War of words continues over dueling tax reform plans

Governor Sonny Perdue had harsh words for leaders of both legislative chambers today, after Tuesday's announcement from the Senate of a proposal to reduced state income tax.  And,  although both Senate and House leaders have expressed their willingness to work together on tax reform, each seemed to hint the other isn't cooperating.  

Lt. Governor Casey Cagle appeared to challenge House leaders who weren't willing to reduce state spending to bring about a tax cut. 

"If the House is serious about reigning in state spending, then the best way to do is through revenue reduction and the best way to do that is through tax cuts." 

In response, House Majority Leader Jerry Keene shot back, questioning the late hour of Cagle's proposal. 

"The Senate has come to the table on day 32, late in day 32, with a tax reform plan that candidly comes no where near the amount of relief that we're proposing for Georgians."  

All this back and forth has Governor Sonny Perdue comparing the tax reform debate to a card game. 

"Sadly, all of the tax plans are more about politics than policy.  The sad thing is the fiscal health, the financial health of Georgia going forward is what's being played with.  And, its unfortunate when people on both side here feel like they have to trump one another in this." 

 

The Governor also wasted no time assigning responsibility for the current impasse.

"The action of the house beginning this policy was dangerous. And then, in political life, you have others feel like they have to put a higher trump card down. This is what you get. The sad fact is ... it's playing with the fiscal health of Georgia's future. And, it's sad to watch."

The Senate tax proposal calls for cutting state income tax ten percent, in a five year phased in plan, keeping about 260 millions in the pockets of working Georgians, in the first year alone. And, late week the House passed its own plan to reduce taxes about 760 million a year by eliminating the car tag tax along with the state's quarter mill homeowners property tax. 

The problem with those plans, says Perdue, is that less taxes means less revenue for the state to pay for things education, transportation and health care.

Finally, the Governor says he's puzzled why Georgia lawmakers would talk about tax cuts as if the state were run like the federal government.

Because  while the federal government may run a budget deficit, Georgia's Constitution requires that lawmakers pass a balanced budget each year. 

With Georgia's economy mirroring that of national trends, Governor Perdue has asked lawmakers to find a way to trim 245 million dollars from next year's budget.  But that may not be enough.  Perdue says he expects the state may be forced to tap into its reserve fund this year and possibly next.

HOUSE LEADERSHIP RESPONDS TO TONGUE LASHING

In a press release late Wednesday afternoon, Majority Leader Jerry Keen responded to the Governor's comments saying, the since the Governor does like the reform plan of either chamber, the Senate should sign on the the House plan to eliminate the car tag tax.

“Our proposal is a resolution, which means the governor cannot veto it.  The proposition goes straight to the ballot for the people of Georgia to decide.  The Senate’s proposal is a bill, which means it must go to the governor, giving him the opportunity to veto it, as he implied today he will do.  The only way to give the people of Georgia tax relief is for the Senate to follow the House’s lead and vote to axe the birthday tax.”

Lawmakers Blow Out Candles on Birthday Tax

Lawmakers in the state House Thursday voted to eliminate two taxes, including the so-called Birthday Tax, when buying a car.

The annual ad valorem tax, along with the state sales tax, would be replaced with a 7 percent fee whenever a car's title changes hands. The fee would be capped at $2,000.

Republican Tom Rice from Norcross says under the proposal, people will save money when buying at the dealership.

"Anybody that buys a car off the lot, is gonna gain dollars back as soon as they drive it off the lot."

Supporters say the measure would help bring in more money to the trauma-care network across the cash-strapped state. They also say it makes buying from a dealer fair, because no sales tax is collected when buyers purchase from an individual.

But that has House Minority Leader Dubose Porter from Dublin concerned. He says the fee could burden those who are already hurting.

"We're creating a brand new tax that's gonna generate a heck of a lotta new money off of working folks in this state."

If the bill does become law, the tax won't go away for current car owners until they buy another one.

Click here to listen to this story.

Lawmakers Have Packed Schedule With Two Days to Go

Wednesday marks Day 39 in this year’s legislative session. And both chambers have a packed schedule.

The big issue for House lawmakers is the transportation governance bill. The measure no longer includes the creation of a new state agency – a plan backed by Governor Sonny Perdue. Instead, legislators would have more power when it comes to managing Department of Transportation dollars.

And there’s also a measure to curb property taxes. The legislation would put a 3% cap on property assessment increases.

