Legislative Alert
January 16, 2009 - Legislative Alert
No. 1 ; January 16, 2009
Builders: Local Governments Hindrance to Housing Recovery
It?s only the first week of the Legislative Session and local government rules
and regulations are already being targeted. Speaking before a meeting of the
Joint Economic Development Committee, Georgia?s homebuilders expressed concern
that burdensome local government rules and regulations are holding back the
housing recovery in Georgia. They advocated for a housing ?stimulus? package
that would take action on the following:
Impact fees. They say impact fees are too high, unfair and should be project
specific and limited in distance.
Building and constructions codes. They feel these requirements are too
burdensome and with hundreds of different versions in place, difficult to
follow.
Building moratoria. They would like to eliminate the ability for local
governments to impose building moratoriums.
Building inspections. They would like to be able to use private building
inspectors if the local government cannot do an inspection within a specific
time frame. They would also like local fees returned in those instances.
Open Meetings Act updates. They would like state law to require that local
governments post their local ordinances and other decisions on the Internet.
Tree ordinances. They articulated a desire for ?relief? from the burdens placed
on them from local tree ordinances.
Stream buffer and solid erosion requirements. They believe these ordinances are
inconsistent across the state.
Georgia?s homebuilders are using the tough economic climate as cover for their
long-term agenda to reduce local government regulation and oversight. While no
legislation has yet to be introduced on these issues, their frustration with
your rights to create the type of communities you want is clearly evident.
Transportation Funding
The House Transportation Committee met on Wednesday afternoon to discuss how to
pay for the state?s transportation needs. Chairman Vance Smith (R-Pine
Mountain) presented an outline of a funding concept which he hopes to introduce
soon. His concept is focused on a proposed Constitutional Amendment that would
create a one-cent statewide sales tax for transportation. It would sunset after
10 years.
Enabling legislation would:
outline various transportation projects around the state to be funded,
direct funding to certain cities and counties for transportation needs, and
list other transportation modes like aviation and transit which could be funded
from tax revenues.
The governance issue for how the funds will be spent remains undecided. Also,
sustainable funding for transit, which, according to transit advocates,
requires a minimum 20 year guaranteed funding match in order to secure federal
"new-starts" funds, is also a discussion point in Rep. Smith?s concept.
On the Senate side of the debate, Senate Transportation Committee Chairman Jeff
Mullis (R-Chickamauga) plans to introduce "place-holder" legislation which
would do three things:
allow for a one-cent sales tax to be levied in a defined metro-Atlanta region,
allow for self-selected regions of counties and cities to form outside
metro-Atlanta, and
allow for an additional one-cent "T-SPLOST" within the boundaries of a single
county.
GMA will keep you up-to-date as the debate continues on this issue.
Property Tax Assessment Cap
House Resolution 1, Rep. Ed Lindsey (R-Atlanta)
GMA Position: Oppose
Contact: Gwin Hall, (678) 686-6212
Status: Pending in the House Ways & Means Committee. GMA expects the committee
to begin work on this bill the week of January 26.
HR 1 is a proposed Constitutional Amendment that would cap annual assessment
increases on residential and non-residential property at 3 percent or the rate
of the Consumer Price Index (CPI), whichever is less, beginning in 2011.
Improvements to the property would be assessed at fair market value and added
to the capped value.
In the event that the property was sold or transferred, the property would be
assessed for tax purposes at no more than the fair market value, which is
defined as no more than the sales price of the property in an arm?s length
transaction.
If passed by the General Assembly, HR 1 would be on the ballot in November
2010.
MOST for Water & Sewer
House Bill 66, Rep. Chuck Sims (R-Ambrose)
GMA Position: Support
Contact: Gwin Hall, (678) 686-6212
Status: Pending in the House Ways & Means Committee
HB 66 would authorize cities to impose a 1 percent sales tax, subject to a
local referendum, for water and sewer purposes. If general obligation (GO) debt
is issued in conjunction with the sales tax, the tax would expire with the
repayment of the bonds. If no GO debt is issued, the tax can levied for a
maximum of five years. The tax may be re-imposed if approved by the voters.
GMA asks that you contact your House member and ask them to sign-on to or
otherwise support this legislation.
Sales Tax to Reduce Property Tax
Senate Resolution 2, Sen. Mitch Seabaugh (R-Sharpsburg)
GMA Position: Support
Contact: Gwin Hall, (678) 686-6212
Status: Pending in the Senate Finance Committee
SR 2 is a proposed Constitutional Amendment that would authorize cities,
counties and schools to levy a sales tax for property tax reduction purposes.
The sales tax would be subject to voter referendum.
Any city, county or school district levying this sales tax would be required to
establish a maximum net millage rate for the duration of the sales tax.
A city could levy this sales tax at the rate of 0.5%, but if a city and county
jointly levied the sales tax, they could levy it at a rate of 1%.
Franchise Fees: Convert to Tax
House Bill 48, Rep. Earl Ehrhart (R-Powder Springs)
GMA Position: Oppose
Contact: Gwin Hall, (678) 686-6212
Status: Pending in the House Governmental Affairs Committee
HB 48 would convert the municipal franchise fee into a tax, thereby
invalidating all municipal franchise agreements in the state. It would also
prohibit the charging of a franchise tax onto manufacturing businesses, thereby
impacting the amount of revenue generated.
HB 48 would also prohibit this new tax from being included in a utility?s base
rate, thereby exempting unincorporated residents from being charged for the
utility?s use of the municipal rights-of-way. The bill does not include similar
protections for city residents who would still be required to pay for the
following items that would still be in the utility?s base rate:
the acquisition of property by utilities in the unincorporated area to serve
customers there,
county property taxes to counties in which electric generating facilities are
located, and
the cost to provide electricity to more rural areas of the state.
Red Light Cameras: Repeal
House Bill 31, Rep. Barry Loudermilk (R-Cassville)
GMA Position: Oppose
Contact: Ted Baggett, (678) 686-6210
Status: Pending committee assignment
HB 31 would repeal the highly successfully red light camera program that has
demonstrably improved safety at numerous intersections in various cities
throughout Georgia.
? 1997 - 2009 Georgia Municipal Association
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