UPDATES SENATE REPORT
UPDATES SENATE REPORT
Final Week of the 2012 Georgia General Assembly
March 30, 2012
The General Assembly completed its 40th and final legislative day on March 29. Over the past several months, we have worked hard to accomplish our goals and better serve all Georgians. When we began, the Senate Majority Party established several key priorities for the 2012 Legislative Session including: limited government, fiscal responsibility, pro-jobs tax reform, 21st century education reform, and protecting our children through public safety legislation. I am pleased to report the Senate's passage of legislation in all five of these key areas and will remain committed to making Georgia a great place to live, work and play.
Limited Government
During this year’s session, the Senate worked hard to reduce the overall size and scope of state government, especially as it pertains to the overall productivity of Georgia’s state-run programs. To further support these goals, the Senate adopted HB 456, also known as the Georgia Government Accountability Act. Similar to the Senate’s version which I introduced, this legislation provides a mechanism to determine the continued need of state-run programs through the creation of the Legislative Sunset Advisory Committee. The passage of this historic legislation provides a clear solution for efficient government operations and also helps maximize every taxpayer dollar.
Pro-Business Tax Reform
One of the most important things Georgia can do to attract businesses and promote job creation is revise our tax structure into one that spurs private-sector growth and welcomes investment in our state. In the final days of the 2012 Legislative Session, the Senate passed HB 386 - a comprehensive tax reform package projected to offer Georgia businesses and taxpayers nearly $262 million in tax savings over the next three years.
In order to see continued growth and get more Georgians back to work, it was imperative to revise Georgia’s antiquated tax code by removing the tax levied on manufacturing facilities, an estimated savings of approximately $150 million per year. As a result, Georgia will become even more attractive to businesses seeking to relocate or expand their operations.
This common sense legislation also kept Georgia families in mind by reducing the burden of the marriage penalty in the state income tax, eliminating the birthday tax, and bringing back the tax holiday for school supplies. The passage of HB 386 is a tremendous victory for both Georgia’s businesses and families, and is a clear indication that Georgia is moving forward with the times.
21st Century Education Reform
21st century education reform was one of our greatest legislative priorities this session. Our classrooms and our communities are poised to thrive due in large part to a variety of bills passed dealing with how our children learn and how we support our valuable educators. With the passage of charter schools amendment, HR 1162, Georgians will have the opportunity to vote to approve this measure in November. HR 1162 reasserts the state’s role in public education, defines a state charter school in the State Constitution, provides that state charter schools only be public, nonsectarian, and nonprofit, and regulates that the state is not allowed to lower extra funding to local school districts. HB 797 passed this week and aides HR 1162 by creating the State Charter Schools Commission as a state-level authorizing entity with the power to approve or deny petitions for state charter schools.
We also addressed the need for technological advancement in our classrooms. Textbooks have given way to a world where information can be disseminated and found with the touch of a finger. SB 289 requires local school systems to offer students virtual instruction program options to enable students to use online and distance learning in the nontraditional classroom and requires high school students to complete at least one of these online learning courses.
Parents will be empowered with extensive knowledge on progress made by school system due to the passage of SB 410. The bill adopts indicators of quality of learning by students, financial efficiency, and school climate for individual schools and school systems. The legislation assigns a numerical score rating for individual schools and school systems based on student achievement, achievement gap closure, and student progress. It also requires that a letter grade be assigned to each school and school system and that a grade be included on each school and school system’s annual report card. The grade is derived from the numerical score, with a majority of the grade based on student achievement.
The Senate also took necessary steps to support our valuable educators. SB 184 prohibits local school boards from implementing a policy that allows length of teaching time to be a main factor when reducing staff; far too often we are losing our best and brightest teachers when a misguided tenure policy replaces common sense. Similarly, SB 153 requires that written documentation be provided to teachers, administrators, and contract employees who have been terminated or suspended only for financial reasons, specifying such as the reason for their termination or suspension. Economic times have reached into every community, every business, and affected every profession- especially our educators. It is an unfortunate circumstance when educators must be terminated or suspended due to no fault of their own, and we are doing everything in our power to help clear the path for future employment.
Fiscal Responsibility
Now more than ever, the Georgia General Assembly must take great strides to eliminate government waste and reduce expenditures. Government operations are funded by taxpayer dollars, and the Senate Majority Party drafted legislation in 2012 to ensure the continued financial responsibility of our state and to urge the federal government to adopt more fiscally sound policy. The Georgia legislature concluded the 2012 session by passing a $19.3 billion dollar budget, keeping in line with the state’s commitment to pass balanced budget legislation each year. Georgia’s economy will be better positioned to grow, create more jobs and get more Georgians back to work.
