HAPPENINGS AT THE STATE CAPITOL
|
|
|
Georgia General Assembly Wraps 2026 Session with Passage of Tax Cuts and FY 2027 Budget, Elections Legislation Unresolved
|
|
|
The Georgia General Assembly adjourned Sine Die early Friday morning around 1 a.m., wrapping up the second year of its biennium and a session marked by election year dynamics. Throughout the session, the GBA government relations team was actively engaged, successfully advocating for the banking industry—advancing favorable legislation and helping defeat measures that could have created new challenges for Georgia banks. We’re pleased with the final results, and we appreciate the bankers and legislators who supported our advocacy efforts and helped ensure a successful 2026 legislative session.
A major highlight on Sine Die was the passage of HB 463 by Rep. Shaw Blackmon (R-Bonaire), which provides significant income tax reductions. The measure lowers the state’s income tax rate from 5.19% to 4.99%, with a structured path to 3.99% over the next eight years, contingent upon the state meeting certain revenue benchmarks. It also increases the standard deduction for married couples filing jointly from $24,000 to $30,000, and from $12,000 to $15,000 for other filers. Those deductions could increase to $36,000 and $18,000, respectively, in the years ahead. Additionally, up to $1,750 in both cash tips and overtime income will be exempt from taxation. To pay for these reductions, lawmakers scaled back several corporate tax incentives originally proposed in SB 476 by Sen. Blake Tillery (R-Vidalia). Critically for GBA members, the bank tax credit was preserved, meaning banks will not face double taxation moving forward.
Property tax relief will be delivered to Georgians this year, but it wasn’t easy. Initial efforts on Thursday stalled when the Senate rejected HB 1116 by Rep. Blackmon, which would have capped annual growth in school and local government property tax levies at 3% or the rate of inflation, whichever was higher. It would also have authorized schools and local governments to implement sales taxes to reduce the property tax burden on homeowners.
Late in the evening, the Senate decided to use SB 33 by Sen. Kay Kirkpatrick (R-Marietta) as a vehicle to move a property tax relief measure. The original bill dealing with hemp products and synthetic cannabis was replaced with language that authorizes a local sales tax option to pay for property tax relief. It also limits annual assessment increases on individual properties, but does not contain the original 3% cap on local government levies. The House subsequently approved the measure, and it now heads to the Governor’s desk.
Lawmakers also fulfilled their only constitutional obligation by approving a $38.5 billion FY2027 budget that includes $100 million in additional funding for the state’s pension system and $70 million for literacy coaches in elementary schools, with funding distributed through the state’s education formula. The budget, HB 974 by House Speaker Jon Burns (R-Newington), was approved after a conference committee with legislative leaders from both chambers met Thursday evening. See the highlights of their report here.
Notably, state election system reform legislation did not cross the finish line on Day 40. With proposals addressing ballot QR codes and transitioning to hand-marked paper ballots failing to advance, the possibility of a special session later this year is now on the table.
|
|
|
2026 Session Marked by Notable Successes for the Banking Industry
|
We were very pleased with final passage of the Banking Department’s housekeeping bill, HB 945, which now awaits the Governor’s signature. The bill includes important provisions to protect vulnerable bank customers from fraud by allowing financial institutions the option to place temporary holds on transactions suspected of being fraudulent. It also establishes stronger guardrails on crypto ATMs, which have increasingly been used to facilitate fraud. We extend our thanks to the bill’s sponsors, Rep. Bruce Williamson (R-Monroe) and Sen. Mike Hodges (R-Brunswick), for their leadership on this important legislation.
The Banking Department is now developing rules and training requirements for institutions that choose to implement transaction holds. GBA will work closely with the Department to educate bankers on the new law and provide access to training and resources needed to participate effectively.
GBA was also pleased to see the final passage of SB 306 by Sen. Randy Robertson (R-Cataula), which included a much-needed clarification to Georgia’s Low Income Housing Tax Credit program, a priority for many banks across the state. The provision confirms that previously awarded LIHTC credits remain valid and makes $100 million in new state-issued credits available annually for 2026, 2027 and 2028. This added certainty helps ensure the program remains stable and viable for continued bank participation. The House sponsor was Rep. Chas Cannon (R-Moultrie).
SB 306 also included language from HB 547 by Rep. Cannon, which is an omnibus bill related to Conservation Use Valuation Assessments (CUVA), that clarifies carbon credits for timber, allows property owners to combine multiple conservation covenants into single ten-year agreements and provides transfer options between different conservation programs.
