This week will mark the halfway point for this year’s legislative session, and Georgia’s policy makers are grappling with huge issues like a $35+ billion budget and tax reform.

Last week, the Senate passed two major tax reform bills, Senate Bills 476 and 477, sponsored by candidate for Lt. Governor and Senate Appropriations Committee Chairman Blake Tillery (R-Vidalia). SB 476 proposes to increase the standard deduction for single filers to $50,000 and joint filers for $100,000 and includes a sunset on various tax credits and exemptions to help offset the revenue loss from eliminating the income tax on nearly 2/3rds of the state’s taxpayers. SB 477 follows in the footsteps of similar personal income tax reductions that Georgia has passed over the past several years. The proposal would reduce the flat income tax rate from 5.19% to 4.99% in 2026, then to 4.49% in 2027, then to 3.99% in 2028, should state revenues meet benchmarks outlined in the bill. These bills are now eligible for consideration by the House.

The House, for its part, seems steadfastly interested in property tax reductions rather than eliminating the income tax and is considering HB 1116 and HR 1114, which would phase out property taxes on a homeowner’s primary residence and allow local governments to levy higher taxes and fees elsewhere, like sales taxes. The proposal would require voters to approve a constitutional amendment.

On Monday, the Senate State and Local Governmental Operations Committee heard SB 437 and SB 447 sponsored by Chairman Clint Dixon. SB 437 proposes to amend state building, plumbing, and electrical codes, reduce timeframes for private plan review and inspection, allow local governments to collect 50% of the regulatory fees assessed on a property in a private provider was utilized, and would clarify that virtual inspections on a dwelling are allowed by law. The bill was amended so that all provisions only apply to single family dwellings under 3 stories. The bill as amended passed the committee and is now eligible for the Senate Rules committee, which sets the debate calendar for the full Senate. SB 447 is a more comprehensive review of permitting application reforms and would clarify the 45-day initial review period and create a 14-day deadline for any re-review by a local government of an application. During public testimony, a local government official recommended creating a 14-day turnaround for the original review and a 45-day turnaround for the subsequent review, which some committee members seemed intrigued by. The bill was set for hearing only, so no action was taken on the bill.

On Wednesday, Representative Matt Barton (R-Calhoun) introduced HB 1277, which would raise the environmental evaluation threshold exemption from $100 million to $200 million for road and airport projects. The bill also creates a mechanism for inflation adjustments for the threshold, which would be capped at the CPI annual inflation rate. The bill also repeals the threshold that limits design-build projects to only 50% of the total number of construction projects in a fiscal year and creates new guidelines for GDOT to sell remnant right-of-way property upon completion of a project.

Additionally, on Wednesday HB 1286 was introduced by Representative Lauren McDonald (R-Cumming), which would abolish the position of Director of Planning for the ATL. Both of these bills were assigned to the House Transportation Committee and we are watching these proposals closely.

This week, lawmakers will meet for Legislative Days 19 through 22. See you soon!

LEGISLATION ACEC GEORGIA IS FOLLOWING: 

Local Government  

HB 152 by Representative Matt Reeves (R-Duluth): would extend the existing Mini Brooks Act to local governments. This would require Qualifications-Based Selection for the procurement of A/E services for projects where professional services are estimated to be $75,000 or more or for any project with a total preliminary construction cost of over $1 million. 

Status: Assigned to the House Governmental Affairs Committee 

Position: SUPPORT 

HB 168 by Representative Mitchell Horner (R-Ringgold): would require any local proposal to reimpose a previously passed SPLOST to pass the General Assembly as a local bill (i.e., if a jurisdiction wants to reimpose a SPLOST, they will have to go through the General Assembly to do it.)

Status: Assigned to the Ways & Means Committee 

Position: Monitor

HB 317 by Representative Ron Stephens (R-Savannah): would create a new option for local governments to help finance essential infrastructure needs called a “Workforce and Residential Infrastructure District” (WRID). If approved by the local government, this would allow landowners within the district to self-impose taxes to fund these public infrastructure projects and improvements. A constitutional amendment would be required for the enactment of the legislation which has been filed as HR 192 by Representative Ron Stephens (R-Savannah). 

