Bill > HB229

This bill amends Georgia's sales and use tax law to create a specific tax exemption for construction materials used in educational capital outlay projects. The exemption applies only to local sales and use taxes for projects that meet two key conditions: the project must be approved and funded through a constitutionally authorized educational sales tax, and the local school system must have a homestead exemption in place for property taxation. While the materials are exempt from local taxes, contractors must initially pay the taxes and then can receive a full refund from the state department. The term "qualifying construction materials" includes any materials that become part of the completed project's real property, but excludes materials remaining in a contractor's possession after construction. The refunded tax money must be allocated specifically to a capital outlay fund and used according to constitutional requirements. This tax exemption is temporary and will automatically expire on December 31, 2033, providing a time-limited incentive for educational infrastructure development in local school systems.

Budget and Finance

https://www.legis.ga.gov/legislation/69834