Atlanta Hikes Property Taxes

The Atlanta City Council has voted to raise property taxes from 7.12 mills to 10.12 mills. The vote on Monday was 8-7. Officials said for the average city homeowner it will amount to a $250 annual increase, based on a $240,000 house. Mayor Shirley Franklin had proposed the tax hike to close a $56 million budget gap. Officials said the increase will end the furloughs on city workers.

(Associated Press)

Tax Relief Could End

Tax relief for property owners could be cut under a proposal back by House leaders. The homeowners property tax relief grant reduces property taxes by about $200 to $300 per homeowner. The new measure would guarantee the grant is funded this fiscal year, but in future years would make it contingent on growth in state revenue. Local governments are warning legislators that taxes likely will rise without the grants.

(Associated Press)

Richardson introduces property tax cuts

Georgia House Speaker Glenn Richardson appeared before the House Ways and Means tax reform subcommittee Thursday to present his plan to cut school and automobile property taxes across the state. The proposal would eliminate school and car taxes, worth $422 million over three years. That revenue would be made up by broadening the state sales tax to include groceries, lottery tickets and some services. Richardson insists that school funding will not be affected by the plan.

Local tax measures approved

A number of local tax measures were approved by voters yesterday.

Clayton County voted for a penny sales tax increase to help pay for new county facilities, including a juvenile justice center, police stations and libraries.

In Gwinnett County, voters approved a $750 million bond referendum to build more schools.

Metro Atlanta voters favored extending an existing sales tax to fund repairs to the city’s sewer system.

Forsyth County, voters approved a one percent sales tax for road improvements and property tax increase for more county parks.

Colquitt, Madison, Jones and Polk Counties all approved local sales tax measures for school funding and other projects.

Newton County voters granted senior citizens an additional exemption from school property taxes.

A Lumpkin County referendum to allow liquor-by-the-drink sales passed, while an effort to allow Sunday alcohol sales in Jackson County was rebuffed.

Augusta school officials oppose tax reform plan

School officials in Augusta are going on record against a controversial tax reform plan.

The Richmond County school board has voted to formally oppose the tax plan for education proposed by Georgia House Speaker Glenn Richardson (R-Hiram).

They will take their opposition before legislators at a breakfast on Thursday.

The plan would eliminate a portion of property taxes, replacing education dollars with expanded sales taxes.

But school officials in Augusta fear they would lose control of local education funds.

"Now, we're working under a system where the local authorities have the ability to cut taxes or raise taxes to support a system that the public will support," said Jack Padgett, a Richmond County school board member. "I'm just not sure that anytime you send money away that you would get it all back."

Richardson eventually wants to eliminate all property taxes.

"Property taxes are rising faster than people's ability to pay them, and it is time that local governments stop balancing their checkbooks on the backs of homeowners," said Clelia Davis, a spokeswoman for Richardson. "All we are asking is for the citizens of Georgia to have the right to vote and decide whether they want to eliminate property taxes and change the system. That is the ultimate form of local control."

The Georgia School Boards Association, meanwhile, says only a few school systems so far have asked them for assistance in drafting resolutions opposing the plan. Richardson has dubbed the plan GREAT, which stands for Georgians for the Repeal of Every Ad Valorem Tax.

Opposition to property tax cut getting vocal

Groups opposed to House speaker Glenn Richardson’s proposal to eliminate the property tax in Georgia are stepping up their lobbying efforts.
Richardson already toured the state pushing his plan to eliminate the property tax.

He wants the state to collect sales taxes on food and other items instead and let the state decide how much money will go back to about 640 local governments.
Now, local governments have complete control over property taxes.

That’s why the Georgia Municipal Association is against the plan. Jim Higdon is the groups Executive Director

“This will destroy Local Governments, plain and simple," says Jim Higdon with the Georgia municipal association. "If a mayor and council have no authority, why do they even exist?"

Hidgdon’s group joins the Georgia School Boards Association, the Georgia AARP and others in their own tour of Georgia, to show they say that Speaker Richardson’s plan only benefits those owning big homes in high priced areas and landowners. The plan they say would hurt the elderly because medical services would be taxable.

The Tax Reform: A Reality Check tour will visit cities throughout Georgia, holding events from 4:00 to 6:00 PM on the following dates:
September 25, Macon - Ramada Plaza Hotel
October 2, Rome - Days Inn Downtown
October 9, Athens - UGA Center for Continuing Education
October 17, Albany - Albany State University
October 23, Augusta - Ramada Plaza Hotel
October 30, Savannah - Savannah State College
November 6, Gainesville - Gainesville State College

Perdue considers Richardson tax plan

Gov. Sonny Perdue says he has met with the economist behind House Speaker Glenn Richardson's plan to replace property taxes with a four-percent sales tax on goods and services, such as haircuts and legal counseling.

Perdue says he is interested in broadening the tax base, as this plan would do, and he understands property taxes are onerous. But, he stopped short of endorsing Richardson's proposal. He says he has many questions.

"This would be a huge departure," Perdue says. "We need to have to have the facts on exactly how it impacts [people]."

In addition, Perdue says he wants to make sure a sales tax would raise enough revenue alone.

Local officials across the state have criticized Richardson's plan. They fear they could lose money if the property tax were abolished.

Richardson tax plan fails to woo wealthy suburbanites

Georgia House Speaker Glenn Richardson (R-Hiram) is traveling Georgia's civic and country club circuits in an attempt to rally public support for his sweeping tax reform plan.

He visited the Country Club of the South in Alpharetta Tuesday. There he told the audience that he wanted to replace the taxes they pay on their homes and other property with a four-percent sales tax on goods and services.

Richardson said it is supply-side economics: If people have more money in their pockets, they will spend it, and the taxes will fund public services.

This is a conservative area, but Richardson still raised eyebrows.

"My concern is the math doesn't add up," said Fulton County Commissioner Lynn Riley, who represents this area.

Property taxes now bring in $8.2 billion. That's more than the state would reap from sales taxes, Riley says.

Richardson has several hurdles to leap. He must convince a majority of lawmakers to support his plan, and then voters would have to approve it.

Governor and House Speaker agree to disagree on taxes for now

Gov. Sonny Perdue and House Speaker Glenn Richardson (R-Hiram) say they are still friends, despite exchanging harsh words over a property tax cut the House pitched and Perdue vetoed.

Nonetheless, both stuck to their guns at the GOP convention Saturday.

Perdue defended his veto. He said the $142 million saved is now in the state's reserve fund, where it can be used to reduce long-term expenses.

"I've not going to go through this job eight years and enjoy life," he said, "then hand a tax bill to my children for them and my grandchildren to pay."

Perdue noted the state needs billions to shore up its pension plan.

But when House Speaker Richardson took the stage an hour later, he insisted that a tax cut would have been the better choice.

"I say we need to go slow on saving money," he said. "If we've got extra money, we’re either taxing too much or we need to send some money back, period."

There may be a second part to what both men characterize as a "family feud."

Richardson announced plans to overhaul the state tax system.

"I'm going to lead an effort to repeal the property tax on every house, every piece of land, every car, truck, every real property," he said.

Ultimately, voters would have to approve a constitutional amendment that repeals property taxes and allows the state to depend solely on income and sales taxes for revenue.

But voters would get that opportunity only if Richardson's plan passed the legislature and won Perdue's approval.

That's a big "if."

"There never has been tax reform legislation without the executive branch being involved and, frankly, I would expect an integral part in that," Perdue says.

He told reporters he still hoped to fulfill his campaign pledge to extend the tax break on retirement income.

Richardson contends that tax cut would benefit only wealthy seniors.