This is the Legislative Week 7, 2015 Edition of the Council's "Under the Gold Dome," a weekly publication covering the 2015 Georgia General Assembly Session.  As a reminder, this publication comes out each Friday during the Session. 

The pace was slower this week at the Capitol, due to the inclement weather, but not slow enough to keep new legislation from being introduced, particularly House Bill 445, which begins a much needed tax policy conversation that after the transportation issue is the next big discussion on the horizon for next Session .

 

"MORE TAKE HOME PAY ACT"

 

The "More Take Home Pay Act", introduced this week, House Bill 445 by Rep. John Carson, would create a single income tax rate of 4%, down from the current 6%, increase the state sales tax from 4% to 5%, and eliminate from the tax code of a number of current exemptions and would bring back the grocery tax over a three year phase in period, while eliminating certain tax credits. 

 

HB 445 seeks to reform Georgia's tax system, allowing taxpayers to keep more of their  income and preserving Georgia's status as the number one state to do business. We will see a substitute next week that will include the lowering of the state coporate income tax to 4% in addition to state income tax.

 

Under the proposed bill, families could keep more of their income by lowering the personal and business tax rate.  Middle-class Georgia households making $29,500 or more will see an increase in take home pay.  Further, tiered income tax brackets and certain tax loopholes will be eliminated, whereas income tax deductions and exemptions will remain unaffected.

 

Encouraging job growth and promoting fairness in the tax system by broadening the tax base serves is a purpose of the bill.  The bill replaces revenue by shifting to a broader consumption-based model.  To ensure responsible budgeting and revenue neutrality, the Act proposes a low-tax sales tax increase and additional low rates on stable and predictable goods.  Moreover, certain taxes, like franchise fees, that discourage business growth in the current version would be eliminated.

 

Highlights of the bill include:

  • Households making $29,500 or more will see an increase in take home pay;
  • Households bringing in $48,000 (the median Georgia household income) will keep $400 extra annually;
  • Reduces income tax rate to 4% over a period of three years (2016: 4.5%, 2017: 4.25%, 2018: 4.0%);
  • Keeps itemized deductions and personal tax exemptions;
  • Raises general state sales tax by 1% on January 1, 2017, which will raise the current tax of 4% to 5%;
  • Phases in a grocery state sales tax over a four year period (2016: 0%, 2017: 3%, 2018: 4%, 2019: 5%) with each 1% contributing $130 million to the state budget.  
  • Food stamp purchases will be exempt from the grocery tax;
  • Implements a flat communications service tax beginning on January 1, 2016: state telecom: 5%, state cable: 5%, state direct broadcast satellite (DBS): 7%, local telecom: 1.25%, school telecom: 0.75%, local cable: 2%;
  • Increase the current cigarette excise tax over three years (2017: $0.45, 2018: $0.55, 2019: $0.65)

According to the Tax Foundation, Georgia's individual income tax system is divided into six brackets with a top tax rate of 6% - ranking Georgia as the 23rd highest among states levying an individual income tax in the Untied States.  Georgia's corporate income tax is also a flat 6% tax rate, the 13th lowest among states levying a corporate income tax.  Several states have already eliminated their state income taxes.  In FY 2013, seven states - including Florida and Texas - had completely eliminated their individual income tax, while Tennessee and New Hampshire have chosen only to tax interest and dividend income but not to tax wage income.

 

On the corporate income tax front, three states - Nevada, Washington, and Wyoming - have eliminated corporate income tax, and Texas's margins tax is not classified as corporate tax revenue.  Mark Rider, associate professor of economics at Georgia State University, said that eleven other states are considering similar tax reforms shifting away from income tax towards more consumption tax.  One of those states is North Carolina - a competitor of Georgia's which reduced its state personal income tax rate last summer.

 

Reducing the income tax in Georgia can help bolster the state's competitiveness in attracting and keeping businesses and individuals. The legislation will begin a conversation that will likely continue into the 2016 Session.  The Council will provide input into the legislation throughout the process to ensure it encourages job growth and development, while reforming our current taxation system.

 

TRANSPORTATION

 

On the transportation front, House Transportation Chairman and House Bill 170 sponsor Jay Roberts offered a preview of changes that are set to occur next week in the House Transportation committee to the legislation before it goes to the House floor.

