conterminous with that of a special district. Such administration and collection152
shall be accomplished in the same manner and subject to the same applicable provisions,153
procedures, and penalties provided in Article 1 of this chapter except that the sales and use154
tax provided in this part shall be applicable to sales of motor fuels as prepaid local tax as155
such term is defined in Code Section 48-8-2; provided, however, that all moneys collected156
from each taxpayer by the commissioner shall be applied first to such taxpayer's liability157
for taxes owed the state. Dealers shall be allowed a percentage of the amount of the sales158
and use tax due and accounted for and shall be reimbursed in the form of a deduction in159
submitting, reporting, and paying the amount due if such amount is not delinquent at the160
time of payment. The deduction shall be at the rate and subject to the requirements161
specified under subsections (b) through (f) of Code Section 48-8-50.162
(b) Each sales and use tax return remitting sales and use taxes collected under this part163
shall separately identify the location of each retail establishment at which any of the sales164
and use taxes remitted were collected and shall specify the amount of sales and the amount165
of taxes collected at each establishment for the period covered by the return in order to166
facilitate the determination by the commissioner that all sales and use taxes imposed by this167
part are collected and distributed according to situs of sale.168
(c) The proceeds of the sales and use tax collected by the commissioner in each special169
district under this part shall be disbursed as soon as practicable after collection as follows:170
(1) One percent of the amount collected shall be paid into the general fund of the state171
treasury in order to defray the costs of administration; and172
(2) Except for the percentage provided in paragraph (1) of this subsection, the remaining173
proceeds of the sales and use tax shall be distributed to the governing authority of the174
county whose geographical boundary is conterminous with that of the special district. As175
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a condition precedent for the authority to levy the sales and use tax or to collect any176
proceeds from the tax authorized by this part for the year following the first complete177
calendar year in which it is levied and for all subsequent years except the year following178
the year in which the sales and use tax is terminated, the county whose geographical179
boundary is conterminous with that of the special district shall, except as otherwise180
provided in subsection (c) of Code Section 48-8-109.26, expend such proceeds as181
follows:182
(A) A portion of such proceeds shall be expended for the purpose of funding capital183
outlay projects as follows:184
(i) Prior to the beginning of each calendar year, the governing authority of the county185
whose geographical boundary is conterminous with that of the special district shall186
establish the capital factor which shall not exceed 0.250;187
(ii) Capital outlay projects shall be funded in an amount equal to the product of the188
capital factor multiplied by the net amount of the sales and use tax proceeds collected189
under this part during the previous calendar year, and this amount shall be referred to190
as capital outlay proceeds;191
(iii) The total portion, if any, to be paid to existing municipalities from the capital192
outlay proceeds shall be determined as follows:193
(I) If the sales and use tax provided for in Part 1 of Article 3 of this chapter is194
currently levied and collected within such county, such portions shall be determined195
for each existing municipality by applying the percentage used for that196
municipality's portion of the proceeds of such sales and use tax received by such197
county from the commissioner in each month to the capital outlay portion of the198
proceeds of the sales and use tax provided for by this article received from the199
commissioner in the same month;200
(II) If a new municipality is incorporated within the county, such newly201
incorporated municipality shall receive a portion of each month's capital outlay202
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proceeds that is equal to the population of such municipality within such county as203
a percentage of the total population of the county, as such populations are204
determined based upon the most recently published decennial United States Census,205
and the portion of such capital outlay proceeds received by the county and the206
existing municipalities shall be reduced in proportion to their populations within207
such county; or208
(III) If the sales and use tax provided for in Part 1 of Article 3 of this chapter is not209
levied or collected within such county, the capital outlay portion of the sales and use210
tax provided for in this article shall be distributed to the municipalities located211
wholly or partially within the county based upon the populations of such212
municipalities that are located within the county as a percentage of the total213
population of such county, as such populations are determined based upon the most214
recently published decennial United States Census; and215
(iv) Capital outlay projects funded by this part undertaken by the county shall be216
limited to road improvement projects; provided, however, that nothing in this division217
shall limit the scope of capital outlay projects undertaken by a qualified municipality;218
(B) A portion of such proceeds shall be expended for the purpose of funding services219
within the special district equal to the revenue lost to the homestead exemption as220
provided for in this Code section as follows:221
(i) Within 30 days of the end of the calendar year, the governing authority of such222
county shall calculate the homestead factor for that period by multiplying the quantity223
1.000 minus the capital factor for that period, and then dividing by the taxes to be224
levied in the current tax year for county maintenance and operations on only that225
portion of the county's tax digest levied for maintenance and operations that226
represents net assessments on qualified homestead property after all other homestead227
exemptions have been applied, rounding the result to three decimal places;228
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(ii) If the homestead factor is less than or equal to 1.000, the amount of homestead229
exemption created for the current tax year under this part on qualified homestead230
property shall be equal to the product of the homestead factor multiplied times the net231
assessment of each qualified homestead remaining after all other homestead232
exemptions have been applied; and233
(iii) If the homestead factor is greater than 1.000, the homestead exemption created234
for the current tax year by this part on qualified homestead property shall be equal to235
the net assessment of each homestead remaining after all other homestead exemptions236
have been applied; and237
(C) If any of such proceeds remain following the distribution provided for in238
subparagraphs (A) and (B) of this paragraph:239
(i) The millage rate levied for county maintenance and operation purposes shall be240
rolled back in an amount equal to such excess divided by the net taxable digest for241
county purposes after deducting all homestead exemptions including the exemption242
under this part; and243
(ii) In the event the rollback created by division (i) of this subparagraph exceeds the244
millage rate for county maintenance and operation purposes, the governing authority245
of the county whose boundary is conterminous with the special district shall be246
authorized to expend the surplus funds for funding all or any portion of those services247
which are to be provided by such governing authorities pursuant to and in accordance248
with Article IX, Section II, Paragraph III of the Constitution of this state.249
(d) For illustration purposes, a hypothetical example of the calculation is provided as250
follows:251
First, calculate the homestead factor in accordance with252
division (c)(2)(B)(i) of this Code section as follows:253
(A) Capital factor certified by county as required by254
subsection (c) of this Code section........................255 0.15
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(B) Net amount of sales and use tax collected in the special256
district pursuant to this part for the previous calendar year.....257 $ 50 million
(C) Taxes levied for county purposes on only that portion of the258
county tax digest that represents net assessments on qualified259
homestead property after all other homestead exemptions have260
been applied..........................................261 $100 million
(D) Calculation of homestead factor using figures above =262
[(1-.0150)($50 million/$100 million)]......................263 0.425.