Status: Assigned to the House Ways & Means Committee (was originally assigned to Governmental Affairs). The sponsor and advocates agree that this should be a two year bill, as it requires a constitutional amendment. This initiative is back this session.

Position: SUPPORT  

HB 531 by Representative Matt Reeves (R-Duluth): proposes to extend the period for plaintiffs to provide notice (ante litem notice) for an intent to sue a city from six months to twelve months. The legislation also has a provision to limit the liability for cities to $3 million per person and $5 million per occurrence. Read more about cities liability appeal here.

Status: Passed the House Judiciary Committee; Passed the House 161 to 13; Passed the Senate Judiciary Committee; Recommitted to the Senate Judiciary Committee

Position: Monitor 

HB 812 by Representative Mike Cheokas (R-Americus): proposes to reinforce the shot clock on local government plan reviews by limiting the number of rounds an application may undergo. The legislation continues to enforce the 45-day turnaround requirement for local governments but would require a new 14-day turnaround where a local government would then be required to issue or deny the permit. Any comments made by the local government would need a citation for the exact local, state, or federal rule or regulation they violate. The main purpose of this bill is to limit a local government’s ability to perpetually run the clock on a permit issuance or denial and end the practice of unlimited rounds of comments where new items are introduced during subsequent rounds.

Status: Heard in House Governmental Affairs subcommittee on State & Local Government over the interim. No movement yet this session.  

Position: Support

SB 51 by Senator Ed Setzler (R-Acworth): this legislation would require qualifications-based selection for the procurement of A/E services for local government projects where the professional services cost is estimated to be $75,000 or more, or if the project cost is estimated to be $1 million or more. This is not a prohibition on cost being a factor, this simply shifts the consideration of cost to a second stage of negotiation after the firms have been ranked, rather than cost being an initial evaluation.  This language is also on HB 377.

Status: Passed the Senate State and Local Governmental Affairs Committee unanimously; passed the Senate 54 to 1; passed the House Governmental Affairs Committee; recommitted to the House Governmental Affairs Committee

Position: SUPPORT 

SB 151 by Senator Brandon Beach (R-Alpharetta): proposes the creation of a “Joint Development Authority of North Fulton Municipalities”. A committee of seven directors would be created with one representative each from Alpharetta, Johns Creek, Milton, Mountain Park, Roswell, and Sandy Springs, with a seventh member being appointed by the committee.  

Status: Passed out of the Senate State and Local Governmental Affairs Committee; passed the Senate 32 to 23. Passed the House Intragovernmental Coordination Committee. The House passed this with a substitute, however the substitute did not receive a final agree on the Senate side in 2025. With Senator Beach’s resignation to serve as US Treasurer, it is unclear what is happening to this measure.

Position: Monitor 

SB 437 by Senator Clint Dixon (R-Mulberry): would clarify that virtual inspections of dwellings are allowed by law, would reduce the timeframe for local governments to determine if an application is complete from 30 days to 15 days, would streamline the private plan review and inspection process. This bill was amended to apply only to single family residences under 3 stories.

Status: Assigned to the Senate State and Local Governmental Affairs Committee; passed SLGO on 2/9; now in Senate Rules

Position: Reviewing

SB 447 by Senator Clint Dixon (R-Mulberry): aims to tighten the timeframe for comments by a local government on a pending application and requires specific citation of the local, state, and federal law that the application violates. The proposal would require local issuing authorities to publish criteria for approval of permits, states that a completed application for any permit must be denied or approved within 45 days and that a comment period may only last 14 days, and states that if the permit is not accepted or denied within 45 days, the application shall be accepted and any fees remitted shall be refunded to the applicant.

Status: Assigned to the Senate State and Local Governmental Affairs Committee; received a hearing on 2/9, but no action was taken

Position: Reviewing

Industry & Professions 

HB 107 by Representative Bethany Ballard (R-Warner Robins): would require all professional licensing boards in the state to adopt a process by which spouses of military members or transitioning service members may obtain a digitally verifiable license.  