 

Changes to the current version are expected to inlclude:

  • Extension to July 1, 2016 for collection of taxes on motor fuel for LOST,  ELOST and HOST taxes (from July 1, 2015 in current version);
  • MOST will stay at the proposed 1.25% but will not be collected on motor fuel;
  • Allowance of collection of taxes on diesel fuel;
  • Transportation projects will not be considered Level 1 projects

To continue to keep Georgia as a the leading state for new business,  as this bill continues to move forward through the General Assembly, we are asking Council members to contact their legislators. Let them know the development community stands by to support them as they address this issue and make the tough decision. When elected officials hear from Council Members, who are in the weeds daily in economic development, that truly makes a difference.  The Georgia Chamber of Commerce has established a simple Action Center Page, which allows business and development community representatives to send a quick message of support to their State Representative and Senator.  To utilize this convenient and easy website, click HERE.
 

Additionally, you can contact James Touchton at the Council at JT@CouncilforQualityGrowth.org and he will provide you with a pre-written email for Council Members to be emailed directly to their legislators. To find out who your Ga. General Assembly elected officials are, click HERE.


GA. GENERAL ASSEMBLY SCHEDULE

The House and Senate have set a schedule that has the legislature in Monday-Thursday next week ending at Legislative Day 27 on Thursday. "Crossover Day" Day 30 is set for March 13th with the current schedule set to "Sine Die" Day 40 on April 2nd.  To view the full legislative schedule, click HERE

--------------------------------------------------------------------
Council for Quality Growth Publishes Op-Ed in the Atlanta Business Chronicle in Support of House Bill 170, the Transportation Funding Bill


Georgia's billion dollar-plus and growing annual funding shortfall to adequately maintain and improve our state's transportation system is a major threat to our economic competitiveness. With a whopping 54 percent of state transportation funding coming from the federal level, the problem promises to worsen if we cannot become more self-sufficient.

 

While other states are investing in their transportation infrastructure, Georgia is at risk of losing our competitive edge. All of Georgia's neighboring states-our key competitors for job creation-spend nearly twice as much per mile on roadway maintenance and they continue to invest in new construction. Georgia ranks 49th in the nation in per capita transportation spending.

 

If we fail to address the funding gap, it will become harder for employees to get to work and for freight to move to and from our ports and international airport. It will also impact our citizens' safety and overall quality of life. And-we also need continued attention to ALL transportation options and modes, including a serious focus on transit. There is a reason we have seen numerous major corporate relocations in our region to sites with transit access.

 

The current transportation funding proposal, known as House Bill 170, or HB170, is the result of a year-long study process to address the existing budget shortfall and reduce the maintenance backlog and 50-year repair and improvement cycle. It provides the funding that Georgia needs to remain competitive for investment and job growth in today's economy.

 

If this bill is approved by our legislature, taxes collected from transportation can only be used for transportation. It will reduce funding instability resulting from fluctuating gas prices and federal funding. GDOT will be able to speed up the maintenance cycle for roads and bridges throughout the state and also move forward on projects included in the Statewide Strategic Transportation Plan. The passage of this bill will result in true metamorphosis to the structure currently in place, and will provide long-term and assured funding flow.

 

The Council for Quality Growth-comprised of more than 250 member companies in the growth and development industry in the Metro Atlanta Region-supports HB170 as part of a multi-pronged solution to the state's transportation and infrastructure needs.

 

Council members were involved in more than a billion dollars of new private construction and development last year, and our public utility and Community Improvement District members have contributed tens of billions of dollars to Georgia's economy through infrastructure construction. In the work we do to invest in-and attract investment to-our state, we are keenly aware of the link between transportation and economic development.

 

The Council for Quality Growth stands with the Georgia Chamber of Commerce, the Metro Atlanta Chamber of Commerce and other organizations in support of HB170. As organizations responsible for protecting the interests of the businesses that drive this state's economy, we send the message to Georgia citizens that we must take this action in order to continue to attract investment and jobs to our great state.

