HB 890: 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 exempts certain nonprofit organizations from state and local sales and use taxes on noncommercial written materials or mailings they distribute, such as items given to charity supporters for educational, charitable, religious, or fundraising purposes. That exemption, found in O.C.G.A. section 48-8-3, is set to expire on July 1, 2026. This bill would push that expiration date back five years, to July 1, 2031. To qualify, an organization must be recognized as tax-exempt under Section 501(c)(3) of the federal Internal Revenue Code and be located in Georgia. Qualifying organizations still pay sales and use tax upfront on purchases and uses of the materials, then get the benefit of the exemption by filing a claim for a refund of the tax paid. The bill also clarifies that refunds issued under this provision will not include interest.

• Extends the sunset date for a sales and use tax exemption on certain nonprofit written materials and mailings from July 1, 2026 to July 1, 2031.
• Keeps the requirement that qualifying organizations be exempt under Section 501(c)(3) of the Internal Revenue Code and located in Georgia.
• Preserves the refund based process, meaning qualifying nonprofits pay the tax upfront and then file a claim to get it refunded rather than getting an automatic point of sale exemption.
• Specifies that refunds issued under this exemption will not include interest, tightening language that previously said refunds 'shall not include interest' using a double negative.

Georgia based nonprofit organizations recognized under Section 501(c)(3) of the federal tax code that distribute noncommercial written materials or mailings for educational, charitable, religious, or fundraising purposes, along with the charity supporters who receive those materials and the Georgia Department of Revenue, which processes the refund claims.

Without this extension, the tax exemption would expire on July 1, 2026, requiring affected nonprofits to pay sales and use tax on these materials with no refund option going forward. Extending it through 2031 lets qualifying organizations continue recovering that tax cost through refund claims.

• Section 1 amends O.C.G.A. section 48-8-3, paragraph (101), which governs the sales tax exemption for nonprofit noncommercial written materials and mailings.
• Subparagraph (A) restates the underlying exemption for 501(c)(3) organizations located in Georgia that provide materials to supporters for educational, charitable, religious, or fundraising purposes.
• Subparagraph (B) changes the exemption's end date from July 1, 2026 to July 1, 2031 and confirms organizations must pay tax upfront and claim a refund.
• Subparagraph (B) also clarifies that refunds issued under this exemption do not include interest.
• Section 2 repeals any conflicting laws, a standard closing provision.

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

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

• sales tax exemption
• nonprofit organizations
• state tax law
• charitable mailings