Thomasville Times Enterprise

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March 9, 2013

Governor's role in tax break nixed

THOMASVILLE — Revisions to a 2011 tax break aimed at boosting Georgia tourism are closer to becoming law after legislators made a big change by removing the governor's direct role in awarding the incentives.

The Georgia Tourism Development Act, which offers hefty tax rebates for building tourist attractions, was signed into law two years ago but remains unavailable to developers. State agencies responsible for implementing the tax break told lawmakers they needed to go back and fix technical problems before the rebates could be offered.

House lawmakers approved the changes 148-19 Thursday. The measure's sponsor, Republican Rep. Ron Stephens of Savannah, said he expects similar support in the Senate, which still must approve the revisions. He emphasized that, unlike many tax incentives, the tourism tax break doesn't give attraction developers any money upfront.

"You don't get a dime from this until you invest the dollars and the turnstiles start turning," said Stephens, chairman of the House Economic Development and Tourism Committee. "You've got to build it first."

Designed after a similar law in Kentucky, the Georgia measure allows approved projects — new museums, water parks, convention hotels and other tourism magnets — to keep a portion of the sales taxes they collect for 10 years.

But the law also had its quirks. One glaring example: The law as it stands now requires the governor to make the final decision on which projects get approved for the rebate. No other tax break in Georgia requires that.

See Sunday's edition for more details.

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