Georgia’s Jobs and Family Tax Reform Plan has already paid dividends. The elimination of the sales tax on energy used in manufacturing played a critical role, for example, in Georgia’s successful wooing of Caterpillar. When fully phased in, this exemption will save manufacturers $150 million per year. Even as we focus on boosting manufacturing jobs, we cut taxes for our state’s No. 1 industry by $17 million a year. This bill creates a more consistent tax code for the agriculture industry by revising sales tax exemptions and abandoning a patchwork system that penalized some agribusinesses.
I saw the benefits of the agricultural sections of the bill firsthand this week in Albany, where a company that makes crop-duster planes competes with a similar plant in Texas and with ground rigs that spray crops. Thrush Aircraft has grown rapidly in recent years, expanding employment from 65 to nearly 150 jobs. It also exports 60 percent to 75 percent of its planes, often utilizing the Port of Savannah. But the company faced ridiculous disadvantages in our Swiss cheese of a tax code.
A Georgia farmer would have to pay sales tax if he bought a plane from Thrush Aircraft, but he’d be exempt if he bought one from a Texas company or if he bought a ground rig. That’s crazy, and we fixed it. That’s one example of how we added common sense to the tax code while also helping a job creator.
Apart from making Georgia more competitive, this reform gives a helping hand to working families by decreasing the marriage penalty. By increasing the personal exemption for married couples by $2,000, this tax cut will save Georgia families about $140 million each year. The entire state benefits when we foster an atmosphere that promotes strong families. Families will see further relief at the cash register. We’ve brought back the sales tax holidays for back-to-school shopping and for energy-efficient appliances.
One of the most significant changes will make for happier birthdays for all Georgians who own cars. House Bill 386 eliminates the hated “birthday tax” on vehicles. Starting next year, car owners only have to pay a one-time, upfront fee.
The special council on tax reform and the Competitiveness Initiative team traveled the state and gave all Georgians a chance to express their ideas, their perspectives and their concerns.
At the end, this open, transparent process delivered a significant reform that provides tax relief to individuals, families and job creators, promotes fairness and equal treatment under the law, and advances our state’s economic competitiveness.
This is a great step toward making Georgia the No. 1 place in the nation to do business.
Nathan Deal is governor of Georgia.
