No Georgia tax-free holidays this year; General Assembly did not pass back-to-school and energy-efficient tax breaks
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Katie Dempsey
Since 2002, the sales-tax free weekend helped consumers save on apparel, footwear, school supplies and computers during a tax-free weekend. The tax holiday cost the state about $12 million in revenue, and a similar break usually scheduled in October for energy-efficient appliances and other items cost $500,000 in tax revenue.
Rep. Katie Dempsey (R-Rome) said she regrets the state was not able to continue the tax holidays for another year, but lawmakers were focused on doing all they could to support local governments. She said one local politician, speaking on behalf of several others, asked her personally before the legislative session to consider the needs of her hometown governmental bodies when making tax decisions.
“It’s a difficult situation, but it’s just the state of the economy right now,” said Dempsey. “Local governments are really stressed right now.”
The state representative said she hopes the lawmakers will be able to reenact the holidays in the future after the economy rebounds.
John Heavener, president of the Georgia Retail Association, said he believes the state actually nets about $20 million during the sales tax breaks from salary, corporate and other tax revenue generated.
Members of the House of Representatives created three bills — HB 951, 952, and 953 — in an attempt to set a date for the tax-break weekends. HB 951 included dates for both the schools supply weekend and the appliances weekend. The other two bills aimed at creating the holidays individually.
All three failed to make it out of the house.
Had the bills passed, the weekend for the school-supply tax exemption would have July 29-Aug. 1 and the appliance weekend would have been Oct. 7-10.
The Associated Press contributed to this report.
The idiots in the state legislature have no idea how much revenue the state of Georgia will lose on the decision to not have a state sales tax holiday this year.
I'm all for identifying and reducing taxes in all their sordid and insidious forms, and I also believe that the more an activity is taxed, the less said activity will occur - and vice versa - so maybe the GRA is on to something here. Eliminate sales taxes in order to stimulate consumer spending, not for just one or two days but everyday, if indeed the GRA is correct in their $20 million net tax revenue claim for a couple of sales tax-free weekends. It's an experiment worth trying, right?
And, if it proved true, expand the experiment by reducing or eliminating property taxes, income taxes, payroll taxes, all taxes. Imagine the economic impact of this suddenly unleashed level of newly discretionary income. Yes, a large portion might be saved and/or spent to reduce personal debts, but that's not a bad use! In addition, businesses large and small would realize the need to hire and rehire and to move forward with their dormant capital plans. This might be the blueprint for the economic breakout we're all looking for.
Governments at all levels, however, are not keen to the idea of reducing/eliminating taxes they impose. Even temporary tax reductions are like scratching chalk boards (witness the Bush tax cuts expiring on 1/1/11), even if the temporarily untaxed activity (e.g. sales) actually increases and generates more revenue under a different tax mechanism (corp and personal income; payroll), thus saving/creating jobs and increasing income tax revenue from new/saved jobs, etc. After all, don't governments know best how to confiscate and spend our hard-earned money?
I am glad that the GA did not pass this again this year. It doe not REALLY benefit the average consumer. But by not having it could save lots of jobs."
How could jobs be saved by NOT having the tax free holiday? If you'll re-read the article, it states: "the state actually nets about $20 million during the sales tax breaks from salary, corporate and other tax revenue generated." So if the state brings in approx $20 mill, you don't believe that extra revenue helps jobs? LOL...just, LOL.