This year’s session of the General Assembly was highly charged. Debates over major policy initiatives — including efforts to reduce income and property taxes, reform election procedures and improve childhood literacy — took center stage. Georgia’s franchise auto dealers avoided most of the political attention this session — thankfully, perhaps — but at least two bills passed that warrant your attention because both could impact daily business operations.
The first bill is Senate Bill 293. This bill was part of a continuing effort to rein in fraud and dealer plate abuse by certain used car dealers. This bill would limit the use of dealer plates for both new and used car dealers to six months per vehicle, and it would require that all dealer plates be metal with raised text, effective Jan. 1, 2027.1 This bill also increases penalties for tampering with, fabricating or altering license plates (including temporary operating permits); increases the bond requirement for used car dealers to $50,000; increases regulatory oversight of used car dealers by the Department of Revenue; and subjects the Used Car Board to the Administrative Procedure Act.2
The other bill worth mentioning is House Bill 1112. This bill came to be after the U.S. Department of the Treasury announced in late 2025 that it would officially cease the production of the one-cent coin, with the final batch of pennies scheduled to run out in late 2026. However, the federal government did not immediately demonetize the pennies that remain in circulation. Those pennies remain “legal tender” but are not being replenished by new one-cent coins. As a result, the state legislature felt compelled to create a framework for “penniless” cash transactions.
House Bill 1112 permits businesses to round a final sale total up or down to the nearest nickel when a retail customer purchases an item with cash. That is, totals ending in .01, .02, .06 or .07 are rounded down. Totals ending in .03, .04, .08 or .09 are rounded up. Exceptions to this framework would include payment with a check, money order, credit card, debit card or electronic funds transfer unless cash is disbursed to the customer.
When do these bills take effect?
Both bills were signed into law by Gov. Kemp on May 11. HB 1112, the “penny bill,” took effect upon the governor’s signature. The provisions related to dealer plates in SB 293 will take effect on Jan. 1, 2027, while the other provisions related to used car dealers will take effect on July 1, 2026.
1.Before SB 293, there was no specific time limit on how long a dealer plate could be on a specific vehicle. However, sales and use tax would apply on the vehicle once it was used as a demonstrator for more than six months (and that sales and use tax rule still applies going forward). DOR Rule 560-12-2-0.09.
2.The full name of the Used Car Board is the “Georgia State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers.”
