Georgia’s tax structure will go unchanged for at least another year. The controversial House Bill 385, which included sweeping changes recommended by the 2010 Special Council on Tax Reform and Fairness for Georgia, did not make it out of committee by “Crossover Day” in the General Assembly March 16.
That was the final day a bill entered in one house of the legislature could be approved and sent to the other house.
“HB 385 did not pass,” noted Rep. Tommy Benton. “We’ll have to vote on it, so we’ll vote on it next year.”
Among the bill’s provisions were expansions of the state sales tax to cover groceries and extending the tax to cover a large number of currently untaxed services, from cell phone service to haircuts. In exchange, the bill would have reduced the level of the state income tax.
The bill languished as even its Republican backers balked at any “tax increases,” even those purportedly offset by reductions in other taxes. While there was talk of breaking the bill’s provision out piecemeal, that can only happen if the House votes the bill down next year, according to Benton.
On the Senate side, SB 159 sponsored by State Senator Frank Ginn also failed to clear the Senate in time to be taken up by the House. That bill would have let governments and developers keep tax incentives offered to new businesses secret from the public.
One of the surprises — at least to Benton — was that the Senate approved the bill authorizing local governments in areas where alcohol is sold by the package to hold referendums to allow the sale of alcohol by the package on Sundays.
“I was surprised when they brought it out on the calendar,” Benton said. “We heard it Tuesday, and it surprised us all. We didn’t think they were going to bring it out. I don’t know whose arms got twisted, but apparently enough did that they passed it by one vote.”
Benton said he planned to vote in favor of the Sunday sales bill. The House approved the bill Tuesday
“In order for you to have a vote, I’ve got to vote yes,” he explained, adding, “I don’t think there’s any community in Jackson County that would pass it now, but it’s strictly up to them.”
The Jackson County Board of Commissioners could call for a county referendum, and the city councils of any municipality that already has package sales could do the same by majority vote.
