Georgia House Bill HB408

Georgia 2023-2024 Regular Session

• Introduced: 2/14/23
• Report Pass: 2/28/23
• Engrossed: 3/2/23
• Refer: 3/6/23
• Report Pass: 3/16/23
• Enrolled: 4/3/23
• Chaptered: 5/5/23
• Passed: 5/5/23

Caption

Sales and use tax; exemption for competitive projects of regional significance; change sunset provision

Impact

The effect of HB 408 is substantial, as it encourages businesses to invest in construction and operation within Georgia by alleviating some tax burdens. This could potentially lead to job creation and regional economic growth, supporting sectors that enter into competitive projects. The stipulation that items used for construction qualify for exemption indicates a targeted approach aimed at stimulating specific economic sectors and generating broader economic benefits.

Summary

House Bill 408 aims to extend the sunset provision for sales and use tax exemptions related to competitive projects of regional significance in Georgia. The bill amends Code Section 48-8-3 of the Official Code of Georgia Annotated to allow exemptions for tangible personal property used during the construction phases of such projects until December 31, 2026. This extension is designed to incentivize business operations and expansions that have a significant regional impact, as determined by the commissioner of economic development.

Sentiment

The general sentiment surrounding HB 408 appears to be favorable among business advocates and economic development stakeholders who view the measure as a means to enhance the state's attractiveness to businesses. However, there may also be concerns regarding the long-term fiscal implications for tax revenues and whether these exemptions lead to sustainable growth. Proponents argue that the benefits of attracting significant investments will outweigh any potential losses in tax revenue.

Contention

Notable points of contention relate to the potential misuse of tax exemptions, where critics might argue that the bill could create a disparity in how regional projects are prioritized or funded. There are concerns that extending the exemption may disproportionately benefit larger corporations, possibly at the expense of smaller local businesses that may not have the same access to such competitive projects. The bill also involves the implementation of regulations by the commissioner, raising questions about the transparency and criteria used to determine what qualifies as a competitive project of regional significance.