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HB 229

Sales and use tax; exempt materials used in construction of capital outlay projects for educational purposes; provisions

2025-2026 Regular Session Introduced by Buddy DeLoach and 5 co-sponsors

House Bill 229 exempts local sales taxes on construction materials for educational projects, easing costs for schools and enhancing funding for educational infrastructure.

Senate Passed/Adopted By Substitute
#education #revenueandtaxation
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Bill Summary · HB 229

Summary of House Bill 229 (HB 229)

Title: Sales and use tax; exempt materials used in construction of capital outlay projects for educational purposes; provisions

Status: Senate Read and Referred

Introduced: February 04, 2025

Purpose and Intent

House Bill 229 aims to amend the Official Code of Georgia Annotated to provide a sales and use tax exemption for construction materials used in capital outlay projects specifically for educational purposes. The bill seeks to support local school systems by reducing the financial burden associated with construction projects funded through constitutionally authorized sales taxes.

Key Provisions

  • Exemption from Local Taxes:

    • The bill exempts the sale or use of qualifying construction materials from local sales and use taxes when used in capital outlay projects for educational purposes.

  • Eligibility Criteria:

    • The exemption applies only to projects that have been approved and funded through a sales tax for educational purposes.
    • It is limited to local school systems that have a homestead exemption from property taxation in effect.

  • Claiming the Exemption:

    • Local school systems can claim the exemption by filing a request for a refund for taxes paid on qualifying construction materials.
    • The Georgia Department of Revenue will process these refund requests, which must be allocated to a fund for capital outlay projects.

  • Definitions:

    • Capital Outlay Project for Educational Purposes: Defined as projects approved and funded through a sales tax for educational purposes.
    • Qualifying Construction Materials: Materials that remain part of the project after construction or become part of the real property.

  • Automatic Repeal:

    • The provisions of this bill will automatically repeal on December 31, 2033.

Impact

  • Who is Affected:

    • Local school systems that undertake capital outlay projects funded through specific sales taxes will benefit from this exemption.
    • Contractors and suppliers involved in providing construction materials for these projects will also be impacted by the tax exemption.

  • Financial Implications:

    • The bill aims to reduce costs for local school systems, potentially allowing for more funds to be allocated to educational resources and infrastructure improvements.

Legislative Timeline

  • February 04, 2025: Bill introduced and entered the House Hopper.
  • February 05, 2025: First reading in the House.
  • February 06, 2025: Second reading in the House.
  • February 26, 2025: Favorably reported by the House Committee on Ways and Means.
  • March 03, 2025: Passed/Adopted by the House with a substitute version.
  • March 04, 2025: Read and referred to the Senate.

Conclusion

House Bill 229 represents a legislative effort to support educational infrastructure by providing tax relief for construction projects funded through local sales taxes. By exempting qualifying materials from local sales and use taxes, the bill aims to facilitate the development of educational facilities while ensuring that local school systems can effectively manage their financial resources.

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

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