SAVANNAH, Ga. (WSAV) – A “yes” vote for Georgia Referendum A would increase a property tax exemption for tangible property worth $7,500 or less to properties worth $20,000 or less.
Tangible property means equipment like computers, copy machines and more.
This item stems from House Bill 808. Sponsors of the bill, like Republican State Rep. Mike Cheokas, said the referendum would lessen tax burdens on tangible personal property like office supplies or equipment.
“It would be good for small businesses. Small businesses are the most innovative. They hire the most people. I think they need this little boost right now,” Cheokas said. “In the case of, let’s say, a beauty parlor. When they buy the chairs and the equipment, the straighteners and the dryers and all this stuff… they purchase those things, and they pay sales tax on it. So, tax has already been paid on it.”
And with inflation, Cheokas said that the cost of that equipment has gone up, exceeding that $7,500 limit.
The last time Georgia raised the maximum threshold for the exemption was more than 20 years ago in 2002.
There was some opposition to House Bill 808, some said the exemption would decrease the sources of tax revenue for cities to pay for public services. Also, some worry this would benefit wealthier counties by allowing tax write-offs.
Cheokas is also the chairman of the Small Business Development Committee for the state, and he said that small businesses are the reason he pushed for Referendum A.
“Small business owners complained about that to me on multiple occasions. I got an earful how they thought that it was unfair because they pay a sales tax when they purchase the equipment,” Cheokas said.
The legislation was passed and signed by Gov. Brian Kemp, but now it’s before the Georgia citizens to decide.
The question on your ballot will read:
Do you approve the Act that increases an exemption from property tax for all tangible personal property from $7,500.00 to $20,000.00?
