Budget Woes Force Two Week's Recess

With a 17 percent decrease in tax revenue, (Since 2008, Georgia's general fund revenues have declined by $3.2 billion) the development of the 2011-2012 budget has been a bumpy process at best. Because revenue continues to lag in January the Georgia General Assembly has taken a two-week recess to find ways of dealing with the needed cuts in next year's budget.

Smash and Grab Legislation

Legislation that would address the growing problem of smash and grab robberies was introduced in the Senate this week by Senator Preston Smith, a Republican from Rome, Georgia (District 52). That legislation, SB 423, the Smash and Grab Act of 2010, would add smash and grab theft as a designated felony.

This legislation is badly needed. I hope to see SB 423 move as soon as the General Assembly returns from recess, so please contact members of the Senate Judiciary Committee and let them know how smash and grab thefts have harmed your business. They are:

Preston Smith preston.smith@senate.ga.gov
Seth Harp seth.harp@senate.ga.gov
Bill Hamrick bill.hamrick@senate.ga.gov
David Adelman david.adelman@senate.ga.gov
Robert Brown robert.brown@senate.ga.gov
Bill Cowsert bill.cowsert@senate.ga.gov
John Crosby john.crosby@senate.ga.gov
Vincent Fort vincent.fort@senate.ga.gov
Judson Hill judson.hill@senate.ga.gov
Ronald Ramsey ronald.ramsey@senate.ga.gov
Mitch Seabaugh mitch.seabaugh@senate.ga.gov
John Wiles john.wiles@senate.ga.gov

Bill Designed to Avert the Local Collection of Sales Taxes Hits a Snag

HB 1093 - Linking Business Licenses with Sales Tax Registrations, sponsored by representatives David Knight, Larry O`Neal, and others has hit a snag as Democrats, led by gubernatorial candidate DuBose Porter, want to expand the bill to require a two-way transfer of information between counties and cities and the state Department of Revenue (please see HB 1137 below). That pressure, along with news articles, has resulted in having the bill sent back to the Ways and Means Committee from the House Rules Committee for more work. Dubose Porter and others have pushed for an adoption of legislation that would establish a local collection model similar to the one in Alabama.

Since we have reached the 20th day of the legislative session, no new tax bills can be introduced. I believe that we can avert having amendments floated that will call for local collection of sales taxes


Thank you,

John Heavener
GRA President

                                                   “When Retail Works, Georgia Works”


Sales and Use Tax Legislation

Since we have reached the 20th day of the legislative session on February 18th, no new tax bills can be introduced. I believe that we can avert having amendments floated that will call for local collection of sales taxes.

HB 1167 - Increasing the Sales and Use Tax Rate to Five Percent, sponsored by Representative David Lucas, (D) would increase the state sales tax from four to five percent for from July 1, 2010, until June 30, 2013.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1167.htm
Status: Assigned to the Ways and Means Committee

HB 1020 and HR 1203 - Allowing ESPLOST Sales Taxes to be Used for Maintenance and Operations as well as Capital Outlays, sponsored by Butch Parrish, 156th, would allow a one cent local sales tax to be levied for school operations and maintenance as well as capital projects. Local charter schools and special school districts would qualify as well.
http://www.legis.state.ga.us/legis/2009_10/fulltext/hb1020.htm
http://www.legis.state.ga.us/legis/2009_10/fulltext/hr1203.htm
Status: Heard in Ways and Means Committee on 2/16/10 and passed, next to full Ways and Means Committee

HB 1051 and HR 1238 - Homestead Option Sales and Use Tax for Educational Purposes Act, sponsored by Representative Mark Butler, (R) 18th, would allow school boards to collect an additional one cent sales tax which would be used to offset ad Valorem homestead taxes.
http://www.legis.state.ga.us/legis/2009_10/fulltext/hb1051.htm
Status: Heard in Ways and Means Committee on 2/16/10 and passed

HB 1093 - Linking Business Licenses with Sales Tax Registrations, sponsored by representatives David Knight, (R) 126th, Larry O`Neal, (R) 146th, Alan Peake, (R) 137th, Jerry Keen, (R) 179th, and Bob Bryant, (D) 160th, would allow cities and counties to send information on business licensees approved to be sent along to the state Department of Revenue so that DOR can match licenses with sales tax registrations to ensure that sales taxes are collected and remitted.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1093.htm
Status: Recommitted from Rules Committee to the Ways and Means Committee