48-8-109.28.264
(a) Where a local sales or use tax has been paid with respect to tangible personal property265
by the purchaser either in another local tax jurisdiction within this state or in a tax266
jurisdiction outside this state, the sales and use tax may be credited against the sales and267
use tax authorized to be imposed by this part upon the same property. If the amount of268
sales or use tax so paid is less than the amount of the use tax due under this part, the269
purchaser shall pay an amount equal to the difference between the amount paid in the other270
tax jurisdiction and the amount due under this part. The commissioner may require such271
proof of payment in another local tax jurisdiction as the commissioner deems necessary and272
proper. No credit shall be granted, however, against the sales and use tax imposed under273
this part for tax paid in another jurisdiction if the sales and use tax paid in such other274
jurisdiction is used to obtain a credit against any other local sales and use tax levied in the275
special district or in the county which is conterminous with the special district; and sales276
and use taxes so paid in another jurisdiction shall be credited first against the sales and use277
tax levied under this part and then against the sales and use tax levied under Article 3 of278
this chapter, if applicable.279
(b) No sales and use tax provided for in Code Section 48-8-109.26 shall be imposed upon280
the sale of tangible personal property which is ordered by and delivered to the purchaser281
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at a point outside the geographical area of the special district in which the sales and use tax282
is imposed under this part regardless of the point at which title passes, if the delivery is283
made by the seller's vehicle, United States mail, or common carrier or by private or contract284
carrier licensed by the Federal Motor Carrier Safety Administration or the Georgia285
Department of Public Safety.286
(c)(1) As used in this subsection, the term 'building and construction materials' means287
all building and construction materials, supplies, fixtures, or equipment, any combination288
of such items, and any other leased or purchased articles when the materials, supplies,289
fixtures, equipment, or articles are to be utilized or consumed during construction or are290
to be incorporated into construction work pursuant to a bona fide written construction291
contract.292
(2) No sales and use tax provided for in Code Section 48-8-109.26 shall be imposed in293
a special district upon the sale or use of building and construction materials when the294
contract pursuant to which the materials are purchased or used was advertised for bid295
prior to approval of the levy of the sales and use tax by the county whose geographical296
boundary is conterminous with that of the special district and the contract was entered297
into as a result of a bid actually submitted in response to the advertisement prior to298
approval of the levy of the sales and use tax.299
(d) The commissioner shall have the power and authority to promulgate such rules and300
regulations as shall be necessary for the effective and efficient administration and301
enforcement of the collection of the sales and use tax authorized to be imposed by this302
part."303
SECTION 2.304
Code Section 48-5C-1 of the Official Code of Georgia Annotated, relating to alternative ad305
valorem taxation of motor vehicles and title ad valorem tax fee, is amended in subsection (b)306
by repealing paragraph (7.1) and by adding a new paragraph to read as follows:307
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"(19)(A) As used in this paragraph, the term:308
(i) 'For-hire charter bus or motor coach' means a motor vehicle designed for carrying309
more than 15 passengers and used for the transportation of persons for compensation.310
(ii) 'Special modified rental vehicle' means a motor vehicle that has been significantly311
modified at a manufacturing facility in this state, provided that:312
(I) Such manufacturing facility is operated by the owner of such motor vehicle;313
(II) Such owner primarily uses such motor vehicle by renting or leasing it without314
a driver to businesses;315
(III) Such rental or lease transactions are subject to Georgia state and local sales316
and use taxes; and317
(IV) Such owner provides the department with an affidavit affirming that the318
vehicle has been significantly modified and that the other qualifications of this319
definition have been met for such vehicle.320
(B) In the case of for-hire charter buses or motor coaches or special modified rental321
vehicles, the person applying for a certificate of title shall be required to pay title ad322
valorem tax fees in the amount of 50 percent of the amount which would otherwise be323
due and payable under this subsection at the time of filing the application for a324
certificate of title, and the remaining 50 percent shall be paid within 12 months325
following the filing of such application."326
SECTION 3.327
All laws and parts of laws in conflict with this Act are repealed.328
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