Senate Passes GA Taxpayer Relief Act

GA State Senate Leader - Chip Rogers ^ | April 17, 2010 | NewLand

[NewLand]

ATLANTA (April 14, 2010) – On the eve of national tax day, the Georgia General Assembly has passed major tax relief, HB 1055 called by some the “Georgia Taxpayer Relief Act of 2010”. The measure eliminates retirement income tax on Georgia seniors and eliminates the state property tax. Senate Majority Leader Chip Rogers (R-Woodstock) lead the efforts in the Senate to help add the tax elimination measures to HB 1055.

“This was a great day for Georgia as the General Assembly has moved to completely eliminate two separate taxes. The elimination of the state property tax is a true tax cut for every Georgian who owns property or a vehicle. We coupled this with the elimination of retirement income tax on Georgia senior citizens,” said Rogers. “Georgians need a financial break during these tough economic times. The General Assembly delivered real relief today by actually eliminating two forms of taxation. It was a good day for Georgia.”

The Act eliminates by phase-out the taxes on senior retirement income and the state property tax. Once fully enacted the tax cut is expected to be more than $250 Million per year. Another major component of the act reduces taxpayer subsidizing services for others by adjusting outdated and antiquated state fees and fines. When a fee does not cover the cost of the service provided, Georgia taxpayers subsidize the activities of specific individuals or businesses by paying the remaining cost. By addressing this issue now, users will rightfully pay the bulk of the cost of services provided.

Finally, at the request of every hospital in Georgia the Act creates a 1.45 percent hospital fee to fund the state Indigent Care Trust Fund. This funding formula is phased-out in three years. All funds raised from hospitals will go straight into the Indigent Care Trust Fund, which will be used to provide medical care for Georgia’s children and the poor. No revenue from the hospital fee will go into the state General Fund. The requested fee fund is expected to prevent major cuts to Medicaid funding and help keep open at least thirty Georgia hospitals that were rumored to close without additional funding.

Overall, the Georgia Taxpayer Relief Act of 2010 will provide relief for almost every taxpayer in Georgia while making significant progress in alleviating the state budget crisis.

For more information on the Act and other legislation, go to www.senate.ga.gov.

[NewLand]

Georgia!

[cycle of discernment]

Permanent elimination of state property tax?

When does this begin? This was not ballyhooed in the news particularly.

[johniegrad]

Once fully enacted the tax cut is expected to be more than $250 Million per year.

There is no way that number is correct. It HAS to be greater than that if all property taxes are eliminated.

[johniegrad]

Oh, by the way, good on Georgia.

I suspect more people will be moving there and will stimulate their economy.

[IllumiNaughtyByNature]

I am having difficulty understanding how eliminating property AND state income tax can be accomplished? Living in TX, we pay no state income tax but "choose" our property tax based on the size of the house we buy.

Can someone enlighten me?

[phockthis]

It seems to be only for seniors, not everyone...

[johniegrad]

There are obviously other sources of taxation that support public schools. But any tax law can be rescinded either temporarily or permanently. Now, getting the federal government to understand the positive outcomes of reducing income taxes, that's another matter.

As you know, we have not always have a federal income tax in America.

[Ladysmith]

The way it reads on here, the elimination of the state property tax is for everyone.

[NewLand]

I am having difficulty understanding how eliminating property AND state income tax can be accomplished?

This is not an elimination of the state income tax for everyone, only for senior's 'retirement income'.

The property tax elimination is for everyone who owns a house or car, boat, etc.

According to the release, these taxes will be 'phased-out' but I don't know the time frame yet.

[cycle of discernment]

Saw this item from March 26

ATLANTA (AP) — Senate Democrats managed to thwart an attempt to establish a constitutional amendment that would eliminate the state’s portion of the property tax, but lawmakers passed a bill in favor of the effort.

Senate Republicans passed the bill version in one of the last votes of Crossover Day, the day bills must pass a chamber of the Legislature to remain active for the current session.

The constitutional amendment failed 31-15, but the bill was passed 31-14. Sen. Bill Heath of Bremen, the bill’s sponsor, says the state’s homeowners need financial relief in the down economy, which is also crippling Georgia’s budget.

