Staff Analysis of the Legislation
HB 386, Channell – 116 The tax reform bill.
* the marriage penalty has been removed from the income tax.
* a title fee of 6.5%, initially, will be imposed on any new or used car sale. Increases to 6.75% in year 2 and 7% in all years thereafter. No more license renewal taxes. License fees remain.
* Sales tax for energy has been removed for business but not residences.
* Internet sales will have the sales tax collected by the seller if there is any GA affiliation.
* Reinstitutes the sales tax holidays for the next two years and the energy efficient appliance sales.
* senior income tax exclusion is capped at $65,000 each, or $130,000 per couple.
* agriculture exemptions are combined and simplified.
* eliminates the sales tax exemption for film productions. Retains the income tax credit.
* any airline at any Georgia airport will have to pay only 3% sales tax on jet fuel.
It does not contain a reimposition of sales tax on food, so PTA will not oppose. It does contain new measures and will affect most taxpayers.