ATLANTA – State Representatives Ellis Black (R-Valdosta), Amy Carter (R-Valdosta) and Jason Shaw (R-Lakeland) announced their support for the inclusion of the sales tax holiday in House Bill 386, also know as the Georgia Jobs & Families Tax Reform Plan, which the Georgia House of Representatives today passed with a vote of 155 to 9.
“For two years I have worked with the House Ways & Means Committee to develop a tax reform plan that included removing the sales tax on energy for manufacturers and removing all of the sales taxes on input expenses for agriculture,” said Rep Black. “Today the House passed HB 386, which not only accomplishes both of these goals but we also put a cherry on top by bringing back the sales tax holiday for back to school items and energy efficient appliances,”
“As one of the Governor’s floor leader in the House, I have worked daily with Governor Deal in his efforts to improve our state’s economy and bring jobs to Georgia,” said Rep. Carter. “These efforts have included working to secure funding for Valdosta State University’s Health Science and Administration building, so that Georgians can receive the training needed for quality jobs, as well as supporting the Governor’s Competitiveness Initiative, which helped develop many of the measures included in HB 386.”
“This is a conservative tax reform plan and a tax cut for Georgians,” said Rep. Shaw. “A lot of work went into this legislation over the last few years, especially with regard to hearing from everyone. As a result, we passed a significant reform to our state’s tax code that will help Georgia businesses create jobs and compete with neighboring states.”
If passed by the state Senate and approved by Governor Deal, HB 386 would implement several changes to Georgia’s tax code. These changes would include reinstituting the sales tax holiday for two years. During the proposed sales tax holiday, Georgia shoppers would be able to forgo paying state sales taxes on school supplies, clothing, footwear, and personal computer equipment, as well as energy efficient, non-commercial products, such as ENERGY STAR dishwashers, refrigerators, washers and dryers, air conditioners, programmable thermostats, ceiling fans, and fluorescent light bulbs. Consumers purchasing water efficient items, like WaterSense low-flow toilets and showerheads, would also save during the temporary state sales tax holiday.
The sales tax holiday was originally implemented in 2002, after strong urging from Lowndes County state representatives who saw the impact that Florida’s sales tax holiday had on south Georgia businesses. Despite its overwhelming popularity, Georgia’s sales tax holiday was eliminated in 2010 due to a dramatic decline in state revenues during the recent recession. Since that time, Representatives Black, Carter and Shaw have argued for the tax holiday’s reinstatement so that Georgia businesses can remain competitive with their counterparts in neighboring states.
Reinstating the sales tax holiday for two years is expected to amount to an $80 million tax cut for Georgians. In addition to this tax cut, HB 386 also eliminates the state sales tax on energy used in manufacturing, replaces the sales tax and annual “birthday tax” on motor vehicles with a one time title fee of 6.5 to 7 percent, and reduces the marriage penalty by cutting income taxes for married people and increasing the personal exemption for married couples. The legislation also revises Georgia’s cobbled together agricultural tax exemptions into three broad input exemptions that would ensure fairness and consistency within Georgia’s number one industry. Additionally, it would eliminate the sales tax exemption on goods used for film production, cap the retirement income exclusion for seniors, and implement an e-fairness policy that shifts the payment and remittance burden of state sales taxes from consumers of online products to online businesses. HB 386 would also allow certain projects of regional significance to exempt construction materials from the state sales tax and lower the state tax on aviation fuel. Together, these tax reforms create a comprehensive shift in Georgia’s tax policy, which will create a modern tax code that benefits families and levels the playing field for businesses that create jobs.
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