A good update on the GATE program via Rome Ethredge in Seminole County:
Our Senator John Bulloch told us earlier that some sales tax changes will be brought into effect by this new Bill 386, and here are some of the details.
“Farmers will be exempt from paying sales tax on most materials used to produce commodities effective Jan. 1, 2013, following the Georgia General Assembly passing House Bill 386 earlier this year and Gov. Nathan Deal signing the bill into law. House Bill 386 set the general provisions of the Georgia Agriculture Tax Exemption (GATE) program including criteria farmers must meet to qualify for the tax exemptions. The bill also stipulated that farmers apply to the Georgia Department of Agriculture (GDA) to obtain a GATE certificate to show when purchasing inputs such as seed, feed, chemicals, etc. that qualify for the tax exemption.
To qualify for a GATE certificate a farmer must:
- produce $2,500/year or more in agricultural products
- provide $2,500/year worth of agricultural services or produce a long-term agricultural product with the potential to produce $2,500/year or be the owner of property that qualifies for the Conservation Use Value Assessment or Forestland Protection Act.
The GDA has posted proposed rules regarding the GATE program on its website and is accepting comments on the rules until 4:30 p.m. Oct. 26. The proposed rules are available at http://agr.georgia.gov/2012-legal-notices.aspx.
The main provisions of the proposed rules are:
1) The GATE certificate may only be used by certified qualified ag producers.
2) Application for the GATE certificate is to be made in writing or online via a form prescribed by the GDA and to be available at http://www.agr.georgia.gov by mid-November.
3) There will be a $20 fee for online applications and a $25 fee for written applications.
4) GATE certificates must be renewed annually. Failure to renew the annual certificate deactivates the certificate with no tax exemption availability.
The GDA will consider submitted comments on Oct. 29. Comments should be sent to Dr. James Sutton, Director of Administration, Georgia Department of Agriculture, 19 Martin Luther King, Jr. Dr., Atlanta, Ga. 30334 or via fax to (404) 232-1547. Call (404) 656-3600 for more information.”