 

We appreciate the hard work House Transportation Chairman Jay Roberts, committee members, and legislators have done to find a long-term solution to our transportation funding problem. It is crucial that a version of HB170 makes it to the Governor's desk to be signed into law. Georgia cannot afford to wait any longer.

 

Link to the Atlanta Business Chronicle Op-Ed

http://www.bizjournals.com/atlanta/print-edition/2015/02/27/robust-transportation-funding-needed.html?page=all

_____________________________________________________________


Senate Bill 4: The "BeltLine Bill"

As the cost of providing public infrastructure continues to rise and the amount of public funding available becomes more constrained, a growing number of public entities are looking for innovative ways to deliver things like trails, transit, and parks.

 


------------------------------------------------------------------------------------------

Council Supports House Transportation Funding Bill with Testimony
Council Chairman Tim Lowe provided testimony before the House Committee in support of the legislation that funds much of the $1.5 billion needed for transportation and infrastructure.




-----------------------------------------------------------------------------------------

Senate Bill 59: Public-Private Partnerships (P3)
The Council for Quality Growth, along with many partner organizations, supports Senate Bill 59, the Partnership for Public Facilities and Infrastructure Act (P3), currently sitting in the State Senate Rules Committee.  Many other states, in particular Virginia, where the models originated, have embraced greater use of public private partnerships.  As the population of Georgia continues to grow, there is an increasing need for the construction of new public facilities, including schools, hospitals, emergency response centers, prisons and courthouses.  

 Read More

------------------------------------------------------------------------------------------

  

Council for Quality Growth Spotlight:

 

A New Federal Approach to Transportation Funding

 

An immediate concern for Georgia is the dwindling resources to fund critical transportation infrastructure needs. Resolving Georgia's transportation needs by finding alternative solutions is a top priority for the 2015 legislation session. 

The state is effectively seeking an estimated $1.5 billion in new revenue for transportation infrastructure.  


------------------------------------------------------------------------------------------

Competencies and Core Education in Elementary and Secondary Education Bill Passes Senate
Senate Bill 2 was passed unanimously in the Georgia State Senate, which seeks to lessen high school drop-out rates, strengthen Georgia's workforce, and attract more businesses to the state. 

Read More
------------------------------------------------------------------------------------------
--------------------------------------------------------------------
Council for Quality Growth's Board of Directors State Government Affairs Task Force Established
The Council Board of Director's has established the 2015 Government Affairs Task Force, consisting of members of the Council Board of Directors. 

The Task Force is charged with establishing the Council's Legislative Agenda, as well as directing the Council and providing input on legislation before the Georgia General Assembly.  

Click HERE to view the full Government Affairs Task-force. 
-----------------------------------------------------------------


CLICK HERE
 to view a PDF version of the Council's Legislative Agenda.

--------------------------------------------------------------------
Georgia Senate Press Office: Senate in a Minute

During Session, the Georgia Senate Press Office films a daily recap of the Georgia Senate's actions.  


 

CLICK HERE to view the daily recaps for the 2015 Session.

 -------------------------------------------------------------------

House of Representatives Floor Notes


 

Each Session day the Georgia House publishes a recap of the legislative day that occurred in the House.  

 

CLICK HERE to view the daily recaps for the 2015 Session.

--------------------------------------------------------------------

Council's Legislative Bill Tracking
Below is a listing of filed bills, including their sponsor, location, and bill analysis.  This represents legislation the Council is actively involved with or that remains of interest to Council Members.  

If you have a specific question about a piece of legislation, email  Director of Government Affairs and Policy at JT@CouncilforQualityGrowth.org

House Bills

House Bill 4: Inter-basin Transfers
Sponsor: Rep. Harry Geisinger (R) 
House Committee: Natural Resources and Environment
Status: House Second Readers
This bill removes the restriction in Georgia law for inter-basin water transfers from all rivers with an annual average flow of 15 billion gallons of water a day,  if the county where the river flows agrees to the water withdrawal.
Council Position: Support

House Bill 14: Acceptance of Federal Funds with General Assembly Approval
Sponsor: Rep. Scott Turner (R)
House Committee: Appropriations
Status: House Second Readers
This bill would prohibit any local government or agency or state agency, bureau, board or commission, public entity, department or office from accepting federal funds without the expressed approval of the General Assembly.  This could be interpreted to include Community Improvement Districts.
Council Position: Oppose