In addition, the passage of SB 33 will assist in the legislature’s efforts to control state spending and maximize every taxpayer dollar. This zero-based budgeting bill will require the thorough re-evaluation of all line items in the budget every ten years, with state agencies being rotated so that not all are subject to review at one time.
Although the State of Georgia requires the General Assembly to pass a balanced budget that does not allow for deficit spending each year, this fiscally responsible measure is not required by the federal government. As a result, our national debt has reached record numbers and keeps climbing higher.
March 30, 2012
The General Assembly completed its 40th and final legislative day on March 29. Over the past several months, we have worked hard to accomplish our goals and better serve all Georgians. When we began, the Senate Majority Party established several key priorities for the 2012 Legislative Session including: limited government, fiscal responsibility, pro-jobs tax reform, 21st century education reform, and protecting our children through public safety legislation. I am pleased to report the Senate's passage of legislation in all five of these key areas and will remain committed to making Georgia a great place to live, work and play.
Limited Government
During this year’s session, the Senate worked hard to reduce the overall size and scope of state government, especially as it pertains to the overall productivity of Georgia’s state-run programs. To further support these goals, the Senate adopted HB 456, also known as the Georgia Government Accountability Act. Similar to the Senate’s version which I introduced, this legislation provides a mechanism to determine the continued need of state-run programs through the creation of the Legislative Sunset Advisory Committee. The passage of this historic legislation provides a clear solution for efficient government operations and also helps maximize every taxpayer dollar.
Pro-Business Tax Reform
One of the most important things Georgia can do to attract businesses and promote job creation is revise our tax structure into one that spurs private-sector growth and welcomes investment in our state. In the final days of the 2012 Legislative Session, the Senate passed HB 386 - a comprehensive tax reform package projected to offer Georgia businesses and taxpayers nearly $262 million in tax savings over the next three years.
In order to see continued growth and get more Georgians back to work, it was imperative to revise Georgia’s antiquated tax code by removing the tax levied on manufacturing facilities, an estimated savings of approximately $150 million per year. As a result, Georgia will become even more attractive to businesses seeking to relocate or expand their operations.
This common sense legislation also kept Georgia families in mind by reducing the burden of the marriage penalty in the state income tax, eliminating the birthday tax, and bringing back the tax holiday for school supplies. The passage of HB 386 is a tremendous victory for both Georgia’s businesses and families, and is a clear indication that Georgia is moving forward with the times.
21st Century Education Reform
21st century education reform was one of our greatest legislative priorities this session. Our classrooms and our communities are poised to thrive due in large part to a variety of bills passed dealing with how our children learn and how we support our valuable educators. With the passage of charter schools amendment, HR 1162, Georgians will have the opportunity to vote to approve this measure in November. HR 1162 reasserts the state’s role in public education, defines a state charter school in the State Constitution, provides that state charter schools only be public, nonsectarian, and nonprofit, and regulates that the state is not allowed to lower extra funding to local school districts. HB 797 passed this week and aides HR 1162 by creating the State Charter Schools Commission as a state-level authorizing entity with the power to approve or deny petitions for state charter schools.
We also addressed the need for technological advancement in our classrooms. Textbooks have given way to a world where information can be disseminated and found with the touch of a finger. SB 289 requires local school systems to offer students virtual instruction program options to enable students to use online and distance learning in the nontraditional classroom and requires high school students to complete at least one of these online learning courses.
Parents will be empowered with extensive knowledge on progress made by school system due to the passage of SB 410. The bill adopts indicators of quality of learning by students, financial efficiency, and school climate for individual schools and school systems. The legislation assigns a numerical score rating for individual schools and school systems based on student achievement, achievement gap closure, and student progress. It also requires that a letter grade be assigned to each school and school system and that a grade be included on each school and school system’s annual report card. The grade is derived from the numerical score, with a majority of the grade based on student achievement.
The Senate also took necessary steps to support our valuable educators. SB 184 prohibits local school boards from implementing a policy that allows length of teaching time to be a main factor when reducing staff; far too often we are losing our best and brightest teachers when a misguided tenure policy replaces common sense. Similarly, SB 153 requires that written documentation be provided to teachers, administrators, and contract employees who have been terminated or suspended only for financial reasons, specifying such as the reason for their termination or suspension. Economic times have reached into every community, every business, and affected every profession- especially our educators. It is an unfortunate circumstance when educators must be terminated or suspended due to no fault of their own, and we are doing everything in our power to help clear the path for future employment.
