(The Center Square) — Georgia voters could decide during November’s election whether to reduce the tangible personal property tax Georgia’s small businesses pay.
Peach State lawmakers approved House Bill 808, sending it to Republican Gov. Brian Kemp for consideration. The Senate voted 50-0 this week in favor of the measure.
“House Bill 808 raises the threshold for paying this onerous tax,” National Federation of Independent Business State Director Hunter Loggins said in a statement. “Small businesses already pay sale taxes on equipment, desks, and other property.
“The tangible personal property tax means they’re paying taxes on the same items year after year,” Loggins added. “Raising the threshold for paying this tax would ease the financial pressure on employers struggling with inflation that continues to drive up the cost of owning and operating a small business.”
If Kemp signs the measure, voters will decide whether to increase the exemption from $7,500 to $20,000.
“As a CPA, I’ve recognized that the most frustrating tax for small business owners is the TPP tax,” Alison Couch, owner of Ignite Accounting and Business Advisors in Harlem and an NFIB Georgia Leadership Council member, said in a statement released by the group. This annual tax filing and payment is burdensome and costly. Tuesday’s vote is a big win for small businesses like mine.”
If approved by voters, the change would take effect on Jan. 1, 2025.
“This bill is essential for small businesses because it will reduce paperwork and cut down on property taxes,” Lt. Governor Burt Jones, a Republican and an NFIB member, said in a statement. “Our small businesses support Georgia’s economic engine and I will continue to prioritize initiatives that ease burdens on them and promote efficiencies.”
