Tax Reform
Since 2009, the Chamber has worked closely with Georgia’s elected leaders to design and implement comprehensive tax reforms that would benefit businesses and families throughout our state.
We were honored to be a part of the Special Council on Tax Reform and Fairness for Georgians in 2010 and to play a leading role in the Georgia Competitiveness Initiative this past year. Both efforts resulted in a number of important proposals – many of which have been included in the measure introduced during the 2012 General Assembly by the Joint Committee on Georgia Revenue Structure in the form of House Bill 386.
This bill, when combined with HB 868, which modifies Georgia’s jobs tax credit and incentive programs, will result in an updated tax code which will without question help attract new investment, encourage job creation, provide support to existing businesses, and improve our overall competitiveness.
HB 386 contains the following key provisions:
- Elimination of the sales tax on energy used in manufacturing, mining and agriculture over four years – a long-standing priority of the Georgia Chamber
- Discretion in granting sales tax exemptions for construction of regionally significant projects – a direct result of the Georgia Competitiveness Initiative
- Clarification of Georgia’s current on-line sales tax laws to include purchases from out-of-state companies, leveling the playing field for Georgia-based businesses
- Creation of a one percent sales tax exemption for commercial aviation fuel, stimulating continued growth of our logistics industry
- Revision of sales tax exemptions on a number of key inputs for agriculture, Georgia’s largest industry
- Continuation of key film tax credits so that we can continue to attract production to our state
- Reinstatement of sales tax holidays for school supplies and energy and water efficient products, providing a boost to Georgia’s border communities
- Several personal tax released measures including an increase in the marriage deduction and elimination of the annual “birthday tax” on motor vehicles