Georgia currently levies an ad valorem tax on all property as a component of local property tax bills. The state millage rate is a quarter mill. Removing the state ad valorem tax will not affect counties, cities or school funding. The tax would be banned once state reserve funds reach $500 million.
(Copyright 2010 by The Associated Press. All Rights Reserved.)

[eeevil conservative]

have you read the Bill?

my contacts tell me

#1) this so-called tax cut is actually wrapped into another bill that is actually levies a 1.45 percent tax on "hospitals" that will be passed along to patients.

#2) the $250 Million tax "cut"-- It won't take effect until 2012 if there is enough state money to pay for it.

#3) Seventy-five pages of new taxes and tax hikes sold as "user fees".... #4) these fees include: a) more than 100 percent fee hike on some equipment license, b)home day care operators, and c)a tax to have your day in court

#5) there is also House resolution for a $10 tax on car tag fees to fund a statewide trauma network...this is a result of heavy lobbying from....wait for it.......HOSPITALS! These same lawmakers had been talking about slashing the annual car tax, but instead they have come up with this!

Now...I LOVE THIS PART! the above states the following

Finally, at the request of every hospital in Georgia the Act creates a 1.45 percent hospital fee to fund the state Indigent Care Trust Fund.

WOW! I have never been more shocked and disgusted with the folks I know under the GA dome than I have been this past week....

Folks, the hospitals did not REQUEST this tax fee...they were given an "either, or" scenario- and this tax fee was the either, or the or.

Does it not seem a little fishy that EVERY hospital in the state asks for a tax fee? Oh-- and we are going to pocket $10 per car tag in the state to give to a trauma network?

And why are we raising taxes on anyone for anything to fund a TRUSTFUND?

Most of these "Trustfunds" are created out of lawsuits...the punitive damages that go to the state. They make this "trustfund," then the Governor appoints a bunch of friends to sit on the board of these little piles of money. These board members don't get paid- but all their expenses are paid when they drive to a meeting. You know- food, hotel, travel, etc....

Where is it in our State Constitution that we, the tax payers are supposed to be funding TRUSTFUNDS?

I am sick to my stomach over this.

My sources(3 separate source- and they are backed up by an AJC Article linked below) also tell me that Casey Cagle and company told Republicans that if they did not vote for the hospital tax hike, that they would lose their positions (committee chairs)....

I recommend folks go read the link below:

AJC Article

[Sprite518]

Yes! A great step in the right direction!

[beaureguard]

I think it more accurately is the state portion of property tax. County portion will still be assessed - schools, etc., so property tax won’t entirely be eliminated.

[johniegrad]

That makes sense. Thanks for that clarification.

[NewLand]

Hi Sherri,

Here is what Chip wrote back to me about that article...added AGR and LOTR as FYI.

Chip Rogers April 23 at 4:16pm

Dear Mark,

Thanks for the message.

The tax cut passed in HB 1055 is one of the largest in state history. It eliminates both the State portion of the property tax and the senior retirement income tax. During the next 5 years the bill is calculated to cut $387 Million. After that, it is a permanent $250 Million tax cut.

There is no trigger as the article suggests.

The tax cut begins on the first possible day we could make it - January 1 of 2012.

The 2011 budget has already passed which means we could only start the tax elimination on the next possible January 1st date, since all income tax and property tax changes must start on January 1st.

The fees included in the bill were only to bring them up to the cost provided so that taxpayers were not subsidizing other people using services.

For example, the fee to inspect airports is currently $10. The cost for inspecting the average airport is about $250. Therefore, we brought the fee up to the actual cost.

The Hospital Fee is for 3 years and not a single dollar goes into the state treasury. It all goes into the Indigent Care Trust Fund to be returned back to the Hospitals. Every Hospital organization in Georgia did request this method instead of Medicaid funding taking the 19% cut that all other agencies across state government were taking.

Again, once everything is totaled the amount is a $387 Million tax cut during the next five years and about $250 Million every year after that.

I hope this helps answer some questions. Please let me know what else I can answer.