House Bill 21: Transit Authority
Sponsor: Rep. John Carson (R)
House Committee: Transportation
Status: House Second Readers
This bill removes the population threshold for a local government to form a transit authority, changes the definition of "metropolitan area" to include an unincorporated city and the area "suburban to such city" and requires a new transit authority in a municipality to enter into an intergovernmental agreement with an existing transit authority before its formation.
Council Position: Support

House Bill 27: Creation of City of South Fulton
Sponsor: Rep. Roger Bruce (D)
House Committee: Pre-filed
Status: No Committee Assignment
This bill creates a charter for the proposed City of South Fulton, which would be subject to voter approval in a local election.
Council Position: Neutral

House Bill 33: Code Enforcement Officers
Sponsor: Rep. Tom Taylor (R)
House Committee: Judiciary Non-Civil
Status: Withdrawn 
This bill makes it a misdemeanor to hinder or obstruct a code enforcement officer in the discharge of their duties.
Council Position: Oppose

House Bill 49: Electronic Tax Bill Delivery
Sponsor: Rep. Brett Harrell (R)
House Committee:  Ways & Means
Status: Senate Read and Referred
This bill allows a local tax commissioner or collector to send, at the request of the citizen, their tax bills electronically. 
Council Position: Support

House Bill 60: Motor Fuel Tax and State Income Tax
Sponsor: Rep. Ed Setzler (R)
House Committee: Transportation
Status: House Second Readers
This bill would eliminate the "4th" penny on gas and shift it to the motor fuel tax, currently at 3%, while gradually raising the fuel excise tax from 7.5 cents to 22.5 cents by 2022 and a gradual decrease of the state's income tax rate to a flat 5.5% by 2022, down from the current rate of  6%.
Council Position: Support

House Bill 97: Prohibits Non-Disclosure for Local Agencies
Sponsor: Rep. Scot Turner
House Committee: Governmental Affairs
Status: Withdrawn

This bill prohibits local agencies from entering into non-disclosure agreements. According to the bill, all agencies shall fully disclose without delay, any communications regarding any terms and conditions of any agreement, incentive or offer made or entered into by the agency, directing the Attorney General to sanction any individual, on behalf of an agency, who enters into a non-disclosure agreement in violation of this proposed law. Furthermore, it allows any citizen, in addition to the Attorney General, to initiate civil action to compel the disclosure of any matters covered in a non-disclosure. 

Council Position: Oppose

House Bill 116: Underground Water Supply Protection Act of 2015
Sponsor: Rep. Alex Atwood
House Committee: Natural Resources
Status: House Second Readers
This bill would prohibit the use of water aquifers in 11 coastal counties. While this has a local impact as of now, the Council has concerns this could have state-wide implications.
Council Position: Oppose

House Bill 170: Transportation Funding
Sponsor: Rep. Jay Roberts (R)
House Committee: Transportation
Status: In House Committee

Currently, the Bill:
  • Calls for the conversion of the sales tax on motor fuel, currently at 4% to an excise tax, adjusted annual to keep pace with fuel efficiency of vehicles to 29 cents a gallon.
  • Phases out all local sales taxes on motor fuel (through local SPLOSTs). This allows local governments to honor their bond obligations and delivery of projects already approved by their voters.
  • Future Special Local Option Sales Tax (SPLOST) and Education Special Local Option Sales Taxes (ESPLOST) may be levied on motor fuels but the portion of revenue generated from gas taxes must be used for transportation purposes. 
  • Any collection of future MOST taxes will now be collected at 1.25% versus the current 1%.
  • Repeals the $5,000 tax credit for the purchase of electric vehicles.
  • Expands the definition of transportation purposes to include roads, bridges, public transit, rails, airports, buses, seaports, and all related infrastructure and services necessary to provide access to transportation facilities.
  • Removes the Governor's ability to suspend collection of motor fuel and aviation fuel taxes, except when a state of emergency is declared.
Council Position: Support

House Bill 174: Urban Redevelopment Law
Sponsor: LaDawn Jones (D)
House Committee: Transportation
Status: House Second Readers

This legislation revises terminology within the Urban Redevelopment Law. Specifically, the outdated terms "Slum Area" and "Slum Clearance and Redevelopment" are replaced with  "Pocket of Blight" and "Pocket of Blight Clearance and Redevelopment" respectively. It also eliminates the definition of slum area and adds new definitions to the new terms.

