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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 When products are withdrawn from inventory and used for promotional purposes, the manufacturer is liable for use tax.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. Feel free to contact Lauren at or 770-696-4145 (ext. 215) - or submit a consultation request on her Firm Profile page.

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

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