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GeorgiaHB 2972025-2026 Regular SessionHouseWALLET

Ad valorem tax; define multipurpose off-highway vehicle; provisions

Sponsored By: Victor Anderson (Republican), Justin Howard (Republican), David Huddleston (Republican), Steven Meeks (Republican), Trey Rhodes (Republican), Noel Williams (Republican)

Signed by Governor

Ways & MeansTransportationGeneral Bill

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Bill Overview

Analyzed Economic Effects

21 provisions identified: 9 benefits, 6 costs, 6 mixed.

Georgia combines its regional transit authorities

The law creates the Georgia Transportation Efficiency Authority to plan, build, maintain, and run transit projects. When the law takes effect, the two former authorities' assets, debts, contracts, and federal funding roles transfer to it. The new authority also replaces the Atlanta-region Transit Link Authority under the highway right-of-way rule. Its board members receive necessary work-travel reimbursements and the same daily payment as state legislators.

MARTA sales tax continues through 2067

The law extends the MARTA retail sales and use tax through June 30, 2067. People making taxable purchases in the affected area continue paying this tax during that period. This provision does not state the tax rate.

Transferred transit workers keep pay and benefits

Employees of both former transit authorities move to the new authority when the law takes effect. They serve in similar roles, as determined by the executive director. The transfer cannot reduce their pay or benefits because of the move. Their covered personnel rights, retirement rights, and accrued leave continue.

Georgia centralizes federal transit funding

The new authority receives and distributes federal transit funds for compliance zone counties unless federal officials name another recipient. These counties are designated for covered air-pollution problems. By executive order, the Governor can also delegate federal planning, transit-funding, and direct transit-service powers for these counties. Rights under contracts, grants, and agreements made or awarded before December 1, 2018, remain protected. Projects and services under the specified contract in effect on that date remain excluded.

Local officials gain transit contract control

A county qualifies as a nonattainment area when it has current or past covered pollution violations and authority board designation. Covered pollution includes ozone, carbon monoxide, and particulate matter above federal standards. For covered transit-agency contracts entered on or after January 1, 2019, local officials can approve services in these counties. Those services no longer need regional-plan inclusion or an agreement with the former Atlanta-region Transit Link Authority.

Local transit districts face fewer procedures

Local services and funding that follow this law are exempt from the separate local-government service-planning chapter. The authority must coordinate with services under that chapter when practical. Multicounty community improvement districts no longer need regional-plan inclusion or an agreement with the former Atlanta-region Transit Link Authority. These districts still need constitutional compliance and a state local act authorizing creation in each county they cover.

State transportation department manages district projects

The commission must contract with Georgia's transportation department for projects on a special district's approved investment list. Bus and rail mass transit systems and passenger rail are excluded from this requirement. The department manages execution, scheduling, and delivery. It chooses whether the department, a local government, or another public or private entity designs and builds each project.

Transport reports lose one secrecy exemption

Certain for-hire transport reports sent to Georgia Revenue or the former regional transit authority lose one public-records exemption. Reports sent to Georgia's transportation department remain covered by that exemption. Other laws can still limit access, so removing this exemption does not make every report public.

Fulton gains flexibility for transit tax agreements

Fulton County transit tax agreements no longer need to identify projects from the former authority's approved regional transit plan. Agreements must still state the tax rate and duration. Participating local governments must represent at least 70 percent of the county population outside the city. The agreement must follow the required meeting and precede tax imposition. This change does not itself impose a tax.

Transit authority gets purchase tax relief

The authority's tax exemption covers specified property, activities, and income. It also covers sales and use tax on property purchased by or for the authority. Motor fuel sales and use remain outside this exemption. This is an authority tax break, not a personal tax exemption for households.

Counties need approval to start transit

The rule covers counties that neither provided transit nor received state-authority transit on or before January 1, 2026. These counties need a commissioners' resolution before starting service. Counties in a compliance zone also need approval in a county-wide referendum.

Residents face limits suing transit officials

Authority board members, officers, and employees receive protection from certain liability when acting within their authority. Protection covers only the project activities and powers listed in the law. This limits legal recourse against those officials for covered actions, not every possible claim.

Certified airports stay outside transit authority control

Covered airports certified under the federal airport-certification rule are outside the transit authority's jurisdiction. The authority cannot build, repair, expand, own, maintain, or operate those airports or their facilities. It can review transportation improvement programs when federal law specifically assigns that review to the Governor.

Georgia ends some state planning requirements

The state solid waste plan no longer must go to the Governor's Development Council. It also no longer must guide local and regional solid waste plans. The law repeals the state planning and development article in full. These provisions name no replacement planning process or responsibilities.

Environmental financing excludes certain transit projects

The Georgia Environmental Finance Authority's project definition no longer covers a specified category of transportation projects. The exclusion covers projects authorized by either former transit authority when that authority is directed to issue debt. Qualifying environmental facilities and services remain covered. The law states no affected financing amount or household charge.

