Car tax cut bill allows vote on amendment to ban ‘birthday tax’

Last week, the House crossed the 30th day of our 40-day legislative session. This is the day that a bill must have passed at least one body in order to have a chance of becoming law. With some changes to the legislation that fell short last week, the House of Representatives had a second opportunity to vote for the largest tax cut in Georgia’s history.

You may recall that last week an effort in the House to allow Georgians to vote to eliminate the tax on personal vehicles fell 10 votes shy of the necessary two-thirds for placement on the ballot as a constitutional amendment.

Fortunately, the House Republican leadership felt so strongly that this was the right thing to do that the measure was brought back for further consideration in another piece of legislation. The legislation was amended to reflect changes in the original proposal that failed last week.

However, the two most critical parts of the tax reform, the freeze on property values for taxation purposes and the elimination of the car tax remain in the legislation that passed the House 166-5 on Wednesday with overwhelming bipartisan support.

The new tax cut bill will give Georgians the chance to vote to eliminate the “birthday tax” on personal vehicles over a two-year period and cap assessments on residential property at 2 percent per year and commercial property at 3 percent per year, until such time as a property is sold and revalued at the sales price, which is the true fair market value.

This will ensure properties are being taxed at their actual market value and bring needed reform to the property assessment process.

The proposal also includes a provision for the state to refund to local communities all revenues that each governmental entity would have derived from the car tax, putting the tax cut on the back of the state.

If enacted by the Senate and approved by Georgia’s voters in November, our state’s citizens will save more than $1 billion the first two years the law is in effect, making it the largest tax cut in Georgia’s history.

With the economy lagging, now is the time for real tax relief. This is exactly what Fayette County and our state needs. It has been proven over and over again that the economy grows when government taxes less and taxpayers get to keep and spend more of their hard-earned money as they see fit.

When the economy grows, jobs are created, home ownership increases, salaries go up, all of which contributes to an increased tax base. Significant tax relief is precisely the stimulus our state’s economy needs. I am strongly encouraging my colleagues in the Senate to take up this measure and give our citizens the right to vote on this important tax relief in November.

Atlanta has Grady Hospital, a Level 1 Trauma Care Center, and if you are seriously injured in Fayette County it doesn’t take long to get there. But there are large areas of our state that are hours from a trauma center. In fact, Georgians have the worst access to Level 1 Trauma Care of any state in the southeastern United States.

If Georgians vote in November to eliminate the car tax, a separate measure passed this week would provide that a $10 fee would be included in the vehicle registration process to help fund a state-wide trauma care network.

Rather than paying hundreds on the car tax, Georgians would pay the current $20 registration fee plus a $10 fee to fund a statewide trauma care network.

It is imperative that we support the trauma hospitals we do have and provide for new ones, as they are vital lifelines for Georgians in need of immediate critical care. We have lost far too many citizens in our state due to a lack of an adequate trauma network, and it is time to get serious about fixing the problem.

You may have heard this week that Governor Perdue has lowered the revenue projections for this state. For us in the legislature, this means that we must revise the budgets we have been working on. While this does mean there is less revenue in 2008 than projected, I again reiterate that the House remains committed to funding our education needs and restoring all “austerity” cuts that have been made in recent years. The House will continue to work diligently to get those funds to our schools soon and without strings attached.

I will continue to keep you up to date on our actions as the legislative session progresses. Should you have any questions or concerns, please do not hesitate to contact me at my Capitol office at 404-656-0109. I look forward to hearing from you soon.

Representative Matt Ramsey (R-Peachtree City)

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Submitted by tiberiu on Thu, 07/31/2008 - 12:10pm.

The simple and shocking truth is that our country needs a total drug treatment because the present political decisions seem to follow one another on their way to make the honest citizen as miserable as possible and from my point of view that is not a path to follow if we want to stay strong and powerful as a global power.

Submitted by bowser on Tue, 03/25/2008 - 8:16am.

On the car tax, Rep. Ramsey,

Thanks for the update, even though you neglected to include key information on how much revenue the tax currently generates, what it is used for and how it will be replaced. (Presumably you know the answers but just don't want us sheeple worrying our pretty heads with such details.)

Another thought: Last time I checked, you pay more in tax the more your car is worth. So by eliminating the tax you will give the owner of a BMW or a 'Cedes or a Land Rover a substantially bigger tax break than you will give to the owner of a Civic or a Kia. The latter not only are cheaper but use less gasoline made with imported oil, a feature you might think we'd want tax policy to encourage these days.

How 'bout we just eliminate the tag tax for any vehicle certified to get 30 mpg or more?

Submitted by Spyglass on Tue, 03/25/2008 - 9:54am.

You mention gas used, gas is taxed totally seperate, and I'm quite sure that the lower the fuel economy combined with miles driven, the more gas bought. Full Sized Trucks and SUV's are just about the biggest and most popular guzzlers, so I'm not sure why even mention BMW's or Mercedes Benz. That comment just reeks of jealousy to me.

Many states use a flat rate of taxation regarding vehiles. I just see this legislation as a way to CUT taxes, and that is something I like to see from elected officials.

Submitted by bowser on Tue, 03/25/2008 - 10:28am.