Council Position: Evaluating

 

House Bill 213: MARTA 50/50
Sponsor: Rep. Mike Jacobs (R)
House Committee: Transportation
Status: House Committee Favorably Reported by Substitute
This bill calls for an independent auditor to complete an audit every four years. A complete report of the findings would be filed with the Governor, the State Auditor, and the chairperson of MARTOC, allowing MARTA to lift the 50/50 revenue split. However, if an independent management audit was due but not submitted, then the 50% restriction will remain intact. Also, the bill proposes elimination of the Board's ability to reserve any amounts that could have been used to subsidize operations that were unused.
Council Position: Support

House Bill 214: MARTA/GDOT Commissioner
Sponsor: Rep. Mike Jacobs (R)
House Committee: Transportation
Status: House Committee Favorably Reported by Substitute 
This legislation restores voting privileges on the MARTA Board to the GDOT Commissioner until at least 2017.
Council Position: Support

House Bill 215: Equalized Homestead Option Sales Tax Act of 2015
Sponsor: Rep. Mike Jacobs (R)
House Committee: Ways & Means
Status: House Committee Favorably Reported Substitute
The bill will add a one-cent Special Purpose Local Option Sales Tax (SPLOST) and by reorganizing the current Homestead Option Sales Tax (HOST). Currently, HOST is only applied to homes within unincorporated county limits, but the proposed bill seeks to apply this tax to all homestead properties in the county.  

The legislation proposes an increase to an 8% sales tax, and would eliminate direct HOST funding to cities. The additional penny increase would allow the full amount of HOST proceeds to aid the property tax of homeowners. Though nothing would be distributed directly to DeKalb's incorporated cities, the relief offered by the tax increase would be distributed equally to both city and unincorporated residents.

Council Position: Evaluating

House Bill 397: State Soil and Water Conservation Commission
Sponsor: Rep. David Knight (R)
House Committee: House Hopper
Status: House Second Readers
This bill assigns the State Soil and Water Conservation Commission to the Department of Agriculture, changes the appointments the the Governor to 5 state-wide at large seats; removes funding ability for water reservoirs and requires oversight and final approval by the Erosion and Sediment Control Overview Council.
Council Position:  Evaluating

House Bill 445: More Take Home Pay Act
Sponsor: Rep. John Carson (R)
House Committee: Ways & Means
Status: House Second Readers

Currently the bill:
  • Cuts the income tax burden on Georgia families by over $2.5 billion
  • Households making $29,500 or more will see an increase in take home pay
  • Households bringing in $48,000 (the median Georgia household income) will keep $400 extra annually
  • Reduces income tax rate to 4% over a period of three years (2016: 4.5%, 2017: 4.25%, 2018: 4.0%)
  • Keeps itemized deductions and personal tax exemptions
  • Raises general state sales tax by 1% on January 1, 2017, which will raise the current tax of 4% to 5%
  • Phases in a grocery state sales tax over a four year period (2016: 0%, 2017: 3%, 2018: 4%, 2019: 5%) with each 1% contributing $130 million to the state budget.  Food stamp purchases will be exempt from the grocery tax.
  • Implements a flat communications service tax beginning on January 1, 2016: state telecom: 5%, state cable: 5%, state direct broadcast satellite (DBS): 7%, local telecom: 1.25%, school telecom: 0.75%, local cable: 2%
  • Increase the current cigarette excise tax over three years (2017: $0.45, 2018: $0.55, 2019: $0.65)

Council Position: Evaluating




Senate Bills

Senate Bill 2: Competencies and Core Curriculum in Elementary and Secondary Education
Sponsor: Senator Lindsey Tippins (R)
Senate Committee: Education
House Committee: Education
Status: House Second Readers
To read analysis of this legislation, click HERE 
Council Position: Support

