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CAPITOL RETAIL REPORT

  

December 11 , 2009


                                          

The Capitol Retail Report is your link to what's happening in Georgia - those issues which may have an impact on your bottom line.


                                                                         "When Retail Works, Georgia Works"

In This Newsletter:
New Address and Telephone Numbers
ENERGY STAR Rebate Webinar
What a Difference a Week Makes
Tommy McFarland Honored
State Revenues Plummet
Billion Dollar Payout
Important Updates From DOR
Shrinkage Up
Save 10% on LP Services
Quote to Ponder




  New Address and Telephone Numbers

Effective December 29, 2009, the Georgia Retail Association will have a new address and telephone numbers. Please make the changes in your records.

  Georgia Retail Association
  7165 Havenridge Way
  McDonough, GA 30253-8510
  678-814-4176
  678-814-4178 (fax)
  678-523-1765 (cell)
  www.georgiaretail.org


ENERGY STAR Appliance Rebate Program Webinar

Please plan to participate in the ENERGY STAR Appliance webinar by reserving your Webinar seat now at: https://www1.gotomeeting.com/register/459703185

The Georgia Environmental Facilities Authority will be hosting a webinar for retailers to review the ENERGY STAR appliance rebate program. GEFA will review the program delivery process, guidelines and eligible products as well as demo the rebate website.

The program will launch on February 12, 2010.

Title: Georgia ENERGY STAR Appliance Rebate Program

Date: Tuesday, December 15, 2009

Time: 2:00 PM - 3:30 PM EST

After registering you will receive a confirmation email containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista

Macintosh®-based attendees
Required: Mac OS® X 10.4 (Tiger®) or newer

What a Difference a Week Makes


In the topsy-turvy world of Georgia's Republican politics, the saga surrounding the leadership of the Georgia House of Representatives took yet another turn this week when Speaker Pro Tem Mark Burkhalter announced that he will not be a candidate for Speaker of the House. Then on Wednesday, House Majority Leader Jerry Keen, put an end to speculation that he would seek the post, saying, "It's just not a job that I ever wanted."

A surprise also came this week when Ways and Means Committee Chair Larry O'Neal (above right) announced that he will run for speaker. O'Neal e-mailed his House colleagues Wednesday to tell them he planned to seek the speakership.

Another announced candidate for the Speaker's position is David Ralston (below right), who was unsuccessful in his bid to unseat Glenn Richardson last session. Before that he had served as Chairman of the Judiciary Committee.

State Representative John Lunsford from McDonough (below left), has announced his intention to seek the office as well. Earlier he had announced for the Majority Whip position saying, "It is with great humility that I enter the race for majority whip. While there are many talented people in our caucus who could do this job, I feel that my business background and legislative experience make me uniquely qualified."

Last session John (left) carried GRA legislation that would have voided the Employee Free Choice Act in Georgia. The bill, needing a 2/3 vote to pass fell just short of passage, with Kevin Levitas being the sole House Democrat voting in favor of the bill.

So, all of the last week's speculation about Jerry Keen moving up to the speaker's post proved to be just that - speculation.

Another surprise also occurred when Representative Rich Golick (right), who chairs the Non-Civil Judiciary Committee, announced his candidacy for House Speaker Pro Tem, the number two position in the House, and the one that has been held by Mark Burkhalter.


Earlier this fall Representative Golick agreed to carry our Smash and Grab legislation, so should he be elected as Speaker Pro Temp, it would be a real positive for GRA.

Jan Jones, House Majority Whip (left), has also been mentioned as a replacement for Mark Burkhalter as Speaker Pro Tempore. If elected, Jan Jones would be the first female Speaker Pro Tempore. She has been an effective whip for the Republican majority in the House and used to providing leadership, at least for the Republican majority.

The vote on the House leadership is set for Thursday, December 17, 2009.


Tommy McFarland Honored by GRA


On Tuesday, December 8, Tommy McFarland was presented with Honorary Life Membership in the Georgia Retail Association. Until recently Tommy had been the owner and operator of McFarland's IGA grocery store in Canton, Georgia.

Tommy has served as a volunteer for GRA since the 1990's, most recently serving as Chair of the Board of Directors from 2005 to 2007.

Tommy has been a part of GRA delegations visiting Capitol Hill and has worked vigorously over the years to make the United States and Georgia better for retail businesses.



Tommy McFarland (left) accepts Life Membership Plaque from Board Chair Bill Bregar

State Revenues Plummet Again in November


The Governor's office announced Wednesday that state revenues continued their free fall in November, with state tax collections falling by 16 percent over November 2008. For the fiscal year that began July 1, revenue collections are off 15.4 percent compared to the same five-month period in 2009. In November, collections of individual income taxes fell by 16.7 percent compared to the same month in 2008, while sales tax collections fell 9 percent.

