Tax Reform: It’s Back. Boom.

As the AJC alluded to last week and Jason mentioned in morning reads, the Joint Special Committee On Tax Reform will meet today at 11am to have a hearing on Tax Reform. Another meeting is expected tomorrow to vote the bill out of committee and onto the floor of both chambers.

While we’re waiting for the first public glimpse, some highlights in the AJC article include:

1) A new tag transfer fee to be paid at the time any car is purchased & titled in Georgia of roughly 7%. This will replace sales tax on new cars, and be a new tax on used cars sold by private individuals – the holy grail payoff for car dealers.
2) Elimination of the sales tax on energy used in manufacturing.
3) A state income tax cut
4) Extension of sales taxes to internet purchases
5) Creation of sales tax holidays as has been used occasionally in the past

We’ll have to see details, as well as whether or not a fiscal note is offered to determine exact impacts. At first blush, my question is this: How does this affect local governments with respect to axing birthday tag taxes in exchange for a state collected fee? Tag taxes primarily fund local governments. “Fees”, as we well know, tend to stay at the state level. Expect the opposition to this bill to start here.

26 comments

  1. saltycracker says:

    Do they really think retail stores don’t know how to plan for scheduled tax holidays?
    It is a great day for them (winners) and not the best day for the consumer or treasury (loosers).

  2. CobbGOPer says:

    It’s a worthless plan that simply shifts tax reductions into new or raised user fees elsewhere. Shell game, this is one.

  3. Three Jack says:

    Again they put some hodge podge of special targeted tax adjustments out at the last minute instead of doing what they were sent there to do (and have been promising to do for 10 years), TAX OVERHAUL! What a waste of 40+ days and all the cost to taxpayers. At least downtown restaurants and bars benefit from these folks being in session, the rest of us not so much.

        • CobbGOPer says:

          All it means is that every private used car transaction from now on will be cash only and severely under-reported to the state revenue dept.

            • Right, which is why if it’s based on the bill of sale price, you simply put down that you paid $2k for that 2010 Toyota Camry. What you actually paid and what is on the bill of sale would be two different things. There are ways to avoid taxes. If people can, they typically will.

  4. Painterman says:

    How many of you have read the bill and not just doing knee jerk to various reports about what might be in it?

    • Charlie says:

      As I mentioned above, the bill wasn’t available for public viewing at the time this was posted.

      And it looks like it will be for about 24 hours before a vote.

      That’s barely enough time for even a knee jerk.

  5. debbie0040 says:

    Cannot support the bill unless they take out E-Fairness. I think it is un-Constitutional the way a physical nexus is re-defined.

    Leadership is playing their Nancy Pelosi card in dropping the bill one day and asking for a vote the next day before there is ample time to study it. It is like Pelosi saying to pass the healthcare bill and then you can find out what is in it… Why didn’t this bill drop last week?

    • CobbGOPer says:

      “Why didn’t this bill drop last week?”

      For the precise reason that they don’t want the public to have a lot of time to pick this bill apart for the shoddy piece of legislation it is…

    • UpHere says:

      Oh for Pete’s sake. If you are just upset that you were not part of the process, just say that. Being dramatic with “Pelosi” like language will get you no where.

      These ideas for tax reform have been around since Glenn Richardson’s GREAT plan and Larry O’Neal has been working on it for two years. If you had ideas or things you did not like, did you speak to the Majority Leader, Chair of Ways & Means or anyone else on the Revenue council?

    • CobbGOPer says:

      “It is truly amazing to watch these folks commit repeated acts of stupidity with such a careless attitude toward the folks they harm…almost sociopathic.”

      Who’s going to hold them accountable? They rarely get challenged in elections (once they’ve secured incumbency, that is), and the state ethics commission is toothless. When you’ve only got one person to vote for, it’s impossible to vote them out. But then when you try to challenge them, you have to face all the hoarded campaign cash too. It’s an uphill climb that deters the vast majority of people who should be running for office.

      • Three Jack says:

        CobbGOPer, one can only hope that their actions during this session will lead to more people paying attention. In the not to distant future, every online purchase will be taxed, seniors will find an income cap imposed on them and a new car will be purchased with the 7% title tax standing out on the invoice like an ethical politician under the Gold Dome. If hitting us in the wallets with such blatant disregard for the current economic climate doesn’t create a firestorm, nothing will.

  6. Calypso says:

    It ain’t tax reform.

    It ain’t tax overhaul.

    It’s tax band-aids for those who whine the loudest about their particular boo-boo.

  7. debbie0040 says:

    Tea Parties are already getting up in arms over this. This was sent out from a tea party in South Georgia.

    Sent: Tuesday, March 20, 2012 10:23 AM
    Subject: new tax bill rushed to a vote today, act NOW

    The elected gang in Atlanta, who call themselves Republicans, dropped a new tax bill in the Georgia General Assembly on Monday, and they want it voted on Tuesday – yes that is TODAY. Read about it below and contact your representatives right now! They think we’re stupid folks, they think we’re going to take it sitting down. It’s up to you to prove them wrong.

    Read about it here: http://blogs.ajc.com/political-insider-jim-galloway/2012/03/20/your-copy-of-the-tax-reform-fiscal-note-is-here/?cxntfid=blogs_political_insider_jim_galloway

    Read the bill here: http://www.house.ga.gov/Documents/HB386-LC343477.pdf

    Leaders, replace your delegation contact information here:

    GA Senator Tim Golden, Dist. 8
    404-656-7580; FAX 404-651-6767

    local office 229-293-0202; FAX 229-241-7732

    229-241-1284 home

    [email protected]

    Rep. Amy Carter, Dist. 175

    404-651-7737 Atlanta office

    229-245-2733 local office

    229-245-1092 home

    229-245-8890 fax

    [email protected]

    Rep. Ellis Black, Dist. 174

    404-656-0287 Atlanta office

    229-251-0303 cell

    229-559-1592 fax

    [email protected]

    Rep. Jason Shaw, Dist. 176

    404-656-0213 Atlanta office

    229-482-3505 local office.

    229-482-8043 fax

    [email protected]

  8. ted in bed says:

    This is a horrible deal for regular Georgians. We seem to end up paying more for internet sales and cars while the Republicans cut the taxes of their buddies (Delta, Georgia Power, Big Ag, Construction).

    • bowersville says:

      “We…end up paying more [individual Georgians]…while Republicans cut taxes for their buddies (Delta, Georgia, Big Ag, Construction).

      I knew it when Gingrich handily took SC in a Republican primary running a populist campaign. Some folks seem to be Democrats and don’t even know it. If Obama comes through the south he may not use the exact words “Republicans cut taxes on Delta, Georgia Power, etc. and raised ’em on individual Georgians.” But I bet he talks about corporate welfare and the Republicans will respond with class envy. But remember, corporations are people too.

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