Bill > HB140

This bill, known as the "End Local Taxation by Citation Act," introduces a significant restriction on municipal revenue generation from court-related financial penalties. Specifically, the legislation limits municipalities to deriving no more than 10 percent of their annual budget from criminal or civil fines and forfeiture actions. Any funds collected beyond this 10 percent threshold must be transferred to the state's general fund at the end of the fiscal year, with municipalities required to transmit these excess funds to the State Treasurer within 30 days of their fiscal year's conclusion. This provision aims to prevent local governments from relying too heavily on fines and penalties as a revenue source, effectively discouraging what some might consider a practice of "policing for profit." The new rule will apply to municipal budget ordinances for fiscal years beginning on or after January 1, 2026, giving local governments time to adjust their financial strategies. The bill also preserves municipalities' home rule powers while introducing this specific limitation on fine-based revenue, signaling a nuanced approach to local government financial management.

Government Affairs

https://www.legis.ga.gov/legislation/69562