2026 Legislative Days 19-22
Session Passes Midpoint
The Capitol was abuzz this week as the House and Senate assembled for Legislative Day 20 on February 18, marking the midpoint of Georgia’s forty-day session. As lawmakers enter the third quarter, their attention shifts from introducing new bills to committee vetting and floor action ahead of Crossover Day on March 6.
Adding to the momentum at the Capitol is the ever-present hum of election-year politics. House President Pro Tempore Jan Jones announced she will retire at the end of her current term after 24 years in office, and Public Service Commissioner Tricia Pridemore confirmed she will not seek reelection. Meanwhile, dozens of GOP hopefuls traveled to Rome to greet President Donald Trump on February 19. Qualifying for the 2026 election cycle begins March 2.
Income Tax Reform
On February 12, the Senate passed several measures aimed at restructuring Georgia’s income tax system. SB 476 cuts the income tax rate to 4.99%, dramatically increases the standard deduction, and eliminates nearly all tax credits no later than 2032. The legislation eliminates the following bank-related incentives:
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Dollar-for-dollar income tax credit for depository financial institutions,
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Credits tied to local business license taxes on banks,
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Credits tied to special state occupation taxes on banks.
Of particular concern for banks is the proposed repeal of the dollar-for-dollar state income tax credit for depository financial institutions. Georgia taxes banks differently than most businesses: in addition to income tax, banks pay special state and local gross receipts taxes (“bank tax”). The credit exists to prevent double taxation by ensuring banks pay the greater of the two — not both.
If SB 476 is signed into law in its current form, Georgia banks will face a $55 million annual increase in taxes paid to state and local governments. Click here to read the whitepaper, The Necessity of the Georgia Income Tax Credit for Depository Financial Institutions.
For bankers that would like to reach out to your legislators on this issue, click here for talking points that outline concerns with the bill.
Interchange Fees
Current Proposal
SB 512 by Sen. Drew Echols (R-Gainesville) prohibits interchange fees from being assessed on the sales tax portion of credit and debit card transactions — a change CBA and other financial trade groups oppose. The bill was introduced and assigned to the Senate Finance Committee on February 17.
Background
Interchange fees are paid by retailers to facilitate electronic payments made by customers using credit and debit cards. Currently, interchange fees are calculated on the final purchase amount.
The financial services trade groups and interested parties have been involved in the interchange debate since 2023 starting with SB 126. A year later, the legislature took a different approach (via HR 1135) and created the House Study Committee on Credit Card Fees on State Sales and Excise Tax. The Study Committee convened in the summer of 2024 and heard testimony from various industry representatives. A final study committee report was issued on the subject with the recommendation of an increase in Georgia’s vendor compensation rate.
In addition to SB 512, HB 431 also remains active. Both bills exclude sales tax within credit and debit card transactions. Point-of-sale systems are not currently programmed to accommodate this requirement and such a wholesale change should be pursued at the federal level, rather than state-by-state. Proponents of the bill include Home Depot and RaceTrac.
Alternative Approach
HB 439, which remains active in 2026, takes the approach recommended by the 2024 study committee and increases the compensation vendors receive for the collection and remittance of sales tax. This approach would not have a direct impact on our community banks. HB 439is pending in the Senate Finance Committee.
CBA and other financial trades are encouraging Sen. Echols and members of the Senate Finance Committee to consider HB 439 rather than SB 512.
The Georgia Public Policy Foundation wrote an article on this topic titled “Attacks on Credit Cards Will Hurt Georgia Consumers and the State Economy”.
Member of the Senate Finance Committee are as follows:
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Chuck Hufstetler, R—Rome
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John Albers, R—Roswell
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Billy Hickman, R—Statesboro
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Jason Anavitarte, R—Dallas
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Lee Anderson, R—Grovetown
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Bill Cowsert, R—Athens
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Greg Dolezal, R—Cumming
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Steve Gooch, R—Dahlonega
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Sonya Halpern, D—Atlanta
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Marty Harbin, R—Tyrone
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Mike Hodges, R—Brunswick
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Nan Orrock, D—Atlanta
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Michael 'Doc' Rhett, D—Marietta
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Shawn Still, R—Suwanee
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Blake Tillery, R—Vidalia
Active Measures: Banking
Department of Banking Housekeeping (HB 945) Rep. Bruce Williamson, R-Monroe
Favorably reported from the Senate Banking and Financial Institutions Cmte on Feb-19
This year’s legislative housekeeping package is one of the most consequential in recent memory. The bill establishes a process to allow financial institutions to place temporary holds on transactions when they reasonably suspect financial exploitation of elderly (65+) or disabled adults. The initial hold may last up to fifteen business days, with one additional fifteen-day extension permitted. The financial institution must provide notice of the hold to both the account holder and any trusted contacts. Institutions acting in good faith receive civil, criminal, and administrative immunity.