Efforts to protect the industry from harmful legislation were also successful, particularly those related to the collection of interchange and “debanking.” SB 512 by Sen. Drew Echols (R-Gainesville), would have prohibited interchange on the sales tax portion of transactions; however, the bill did not advance out of the Senate Finance Committee. Similarly, attempts to attach “debanking” provisions from SB 341 by Sen. Blake Tillery (R-Vidalia), to HB 945 on the Senate floor were successfully defeated.
Another bill, SB 8, by Sen. Kay Kirkpatrick (R-Marietta), raised concerns for banks by potentially exposing them to severe penalties if deemed to be engaging in the unauthorized practice of law in real estate transactions. The measure failed Thursday night in the Senate by a vote of 26-26. It’s important to note that Sen. Kirkpatrick was not involved in the effort to remove the bill’s original text dealing with juvenile court procedures and the inclusion of language related to remote online notarizations and the unauthorized practice of law.
|
Other GBA Monitored Bills Receiving Final Passage
|
|
|
| Data Privacy/Rural Hospital Tax Credit
|
SB 111 by Sen. John Albers (R-Roswell) originally dealt with consumer data privacy. That language was removed and replaced with language from HB 662 by Rep. Angie O’Steen (R-Ambrose) which adds rural emergency health care entities to the state’s rural hospital tax credit program. It also adds rural facilities licensed to provide labor and delivery services. The House sponsor was Rep. O’Steen.
|
|
|
|
|
HB 162 by Rep. Leesa Hagan (R-Lyons) provides for the restriction and sealing of First Offender Act sentences until such status is revoked. The bill includes GBA's requested language from 2025 to exempt federally insured financial institutions. The Senate sponsor was Sen. Bill Cowsert (R-Athens).
|
|
|
|
SB 284 by Sen. Larry Walker (R-Perry) authorizes the Secretary of State to order persons who violate securities laws to return principal amounts and collected moneys to investors. The House sponsor was Rep. Scott Hilton (R-Peachtree Corners).
|
|
|
|
SB 403, by Sen. Kay Kirkpatrick (R-Marietta), originally established new procedures for the abandonment and liquidation of virtual currency. Additionally, it authorized automatic payments for small unclaimed property amounts and streamlined the claims process. A substitute version of the bill, reported by the House Judiciary Committee, removed all language related to cryptocurrency and escheatment to the state. The House sponsor was Rep. Matt Reeves (R-Duluth).
|
|
|
| Property Owners Associations
|
SB 406 by Sen. Matt Brass (R-Newnan) requires annual registration with the Secretary of State for all property owners' associations with a $100 fee and financial disclosure requirements. It establishes a list of specific rights for community association owners. Additionally, it prohibits associations from bidding at foreclosure sales and raises the minimum foreclosure threshold from $2,000 to $4,000. The Secretary of State is also authorized to deny, suspend or revoke registrations for violations and limit association powers. Multiple amendments were added to, among other things, extend the period from 30 to a minimum of 90 days for a notice that is required before an association may pursue foreclosure proceedings by publishing an actual foreclosure notice and add attorney’s fee notification requirements from HB 1221 by Rep. Saira Draper (D-Atlanta). The House sponsor was Rep. Rey Martinez (R-Loganville).
|
|
|
|
HB 413 by Rep. David Jenkins (R-Grantville) originally dealt only with prohibiting counties and cities from regulating livestock or livestock owners on private property or public roads. The bill was amended in the Senate Agriculture and Consumer Affairs Committee to include language on Transfer on Death Deeds, specifically requiring designated beneficiaries to execute affidavits and record them to accept property transferred through transfer on death deeds. The Senate sponsor was Sen. Bo Hatchett (R-Cornelia).
|
|
|
| Vendor Compensation/Property Tax
|
HB 439 by Rep. Bill Yearta (R-Sylvester) originally increased vendor compensation for collecting and remitting sales taxes to the state and included recommendations from the 2024 House Study Committee on Interchange. The bill was substituted with HB 1156 by Rep. Gary Richardson (R-Augusta), which authorizes local governments to establish voter-approved homeowner incentive programs that provide property tax relief to qualified homestead properties. It requires referendum approval and creates dedicated grant funds, using surplus revenues to help offset homeowner tax liabilities. The Senate sponsor was Sen. Lee Anderson (R-Grovetown).