Fiscal Responsibility
Now more than ever, the Georgia General Assembly must take great strides to eliminate government waste and reduce expenditures. Government operations are funded by taxpayer dollars, and the Senate Majority Party drafted legislation in 2012 to ensure the continued financial responsibility of our state and to urge the federal government to adopt more fiscally sound policy. The Georgia legislature concluded the 2012 session by passing a $19.3 billion dollar budget, keeping in line with the state’s commitment to pass balanced budget legislation each year. Georgia’s economy will be better positioned to grow, create more jobs and get more Georgians back to work.
In addition, the passage of SB 33 will assist in the legislature’s efforts to control state spending and maximize every taxpayer dollar. This zero-based budgeting bill will require the thorough re-evaluation of all line items in the budget every ten years, with state agencies being rotated so that not all are subject to review at one time.
Although the State of Georgia requires the General Assembly to pass a balanced budget that does not allow for deficit spending each year, this fiscally responsible measure is not required by the federal government. As a result, our national debt has reached record numbers and keeps climbing higher.
Upcoming Town Hall Meetings
Brantley County Town Hall
with Sen. William Ligon
Monday, May 7, 6:30-7:30 PM
Nahunta - County Commissioners Meeting Room
33 Allen Road
For information call Commissioner Ron Ham at 778-3735
Charlton County Town Hall
with Sen. William Ligon and Rep. Mark Hatfield
Tuesday, May 15, 6:00-7:00 PM
St. George at the St. George Church of God (off Hwy. 94)
843-2285
Tuesday, May 15, 7:30-8:30 PM
Folkston at the Charlton County Annex Building Auditorium
68 Kingsland Drive
496-2549
Tax Reform Package Revitalizes Georgia’s Tax Code
April 12, 2012
In January, the Senate Majority Party announced fives areas of focus for the 2012 Legislative Session, including the necessity for comprehensive tax reform. This outlines several of the major highlights found within HB 386 - a tax reform package which ultimately passed the General Assembly with great bipartisan support.
Part I
The benefits of revising Georgia’s antiquated tax code are wide-reaching and set a solid foundation for Georgia’s long-term economic growth and recovery. This legislation, which represents years of hard work by state economists and elected officials, encourages job creation and reduces the tax burden on Georgia’s families. In the upcoming weeks, we will focus on the merits of this tax plan and what it means to Georgia businesses and families.
With the recent passage of HB 386, Georgia is now poised to become one of the most competitive pro-business environments in the nation. Under this legislation, it is estimated that taxpayers and Georgia businesses will save nearly $262 million in tax savings over the next three years - a tremendous victory for businesses seeking to re-locate to the state.
Statistics indicate that Georgia has lost nearly 200,000 manufacturing jobs since 2001 to nearby states and international competitors. With Georgia representing the southeast as a global hub for both travel and international commerce, there is no excuse for this alarming trend to continue.
Currently, Georgia is only one of 14 states to levy sales taxes on energy used in manufacturing facilities. This bill would effectively remove the tax levied on manufacturing facilities, and is estimated to save manufacturers approximately $150 million per year. As a result, Georgia will become even more attractive to businesses seeking to expand their operations.
As part of the legislature’s continued efforts to attract new businesses to Georgia, the tax reform package also allows certain regionally significant projects to be exempt from sales tax on construction projects. The idea was also generated by the Governor’s Competitiveness Initiative and is critical to encouraging large employers to consider Georgia for expansion or relocation.
Recognizing the vital role that agriculture plays in the state economy, this legislation will adjust our agriculture tax policy for consistency and extend three major tax exemptions to the industry. Overall, this is estimated to save the industry about $17 million annually, a major incentive to invest in agribusiness in this state. According to this legislation, farmers will not have to pay sales taxes on items they buy to feed animals or grow crops. These are referred to as agricultural inputs and are vital to the final product, which are then sold to distributors. They may include: machinery; commercial animal feeds, commercial fertilizers, agricultural and vegetable seed; hay products. Further, farmers will be sales tax exempt on the energy consumed in agriculture production.
The information revolution of the past few decades has revolutionized many aspects of society, including our business practices. To ensure that our state’s tax policy is as up-to-date as possible, we have introduced the E-Fairness policy in Georgia’s tax reform plan. In the past, Georgia has not collected sales tax on items purchased from out-of-state online businesses. This legislation would help to level the playing field so that Georgia businesses may compete equally with out-of-state competitors. Further, this is expected to bring an additional $18 million to Georgia each year.
