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HB 439

Revenue and taxation; revise deductions allowed to dealers

2025-2026 Regular Session Introduced by Victor Anderson and 5 co-sponsors

House Bill 439 raises sales tax deductions for Georgia dealers, increasing the threshold to $10,000 and introducing a tiered structure for greater tax relief over time.

Act 709
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Bill Summary · HB 439

Summary of House Bill 439

Bill Number: HB 439
Title: Revenue and taxation; revise deductions allowed to dealers
Status: Senate Read and Referred
Introduced: February 12, 2025
Primary Sponsor: Bill Yearta

Purpose and Intent

House Bill 439 aims to amend the Official Code of Georgia Annotated, specifically Code Section 48-8-50, which governs the compensation of dealers for reporting and paying sales and use taxes. The bill seeks to revise the deductions allowed to dealers, thereby potentially impacting their tax liabilities and financial reporting processes.

Key Provisions

The bill proposes the following changes to the deductions available to dealers:

  1. Increased Deduction Thresholds:

    • The deduction for the first portion of sales and use taxes reported will increase from $3,000 to $10,000.
    • Dealers will receive a 3% deduction on the first $10,000 of combined sales and use taxes reported.

  2. Tiered Deduction Structure:

    • For amounts exceeding $10,000, the bill introduces a tiered deduction structure that increases over time:
      • 2026: 0.5% for amounts over $10,000.
      • 2027: 0.75% for amounts over $10,000.
      • 2028: 1% for amounts over $10,000.
      • 2029: 1.25% for amounts over $10,000.
      • 2030 and thereafter: 1.5% for amounts over $10,000.

  3. Motor Fuel Tax Deduction:

    • Dealers will continue to receive a 3% deduction on the total amount of sales and use taxes on motor fuel, as defined in the relevant code sections.

  4. Filing Requirements:

    • Dealers must include their certificate of registration number(s) for each sales location or affiliated entity when filing returns to qualify for these deductions.

Impact

  • Who is Affected: The bill primarily affects dealers required to file sales and use tax returns in Georgia. This includes businesses across various sectors that report and pay sales taxes.
  • Financial Implications: By increasing the deduction thresholds and introducing a tiered structure, the bill may provide significant tax relief to dealers, particularly those with higher sales volumes.
  • Compliance Requirements: Dealers will need to ensure timely filing of returns to qualify for the deductions, which may require adjustments to their accounting and reporting practices.

Procedural Timeline

  • February 12, 2025: Bill introduced in the House.
  • March 3, 2025: Favorably reported by the House Committee.
  • March 6, 2025: Passed/Adopted by the House with a substitute.
  • March 10, 2025: Read and referred to the Senate.

Effective Date

The provisions of this Act are set to become effective on January 1, 2026.

Conclusion

House Bill 439 represents a significant revision to the tax deductions available to dealers in Georgia, with the potential to ease the tax burden on businesses and streamline compliance processes. As the bill progresses through the legislative process, stakeholders will need to stay informed about its implications and prepare for the upcoming changes.

Compiled from official sources — confirm details with the bill’s official record.

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