In the Senate, next year’s budget is the hot topic. And there's a plan to do away with both the sales tax and the so-called birthday tax on car purchases. Instead, every sale would be subject to a title fee of up to $1500. Some of that money would be set aside for trauma care.

Below is a list of the bills that are on tap for the second-to-last day of the 2009 session.

House:
SB 27 - Confederate Heritage/History Month; create; encourages observances/celebrations; provide statutory construction
SB 49 - Georgia Registered Professional Nurse Practice Act; nursing education program
requirements; revise certain provisions
SB 85 - Georgia Aviation Authority Act; create; provide for membership, governance,
operation, power, duties
SB 114 - Education; provide for transfer of students who are military dependents into a local school system
SB 128 - Motor Vehicles; option of owner; permanent license plates for boat, utility,
noncommercial cattle/livestock trailers; provide for fees
SB 133 - Health Share Volunteers in Medicine Act; provide certain compensation; health care provider; sovereign immunity protection
SB 144 - Insurance Agent License; applicant shall be appointed by an authorized insurer prior to issuance of the license; repeal requirement
SB 163 - Human Resources Commissioner; authorize to appoint a diabetes coordinator
SB 164 - State Highway System; signs and signals; height limitations; allow owners to obtain permits to remove vegetation from the viewing zones
SB 172 - Victim Compensation; provide for recovery for serious mental and emotional
trauma; change definitions; provisions
SB 178 - Education; advance funding, exceptional growth, low-wealth capital outlay grants; embed/extend a sunset date
SB 194 - State Purchasing; benefits based funding projects; revise provisions; change
membership of an oversight committee
SB 195 - Professions/Businesses; clarify applications submitted in prescribed form not necessarily written document; provisions
SB 200 - Transforming Transportation Investment Act; create State Transportation Agency; definitions; purposes; abolish State Road/Tollway Authority
SB 201 - Health; provide voluntary contributions through individual income tax returns for cancer research
SB 207 - Proceedings; admit general public to hearings in juvenile court with certain
exceptions
SB 246 - Courts; provide notice of the release of child from detention under certain
circumstances; definitions
SB 253 - Sparklers; provide a definition for the term "indoors"
SR 1 - Appropriations; provide for prioritized funding requirements regarding certain
supplementary appropriations Acts - CA
SR 153 - Education Improvement Districts; provide creation and comprehensive regulation - CA
SR 176 - James H. Chandler, Jr. Memorial Intersection; dedicate


