Georgia Approves 2016 Sales Tax Holidays
- Sales Tax News
- May 3, 2016 | Gail Cole
With the enactment of House Bill 951 (Act 327), Georgia establishes two 2016 sales tax holidays, provides a temporary exemption for admissions to major sporting events, and improves its bid for an upcoming Super Bowl.
Sales tax holidays
The bill creates the following two tax-free periods:
- Back-to-school sales tax holiday for clothing, computers and school supplies from 12:01 a.m. on July 30 through midnight on July 31
- Energy and water efficient products sales tax holiday from 12:01 a.m. on September 30 through midnight on October 2
Click on the links above for examples of exempt and taxable items, complement of the Georgia Department of Revenue.
Major sporting events
The bill also temporarily exempts sales of admissions to “nonrecurring major sporting events” that are expected to generate more than $50 million “in the host locality.” Revenue projections include but are not limited to revenue from admissions to tourist attractions, lodging, meals and vehicle rentals.
Such major sporting events include but are not limited to:
- Any semifinal game or championship game of a national collegiate tournament
- Major League Baseball game
- Major League Basketball game
- Major League Soccer game
- National Basketball Association all-star game
- National Football League championship game
The term “nonrecurring” means the events may not occur in the state of Georgia more than once every three years.
The admissions exemption takes effect on July 1, 2016 but applies to admissions purchased on or after January 1, 2017, and only for admissions to “events secured on or after the effective date.” It is set to automatically repeal on December 31, 2022 (but the repeal “shall not apply to any event for which an application has been submitted prior to December 31, 2022).
Variable sales tax exemptions and periodic sales tax holidays place additional sales and use tax compliance burdens on businesses. Automation helps keep compliance simple. Learn more.