ATLANTA - Georgia business owners and manufacturers would benefit from a number of bills passed during the recently adjourned General Assembly, and business interests intend to battle hard for measures that could win approval next year.
After years of lobbying for relief on energy costs, plants would get temporary protection against future spikes under a bill that passed in the final moments Friday, the 40th and final day of the 2007 legislative session.
A compromise on House Bill 148 essentially would cap the 4 percent sales tax charged on energy commodities at recent market prices.
For example, state sales tax will only be charged for up to $7.55 per every 10 therms of natural gas for manufacturers. Anything above that will be free of state sales tax, although local taxes can still be charged. The buffer will be in effect from July 2007 to December 2009.
But, as is the case with all bills that received final legislative approval, they were transmitted to Gov. Sonny Perdue for his signature and become law only if he does not veto them.
Manufacturers have been calling for the state to eliminate its tax on energy expenses, saying that rising costs are putting a strain on plants. They will push that measure next January as the second year of the two-year legislative cycle begins. Any bill that stalled or even was voted down in the 2007 session can gain new life in the second year.
Some companies have seen costs for natural gas and electricity rise to the level of labor costs or even overtake them, said Randy Quintrell, who represents the Georgia Industrial Group along with mining and paper and pulp plants.
"Obviously, this cap bill is a good precaution, but we're going to continue to try to get an exemption like most states have," he said.
The state's aircraft repair shops would receive a break under a bill removing sales taxes on parts and equipment used in the work.
The measure would help Savannah-based Gulfstream and Augusta's Landmark Aviation compete with repair facilities in other states where similar breaks are offered.
The break would apply only to planes being fixed in Georgia but belonging to out-of-state owners. Georgians with planes registered here would not qualify for the reduction.
Scott MacGregor, vice president of the Augusta Metro Chamber of Commerce, said he pushed for the bill because of Landmark's impact on the economy.
"Those are very high-qualified, high-paying jobs that we want to retain in the community," he said.
BUSINESS BILLS PASSED
Aircraft repairs: Cuts state sales tax on repair and maintenance work done on out-of-state planes worked on at Georgia facilities
Film tax credits: Bumps up tax credits that television and movie producers can receive for filming in the state
Disaster donations: Eliminates sales taxes on prepared food donated for charitable or disaster relief efforts
Sales tax holiday: Extends the popular state sales tax holiday for back-to-school shopping on clothing, school supplies and computer equipment for Aug. 2-5. Another sales tax holiday for energy-efficient goods and appliances is set for Oct. 4-7.
RETURNING NEXT YEAR
Guns at work: Whether employers and property owners can ban workers from having guns in their cars parked at work
Sunday alcohol sales: Religious groups lobbied hard to stall a bill letting voters decide whether to allow stores to sell alcohol on Sundays, but grocery and convenience store groups plan to try again.
Energy sales tax cut: Manufacturers arguing that Georgia should follow the lead of other states will continue pushing for the 4 percent state sales tax to be cut from energy used to make goods.
Tax overhaul: Lawmakers plan to take a comprehensive look at the state's tax structure, including business taxes, and also will consider how to raise more money for transportation funding, which business leaders say is needed before growing traffic problems start affecting economic development.
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