|
December
19, 2008
IN THIS ISSUE:
NEW MEMBERS
LET YOUR VOICE BE HEARD IN 2009
ERIC JOHNSON RUNNING FOR LIEUTENANT GOVERNOR
JERRY KEEN STEPS OUT OF THE RACE FOR GOVERNOR
REVENUE COMMISSIONER MEETS WITH GRA EXECUTIVE COMMITTEE
SUNDAY ALCOHOL SALES
INCREASED TOBACCO TAX
REGULATORS ADOPT NEW CREDIT CARD RULES
PREVIOUSLY REPORTED PRE-FILED LEGISLATION
QUOTE TO PONDER
New Members
GRA would like to welcome new members The Stock Market from Conyers
and Bulgari from Buckhead.
Let Your Voice Be Heard in 2009
2009 is right around the corner - please consider being an active
participant in GRA’s legislative efforts. The more our retailers
participate - the more effective we can be in advocating for the
retail industry in Georgia!
Please contact me if you have any questions about your membership
or any topics of interest you would like to see reported in upcoming
weekly Capitol Retail Reports.
Wishing You a Safe, Happy, and Prosperous Holiday Season!
It’s Official - State Senator Eric Johnson Running for Lieutenant
Governor
Confirming speculation that has been circulating for months, Eric
Johnson, President Pro Tem of the Georgia Senate, has formally launched
his bid for lieutenant governor in 2010. By formally announcing
Johnson is forced by Senate policy to give up his Senate leadership.
As the Senate's presiding officer, the lieutenant governor plays
a key role in shaping the state's legislative agenda. However, under
Lieutenant Governor’s Mark Taylor's tenure from 2003 to 2006,
Johnson played that role as the leader of the majority party in
the Senate.
He's hired veteran campaign strategist Derrick Dickey who worked
for the Georgia Food Industry Association and the Georgia Association
of Convenience Stores in 2008 on the Sunday Sales Bill.
So
far Senator David Shafer of Duluth, a former state GOP chairman,
is the only other announced opposition for the office of Lieutenant
Governor. However, possible bids from Senator Tim Golden, a Democrat
from Valdosta, and Senator David Adelman, a Democrat from Atlanta
have been rumored.
Jerry
Keen Steps Out of the Race for Governor
This week House Majority Leader Jerry Keen told a hometown audience
on St. Simons Island that he will not be a candidate for Governor’s
office in 2010. This announcement ended lots of speculation that
the St. Simons Republican Representative would run for higher office
in the near future.
Department of Revenue Commissioner Meets With GRA Executive
Committee
When the GRA Executive Committee met on December 10, Department
of Revenue Commissioner Bart Graham was there to express his concerns
over the proposal by counties that they be allowed to collect sales
taxes and audit retailers independently of the Georgia Department
of Revenue.
He also added that the vendors allowance might be cut from 3% to
2% to make up for some revenue shortfalls.
(Please see articles on both issues in the December 5, 2008 Capitol
Retail Report at www.georgiaretail.org).
Sunday Alcohol Sales
State Senator Seth Harp, a Republican from Midland, plans to reintroduce
the Sunday sales legislation when the General Assembly begins on
January 12, 2009. Senator Harp sees the issue as a way to increase
tax revenues by millions of dollars in a year when the state is
grappling with a budget deficit that could top $2 billion.
The state excise tax on alcoholic beverages is one of the few taxes
where revenues have continued to climb even as the economy has worsened.
For the fiscal year that began July 1, 2008 the alcohol excise tax
that stores pay to wholesalers rose by 1.8 percent even as most
other revenue sources plummeted.
Georgia is one of only three states that ban stores from selling
any kind of alcohol on Sundays. The other two are Connecticut and
Indiana.
The bill would give local governments the option to permit Sunday
alcohol sales. Voters in those areas would then have to approve
the change.
A spokesman for the Distilled Spirits Council of the United States
said that allowing liquor sales statewide would bring up to $4.8
million in increased taxes and a Publix spokesperson said the sale
of beer and wine at grocery stores on Sunday would result in $1.4
million in extra excise taxes and at least $3.3 million in new sales
tax revenue.
