Property Taxes are Changing in Georgia
Posted: Wednesday, February 27th, 2008, 12:25 pm EST
Category: Georgia Real Estate
Property Tax Assessment Freeze Passes 48-7
A proposed Constitutional Amendment by Senator Chip Rogers which would freeze property tax assessments statewide passed the full Senate on Tuesday. Senate Resolution 796 received bi-partisan approval and passed by a vote of 48-7.
"This legislation will bring desperately needed predictability to the property tax system. Currently Georgia property owners are subject to drastic increases in property taxes based upon the actions of their neighbors. Such a tax system is inherently unfair and demands change" said Senator Chip Rogers.
Senate Resolution 796 would freeze all property values at the 2008 assessed amount and allow for annual increases not to exceed 2% for residential property and 3% for non-residential property. The measure will require a super-majority 2/3 vote in the House. It would then be placed on the ballot in November for voter approval.
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$95 Million Property Tax Cut Measure Wins Senate Approval
The Georgia Senate has passed, by a vote of 49-4, a Constitutional Amendment (SR 859) from Senator Chip Rogers which would eliminate the state portion of the Property Tax.
Currently the state collects a one quarter mill ad valorem tax on most property in Georgia. If passed by voters in November, the tax would be eliminated saving Georgians about $95 Million in property taxes during 2010 and increasing yearly after that.
"The state of Georgia really has no business taxing property. Once a person has purchased property the state should have no claim to it." said Senator Chip Rogers, the sponsor of the bill. "This measure will also mean that hard-working Georgians get to keep more of the money they earn. I am certain that those who earned the money will know far better how to spend it than the government."
SR 859
Transparency in Government Act passes Senate
Posted: Monday, February 25th, 2008, 12:16 pm EST
Category: Georgia Real Estate
The Georgia Senate has unanimously passed a measure authored by Senator Chip Rogers (R-Woodstock) that will require all state spending be available on a searchable Web site.
Known as the Transparency in Government Act, Senate Bill 300 will allow anyone the opportunity to see where state taxpayer dollars are being spent.
"This legislation is simply good government. The taxpayers ought to have easy access to data showing where every dollar in state government is spent," said Sen. Rogers. "Public scrutiny of government spending is not only the right thing to do, but it is necessary for true fiscal discipline."
According to the Comptroller of the State of Texas, a similar transparency bill in that state saved Texas taxpayers more than $2.3 million last year alone.
The Georgia web site will be created by the Department of Audits and Accounts and must be operational by January 1, 2010.
“FairTax” in GA? Eliminating the Property Tax
Posted: Friday, July 6th, 2007, 1:07 pm EST
Category: Georgia Real Estate
Looks like the "FairTax" methodology is getting a little traction in GA. Here is an article from the Marietta Daily Journal that descibes elminating the property tax portion of our annual taxation. http://www.mdjonline.com/89/10264980.txt —————————————————————————————————————————————————- Rogers proposal likely to be DOA Friday, July 6, 2007 3:27 AM EDT Georgia legislators are at work on "a major tax overhaul that is designed to eliminate all property taxes in Georgia," says state Sen. Chip Rogers (R-Woodstock), one of the leaders in the Republican-controlled General Assembly. "The tax plan is not in its final form," he told me. "But here are the basics: no property, inventory, boat, auto, etc., taxes any longer. "The revenue would be replaced by raising state sales tax from four percent to five percent and include final retail purchase of all goods and services. In doing so we would eliminate all sales tax exemptions currently in law. "However, every person who files a Georgia tax return would receive a rebate check equal to the average sales tax paid on groceries. This would essentially keep groceries sales tax-free. It is important to note, under this plan, the sales tax is only for final consumption; therefore, businesses would not be required to pay sales tax on inputs."