Senate:
HB 2 updates and clarifies many existing provisions in Georgia law related to illegal immigration.
HB 16 prohibits the use of an electronic tracking device to determine the location or movement of another person without that person’s consent, with several exceptions.
HB 56 revises provisions relating to distribution of proceeds and renegotiation of distribution certifications.
HB 63 deletes the chapter governing the Redevelopment Powers Law and replaces with some existing and new language. It also adds new language regarding the Payment in Lieu of Taxes (PILOT) Restriction Act.
HB 64 specifies that a funeral director must file a death certificate within 72 hours.
HB 69 allows a physician to issue a Do Not Resuscitate (DNR) order without the concurrence of another physician so long as there is oral or written consent from an authorized health care agent operating under a durable power of attorney or pursuant to an advance directive.
HB 86 allows that absentee ballots must be counted by precinct, and separate returns must be made showing the results by each precinct.
HB 101 allows that a transit agency may authorize the placement, erection, and maintenance of commercial advertisements on or in transit vehicles or facilities owned or operated by that transit agency.
HB 119 makes and provides appropriations for the State Fiscal Year beginning July 1, 2009, and ending June 30, 2010.
HB 120 authorizes the annual sales tax holiday for school supplies and energy efficient appliances.
HB 141 is the annual housekeeping bill for the Department of Banking and Finance (the Department), which addresses the regulation of financial institutions and commercial paper in Georgia.
HB 147 relates to proceedings for forfeiture of bonds or recognizances, so as to relieve a surety from liability under certain circumstances.
HB 169 provides a notice of new or revised flood elevations to Georgia property owners affected.
HB 173 permits non-compete and non-solicitation clauses in employment and business contracts.
HB 184 directs the Department of Human Resources to prepare information for public dissemination on the department’s website describing the importance of obtaining a blood test for sickle cell disease.
HB 186 extends the income tax credit for teleworking through FY2012. It also increases the available credit to $2.5 million for Fiscal Years 2011 and 2012.
HB 189 revises the applicability of the Georgia Arbitration Code because the General Assembly finds that entities need to cooperate with each other to ensure parents with better options on child support obligations.
HB 217 sets forth the requirements for influenza vaccine protocol agreements between physicians and pharmacists or nurses.
HB 221 amends two statutes to require that writs of mandamus and writs of prohibition to compel the removal of a judge cannot be issued if a motion to recuse has not been filed first, nor where a motion to recuse has been denied after assignment to a different judge.
HB 243 provides conditions of employment of certificated personnel in elementary and secondary education for salary increase for persons receiving certification from the National Board for Professional Teaching Standards.
HB 258: Driver's license; minor of disabled guardian; restricted learner's permit; provisions
HB 278 allows local school system to waive the expenditure control requirements under the Quality Basic Education Act
HB 304 revises the rights of county appraisers and tax assessors and authorized agents of the county to go onto property to conduct official business.
HB 310 provides that the statewide recycling program for state agencies.
HB 318 defines several terms relating to the place of return for tax purposes of motor vehicles and mobile homes.
HB 321 relates to "group accident and sickness insurance" defined and "true association" defined, so as to provide for changes in the definitions of the terms.
HB 344 Probation; Department of Corrections; collections of additional fees; authorize
HB 349 Sales and use tax exemption; new construction of civil rights museum; provide
HB 371 Public Retirement Systems Investment Authority Law; increase in allowable fund investment; provisions
HB 379 Income tax; certain real estate investment trusts; disallow expenses paid
HB 388 The Option of Adoption Act
HB 395 Sales and use tax; personal property; construction of certain symphony halls; extend exemption
HB 406 Service delivery strategies; certain drinking water projects; funding limitation; provide exemption
HB 438 Income tax; tax credits for qualified jobs and projects; comprehensive revision
HB 439 Income tax; credits; business enterprises
HB 453 Superior courts; sunset dates for property filing fees; change
HB 455 Elementary and secondary education; annual contracts for certified personnel; extend certain deadlines
HB 473 Community Affairs, Department of; grants for clean energy property
HB 477 Retirement and pensions; creditable service; application requirement
HB 480 Taxation of motor vehicles; comprehensive revision
HB 483 Ad valorem tax; modernization and revisions of certain provisions
HB 485 Income tax; alternative credits for base year port traffic
HB 487 Superior Court Clerks' Retirement Fund of Georgia; employee contribution
HB 488 Superior Court Clerks' Retirement Fund of Georgia; eligibility criteria for creditable service
HB 492 Time-share projects and programs; private residence clubs
HB 493 Georgia Youth Conservation Corps; creation and purposes of the corps;
HB 509 Professions and businesses; regulation; change provisions.
HB 514 Judicial system; assignment of senior judges;
HB 528 Specialized land transactions; developers provide audits to homeowners
HB 549 Driver Services, Department of; information for purposes of creating juror lists
HB 568 Public Service Commission; members shall represent entire state
HB 575 Kidnapping; change certain provisions
HB 608 Time-share projects; estate shall include certain interests
HB 639 Special license plates; protect wild dolphins in Georgia
HR 161 White, Mr. John Jerome; compensate
HR 336 CPL Jonathan Ryan Ayers Memorial Interchange; dedicate

Rice: Car 'Birthday Tax' Bill Good For Dealers, Buyers

Backers of a House plan passed on Thursday to cancel the annual so-called car birthday tax, say a majority of Georgians support them.

H.B. 480 replaces the current car registration tax with a one-time, seven-percent title fee.

The fees would help fund the state's ailing trauma care system.

Republican House Motor Vehicles Chairman Tom Rice of Norcross says the bill's a good deal for car buyers, and would also help revive a sluggish car market:

"There are about 1.8 - 1 point 8.5 million transactions in 2008, cars and other vehicles, so we think that obviously a goodly number of those should be supportive of this legislation because, either one way or another, their not going to pay ad valorem, or not pay sales tax - or not pay both."

Responding to comments by Governor Sonny Perdue calling the bill, "convoluted," Rice says the legislation will be tweaked before it goes before the Senate in the next few weeks.

Click here for more GPB News coverage about H.B. 480.

No Tax Reform, No Transportation or Trauma Funds

The 2008 legislative session ended last night with name calling and no tax reform.
It was in the 11th our, when it became clear that the State Senate would not give in to House demands for a constitutional amendment to cut the ad valorem tax on cars . House speaker Glenn Richardson had tried all session to get some kind of tax cut to voters. He has started with the so called GREAT Plan that would eliminate all property taxes in lieu of expanded sales taxes. When the only measure left of his original idea did not make it through the House/Senate conference committee he blamed the failure on the Lieutenant governor, a fellow republican.

