Two key sales tax issues arose last week at the Georgia General Assembly.

First, the sales tax holiday bills were heard in the Sales Tax Subcommittee of the House Ways and Means Committee.

Sponsored by Lynn Smith, (R) 70th, the bills were introduced last week:
http://georgiaretail.org/CapitolRetailReportJanuary312010.htm

I provided an analysis of the financial impact of the holidays, which was based on a study commissioned by the Florida Retail Federation, which showed that the sales tax holidays make a far greater contribution to the state than what is lost in sales and use taxes.

That analysis has been sent to Georgia State University for confirmation or dispute. Ultimately, with tax revenue down dramatically, the renewal of the sales tax holidays may well depend on that analysis

Second, the GRA brokered solution to repulse the growing desire to have sales and use taxes collected by the counties was introduced by Representative David Knight, (R) 126th.

GRA also provided information on the suit against RDS, the private sales tax collection group in Alabama. I believe that those two actions will result in derailing action to pass legislation that would the mandate the local collection of sales and use taxes across the state.

Thank you,

John Heavener
GRA President

                                                  “When Retail Works, Georgia Works”

Ad Valorem Tax Legislation

HB 1105 - Exempting Watercraft From ad Valorem Taxation, sponsored by representatives Mickey Channell, (R) 116th, James Mills, (R) 25th, Carl Rogers, (R) 26th, Ron Stephens, (R)164th, Buddy Harden, (R) 147th, and Burke Day, (R) 163rd, would renew the ad Valorem tax exemption for watercraft held for sale by dealers.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1105.htm
Status: Pending committee assignment

HB 1051 - Homestead Option Sales and Use Tax for Educational Purposes Act, sponsored by Representative Mark Butler, (R) 18th, would allow the levying of a local sales and use tax to replace to up to 100 percent of the residential property tax.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1051.htm
Status: Assigned to the Ways and Means Committee

HR 1238 - Homestead Option Sales and Use Tax for Educational Purposes Act Referendum, sponsored by Representative Mark Butler, (R) 18th, would provide for the vote by the electorate on a constitutional amendment which would allow the levying of a local sales and use tax to replace to up to 100 percent of the residential property tax.
http://www.legis.ga.gov/legis/2009_10/fulltext/hr1238.htm
Status: Assigned to the Ways and Means Committee

Sales and Use Tax Legislation

HB 1093 - Linking Business Licenses with Sales and Use Tax Registration, sponsored by representatives David Knight, (R) 126th, Larry O`Neal, (R) 146th, Alan Peake, (R) 137th, Jerry Keen, (R) 179th, Bob Bryant, (D) 160th, and Mike Glanton, (D) 76th would require those who apply for a business license, and who would be required to collect sales taxes, to have a state sales and use tax identification number.
http://www.legis.state.ga.us/legis/2009_10/fulltext/hb1093.htm
Status: Pending

HB 1049 - Sales Tax Increment for Local Projects, sponsored by representatives Ron Stephens, (R) 164th, Stacey Abrams, (D) 84th, Joe Wilkinson, (R) 52nd, Don Wix, (D) 33rd, Virgil Fludd, (D) 66th, and Donna Sheldon, (R) 105th, would permit a sales and use tax increase of less than one cent to fund locally determined projects for the support and improvement of community cultural, arts and other locally determined qualified projects supporting economic development within special local community support districts within the state.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1049.htm
Status: Assigned to the Ways and Means Committee

HB 1065 - Reducing Sales and Use Tax Exemptions, sponsored by representatives Virgil Virgil Fludd, (D) 66th, Debbie Buckner, (D) 130th, Brian Thomas, (D) 100th, Doug McKillip (D) 115th, and Stephanie Stuckey Benfield, (D) 85th, would reduce existing state sales and use tax exemptions by 15% until January 1, 2013.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1065.htm
Status: Assigned to Ways and Means Committee, Sales Tax Subcommittee

Income Tax Legislation

HB 1066 - Income Tax Surcharge on Income over $400,000, sponsored by representatives Virgil Fludd, (D) 66th, Debbie Buckner, (D) 130th, Brian Thomas, (D) 100th, Doug McKillip, (D) 115th, and Stephanie Stuckey Benfield, (D) 85th, would add a 1 percent income tax surcharge on net incomes over $400,000.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1066.htm
Status: Assigned to Ways and Means Committee