Even though Georgia is a prime destination for global commerce, our high tax rates have often been a deterrent to attracting new business ventures. Since Georgia is home to one of the busiest airports in the nation, it is imperative to continue exploring ways to keep business operation costs down. To address this, HB 386 would provide a one percent sales tax exemption on commercial aviation fuel, making Georgia’s fuel rates more competitive with other major airports.
Presently, Georgia is considered third in film and television production -behind only California and New York - and generated approximately $490 million in state revenue last year. TV, film and interactive gaming production companies currently qualify for up to 30 percent in transferable tax credits plus up to 8 percent in additional sales tax savings. The passage of HB 386 further solidifies Georgia’s strong presence in the entertainment industry by keeping the 30 percent sales tax credit for film production intact. This is estimated to restore approximately $11 million to the state each year.
Part II
Let’s take a closer look at how the legislature’s tax plan will affect Georgia families. As specific components of the tax reform plan go into effect, they will provide a much-needed source of financial relief to families throughout our state.
For many Georgians, birthdays are not simply a reminder of one’s age but also signify the yearly deadline to pay for their vehicle’s ad valorem tax. The bill will eliminate the “birthday tax” and sales tax on motor vehicles and will replace it with a one-time title rate of 6.5 to 7 percent after March 1, 2013, for all new vehicle purchases. The bill also includes a minimal fee for transfers between immediate family members and eliminates the local tax on the ownership of personal property.
An additional pro-family component of the bill is the reduction of the marriage penalty in the income tax code. Under Georgia’s current tax policy, married couples pay higher income taxes, especially when filing jointly. As part of HB 386, the personal exemption for married couples will increase from $5,400 to $7,400. Overall, this will cut nearly $140 million from Georgians’ income taxes each year. We are confident this will be a welcome tax break to families currently bearing the burden of difficult economic times.
HB 386 also provides a three-year sales tax holiday for school supplies as well as energy and water efficient products. Historically, Georgia is known as one of the first states to establish the popular sales tax holiday. This bill will cut sales tax by an estimated $35 million every year for three years for Georgia consumers and reaffirms the legislature’s commitment to Georgia’s families and education.
This legislation will also freeze the retirement income exclusion for seniors at the current level of $65,000 or $130,000 per couple. Previous estimates of the $35,000 income exclusion were found to be around a $230 million annual tax break. This year, the estimates have been revised upward to a projected cost of $700 million annually to the state.
Once this legislation is signed into law, Georgia municipalities will be protected from losing revenue during the first four years of these tax code implementations. Additionally, local governments will receive a combination of property tax from vehicles that have not yet been phased out of the property tax system and title fee revenue.
Estimated to save taxpayers nearly $262 million in tax savings over the next three years, this tax plan reaffirms the legislature’s commitment to support Georgia families and businesses and provides a proactive solution to address the ever-changing demands of the 21st Century.
Brantley County Town Hall
with Sen. William Ligon
Monday, May 7, 6:30-7:30 PM
Nahunta - County Commissioners Meeting Room
33 Allen Road
For information call Commissioner Ron Ham at 778-3735
Charlton County Town Hall
with Sen. William Ligon and Rep. Mark Hatfield
Tuesday, May 15, 6:00-7:00 PM
St. George at the St. George Church of God (off Hwy. 94)
843-2285
Tuesday, May 15, 7:30-8:30 PM
Folkston at the Charlton County Annex Building Auditorium
68 Kingsland Drive
496-2549
Tax Reform Package Revitalizes Georgia’s Tax Code
April 12, 2012
In January, the Senate Majority Party announced fives areas of focus for the 2012 Legislative Session, including the necessity for comprehensive tax reform. This outlines several of the major highlights found within HB 386 - a tax reform package which ultimately passed the General Assembly with great bipartisan support.
Part I
The benefits of revising Georgia’s antiquated tax code are wide-reaching and set a solid foundation for Georgia’s long-term economic growth and recovery. This legislation, which represents years of hard work by state economists and elected officials, encourages job creation and reduces the tax burden on Georgia’s families. In the upcoming weeks, we will focus on the merits of this tax plan and what it means to Georgia businesses and families.
With the recent passage of HB 386, Georgia is now poised to become one of the most competitive pro-business environments in the nation. Under this legislation, it is estimated that taxpayers and Georgia businesses will save nearly $262 million in tax savings over the next three years - a tremendous victory for businesses seeking to re-locate to the state.
Statistics indicate that Georgia has lost nearly 200,000 manufacturing jobs since 2001 to nearby states and international competitors. With Georgia representing the southeast as a global hub for both travel and international commerce, there is no excuse for this alarming trend to continue.
