What is Richardson up to?
ATLANTA --- House Speaker Glenn Richardson unveiled a new tax plan Tuesday to eliminate the car-tag tax over two years, limit property assessments to modest annual inflationary increases, restrict the growth of local spending to the inflation rate and impose a $10 fee per vehicle to help fund a statewide trauma-care network.
His plan replaces an earlier proposal that had called for replacing school property taxes on homeowners with an expanded consumer sales tax on services and food.
Mr. Richardson, R-Hiram, presented the idea first to the House GOP Caucus, then took it to the House Rules Committee, which scheduled the package for debate by the full House today.
It cleared the Rules Committee on a loud voice vote of approval.
The previous version of Mr. Richardson's plan, nicknamed the GREAT Plan, was a package of two constitutional amendments and one statutory change that would have eliminated the car-tag tax, shifted the school property tax on homesteads to an expanded sales tax, eliminated unrestrained property reassessments and limited the growth of local government spending.
Last week, Democrats announced they would oppose the package, and Mr. Richardson needed Democratic support for it to reach the super-majority 120 votes to pass.
As Mr. Richardson outlined the proposal Tuesday morning, half of the tag tax will be eliminated in 2010 at a cost of $329.5 million. The tax will be fully eliminated in 2011 at a total cost of $672 million.
The vast majority of that money goes to local governments. Mr. Richardson said the state would make every government whole and vowed no entity would lose a penny.
There would be no new revenue stream to help the state government offset the huge cost. Legislators said Mr. Richardson is counting on normal increases in state revenues.
County tax assessors could increase residential property up to 2 percent a year and nonresidential up to 3 percent a year.
The caps on local revenue growth would be figured on a 2008 base plus the governmental inflation rate, which has averaged 5.05 percent over the past five years.
LOCAL REACTION
HOUSE MAJORITY WHIP BARRY FLEMING, R-HARLEM: "It's a small step in the right direction, and usually things happen incrementally around here."
REP. HARDIE DAVIS, D-AUGUSTA: "(My vote on the bill) will be based on what I hear from local folks. There is a potential for significant impact on the local level. Obviously, we're extremely concerned about where the money for local education is going to come from if we implement this."
Comments
What is Richardson up to?
So, let me get this straight...you mean to say that we eliminate the car tag tax, increase property tax in which we were suppose to eliminate all together due to the sales tax increase and pay for this HOW?? Increasing our taxes without jobs is not exactly in the best interest of the people, some are all ready feeling the pinch in their lower SSN checks and you will have to remove some money from welfare to deal with school issues.
I am for limiting property tax to inflation rates - that seems fair. I pay way more than that now.
Let everybody pay the same with a fair sales tax.
implement the fair tax plan!
Does anyone remember the $5 motorcycle tag tax that was suppose to pay for motorcycle safety courses? The course is $250 per person now. These good ideas eventually evolve into something else.
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