"It's called the Cagle birthday tax, and every time they pay it they can thank Casey Cagle for leaving it on there," the speaker told his colleagues.

He urged Georgians to flood his office with phone calls and elect a new Lieutenant Governor. For his part Cagle took the comments in stride.

"What's most unfortunate is the name calling and to have a person over there attack your caracter, that's sad, but life goes on."

Cagle defended his position saying he wanted to cut income taxes and the tag tax cut would have taken too much money out of local government funds.

Democrats looked at the in-party fighting with an eye on the November elections.

"What you campaign on is the infighting. The result of the infighting is that the major issues of the state did not get addressed and resolved," said house minority leader Dubose Porter.

The State senate failed to approve a constitutional amendment for a one cent regional transportation tax.,The measure was meant to raise money to ease traffic congrestion, especially in Metro Atlanta. It fell 3 votes short of passing in the Senate.

A ten dollar fee on cars to fund trauma care also failed.
House Majority Leader Jerry Keen said he's not too concerned over trauma care not getting funded this time. He said there is $59 million dollars in the suplemental budget, which should hold the system over until next January. That's when lawmakers could try to fix it again.

Some bills did make it this session. HB 89, the famed parking lot bill made it through but with a lot of alterations. For one, property rights supersede gun rights. The small percentage of Georgians who hold a concealed weapons permint would be allowed to carry guns into some restaurants, but they can't drink. Churches and public sporting events are still off limits.

In some ways the session ended just as it began, with water. The first measure passed by both chambers was the Statewide water plan, the last bill to pass was about reservoirs. That bill enables the construction of reservoirs, but not everyone is happy. Conservationists wanted to add language that prohibits inner- basin transfers. They worry that Metro Atlanta could one day take water from the Savannah or other rivers. But that language did not make it into the bill.

Lawmakers did do what they are constitutionally required to do in 40 days, pass a budget. They approved a 21.2 billion dollar spending plan for the fiscal year which starts July 1. It includes a 2 and half percent pay raise for teachers and state employees.

Crossover Day Winners

A controversial measure that would treat an embryo as a person passed the senate yesterday. The bill would prohibit Georgia embryos from being used for stem cell research. It would also treat an embryo legally as a child.

And the state House passed a bill that allows for the adoption of an embryo. Supporters say the bill is needed to avoid lawsuits over disputed adopted embryos, but opponents like say it could lead to the recognition of an embryo as a person.

Other bills that passed yesterday include

A plan to eliminate the so-called birthday tax on cars the measure would instead require car owners to pay a one-time fee of up to $2,000 or seven percent of the car’s value.
Teens caught using a cell phone while they drive could get the same punishment as drivers caught with an open container.

A salary bonus for teachers with national board certification would continue for at least this year under a house bill that passed. But it would leave the program open to changes in the future.

Businesses would get a $500 credit toward the unemployment tax and a $2,400 income tax credit for each new employee they put to work and retain for at least two years

And if you buy a house in the next six months, you could get a $3600 dollar tax credit under a bill that passed the house. Lawmakers hope to reduce Georgia’s growing inventory of unsold homes.

Lawmakers Ready for Long Final Day of Session

The state Capitol will be open for extended hours today, as it is Day-40, the final scheduled day of the 2009 General Assembly session. Required to get done is a stamp of approval for the state budget. The $18.6 billion spending plan was in front of committee Thursday, with an ultimate compromise still being worked-out.

Other pieces of legislation at the Capitol may, or may not make it out of this Day-40: Transportation has been hotly-debated, including the issue of governance over transportation, and how to fund future projects in Georgia--a statewide or regional approach to financing. Of other issues to watch today--will a proposed change to the homestead exemption make it through? ; what will happen by day’s end concerning the proposed replacement of the annual "birthday tax" on vehicles with a one-time title fee?

Stay with GPB for all the latest throughout the day on action from the Capitol, as our reporters will be at the Gold Dome until midnight. You can follow details with our Georgia News blog by logging on to gpb.org. Also follow us on Twitter where we are GPB news. Of course, a roundup of the latest on the GPB Radio network this afternoon during news in All Things Considered, and Georgia Gazette at 6pm, 7pm in Athens.