Tax Policy and Tax Reform in Georgia

The Ways and Means Committee is the chief tax writing committee in the General Assembly and derives its' importance from the state Constitution that provides all revenue bills must originate in the House. The committee considers not only taxes (income, sales, ad valorem, excise, motor fuel, estate, and others), but exemptions and credits as well. I currently serve as Secretary to the full Committee and Chair of the Ad Valorem Tax Subcommittee.

Representative Jay Powell is Chairman of the Ways and Means Committee and he has charged members with considering appropriate tax policy to apply to tax reform efforts in Georgia. I shared with Chairman Powell the following thoughts on the direction I would like to see tax policy and tax reform move in Georgia.:

• No rate increase on any non-excise tax revenue source
• No increase in the sales tax rate
• Reduce personal income tax rates
• Eliminate corporate income taxes
• No tax on business inputs
• Broaden the sales tax base
• Provides opportunities for increased revenue at current rates
• Reduce the number of income tax brackets
• Adjust 'sin' taxes to the average of all states or the average of border states
• Would result in a reduction in some tax rates and an increase in others ultimately resulting in a neutral tax policy for Georgia as compared to other states with regard to 'sin' taxes.
• No fees on property tax bills
• Generates an estimated $6 - $8 million in revenue to the state and acts as a 'governor' on local governments raising taxes and fees.
• No new local sales taxes and/or increases in existing caps
• Eliminate certain credits / exemptions - based on return on investment analysis; will result in revenue
• Sunset all credits / exemptions - likely will result in revenue over time
• New credits by refund ONLY once documented achieving goals - likely to result in revenue over time
• Policy should benefit maximum number of taxpayers possible
• Policy does NOT incentivize government assistance
• Policy does NOT drive market behavior and/or create new private sector profit opportunities
• i.e.: marketable tax credits
• Recognize our bond rating is the result of sound fiscal policy and should not dictate policy

Obviously, there are many more considerations and the devil is in the details of any piece of legislation, however, these are the broad concepts I believe would serve Georgians well with regard to our tax policy and tax reform. 

I welcome your comments.

County fees exceed county property taxes

I suspected it was only a matter of time and that time is 2013. The weight of the Gwinnett County fees levied against some properties exceed actual property taxes this year. That is right, county property taxes are actually less than the tack-on fees the county assesses against some properties. Of course, one’s wallet and one’s mortgage company cannot tell the difference between a tax and a fee – except that taxes are deductible and fees are not.

Many of you support my effort to remove tack-on fees from our property tax bills (HB 159); the inclusion of fees on our property tax bills is poor public policy period. Economically, the practice tends to hit lower valued properties, perhaps those often at risk of default, the hardest. Non-tax fees consume a higher percentage of the total bill on lower valued properties than high value properties. By increasing monthly mortgage payments via escrow and because of the non-judicial foreclosure statutes in Georgia, including these tack-on fees on property tax bills severely limits a property owner’s ability to stall or avoid foreclosure via negotiations with vendors providing these services.

The result? Freedom is reduced; government grows stronger.

I will continue making the case to remove these add-on fees from your property tax bills. In the meantime, you might support city and county candidates that are willing to do the same.

It is legal – just un-American

I had another enjoyable opportunity to hear U.S. Congressman Rob Woodall speak recently at the Snellville Commerce Club lunch (a group of local business owners – most small businesses). The Congressman suggested our ire ought not be focused on the National Security Administration (NSA) for “spying” on Americans, rather, the U.S. Congress and President that enacted the law making their activities legal. He said the agency reports each year to Congress their activities and findings so our elected representatives knew or ought to have known of their actions. Therefore, the activities are legal, but legality does not necessarily mean wise or prudent. The same is true regarding the Patient Protection and Affordable Care (PPAC) Act or “Obama Care”. It is the law of the land upheld by our highest court. It is legal; however, many would agree that a government take-over of nearly one sixth of our economy is anathema to our nation's free enterprise system.

