Georgia Legislators Study Tax Code

Representatives Thunder Tumlin, (R), 38th, Richard Royal, (R), 171st

and Honorable Jay Powell of Camilla, at the Comprehensive Tax Reform

Study Committee hearing in Camilla, GA.

The Georgia House and Senate both have Tax Reform Study Committees that are reviewing Georgia’s taxes with a desire to provide an overhaul of the tax system during the 2007 session. This has proven to be a great opportunity to educate the committee members on the impact that the state’s ad Valorem inventory tax has on Georgia’s retailers. The Georgia Retail Association has been making the case that the ad Valorem tax is harmful to Georgia’s retail industry since none of the neighboring states have this onerous tax. In fact, neither Florida, Alabama, Tennessee, South Carolina, nor North Carolina still levies this tax.

However, more vocal and better organized groups have been pushing their own ideas for tax relief as well. Leading the charge for tax relief are manufacturers who are seeking abolishment of the sales tax on energy (STE) used in manufacturing and processing in Georgia. They are well organized and have the support of the Georgia Chamber of Commerce, which has made STE its number one tax issue for 2007. Georgia is the only southeastern state that has this tax too.

Also, Governor Sonny Perdue has been touting an elimination of income tax on seniors and Representative Mark Burkhalter, (R), 50th, has been holding hearings on eliminating the annual personal property tax on automobiles.

Meanwhile, all but a few retailers have been silent on this issue. According to John Heavener GRA President, “We have heard from a number of small, medium and large retailers who have told us that this tax has a negative impact on their bottom lines. Yet, too few retailers have stepped forward to say that they want to help.” Heavener added that, “Badcock Home Furniture and more has been an exception. They have been leader on the ad Valorem Inventory tax issue and are urging other retailers to become engaged on this issue as well.”

If you want to become involved in the effort please call GRA at 770-484-3449 or
877-427-4834.