The current state income tax, which now ranges from one percent to six percent, would be a flat five percent under the proposal outlined by Rogers. The key part of this proposal is the new five percent sales tax on services. The tax would, for example, apply to legal fees charged by attorneys, labor for auto repairs, air-conditioner service, plumbing, haircuts and styling, cosmetology, lawn services, medical services and even funeral costs - among "all sales tax exemptions currently in law," as Rogers said. Specifically, in answer to a question, the senator said: "In the case of an attorney, he or she would apply the sales tax to the final billable amount." Imagine what that would do to those humongous legal bills. For a corporation with a modest $300,000 in legal bills during the year, the five percent sales tax would add $15,000. The impact would be tough on major medical bills. For a surgery and hospital stay costing $50,000, there would be $2,500 added in sales tax. And you know who pays the sales tax - the consumer, the client, the purchaser, the patient and/or the insurer - not the provider of the service.
"The current tax system has many, many flaws, including the tax favored status of services over goods," Rogers said. "We often wonder why we have moved towards a service economy; one reason is its favorable tax status. Ultimately, we need a system that is flat, fair and transparent. The sales tax is all of those." Your columnist suggested if lawyers, doctors and such service providers as grass cutters and beauticians were included, the proposal would be dead on arrival in the General Assembly. "We hope not," Rogers said. "It is our belief that Georgians’ dislike (and rightfully so) of paying a tax (which they cannot control) on privately held property is more than a dislike for paying a sales tax (which they can control) on services. "It should be an interesting debate." You bet. And I still say this proposal will be DOA.
GA Traffic Counts: Free for Everyone!
Posted: Wednesday, March 21st, 2007, 2:23 pm EST
Category: Georgia Real Estate
My friend and fellow commercial agent, Wade Sonenberg of the Sonenberg Company, has recently created a mashup of Georgia DOT traffic counts and Google Maps. It is a great tool for commercial agents and good knowledge for local residents. Wade had this to say about his new mashup:
Commercial Realtors, shopping center investors, and retailers used to have only two options for finding Georgia DOT traffic counts: either pay hundreds of dollars for programs, or navigate the Georgia DOT’s web site which requires downloading programs to view maps with hardly legible names.
Now there is an easier (and free) way!
We have just introduced the “Beta” version of Georgia DOT Traffic Count Mashup, which combines Georgia’s publicly available traffic count data with Google’s easy to Google Maps interface.
Good work Wade and I am certain your visitors will skyrocket once the word is out.
No More Taxes in Georgia!
Posted: Friday, February 23rd, 2007, 2:16 pm EST
Category: Georgia Real Estate
Mitch Seabaugh, a Republican from Sharpsburg, has introduced a constitutional amendment that would eliminate state ad valorem taxes, corporate taxes and personal income taxes in favor of a higher state sales tax on goods and services. Called the Georgia One Tax, it could be on the ballots for voters in 2008 and be effective Jan. 1, 2010.
Baiscally, this is a State version of a fair tax plan, similar to John Linder’s FairTax proposal. Although Linder’s FairTax proposal would tax goods and services at 23 percent — a proposal he’s been trying to get passed for seven years — Seabaugh’s One Tax would not exceed 6.5 percent. Currently, the state sales tax is 4 percent. The move to cap the tax at that level, Seabaugh said, would be a "revenue neutral" plan and would not add any additional money to state coffers.
State Sen. Chip Rogers, R-Woodstock, who helped Seabaugh with the plan, says the proposal is nothing new, as several states don’t have income taxes. Other states that do not have income taxes are Florida and Tennessee.
I am a huge fan of the Georgia One Tax, as well as Linder’s national FairTax plan.
I encourage you all to visit FairTax.org and become involved in improving our federal tax system. On the website you will read these reasons for switching to the FairTax plan:
* Abolishes the IRS
* Closes all loopholes and brings fairness to taxation
* Ensures Social Security and Medicare funding
* Brings transparency and accountability to tax policy
* Allows American products to compete fairly
* Reimburses the tax on purchases of basic necessities
* Enables retirees to keep their entire pension
* Enables workers to keep their entire paycheck
I would also like to point out that this type of tax will garner tax dollars from those who currently do not pay federal taxes at all, such as:
* Illegal Immigrants
* Black Market Sellers (drugs, sex, etc…)
* Law Breakers who just skip out on taxes
* Unreported Income now gets taxed when it is spent
Resource: Atlanta Business Chronicle: State version of fair tax plan
