The Georgia Senate on Tuesday approved a measure that would grant hundreds of millions of dollars in tax relief to timber producers and farmers affected by Hurricane Helene, which decimated parts of the state in September.
House Bill 223 would allow local governments to waive timber taxes on lost trees and grant other tax relief to producers and farmers. It’s one of a slew of bills pending in the General Assembly that would grant tax relief to victims or allow Georgians to prepare for the next storm.
Those measures follow lawmakers’ decision to spend nearly $863 million on hurricane cleanup and relief in the state’s amended 2025 budget.
“As someone who represents a district that was devastated, I think it shows how much our hearts are with those communities,” Sen. Russ Goodman, R-Cogdell, told his fellow senators. “I’m proud of the response the state has taken.”
Hurricane Helene caused an estimated $5.5 billion in losses to the state’s agricultural and timber industries. It also damaged 212,747 homes across the state and cost 34 Georgians their lives.
The federal government is expected to pay much of the cleanup cost. Last week, U.S. Agricultural Secretary Brooke Rollins said tens of billions of dollars in aid would begin flowing this month. But Gov. Brian Kemp and Georgia legislators have sought to provide additional aid.
Among other hurricane-related expenditures, the 2025 budget includes $285 million for low-interest loans for farmers and removing downed timber from private land.
HB 223 would go farther. The bill would authorize local governments to waive taxes on lost timber for the last quarter of 2024 and all of 2025, with the state reimbursing the counties for the lost tax revenue. That is expected to cost the state up to $17.3 million.
The bill also would allow timber producers to write off Helene-related losses on their state income taxes and exempt federal disaster relief payments for Helene from taxable income of farmers. And it would temporarily exempt from sales taxes materials used to rebuild greenhouses, livestock barns and other farm structures.
A Georgia State University analysis estimates those three provisions would cost the state up to $280.6 million in lost revenue through fiscal year 2029. Local governments could lose up to $19.2 million.
Between the budget provisions and HB 223, state spending on Hurricane Helene would be about $1.2 billion.
Lawmakers also are considering other ways to grant relief and prepare for upcoming storms. Among them:
- House Resolution 42 would ratify Kemp’s decision to suspend the state’s motor fuel tax in the wake of the hurricane. The move cost the state about $91.6 million.
- House Bill 165 would allow taxpayers who suffered Helene losses to take an additional $500 standard deduction on their income taxes.
- House Bill 262 would establish a grant program to allow certain rural hospitals to install backup generators.
- House Bill 425 would provide a tax credit of up to $5,000 for convenience stores and nursing homes to buy emergency power generators.
- House Bill 511 would allow Georgia residents to establish “catastrophe savings accounts” to pay for expenses related to hurricanes, tornadoes, earthquakes and other natural disasters. Money contributed to the accounts would be tax deductible.
- Senate Bill 201 would increase consumer protections for homeowners entering into contracts for repairs following natural disasters.
HB 223 now goes back to the House for further consideration. The fate of all the measures will be determined over the next two and a half weeks, as the legislative session winds down.
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