House panel OKs speaker's tax plan


The Atlanta Journal-Constitution
Published on: 02/21/08

House Speaker Glenn Richardson's plan to eliminate school and car property taxes easily passed its first test Wednesday.

The proposal, thought to be on political life support in recent weeks, easily passed a key House subcommittee.

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"Under this plan, 2 million Georgia homeowners will see their property tax bill cut in half in 2010," said Richardson (R-Hiram). "Six million Georgia owners of motor vehicles will see their taxes eliminated."

Richardson's plan heads to the House Ways & Means Committee for another vote today and then, if approved as expected, it could be on the House floor by next week.

The speaker has been traveling the state for months calling for a property tax revolt, but his plan for changing the system has gone through many changes.

Under the latest proposal:

• On Jan. 1, property taxes on cars and trucks not used in businesses would be eliminated. Car and truck owners would begin paying a $20 fee, half of which would go to fund trauma medical care. Also, the state would begin charging a sales tax on groceries and lottery tickets. The poor would get an income tax credit to make up for having to pay the 4 percent state sales tax on groceries.

• On Jan. 1, 2010, education property taxes on homes would be eliminated, and the state would begin charging a sales tax on many services, from haircuts to legal services.

• Caps would be put both on the values placed on homes for the purpose of determining property taxes and on the tax revenue governments could get from most homes. Small increases would be allowed each year, essentially to keep up with inflation. If local governments want more, they would have to ask for voter approval.

The Senate has already passed a version of the property assessment cap. However, Lt. Gov. Casey Cagle, the Senate's president, has for months criticized Richardson's proposal to swap property taxes for charging a sales tax on more goods and services.

Also, the Senate's Republican leadership generally follows Gov. Sonny Perdue's lead on legislation, and he too opposes Richardson's plan.

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