Georgia retailers presently receive a partial compensation, commonly known as "vendors' compensation", to offset some of their costs for collecting and remitting sales tax to the state. Georgia's retailers receive 3% of what they collect until their compensation reaches $90.00; thereafter, retailers receive ½ of 1% of the sales taxes collected. This formula is applied on a "per store, per month" basis. In order to receive this partial compensation, a retailer must be responsible for any shortages, remit collections on or before a specified date, and comply with additional guidelines set forth by state regulations. GRA feels strongly that Georgia's retailers should continue to receive compensation for the tax collection service they provide to the state as long as it is not more than their actual cost. GRA, therefore, strongly opposes any proposal which would reduce or eliminate the current amount of partial compensation which retailers receive for serving as our state's tax collectors.

GRA supports any proposal to increase vendors' compensation to the extent that such compensation would offset actual costs of collecting and remitting sales taxes to the state.

GRA supports strict enforcement of Georgia use tax collections on items purchased out of state. Georgia consumers who do not pay sales tax on remote sales are required by law to pay an equivalent use tax to the state of Georgia.

GRA recognizes that Georgia loses a significant amount of revenue each year on out-of-state sales to Georgia residents. Failure by the state to collect the use tax on out-of state sales also places Georgia businesses at a competitive disadvantage with out-of-state merchants that do not collect sales taxes.

GRA supports strict enforcement of all sales and use tax collection and remittance laws and has urged the Georgia Department of Revenue to begin an immediate education process to inform businesses and consumers as to their legal obligations with respect to payment of sales and use tax on out-of-state purchases. Further, GRA urges the DOR to develop means of enforcing existing state law requiring payment of the state's use tax. Back to Top

Georgia is the only state in the southeast and one of only fourteen or so that continues to levy an ad valorem tax on inventory. The inventory tax hits retailers particularly hard for many reasons. The inventory tax must be paid without regard to profitability; discriminates irrationally and does not affect all businesses in an equal manner; and, it often encourages businesses to house inventory outside the state where the inventory tax can be avoided. GRA believes that consideration should be given to exempting business inventory from ad valorem taxation, or at the very least steps should be taken to begin a phase out or scaling back of this discriminating, regressive tax. Back to Top

From time to time utility companies in Georgia, regulated by the Public Service Commission, apply for increases in their rate structure. GRA feels that the Public Service Commission should always decide if increases are justified.

GRA also feels that no category of business should subsidize another category of business in the utility rate structure. GRA firmly believes that retailers currently pay more than their fair share in percentages of utility rates. We therefore strongly support proper adjustments so that retailers would pay no more than their fair share of utility costs.

The deregulation of the natural gas industry in Georgia has been plagued with problems and met with significant complaints from consumers. As a consequence, the issue of deregulation, or "retail wheeling" has been delayed in Georgia. When the electric deregulation debate resumes, GRA will monitor this issue with a view toward assuring equitable treatment for Association members in all electricity user classes. Back to Top

The Georgia Retail Association strongly supports a workers' compensation system that assures that employees who are seriously injured and prevented from returning to work will be properly compensated while also preventing those employees who suffer less serious injuries and return to their jobs from collecting workers' compensation unless they suffer a wage loss.

GRA opposes any "bottle bill" legislation which would require mandatory deposits on certain types of beverage containers, forcing GRA's member food stores to become collection centers for the return of these containers. Such a deposit system for the collection of beverage containers creates health and safety hazards for food stores, not to mention the economic consequences of providing for storage, sorting, counting, bookkeeping, transactions, etc. associated with container collection. 'Bottle bills' in other states have not produced significant waste reduction and in many cases have compromised local recycling programs by removing a valuable waste commodity from the collection system. Back to Top

GRA supports the concept of providing unemployment compensation benefits to individuals who are unemployed through no fault of their own. Unemployment compensation should not be considered a form of welfare but temporary financial assistance for unemployed individuals actively seeking full-time employment.

