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April
8, 2009
THIS WEEK’S LEGISLATIVE ISSUES
QUOTE TO PONDER
This week’s Capitol Retail Report highlights just some of
the bills passed during the 2009 Session of the Georgia General
Assembly. Many more bills and their fate can be found at: http://www.georgiaretail.org/governmentaffairs/documents/13CRRDetail_April_8_2009.pdf
The JOBS Act - Will Amendments from Conference Committee
Lead to a Veto?
The JOBS Act is comprised of House Bills 481 and 482. These are
made up of a series of tax cuts, fee suspensions and incentives
to hire unemployed Georgians and a bill dealing with the ad Valorem
inventory tax. Both chambers agreed to the same version of House
Bill 482 which eliminated the state inventory tax on businesses.
However, after passing different versions of House Bill 481, that
bill was sent to conference committee to create a version of the
bill that both chambers could agree to support.
Critics are already pointing out that the added language, on capital
gains and the net worth tax, may cost too much.
The final version of HB 481 will:
• Create a quarterly tax credit towards the unemployment
insurance tax for each eligible employee hired. This credit
would be applied towards the employer’s future unemployment
insurance contributions for the hiring of someone who is receiving
state unemployment benefits.
• Create a $2,400 income tax credit for each eligible
employee hired. This credit will be available to those
who hire an employee that has been unemployed for at least 4 weeks
and remains employed for at least 24 weeks. To receive the credit,
the employee’s initial hire must be prior to July 2010.
• Start a “New Business Tax Holiday.”
Under this legislation, the $100 fee will be waived for all new
businesses formed over the next year. This component would create
a 1 year “holiday” on new filings for LLC’s, Limited
Partnerships, and For Profit Companies.
• Phase out of the Sales Tax Deposit. This
section of the Act phases out an outdated tax on Georgia business
capital. This is a fee charged to all Georgia businesses which have
$5,000 or more in sales tax collections each month. Taking the average
sales tax collection amount each month, the DOR requires the business
to forward fund a deposit of working capital. This deposit is held
for perpetuity or until the business fails, whichever comes first.
Phasing out this deposit will put much needed capital back into
Georgia’s businesses.
• Abolish the Net Worth Tax. This tax was
originated in 1931 and charged to all businesses based on their
net worth. It’s a deterrent to savings and investment in assets.
Currently, even businesses that have a negative net worth are taxed.
• Cut the Capital Gains Tax in half. This
tax is charged to all individuals and businesses that save and invest
in assets, whether its stocks, certificate of deposits, savings
accounts, collectibles or real estate. This provision would provide
a deduction of 50% of all Long Term Capital Gains from an individual’s
taxable income.
http://www.legis.ga.gov/legis/2009_10/versions/hb481_Sen_ctee_sub_LC_18_8351S_11.htm
HB 482 – Removing The Tax On Business Inventory,
which would exempt all the inventory of a business from state ad
valorem taxation, was approved by the Senate and awaits action by
the governor, whose staff is making a lot of noise this week and
hinting at a possible veto.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb482.htm
HB 481 and HB 482 sponsor, Representative Tom Graves, says, “Please
fax your support for HB 481 and HB 482 to Governor Sonny Perdue
at 404-657-7332.”
HB 485 – Jobs Tax Credit for Retailers Increasing
Port Traffic, sponsored by Representative Larry O’Neal,
(R) 146th, will grant any business enterprise located in a tier
two or tier three county which has a distribution facility of greater
than 650,000 square feet, and which was in operation in this state
prior to December 31, 2008; and which distributes product to retail
stores owned by the same legal entity or its subsidiaries as such
distribution facility; and has a minimum of 8 retail stores in this
state in the first year of operations; and has increased its port
traffic of products during the previous 12 month period by more
than 10 percent above its base year port traffic is qualified to
claim a job tax credit for jobs created before January 1, 2015.
http://www.legis.ga.gov/legis/2009_10/versions/hb485_LC_18_8240S_hs_4.htm
Status: Passed by both houses, awaiting action
by the governor
2009 Sales Tax Holidays set for July 30 through August
2 and October 1 through October 4
HB 120 – The Sales Tax Holiday, would
be reauthorized by this bill for 2009.
Status: Passed by both houses, awaiting action
by the governor
HB 439, The Best Act, was passed by the
House and Senate with the language keeping retailers covered for
retraining tax credits.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb439.htm
Status: Passed by both houses, awaiting action
by the governor
HB 186 – Teleworking Tax Credits,
sponsored by representatives Chuck Martin, (R) 47th, Karla Drenner,
(D) 86th and Clay Cox, (R) 102nd, would allow tax credits for teleworking
arrangements.
http://www.legis.ga.gov/legis/2009_10/sum/hb186.htm
Status: Passed by both houses, awaiting action
by the governor
SB 80 - Food Standards, Labeling, and Adulteration,
sponsored by senators, John Bulloch (R) 11th, John Crosby, (R) 13th,
George Hooks, (R) 14th, Ross Tolleson, (R) 20th, Ralph Hudgens,
(R) 47th and Freddie Sims, (D) 12th, would provide requirements
for the testing of samples or specimens of foods by food sales establishments
for the presence of poisonous or deleterious substances.
