There has been much concern about several issues during the 2011 Legislative session.  However, we have been following four main issues closely and providing updates throughout the session.

 

First and foremost, one of the most important pieces of legislation handled by The Special Tax Council is HB 385- Revenue and Taxation; revenue structure.  HB 385 was revised to reflect new recommendations. Although the details were somewhat limited, we have a pretty good idea of what the bill will look like; these provisions, most importantly the sales tax on energy used in the manufacturing process, will be eliminated. Current tax exemptions that we get in industries under the Integrated Plant Theory legislation would become permanent in statute.  The majority of Legislators agree that the exemption for sales tax for energy used in manufacturing would be a major advantage to job creation and job retention in Georgia.

 

 

 

The following are other elements of this legislation:

�No new sales tax on groceries  

�No cigarette tax increase

�No sales tax on services, i.e. legal, engineering, haircuts, moving, and cleaning

�No sales on tax on Girl Scout cookies or goods sold by non-profit organizations i.e. AAA, country clubs, etc.

�New revenue will come from casual sales of automobiles and boats

�New sales tax on Car repairs

�Sales Tax on satellite TV and other digital communication devices

�Personal income tax currently at 6% will drop to 4.25%, but many personal exemptions will be excluded  

�Corporate income tax will remain the same at 6%

�Leaves in place the $35,000 income tax exemption for seniors

Many legislators are concerned that a vote for HB 385 would be seen as voting for tax increases.  However, the bill is drafted to be revenue neutral while providing a substantial cut in income taxes. 

 

There is usually very limited and non consequential Human Resource legislation put forth. However, our second bill of interest (HB 292- Employment security) was introduced. HB 292 would reduce the unemployment tax businesses are supposed to pay beginning next year.   

 

This legislation buys us a year's time to come up with a long-term plan best for Georgia, Labor Commissioner Mark Butler said.

 

Georgia, like many states, sought emergency assistance from Washington in December 2009 to pay the jobless. Congress helped the states with $45 billion in loans.  The state's unemployment tax is complicated.  Basically, a company pays taxes on the first $8,500 of employee's salary.  The base rates vary depending on how many workers a company lays off (from .025% to 5.4%).  Georgia's average tax rate: 1.85%, which translates into $23,588 a year for a 150 employee company.  Under current law, employers pay a 35% increase in the base tax rate to keep the trust fund solvent.   

 

HB292 would limit the increase to no more than half that amount.

 

The next points of interest are the two main immigration bills, HB 87 and SB 40.  These bills grant authority to local police to enforce federal immigration laws.  Both bills entail employers to sign on to the Federal E-Verify program. The newest version of SB 40- Public Contracts provides penalties for the failure of a public employer to utilize the federal work authorization program and includes changes to the bill that would increase the E-Verify mandate to businesses with four or more employees.  The substitute gives the Commissioner of Labor the responsibility of enforcing the E-Verify mandate.

 

Last but not least, HB 232- Lobbyists; commission salesperson not required, addresses issues of interest to Georgia's business community.  

 

1. It clarifies provisions regarding bona fide sales persons and their exclusion from the state's lobbying laws.  

 

2.  It explains who must be registered as a lobbyist.  This has been an issue that was the subject of an opinion issued by the Georgia Government Transparency and Campaign Finance Commission.  HB 232 would remove the requirement that every county staff person that speaks with a legislator must register as a lobbyist.  County staff must register as a lobbyist only if they spend more than 10% of their time lobbying or spend more than a $1000 to persuade a public officer.

 

MCAG took the lead in having this legislation changed from its original form. Originally, the requirements of the legislation would have been detrimental to member firms who do business with government agencies.

 

I am committed to keeping this association an active participant in the legislative process, and making sure our voice is heard.  If you have any questions regarding the 2011 Legislative Session, please do not hesitate to contact me.

Mark your calendar for Tuesday, May 17, and plan to be a part of the 2011 MIC Project Manager's Workshop. The workshop will focus on a look at "Six Habits of the Highly Profitable Project Manager."

The best project managers consistently have better bottom-line results than their peers. What are the habits that make this performance possible? How do they motivate labor and control the job site risks? The construction process and how these habits impact profitability will be examined so that each project manager can ensure the best possible outcome for each of his or her projects.

The instructor for the course will be Tom Williams, P.E. Tom's seminars make extensive use of case studies and real project examples. They focus on improving both job site and office productivity, while adding value to the construction process.

