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December
5 , 2008
IN THIS ISSUE:
NEW MEMBERS
DEPARTMENT OF REVENUE COMMISSIONER TO MEET WITH GRA EXECUTIVE COMMITTEE
GEORGIA COUNTIES SEEK SALES TAX COLLECTION POWER
VENDOR’S ALLOWANCE IN JEOPARDY?
FREE WEBINAR ON THE EMPLOYEE FREE CHOICE ACT
PREVIOUSLY REPORTED PRE-FILED LEGISLATION
QUOTE TO PONDER
New Members
GRA would like to welcome new members Serendipity Gifts and More,
Verizon Wireless, THP, Griffin-Spalding Chamber of Commerce, and
the Newton County Chamber of Commerce.
Department of Revenue Commissioner to Meet With GRA Executive
Committee
When the GRA Executive Committee meets on December 10, Department
of Revenue Commissioner Bart Graham will be there to express his
concerns over the proposal by counties that the be allowed to collect
sales taxes and audit retailers independently of the Georgia Department
of Revenue (please see article below).
Georgia Counties Seek Sales Tax Collection Power
Counties from all across Georgia are asking Senator Chip Rogers
to sponsor legislation which would allow them to collect sales taxes
locally. They cite inefficiencies, lack of detailed information
and lag in payment as the main reasons that they would like to have
that power transferred from the Department of Revenue to local jurisdictions.
Please see SR1167 below.
SR 1167, Local Sales Tax Collection Study Committee,
Chaired by Senator Chip
Rogers, with, Senator Tim
Golden , Senator Emanuel
Jones, Senator Mitch
Seabaugh and Senator John
Wiles, created a Senate Local Sales Tax Collection Study Committee.
Current Georgia law requires that the process of collecting local
sales and use taxes be collected on behalf of counties and cities
by the state revenue commissioner; and that the state revenue commissioner
charge each local taxing jurisdiction a fee of 1 percent of the
amount collected.
At
the hearings held by the Study Committee it was made abundantly
clear that many Georgia counties and cities would prefer to make
their own arrangements for the collection of their taxes.
What
could this mean for you?
Currently all taxes are collected by the State Department of Revenue
and then returned to the counties. This process is cumbersome and
counties and cities complain that it takes 90 days to turn collections
around. The Department of Revenue does not deny the lag, but cites
poor participation by the retailers in the use of electronic reporting
and remittance as the main culprits.
If, counties and cities get the right to collect sales taxes this
means many more reports and checks for retailers who have a presence
in more than one jurisdiction. It also means that every retailer
will have a far greater chance of being audited.
In addition, counties and cities could contract with an independent
firm to collect taxes and perform audits. Those companies could
then be paid an incentive to collect additional taxes and perform
more audits.
This process could involve more reports, not less; more audits,
and more penalties; and while retailers, for the most part are honest
and accurately report and remit sales tax collections, more invasive
scrutiny and oversight.
Many local governments are also asking for detailed reports, vendor
by vendor, of sales tax collections. Arguments they espouse are
based upon a need to know if local investments by government in
development or promotion are paying off in terms of sales tax revenues
collected. Do you want every county and city official knowing what
you sales are?
http://www.legis.ga.gov/legis/2007_08/fulltext/sr1167.htm
Vendor’s Allowance in Jeopardy?
Faced with declining revenues some states are looking at cutting
vendor's sales tax allowance. Could the Georgia General Assembly
follow this trend? We keep our ears to the ground and will provide
more information to you as it becomes available.
Free Webinars for Employers – on the Employee Free Choice
Act
Organized labor is down but not out, and unions have pinned their
hopes on an aggressive agenda designed to turn the tide in their
favor. If they succeed, organizing activity will increase dramatically,
and unwary employers may find themselves unionized before they know
what even hit them. Now that the election is over, what can we expect
under the next administration?
The law firm of Morris, Manning & Martin is providing an opportunity
to you to find out what lies ahead in terms of proposed legislation
that would include some of the most sweeping labor reforms in recent
history. Are you ready for mandatory card check imposed by the Employee
Free Choice Act? Have you assessed your internal structure under
the standards proposed by the RESPECT Act? Get the inside scoop
from labor lawyers who will tell you what to expect and when. Our
experts will offer a practical, phased approach designed to get
you ahead of the curve while there's still time to protect your
business.
The
one hour webinars are free, but do require registration.
To
view webinar dates and to register please visit our website »
If you have questions, please contact Gail Rice at grice@laborlawyers.com
or 404-231-1400.
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
"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
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.
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