For the past several years, I have been advancing an argument at the Georgia General Assembly that would prohibit local governments from billing non-tax fees on your personal ad valorem tax returns. Never have I suggested the practice was illegal – the Georgia Supreme Court has now confirmed it is legal; however, I do believe such an assault on one’s private property in the name of efficient government is unjust.

Recent local news reports several school systems, including Gwinnett County Public Schools, are installing cameras on school buses to aid in enforcing traffic laws. In as much as the school systems do not have traffic enforcement jurisdiction, local governments are necessary partners. Again, the legality is not in question; however, this is yet another encroachment by government into our lives at the same time creating a time and money distraction from the core business of school systems to educate our children. Yes, it is legal, but should governmental agencies continue the installation of cameras monitoring our every move?

Perhaps the most egregious to me, local news reports that Gwinnett County Police have unwillingly strapped one hundred citizens to a gurney, placed them in a headlock, and forcefully withdrawn their blood based on a Magistrate’s warrant to aid in securing what is most often a misdemeanor driving under the influence conviction. Yes, it is legal – just un-American.

Most would agree we must have a safe and secure national defense and providing a healthcare safety net for our poor and disabled is without question. Efficient government operations and citizens that pay their bills is required of all in a civil society. We all desire a safe environment to, from and during school for our children, and DUI’s are a serious offense. That said, our nation has grown and prospered in large degree because government has remained relatively limited in our lives. In my view, each of these seemingly well-intentioned government intrusions are rapidly moving our nation over the tipping point where government will dominate our lives and that most certainly is un-American.

2013 Capitol Wrap Up

2013 Session Wrap Up 

The 2013 Session of the Georgia General Assembly began late (January 14) and ended early (March 28) – usually indicating good news for taxpayers. The session was largely uneventful, addressing several major items and leaving others for discussion another day. I’ve listed some of the highlights below; please contact me with any questions, concerns, ideas, or suggestions you may have regarding our state.

HB 106 – Fiscal Year 2014 Budget
The FY 2014 budget is balanced at $19.9 billion in state revenues (a 2.8% increase) and $37.1 billion overall. Our investment in education greatly improved this year at 53.4% of state spending or $10.6 billion. HB 106 fully funds Quality Basic Education enrollment growth and Equalization Grants. The pre-K school year is restored to 180 days and Georgia Gwinnett College received the necessary funding to continue its’ strong growth. I voted YES.

HB 142 and HB 143 – Ethics Reform

These measures strengthen Georgia’s ethics laws by placing limitations on lobbyist spending, granting rule-making authority to the Ethics Commission, and ease the burden on local officials. The reforms also prohibit providing sporting event tickets or paying for recreational outings and establishes limits on travel expenses. I voted YES.

HB 178 – Georgia Pain Management Clinic Act

This bill addresses the abuse of legal pain medications by regulating and licensing pain management clinics. The GBI estimates that since 2010, the number of pain management clinics in Georgia has risen from 10 to 125. Passage of HB 178 requires all pain management clinics register with the Georgia State Board of Pharmacy and be owned by a licensed physician or hospital. I voted YES.

HB 242 – Juvenile Justice Reform

This bill implements many of the recommendations of Governor Deal’s Special Council on Criminal Justice Reform as it relates to juvenile offenders. The bill attempts to improve public safety, outcomes, rehabilitation of non-violent juveniles, and reduce the costs of services. I voted YES.

HB 372 – HOPE Grant Program for Technical Schools

The HOPE grant program is different from the HOPE scholarship program. The bill lowers the eligibility threshold to 2.0 for HOPE grant recipients and mandates that our Technical College System change from an enrollment-driven formula to an outcome-driven formula in annual budget requests. I voted YES.

HB 487 – Increases the Lottery Commissions supervision of Class B games

This is a comprehensive reform bill aimed at eliminating illegal gambling via coin-operated games often located within convenience stores. In addition to transferring oversight from the Department of Revenue to the Lottery Commission, this legislation also permits players to redeem coupons for lottery tickets – the only game method in Georgia that may legally offer cash payouts. I voted YES.

