HB 1279: Sales and use tax; use of noncommercial written materials or mailings by certain tax exempt organizations; extend sunset date

Georgia law lets certain tax exempt organizations claim a sales and use tax exemption on noncommercial written materials or mailings, such as newsletters or informational flyers they distribute. Under current law (O.C.G.A. § 48-8-3), that exemption is set to expire on July 1, 2026. This bill pushes that expiration date back five years, to July 1, 2031. The process for claiming the exemption stays largely the same: a qualifying organization still has to pay sales and use tax upfront on its purchases and then file a claim for a refund of the tax it paid on qualifying items. The bill also tweaks the wording of the law slightly, changing 'must' to 'shall' and clarifying that these refunds do not include interest. The law would take effect as soon as the Governor signs it.

• Extends the expiration date of a sales and use tax exemption for certain tax exempt organizations' noncommercial written materials or mailings from July 1, 2026 to July 1, 2031.
• Keeps the existing refund process in place, where a qualifying organization pays sales and use tax upfront and then files a claim for a refund.
• Rewords the statute to clarify that no interest is paid on these refunds, replacing a double-negative phrasing with a direct statement.
• Changes a 'must' to 'shall' in describing the organization's obligation to pay tax before seeking a refund, a wording change with no substantive effect.

Tax exempt organizations in Georgia that distribute noncommercial written materials or mailings and currently rely on this sales tax exemption, as well as the Georgia Department of Revenue, which processes the refund claims these organizations file.

Without this extension, the tax exemption for noncommercial written materials or mailings by qualifying tax exempt organizations would expire on July 1, 2026. Extending it to 2031 lets these organizations keep recovering sales and use tax they pay on qualifying purchases through the refund process for five more years.

• Section 1 amends O.C.G.A. § 48-8-3(101)(B) to move the exemption's sunset date from July 1, 2026 to July 1, 2031.
• Section 1 also clarifies that refunds issued under this provision do not include interest.
• Section 2 sets the effective date as the date the Governor signs the bill, or the date it becomes law without the Governor's signature.
• Section 3 repeals any existing laws that conflict with this Act.

1. 2026-02-17House Second Readers (Cámara de Representantes)
2. 2026-02-12House First Readers (Cámara de Representantes)
3. 2026-02-11House Hopper (Cámara de Representantes)

• John Carson (R, HD-046)Patrocinador principal
• Bill Yearta (R, HD-152)
• Danny Mathis (R, HD-133)
• Mike Cameron (R, HD-001)
• Matthew Gambill (R, HD-015)
• Brad Thomas (R, HD-021)

• sales tax exemption
• nonprofit organizations
• tax law
• state revenue