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.