HB1132: HB1132 Sales and use tax; exempt materials used in construction, renovation, and rehabilitation of affordable housing by purely public charities

26 LC 44 3501S House Bill 1132 (COMMITTEE SUBSTITUTE) By: Representatives Franklin of the 160th, Stephens of the 164th, Evans of the 57th, Jones of the 25th, Crowe of the 118th, and others A BILL TO BE ENTITLED AN ACT To amend Part 1 of Article 1 of Chapter 8 of Title 48 of the Of ficial Code of Georgia1 Annotated, relating to general provisions relative to state sales and use tax, so as to exempt2 from state sales and use taxation materials used in construction, renovation, and rehabilitation3 of affordable housing by purely public charities; to provide for requirements; to provide for4 automatic repeal; to provide for related matters; to provide fo r an effective date; to repeal5 conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Part 1 of Article 1 of Chapter 8 of Title 48 of the Official Co de of Georgia Annotated,9 relating to general provisions relative to state sales and use tax, is amended by revising10 paragraph (103) of Code Section 48-8-3, relating to exemptions, as follows:11 "(103)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary,12 sales of tangible personal property to a purely public charity used by such charity for13 the construction, renovation, or rehabilitation of affordable housing on real property;14 provided, however, that the exemption shall only apply to such personal property that15 will remain on the real property permanently, and only if:16 H. B. 1132 (SUB) - 1 - 26 LC 44 3501S (i) Such charity is exempt from taxation under Section 501(c)( 3) of the federal17 Internal Revenue Code;18 (ii) Such real property is held exclusively for the purpose of constructing, renovating,19 and rehabilitating single-family homes to be financed by such charity to individuals20 purchasing their first home using loans that shall not bear interest;21 (iii) Such individuals at the time of purchase shall have an i ncome equal to or less22 than 80 percent of the median income based on the maximum house hold income23 limits for the county where the real property is located as established annually by the24 United States Department of Housing and Urban Development; and25 (iv) Such individuals shall reside in such homes as a primary residence and such26 residence shall be subject to a covenant for at least 30 years that restricts the resale of27 the home to a buyer who at the time of purchase has an income equal to or less than28 80 percent of the median income based on the maximum household income limits for29 the county where the real property is located as established an nually by the United30 States Department of Housing and Urban Development.31 (B) This paragraph shall stand repealed and reserved on December 31, 2031 Reserved;"32 SECTION 2.33 This Act shall become effective on January 1, 2027.34 SECTION 3.35 All laws and parts of laws in conflict with this Act are repealed. 36 H. B. 1132 (SUB) - 2 -