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GeorgiaHB 4162025-2026 Regular SessionHouseWALLET

Local government; enterprise zones; revise class of retailer from which fees may be collected

Sponsored By: Shaw Blackmon (Republican), Chuck Efstration (Republican), Trey Kelley (Republican)

Became Law

Governmental AffairsRegulated Industries and UtilitiesGeneral Bill

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Annual infrastructure fees for retailers

Local government can charge an annual enterprise zone infrastructure fee to each retailer in the project that is a qualifying business or service enterprise making exempt sales. Your total fee cannot be more than the sales and use tax you avoided on those exempt sales that year. The government can pledge these fees to back revenue bonds for the zone.

Longer zones and flexible business deals

Zones under this special rule last up to 30 years, starting January 1 after designation. A zone ends sooner if the required project is complete and the first issue of any revenue bonds over $100,000 in principal is retired. Property tax breaks for a qualified business last the full 10 years, even if the zone ends early. Cities and counties and qualifying businesses can sign agreements to change or end tax and fee exemptions and abatements.

No sales tax inside project

Once an area is designated, sales and use tax is not charged inside the redevelopment project’s boundaries. The exemption applies only to the specific project used to qualify the area under the special rules. It does not apply outside those project lines.

Lease deals can change project prices

Inside the qualifying redevelopment project, businesses can charge different prices if the difference comes from their lease terms with the project owner. These lease-based price differences are allowed under state pricing rules. This only applies within the project used to qualify the area.

Tougher rules to get enterprise zones

To qualify, the area must be inside an urban redevelopment area. It must include a project with at least $400,000,000 in capital investment to redevelop a place the state commissioner certifies was chronically underdeveloped for 20 or more years. Projects tied to casino gambling do not qualify. Areas that meet both rules can be designated and access the zone’s incentives.

Sponsors & Cosponsors

Sponsors

  • Shaw Blackmon

    Republican • House

  • Chuck Efstration

    Republican • House

  • Trey Kelley

    Republican • House

Cosponsors

  • Bill Cowsert

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 219 • No: 8

Senate vote • 3/31/2025

PASSAGE

Yes: 47 • No: 8

House vote • 3/3/2025

PASSAGE

Yes: 172 • No: 0

Actions Timeline

  1. Effective Date

    7/1/2025

  2. House Date Signed by Governor

    5/14/2025House

  3. Act 266

    5/14/2025

  4. House Sent to Governor

    4/7/2025House

  5. Senate Tabled

    3/31/2025Senate

  6. Senate Taken from Table

    3/31/2025Senate

  7. Senate Third Read

    3/31/2025Senate

  8. Senate Passed/Adopted

    3/31/2025Senate

  9. Senate Read Second Time

    3/18/2025Senate

  10. Senate Committee Favorably Reported

    3/13/2025Senate

  11. Senate Read and Referred

    3/4/2025Senate

  12. House Third Readers

    3/3/2025House

  13. House Passed/Adopted By Substitute

    3/3/2025House

  14. House Committee Favorably Reported By Substitute

    2/26/2025House

  15. House Second Readers

    2/18/2025House

  16. House First Readers

    2/13/2025House

  17. House Hopper

    2/12/2025House

Bill Text

  • HB 416/AP* (v6)

    PDF

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