This workshop is ideal for company principals, top executives, foremen, and key project management staff.

There will be no MIC Management Retreat this year, so plan now to take advantage of this one-day workshop to obtain continuing education and professional development hours.

Cost of the workshop is $100 per person, which includes a continental breakfast and lunch. Class size will be limited to approximately 40 participants.

The workshop will be held at the Holiday Inn Select Atlanta Perimeter-Dunwoody at 4386 Chamblee Dunwoody Road in Atlanta, just off I-285 at Exit 30. The day will begin at 7:30 a.m. with a continental breakfast. The class will begin at 8:00 a.m. and adjourn about 4:00 p.m.

#       A Accurate Plumbing Company

         A & R Mechanical Enterprises, LLC
         ARS Mechanical, LLC
# +    Action Elec. & Mech. Contractors
         Air Duct & Mech. Component Cleaning
         AirCond Corporation
         Amason Mechanical Services, Inc.
         American HVAC
#       Art Plumbing Company

         Augusta Chiller Services

# +    B & W Mechanical Contractors
         Blue Chip Air, Inc.
         Boling Heating & Cooling, Inc.
         Brantley Services
         Building Environ. Systems Services

+       C & M Piping Solutions

         Certified Air Conditioning Company
         Clark Plumbing Company
# +    Cleveland Mechanical Services
         Crescent Mechanical Systems, Inc.
#       DNS Consolidated
         The Dickerson Group, Inc.
         Dixie Electrical & Mechanical
            Contractors of Macon, Inc.
# +    Emcon Services
         Enerfab, Inc.
         Engineered Technical Services, Inc.
         Excelco Industrial Services, Inc.
+       F & S Mechanical and Plumbing Service
#       1st  Mechanical Services
#       Fletcher Mechanical, Inc.
#       Alan Foster Plumbing, Inc.
#       Frazier Service Company, Inc.

#       Galgon HVAC & Mechanical Service
#       Greenco of Augusta, Inc.
         HVAC Control Services, Inc.
         HVAC Service, Inc.
# +    Paul W. Heard & Company
#       Honeywell, Incorporated
# +    Inglett & Stubbs, Inc.
#       Johnson Controls, Inc.
# +    K & B Mechanical Contractors

         L & C Mechanical
#       Linc Mechanical Services

         Lord Plumbing, Inc.

         M & S Specialty Welding
# +    MCI Enterprises, Inc.

         MDI Services, LLC
         MLS Concrete Drilling & Sawing
# +    Mallory & Evans, Inc.

#       Mallory & Evans Service Company
# +    Mann Mechanical Company

# +    Maxair, Inc.
         McAbee Construction
# +    McKenney's, Inc.
         Mechanical & Plumbing Solutions, Inc.
# +    Mechanical Associates, Inc.
         Mechanical Services, Inc.
         Merritt & Sons Plumbing, Inc.
         C. R. Meyer and Sons Company

         Morrison Heating & Air Conditioning
# +    Muns Welding & Mechanical, Inc.

         NAX Enterprises, LLC
         PAR Mechanical & Plumbing
         P.I.E., Inc.
#       Padgett Group
         Panola Enterprises, Inc.
# +    Patton Mechanical

         Payne Williams, Inc.
# +    Peachtree Mechanical, Inc.
# +    Player and Company
         Popham Mechanical Contractors
         Prestige Mechanical Contractors
         R & R Refrigeration

         RDH Mechanical Contractors
         REI - Ragan Enterprises, Inc.

         RTS Water Solutions
         Ragan Mechanical Contractors, Inc.
         Rome Mechanical

         Shriver Mechanical
         Siemens Building Technologies, Inc.
         Dale Sims Heating & A/C Service
# +    Specialty Mechanical Services, Inc.
         Standridge Plumbing

#       Stallworth Mechanical Contractors

         Standridge Plumbing Company
         System Controls & Services
         TA Services
#       Tenant Mechanical, Inc.
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         Trans Logic Corporation
         Viking Industrial, Inc.
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         Welding Services, Inc.

         WeldTech Services Corporation

         A. L. Williams Heating & Plumbing
# +    Willis Mechanical, Inc.

# Also Members of the Mechanical Contractors Association of Georgia, Inc.

+ Also Members of the National Certified Pipe Welding Bureau