Changes to Georgia’s Tax Code for 2013

Georgia’s General Assembly last session passed House Bill 386 which was signed into law by Governor Deal. Many of the bill’s provisions will become effective January 1, 2013. With January around the corner, we thought it might be helpful to review a few of the changes that have gone into effect as a result of the comprehensive tax legislation:

Four year phase-out of the state sales tax on energy used in manufacturing;

  • Reduces the marriage penalty in our income tax code by cutting income taxes for married couples;
  • Revises sales tax exemptions on agriculture to ensure fairness and consistency;
  • Freezes and caps retirement income tax exclusion for seniors at current level of $65,000 ($130,000 per couple);
  • Eliminates sales tax exemption for film productions;
  • Allows certain regionally-significant projects to be exempt from sales tax on construction materials;
  • Provides a two-year sales tax holiday for school supplies and energy and water efficient products;
  • E-Fairness: requires online retailers with in-state affiliates to collect and remit sales taxes the same as businesses who call Georgia home;
  • Creates a one percent sales tax exemption on commercial aviation fuel to make our fuel rates more competitive with other major airports; and
  • Creates and independent tax tribunal in the executive branch offering an independent, qualified review of complex tax disputes between Georgia taxpayers and the state Department of Revenue.

For More Information on Changes to Georgia’s Tax Code for 2013, please contact us.