Currently, Georgia is only one of 14 states to levy sales taxes on energy used in manufacturing facilities. This bill would effectively remove the tax levied on manufacturing facilities, and is estimated to save manufacturers approximately $150 million per year. As a result, Georgia will become even more attractive to businesses seeking to expand their operations.
As part of the legislature’s continued efforts to attract new businesses to Georgia, the tax reform package also allows certain regionally significant projects to be exempt from sales tax on construction projects. The idea was also generated by the Governor’s Competitiveness Initiative and is critical to encouraging large employers to consider Georgia for expansion or relocation.
Recognizing the vital role that agriculture plays in the state economy, this legislation will adjust our agriculture tax policy for consistency and extend three major tax exemptions to the industry. Overall, this is estimated to save the industry about $17 million annually, a major incentive to invest in agribusiness in this state. According to this legislation, farmers will not have to pay sales taxes on items they buy to feed animals or grow crops. These are referred to as agricultural inputs and are vital to the final product, which are then sold to distributors. They may include: machinery; commercial animal feeds, commercial fertilizers, agricultural and vegetable seed; hay products. Further, farmers will be sales tax exempt on the energy consumed in agriculture production.
The information revolution of the past few decades has revolutionized many aspects of society, including our business practices. To ensure that our state’s tax policy is as up-to-date as possible, we have introduced the E-Fairness policy in Georgia’s tax reform plan. In the past, Georgia has not collected sales tax on items purchased from out-of-state online businesses. This legislation would help to level the playing field so that Georgia businesses may compete equally with out-of-state competitors. Further, this is expected to bring an additional $18 million to Georgia each year.
Even though Georgia is a prime destination for global commerce, our high tax rates have often been a deterrent to attracting new business ventures. Since Georgia is home to one of the busiest airports in the nation, it is imperative to continue exploring ways to keep business operation costs down. To address this, HB 386 would provide a one percent sales tax exemption on commercial aviation fuel, making Georgia’s fuel rates more competitive with other major airports.
Presently, Georgia is considered third in film and television production -behind only California and New York - and generated approximately $490 million in state revenue last year. TV, film and interactive gaming production companies currently qualify for up to 30 percent in transferable tax credits plus up to 8 percent in additional sales tax savings. The passage of HB 386 further solidifies Georgia’s strong presence in the entertainment industry by keeping the 30 percent sales tax credit for film production intact. This is estimated to restore approximately $11 million to the state each year.
Part II
Let’s take a closer look at how the legislature’s tax plan will affect Georgia families. As specific components of the tax reform plan go into effect, they will provide a much-needed source of financial relief to families throughout our state.
For many Georgians, birthdays are not simply a reminder of one’s age but also signify the yearly deadline to pay for their vehicle’s ad valorem tax. The bill will eliminate the “birthday tax” and sales tax on motor vehicles and will replace it with a one-time title rate of 6.5 to 7 percent after March 1, 2013, for all new vehicle purchases. The bill also includes a minimal fee for transfers between immediate family members and eliminates the local tax on the ownership of personal property.
An additional pro-family component of the bill is the reduction of the marriage penalty in the income tax code. Under Georgia’s current tax policy, married couples pay higher income taxes, especially when filing jointly. As part of HB 386, the personal exemption for married couples will increase from $5,400 to $7,400. Overall, this will cut nearly $140 million from Georgians’ income taxes each year. We are confident this will be a welcome tax break to families currently bearing the burden of difficult economic times.
HB 386 also provides a three-year sales tax holiday for school supplies as well as energy and water efficient products. Historically, Georgia is known as one of the first states to establish the popular sales tax holiday. This bill will cut sales tax by an estimated $35 million every year for three years for Georgia consumers and reaffirms the legislature’s commitment to Georgia’s families and education.
This legislation will also freeze the retirement income exclusion for seniors at the current level of $65,000 or $130,000 per couple. Previous estimates of the $35,000 income exclusion were found to be around a $230 million annual tax break. This year, the estimates have been revised upward to a projected cost of $700 million annually to the state.
Once this legislation is signed into law, Georgia municipalities will be protected from losing revenue during the first four years of these tax code implementations. Additionally, local governments will receive a combination of property tax from vehicles that have not yet been phased out of the property tax system and title fee revenue.
Estimated to save taxpayers nearly $262 million in tax savings over the next three years, this tax plan reaffirms the legislature’s commitment to support Georgia families and businesses and provides a proactive solution to address the ever-changing demands of the 21st Century.
GEORGIA STATE SENATOR
WILLIAM LIGON
Third District
WILLIAM LIGON
Third District
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