ATLANTA (March 14, 2022) – A proposed tax on video games and other digital goods should not be seen as an attack on gamers or their preferred types of entertainment, said the Georgia Game Developers Association (www.ggda.org) today. The proposed tax, part of HB594, would allow Georgia to collect sales tax on many digital items as it does their physical counterparts.
“The vast majority of sales by Georgia’s video game developers occur outside the state, allowing the game industry to contribute a significant positive impact to the state’s balance of trade. This proposal is in line with what many states are doing to ensure that the digital version of items are taxed the same as physical items. We have heard concerns from a number of people that video games were being targeted by this bill, but we see no reason to believe this,” said Andrew Greenberg, executive director of the GGDA. “HB594 is not hostile to gamers.”
Greenberg noted the numerous technical and financial contributions the industry makes to Georgia, as well as the strong support it has received from Georgia legislators over the years. In 2020, the industry brought in $577 million in gross revenues, while paying Georgians an average of $87,000 that year. The annual survey of the game industry showed that game developers provided a value add to the Georgia economy of $547 million and a total economic impact of $770 million in 2020.
“Georgia’s political leaders have long seen the value of supporting the video game industry as part of the Entertainment Investment Act. As games have more clearly become a leading form of media, with worldwide sales closing in on $200 billion, we have been honored to work with politicians from across the political spectrum on issues impacting education and technology. Governors from Perdue to Deal to Kemp have worked with us to help expand the game and esports industries here,” said Greenberg.
Those interested in learning more about the economic impact of the game industry for Georgia can watch this brief video with the study’s lead author, Dr. Jay O’Toole, and and Peter Stathopoulos, an expert on Georgia tax law with Bennett Thrasher: https://youtu.be/e2Fu3VTvP4A
An overview of the economic impact study can be found at https://ggda.org/blog/georgia-game-industry-2020-economic-contributions/
The Georgia Game Developers Association is the nonprofit trade association for Georgia-based businesses and professionals in the video game manufacturing industry. It supports its members with business opportunities, educational services, professional development and public affairs coordination.