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HR 882

Commending James R. Tucker II.

2025 Regular Session Introduced by Mike Jones

Georgia local school systems could levy up to 1% sales tax for M&O, offset by reduced property millage; requires voter referendum and lasts up to 5 years.

Bill text as passed House (HR882ER)
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Bill Summary · HR 882

Summary — HR 882 (Georgia House Resolution)

Status: House Second Readers (introduced Jan 31, 2025; adopted by House June 1, 2025; reported enrolled)
Subject: Proposed constitutional amendment to allow local school systems to levy a sales and use tax for maintenance and operations (M&O)

Purpose

HR 882 proposes an amendment to Article VIII, Section VI, Paragraph IV of the Georgia Constitution to authorize local school systems to impose a local sales and use tax (up to 1%) specifically to fund maintenance and operations (M&O) expenses. The amendment also requires a corresponding reduction in property tax millage to offset the sales tax proceeds.

Key provisions

  • Authorizes a local sales and use tax for educational purposes whose rate is up to 1% and duration is up to five years (consistent in form with the state's special county 1% sales tax law).
  • Requires approval by a majority of qualified voters in a referendum held within the local taxing jurisdiction.
  • When a county contains independent school districts, the school district or combination of districts representing a majority of students (based on the latest FTE count) may call the referendum.
  • Newly added language specifically permits the use of sales tax proceeds for maintenance and operations (M&O) costs of the school system (in addition to existing authority for capital outlay and debt retirement).
  • Each local board must compute the millage rate necessary to fund M&O from property taxes and then reduce that millage rate by the amount that would generate revenue equal to the sales tax distributions the school system received in the prior year. In short: sales tax proceeds are intended to offset (not augment) property tax revenue for M&O.
  • A school system may lawfully levy both the existing sales tax for capital outlay/debt and the new sales tax for M&O concurrently (subject to separate referenda).
  • Taxes imposed under this Paragraph are excluded from general-law limits on the maximum amount of local sales and use taxes.

Who is affected

  • Local school boards and school systems (county and independent districts) — new local revenue option for M&O.
  • Local voters — must approve any local referendum authorizing the tax.
  • Property taxpayers — may see reductions in school property tax millage equal to the amount of sales tax distributions received by the school system.
  • Consumers — pay any additional local sales tax at the point of sale.
  • State and local tax administrators (for collection, distribution, and certification duties).

Procedural/timeline notes

  • HR 882 is a resolution proposing a state constitutional amendment. If approved by the General Assembly and enacted according to state procedures, the amendment must be submitted to Georgia voters for ratification or rejection at a statewide election.
  • Any imposition of the authorized tax by a local board requires a local majority vote in a referendum and is limited to a maximum 5‑year term; reimposition must follow the same referendum process and cannot begin until any existing local education sales tax expires.

Potential impacts and considerations

  • Shifts part of school M&O funding from property taxation to a consumption-based revenue source, with an explicit millage offset to prevent net increases in school property taxes tied directly to the sales tax proceeds.
  • Could stabilize or diversify local school funding but may introduce volatility tied to sales tax collections.
  • Administrative issues: calculating the accurate millage offset, certifying compliance, and managing timing between sales-tax collections and property-tax adjustments.
  • Because the tax is a constitutional local-option measure, implementation would vary by jurisdiction depending on referendum outcomes.

Compiled from official sources — confirm details with the bill’s official record.

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