The place to find business sales tax information

— as well as solutions, services and jobs!

Sales Tax Updates from Georgia Legislative Sessions

author photo of Lauren Stinson

Georgia legislators have voted on several House bills during the 2015 Legislative Sessions that will impact the sales tax practices of many corporate taxpayers. Here’s the status of some of the bills to track:

House Bill 277 passed, extending favorable sales & use tax treatment to all samples of floor coverings. When products are withdrawn from inventory and used for promotional purposes, the manufacturer is liable for use tax. Currently, the measure of tax for carpet samples is lower than other types of flooring. The carpet industry has been able to use fair market value as the use tax basis, whereas the rest of the flooring industry had to use full manufactured cost, which was significantly higher. This bill broadens the treatment to include all hardwood, engineered hardwood, laminate, stone, tile, vinyl, linoleum and more.

House Bill 265 did not pass. This bill would have reduced the interest rate from 1% per month (12% per year) to 3% percent per year on past due taxes. Currently, the interest of 1% per month applies to both taxes due and taxes overpaid.

House Bill 415 also did not pass. This bill, drafted by the Georgia Association of Manufacturers would have provided a sales tax exemption for machinery, equipment and supplies used for research and development. Research and development equipment and supplies remains taxable for manufacturers, while the state has significantly broadened the number of exemptions for manufacturers.

Finally, Senate Bill 52, which focuses on the open records policy for tax credits or tax exemptions granted to individuals or businesses under state law, did not pass.
Overall, the sales tax changes created by these House bills are mostly pro-business.

What do you think was the most newsworthy decision handed down by Georgia legislators concerning sales tax? Were you surprised by any decisions?

About the Author: Lauren Stinson, CMI, is Owner and President of Windward Tax, a sales and use tax consulting firm. She has more than 20 years of experience working with manufacturers on sales and use tax issues. Lauren is pleased to share her expertise with SalesTaxSupport readers. She is the Manufacturing contributor for SalesTaxSupport’s Industry blog and she is the Georgia Sales Tax contributor for SalesTaxSupport’s State blog.

Comments or questions may be submitted by using the on-page "Comment" feature, subject to disclaimer at bottom of page. More specific questions or requests may be sent to Lauren directly using the orange "REQUEST" link on Lauren's Firm Profile page.

Other recent “Georgia (GA)” posts by Lauren Stinson, CMI:

NOTE: All blog content, comments, and participation subject to disclaimer at bottom of page.

Comments

2 Responses to Sales Tax Updates from Georgia Legislative Sessions

  • Posted by John on October 13, 2017 8:57am:

    Should we charge sales tax on kitchen cabinets that are designed and installed by us? I am told that HD and Lowes do not.

    • Posted by Author photo of Lauren Stinsonlaurenstinson on October 26, 2017 6:10am:

      Thanks for your questions, John.

      Georgia has different laws related to “installation labor” and whether you are installing tangible property, or if the sale is considered a construction contract. We do not have enough information to confirm if tax should be billed by you. Please contact the department of revenue at www.dor.georgia.gov to confirm the tax treatment for this issue.

Submit a comment or question - only your first name will appear

Disclaimer:

Access to any portion of SalesTaxSupport.com is contingent upon your acceptance of our Terms of Use. This Web Site and content provided by STS Publishing, LLC and its third party content providers, including, but not limited to information, documents, forms, comments, advice and opinions, is for informational purposes only, and is not a substitute for professional advice, nor does the use of this Web Site constitute a professional-client relationship. The Web-Site also includes advertisements, directory listings, job postings and links to third party web sites, all of which are provided for your convenience only and in no way constitute a referral, endorsement, or warranty by SalesTaxSupport.com of any product or service provided by such third parties. All content is provided “as is” with no guarantee regarding accuracy, suitability, or timeliness. Your reliance on any content accessed on or through the Web Site, or on any product or service provider is strictly at your own risk.