Local MARTA contracts gain funding limits

Local governments can contract with MARTA for transit services or facilities without regional-plan inclusion or former regional-authority approval. These contracts cannot use MARTA Act bonds or its special retail sales and use tax. Fares, service or facility revenue, or subsidies from or on behalf of the contracting public entity must cover costs. The law sets no fare or subsidy amount.

Local transit aid includes payment safeguards

The authority can grant local governments some or all of a project's cost. Grant terms can require revenue for operating costs and debt, special funds, or other repayment protections. By governing-body resolution, local governments can lease authority-owned transit facilities for up to 50 years. Lease terms can require local charges, reserves, special funds, and payment of project and lease costs. The law sets no grant amount or local charge.

State reviews plans; local officials retain override

By executive order, the Governor can give the authority statewide transportation-plan review and related public-involvement duties. Board approval and requests for changes require a majority vote. The board can reject a late plan by majority vote only after its stated deadline is missed. State or federal spending on state-designated developments of regional impact in compliance zone counties needs authority approval. The applicable county commission or city council can reverse that decision with three-fourths of its authorized membership voting.

Transit votes replace regional approval steps

Gwinnett County can put a rapid transit contract to voters without first getting regional-plan approval. A majority of qualified voters voting must approve the contract. Participating counties also no longer need regional-plan approval for fixed-guideway transit, such as rail. Before public money establishes, maintains, or operates that transit, a separate county referendum must receive majority voter approval.

Counties gain control over transit tax projects

Qualifying counties and municipalities can propose transit sales-tax projects without regional-plan limits or new-authority approval. They must meet at least 60 days before the referendum is called. The county must approve its resolution by majority vote. The resolution must list projects, approximate costs, any selected operator, the tax rate, and its maximum duration. The tax cannot last more than 30 years.

Transit tax surpluses face spending rules

The law changes how transit sales-tax money left after required debt or project costs is used. Part 2 surpluses can fund more transit projects through a qualifying later intergovernmental agreement. Without that agreement, applicable surplus money first reduces other county debt, then supports property-tax reduction through the county general fund. Part 3 surpluses must follow the debt and property-tax rules, not fund additional transit projects.

Sponsors & Cosponsors

Sponsors

  • Victor Anderson

    Republican • House

  • Justin Howard

    Republican • House

  • David Huddleston

    Republican • House

  • Steven Meeks

    Republican • House

  • Trey Rhodes

    Republican • House

  • Noel Williams

    Republican • House

Cosponsors

  • Jason Anavitarte

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 468 • No: 171

Senate vote • 4/3/2026

AGREE TO HOUSE AMENDMENT TO SENATE SUBSTITUTE

Yes: 38 • No: 14 • Other: 3

Senate vote • 4/3/2026

MOTION TO PRINT

Yes: 21 • No: 32 • Other: 2

House vote • 4/2/2026

Agree to Senate Sub as Am

Yes: 131 • No: 40 • Other: 6

Senate vote • 3/31/2026

PASSAGE BY SUBSTITUTE

Yes: 30 • No: 19 • Other: 2

Senate vote • 3/31/2026

MOTION FOR THE PREVIOUS QUESTION

Yes: 30 • No: 19 • Other: 2

Senate vote • 3/31/2026

ADOPTION OF AMENDMENT #3 BY THE SENATOR FROM THE 2ND

Yes: 18 • No: 30 • Other: 3

Senate vote • 3/16/2026

MOTION TO WITHDRAW AND COMMIT

Yes: 32 • No: 17 • Other: 5

House vote • 3/4/2025

PASSAGE

Yes: 168 • No: 0 • Other: 7

Actions Timeline

  1. House Date Signed by Governor

    5/12/2026House

  2. Act 708

    5/12/2026

  3. Effective Date

    5/12/2026

  4. House Sent to Governor

    4/10/2026House

  5. House Agreed Senate Amend or Sub As Amended

    4/2/2026House

  6. Senate Agreed House Amend or Sub

    4/2/2026Senate

  7. Senate Third Read

    3/31/2026Senate

  8. Senate Passed/Adopted By Substitute

    3/31/2026Senate

  9. Senate Committee Favorably Reported By Substitute

    3/25/2026Senate

  10. Senate Withdrawn & Recommitted

    3/16/2026Senate

  11. Senate Recommitted

    1/12/2026Senate

  12. Senate Read Second Time

    3/27/2025Senate

  13. Senate Committee Favorably Reported

    3/25/2025Senate

  14. Senate Read and Referred

    3/6/2025Senate

  15. House Third Readers

    3/4/2025House

  16. House Passed/Adopted

    3/4/2025House

  17. House Committee Favorably Reported

    2/26/2025House

  18. House Second Readers

    2/10/2025House

  19. House First Readers

    2/6/2025House

  20. House Hopper

    2/5/2025House

Bill Text

  • HB 297/AP* (v17)

    PDF

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