Georgia Likely to Owe Interest to Taxpayers

Slumping tax collections and budget cuts make Alabama and Georgia likely to join California in owing interest to some taxpayers for issuing their income tax refunds late.

Both states have laws requiring them to pay interest to taxpayers who filed by the April 15 deadline but don't get their refunds within 90 days. That deadline is Wednesday.

Tax officials in both states say it appears that interest will have to be paid because thousands of tax refunds are still awaiting payment.

California officials are planning to issue IOUs this month for nearly $200 million in tax refunds. California expects to pay the IOUs in October.

Kansas had also been late in paying refunds, but it borrowed money last week to catch up.

(Associated Press)

Crackdown on Tax-Delinquent Lawmakers

A state senator wants to change rules in his chamber to penalize senators who haven't paid their taxes. Nineteen legislators - including three state senators - are delinquent on their tax bills. State Sen. Eric Johnson, a Savannah Republican, said he's pushing legislation that would change Senate rules to require that lawmakers in the chamber be current on their tax bills. If they aren't, they could face disciplinary action, including removal from the Senate.

(Associated Press)

State could freeze tax breaks

Property tax breaks could be frozen in the face of Georgia's deepening budget woes. Governor Sonny Perdue could halt a $428 million dollar grant program. Today he called the grants "ineffective." Perdue said rather than providing homeowners with tax relief, they have worked to fatten up local governments. The Republican did acknowledged the issue is "politically nuclear" for legislators who, unlike him, are facing re-election this fall.

Georgia's tax burden heavy

Georgia carries a heavier tax burden than the average state, according to the Tax Foundation. The Atlanta Business Chronicle reports the Foundation says Georgia has the 16th highest taxes in the nation. People here pay 9.9% of income. The national average is 9.7%. The Tax Foundation says New Jersey pays the most taxes, at 11.8%.

Tax collections up

Georgia tax collections are up after months of sluggish returns. State money managers say they were up 34% in April. But Governor Sonny Perdue was quick to say that tax collections later this year will be down and that will balance out this one month spike.

Lawmakers reach '09 budget deal

From the Associated Press ...

Georgia lawmakers reached a deal on a $21.2 billion budget that boosts salaries for state employees and funnels money into schools on the chaotic final day of the legislative session. But an agreement on tax cuts was proving a bit more elusive today as weary legislators raced against the clock to consider hundreds of measures in the dying hours of the 40-day session. House Majority Leader Jerry Keen said, "I'm an eternal optimist. But I'm cautious." The impasse over tax cuts created a logjam for other high-profile measures, including a new fee to help the state's trauma centers and a sales tax hike to pay for transportation improvements. Republicans pledged to deliver tax relief this election year, but with a few hours left in the session's final day they remained sharply divided over how to do it. The House wanted to eliminate the car tag tax over two years. The Senate pitched a competing plan that would trim the state income tax by 10 percent over five years. Also up in the air were vast changes to the education system, drought-inspired measures to bolster Georgia's reservoir system and a proposal to allow Georgians to carry concealed weapons in more public places. The budget deal removes at least one contentious issue from the table, but both chambers won't get to vote on it until tonight.

Forest owners would save under measures

Georgia's forest owners could get property tax cuts under a pair of proposals approved today by the House. Supporters said the plans could reduce property taxes by as much as 50 percent for landowners who agree not to develop their land. Georgia now taxes forests based on their best use. Sponsors say that means tax rates for wooded land near booming residential areas could have tripled over the last few years. The measure changes the tax system by taxing landowners based on the actual use rather than the potential use.

Transportation tax clears Senate

The Georgia Senate easily approved a plan today for counties or regions to impose a one-penny sales tax to pay for transportation projects as long as local voters agree. It is the strongest step yet toward finding a new way to raise revenue for roads, repair aging infrastructure and paying for other transportation projects. It also brings the Legislature one step closer to a possible showdown. Legislative leaders agree that a tax is needed to fund transportation projects but remain sharply divided over how best to raise the money.

Group plans tax money petition

An anti-tax group is launching a summer petition drive aimed at what it calls tax relief for Georgians. The Georgia arm of Americans for Prosperity is targeting 142-million dollars that was earmarked for a property tax cut. Instead the money went into the state reserve fund because Governor Sonny Perdue vetoed the tax cut. The group says it hopes to gather hundreds of signatures in a petition to submit to the state’s top lawmakers.

Carpet maker lied on tax filing

A Dalton carpet maker has pleaded guilty to filing a false tax return. The Atlanta Business Chronicle reports that Beaulieu admits it filed a false federal tax return in 2000. The company is charged with depreciating some carpet equipment. The company will pay $3 million in fines. No individuals faced charges, but Beaulieu’s CEO and Vice President have resigned.

State to audit tax collections

The state is auditing how it processed income taxes this year. Some lawmakers accuse Governor Sonny Perdue’s administration of cashing April income tax checks too slowly. They say that make it look like Georgia couldn’t afford a 142-million dollar tax break. Governor Perdue vetoed that tax break in May. But a few weeks later, the Department of Revenue reported a 45% increase in income tax collections.