Senate Bill 4: Surface Transportation Projects in Urban Redevelopment Areas
Sponsor: Senator Steve Gooch (R)
Senate Committee: Economic Development
Status: House Second Readers
This bill allows for surface transportation projects in Urban Redevelopment Areas. It also expands the projects that fall under the urban redevelopment provisions to include transit facilities and improvements, sidewalks, streetscapes, trails, and bicycle facilities.
Council Position: Support

Senate Bill 36: Prohibits Aquifers in Certain Coastal Counties
Sponsor: Senator William Ligon
Senate Committee: Natural Resources
Status: Senate Read and Referred
This bill would prohibit the use of water aquifers in 11 coastal counties. While this has a local impact as of now, the Council has concerns this could have state-wide implications.
Council Position: Oppose

Senate Bill 59: Partnership for Public Facilities and Infrastructure Act
Sponsor: Senator Hunter Hill (R)
Senate Committee: Rules Committee
Status: Senate Read Second Time

The bill would amend Georgia law to allow for public agencies to engage with private-sector parties in public-private partnerships to meet current and future needs for government facilities and infrastructure. This would allow private firms to submit unsolicited proposals for projects that have been identified as a public needs.

Council Position: Support

 

Senate Bill 85: Development Authorities

Sponsor: Senator Brandon Beach (R)

Senate Committee: Economic Development

Status: Senate Committee Favorably Reported

This bill is intended to rectify an internal inconsistency within the definition of "Project" in the Development Authorities Law (the "Law").  This definition in the current version of the Law contains both a lengthy listing of categories of allowable projects, as well as a broad discretionary provision, which was included as a subsequent addition to the law in order for this definition to mirror the comparable provision in the Downtown Development Authorities Law.  

 

By deleting the older, specific, definitional provisions, while retaining the general discretionary provision already in the law, SB 85 would eliminate unnecessary confusion and debate, without seeking to change past practices or expand or reduce any development authority powers.

Council Position: Support

 

Senate Bill 101:
Soil Erosion and Sedimentation

Sponsor: Senator Ben Watson (R)

Senate Committe: Natural Resources

Status: Senate Committee Favorably Reported by Substitute

The bill provides for a buffer against coastal marshlands within which certain land-disturbing activities are prohibited. The buffer would be measured in the same way the 25-foot buffer is laid out in the Coastal Marshlands Protection Act, with a few exceptions established.

Council Position: Support

 

Senate Bill 142: Permits for Infrastructure
Sponsor: Senator Brandon Beach (R)
Senate Committee: Regulated Industries and Utilities
Status: Senate Read and Referred
This bill regulates procedures governing applications for zoning and permits for critical infrastructure projects. This addresses local governments and specifically states that "no local government shall provide for a moratorium with respect to any critical infrastructure projects" defined as:

(A) Electrical power transmission lines;
(B) Electrical power substations;
(C) Water and sewage treatment facilities;
(D) Water reservoirs, water storage facilities, and sewer lines;
(E) Cellular telephone towers and emergency 9-1-1 system facilities;
(F) Natural gas transmission pipelines and power stations; or
(G) In-ground fiber optics systems.

 

Council Position: Evaluating

Senate Bill 170: Procedures for Disposition of Property

Sponsor: Senator Brandon Beach (R)

Senate Committee: Transportation

Status: Senate Read and Referred

When property is acquired for public road purposes but later abandoned, the current law requires that private property owners sharing a common boundary must be notified.  Under the proposed bill, however, if the acquired property is located within a subdivision with a duly formed property owner's association, notice of abandonment of the property may be provided to the property oner's association in lieu of notice to the individual owner.
Council Position: Support

 

Senate Resolution 43: Senate Special Tax Exemption Study Committee

Sponsor:  Senator John Albers (R)

Senate Committee: Finance

Status: Senate Read and Referred 

This bill creates a Study Committee to examine the current state tax exemptions and the impact on the Georgia economy, in order to understand the value and assess which exemptions help stimulate the state's economy and benefit all Georgians through job creation.

Council Position: Support

February 27, 2015

The Council for Quality Growth | 770-813-3370 | jt@councilforqualitygrowth.org 
http://www.councilforqualitygrowth.org
5901-C Peachtree Dunwoody Road
Suite 500
Atlanta, GA 30328