Legislators eyeing state tax makeover

By Ashley Speagle

Correspondent

PDF: House Bill 1405

ATLANTA -- A bill aimed at reforming Georgia's tax system is heading for Gov. Sonny Perdue's desk.

"This is the first and major step in overhauling an antiquated system," said Sen. Chip Rogers, R-Woodstock, who sponsored the bill in the Senate.

Under House Bill 1405, an 11-member council would recommend changes to state taxes. Then a 12-member legislative committee would turn the recommendations into bills and resolutions and guide them through the lawmaking process.

The council would include four university economists; the chairmen of the Georgia Chamber of Commerce and the state chapter of the National Federation of Independent Business and four members appointed by House and Senate leaders.

The 11th member would be Gov. Perdue, whose term as governor ends in January. But first he would have to sign the bill, which passed the Senate 34-14 and the House 111-55.

Supporters said the bill offers a chance to update the state's financial support structure.

"The best thing out of this session is the study group to look at our tax structure to look at what's fair and equitable," said Rep. John Meadows, R-Calhoun.

But others were concerned at ceding control over taxing authority.

"This really does take some power away from those of us elected?" asked Sen. Nan Orrock, D-Atlanta. "Doesn't this legislation seek to give this council a set of powers that's not typical?"

Sen. Rogers said legislators will keep control by voting on bills and resolutions.

He compared the process to the governor's Water Task Force, whose suggestions were turned into legislation on a statewide water conservation bill this session.

Tax reform bill* The 2010 Special Council on Tax Reform and Fairness for Georgians ... shall during 2010 conduct a thorough study of the state's current revenue structure and make a report of its findings no later than Jan. 10, 2011.* The Special Joint Committee on Georgia Revenue Structure ... shall during the 2011 legislative session cause to be introduced bills or resolutions incorporating without significant changes the recommendations of the council.Source: House Bill 1405

Sen. Orrock said the process would take away some of lawmakers' power to fully vet the bill in committees.

"Whatever they decide comes to you, and you can either vote it yes or no," said Rep. DuBose Porter, D-Dublin. "You don't have a reason to sit here."

Others noted that the council's make-up of mostly white men and said solutions may be one-sided.

"This is something that the people in your districts have elected you to do, and a committee should be more diverse and represent more people across this state," said Rep. Carolyn Hugley, D-Columbus.

The bill's House sponsor attested to the state's need for new tax codes.

"We don't believe our code is good enough to keep up with the growth of this state," said Rep. Larry O'Neal, R-Bonaire. "I expect their findings are going to be very enlightening."

Ashley Speagle covers the Georgia Legislature. Contact her at speagle.ashley@gmail.com.

Continue reading by following these links to related stories:

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