|
|
|
| Local Government Investment Pools
|
SB 441 by Sen. Marty Harbin (R-Tyrone) requires new local government investment pools to obtain State Depository Board approval prior to establishment. The House sponsor was Rep. Johnny Chastain (R-Blue Ridge). GBA supported this measure.
|
|
|
|
HB 447 by Rep. Joseph Gullett (R-Dallas) addresses criminals obtaining gift cards before purchase, removing redemption data from packaging, recording PINs, repackaging the cards and placing them back on store shelves. When consumers activate these cards, criminals receive notification and steal the money, leaving the intended recipient with worthless cards. The bill makes all these crimes felonies. The Senate sponsor was Sen. Randy Robertson (R-Cataula).
|
|
|
|
SB 566 by Sen. Chuck Hufstetler (R-Rome) originally dealt with the acceptance of tax digests in the event of publication errors made by a newspaper. Substitute language now revises Georgia's property tax assessment and homestead exemption procedures, including enhanced disclosure requirements on tax bills and assessment notices. It establishes penalties for failing to report homestead exemption ineligibility and creates a statewide database for tracking homestead exemptions. The House sponsor was Rep. Bruce Williamson (R-Monroe).
|
|
|
|
HB 792 by Rep. Martin Momtahan (R-Dallas) increases the monetary jurisdiction limit for magistrate court civil claims from $15,000 to $25,000. It expands the authority of magistrate courts to handle higher-value civil disputes, including garnishment and attachment cases. The bill was added to HB 999 by Rep. Rob Leverett (R-Elberton) on Sine Die and received final passage. The Senate sponsor of HB 999 was Sen. Bo Hatchett (R-Cornelia).
|
|
|
| Voluntary Portable Benefits
|
HB 987 by Rep. Todd Jones (R-South Forsyth) establishes portable benefit plans and accounts for independent contractors. Banks, along with other financial institutions and entities, may serve as portable benefit account providers if they meet certain qualifications. The bill passed the Senate and now heads to the Governor for his consideration. The Senate sponsor was Sen. Shawn Still (R-Johns Creek).
|
|
|
|
HB 1024 by Rep. Soo Hong (R-Lawrenceville) increases the homestead exemption for bankruptcy and insolvent estates from $21,500 to $50,000 for individuals and from $43,000 to $100,000 for married couples. It establishes automatic annual inflation adjustments beginning July 1, 2031, based on rates determined by the state revenue commissioner. The Senate sponsor was Sen. Marty Harbin (R-Tyrone).
|
|
|
|
HB 1112, by Rep. Carter Barrett (R-Cumming) establishes mandatory rounding rules for cash transactions in Georgia, requiring merchants to round totals up or down to the nearest five cents when customers pay with legal tender. It clarifies sales tax treatment for rounding adjustments and provides immunity from liability for merchants that comply with the rounding requirements. The Senate sponsor was Sen. Chuck Hufstetler (R-Rome).
|
|
|
| Farm Bridge Assistance Program
|
HB 1159 by Rep. Matthew Gambill (R-Cartersville) exempts from Georgia state income taxation all payments received under two federal USDA agricultural assistance programs. It applies to individuals, corporations, and partnerships for taxable years beginning on or after Jan. 1, 2025. The Senate sponsor was Sen. Bo Hatchett (R-Cornelia).
|
|
|
| State Agencies and Red Tape Rollback
|
HB 1247 by Rep. Matt Reeves (R-Duluth) prohibits courts and administrative officers from deferring to state agency interpretations of laws and regulations. The bill also includes SB 28 by Sen. Greg Dolezal (R-Cumming), which establishes procedures for small-business impact analyses of legislative bills and creates periodic sunset reviews of state agency rules. The Senate sponsor was Sen. Bo Hatchett (R-Cornelia).
|
|
|
HB 1272 by Rep. Todd Jones (R-South Forsyth) authorizes the Georgia Department of Banking and Finance to license and regulate stablecoin issuers under a framework similar to the federal GENIUS Act. The Senate sponsor was Sen. Greg Dolezal (R-Cumming).
|
|
|
| ADA Website Accessibility
|
HB 1470 by Rep. Trey Kelley (R-Cedartown) allows defendants to recover damages from plaintiffs and their attorneys who bring unsuccessful ADA website accessibility lawsuits. The Senate sponsor was Sen. Brian Strickland (R-McDonough).
