A new audit found Georgia’s sales tax exemption on inputs used in manufacturing is a loser in the strict sense of its net impact on state and local tax revenues.
However, according to the report developed by the Center for Business and Analytics and Economic Research at Georgia Southern, the tax break more than pays for itself in terms of investment and jobs created in the state’s manufacturing businesses.
The report also found $122.5 billion in average annual economic output generated during the five-year survey period by businesses that used the sales tax exemption.
The audit found that additional economic activity supported 424,333 jobs in total with an average annual salary of $69,000.
