Friday, March 19, 2010

Georgia Lawmakers Pledge Tax Reforms

By Dave Williams
Atlanta Business Chronicle
March 18, 2010

Gov. Sonny Perdue and former Gov. Zell Miller could take part in an effort to overhaul Georgia’s outdated tax laws, members of the General Assembly’s Republican leadership announced Thursday.

Legislation introduced in the state House of Representatives calls for Perdue and Miller to be among 11 members of a newly created 2010 Special Council on Tax Reform and Fairness for Georgians.

The council, which also would include business leaders, economists and appointees of the lieutenant governor and speaker of the House, would examine the state’s revenue systems and recommend reforms in time for next winter’s legislative session.

The inability of Georgia’s revenue structure to adjust to declining tax collections resulting from the current recession shows the need for change, Speaker David Ralston told reporters during a news conference held by House and Senate GOP leaders.

More than a year of plunging revenues are forcing lawmakers to swallow deep spending cuts that are hurting the state’s ability to deliver core services, including education and health care.

“Georgians expect to build a tax code that will withstand future challenges,” said Ralston, R-Blue Ridge.

“We have a broken property tax system, a personal income tax system that is clearly tied to unemployment, a corporate income tax that discourages companies from coming to Georgia and a sales tax system that exempts more than it taxes,” added Senate Majority Leader Chip Rogers, R-Woodstock.

Previous attempts at tax reform in the General Assembly have fallen flat over the years, most recently former Speaker Glenn Richardson’s failed bid to eliminate state property taxes.

But the new bill includes provisions aimed at requiring an up-or-down vote on the council’s recommendations.

“It will avoid having something thrown in the trashcan like we’ve had with so many study committees,” said Lt. Gov. Casey Cagle, who presides over the Senate.

The bill would establish a joint House-Senate committee that would be required to take up the new council’s recommendations during the 2011 session.

http://atlanta.bizjournals.com/atlanta/stories/2010/03/15/daily54.html

© 2010 American City Business Journals, Inc.

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