|
|
|
GBA Monitored Bills That Did Not Pass
|
| |
|
HB 61 by Rep. Devan Seabaugh (Marietta) originally dealt with license plates for hearses and ambulances. The Senate Public Safety Committee substituted it to revise unlawful squatting provisions by removing the citation and documentation requirements for an individual who commits or is accused of committing unlawful squatting. The bill also clarified the rights, duties and liabilities of innkeepers regarding guest removal, established procedures for removal by law enforcement officers and created civil remedies for those wrongfully removed. The Senate sponsor was Sen. Shawn Still (R-Johns Creek).
|
|
|
| Automatic Service Renewals
|
SB 131 by Sen. Mike Hodges (R-Brunswick) originally dealt with a data system for Georgia Health Care Professionals, but was substituted in the Senate with HB 1224 by Rep. Carter Barrett (R-Cumming), which required 30–60 days’ notice before auto-renewing contracts longer than 12 months. Customers would also need to give written consent for renewals beyond 24 months and any price increases of 50% or more on contracts lasting at least a year. The Senate sponsor was Sen. Greg Dolezal (R-Cumming).
|
|
|
|
SB 282 by Sen. Russ Goodman (R-Cogdell) regulated earned wage access services in Georgia by setting rules for providers, banning certain practices and clarifying that these services are not loans or money transfers.
|
|
|
Residential Property Insurance
|
SB 409 by Sen. Larry Walker (R-Perry) regulated how insurance companies use aerial and satellite images for residential property coverage, underwriting and pricing decisions. It established homeowner protections by requiring insurers to provide date-stamped images and specific corrective steps for adverse underwriting decisions, such as cancellations or premium increases. Homeowners must be given at least 60 days to address issues, with an appeal process and the opportunity to submit proof of corrections. The bill also mandated that insurers offer policy renewals or rescind adverse decisions if the conditions are resolved.
|
|
|
Transactional Gold and Silver
|
SB 424 by Sen. Marty Harbin (R-Tyrone) required the state to recognize gold and silver as legal tender for voluntary transactions by Jan. 1, 2028. It created a six-member Bullion Depository Commission to establish secure storage facilities. It also authorized electronic payment systems to facilitate transactions, established full nongovernmental deposit insurance coverage and privacy protections for depositor accounts and prohibited taxation on gold and silver transactions. A substitute of the original bill was presented in the House Banks & Banking Committee that removed the provision to create a state-level gold depository and shifted oversight from the Office of the State Treasurer to the Securities and Commodities Division within the Secretary of State’s office.
|
|
|
|
SB 429 by Sen. Jason Dickerson (R-Canton) prohibited landlords from requiring disabled veterans to have monthly income exceeding twice the monthly rent to qualify as tenants. It applied an income definition as the federal adjusted gross income from all sources under IRS Code.
|
|
|
|
SB 453 by Sen. Carden Summers (R-Cordele) exempted all income received by residents of rural counties between the ages of 16 and 35 from Georgia state income tax, applying to tax years beginning Jan. 1, 2027. It required taxpayers claiming this exemption to submit annual proof of residence within rural counties, including property documents, utility bills, or financial statements.
|
|
|
| Institutional Real Estate Investors
|
SB 463 by Sen. Greg Dolezal (R-Cumming) prohibited business enterprises from owning more than 500 single-family residential properties and banned foreign investment vehicles from owning single-family rental properties. It allowed private lawsuits seeking damages of up to $100,000 per violation and required real estate brokers to disclose these restrictions to business clients.
|
|
|
| Real Estate Disclosures and False Liens
|
HB 618 by Rep. Joe Campbell (R-Camilla) required sellers of residential real property in Georgia to disclose any flood damage history during their ownership to potential buyers. It also established a $1,500 fine for frivolous mechanic liens filed without substantial justification or in bad faith. The Senate sponsor was Sen. Steven McNeel (R-Macon).
|
|
|
| Local Government Investment Pools
|
HB 871 by Rep. Victor Anderson (R-Clarkesville) expanded investment options for local government entities, including counties, cities and school systems, to include money market funds, commercial paper and new local government investment pools formed through interlocal agreements. The bill also established a board of management for these trusts, composed of participating members and overseen by private investment advisors. GBA and the Office of the State Treasurer raised concerns about the bill and noted that it would create unfair competition for banks seeking public deposits. Banks are currently required to collateralize public deposits above FDIC limits, sometimes up to 110%, while the proposed new pools would not face similar collateralization requirements to protect the funds.
