The State House today passed the 10% cut in the income tax that was pushed by Lt. Gov. Casey Cagle…but that’s not all, they also tacked the repeal of the car ad valorem tax back on to the legislation. The two proposal combined cut taxes nearly $2 billion:
On HR 1246, Richardson’s original tax relief plan – from which the Senate had deleted the provision to ax the tag tax – the House amended the Senate bill to restore that tax cut but to limit it only to those who can prove they are legal residents. That reduces the price tag from $700 million to $500 million. The measure also will no longer include the governor’s proposal to eliminate the state’s quarter-mill property tax.
The measure is a constitutional amendment that would need voter ratification. It includes the another provision which limits property reassessments to 2008 values except for increases of up to 2 percent for residential property and up to 3 percent for commercial property. Both the Speaker’s bill and the Senate bill included such a freeze, although the Senate version allowed slightly higher increases.
On HB 1244, the House-passed bill which the Senate used for its proposal to cut income tax rates by 10 percent, the House moved the effective date forward from 2008 to 2011.
“I ask you to join me in putting this squarely where it needs to be and let’s break this logjam and give the people of the state of Georgia much-needed tax reform,” he said.
There is no word whether the restrictions on state spending that were inserted in the proposal in the Senate are still there.