Tax reform debate moves forward

It was back to business this [past] week in the General Assembly, as senators and representatives returned to the Gold Dome for another week of the 2008 session. We are rapidly approaching the halfway point of the session, and many new bills have been introduced in both chambers.

This [past] week, the debate on statewide tax reform took center stage, as the Senate passed three important pieces of legislation that could end up as referendum votes on the ballot in November. I’d like to update you on these measures this week, because they affect every citizen of this state.

On Tuesday, the Senate took the first steps in the tax reform debate by passing two constitutional amendments that will freeze property taxes at the 2008 rates until the property is sold. With broad bipartisan support, the Senate voted to send both constitutional amendments to the House for consideration.

Essentially, these two pieces of legislation propose an amendment to the state constitution to require the freezing of existing real property values at the time the owner acquires the property. Any valuation increases thereafter would be subject to limitations.

Once a property is transferred or sold to another person, that property will be appraised at its fair market value on the date of the new owner’s acquisition. Any increase in the assessment could not exceed an inflation percentage set by the Department of Revenue for the current tax year. Only significant improvements to a property would warrant further increases in the property’s value.

Another resolution that I have sponsored on Gov. Perdue’s behalf, SR 859, would create a constitutional amendment to repeal the state portion of the ad valorem tax on homes and cars. This tax reform measure was also overwhelmingly approved in the Senate on Thursday.

Overall, these amendments will give Georgia citizens the opportunity to voice their opinion on the amount of tax they pay on their homes and vehicles.

We may not approve all of these amendments, but I think it’s safe to say we will leave here in the spring with some significant tax relief measure on the ballot for approval by the voters.

In other news, I was extremely pleased to see the Senate unanimously approve a bill I introduced, SB 388. This legislation will establish an identity theft task force within the Georgia Bureau of Investigation.

Earlier this year, Gov. Perdue included $1 million in his budget proposal to fund the task