Tobacco Tax Increase Proposed By Stephens
State Representative Ron Stephens, a Republican from Savannah, has
said that he will introduce legislation again in 2009 to raise the
tax on cigarettes to $1 per pack. He proposes using the additional
revenue to help fund state sponsored medical insurance programs.
However, the Georgia Code may preclude tying such tax revenue to
specific expenditures. In addition, when cigarette taxes were raised
in New Jersey, income actually dropped. We will provide more information
on this when the bill is filed
Regulators
Adopt New Credit Card Rules
On Thursday, December 18, 2008 the Federal Reserve, the Treasury
Department’s Office of Thrift Supervision and the National
Credit Union Administration adopted sweeping new rules for the credit
card industry designed to shield consumers from arbitrary increases
in interest rates on existing account balances among other changes.
The rules, which take effect in July 2010, will allow credit card
companies to raise interest rates only on new credit cards and future
purchases or advances, rather than on current balances.
Most of the rules were first proposed in May and drew more than
65,000 public comments — the highest number ever received
by the Federal Reserve. They also restrict such lender practices
as allocating all payments to balances with lower interest rates
when a borrower has balances with different rates.
In
addition, consumers will have to be given 45 days notice before
any changes are made to the terms of an account, including slapping
on a higher penalty rate for missing payments or paying bills late.
Under current rules, companies in most cases give 15 days notice
before making certain changes to the terms of an account.
The changes could cost the banking industry more than $10 billion
a year in interest payments, according to a study by the law firm
Morrison & Foerster.
Roughly 16,000 companies in the U.S. issue credit cards. The biggest
lenders include Discover Financial Services LLC, Bank of America
Corp., Citigroup Inc., JPMorgan Chase & Co., Capital One Financial
Corp., American Express Co. and HSBC Holdings.
Previously Reported, Pre-Filed Legislation
SB 7 - Truth in Testimony Act, sponsored
by Senator Ed Tarver, would allow committee and subcommittee chairmen
to require a person providing testimony before the committee to
take an oath before testifying. Curiously, the bill would not apply
to legislators. A similar bill introduced in 2008 did not make it
out of the Senate.
http://www.legis.ga.gov/legis/2009_10/fulltext/sb7.htm
SB 9 – Removing the Requirement that Concealed Weapons Must
Be Kept in a Holster, sponsored by Senator John Douglas,
Republican17th, would allow individuals to conceal a weapon in a
person's clothing, handbag, purse, attaché case, briefcase,
or other closed container, as well as a holster.
http://www.legis.ga.gov/legis/2009_10/fulltext/sb9.htm
SB 10 - Single Dose Pseudoephedrine (60 Milligram Or Less) From
Controlled Substances, sponsored by Senator John Douglas,
Republican 17th, would remove the exception for pseudoephedrine
in a single dose unit of 60 milligrams or less, when a single dosage
unit is 60 mg. or less or when manufactured in an extended release
form with a dosage unit of 240 mg or less from the list of controlled
substances, thereby making it available by prescription only.
http://www.legis.ga.gov/legis/2009_10/fulltext/sb10.htm
HR 1 – Cap on Assessments, Representative Edward
Lindsey, a Republican from Atlanta, along with House Majority Leader
Jerry Keen as cosponsor, have sponsored a resolution calling for
a constitutional amendment to cap the rate of property tax reassessment
at the lesser of 3 percent or the rate of inflation.
