FOR IMMEDIATE RELEASE - February 11, 2009

Proposal would bring in revenue without tax increase

House Democrats introduced legislation this week in an effort to put additional funds into the state's shrinking coffers by streamlining government and improving the sales tax collection process. HB 356 would help reduce the state's budget deficit, now estimated at nearly $3 billion after January revenue reports showing a 14.3 drop-off from last year.

The bill would transfer control over collecting sales taxes from the state Department of Revenue to local governments, allowing them to contract with private firms. Similar plans have been successful in other states, notably Alabama, which saw a revenue increase of over $1 billion.

Every year, the Department of Revenue leaves money on the table in uncollected sales taxes. In the current fiscal crisis in Georgia, it is the time to recover this revenue and scale down government spending at the state level. Consumers are paying sales taxes in good faith, and we need to make sure that those tax dollars are collected, so that we can avoid additional cuts in services and new tax increases.