GRA also supports the concept of experience-rating employers' tax rates. Experience-rating means that those employers using the system should bear the applicable costs. GRA feels that socialized cost (those benefits not charged to a particular employer) should be identified separately, and credited to the employers' reserve account. Back to Top

Retailers in Georgia continue to be plagued with bad checks written for merchandise as a payment on credit, or as a convenience to customers. Georgia law presently authorizes the prosecution of persons who issue bad checks, but many such prosecutions are either not pursued or are dismissed because they are not considered a priority in an overburdened judicial system.

GRA strongly favors strict enforcement of Georgia's bad check laws as a deterrent to this crime. GRA supports legislation authorizing the courts to recognize practical means for identifying writers of bad checks, consistent with the requirements of due process. GRA further supports legislation which would require mandatory fines and jail sentences for repeat offenders. Back to Top

GRA continues to believe that the consuming public is best served by specific legislation tailored to particular problem areas - legislation which provides relatively precise guidelines to the business community in determining what practices are lawful and what practices are not lawful. GRA feels that consumer legislation should perform a preventive function, precisely specifying those practices which are forbidden so that the retailer may plan his advertising and sales promotions accordingly. In 1975, the Georgia Retail Association helped write the state's Fair Business Practices Act. This Act prohibits specific trade practices which are recognized as deceptive and fraudulent. In addition, it provides the Governor's Office of Consumer Affairs with investigative powers under conditions designed to assure the business community its right to due process.

GRA supports this Act and works closely with representatives from the Governor's Office of Consumer Affairs to help protect Georgia's consumers from unscrupulous business practices. In addition, GRA will continue to work closely with officials of the Georgia Department of Agriculture to see that Georgia's food retailers receive fair treatment. Back to Top

Efforts continue to be advanced at the federal and state levels to repeal section 14(b) of the Taft-Hartley Act, which authorizes individual states to enact legislation guaranteeing their citizens the right to work without mandatory membership in a labor union organization.

GRA feels that minimum wage increases must be restrained and that hikes in minimum wage levels can actually produce more harm than benefit. As the prescribed minimum wage levels increase, more and more of the nation's work force, particularly the young and unskilled, find themselves unemployable.

GRA opposes the concept of a mandatory minimum wage at both the federal and state levels. Contrary to all too common thought, this position is not inconsistent with the interest of the work force. To make it possible to employ the young and unskilled, this position would advance the interests of both employees and employers. Back to Top

GRA believes that tamper-resistant packaging regulations by the Food and Drug Administration (FDA) preempt state and local packaging requirements. To insure the safety of drugs and cosmetics marketed, a uniform standard is imperative. The FDA's tamper-resistant packaging regulations should be that standard. Back to Top

With the introduction of electronic scanning systems, the retail industry has made significant strides in operating efficiencies which benefit both the retailer and the consumer. With a print-out tape that itemizes the purchases made, the consumer is assured of accuracy in charges for merchandise. Further, the operating cost savings produced by these systems result in lower prices to the consumer.

GRA supports the expanded use of scanner technology. GRA opposes legislation which would restrict the use of electronic scanning systems or add unnecessarily to the retailer's cost of operation (such as requiring placement of a price on each individual package). Back to Top

GRA encourages any voluntary steps in unit pricing by the retail industry, but opposes any statutory requirement of unit pricing as unreasonable and unnecessary. Back to Top

In recent years, open dating of retail merchandise, particularly in the food area, has increased considerably. The trend toward open dating has been on a voluntary basis, without the influence of legislation or regulation. Back to Top

GRA believes that a need for further extension of open dating has not been established. GRA would, therefore, oppose any proposal which would establish regulation in this area. Back to Top

GRA opposes any law or mandatory regulation which would restrict the use of the telephone in the ordinary conduct of business. Back to Top

GRA supports the concept that the State Board of Pharmacy be composed of pharmacists representing independent and chain drug stores, hospitals, and one member of the public. Back to Top