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.

An old penny for transportation

In my district, as in many, transportation remains an issue of importance in search of innovative and efficient solutions and funding. 

So, why did last year’s proposed one-cent regional sales tax for transportation (TIA) fail in most regions? For some, there is a credibility gap in the “ask” for an additional penny for transportation when we are not spending the penny we already have.

In addition to the Federal Excise Tax of 7.5 cents per gallon of gasoline, Georgia imposes a 4-cent state sales tax (In Gwinnett County an additional 1-cent SPLOST and 1-cent E-SPLOST sales tax brings the total to 6-cents on the dollar). Of the 4-cent state sales tax, the Georgia Department of Transportation (GDOT) reinvests 3-cents into transportation projects. The Georgia General Assembly invests the final 1-cent into other General Fund non-transportation projects. Counties, cities, and school systems invest much of the local sales taxes collected on gasoline into non-transportation projects.

     

              Credit: Baruch Feigenbaum, Transportation Policy Analyst, Reason Foundation

While many of the projects funded with the diverted 1-cent state sales tax on gasoline may be worthy of investment, robbing Peter to pay Paul has rarely proven a successful long-term financing strategy. Sound public policy would suggest investing those funds generated through transportation spending back into transportation system maintenance and improvements a better choice.

Baruch Feigenbaum, Transportation Policy Analyst with the Reason Foundation recently recommended to attendees at a Georgia Public Policy Foundation transportation luncheon that Georgia do just that by reclaiming the fourth cent of state sales taxes collected on gasoline. Mr. Feigenbaum’s presentation is available here. 

Although unaware of HB 648, I was pleased to hear Mr. Feigenbaum’s arguments in favor of reclaiming that old penny as I introduced legislation last session (HB 648 co-sponsored by House Transportation Committee Chair Jay Roberts) to begin reinvesting those funds into transportation. HB 648 would return ¼ of a cent each year beginning in fiscal year 2016 through fiscal year 2020 to GDOT. Initially about $40 million a year and once GDOT reclaims the full one-cent approaching $200 million a year in additional transportation dollars.

Can we afford it? I believe so. In my three years as a member of the Georgia House, our state budget has grown from $18.3 to $19.9 billion (remaining well below the pre-recession peak of approximately $23 billion). Recent revenue numbers exceed the Governor’s projections and indications are our state economy is slowly strengthening. Rather than allow new spending to consume revenue growth or battle over cuts to programs currently funded by the diverted penny, allocating a small percentage of returning revenue growth to reclaiming that old penny may go a long way toward improving our mobility, reducing congestion, encouraging business growth, and providing the quality of life all Georgians desire.

Brett Harrell represents the 106th House District in the Georgia General Assembly that includes portions of Grayson, Lawrenceville, Loganville, and Snellville. He is the former Mayor of Snellville and former Executive Director of the Evermore Community Improvement District. Mr. Harrell serves as Vice Chair of the House Budget and Fiscal Affairs Oversight Committee and as a Member of the Regulated Industries, Transportation, and Ways and Means Committees.

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