|
|
|
Securities and Commodities Regulation
|
HB 934 by Rep. Noel Williams (R-Cordele) transferred regulatory authority over securities and commodities from the Secretary of State to the Department of Banking and Finance. It established an advisory board of up to 12 members with expertise in securities and commodities to advise the Banking Commissioner. All existing rules, regulations, and contracts related to securities regulation would be continued under the Department of Banking and Finance, and employees of the Secretary of State currently engaged in securities regulation would be transferred to the Department.
|
|
|
HB 1114 by Rep. Bill Yearta (R-Sylvester) required Georgia public schools to provide financial literacy instruction to all students K-12, with a mandatory half-credit course for high school graduation. It prohibited schools from partnering with or accepting materials from gambling enterprises while requiring gambling risk education in financial literacy curriculum. The bill was amended in the Senate Education and Youth Committee to include state-level requirements for digital literacy and online safety education for students K-12. The Senate sponsor was Sen. John Albers (R-Roswell). GBA supported this measure.
|
|
|
|
HB 1166 by Rep. Tangie Herring (D-Macon) exempted residential dwellings of 400 square feet or fewer from local zoning decisions when located on property where residential uses are authorized. It preserved local government authority to enforce building codes, septic regulations, historic district rules, manufactured home standards and flood insurance requirements.
|
|
|
| Georgia Housing and Finance Authority
|
HB 1180 by Rep. Clint Crowe (R-Jackson) eliminated outstanding bond limits for the Georgia Housing and Finance Authority's single-family residential housing program and other financing programs. It required all authority bonds to include a statement clarifying they do not constitute state debt or pledge state backing.
|
|
|
|
HB 1233 by Rep. Kasey Carpenter (R-Dalton) authorized local governments to waive development impact fees for workforce housing projects without requiring alternative funding sources. It prohibited municipalities and counties from increasing impact fees on other projects to offset revenue lost from workforce housing exemptions.
|
|
|
| In-Person Electronic Notary
|
HB 1437 by Rep. Houston Gaines (R-Athens) updated notary law to allow in-person electronic notarization (IPEN), enabling signers and notaries to be physically present while using electronic signatures and seals.
|
|
|
Local Government Financing
|
HB 1448 by Rep. Victor Anderson (R-Clarkesville) created a Georgia Local Government Finance Authority to provide financing for local governments through bond issuance and leasing programs. It established a five-member board appointed by state officials to oversee asset financing by local governments.
|
|
|
| Collateral Protection Insurance
|
HB 1554 by Rep. Jutt Howard (R-Carrollton) established a comprehensive regulatory framework for collateral protection insurance on residential mortgage properties in Georgia. It required insurers to base coverage on replacement cost value and prohibited certain business practices between lenders and insurance companies.
|
|
|
| First Time Homebuyer Savings Account
|
HB 1607 by Rep. Scott Hilton (R-Peachtree Corners) created first-time homebuyer savings accounts with state tax deductions for contributions up to $6,000 annually for individuals or $12,000 for married couples. It allowed tax-free growth on earnings when funds are used for qualified home purchase expenses like down payments and closing costs.
|
|
|
GBA Represented at the Capitol
|
The association’s advocacy team has been hard at work representing the interests of banking at the State Capitol. Reach out to any of them if you need information about a bill, contact information for your representatives or tips on where to park if you’re coming for a visit. Here’s their contact information:
-
Elizabeth Chandler, executive vice president, government relations and advocacy: echandler@gabankers.com, 404.372.7893
-
Bo Brannen, senior vice president, member services and advocacy: bbrannen@gabankers.com, 404.731.9886
-
Steve Bridges, government relations consultant: sbridges@gabankers.com, 770.789.5605
-
Tripp Cofield, president and CEO: tcofield@gabankers.com, 617.909.9530.
|
We will publish future editions of the Legislative Update after the General Assembly adjourns each week. Please let us know if you have questions or comments on issues of interest to you.
|
|
|
Manage your preferences | Opt Out using TrueRemove™
Got this as a forward? Sign up to receive our future emails.
View this email online.
|
1475 Peachtree St. NE Suite 800 | Atlanta, GA 30309 US
|
|
|
This email was sent to kprokos@gabankers.com.
To continue receiving our emails, add us to your address book.
|
| |
|
|
