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GeorgiaSB 1382025-2026 Regular SessionSenateWALLET

Incorporation of Municipal Corporations; transition of certain services related to newly incorporated municipalities in certain counties; provide

Sponsored By: Jason Anavitarte (Republican), Bill Cowsert (Republican), Clint Dixon (Republican), Ed Setzler (Republican), Shawn Still (Republican)

Signed by Governor

Intragovernmental CoordinationState and Local Governmental OperationsGeneral Bill

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 6 benefits, 0 costs, 0 mixed.

Counties pay if they break transition rules

If a county fails to follow the transition rules and the new town wins in court, the county must repay the town’s legal costs and any damages. If a third party sues the town because of county actions during the transition, the county must also reimburse those costs and damages. After a court finds a county violated these duties, the county’s sovereign immunity and local officials’ governmental immunity are waived for one year for matters arising in that period, so the remedy can take effect.

Police service and tax rules for new towns

In counties with more than 15 municipalities, for towns created by local law on or after January 1, 2024, the area stays in the county police district until the town gives notice to leave. If county police staffing is under 95% of authorized officers, the notice period cannot be longer than one year. While the town remains in the district, the county must provide police services there as it does elsewhere. If police‑district property tax collected inside the town exceeds the county’s actual policing costs there, the county must send the excess to the town within 60 days after the fiscal year ends. The district’s finance office must track collections, officer time, and the calculations needed to do these remittances.

New towns get taxes and fee shares

When a new town takes over a service during the county’s fiscal year, the county must send the town its share of related taxes and fees. The share equals total collections times the days the town provided the service divided by days in the fiscal year. This covers items like alcoholic beverage fees and taxes, business license fees, and occupation taxes. If the county accepted permit applications but did not finish them before the handoff, it must transfer 95%, 75%, or 50% of the fee based on progress, within 30 days.

County services option and no election payback

Creating a new town does not force a redo of county service agreements. Within six months of the later of the law’s effective date or incorporation, the town can choose to have the county keep providing any service on the same terms used elsewhere. The town does not have to repay the costs of the special election on incorporation or the election of its first leaders.

Road rights of way and stormwater control

During the transition period, the new town controls road rights of way inside its borders. It can set rules, grant franchises, and collect franchise fees. The county may keep maintaining those roads the same way it does elsewhere, but only if the town allows it. The town does not automatically take county stormwater systems that hold 1,000 gallons or more, or county dams and detention ponds. The county keeps control and maintenance unless both sides agree to transfer.

Insurance tax sharing for new towns

For life and other insurance premium taxes, population uses the U.S. census plus official corrections or added data for new towns. If official data are missing, the Commissioner uses census tract data from the town’s charter. The Office of Planning and Budget must certify corrections by August 31 each year, and they are backdated to the initial filing. A town created by voter referendum gets a share for the referendum year if it completes all steps to impose the tax within 18 months and the Commissioner has not already allocated the proceeds.

Sponsors & Cosponsors

Sponsors

  • Jason Anavitarte

    Republican • Senate

  • Bill Cowsert

    Republican • Senate

  • Clint Dixon

    Republican • Senate

  • Ed Setzler

    Republican • Senate

  • Shawn Still

    Republican • Senate

Cosponsors

  • Chuck Efstration

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 149 • No: 123

House vote • 3/13/2025

PASSAGE

Yes: 96 • No: 69

Senate vote • 2/20/2025

ADOPTION OF AMENDMENT #1 BY THE SENATOR FROM THE 9TH

Yes: 21 • No: 32

Senate vote • 2/20/2025

PASSAGE BY SUBSTITUTE

Yes: 32 • No: 22

Actions Timeline

  1. Senate Date Signed by Governor

    5/14/2025Senate

  2. Act 289

    5/14/2025

  3. Effective Date

    5/14/2025

  4. Senate Sent to Governor

    4/7/2025Senate

  5. House Third Readers

    3/13/2025House

  6. House Passed/Adopted

    3/13/2025House

  7. House Committee Favorably Reported

    2/26/2025House

  8. House Second Readers

    2/24/2025House

  9. House First Readers

    2/21/2025House

  10. Senate Third Read

    2/20/2025Senate

  11. Senate Passed/Adopted By Substitute

    2/20/2025Senate

  12. Senate Read Second Time

    2/19/2025Senate

  13. Senate Committee Favorably Reported By Substitute

    2/18/2025Senate

  14. Senate Read and Referred

    2/11/2025Senate

  15. Senate Hopper

    2/10/2025Senate

Bill Text

  • SB 138/AP* (v7)

    PDF

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