HB 1137 -Tying Business Licenses to Sales Tax Returns, sponsored by DuBose Porter, (D) 143rd, Virgil Fludd, (D) 66th, Stacey Abrams, (D) 84th, Calvin Smyre, (D) 132nd, Carolyn Hugley, (D) 133rd, would expand HB 1093 by requiring that any person who has a business that requires a business license to provide the mailing address of such business and the actual physical location of such business; the sales and use tax identification number assigned to such business by the Department of Revenue; and its North American Industry Classification Code number. Then, it would require a quarterly requirement that the city or county involved transmit that information to the Department of Revenue; then would require that the Department of Revenue send back a list identifying businesses and practitioners of occupations and professions within the municipality or county which have been assigned a sales and use tax identification number by the department but which have not been identified as having paid an occupation tax or an applicable regulatory fee.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1137.htm
Status: Heard in the Sales Tax Subcommittee of the Ways and Means Committee on 2/17/10.

HB 1024 - Jobs, Opportunity, and Business Success Refund Act of 2010, sponsored by Martin Scott, (R) 2nd, Tom Graves, (R) 12th, Melvin Everson, (R) 106th, Allen Peake, (R) 137th, Edward Lindsey, (R) 54th and Jay Neal, (R) 1st, would gradually phase out and eliminate the sales tax deposit requirement over five years.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1024.htm
Status: Passed out of the Sales Tax Subcommittee on 2/17/10, considered by the Ways and Means Committee on 2/18/10 - however, no action was taken

HB 1190 - Requiring and Annual Notice of Property Assessments, sponsored by Representative David Knight, (R) , would require that the Board of Assessments provide an annual written notice to the taxpayer of such taxpayer's returns regardless of whether any changes or corrections, including valuation increases, decreases, or equalizations, have been made in their property.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1190.htm
Status: Assigned to the Ways and Means Committee

HB 1216 - Lowering the Percent Paid on Refunds of Tax Overpayments, sponsored by Chuck Martin, (R) 47th, would lower from 1 percent to .5 percent the interest paid on refund for taxes or fees are overpaid or levied improperly.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1216.htm
Status: Assigned to the Ways and Means Committee

HB 1217 - Removing Sales Tax From Food Sold in Vending Machines, sponsored by Chuck Martin, (R) 47th, would make food sold in vending machines exempt for sales tax.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1217.htm
Status: Assigned to Ways and Means Committee

HB 1167, Increasing Sales Tax by One Cent for Education, sponsored by David Lucas, (D) 139th, would add increase the state's 4% sales and use to tax to 5%.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1167.htm
Status: Assigned to the Ways and Means Committee

Income Tax Legislation

HB 984 - Prohibiting the Levy of a Local Income Tax, sponsored by Representative Larry O'Neal, (R) 146th, would preclude the establishment of a local income tax.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb984.htm
Status: Passed by Ways and Means Committee and sent to the Rules Committee on February 11, 2010.

HB 1241 - Income Tax Credit Utilization, sponsored by representatives Jeff May, (R) 111th, Lynn Smith, (R) 129th, and Carolyn Hugley, (D) 133rd , would provide that income tax credits generated in the current tax year and Georgia income tax credits carried forward to the current tax year, those tax credits from the oldest years shall be utilized first; provided, however, that if a taxpayer is eligible to claim more than one type of Georgia income tax credit, each having different carry forward periods, or no carry forward period, the taxpayer may elect which Georgia tax credit will be first utilized on the taxpayer's current year return. If two or more different Georgia income tax credits for which carry forward is allowed are generated in a single tax year and one or both cannot be fully utilized by the taxpayer in such tax year, the taxpayer could elect which and how much of each shall be utilized on the current year's return and which and how much of both or either shall be carried forward.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1241.htm
Status: To be assigned to committee

Ad Valorem Tax Legislation

HB 1202 - Allowing the Transfer of Tax Credits for the Donation of Real Property for Conservation Purposes, sponsored by Representative Ron Stephens, (R) 164th would allow the transfer or sale of tax credits (whole or in part) gained by the donation of land for conservation purposes.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1202.htm
Status: Assigned to ways and means Committee