I assure you my comment on higher-value vehicles has nothing to do with jealousy. If anything I feel sorry for people dumb enough to blow 50-75 grand on a depreciating asset when they can get safe reliable and economical transportation for less than half that.

That aside, it's a simple fact that this would put more money in the pockets of people with higher-value cars, since Georgia bases the tax on value. That may be fine with you...which is fine with me.

But I understand where you're coming from: Just cut taxes, any taxes, and don't bother me with details.

Submitted by Spyglass on Tue, 03/25/2008 - 10:52am.

But I can see the benefit on the economy that the more expensive cars have.

People should drive what they want, I think we both agree on that. Right now my newest vehicle is a 99 with 64K miles on it. It's a wonderful little 2 seat roadster, some say we are crazy for owning it, but my Wife likes it, and that's important to me. Smiling

It also doesn't hurt that it gets 25 MPG on her daily 2 mile commute to work here in town.

But yes, we spend way too much tax money on purely fivilous items. Pork abounds, that's for sure.

Submitted by bowser on Tue, 03/25/2008 - 11:19am.

A paid-for roadster that the wife loves and gets 25 mpg? Sounds like good clean fun to me, spy..Smiling

Submitted by Spyglass on Tue, 03/25/2008 - 11:40am.

the seats would recline a little more. Smiling

Paul Perkins's picture
Submitted by Paul Perkins on Tue, 03/25/2008 - 10:11am.

by controlling the money.

I fear that Matt is either duped or taken in by King Richard I's (Glen Richardson)power grab.

Notice that there are no spending cuts with these bills. Common sense says the money will come from somewhere (and someone) else.

Now .. what's the net effect? The power to oust a local politician for raising your taxes is gone. The power to set rates at the local level is gone. The money is now allocated through a committee that King Richard can control. King Richard will have to be appeased to release the funds. Yes, it may be the same $, but the power to control and limit has been shifted from local to state control.

Not a good thing.

This is the way to blog!


yardman5508's picture
Submitted by yardman5508 on Tue, 03/25/2008 - 10:06am.

don't you like to see well-patrolled highways, safe bridges, and smooth, easily traveled roads too? Keep the faith.

Democracy is not a spectator sport.


Submitted by Spyglass on Tue, 03/25/2008 - 10:13am.

Smiling

yardman5508's picture
Submitted by yardman5508 on Tue, 03/25/2008 - 10:33am.

gasoline taxes are generally used for those purposes...cut gasoline taxes and infrastructure improvements and patrolling will usually be the result. Check out the article on road improvements in today's "fishwrapper". Keep the faith.

Democracy is not a spectator sport.


Submitted by Spyglass on Tue, 03/25/2008 - 10:46am.

about cutting gasoline taxes. That's another topic.

yardman5508's picture
Submitted by yardman5508 on Tue, 03/25/2008 - 1:42pm.

I went back and reread your initial comments. I misunderstood. No offense meant. Keep the faith.

Democracy is not a spectator sport.


sniffles5's picture
Submitted by sniffles5 on Tue, 03/25/2008 - 8:37am.

Shiny eyed neophyte legislator loudly trumps his slaying of the hated car tax. Lower taxes are certainly worth an extra dead cop or so per year, right? Right?

The calculus:
Tax assessments can rise no more than 2% per year for the vast majority of property in the county. This works out just dandy in times of low inflation.

But uh-oh, what happens when inflation rises? Remember what you were paying last year for gas? $2.80 or so? Compare that to today's $3.20....juuuusssst a bit more than 2%!! Now let's apply that to the sheriff's department's budget.

Oh dear, we're going to have a shortfall...whatever shall we do? Hmm, cut back on gas purchases? No, that will make the county less safe with fewer patrol cars on the road....not to mention the political repercussions! Write more tickets? nope, the public will revolt. Lower raises for deputies? Can't do that either, they'll bolt for greener ($$$) pastures.

How about less maintainance on patrol cars....ah, that's the ticket! Let the deputies drive around on balder tires or lesser maintained autos. Sure, there's always a possibility that a deputy will wrap himself around a tree from a rain-slickened bald tire failing to hold the road during a high-speed pursuit, but hey, that's a risk Rep. Ramsey is willing to take!

Besides, we have such splendid funerals for officers killed in the line of duty. I'm sure even Rep. Ramsey would attend!


Cyclist's picture
Submitted by Cyclist on Tue, 03/25/2008 - 8:48am.

Watch the use of the "B" word. It's a sensitive thing when you talk about my haircut.
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Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.


Submitted by John M on Wed, 03/19/2008 - 3:54pm.

So where do the local county and city governments make up the lost funding? Are they going to raise our taxes to make it up?

Brownie made some valid points in his rebuttal about pandering for votes. Are the local city governments in favor of this bill?

"I'm NOT John Munford"

Submitted by joeknows on Wed, 03/19/2008 - 4:39pm.

I am not rep ramsey, but I did read the accounts of the bill last week when it passed and took a look at the legislation. The bill apparently contains a provision that requires the state to refund the lost revenues from the car tax to the local governments. Therefore, no lost revenue for the community and it is the state’s responsibility to come up with the money, same state that already spends too much of our money and is holding onto massive surpluses. Frankly, I think it’s great that the state is giving some of it back to us to help stimulate the economy.

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