Tax Breaks For Developers Added To Parts Tax Exemption Measure

A bill making its way through the Georgia legislature to extend a sales tax exemption for airplane parts has been co-opted by developers looking for tax breaks.

GA Governor Nathan Deal

An amendment added to Bill 234 passed unanimously by the Georgia Senate Finance Committee would channel sales tax revenue to the developers of amusement parks and large malls to cover up to a quarter of their construction costs. The Savannah Morning News reports that Governor Nathan Deal (R-GA) says he will sign the bill if it is passed by the full Senate.

The bill originated in the Georgia House, and extends a sale tax exemption on aircraft parts for two years to help shore up the repair business of companies like Gulfstream, Standard Aero, and Pratt & Whitney, all of which have headquarters or operate in Georgia. The bill's sponsor, Savannah Republican Ron Stephens, said without the exemption pilots and operators would travel to states which do exempt repair parts from sales tax.

A bill similar to the mall and amusement park amendment was vetoed by former Republican Governor Sonny Perdue.

FMI: www.legis.ga.gov