GMA Session Notes
February 18, 2008
The General Assembly is in recess today and will reconvene on Tuesday.
Twenty-two legislative days remain.
Tax Plan Takes Center Stage
Speaker Glenn Richardson took center stage last week when he testified for over
2 ? hours during a House Ways & Means Committee subcommittee meeting on the
latest version of his tax reform legislation.
His legislation, HR 1246 and HB 979, is collectively known as the "Property Tax
Reform Amendment." These two bills, one a proposed Constitutional Amendment
and the other the enabling legislation, are intended to provide a homestead tax
relief grant for education property taxes, a similar credit against all
property taxes on motor vehicles owned by individuals and a repeal of the state
property tax.
Funding for these property tax credits would come from expanding the state
sales tax on groceries, lottery tickets, and 174 consumer services. A sales tax
would not be imposed on education, child care, health care or business to
business services or on construction of new residential property.
The Speaker has also suggested that SR 796, property assessment cap legislation
by Sen. Chip Rogers (R-Woodstock) that is now pending in the House Ways & Means
Committee, would be amended in the House to either include a millage rate cap
or a property tax revenue cap on local governments.
The Speaker made it very clear during his testimony last week that he wants the
subcommittee to pass the legislation this Wednesday so the full Ways & Means
Committee can pass it on Thursday. He then wants the full House to vote on it
early next week.
The Speaker's schedule for passage of this legislation is fast and furious and
allows little time for House members to fully understand or appreciate the
ramifications of the proposed legislation. It should also be noted that no
public input is being allowed on HR 1246 and HB 979.
GMA is opposed to the Speaker's tax reform legislation and would oppose any
efforts to amend SR 796 to include millage rate caps or property tax revenue
caps on Georgia's cities, counties and schools. While not perfect, the current
tax system works with Georgia's current level of state and local taxation
continuing to be an important factor in the state's continued growth. And just
as importantly, the current system keeps funding decisions local; the Speaker's
proposal is the first step in taking local control away.
GMA urges city officials to contact their House members, both Republican and
Democrat, and ask them to vote against HR 1246 and HB 979. Let them know that
you and city officials across the state want a comprehensive study of our state
and local revenue structure before serious damage is done by passing ill
conceived legislation that takes away local control and relies too heavily on
one revenue source.
After you contact your House members, please email Lamar Norton at
lnorton@gmanet.com to let him know who you spoke with and their response to you.
For more detailed information on HR 1246, HB 979 and SR 796, please follow the
links below:
http://www.legtracking.gmanet.com/BillDetail/Default.aspx?RDBTN=HR1246
http://www.legtracking.gmanet.com/BillDetail/Default.aspx?RDBTN=HB979
http://www.legtracking.gmanet.com/BillDetail/Default.aspx?RDBTN=SR796
You can find contact information for your House and Senate members on the GMA
web site:
http://www.gmanet.com/FindLegislator.aspx
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