The dissonance of the sessions last days
They can go home now. Lawmakers have competed the only task they legally have to do: Pass a budget. And on Wednesday, that’s what the General Assembly did — pass a $49 billion budget which includes federal funds. Still and all, state funds account for $25 billion of the total. The only thing left for the men and women under the Gold Dome to do is to sing “Sine Die” and go home. Unfortunately, that’s not going to happen. There are still hundreds of bills to be considered and this period in any session is the most dangerous for Georgia citizens.
It is during the waning days of any session where back door deals are sprung before anyone is aware and before opposition can be mounted. Pet projects are tacked onto bills that are sure to pass as amendments and lawmakers and taxpayers are none the wiser until it’s too late.
That said there are several bills of interest that could be vehicles for such shenanigans. One of the most interesting processes to watch, not just because of what plethora of bills do, which is a lot, but what might change or added to them, since the Senate Finance Committee finished working on them Monday and Wednesday. So far its struck a number of chords when it comes to taxes, some dissonant, such as making sure online retailers start paying sales taxes, and others more consonant such as tax breaks.
For years brick and mortar stores have complained that online retailers have an unfair advantage. First, they have made no investment in actual stores and they pay no sales tax on the merchandise they sell to Georgians.
Local governments have also complained — quite loudly — that local tax collections are down. The Department of Revenue doesn’t have a definitive answer, but ask any county manager or county commission chairman or mayor and they will point to online sales.
According to an Atlanta Journal Constitution report, a state analysis said collecting those e-taxes could mean an additional $270 million to state coffers and another $200 million to local governments and by 2022, that figure could reach $621 million.
At the same time the Senate committee was deciding e-taxes, it was also to cutting other taxes, such as those in the highest 6 percent bracket down to 5.4 percent and creating a low income tax credit. Another bill they considered would raise the sales tax on buyers of used cars. Used car buyers pay tax on the car’s value, not the selling price. If approved, buyers need to go armed with a lot more information before making a used car purchase — something they should’ve been doing anyway. It’s not smart to buy a car at a higher price than what it’s valued at. If the Senate and House versions are agreed on and the governor signs the measure, used car buyers will pay sales tax on the selling price. That could also add to the bottom lines of finance companies.
Other items in the budget will make various groups happy. Teachers and most other state employees will receive a 2 percent raise, child protection workers will get a 19 percent raise and for what they do and their case loads, they are still underpaid. State law enforcement started receiving their 20 percent salary bump in January. As an interesting aside, some teachers received a one-time 3 percent bonus last year. That was an option considered by the Bibb County School System. Teachers in systems that did the one-time bonus could end up making less than they did last year because the governor’s raise in the 2018 budget is only 2 percent. Good intentions can sometimes lead to unintended consequences. State retirees should also be pleased with the 3 percent bump in their benefits.
What to watch for in these last hours before the close of session on March 30? Remember the casino, er, destination resorts, bill that was declared dead. Nope. By the time you read this, Senate Bill 79 will have been resurrected into SB 5, that deals with how the money from those casinos (now there are four, where there were only two) was to be divvied up for education purposes, was scheduled to be considered before the House Appropriations Committee starting at 8 a.m. Friday. It’s a simple reminder, when big money is involved, it ain’t over ‘til it’s over.
This story was originally published March 23, 2017 at 9:02 PM with the headline "The dissonance of the sessions last days."