Governor Kicks Off Sales Tax Holiday Weekend in Newnan

Beginning at midnight tonight, shoppers will find savings on back to school supplies

Governor Sonny Perdue today visited a Wal-Mart in Newnan to kick off the sales tax free holiday weekend, joining State Rep. Lynn Smith who sponsored this year’s tax holiday bill. Georgia shoppers will be able to purchase clothing items, school supplies, computers and computer accessories free of state and local sales tax during the state’s eighth annual tax-free holiday, which begins at midnight tonight and continues until midnight on Sunday, August 2.

“I encourage parents, students and teachers to take advantage of our eighth annual sales tax holiday to save on purchases of much-needed supplies,” Governor Perdue said. “Experience has shown that many retailers offer additional discounts and sales that result in even more savings for back-to-school shoppers.”

This year’s sales tax holiday is a result of House Bill 120, which Governor Perdue signed into law on May 4.

During the sales tax holiday, clothing and footwear up to $100 per item are exempt from payment of sales tax. There is no limit on the number of shoes and clothing items an individual can buy. If the price of an article of clothing or pair of shoes exceeds $100, the item will be taxed at the full retail price. Clothing accessories, jewelry, handbags, umbrellas, eyewear, watches, watchbands and similar items are not exempt from sales tax during the tax-free period.

School supplies bought for classroom use or classroom-related activities are exempt if they cost $20 or less per item. Qualifying items include pens, pencils, notebooks, paper, book bags, calculators, dictionaries, thesauruses, children’s books and books listed on approved school reading lists for pre-kindergarten through 12th grade. Sales tax will be due on the purchase of any single school supply item that exceeds $20.

Purchases of personal computers and accessories are exempt up to $1,500 per transaction. Qualifying items in the personal computer exemption category include monitors, personal computer base units, keyboards, handheld computers, printers, modems, non-recreational software and other peripheral devices.

Personal digital assistants are exempt unless they allow voice communication. Other items that would not be exempt are regular cell phones, digital cameras, furniture and any systems, devices, software or peripherals designed or intended primarily for recreational use.

The sales tax exemption for all qualified merchandise is intended only for individuals and their personal use. The exemption does not apply to purchases made for resale, purchases by businesses, for items leased or rented, or items sold at sports facilities, theme parks, restaurants, public lodging establishments, and airports.

Additional information and a comprehensive list of exempt items are available at any Department of Revenue Regional Office or via the Department’s website https://etax.dor.ga.gov/salestax/holiday/2009/index.aspx . Information is also available by calling 404-417-6601 or by contacting the DOR by e-mail: taxpayer.services@dor.ga.gov .
A tax-free holiday for certain energy efficient and water efficient products with a sales price of $1,500 or less is slated for Oct. 1 through Oct. 4.
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The City of Newnan to Hold Public Hearings on 2008 Milleage Rate

The city of Newnan will hold three public hearings over the next three weeks concerning its intention to remain at its current ad valorem tax rate of 4.32 mills for the 2008 tax year.

The 4.32 mill rate would be applied to property taxes levied by the city in the beginning of fall 2008 and would fund city operations during the 2008 tax year, if it is adopted by the City Council in early August. Leaving the property tax at the same millage rate would increase property tax revenues for the City of Newnan this year by 1.16 percent over the “rollback” millage rate.

Each year, the board of assessors is required to review the assessed value for property tax purposes of taxable property in the city. When the trends of prices on properties that have recently sold in the city indicate there has been an increase in the fair market value of any specific property, the board of tax assessors is required by law to re-determine the value of such property and increase the assessment. This is called a reassessment.

When the total digest of taxable property is prepared, Georgia Law requires that a rollback millage rate must be computed that will produce the same total revenue on the current year’s new digest that last year’s millage rate would have produced had no reassessments occurred.

The rollback rate for 2008 would be 4.27 but the City Council has adopted a preliminary ordinance setting the milleage on keeping its current rate of 4.32. Georgia Law requires that three public hearings to be held to allow the public an opportunity to express their opinions on the increase in revenue. While those residents whose property was reassessed by the tax assessor would receive a tax increase, those residents whose property were not assessed will not see an increase. The reassessed properties will show an increase of only 1.16%.

All concerned citizens are invited to the public hearings on this tax increase to be held at Newnan City Hall, 25 LaGrange Street, Newnan, Georgia on August 4, 2008 at 11:45 a.m. and 6:15 p.m. and on August 12, 2008 at 2:15 p.m.

Sen. Seabaugh Appointed to Senate Local Tax Collection Study Committee

State Senator Mitch Seabaugh (R-Sharpsburg) has recently been appointed by Lieutenant Governor Casey Cagle to serve as a member on the Senate Local Sales Tax Collection Study Committee. Sen. Seabaugh will work with a group of eight committee members, consisting of fellow legislators and local officials from across Georgia to examine the tax collection rates of cities and counties.

“As costs are sharply rising throughout the economy, many families and individuals are struggling financially,” Sen. Seabaugh said. “My goal for this study committee is to find ways for local governments to cut costs to taxpayers by allowing them to choose how their taxes are collected.”

Currently under Georgia law, the state revenue commissioner collects local sales and use taxes on behalf of cities and counties, and subsequently charges them one percent of the amount collected, regardless of the total cost of collection. The study committee will look for ways for local governments to individually determine how their taxes will be collected, so that they could be charged a lower rate than the one percent charged by the state.

“Senator Seabaugh will be a valuable asset to the Local Sales Tax Study Committee,” said Lt. Gov. Cagle. “He is dedicated to his constituents and has worked diligently in the Senate. I look forward to learning more about the findings of this study committee.”