Foresters, retailers want more in tax reform plan

ATLANTA --- Foresters and retailers tried to convince legislators of the need for a broader tax reform package than the one offered by House Speaker Glenn Richardson, R-Hiram, as hearings on his measure wrapped up.

Meanwhile, some supporters of the plan pushed back at the criticisms of the proposal.

Mr. Richardson, an attorney, was scheduled to defend the bill during the Wednesday hearing but was unable to attend because of commitments in court.

Several business interests, though, showed up at the hearings to press their case that the proposal offered could provide an economic boon to the state if only it also attended to their needs.

The current legislation would replace residential property taxes used to fund local schools with a broader statewide sales tax that would cover food and extend to services such as attorney's fees and lawn care.

But John Heavener, the president of the Georgia Retail Association, said the state should get rid of the property tax on business inventory.

"We see taxing (inventory) as an eroding economic government activity," Mr. Heavener said.

He said some businesses had decided to move out of the state or open warehouses in other states instead of keeping their inventory in Georgia, where it is subject to the inventory tax.

Mr. Heavener said doing away with the tax could actually boost ports by persuading more businesses to bring goods into the country through Georgia.

Foresters, meanwhile, asked the state to provide more relief for the timber industry.

"I'm a third-generation forest land owner, and will likely be the last," said Blake Sullivan, a forester. "Georgia's (property) tax policy is driving a stake in the heart of forestry as we speak."

As with Tuesday's hearings, current and former local government officials denounced the plan. City and county officials are concerned that doing away with the education property tax is the first step to getting rid of all local property taxes.

"This has to be done slowly, and it has to be done carefully," said Julian Bowen, a former chairman of the Forsyth County Commission.