Georgia House Bill HB964

Georgia 2025-2026 Regular Session

• Introduced: 1/14/26
• Report Pass: 2/11/26
• Engrossed: 2/18/26
• Refer: 2/19/26
• Report Pass: 3/18/26

Caption

Revenue and taxation; state and local title ad valorem tax fee; exempt certain motor vehicles used in fire protection services for local governments

Summary

HB 964 amends Georgia’s revenue and taxation laws to create tax exemptions for certain nonprofit-owned vehicles and property used in fire protection services for local governments. Specifically, it exempts qualifying motor vehicles owned or leased by a Section 501(c)(3) organization from the state and local title ad valorem tax fee when those vehicles are used substantially in the exercise of general and emergency powers for a county, city, or other political subdivision. The bill also exempts sales of tangible personal property to such organizations when the property is used substantially for those same fire protection purposes. In addition, the bill revises a definition in the tobacco and vaping tax code by clarifying that an “alternative nicotine product dealer” means a person located within Georgia who sells or distributes alternative nicotine products to a consumer in the state. The bill otherwise repeals conflicting laws and makes conforming changes within Title 48 of the Official Code of Georgia Annotated.

Impact

The bill would reduce tax liability for eligible nonprofit fire protection providers by removing title ad valorem tax fees on qualifying vehicles and exempting certain purchases from sales and use tax. Its practical effect is to lower operating costs for 501(c)(3) organizations that provide fire protection services on behalf of local governments, while leaving the exemption limited to property used substantially in those public-safety functions. The definition change in the tobacco/vaping provisions updates who is treated as an alternative nicotine product dealer for tax administration purposes.

Sentiment

The bill appears to have been generally favorable in the House, where it passed overwhelmingly 162-4. In the Senate, it advanced through a motion to engross by a solid but less unanimous 31-14 vote, suggesting broad support for the tax relief but some reservations. No committee transcript was provided, so the available record shows support overall, with more divided sentiment in the Senate than in the House.

Contention

The main policy issue is the scope of the tax exemption and whether it should extend to nonprofit organizations performing fire protection services for local governments. Support is implied for easing costs on volunteer or nonprofit fire service providers, while opposition likely centers on limiting tax exemptions and preserving revenue. The Senate vote margin indicates some lawmakers may have questioned the breadth of the exemption or the inclusion of both vehicle and sales tax relief. The definition revision for alternative nicotine product dealers appears more technical and is not shown as a major point of dispute.