HB 1082 - Expanding Freeport Status to Retail Inventory, sponsored by Jay Powell, (R) 171st , Ed Lindsey, (R) 54th , Al Williams, (D 4th , Ellis Black, (D) 174th , and John Meadows, (R) 5th , would allow counties or cities, via referendum, to classify retail inventory as a Level 1 Freeport Exemption and thereby allow the county to exclude either 20, 40, 60, or 80 percent of the value of that inventory from ad Valorem property tax.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1082.htm
Status: Heard in Ways and Means subcommittee on 2/17/10

HB 374 - Nonresident Taxes on Real Estate Transactions, sponsored by Representative Rick Crawford, (D) 16th, would require the identification of the person listed on the closing statement on the sale or transfer of real property by nonresidents and to ensure that nonresident listed on the closing statement as the seller would be subject to the withholding taxes.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb374.htm
Status: Assigned to Ways and Means Committee

HB 1158 - Specifying Charges in Tax Levies, sponsored by John Meadows, (R) 5th, would remove existing language, "costs" includes, but is not limited to, title examination expenses, certified mail expenses, reasonable attorney's fees, or other such necessary research expenses," and insert the language, "the sheriff or ex officio sheriff shall collect, in addition to any other costs, commissions, interest, and penalties, the actual expenses incurred by the county in issuing the execution and administering the levy by imposing a levy administration fee which shall be 5 percent of the delinquent tax or $250.00, whichever is the lesser. Regardless of any other provision of this paragraph, however, no such levy administration fee shall be less than $50.00."

http://www.legis.ga.gov/legis/2009_10/fulltext/hb1158.htm
Status: Assigned to Ways and Means Committee

Loss Prevention Legislation

SB 423 - Smash and Grab Act, sponsored by senators Preston Smith, (R) 52nd, Bill Hamrick, (R) 30th, Butterworth, 50th, John Douglas, (R) 17th, and Jeff Mullis, (R) 53rd, would add smash and grab thefts as a designated felony.
http://www.legis.state.ga.us/legis/2009_10/fulltext/sb423.htm
Status: Unassigned as of 2/17/10

HB 1015 - Georgia Street Gang Terrorism and Prevention Act, sponsored by finds that the State of Georgia is in a state of crisis which has been caused by violent criminal street gangs whose members threaten, terrorize, and commit a multitude of crimes against the peaceful citizens of their neighborhoods. The bill makes street gang activity a crime and provides for the forfeiture of profits and instrumentalities used criminal activity

A 'Criminal street gang' is defined as a group of three or more persons, who engage in criminal gang activity. It would make it unlawful for a person to commit and offense which would obtain or earn membership, or increase one's status or position in a criminal street gang.

It would also make it unlawful for any person to cause, encourage, solicit, recruit, or coerce another to become a member or associate of a criminal street gang, to participate in a criminal street gang, or to conduct or participate in criminal gang activity.

Those convicted under the bill could be imprisoned for not less than three nor more than ten years.

The bill also calls for the establishment of a statewide criminal gang activity database.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1015.htm
Status: Approved by the House Non-Civil Judiciary Committee on February 10, 2010 and transmitted to the Rules Committee

HB 1208 - Theft from a Designated Disaster Area, sponsored by representatives Don Wix, (D) 33rd, Elly Dobbs, (D) 53rd, Rob Teilhet, (D) 40th, Terry Johnson, (D) 37th and Alisha Morgan, (D), 39th, would make it a felonious offense to take by theft property from a designated disaster area.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1208.htm
Status: Assigned to the Non-Civil Judiciary Committee

Health Care Legislation

SB 408 - Providing for the Establishment of Small Employer Health Group Cooperatives, sponsored by senators Judson Hill, (R) 32nd, Preston Smith, (R) 52nd, Don Thomas, (R) 54th, Chip Rogers, (R) 21st, Lee Hawkins, (R) 49th, and John Douglas, (R) 17th, would allow small employee groups (fifty or fewer employees) to become part of a health insurance cooperative. The health group cooperative would need to have 1,000 eligible employees or 10 enrolled employees.
http://www.legis.ga.gov/legis/2009_10/fulltext/sb408.htm
Status: Assigned to Industry and Labor Committee

HB 1170 - Removing Tax Exemption from Health Maintenance Organizations, sponsored by representatives Jim Cole, (R) 125th and Matt Ramsey, (R) 72nd, would repeal the tax exemption for health maintenance organizations which provide health care services under the Medicaid program; to provide for related matters; to repeal conflicting laws; and for other purposes.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1170.htm
Status: Assigned to Health and Human Services

