February 10, House Bill 247 by Representative Dominic LaRiccia Sales Tax Exemptions for Concrete Transit Mixers.

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1 February 10, 2017 The Georgia General Assembly is in full swing and the GRMCA is at the state capitol daily to monitor proceedings on behalf of the ready mixed concrete industry. Numerous bills are introduced daily, and GRMCA reviews each one in an effort to either support those bills which would be good for the ready mix concrete industry or oppose those that would be bad. Part of our association s lobbying efforts are done with several different coalition groups who meet weekly to discuss different pieces of legislation and how it might affect our affiliated industries. One such coalition is called the Real Estate Trade Group. This group is composed of industries from all phases of construction, from financing, materials, contractors, designers, brokers, to owners and managers. GRMCA is also a member of the Georgia Chamber of Commerce Government Affairs Council (GAC). This group also meets weekly to discuss legislation impacting general business. There is a heavy focus on issues like taxation, HR, technology, and transportation among others. Through the first third of the legislative session, there have been nearly 500 pieces of legislation introduced in the House and Senate combined. There has not been any serious bills proposed yet for our industry to oppose, but there are three bills in particular that would be outstanding for the industry. Let s review each of those bills. House Bill 247 by Representative Dominic LaRiccia Sales Tax Exemptions for Concrete Transit Mixers Link to HB 247 HB 247 is a bill being pushed by the GRMCA that would properly identify transit mixers as qualified manufacturing equipment. GRMCA has long argued for the last several years that mixers have been inappropriately taxed by the State of Georgia. We have conducted numerous plant tours and presentations with legislators and staff to educate them on the issue and the work appears to be paying off. A quick summary of the bill is as follows:

2 HB 247 eliminates sales taxes on virtually all components purchased for mixer truck maintenance. It prevents anyone for making a claim for refund on motor fuel as energy used in manufacturing. The exemption will sunset in three years. However it is important to note that almost all new exemptions are introduced with a sunset in place. Many exemptions are given permanency if the affected industries monitor the effectiveness of the exemptions and can report back in three years time the benefits to the industry and by extension the state. Our bill sponsor, Representative LaRiccia, has shown himself to be very capable and effective in promoting our industry. He has been a quick study even managing his industry terminology correctly. Last week prior to introducing the bill on the House floor, GRMCA and Rep. LaRiccia gathered an astonishing 38 signatures in support of the legislation. As a matter of comparison, most bills go to floor with 6 signatures or less. A complete list of the cosigners are below and urge you to reach out to these representatives and thanks them for their support. Personal contact from the district and industry goes a long, long way. The process for the bill is as follows. It must first receive 2 subcommittee hearings in the House Ways & Means Sales Tax Subcommittee. Then it must be heard in the full Ways & Means Committee. Then it will go to House Rules followed by floor debate in the House Chamber. If passed by the House, it will be transmitted to the Senate where it will go through a Sales Tax Subcommittee in the Senate Finance Committee. It will then go to the full Senate Finance Committee, followed by Senate Rules and then debate on the Senate floor. If passed by the Senate, it would then go to the Governor for his signature. At this point, HB 247 has received its first hearing in the Sales Tax Subcommittee. It was presented very well by our sponsor. No questions were generated and no opposition was offered. We anticipate a second subcommittee hearing on the bill next week, likely Tuesday or Wednesday, where it will be passed out and on to the the full committee. Rep LaRiccia is optimistic that by the end of next week our bill will be passed out of House Ways & Means. GRMCA urges you to make contact with your Representative in support of HB 247. Both Rep. LaRiccia and GRMCA staff are working diligently to educate Representatives on the bill, but

