ATLANTA — House members on Tuesday passed what they touted as the largest tax cut in Georgia’s history in a last-minute resuscitation of Speaker Glenn Richardson’s heavily revised tax reform plan.
Democrats had blocked a similar proposed constitutional amendment last week, but leaders in both parties reached a compromise on the measure as the crossover day deadline pressed. The deadline is when a bill must have passed at least one chamber or be forgotten until another session.
The bill approved would eliminate property tax on cars and cap the amount of annual growth allowed on property value assessments used for calculating taxes.
“Democrats are not against taking ad valorem tax off vehicles,” House Minority Leader DuBose Porter said.
“We were against some things that would hurt local governments,” Rep. Porter, D-Dublin, said about the bill blocked last week.
The new version that passed the House 166-5 on Tuesday didn’t include a limit on local government’s ability to raise property taxes, which Democrats said would tie local officials’ hands in finding money to fund already shortchanged schools.
The constitutional amendment passed Tuesday would:
n Phase in an elimination of taxes on personal vehicles starting July 1, 2009, amounting to a $1 billion tax cut on 7 million vehicles in the next two years.
n Cut the state portion of property taxes, estimated at more than $90 million annually statewide.
n Freeze property tax assessments at 2008 values and cap annual value increases to 2 percent on homes and 3 percent on nonresidential property.
The House also passed a trauma care funding bill attached to the tax reform plan.
If voters approve constitutional amendment in November, a $10 fee would be levied on vehicles, with the money going to a trauma care fund. That would mean an estimated $70 million a year to the state’s struggling trauma centers.
But before voters see it on a ballot, the Senate must give two-thirds majority support before the last 10 days of the session are gone.
Senate leaders said Tuesday they look forward to taking up the tax reform legislation.
“The House has started this debate, and the Senate will make time for meaningful and substantial deliberation on tax relief to benefit our economy during this economic downturn,” Lt. Gov. Casey Cagle said in a statement.
“Make no mistake, we have an equal constitutional role with the House on fiscal issues, and the upper chamber will play a significant role in considering, and hopefully passing, an economic stimulus package that meaningfully benefits every Georgia citizen,” he said.
The tax cut vote came a day after Gov. Sonny Perdue reduced revenue projections for the coming year, citing a state economy slowing even more than expected. House leaders said a gloomy economic outlook makes it “the right time” to pass tax relief.
“When the government returns taxpayer money, the economy grows,” Speaker Pro Tem Mark Burkhalter said.
The proposal bears scant resemblance to Speaker Richardson’s original attempt to do away with all property taxes and replace the revenue with an expanded sales tax. That met with opposition from local officials afraid of losing control over a large chunk of their revenue.
“I have tried, and I have tried, and I have tried, and I’m going to try one more time again,” Speaker Richardson told House members before the vote. “I fundamentally believe people of state of Georgia deserve relief from property taxes.”
And he got it in right under the wire.
With the crossover day incentive for action, both chambers put in a lengthier than normal session. The House pressed on through the night.
Sen. Don Thomas, R-Dalton, was pleased with the unanimous passing of a bill to encourage primary and remote stroke centers through state grants.
The remote centers could take scans of a stroke patient’s brain and send it to a primary center to diagnose the cause of the stroke and suggest medication, saving valuable minutes in a life-threatening situation, he said.
“This will save so many lives,” said Sen. Thomas, who said the bill should pass the House easily because it was a result of a joint study committee on stroke treatment.
A bill co-sponsored by Rep. Barbara Massey Reece, D-Menlo, to require Braille instruction for blind students passed the House. She said the bill is important because knowing Braille significantly increases a blind person’s chance in succeeding in the job market, and many schools in the state have strayed from teaching it.
A constitutional amendment to define life as beginning at fertilization sponsored by Rep. Martin Scott, R-Rossville, didn’t make it. The legislation, which was an attempt to challenge abortion rights and raise questions about certain scientific fields, was tabled in subcommittee in February and wasn’t revived.
Rep. Scott said he’s still looking for bills this session on which to possibly attach similar language although his legislation is dead.
“We will never give in,” he said. “We’ll keep fighting.”
Here’s how some legislation fared on “crossover” day at the Georgia state Capitol:
IN THE SENATE:
—A bill that would require the state’s public retirement funds to identify companies doing business with Iran and, in some cases, divest those holdings passed 45-6. Supporters said the measure would put pressure on Iran to halt their nuclear program. Opponents called it saber rattling.
—Legislation that would provide scholarships for students with a parent killed or wounded in military combat passed unanimously. It’s expected to cost the state between $800,000 and $1.3 million.
—Troubles in the Clayton County school system prompted passage of a bill that would allow voters to oust school board members if the district lost accreditation. The measure, pushed by Gov. Sonny Perdue, passed 43-3.
—Motorists who injure or kill someone in a car accident could be slapped with homicide charges if they fail to stop and attempt to offer assistance under a measure that passed unanimously.
—Ultimate fighting and mixed martial arts would be regulated by the same panel that oversees boxing. But the bill that passed 49-6 would spare the lucrative wrestling industry from the same oversight.
—The interchange of I-95 and I-16 would be named after Supreme Court Justice Clarence Thomas, under a measure that passed unanimously. Thomas is a native of Pin Point, Ga., near where the two highways meet.
—Local governments would be able to boost homestead exemptions for police officers, firefighters and teachers under a resolution that passed 51-2. Local voters would have to approve the tax breaks in local referendums.
—The school bully is the target of a measure that passed unanimously. The measure would require districts to come up with specific policies to combat bullies and give immunity to those who report them.
IN THE HOUSE:
—A measure that stiffens penalties on students who falsely accuse teachers and school employees of inappropriate behavior passed unanimously. The measure allows schools to impose community service and other sanctions, as well as expel the student.
—A proposal to combine regular high school courses and specialized technical education classes was passed by the House, despite concerns from critics about its hefty price tag. Some estimates say it could cost as much as $1 billion.
—House lawmakers twice defeated a measure that would compensate billboard owners when they have to move their signs. The measure was first defeated by a 89-77 vote, and sponsors quickly called for another tally. Minutes later, it was beat back again by a larger margin: 91-74.
—Nonprofit groups that send students to private schools would get tax breaks under a measure approved by the Georgia House. It passed by a 92-73 vote, despite objections by Democrats who feared it’s another step toward publicly funded vouchers.
—The House agreed to a plan to hire a mental health ombudsman to investigate complaints of neglect and abuse in state-run psychiatric hospitals, which supporters said would offer an independent review of the state’s mental health system.
