WEEKLY LEGISLATIVE REPORT - January 30, 2009
House considers property tax legislation
Property taxation moved to the top of the legislative agenda in the House of Representatives this week. A majority of House members voted to approve HB 143, which would, after this year, likely eliminate the $428 million Homeowner Tax Relief Grants pledged to homeowners since 1999.
These grants are passed on to local governments as tax reductions for property owners. Under HB 143, future Homeowner Tax Relief Grants would be subject to revenue triggers, and not having these grants go to local governments means homeowners could pay an additional $200 to $300 in property taxes, beginning with the 2009 tax bills.
The legislation now goes to the Senate for its consideration.
A better alternative is HR 7, which would amend the Constitution to require the funding of homeowner tax relief grants every year by the General Assembly. Under HR 7, the homestead exemption could be no less than $8,000 and no more than $18,000 of the assessed value of a taxpayer's homestead or the taxpayer's ad valorem property tax liability on the homestead, whichever is lower.
The House Ways & Means Committee favorably reported a proposed constitutional amendment, HR 1, which would limit the annual increases on the reassessment valuation of both residential and nonresidential property to 3 percent, or the rate of inflation, whichever is lower.
Under the proposed change, property values could be reassessed upon the sale or transfer of the property at fair market value, which would not exceed the sales price. The amendment would also ratify property tax freezes and limitations already in place in some counties.
Supporters of the legislation claim HR 1 would bring an end to the so-called "back-door" tax increases by local officials who use valuation assessment hikes to bring in more revenue without raising the millage rate. Opponents contend that local government revenue decisions should not be mandated from the state level and should instead be left up to county commissioners and school board members who are more familiar with the needs of their communities.
Dominating the news in Georgia this week was the U.S. Food and Drug Administration's confirmation that an outbreak of salmonella poisoning was caused by peanut butter products originating from the Peanut Corporation of America manufacturing facility in Early County, leading to a national recall of those products.
It is important to know that the major national brands of jarred peanut butter available at grocery stores are not affected by the recall, and that the outbreak was caused in the manufacturing process at one location and is not a reflection on Georgia's peanut crops, which are safe.
Lawmakers have responded to the situation by questioning the Georgia Department of Agriculture over its inspection procedures at such manufacturing plants, as well as the introduction of legislation that would require more frequent food safety testing and speedy reporting of any tests that show contamination.