SB 411 - Health Georgians Act of 2010, sponsored by senators Ralph Hudgens, (R) 47th, Greg Goggans, (R) 7th, Mitch Seabaugh, (R) 28th Jeff Mullis, (R) 53rd and John Wiles, (R) 37th, would exempt insurers who include and operate wellness and health promotion programs, disease and condition management programs, health risk appraisal programs, and similar provisions in their health benefit polices in keeping with federal requirements from prosecution for engaging in unfair trade practices with respect to practices of illegal inducements, unfair discrimination, and rebating."
http://www.legis.ga.gov/legis/2009_10/fulltext/sb411.htm
Status: Assigned to Insurance and Labor Committee

Environmental Legislation

SB 401 - Georgia Energy Freedom Act of 2010, sponsored by Mitch Seabaugh, (R) 28th, Chip Rogers, (R) 21st, Bill Heath, (R) 31st, Jeff Chapman, (R) 3rd, and Jeff Mullis, (R) 53rd, would amend Chapter 9 of Title 12 of the Official Code of Georgia Annotated, relating to air pollution control, so as to permit the Governor to delay implementation of the requirements of any federal program to implement a cap and trade system or any other program to address greenhouse gas emissions or motor vehicle fuel economy until a comprehensive assessment of such program can be made and the Governor finds that the implementation will benefit the citizens of Georgia.
http://www.legis.ga.gov/legis/2009_10/fulltext/sb401.htm
Status: Assigned to the Natural Resources and Energy Committee

Employment Legislation

HB 1204, Providing and Income Tax Credit for Hiring a New Employee, sponsored by Representative Ron Stephens, (R) 164th, would provide a $700 or two percent tax credit for a company which hires a new full-time employee who works not less than 35 hours per week and paying an annual wage of not less than $20,000.00 per year in the tax year.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1204.htm
Status: Assigned to the Ways and Means Committee

HB 1163 - Establishing a Drug Screening Process for Unemployment Insurance Claimants, sponsored by Ben Harbin, (R) 118th, Sharon Cooper, (R) 41st, Alan Powell, (D) 29th, Carl Rogers, (R) 26th, Bob Smith, (R) 113th, and Jeff May, (R) 111th, would establish a system of random drug testing for unemployment benefit claimants. Anyone testing positive without a valid medical reason would be required to enter a drug counseling program. Those unwilling to do so would be denied benefits for a period of two years.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1158.htm
Status: Not yet Assigned

Port Authority Legislation

HB1060 - Allowing the Georgia Ports Authority to Issue Commercial Paper, sponsored by representatives Ron Stephens, (R) 164th, Al Williams, (D) 165th, Terry Barnard, (D) 166th, Butch Parrish, (D) 156th, and Larry O'Neal (R) 146th, would permit the Georgia Ports Authority to borrow money for its corporate purposes and have the ability to execute and deliver long-term and short-term notes, commercial paper, bond anticipation notes, and other obligations or evidences of indebtedness.
http://www.legis.state.ga.us/legis/2009_10/fulltext/hb1060.htm
Status: Assigned to the Public Policy Subcommittee

Loss Prevention Tips

Vendor Mistake... Or Not?

Occasionally mistakes are made and the business doesn't receive all the merchandise or supplies that it paid for, but there is the possibility that it is deliberate on the part of the vendor. A vendor who can get away with a little at each stop may end up with a haul at the end of the day.

Through simple controls and following procedures when receiving merchandise, you can greatly reduce the likelihood of theft occurring at your locations.

Be Aware Of:

          - Vendors who consistently arrive at the busiest time of day
          - Vendors who resist your help when unloading and stacking
          - Vendors who ask for the same employee every time
          - Incomplete or missing paperwork
          - Opened or damaged cartons and boxes

Do:

          - Check paperwork every time, being sure it is correct for each item
          - Check and count the contents of each box
          - Note any substitutions or changes in costs

Don't:

         - Let a vendor rush you in doing your job
         - Let vendors or delivery persons into your stockroom or warehouse unsupervised
         - Accept broken or damaged boxes without examining the contents

Be sure you get what you pay for.




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


Quote to Ponder

"Democracy is two wolves and lamb voting on what to eat for lunch, liberty is a well-armed lamb contesting the vote." Benjamin Franklin


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.

Printer Friendly CRR February 22, 2010