Georgia Governor Brian Kemp, a Republican, has taken a significant step by signing a measure that enables Georgia voters to determine whether to raise the threshold for paying the state’s tangible personal property tax. This move empowers citizens to have a say in an important financial matter that directly affects them.
House Bill 808 has proposed a referendum on November 5, which coincides with the upcoming presidential election. Georgia voters will have the opportunity to vote on whether to increase the tangible personal property tax exemption from $7,000 to $20,000. If this proposal is approved, it would apply to all tangible personal property, with the exception of motor vehicles, trailers, and mobile homes.
NFIB State Director Hunter Loggins expressed his enthusiasm for the potential impact on Georgia’s small businesses, stating, “This has the potential to be a significant victory. The current $7,500 threshold is outdated and should be adjusted to account for inflation, at the very least. By increasing the exemption threshold to $20,000, Georgia will no longer be ranked at the bottom when it comes to calculating tangible personal property. It is high time for Georgia to address this burdensome tax.”
Republican Lt. Governor Burt Jones took a leading role in advocating for HB 808, receiving support from influential organizations such as the Georgia Chamber of Commerce.
During this year’s legislative session, it was no surprise that there was a strong emphasis on small business-friendly initiatives. Georgia Republicans had already made their intentions clear, stating their plans to pursue a “pro-business” agenda. In fact, back in November, Jones and Republican state senators had announced their priority of a “Red Tape Rollback” initiative, which Jones had previously hinted at.
State Senator John Albers, a Republican from Roswell, expressed his belief in the importance of safeguarding small businesses as a means to foster economic growth and benefit the citizens. He emphasized that Georgia’s small businesses are integral to the state’s economy and expressed his pride in contributing to the ongoing success of the state through the introduction of this legislation.
The change will take effect on January 1, 2025, pending voter approval.