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Thu, Dec 24, 2015

City Of Augusta, GA Owes StandardAero For Overpaid Taxes

Company Seeking Reimbursement For Tax Exemption

The Georgia Department of Revenue has told the city of Augusta that it owes several million dollars to StandardAero because it collected too much in sales taxes from the company.

The Augusta Chronicle reports that the city owes the company as much as $7 million. City Administrator Janice Allen Jackson told the paper she did not have a lot of information about the refund and how it will affect the city's finances. She said it impacts the city's various local option sales taxes.

The state collects an eight percent sales tax and cuts cities a monthly check for their share ... about $3 million in Augusta's case ... for the three locally-imposed optional sales taxes. The GA department of revenue does not itemize how much was collected from individual vendors.

StandardAero is covered under the portion of the state's tax code passed in 2009 that exempts it from paying sales tax on parts for airplanes registered in other states. The paper reports that the exemption was made permanent by the Georgia legislature last year.

FMI: www.augustaga.gov

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