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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