Ga. House Panel Approves Budget

The House Appropriations Committee has approved an $18.9 billion budget that funnels hundreds of millions of dollars in federal stimulus money into Medicaid and education.

The amended budget for the current fiscal year passed by a voice vote Wednesday. It cuts more than $2 billion in state spending to fill a deficit. The federal stimulus money coming from Washington is helping blunt some of those cuts.

The budget restores $1.3 million to the state Department of Revenue to keep it from having to furlough auditors.

State lawmakers say that with tax revenues plummeting the state needs the auditors more than ever to make sure that Georgians are paying their fair share.

The full House is set consider the budget Thursday. It still must pass the state Senate.

On The Net: H.B. 118: www.legis.ga.

(AP)

Georgia tax-free weekend open for business

Georgia’s tax-free holiday is underway, running through Sunday. Back-to-school shoppers are expected to benefit the most, as the 4-percent sales tax is waived for many clothes, school-related items, and computers and accessories. State transportation officials are giving Georgians a break as well during this tax-free weekend. Road construction lane closures will be scaled-back within a 5-mile radius of shopping malls or major retail districts.

Information on the sales tax holiday, from the Georgia Department of Revenue website:
A sales tax exemption applies to purchases of tangible personal property in the following categories:

* Articles of Clothing. The exemption applies to articles of clothing and footwear with a sales price of $100 or less per item. Clothing accessories such as handbags, umbrellas, cuff links, handkerchiefs, jewelry, key cases, wallets, watches and watch bands, and ponytail holders and/or similar hair products are not exempt. See lists of exempt items.
* Personal Computers. A single purchase of $1,500 or less of personal computers and/or related accessories is exempt. If the single purchase exceeds $1,500, the entire transaction is taxable. See list of exempt items.
* General School Supplies. The exemption applies to the purchase of general school supplies with a sales price of $20 or less per item. See list of exempt items.

The exemptions are intended for an individual's personal use. The exemptions exclude items rented, leased, purchased by businesses, or purchased for resale. The exemptions do not apply to items sold at theme parks, entertainment complexes, hotels, restaurants, and airports.

Jackson Co. OK'd for cheaper gas

An east Georgia county has the green-light to become the first in the state to sell gasoline to its cities at cheaper prices.

The state Department of Revenue says Jackson County can buy gasoline at a bulk-rate. State officials say the county can then sell the gas to its nine cities and towns.

The savings of about 20-cents a gallon will give local governments some breathing room in their budgets to help cover rising operating costs for police and other city vehicles.

John Ward is manager for the city of Jefferson, the county seat:

"It will definitely allow us to exercise expanded options. But at the same time anything we can do moving forward to make sure that we’re using tax dollars as efficiently as we possibly can we’ll be monitoring that and adjusting accordingly".

Ward says the cheaper gas should be flowing into their city cars and trucks in a few weeks.

Some not getting tax rebates--for a reason

The state has stepped-in and intercepted 16,000 federal stimulus checks from people who allegedly owe back Georgia taxes. The Georgia Department of Revenue says it collected over $4.66 million through the end of May with the federal "offset" system. Georgia started participation in the program five years ago, which permits it to take federal refunds if a state resident owes state back taxes. In the five years under the program, Georgia has collected a total of $137 million. The state ranks third nationally for number of stimulus seizures.

(updated)

Georgians donate $1M through tax refunds

Georgians donated more than $1.1 million dollars to charitable causes on their 2006 income tax returns. The state Department of Revenue says taxpayers make the contributions either by redirecting part of their tax refund to the cause of their choice, or by increasing the amount of taxes they owe. Examples include $310,000 to the Georgia Cancer Research Fund; $318,000 to the Georgia Wildlife Conservation Fund; $222,000 to the Georgia Fund for Children and Elderly; $114,000 to the Georgia National Guard Foundation.

State tax officials ask for money back

The state Department of Revenue is asking some companies to pay back almost 1.6 million dollars in tax credits they received for importing more goods through Georgia ports. Department officials say credits are only granted for exports, but at least four companies were given credits for importing goods since a tax break was started in 1998. Georgia's Revenue Commissioner says import tax credits were given by mistake--they were discovered when Georgia Power was seeking a big refund for equipment it had sent to Georgia ports in 2002, '03, and '04. Georgia law allows companies who qualify for certain business expansion credits, to get money for showing increased use of ports in Savannah and Brunswick.

Know what's tax exempt this weekend

Buyers Beware: Some items you think would qualify for tax exemption this weekend may not.

In general, school supplies, clothes, computers and their accessories are exempt. The Georgia Department of Revenue issues a general list of tax-exempt items. Retailers determine the specifics.

Revenue spokesperson Charles Willey says the department will step in if there are questions.

"If the consumer believes there's something that should be exempt that they didn't get an exemption on," said Willie, "they can call the department and get clarification for the item."

Then if it's determined the item is exempt, the buyer can go back to the store and get the tax reimbursed.

Consumers may call and clear up discrepancies on tax-exempt items Monday through Friday from 8 AM - 4:45 PM at (404)417-6601.