Status: Passed the House Defense & Veterans Affairs Committee; recommitted to House Defense & Veterans Affairs

Position: Monitor 

SB 28 by Senator Greg Dolezal (R-Forsyth County): this legislation aims to reduce red tape and reconfigure how the regulatory environment operates in Georgia by allowing the legislature to take a more active role in regulatory activities.  

Status: Passed the Senate Economic Development & Tourism Committee; passed the Senate 31 to 23. Passed the Senate Budget and Fiscal Affairs Oversight Committee; recommitted to the Senate Budget and Fiscal Affairs Oversight Committee.

Position: Monitor 

SB 207 by Senator Brian Strickland (R-McDonough): would provide a preclearance process for the licensing of individuals with criminal records who apply for a professional license in the state. 

Status: Passed the Senate Judiciary Committee; passed the Senate 55 to 0. Passed the House Judiciary Committee; Passed the House 170 to 0; Senate agreed to the House version with a Senate floor amendment, so it needs an agree on the House side before it can pass. Still pending an agree.

Position: SUPPORT  

Transportation  

HB 76 by Representative Stacey Evans (D-Atlanta): would require the Department of Transportation to host public hearings for local transportation projects of significant impact. 

Status: Assigned to House Transportation Committee 

Position: Monitor

HB 387 by Representative Brad Thomas (R-Holly Springs): would require a service delivery agreement to include a growth boundary agreement component. 

Status: Assigned to the House Governmental Affairs Committee 

Position: Monitor 

HB 1070 by Representative Leesa Hagan (R-Lyons): would increase the tax credit for Class III railroad maintenance expenditures from $3500 to $5000 and would move the sunset from December 30, 2026 to December 30, 2031.

Status: Assigned to the House Ways & Means Committee

Position: Monitor

HB 1277 by Representative Matt Barton (R-Calhoun): would raise the environmental evaluation threshold exemption from $100 million to $200 million for road and airport projects. The bill also creates a mechanism for inflation adjustments for the threshold, which would be capped at the CPI annual inflation rate. Additionally, the bill repeals the threshold that limits design-build projects to only 50% of the total number of construction projects in a fiscal year and creates a new guidelines for GDOT to sell remnant right-of-way property upon completion of a project.

Status: Assigned to the House Transportation Committee

Position: Reviewing

HB 1286 by Representative Lauren McDonald (R-Cumming): would abolish the position of Director of Planning for the ATL.

Status: Assigned to the House Transportation Committee

Position: Reviewing

Water & Environmental 

HB 559 by Representative John Carson (R-Marietta): this legislation would revise the sunset date on the sales tax exemption for the equipment used in data centers from 2031 to 2026.  

Status: Assigned to the House Ways & Means Committee 

Position: Monitor  

HB 1012 by Rep. Ruwa Romman (D-Duluth): places a moratorium on new data centers construction after July 1, 2026.

Status: Assigned to House Governmental Affairs

Position: Monitor

HB 1063 by Representative Brad Thomas (R-Holly Springs): would codify many of the provisions adopted by the PSC to prevent the recuperation of costs for data center construction onto retail consumers.

Status: Assigned and passed out of the Special Committee on Resource Management

Position: Monitor

SB 34 by Senator Chuck Hufstetler (R-Rome): would prohibit an electrical utility provider from recovering the cost of servicing a data center from ratepayers.  

Status: Assigned to Senate Regulated Industries & Utilities Committee; many hearings on the bill have taken place, but the bill continues to be debate in the committee

Position: Monitor 

SB 408 by Senator Nan Orrock (D-Atlanta): would change the sunset for the sales and use tax exemption on data centers from January 1, 2032 to January 1, 2027.

Status: Assigned to Senate Finance Committee

Position: Monitor

SB 410 by Senator Matt Brass (R-Rome): proposes to end the sales & use tax exemptions for new data centers, effective upon signature of the governor.

Status: Referred to the Senate Finance Committee

Position: Reviewing