Retailers to Receive $1 Billion from Visa/MasterCard Lawsuit this Week


More than half a million retailers should have begun receiving checks this week as the result of a federal judge's approval of an early payout of funds remaining from the 2003 settlement of a lawsuit brought against Visa and MasterCard's debit card practices.

It is hoped that the more than $1 billion in funds will give many struggling retailers an influx of cash at a time when slow sales and the ongoing credit crunch have left some short of operating cash needed to fully stock shelves and staff stores during the important holiday season.

The class-action lawsuit, brought by the National Retail Federation and about 20 of the nation's largest retailers in 1996, was settled in 2003 for $3.1 billion.

Visa and MasterCard were allowed to pay the damages on an installment plan scheduled to run through the end of 2012, and have paid about $1.85 billion so far. Most of the funds received have been distributed to merchants represented in the suit, but retailers had expected to wait almost three more years to receive the remainder.

Rather than continue to make yearly installments, Visa and MasterCard agreed this fall to pay $1.1 billion all at once. The agreement means retailers will receive slightly less than originally agreed on, but the money will come in time to help with the current economic situation.

U.S. District Court Judge John Gleeson initially approved the plan on November 6, but distribution was delayed by a court challenge regarding interest payments. The challenge was rejected.

The payments will go to about 635,000 merchants, with each one's share based on their volume of signature debit card transactions during the period covered by the lawsuit.

Retailers can see details about the distribution plan on the lawsuit at: website.http://nrf.com/modules.php?name=News&op=viewlive&sp_id=852

Georgia Department of Revenue Important Updates

The Georgia Department of Revenue (DOR) has announced a number of policy updates. They may affect how you file returns, make payments, submit corresponding documentation, and how penalty and interest is applied for withholding taxes. DOR claims that these changes were made to make processing of payments and returns more efficient.

Please check these updates to see if they apply to you. For more information please visit the DOR website at www.dor.ga.gov

Below are the areas where changes apply and effective December 2009.


• P&I for Non-Resident Distributions
• Application of Withholding Penalty & Interest
• G1003
Electronic Media Submission
Georgia House Bill 334 - Electronic threshold lowers and adds 10% filing penalty.
Georgia House Bill 485 (Protest a Refund) - under this bill, taxpayers may protest any claim for refund that is denied.
Special Filer - filing periods for special filers will be standardized effective January 1, 2010
Standard Monthly Filing Period
• GTC online functionality
Register New Business Online
• Register New Sales & Use Tax Location
• Upload Additional File Types Listed Below
• W2s
• 1099s
• G1003
• G7 (Semi-Weekly, Monthly, Quarterly, or Annual Filing Status)
• Filing Frequency Exchange
• Receive Emails on the System Message Board
• Request a Refund (Provided there is a refund on your account)
• Protest a Denial of Refund
• Protest Proposed Assessment
• Appeal Official Assessment
• Sales Tax Exemption Applications
• Submit Additional Documentation as Needed
• Request a Penalty Waiver
• Request Filing Frequency Change

Study Shows Shrinkage Up

The 2008 University of Florida study shows that inventory shrinkage or "shrink" is
significantly higher at 1.51% from the all time low of 1.44% in 2007. Keep in mind
this is 2008. So it is reasonable to assume that 2009 will be worse because of the economy.

Sources of inventory shrink nationally are as follows: 42.7% Employee Theft, 35.6% Shoplifting, 15.4% Administrative, 3.7% Vendor Fraud and 3.9% unknown.

Save Ten Percent On Loss Prevention Services



Due to the current economic conditions a lot of our clients were experiencing these issues:

Frustrated Because Of An Increase In Theft

Feeling Helpless Due To A Increase In Shoplifting

Overwhelmed By The Amount Of Internal Theft Due To The Lack Of Internal Controls

If you are experiencing any of these concerns, Loss Prevention Systems can help improve your bottom line.

Contact Robert Ross at 770-426-7593 or rross@losspreventionsystems.com

Mention this ad and receive a 10% discount.

Quote to Ponder

"Authority without wisdom is like a heavy axe without an edge; fitter to bruise than polish."
Anne Bradstreet, American poet



Thank you,

John C. Heavener, MSM, CAE
President, Georgia Retail Association

For More Information Contact:
johnh@georgiaretail.org
Telephone – 770-484-3449, ext. 21
Toll Free - (877) 427-3824
Fax – 770-484-5727
www.georgiaretail.org



About GRA: The Georgia Retail Association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, and grocery stores has been serving the state’s business community since 1961. The Georgia Retail Association represents an industry with more than 71,300 retail establishments, and more than 715,000 employees - about one in five of Georgia’s workers – with annual sales of more than $115 billion.

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