The good news is we're cutting them! Under the leadership of Gov. Roy Barnes, homeowners and employers will be the recipients of two large tax cuts. In what was labeled "the largest property tax cut in Georgia history" the House passed House Bill 553 unanimously by a vote of 174 to O.. This is the governor's proposal and is aimed at helping the young, first-time home buyers and those on fixed income. His plan is to cut property tax bills by $83 million this year and by an estimated $2.8 billion during the next eight years.

The tax cut would have the greatest impact on lower-priced homes, potentially wiping out all property taxes for the owner of a $50,000 home by the eighth year. It would help homeowners by raising the standard $2,000 homestead exemption to $4,000 this year and eventually to $20,000.

For a Georgian with a home valued at $150,000 or less, the average savings would be about $45 this year and $450 annually when the Governor's plan is fully implemented.

The legislature has been asked to appropriate $83 million in next year's budget to begin phasing in the plan with a maximum first-year tax cut to homeowners and farmers of $77.42. When fully implemented, the tax cut would cost the state about $650 million a year.

During the first eight years the reimbursements would cost the state about $2.8 billion.

Property taxes are the main source of revenue for Georgia's local governments and schools. However, the Governor has said cities, counties and school systems, which rely on property taxes to operate, would be fully reimbursed by the state for any lost revenue by the General Assembly. Furthermore, this will not be a political process. Rather a straightforward formula for reimbursements will be used so that all counties will receive the funds they deserve.

Local tax commissioners would also be required to show the credit on each tax bill and state that the reduction is "the result of homeowners' tax relief enacted by the Governor and the General Assembly." The last time Georgia saw a state-wide property tax cut was when Gov. Ed Rivers in 1936 exempted homes that were $5,000 or less.

And later in the week, Gov. Barnes announced a proposed business tax cut as part of his legislative package for 1999. It is feasible because Georgia has had such strong economy that has produced more than enough money for the state's unemployment insurance coffers.

Over the next four years employers in Georgia would receive a nearly $1 billion tax cut that would normally go towards unemployment benefits.

Under the plan a three-year moratorium would go to approximately 43 percent of employers on the tax that they pay and most of the remaining would see lower unemployment taxes. It would also increase unemployment benefits by 16 percent over the next three years that go to people that cannot find a job. New employers would still have to pay the entry tax but those with the best history would be reduced.