SB 24 – Provider Payment Fee

The “Hospital Medicaid Financing Program Act” often referred to as the “Hospital Bed Tax” authorizes the Department of Community Health to establish a fee on hospitals to utilize to secure additional federal Medicaid funds that are returned to hospitals to offset costs associated with providing Medicaid services. The General Assembly retains the authority to override the DCH Board’s assessment and the bill is automatically repealed on June 30, 2017 unless reauthorized by the General Assembly. I voted YES.

SB 136 – BUI/DUI Alignment

SB 136 lowers the legal limit for Boating Under the Influence to .08 grams – the same as DUI in an automobile. I voted YES.

HB 99 – Homebrew Beer Competitions

This bill increases to 200 gallons (matching the federal limit) the amount of home brewed beer one may produce (in any home with two people of legal age), establishes legal transportation methods, and permits home brew beer completions. I voted YES.

Two measures that did not pass that will be considered again next session are:

HB 512 / SB 101 – Safe Carry Protection Act
This bill will greatly expand our personal freedoms for licensed weapons permit holders to carry a firearm of their choosing in more places including bars, churches, and campuses. Private property owners maintain their right to restrict firearms on their property.

I strongly support passage.

HB 159 – Property Protection Bill

This legislation simply states that taxes and only taxes appear on your property tax bill. Support continues to grow for this strong Constitutional private property measure that will remove non-tax fees from your property tax bill.

I am the author.

Legislation Authored or Co-Sponsored

Should you be interested in the legislation that I have authored or co-sponsored and the current status, you may review those bills here.

As always, I remain appreciative that you allow me to serve as your state Representative. I encourage you to contact me with any comments or questions you have about the legislation being considered at the state Capitol.  Now that we are out of session, you can reach me on my cell at 404-966-5804 or via email at brett@voteharrell.com

Thank you,

Brett Harrell

Capitol Update Week 5 - Title Fees and the Tennessee River

This week at the Cap

After over six hours in Ways & Means Committee hearings, the House passed HB 80 by Representative Tom Rice modifying the new auto Title Fees that take effect March 1, 2013. The revisions take into account concerns voiced by those in the auto leasing industry as well as those that are avid auto enthusiasts and collectors of older and hobby automobiles. HB 80 passed 159-4 and is now pending in the Senate Finance Committee.

Frequently Asked Questions regarding the new Title Fee and other helpful information is available at the Gwinnett County Tax Commissioner's webpage. 

The House also passed HR 4 seeking to resolve the Georgia / Tennessee boundary dispute and allow Georgia access to the Tennessee River for drinking water and other purposes. The Tennessee River generates fifteen times the water flow as the Chattahoochee River and I believe is our only realistic 100-year water solution.

   

Next Week

The pace of proposed legislation presented on the House floor for a vote will begin to quicken next week. On Tuesday, the House will consider the following bills:

HB 35

Firearms; carrying and possession of by an administrator within a school safety zone

HB 71
Georgia Municipal Employees Benefit System; total percentage of investments permissible in real estate investments; increase

HB 122
Sexual Offender Registration Review Board; review and utilize records of Board of Pardons and Paroles in making assessments; authorize - I am a co-sponsor.

HB 123
Parent and Teacher Empowerment Act; enact - sometimes called Parent Trigger

HB 124
Local elections; votes cast for disapproval of Sunday alcohol sales by retailers shall not nullify prior election results; provide - I am the author. 

HB 160
Mortgages; vacant and foreclosed real property registries; revise provisions

HB 178
Georgia Pain Management Clinic Act; enact

HB 235
Optometrists; revise definition of optometry; remove certain exemption  

HB 290
Labor; employees use sick leave for care of immediate family members; allow  

In Committee

HB 159 my Property Protection Bill will be heard for the first time before the Public Finance and Policy Subcommittee of Ways & Means. For a detailed summary of the bill that would prohibit billing non-tax fees on your property tax bill click here.

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