By Ashley Speagle
Correspondent
ATLANTA -- Georgia lawmakers on Wednesday tacked a tax break for retiree income and an end to the state property tax to a bill that boosts fees on state services and hospital care.
The House and Senate passed an amended bill that phases out the income tax for senior citizens and eliminates the state's quarter-mill property tax over five years.
"This is a monumental moment," said Sen. Chip Pearson, R-Dawsonville.
He called the phase-out of the senior income tax, which he said would cost $150 million, "the beginning of a permanent phase-out of income tax in Georgia."
He said ending the state property tax would cost just less than $95 million.
"If I was to vote for this bill, I would be voting for a permanent tax elimination of both property tax and income tax," Sen. Pearson said.
Alan Essig, of the Georgia Budget and Policy Institute, said in a statement that state lawmakers this session have passed more than $600 million in tax breaks for the wealthiest Georgians.
"We must stop this seesaw act of temporary tax increases and permanent tax cuts during recessions. It is fiscally irresponsible," Mr. Essig said.
The House also gave final approval to the 2011 budget and sent it to the Senate, which has a vote tentatively scheduled Tuesday.
The original House bill, 1055, would have increased a variety of state fees to raise $90 million to help fund the budget.
Lawmakers approved a 1.45 percent fee on hospital provider services that will raise about $230 million to fund the state's PeachCare health program for the poor.
The bill goes to Gov. Sonny Perdue for his consideration.
Some Democrats questioned the legality of the bill's quick changes and lack of fiscal notes.
House Speaker David Ralston, R-Blue Ridge, said he "does not take the motion lightly" when a Democrat tried to stop the bill from reaching the floor.
"A vote 'yes' would be putting the budget in a vulnerable position because of an illegal act on behalf of this body," said Rep. DuBose Porter, D-Dublin.
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