Rep. Barbara Massey-Reece Legislative Report- Mar. 23

Rep. Barbara Massey Reece| Legislative Report | March 23, 2012

The Georgia House of Representatives voted March 20 to approve a wide-ranging package of changes to the state's tax code. Even though the bill was moved quickly to the floor and a vote called less than three hours later, it passed with a large majority after much debate. Included in HB 386, which emerged from the Special Joint Committee on Georgia Revenue Structure, are the following revisions:

• Elimination of the sales tax and ad valorem taxes paid by the owners of motor vehicles, who instead will pay a one-time title fee when they purchase a car. The fee would be 6.5 percent of the vehicle's fair market value in 2013, 6.75 percent in 2014 and 7 percent in 2015 and beyond.
• Collection of a state sales tax on internet products sold online by companies with a physical presence in Georgia.
• Elimination of the sales tax on energy used for manufacturing, agriculture and mining purposes over a four-year phase-out period.
• An increase in the income tax exemption for married couples from $5,400 to $7,400 to eliminate the "marriage penalty."
• A cap on the exemption on unearned income for retirees at the current level of $65,000.
• More limitations on the conservation easement that lowers taxes for some property owners.
• A 30 percent tax credit for film productions in Georgia.
• A sales tax exemption for new business projects with a "regionally significant impact."
• Reinstatement of the sales tax holiday periods for the purchase of back-to-school materials (Aug. 10-11 this year) and energy-efficient appliances (Oct. 5-7).
• Continuation of the sales tax exemption on jet fuel purchases, which primarily benefits Delta Air Lines, for at least two more years.

HB 386 was unanimously approved by the Senate on March 22, sending the measure to Gov. Nathan Deal for his signature.

Criminal Justice Reform

Also last week, House members approved HB 1176, a bipartisan proposal that seeks to find a balance between ensuring public safety and reducing Georgia's prison system costs, which have risen dramatically as the inmate population has more than doubled in the past 20 years. The state now spends more than $1 billion a year to incarcerate more than 56,000 inmates.

Included in the measure are provisions that would give judges more sentencing discretion for nonviolent offenses; raise the threshold for suspects charged with certain felonies; revise sentencing guidelines for burglary, shoplifting, forgery, marijuana possession and other offenses; provide probation and parole agencies with more resources to supervise offenders in the community; and expand the use of drug and mental health courts, which offer alternative sentencing for certain offenders, and add more community-based treatment centers for low-level offenders.

HB 1176 now goes to the Senate for its consideration.

Other House Action

The following legislation was amended by the House and sent back to the Senate:

• SB 227, the Interstate Compact on Educational Opportunity for Military Children, aimed at making it easier for children of military families to enroll in Georgia schools when their parents are transferred.
• SB 351, which would require the same training for all Municipal Court judges.
• SB 366, which would revise restrictions on the possession of contraband at juvenile detention centers.
• SB 370, which would change certain provisions of state law related to the definition of "dangerous drug."
• SB 372, which would set up policies for the disposition of the cremated remains of deceased veterans.
• SB 390, which would provide immunity from civil liability for the agency responsible for seed certification.
• SB 416, which would authorize the Department of Insurance to develop exchange standards regarding electronic prior authorization drug requests with health care providers.

Final Approval

Last week, the House approved a number of Senate bills, sending them to the governor's desk, including:

• SB 101, which would establish the Student Teen Election Participant program for poll officers.
• SB 338, the Georgia Volunteers in Dentistry and Dental Hygiene Act, which would provide special licenses for dentists and dental hygienists who are licensed in other states.
• SB 346, which would change certain provisions of state law related to the sale and distribution of prescription drugs by mail or other carriers.
• SB 358, which would require the state to reciprocate preferences granted by local governments in other states when giving preference to resident vendors.
• SB 473, which would make current members of the armed services eligible for the license plate tax exemption for Purple Heart awardees already offered to Purple Heart veterans.
• SB 489, which would require the Georgia Trauma Care Network Commission to report annually to the legislature on its expenditures and results.

House members also gave final approval to two measures that had been amended by the Senate, including HB 110, which would establish a registry of vacant properties, and HB 868, which would provide income tax credits to business enterprises located in less developed areas of the state.

Legislation urging the U.S. Department of Labor to withdraw its proposed policies that would restrict young people from working on farms also earned House approval. HR 1561 states that "passing on the family farm to the next generation is vital to the continued survival of the agriculture industry."