July 19, 2006
FOR IMMEDIATE RELEASE
Georgia Tax Reform Study Commission Examines State Revenue Sources.
The second meeting of the Georgia Tax Reform Study Commission ("Commission")
was held Thursday July 13,
2006 at the Joe B. Adams Conference Center in Camilla, Georgia, led by Representative
Richard Royal. With the goal of modernizing and revitalizing the Georgia revenue
structure, the Commission continued to seek solutions that could enhance and/or
create an equitable and flexible tax system for Georgia. Through presentations
and Q&A sessions, the event provided an opportunity for the Commission to explore
Georgia’s revenue sources and the impact tax reform would have on those sources.
Commission members examined all taxes including fees, fines, and permits that are
outside the sphere of the traditional property and sales tax revenue sources.
The Commission, established through HR 1464, is seeking to relieve the current
strain on Georgia’s tax system by attempting to reconcile the increased demand
for state services with the conflicting desire for tax relief. The Commission
believes their efforts will allow Georgia to respond to current and future fiscal
needs in a more balanced, equitable fashion.
The Commission and attendees heard presentations from the Association of County
Commissioners of Georgia (ACCG) who requested empowerment from lawmakers to have
more flexibility with regards to how they administer local taxes within their
respective jurisdictions. Currently, the Local Option Sales Tax (LOST) in Georgia
is administered through negotiated contracts with the local jurisdictions, which are
up for renegotiation every ten years along with the Special Purpose Local Option Sales
Tax (SPLOST), which is negotiated every five to seven years.
The Commission and attendees were also introduced to Tax Expenditure Data (T.E.D.),
compliments of the Carl Vinson Institute ("Institute"). T.E.D. is a powerful government
research database hosted and maintained by the Institute, which allows users to access and analyze
government operating expense data. This powerful financial management tool allows the
research and comparison of government financial data between cities and counties throughout
the State of Georgia. T.E.D. provides government operating expense data, not capital
outlays. The database captures the data submitted to the Georgia Department of Revenue ("Department"), the
Department of Community Affairs, and the Department of Audits and Accounts, which local
governments are required to submit on an annual basis. No separate forms are required
to capture data. The Institute is providing public access to the T.E.D. database
free of charge via their website (http://ted.cviog.uga.edu/ted/Home.do).
The Department identified revenue sources within the Georgia tax revenue
stream, while the Commission probed to better understand tax calculation methods. The
Georgia School Board Association (GSBA) and the Georgia Municipal Association (GMA) also
contributed to the insight of the Commission though presentations of their own.
The next meeting will see the Commission convene at Southern Poly Tech in Marietta,
Georgia on Thursday, July 27, 2006 at 10:00 A.M. The meeting will be chaired by Representative
Steve Tumlin and will focus on individuals and businesses that are failing to remit taxes
due. The Commission is planning to meet twice during the month of August, once during the
month of September, and once during the month of October. It is anticipated that these
meetings will allow the completion of the Tax Reform Study Commission’s work.
If you have any questions regarding the efforts or findings of this Commission, please
contact Mr. Douglas DeRito, Principal, or Mr. John Walter, Principal in Charge of the
Ryan & Company Atlanta office, at 404.365.0922. Mr. DeRito
and Mr. Walter can also be
reached via e-mail.
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