The legislation also regulates cryptocurrency ATMs, with mandatory consumer disclosures, fee caps, and daily transaction limits. It expands the Department’s authority over litigation financiers to increase transparency and accountability; this was part of last year’s legal reform package.
The bill makes other technical changes, including:
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Updating merger notification and approval procedures
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Clarifying MALPB rules
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Clarifying certain credit reporting requirements
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Updating mortgage, installment lending, and fair lending provisions
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Clarifying Department authority across charters and licensing regimes
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Authorizing the Department to object to the merger or consolidation of a bank or trust
For more information, click here for a summary provided by the Department.
Securities and Commodities Regulation (HB 934) Rep. Noel Williams, R-Cordele
Favorably reported from the House Banks and Banking Cmte on Feb-5
HB 934 transfers the regulation of securities and commodities from the Secretary of State to the Department of Banking and Finance. Doing so consolidates financial regulation within the Department, a move that is intended to improve oversight and coordination. This change comes on the heels of the First Liberty Building & Loan scandal, in which the Secretary of State’s Securities Division failed to uncover misuse before federal authorities intervened.
Voluntary Portable Benefit Plan Act (HB 987) Rep. Todd Jones, R-Cumming
Adopted by the House. Assigned to the Senate Insurance and Labor Cmte on Feb-18
HB 987 creates a legal framework for voluntary portable benefit plans for independent contractors. It is designed to allow those workers to accumulate and manage benefits (like insurance and retirement savings) without changing their legal classification as independent contractors. It specifically authorizes banks to serve as portable benefit account providers, creating opportunities for new deposit products.
Local Government Investment Pool (SB 441) Sen. Marty Harbin, R-Tyrone
Favorably reported from the Senate Banking and Financial Institutions Cmte on Feb-19
SB 441 requires certain pooled investments to be approved by the State Depository Board.
Stablecoin (HB 1272) Rep. Todd Jones, R-Cumming
Favorably reported from the House Banks and Banking Cmte on Feb-20
This bill creates a state-level regulatory framework for payment stablecoin issuers, aligning state law with the federal GENIUS Act. The bill requires licensure and regulation by the Department of Banking and Finance.
These other banking measures are also active:
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Allows 9th and 10th grade students to take the financial literacy course (HB 1114)
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Modifies how the max contribution limit for higher education savings plans is set (HB 962)
Active Measures: Property
Notice of Foreclosure (HB 948) Rep. Beth Camp, R—Concord
Assigned to the Senate Banking and Financial Institutions Cmte on Feb-17
HB 948 requires that foreclosure notices include information about who can modify loan terms and how property owners can claim surplus sale proceeds.
Debtor's Aggregate Interest (HB 1024) Rep. Soo Hong, R-Lawrenceville
Favorably reported from the House Judiciary Cmte on Feb-18
HB 1024 increases the exemption for a debtor's aggregate interest in real property or personal property that the debtor or a dependent of the debtor uses as a residence from $21,500 to $50,000 or from $43,000 to $100,000 if it is the primary residence of both spouses. Neil Gordon, a nationally recognized leader in bankruptcy law, urged the committee to reject the legislation, indicating it would swing the pendulum too far in favor of debtors.
Real Estate Security and Title Act (HB 1042) Rep. Matt Reeves, R-Duluth
House withdrawn and recommitted to the House Judiciary Cmte on Feb-19
HB 1042 allows secured creditors to submit credit bids at judicial sales. Purchases may pay with a cashier’s check, certified check, or other certified funds, and the foreclosing lender may submit a credit bid instead of tendering any funds. It also strengthens privacy protections for current and former judges and their spouses and increases eligibility standards for special masters in certain quiet title proceedings.
Property Owners’ Associations. Legislators in both the House and Senate are interested in reforming predatory practices of property owners’ associations (POAs), with an emphasis on transparency and enforcement actions that threaten ownership. Several bipartisan bills are active in this space, including:
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HB 512 to require POAs to provide annual certificates of good standing
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HB 1219 to require all new associations be subject to the Property Owners’ Association Act
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HB 1221 to require property owners' associations to disclose certain fines and fees before an association can collect reasonable attorney's fees.
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HB 1222 to standardize the process for obtaining an estoppel when a property is being sold or refinanced
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HB 1251 to require certain disclosures to unit owners.
