HB890: HB890 Sales and use tax; exemption for sale or use of certain noncommercial written materials or mailings by certain nonprofit organizations; extend sunset provision

Georgia law currently gives certain nonprofit organizations a break on sales and use taxes for noncommercial written materials or mailings sent to charity supporters, but that break is set to expire on July 1, 2026. HB 890 would rewrite Georgia's sales and use tax exemptions law (O.C.G.A. § 48-8-3) to push that expiration date back five years, to July 1, 2031. The underlying exemption applies to organizations recognized as tax exempt under Section 501(c)(3) of the federal tax code that are based in Georgia and provide the materials for educational, charitable, religious, or fundraising purposes. Qualifying organizations still have to pay sales and use tax up front on the items and then get the tax back by filing a refund claim, and the bill keeps the rule that these refunds do not include interest. The bill also repeals any conflicting laws.

• Extends the sunset date for the sales and use tax exemption on qualifying nonprofit mailings from July 1, 2026 to July 1, 2031.
• Keeps the exemption limited to organizations that are tax exempt under Section 501(c)(3) of the federal tax code and located in Georgia.
• Continues to require that qualifying materials be provided to charity supporters for educational, charitable, religious, or fundraising purposes.
• Preserves the existing process requiring nonprofits to pay sales and use tax upfront and then claim a refund rather than getting an automatic point-of-sale exemption.
• Keeps in place the rule that refunds issued under this provision do not include interest.

Georgia-based nonprofit organizations with 501(c)(3) status that mail noncommercial educational, charitable, religious, or fundraising materials to supporters, along with the Georgia Department of Revenue, which processes the related tax refund claims.

Without this extension, the tax break for qualifying nonprofit mailings would expire on July 1, 2026, requiring affected organizations to pay sales and use tax on these materials with no refund option. Extending the sunset to 2031 keeps that cost relief available for five more years.

• Section 1 amends paragraph (101) of O.C.G.A. § 48-8-3 to change the exemption's end date from July 1, 2026 to July 1, 2031.
• Subparagraph (A) restates the exemption's scope: noncommercial written materials or mailings from Georgia-based 501(c)(3) organizations distributed to charity supporters for educational, charitable, religious, or fundraising purposes.
• Subparagraph (B) keeps the refund-based mechanism, requiring organizations to pay tax at purchase and later file a refund claim, with no interest paid on refunds.
• Section 2 repeals any laws or parts of laws that conflict with the Act.

1. 2025-04-04House Second Readers (House)
2. 2025-04-02House First Readers (House)
3. 2025-03-31House Hopper (House)

• John Carson (R, HD-046)Primary sponsor
• Charles Martin (R, HD-049)
• Shaw Blackmon (R, HD-146)

• sales tax exemption
• nonprofit organizations
• charitable mailings
• tax refunds
• Georgia tax law