Senate Renews Sales Tax Exemption for Donations to Nonprofit Agencies

ATLANTA (March 27, 2012) –The Georgia Senate passed HB 318 today by a vote of 34 to 0. Sponsored in the House by Rep. Ron Stephens and carried in the Senate by Sen. John Albers (R-Roswell), this legislation renews an existing sales tax exemption on food that is donated to a qualified nonprofit agency.

I am pleased with the passage of HB 318 in the Senate today, said Sen. Albers.” As many Georgians are struggling to make ends meet, it is imperative that we work together to serve the people in our communities. Together we can make a difference by supplying much needed supplies to local food banks or nonprofit agencies. Revitalizing our communities starts by serving one neighbor at a time.”

Under current Georgia code, the sales tax exemption for businesses and individuals who donate to one of Georgia’s many nonprofit agencies or food banks expired on June 30, 2011. According to HB 318, this exemption would be renewed from July 1, 2012 to June 30, 2015.

If enacted, recent projections estimate the total state revenue impact at $3.8 million through Fiscal Year 2014.

In addition, HB 318, which was merged with the original language from HB 334 in the Senate Finance Committee, added language clarifying durable medical equipment to specifically include kidney dialysis.

HB 318 will now travel to the Governor’s desk for final approval.

RELEASE
March 27, 2012

For Information Contact:
Natalie Dale, Director
Shawna Mercer,Sr. Communications Specialist
shawna.mercer@senate.ga.gov
404.656.0028