HB 1067 - Reducing Capped Tax Credits by 15%, sponsored by representatives Virgil Fludd, (D) 66th, Debbie Buckner, (D) 130th, Brian Thomas, (D) 100th, Doug McKillip (D) 115th, and Stephanie Stuckey Benfield, (D) 85th, would reduce any existing tax credit by 15%.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1067.htm
Status: Assigned to Ways and Means, Income Tax Subcommittee

HB 1068 - Reducing Income Tax Credits by 15%, sponsored by representatives Virgil Fludd, (D) 66th, Debbie Buckner, (D) 130th, Brian Thomas, (D) 100th, Doug McKillip, (D) 115th, and Stephanie Stuckey Benfield, (D) 85th, would reduce any income tax credits by 15 percent until January 1, 2013.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1068.htm
Status: Assigned to Ways and Means, Income Tax Subcommittee

HB 1069 -Tax Credit for Purchasing Energy Efficient, sponsored by representatives Joe Wilkinson, (R) 52nd, DuBose Porter, (R) 143rd, Ed Lindsey (R) 54th, Carolyn Hugley, (D) 133rd, and Ron Stephens, (R) 164th, would provide a tax credit for the purchase of certain Energy STAR or Water Sense items. Items included would include, but not be limited to, dishwashers, clothes washers, air conditioners, ceiling fans, fluorescent light bulbs, dehumidifiers, programmable thermostats, refrigerators, doors, or windows. The tax credit would be 25 percent of the purchase price or $2,500.00, whichever is less.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1069.htm
Status: Assigned to Ways and Means

Telephone and Electronics Legislation

SB 360 - Banning Those 18 Years of Age or Younger From Texting While Driving, sponsored by senators Jack Murphy, (R) 27th, Horacena Tate, (D) 38th, Bill Hamrick, (R) 30th, Don Balfour, (R) 9th, Bill Jackson, (R) 24th, and John Douglas, (R) 17th, would ban texting while driving by those 18 or younger.
http://www.legis.ga.gov/legis/2009_10/fulltext/sb360.htm
Status: Assigned to Public Safety Committee

Gasoline Legislation

HB 1077 - Adding 3¢ to Each Gallon of Gasoline, sponsored by representatives Virgil Fludd, (D) 66th, Ron Stephens, (R) 164th, and Howard Mosby, (D) 90th , would add three cents to the excise tax on fuel moving the tax from 7 ½ cents to 10 ½ cents. State residents would be allowed a 1 cent tax credit against this expense.
http://www.legis.ga.gov/legis/2009_10/fulltext/hb1077.htm
Status: Assigned to Ways and Means

Legal Issues Legislation

SB 314 - Littering of Unsolicited Material, sponsored by senators Bill Heath, (R) 31st, John Bulloch, (R) 11th, Jack Hill, (R) 4th and Jeff Mullis, (R) 53rd would make it a misdemeanor to distribute unsolicited printed material to yards, driveways, walkways, or porches which isn't retrieved within four-days of the distribution, with each item not picked up constituting a separate violation.
http://www.legis.ga.gov/legis/2009_10/fulltext/sb314.htm
Status: Assigned to Senate Special Judiciary Committee

Save Payroll Processing and Loss Prevention Services

Georgia Retail Association members save 20% with our discounted payroll processing program through E-chx. You could save anywhere from hundreds to thousands per year if you switch to the GRA's payroll processing program today!

When you sign on with E-chx, Inc. you will be getting hassle-free payroll solutions including:

• Phone, fax, e-mail or Web-based payroll input options
• Real-time Internet payroll reporting
• Complete payroll tax preparation and administration
• Direct deposit
• Customized employee home pages that allow access to pay history and W-2s
• Free Web-based reports for CPAs

The new Payroll Processing Program is another great reason to join the Georgia Retail Association! New members to GRA will receive their first year of membership dues free if they process their payroll through E-chx. Since tax law changes constantly and nearly half of all businesses receive a payroll tax penalty, GRA offers this payroll program as another way to help protect our members and save them time and money.

Request a payroll estimate by contacting Staci Graham at (404)242-2645 or by email at sgraham@e-chx.com or visit the E-chx website at www.e-chx.com.


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


Quote to Ponder

"I see no magic in tax dollars which are sent to Washington and then returned. I abhor the waste and incompetence of large-scale federal bureaucracies in this administration as well as in others. I do not favor state compulsion when voluntary individual effort can do the job and do it well."
John F. Kennedy



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 8, 2010