http://www.legis.ga.gov/legis/2009_10/sum/sb80.htm
Status: Passed by both houses, awaiting action
by the governor
HB 233 – Freeze on Property Taxes,
sponsored by Representative Edward Lindsey, (R) 54th, would provide
for a two-year moratorium on increasing the assessed value of real
estate.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb233.htm
Status: Passed by both houses, awaiting action
by the governor
HB 334 – Lowering the Threshold for Electronic
Payment of Sales Taxes, sponsored by representatives
David Knight, (R) 126th, Allen Peake, (R) 137th, Larry O`Neal, (R)
146th, and Jay Roberts, (R) 154th, would lower the threshold for
requiring electronic funds transfer of sales tax revenue to the
Department of Revenue from $5,000 per month to $1,000 on January
1, 2010 and $500 per month on January 1, 2011.
http://www.legis.state.ga.us/legis/2009_10/fulltext/hb334.htm
Status: Passed by both houses, awaiting action
by the governor
HB 439 – Income Tax Credits for Employee Re-Training,
sponsored by representatives Larry O`Neal, (R) 146th and Ron Stephens,
(R) 164th , would provide income tax credits for retraining staff.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb439.htm
Status – Passed by both houses, awaiting
action by the governor
HB 441 – Filing for Sales Tax Refunds,
sponsored by Representative O`Neal, (R) 146th, would require a taxpayer
who wishes to expedite the payment of a sales and use tax claim
for refund to file a bond with Department of Revenue Commissioner.
The commissioner, in turn, must issue the refund within 30 days
of the date of the posting of the approved bond. Any assessment
of tax, interest, penalties, fees, or costs related to the payment
of such refund claim shall be made within three years after the
date that such refund was paid by the commissioner.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb441.htm
Status: Passed by both houses, awaiting action
by the governor
HB 485 – Requirements for Claiming Credits for Port Traffic,
sponsored by Representative Larry O’Neal, (R) 146th, would
allow a $1,250.00 job tax credit to a business enterprise which
increased its port traffic of products during the previous 12 month
period by more than 10 percent above its base year.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb485.htm
Status: Passed by both houses, awaiting action
by the governor
HR 624 - Fees Study Committee, sponsored
by Representative Larry O’Neal, (R) 146th, would create a
study committee to review the fees collected by the sheriffs, probate
judges, superior court clerks, tax commissioners, and magistrate
judges; with the intent to ensure that the person receiving the
service pays for most or all of the service, rather than shifting
the cost to the property taxpayers, the fees should more closely
reflect the cost of providing the service; and would ensure that
a review, evaluation, and updating of those fees occurs to ensure
that the cost of providing the service is reflected accurately by
the fee charged. The committee’s report will be due on December
1, 2009.
http://www.legis.ga.gov/legis/2009_10/fulltext/hr624.htm
Status: Failed to make it to the House Floor for
consideration
HB 614 - Georgia Prescription Monitoring Program Act,
sponsored by Sharon Cooper, (R) 41st, and Ron Stephens, (R) 164th,
would require the reporting by those filing prescriptions for scheduled
substances.
http://www.legis.ga.gov/legis/2009_10/versions/hb614_LC_33_3111S_hs_4.htm
Status: Passed by the House on March 12, failed
in the Senate
SB 56 - Georgia StopMeth Log, will establish
a real-time electronic logbook system maintained either by the Georgia
Bureau of Investigation or by a program, approved by the bureau,
which will work in conjunction with other federal or state law enforcement
agencies.
To the extent funds are available; the Georgia Bureau of Investigation
is authorized by this bill to establish a StopMeth Log. It may utilize
any federal, state, or other grant funds available or donations
for the initiation, implementation, and operation of the electronic
log.
Where the Georgia Bureau of Investigation has provided access to
the StopMeth Log by making the system available through the Internet,
a pharmacy or retailer will be required to enter into the StopMeth
Log information pertaining to each transaction involving the sale
of a product containing ephedrine, pseudoephedrine, or phenylpropanolamine
as required by this article. Such entry shall be made at the time
of the sale. Information to be entered on the StopMeth Log must
include the full name, address, and date of birth of the purchaser,
the date of purchase, and the quantity purchased or attempted to
be purchased.
The system developed by the state to collect such information must
be able to accept the information from pharmacies or retailers in
the form being utilized by pharmacies or retailers. Pharmacies or
retailers will not be required to incur any additional costs to
change their reporting systems to provide such information.
The bill will require that any person purchasing, receiving, or
otherwise acquiring or attempting to acquire a product containing
ephedrine, pseudoephedrine, or phenylpropanolamine must produce
proof that they are 18 years of age or older. That proof is a current,
valid photographic identification.
http://www.legis.ga.gov/legis/2009_10/fulltext/sb56.htm
Status: Passed by both houses, awaiting action
by the governor
QUOTE TO PONDER
“Some regard private enterprise as if it were a predatory
tiger to be shot. Others look upon it as a cow that they can milk.
Only a handful see it for what it really is - the strong horse that
pulls the whole cart." - Winston Churchill
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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