Ballot Initiative: Raise the Tangible Personal Property Tax Exemption

This ballot initiative asks voters whether to increase the amount of tax exemptions and deferrals on tangible personal property used in a business.

Ad valorem tax exemption covers all personal property such as furniture, machinery, equipment, inventory, digital assets, and other items necessary to run that business. However, personal property not included in this bill are motor vehicles, trailers, and mobile homes. 

Presently, the maximum exemption amount is $7,500 and this bill asks voters to raise it to $20,000. The last time Georgia voters were asked to raise the personal property exemption amount was in 2002 when the majority of Georgians voted to raise it from $500 to $7,500.

Things to Consider When you Vote

• Personal property taxes are paid annually and the valuation of the personal property changes annually based on depreciation. 
• An amendment to Article 2, Chapter 5, Title 48 of GA code, this bill requires approval by only a majority of Georgia voters in a statewide election to become law.
• The Georgia Chamber of Commerce hails this bill as a win for small businesses.
• Georgia has unprecedented general fund reserves prompting deeper tax exemptions across the state but many tax exemptions are opposed by some who would rather see funds invested in need-based programs.
• We at The Kicker believe if this ballot initiative passes it will help our community of small businesses relieve some of the rising costs of doing business over the past 22 years since this tax exemption was last updated. 

The Deep Dive

The 2024 Legislative Season saw a host of bills that aimed to deepen tax exemptions and tax cuts. The statewide referendum question asking Georgia voters whether to raise the amount of tangible personal property tax exemption from $7,500 to $20,000 is one such bill. 

Georgia House Bill 808 is an amendment to Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated which originally allows a maximum of $7,500 of personal property ad valorem tax exemptions. Six House Representatives and one Senator, all Republican, sponsored a bill that seeks to raise the maximum deferral amount to $20,000.

Because this is an amendment to the official GA Code, in order to bring this to the ballot the bill needed to pass with ⅔ vote in the House and ⅔ vote in the Senate- which it did. In order for it to become an official amendment, Georgia voters need to vote “yes” by a majority vote.  If passed, you will be able to use the increased exemption on your 2025 taxes.

Hailed by groups such as the Georgia Chamber of Commerce and powerful Republicans such as Lt. Governor Burt Jones, some believe increasing the exemption amount will ease burdens placed on small businesses across Georgia. However, others disagree. Local House Representative Dr. Au and House Representative Becky Evans are two Democrats among many who voted “No” on HB808. 
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Georgia’s 2024 budget has an unprecedented general fund reserve of $16.9 billion, ($11.6 billion undesignated) which the state legislature could either use to fund state-wide programs or provide tax relief to Georgia citizens. One example of a need-based program is to provide financial aid for college to those who cannot afford it. Alternatively, an example of tax relief to citizens is HB808 which passed through committee this legislative session, was voted through by ⅔ vote of the legislature, and is now a ballot initiative for Georgia voters to decide. Should this ballot initiative not pass, however, the funds will not necessarily go towards a needs-based program. The cash reserves would remain until the 2025 legislative season when our legislators vote on next year’s budget bills.