Keen pushes for tax change
Thu, Oct 11, 2007
By BRANDEE A. THOMASThe Brunswick NewsIf some legislators have their say, Georgians will pay their last share of property taxes this year. That is the goal of legislators behind GREAT, or Georgia's Repeal of Every Ad Valorem Tax. When the Georgia General Assembly convenes in January for the 2008 session, backers of GREAT will push for a constitutional amendment to eliminate ad valorem taxes on vehicles and property.Levying state sales taxes on services and on more goods would make up for the lost revenue, proponents of the amendment contend.
State Rep. Jerry Keen, R-St. Simons Island, thinks that eliminating property taxes would encourage people to move to the state. (The Brunswick News/File)
| The amendment would have to be passed by both the House and Senate and signed by the governor before voted on in a statewide public referendum.Although the legislative session is almost three months away, skeptics are already voicing opinions. Among their ranks is Gov. Sonny Perdue, who is critical of the GREAT plan.Like many others, Perdue claims the legislation would take power away from city and county governments, as well as boards of education.Rep. Jerry Keen, R-St. Simons Island, a chief sponsor of the measure, says he has no reason to view the proposal negatively."The majority of the sales tax collected locally will remain in the county, as it does now. That won't change," Keen says."State taxes are sent to the state now. Local option and (education special purpose local option sales tax) funds will remain (with the local government)."Although the tax change would require consumers to pay taxes on services such as hair cuts, lawn care and car washes, Keen says it will help to improve the current real estate slump."Virtually every economist we've worked with would admit that this would be a great asset to the housing market," Keen says. "This would certainly entice more people to move to Georgia – especially those on fixed incomes who are looking for places to buy property where they don't have to fear losing their home because they got behind on their property taxes."Not everyone in Glynn County's state delegation is as gung-ho as Keen, though they tend to look at the concept of a property tax-free state favorably.State Rep. Roger Lane, R-Darien, is supportive of revising taxation policies but wants to be sure that changes are still fair to local governments."I'm in favor of repealing every ad valorem tax," Lane said. "They are the most unfair tax we have and can tax people right out of their homes."There are a lot of other tax reform ideas out there and it's good to have discussions about them all so we can find the best solution."There is no plan by those behind the effort to raise the state sales tax, currently at 4 percent. The difference can be made up by removing all exemptions, including those for food, drugs and services.That could also produce more money for governments in communities that have their own sales tax, including Glynn County, where the local tax is 3 percent.Lane said economists have estimated that eliminating tax exemptions and expanding items taxed would mean an additional $10 billion in revenue to the state alone."Georgia's economy is strong and now is a good time to start looking at tax reform," Lane says. "I agree with the concept and I'm excited about us being in a position to look at this, but I think we need to look at it closely."
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