3 nothing beats personal contact from constituents and business owners/executives. As mentioned, here is the full list of cosponsors: Dominic LaRiccia, Douglas Trey Kelley, Cedartown Amy Carter, Valdosta John Corbett, Lake Park Jason Shaw, Lakeland Bert Reeves, Kennesaw Josh Bonner, Peachtree City Rick Williams, Milledgeville Scott Hilton, Peachtree Corners Trey Rhodes, Greensboro Jodi Lott, Evans Steve Tarvin, Chickamauga Dewayne Hill, Ringold Penny Houston, Nashville Shaw Blackmon, Bonaire Chuck Williams, Watkinsville Jason Spencer, Woodbine Clay Pirkle, Ashburn Tom Taylor, Dunwoody Susan Holmes, Monticello Buzz Brockway, Lawrenceville Dave Belton, Buckhead Tom McCall, Elberton Matt Hatchett, Dublin Rick Jasperse, Jasper Sam Watson, Moultire Jimmy Pruett, Eastman Wendall Willard, Sandy Springs Eddie Lumsden, Armuchee Matt Dubnik, Gainesville Todd Jones, South Forsyth Brad Raffensberger, Johns Creek Bubber Epps, Dry Branch Bill Hitchens, Rincon Jesse Petrea, Savannah Bruce Broadrick, Dalton Don Hogan, St. Simons Island Senate Bill 116 by Senator Frank Ginn Exemptions from Stormwater Utility Fees Link to SB 116 SB 116 is exempting any site from any stormwater utility fees provided that the site has proper mitigation in place to fully capture and contain a 25 year, 24 hour storm event. The Georgia General Assembly years ago empowered local governments to establish stormwater utilities to provide local governments to capture revenue for the purpose of maintaining and expanding their existing stormwater infrastructure. The evolution of these local utilities has shown that fees and requirements have varied greatly from jurisdiction to jurisdiction. The fees being charged seem to be inconsistent and arbitrary. Senator Ginn s intent is to get local governments to keep the pressure on those who are straining local stormwater systems with their runoff and not penalize those property owners who have taken measures to properly contain stormwater runoff on site.

4 Notably, the Georgia Stormwater Manual is cited in the legislation to direct people on where to look for acceptable stormwater mitigation. Just last year, the GRMCA participated in the revision process for the Manual where we were able to update the language for pervious concrete. The old language was outdated and poorly written. The new language will make pervious concrete a much more attractive option for those interested in better management of stormwater runoff. GRMCA has offered to support Senator Ginn s efforts here. SB 116 was introduced this week and has yet to receive any committee action. We will keep you apprised of developments on SB 116. House Bill 73 By Representative Penny Houston Rural Downtown Revitalization Link to HB 73 HB 73 is an effort from Rep. Houston and the Georgia Department of Community Affairs (DCA) to spur investment in rural Georgia downtowns. If enacted, this bill would allow DCA to establish revitalization zones in rural downtowns with populations less than 15,000. While the nuts and bolts of the bill are somewhat complicated, the bottom line is that the bill would allow for a $2,000 income tax credit per year for five ears for each new job created in a revitalization zone. It is capped at $40,000 per year. It also allows investors who purchase commercial property in a revitalization zone a tax credit for rehab a tax credit of 25% of the purchase price of the property not to exceed a total of $125,000. The value of the tax credit would be repaid to the investor over a 5 year period. GRMCA believes this would be a good measure to spur development in parts of Georgia that have otherwise seen a slower recovery than the metro areas. GRMCA has offered its support to both Representative Houston and DCA Commissioner Camila Knowles. The bill has already been passed out of the full Ways & Means Committee and would anticipate it receiving floor debate sometime next week.

5 Capitol Visits The best way to make a meaningful impact on legislators is to come to their turf and meet with them. If you show up at the Capitol personally to talk with them about an issue, they know it is important to you and the industry. Several members have offered to join us at the Capitol in support of HB 247. Please let me know if you would be willing to do so. We would like to bring folks from the industry through next week. You can pick the day you come. We would just ask that you plan to spend the morning at the capitol from about 9 am to noon. You can me at jcotty@gaconcrete.org or call/text my cell phone at (404) Jimmy Cotty, Executive Director Georgia Ready Mixed Concrete Association