WEEKLY LEGISLATIVE REPORT - March 13, 2009

House moves forward with tax proposals

Thursday was the 30th day of the 2009 legislative session, also known as "cross-over" day because it was the deadline for legislation to pass the House of Representatives and still be considered by the Senate this year, and vice versa. On that day, House members voted to approve several tax-related measures and send them to the Senate for its consideration.

Among these, HB 480 would eliminate the yearly ad valorem tax on automobiles that is due on the owner's birthday and replace the tax with a one-time title fee of 7 percent of the purchase price, not to exceed $2,000.

The economy would receive a boost from HB 481, which would provide a tax credit for businesses that hire unemployed workers and temporarily suspend the fees charged to new businesses for filing incorporation papers and similar business documents, and HB 482, which would eliminate the state inventory tax charged to businesses.

Reducing the number of unsold homes on the market in Georgia is the intent behind HB 261, which would provide up to $3,600 in income tax credits for buying homes over a six- month period.

Both the House and Senate approved final versions of the supplemental budget for fiscal year 2009, which ends June 30. The $18.9 billion proposal reflects approximately $2 billion in spending cuts due to a severe downturn in revenues over the past year. Additional cuts would have been necessary if not for the federal stimulus funding making its way to Georgia.

The new budget restores the $428 million in homeowner tax relief grants that had been cut by Gov. Perdue, saving the average Georgia homeowner $200 to $300 in property taxes. Also, $145 million in federal stimulus money was included to offset the governor's cuts to local school funding. The governor signed HB 118 into law Friday. Meanwhile, work continues in the legislature on the annual budget for fiscal year 2010.

Other legislative measures receiving House approval this week were:

HB 23, which would ban teenage drivers from sending text messages or making calls on their cell phones while driving.

HB 160, which would put an additional $200 fine on "super speeders," motorists who are convicted of driving more than 85 mph on a four-lane highway or more than 75 on a two-lane road. The revenues from the extra fees would go toward trauma care funding.

HB 228, which would reorganize the massive state Department of Human Resources by moving Public Health and Mental Health, Developmental Disabilities and Addictive Diseases to a new Department of Public and Behavioral Health Services. The Department of Community Health would continue as a regulatory and payer agency for Medicaid, PeachCare and the State Health Benefit Plan. The remaining Department of Human Services would oversee the Department of Family and Children Services and Aging.

HB 261, which would provide up to $3,600 in income tax credits for buying homes over a six- month span. This measure is aimed at reducing the inventory of unsold homes in the state.

HB 381, which addresses the salmonella outbreak resulting from problems at the Peanut Corp. of America plant in Early County. The bill would authorize the Department of Agriculture to deputize county health inspectors to conduct inspections and report any contamination immediately.

HB 388, which would create a legal mechanism for the "adoption" of embryos. I voted against this bill because of the chilling effect it would have on life-saving stem cell research in Georgia.

HB 400, which would enact the Building Resourceful Individuals to Develop Georgia's Economy (BRIDGE) Act to develop programs designed to improve graduation rates and better prepare students for postsecondary education and careers.

HB 480, which would eliminate the yearly ad valorem tax on automobiles that is due on the owner's birthday and replace the tax with a one-time title fee of 7 percent of the purchase price, up to $2,000.

HB 481, which would provide a tax credit for businesses that hire unemployed workers and temporarily suspend the fees charged to new businesses for filing incorporation papers and similar business documents.

HB 482, which would eliminate the state inventory tax charged to businesses.

HB 484, which would exempt the one-year residency requirement for HOPE Scholarship eligibility for the children of active duty military personnel.