The bill promotes pro-jobs, pro-family tax reform with measures that cut taxes for hard-working Georgians and increases the competitive advantage for Georgia throughout the southeast and the nation. Components of the bill include a three-year sales tax holiday for school supplies and energy efficient products, increase in personal exemption for married couples, elimination of the “birthday” tax and sales tax on motor vehicles, a tax exemption on energy used in manufacturing and construction materials, as well as an E-Fairness measure, which will aid in the growth of local businesses.
The bill will eliminate the “birthday tax” and sales tax on motor vehicles. When a Georgia citizen titles a car in Georgia after Jan. 1, 2013, they will pay a one-time title fee instead of sales taxes and an annual ad valorem tax due each birthday. The title fee rate will be of 6.5 to 7 percent, which is less than or equal to the sales tax in most counties. The bill also includes minimal fee for transfers between immediate family members and eliminates this local tax on the ownership of personal property.
The bill provides a three-year sales tax holiday for school supplies as well as energy and water efficient products. Historically, Georgia is known as one of the first states to establish the popular tax holiday. This cuts sales tax by an estimated $35 million every year for three years for Georgia consumers and reaffirms the legislature’s commitment to Georgia’s families and education. As an additional pro-family component of the bill is reduction of the marriage penalty in the income tax code.
Pro-jobs components of the bill include an E-Fairness measure, which creates equity and fairness among retailers with a business presence in Georgia and levels the playing field so that Georgia businesses may compete equally with out-of-state competitors. This will ensure that local businesses stay competitive in a global economy where more and more goods are sold in cyber-markets.
This is the culmination of years of hard work and dedication by many in the Georgia General Assembly. With the proper foundation laid, Georgia is now poised to remain one of the most competitive pro-business environments in the nation.
Next week, we will begin the final week of the 2012 Legislative Session. I welcome your questions and comments on legislation that we will address in the Senate, as well as ideas on how we can continue to promote tax reform in Georgia. It is an honor to serve you during this time. May God bless the great state of Georgia.
State Sen. Jeff Mullis, R-Chickamauga, represents District 53, which includes all or parts of Walker, Dade, Chattooga and Catoosa counties. He serves as chairman of the Transportation Committee. He can be reached at the Capitol at 404-656-0057, at his district office at 706-375-1776, or by e-mail at email@example.com.