As of Monday, September 24, 2012
© Copyright 2014
Gwinnett Daily Post
LAWRENCEVILLE -- County officials will discuss next week implementing a new tax to replace funds taken away by a state-mandated exemption.
The law, adopted by the General Assembly earlier this year in an attempt to create a more business-friendly environment in Georgia and draw jobs, would give manufacturers a break on state and local sales taxes on energy resources, including electricity, natural gas, oil and other types of fuel. A phase out of the taxes will begin next year and be complete in 2016.
But to make sure that local governments didn't suffer from a loss of revenue, legislators agreed to allow counties and cities to impose an excise tax on energy equal to the amount of money lost in local sales taxes, according to information from the Association County Commissioners of Georgia. The association said the excise tax can be used for any purpose, unlike sales taxes, which must be used for capital projects.
To consider the option, county officials have set a 5 p.m. meeting Tuesday with representatives from its 16 cities, as an intergovernmental agreement would be required to move forward with the excise tax.
A timeline for possible adoption will be discussed at the meeting, but the leaders are on track to begin the tax Jan. 1, when the exemption is set to begin.