http://www.legis.ga.gov/legis/2009_10/sum/hr1.htm
HR 3 – Provided for an Immediate Consideration of Gubernatorial
Vetoes, sponsored by Kevin Levitas, an Atlanta Democrat,
would call for an immediate consideration of a vote to override
a veto by the other Chamber of the General Assembly. (During the
2008 session, the House voted to override 12 vetoes by Governor
Sonny Perdue, but Senate allowed one to come to a vote.) http://www.legis.ga.gov/legis/2009_10/fulltext/hr3.htm
HB 4 - Income Tax Credit for ad Valorem Taxes,
sponsored by Representative Kevin Levitas, a Democrat from Atlanta,
would allow a credit against qualified ad valorem tax expenses in
an amount not to exceed the actual amount expended. The tax credit,
as proposed by Levitas, could not exceed the taxpayer's income tax
liability, nor could the amount of unused tax credit be used against
succeeding years' tax liability. No such tax credit shall be allowed
the taxpayer against prior years' tax liability. The qualifier is
that in any tax year in which the commissioner determines that the
aggregate amount of state reserve funds is less than $500 million,
no tax credit shall be claimed or allowed under this Code section
for that tax year.
http://www.legis.ga.gov/legis/2009_10/versions/hb4_LC_18_7682_pf_2.htm
HB 5 - Income Tax Credit for Qualified Ad Valorem Tax
Expenses, sponsored by Representative Kevin Levitas,
a Democrat from Atlanta, would provide a credit for ad Valorem taxes
on real property and personal property used for business or commercial
purposes. This bill also contain the qualifier that in any tax year
in which the commissioner determines that the aggregate amount of
state reserve funds is less than $500 million, no tax credit shall
be claimed or allowed under this Code section for that tax year.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb5.htm
HB 6 - Sales and use tax for energy or water efficient
products; sponsored by Representative Kevin Levitas,
a Democrat from Atlanta, would provide for an exemption from sales
and use tax with respect to certain sales of certain energy efficient
products or water efficient product; with a sales price of $1,500.00
or less per product purchased for noncommercial home or personal
use from12:01 A.M. on October 1, 2009, and concluding at 12:00 Midnight
on October 4, 2009.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb6.htm
HB 17 – Elimination of Corporate Income Taxes,
sponsored by Tim Bearden, a Republican from Villa Rica, entitled
the Small Business and Jobs Protection Act of 2009," would
eliminate corporate income taxes, beginning January 1, 2010.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb17.htm
HB 18 – Elimination of ad Valorem Inventory Taxes,
was also pre-filed by Representative Tim Bearden, a Republican from
Villa Rica. The bill “Small Business and Jobs Protection Act
of 2010," would exempt the inventory of a business from ad
Valorem taxes.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb18.htm
HB 19 – Use of Cell Phones While Driving, sponsored
by Mary Margaret Oliver, a Democrat from Decatur, would amend Title
40 of the Official Code of Georgia to make it a misdemeanor, subject
to one point, for the use of wireless communication device while
driving. http://www.legis.ga.gov/legis/2009_10/fulltext/hb19.htm
HB 23 – Prohibiting Cell Phone Use by Teens While
Driving, sponsored by Matt Ramsey, Republican 72nd,
Tom Rice, Republican 51st, Edward Lindsey, Republican 54th would
amend Title 40 of the Official Code of Georgia to make it a misdemeanor,
subject to one point, for the use of wireless communication device
while driving.
http://www.legis.ga.gov/legis/2009_10/versions/hb23_LC_34_1947_pf_2.htm
HB 25 – Estimated Tax Liability Sales and Use Tax Returns,
sponsored by Martin Scott, Republican 2nd, would remove the requirement
for a merchant to file a return and remit to the revenue commissioner
for estimated sales and use tax liability.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb25.htm
Quote to Ponder
“They're telling you that you can't take care of yourself.
You can't be trusted with what you put in your mouth or what you
sign on the mortgage dotted line. So they'll tell you what to put
in your mouth and they'll save you from what you signed on that
dotted line. Does anyone see a trend here? Personal responsibility
has now become government responsibility.” Neil Cavuto,
FOX News
Thank you.
John C. Heavener, MSM, CAE
President
johnh@georgiaretail.org
Telephone – 770-484-3449, ext. 21
Fax – 770-484-5727
Georgia Retail Association
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
- and 2004 sales of $115.2 billion.
Printer
Friendly CRR December 19, 2008
|
