Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

"Marsh, Ragen D."

06/08/2007 10:19 AM



To



cc



Subject

HR 900











As you already know, Speaker Richardson and several members of House leadership

introduced HR 900, major tax reform legislation, on the last day of this year's

session. House leadership has been working with economist Arthur Laffer for

several months now and at Wednesday's session of the GA Chamber of Commerce

event, Speaker Richardson presented the plan in its current form.

The legislation has been named the Georgia Repeals Every Ad-valorem Tax Plan,

or GREAT Plan. Essentially, the legislation would eliminate the 1,261 taxing

entities across the state, including counties, cities, and local boards of

education and leave only the Department of Revenue in place. The state would

collect two taxes: a 4 percent sales tax on ALL goods and services (including

food) and a 4 percent income tax. Individuals filing individual tax returns

would be eligible for a tax credit for food and prescription drugs. However,

all property taxes would be eliminated and the state would remit revenue back

to the local governments.

Additionally, this legislation would eliminate all special local option sales

taxes. If a local government wanted to continue or increase such a tax, they

would have to have a three-fifths majority vote from both the House and the

Senate as well as a three-fifths majority vote from the citizens in that

community.

The Speaker stressed the fact that NO exemptions would be allowed, otherwise,

there would need to be an increase in both the 4 percent income tax and the 4

percent sales tax. Additionally, the Speaker expects this legislation to

continue evolving, the above is only a starting point. We will be sure to keep

you up to date on any changes or developments. House leadership hopes to have

a website detailing the plan in the coming months and we will send you that

link when it becomes available.

Please let us know if you have any questions.

Ragen Marsh

Troutman Sanders Public Affairs Group, LLC

600 Peachtree St., N.E., Suite 5200

Atlanta, Georgia 30308-2216

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