The Senate approved a resolution Monday that would allow voters to decide whether to amend the state constitution to eliminate a state property tax levy.
Senate Resolution 783, introduced by Sen. Bill Heath, would not affect local governments' ability to levy the taxes.
Previously approved legislation has already set the stage for a full phase-out of the state tax levy by Jan. 1, 2016. Heath’s bill would make the phase-out permanent.
“In a time when the federal government continues to impose increasingly heavy tax burdens, preventing future tax increases at the state level is the right thing to do,” said Heath, R-Bremen. “Many claim the ad valorem tax on one’s home to be the most egregious tax Georgia collects.”
At its peak the state levy generated $80 million in revenue, Heath said, a pittance compared with the state’s roughly $20 billion budget.
The resolution passed 38-13, despite objection that it could limit Georgia’s revenue options and hurt some of its neediest residents.
“As we eliminate different ways we can raise taxes, my concern is that we put everything on a consumption tax, a sales tax,” said Sen. Steve Henson, D-Tucker. Consumption taxes put a greater burden on low-income earners than other types of taxes, he said.
“It’s not good practice of government to take options away before you address options holistically or completely,” Henson said.
The legislation now moves to the House for consideration.
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