SPECIAL LEGISLATIVE REPORT—April 3, 2008

2008 session outstanding for Georgia manufacturers

By Sen. Tim Golden

Georgia manufacturers – large and small – produce the goods, provide the services and create the employment opportunities that keep our state’s economic engine running. In tough economic times, it is especially important for state officials to do what we can to support our manufacturing sector.

That is why I am delighted to report that the 2008 session of the General Assembly, which ends tomorrow, was nothing short of outstanding for the interests of Georgia manufacturers, their employees and their communities. All stakeholders in our state’s economic future will benefit from several pieces of legislation both the Senate and the House of Representatives adopted this year and have sent to the governor for his signature:

Made in Georgia. SB 359, which I introduced, is a means of promoting the sale of products manufactured in Georgia. The legislation would create a “Made in Georgia” campaign, would increase awareness of the significant role of manufacturing in our state. It is also intended to raise the profile of Georgia’s manufacturing impact on people, plants and products.

If the bill is signed into law, a “Made in Georgia” campaign logo would be created for use as a stamp of certification on products that are actually manufactured in Georgia and by Georgians. Industry would also be encouraged to use the logo in their marketing of “Made in Georgia” products.

Integrated plant theory. HB 237, legislation I have long supported, which would expand the sales tax exemption for machinery and parts used in the manufacturing process. The current sales tax exemption is too restrictive as compared to other states, and this long-overdue tax relief would give a needed boost to the manufacturing sector and Georgia’s employment picture.

The exemption, known as “integrated plant theory,” would encourage manufacturers to invest in new plants and equipment, as well as updating existing facilities, allowing Georgia factories to remain competitive with those in other states, thereby continuing to create jobs for Georgians.

Energy tax relief. HB 272 would place a cap on the state sales tax on spiking energy costs for manufacturers. Unfortunately, Georgia stands alone in the Southeast and in small company nationwide by continuing to impose the outdated and unfair sales tax on energy used in manufacturing. Because of market conditions, global competition and many other factors in many industries, it is already challenging enough for Georgia manufacturers to expand or even maintain their employment numbers.

The less money a company spends on operating costs, the more it can reinvest to either expand or improve its operations, reducing the likelihood of further job losses. Hopefully in the future, we will be able to eliminate the energy sales tax on manufacturing all together.

Manufacturing study committee. All of the previous bills I have mentioned represent a great start for the legislature in supporting Georgia manufacturers. SR 1097, which I co-authored with Senate Finance Committee Chairman Chip Rogers (R-Woodstock), is intended to keep the process going by establishing a Senate study committee on the Future of Manufacturing in Georgia.

The resolution authorizes the appointment of a committee to undertake a comprehensive evaluation of the condition of manufacturing in Georgia and whether our current laws are helping or hurting. At the end of the study, the committee will make recommendations for legislation to be considered during the 2009 session.

I want to thank all of the organizations that advocate for Georgia businesses and their employees for their support of these measures. The assistance of the Georgia Industry Association, Georgia Traditional Manufacturing Association (GTMA), Georgia Forestry Association, Georgia Mining Association, Georgia Chamber of Commerce, and others were vital to the success of these legislative initiatives.

This pro-business package moved through the Senate and House free from partisan rancor and political posturing, and shows that sound public policy can prevail. In true bi-partisan fashion this year, your legislature worked hard to implement a solid agenda for Georgia manufacturers that will help to brighten our state’s economic future.

Perhaps Roy Bowen, President of the GTMA, said it best when he stated, “Without question, enactment of these legislative measures will enhance Georgia’s business environment and lead not only to increased investment in Georgia by manufacturing companies, but the retention and creation of manufacturing jobs in our state.”

Friday, April 4, is the final day of the session, with final negotiations on the budget, tax policy and many other issues expected to linger well into the late evening hours. I will have a full report on that legislation in my next update.

• Sen. Tim Golden represents the 8th District (Brooks, Cook, Lowndes, and Thomas counties) in the Georgia State Senate.  Contact him at 121-A State Capitol, Atlanta, GA 30334; by phone at 404-656-7580; or by e-mail at tim.golden@senate.ga.gov.