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SB 108 to require alternative dispute resolution prior to enforcing a lien
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SB 361 to authorize liens and the use of assessments by property owners' associations
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SB 393 to prohibit property owners’ associations from traffic and parking enforcement
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SB 406 to raise the minimum delinquency threshold for foreclosure
Corporate Home Ownership. Policymakers continue to grapple with the issue of corporate ownership of single-family residential properties (SFRP). Legislators are considering a myriad of options:
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HB 305 to prohibit large corporations from owning more than 25 SFRPs in a single county
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HB 374 to establish housing management databases of corporate owners of more than 10 contiguous units of SFRP in a single jurisdiction
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HB 403 to limit corporate ownership of SFRPs to no more than 12,000 units statewide
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HB 864 to require corporations to divest all SFRP by 2030
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HB 1017 to tax certain corporate-owned SFRP at 100% of fair market value
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HB 1055 to prohibit certain entities from owning 25 or more SFRPs
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HB 1115 to prohibit corporations from owning more than 2,000 SFRPs
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HB 1252 to prohibit certain corporations from owning SFRPs
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HR 1103 to encourage local governments to assist with reducing “Wall Street landlord ownership”
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HR 656 to create a study committee on this topic
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SB 313 to require a registry of owners with more than 20 residential rental properties statewide
Active Measures: Taxation
Eliminate Ad Valorem Tax on Timber (HR 1000) Rep. Chuck Efstration, R—Mulberry
Favorably reported from the House Ways and Means Cmte on Feb-11
HR 1000 proposes an amendment to the Constitution to eliminate the ad valorem tax assessment of certain timber at sale or harvest. To make affected cities, counties, and school districts whole, the state will annually appropriate funding according to a formula.
Property Tax Reform (HB 1116 / HR 1114) Rep. Shaw Blackmon, R-Bonaire
Considered by a House Ways and Means Subcmte on Feb-9
The Georgia HOME Act eliminates property taxes on homesteaded property statewide by 2032. The bill caps local property tax revenue growth at 3% for non-homesteaded property, which continues to pay property taxes. To make up for the $5 billion in lost revenue for schools and local governments, the proposal allows those entities to repurpose existing sales taxes or charge assessments that are not tied to property value.
Active Measures: Courts and Legal Reform
AI and Product Liability (SB 488) Sen. Ed Setzler, R-Acworth
Assigned to the House Judiciary Cmte on Feb-11
SB 488 defines artificial intelligence systems as personal property, allowing plaintiffs to use Georgia’s product liability statute. It allows sellers of AI to be held liable for injured minors. It establishes a rebuttable presumption that the manufacturer and the seller had a duty to warn about the risk that caused the injury.
Magistrate Court Fees and Costs (HB 999) Rep. Rob Leverett, R-Elberton
Pending in the Senate Judiciary Cmte
This legislation clarifies fees and costs associated with Magistrate Court proceedings. It also corrects a drafting error from a previous bill related to the nonpartisan election of magistrates.
Increase Magistrate Court Jurisdiction (SB 405) Sen. Ed Setzler, R-Acworth
Pending in the Senate Rules Cmte
SB 405 increases the max value of civil claims that can be tried in magistrate court from $15,000 to $50,000.
Business Litigation Reform (HB 1185) Rep. Chuck Efstration, R-Mulberry
Pending in the House Judiciary Cmte
This is business-friendly litigation reform is designed to make Georgia more attractive for incorporation and headquarters operations.
Active Measures: General Business
Disposition of Unclaimed Property (SB 403) Sen. Kay Kirkpatrick, R—Marietta
Assigned to the House Judiciary Cmte on Feb-9
SB 403 updates Georgia’s Unclaimed Property Act, including provisions addressing the treatment of virtual currency. The bill makes other administrative changes, including clarifying when property is presumed abandoned, expanding holder notice requirements, adjusting publication standards, and modernizing claims processing and payment methods.
Reduce the Income Tax Rate (HB 1001) Rep. Will Wade, R-Dawsonville
Favorably reported from the House Ways and Means Cmte on Feb-11
HB 1001 accelerates a reduction in the state income tax rate to 4.99% effective for tax year beginning January 1, 2026. This is one of Governor Kemp’s legislative priorities.
Tax Credit for Individuals (HB 1000) Rep. Matthew Gambill, R-Cartersville
Considered by a House Ways and Means Subcmte on Feb-9
HB 1000 provides a one-time tax credit for individual taxpayers who filed income tax returns for the 2024 and 2025 taxable years. This is a key component of Governor Kemp’s final legislative package.
Municipal Election Schedule (SB 422) Sen. Tim Bearden, R-Carrollton
Pending in the Senate Ethics Cmte
SB 422 requires most municipal elections to occur in even-numbered years. It provides a one-year extension to the terms of office of most municipal officers for the transition of municipalities into even-numbered year election cycles.
ICBA Capital Summit
ICBA’s 2026 Capital Summit will be held May 4-7, 2026, at the Westin Washington, DC, Downtown. For more information on the Summit or to register for the event, click here.
The next legislative update will be available on February 27
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