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Report: Georgia led country in dwindling sales tax revenues

Monday, July 27th, 2009

The Nelson A. Rockefeller Institute of Government recently looked at states’ revenue streams and discovered, whoa, hey, this appears to be the worst year on record.

State tax collections during the first quarter 2009 showed the sharpest decline on record, dropping 11.7 percent overall, according to an Institute report released July 17… Early figures for the second quarter reveal continued worsening of fiscal conditions for states.

According to the report (PDF), Georgia leads the pack when it comes to declines in sales-tax revenue.

Forty of 45 states with broad-based sales taxes had declines, and eleven states had double-digit declines. Iowa had the largest increase at 18.5 percent which is attributable to legislated tax increases. Georgia led the states with the largest decline at 16.3 percent followed by Nevada at 16.0 percent.

The institute predicts more budget shortfalls and financial hardships for states. Last Tuesday, Gov. Sonny Perdue told agency heads to trim their budgets once more to help fill a $900 million shortfall. Some teachers face three furlough days.

Not the best way to start the upcoming school year, but you work with what you’ve got.

(UPDATE) Atlanta City Council OK’s property tax hike, might reconsider

Monday, June 29th, 2009

UPDATE: Word comes in that City Council might make a motion to reconsider the property-tax vote. More details to come. The move to reconsider failed. The final budget adoption will most likely take place around 1:30 p.m.

The Atlanta Business Chronicle reports the Atlanta City Council this morning narrowly approved a three mill property-tax increase that will plug a $56 million budget shortfall. The average homeowner will see his or her property tax bill increase by $240.

The 8-7 vote Monday morning to raise property taxes by 3 mills was still considered preliminary. It is contingent upon council members adopting the mayor’s $541 million fiscal 2010 budget, a vote expected to take place on Monday afternoon.

The closeness of the tax vote reflected criticism aimed at the council during several public hearings for considering a tax hike in the midst of a severe recession.

If the budget passes, the tax increase would allow the city to end employee furloughs during the fiscal year that starts on Wednesday. Furloughs of police officers and firefighters, and the subsequent impact on public safety, emerged as major concerns during the council’s review of Franklin’s budget.

The vote’s roll call:

Yeas: Carla Smith, Ivory Lee Young, Jr., Natalyn Archibong, Anne Fauver, Felicia Moore, C.T. Martin, Joyce Sheperd and Ceasar Mitchell.

Nays: Kwanza Hall, Cleta Winslow, Howard Shook, Clair Muller, Jim Maddox, Mary Norwood and H. Lamar Willis.

Word: Perdue’s state capital gains tax veto irks GOP

Monday, May 18th, 2009

Gov. Sonny Perdue last week irked many fellow Republicans when he vetoed a bill that would have slashed the state capital gains tax. Critics warned the bill would have cost the cash-strapped state between $340 million and $1 billion in lost revenues.

“I’m scratching my head…If I were the governor, I would have said, ‘Where is that? Let me get my pen.’”

— House Rules Chairman Earl Ehrhart, R-Powder Springs, in the May 11 AJC

“Cutting capital gains taxes would have encouraged more investment into the state. It is a sad day when this type of legislation gets vetoed by a Republican governor.”

— State Insurance Commissioner and GOP gubernatorial candidate John Oxendine in a May 11 press release

“If Governor Perdue vetoes it, I hope legislators will consider overturning his veto. The JOBS Act could do a lot of good for Georgia.”

— David Raynor of the Georgia chapter of the National Federation of Independent Business

“Republicans I talked to in the legislature are angry and demoralized.”

— Pro-growth, anti-tax Wall Street Journal columnist Stephen Moore, writing about Perdue’s veto

State revenue figures down 20.6 percent compared to April 2008

Monday, May 11th, 2009

Earlier today, Gov. Sonny Perdue told reporters the soon-to-be-released April 2009 revenue figures were “not encouraging.”

He wasn’t fibbing. The revenue figures landed in our inboxes a few minutes ago. And to be honest, they’re rather terrible.

Net revenue collections of sales, personal income and corporate incomes taxes last month totaled $1.4 billion, down from $1.8 billion the same time last year. That’s a decrease of 20.6 percent. The year-to-date decrease in revenue collection is 9.6 percent.

According to figures released by the governor’s office, however, booze is still selling like it’s hot.

Perdue did note that last April’s figures were some of the highest the state had ever recorded. But man,  governor, you’ve made the right choice to veto the giant tax-cutting beast sitting on your desk. That thing might get you on Grover Norquist’s speed dial, but it’d just push the state deeper into the red.

If you’re a numbers lover, download the April 2009 revenue figures. (Warning: PDF)

(Photo by Joeff Davis)

Add It Up: Alcohol sales up when the economy’s down

Saturday, April 18th, 2009

Amount, in percentage, total taxes and other revenues decreased in March 2009 compared to March 2008: 14.5

Amount, in percentage, individual income tax revenue declined in March 2009 compared to March 2008: 18.8

Amount, in percentage, sales tax revenue declined in March 2009 compared to March 2008: 5.9

Amount, in percentage, gas tax revenue declined in March 2009 compared to March 2008: 28.6

Amount, in percentage, alcoholic beverage tax revenue increased as of March 2009: 8

Estimated amount of money, in sales tax, Sunday beer and wine sales could generate: $3.3 million

Number of states other than Georgia that ban alcohol sales in stores on Sunday: 2

Number of times in the last three years state lawmakers have tried to pass a bill allowing Sunday sales: 3

Percentage of Georgians in a 2008 poll who support Sunday sales: 65

Sources: ajc.com, Georgia Department of Revenue, AJC/Mason Dixon poll

Did anyone appeal their property tax assessment?

Wednesday, April 1st, 2009

Today is the deadline for Fulton, Clayton and Cobb County property owners to appeal their property tax assessments.

Just curious: did any Fresh Loaf readers file appeals?

I’m about to file mine. In true journalistic fashion, I’ve waited until deadline day.

Fulton County wants to tax my home in Southwest Atlanta based on its 2006 value. Home values in much of Southwest Atlanta have, in fact, been in free-fall since early 2007.

The situation is so bad at the moment, if you look up 2BD/1BA listings near my home you’ll find a home on sale for $6,700. It’s almost certainly a rat-infested shit-hole (or, possibly, a shit-infested rat-hole), but it drags down the value of every other 2BD/1BA home in the area.

Soapbox: Lawmakers’ tax cuts hurt the state

Monday, March 30th, 2009
Essig

Essig

Last week, the Georgia General Assembly passed the Jobs, Opportunity and Business Success Act, a package of bills that offered tax cuts and credits for Georgia businesses. Proponents said the legislation would help spur the economy and create jobs. Alan Essig of the Georgia Budget and Policy Institute writes below that such cuts, while well-intentioned, hurt the state in the long run.

Well-intentioned as they may be, state legislators pushing hundreds of millions of dollars of business and special interest tax cuts in the name of job creation and economic stimulus are doing far more harm than good. Notwithstanding that Georgia is already one of the lowest tax states in the nation, research and experience proves that state tax cuts for business and other special interests have a negligible overall economic impact and are not a cost-effective method to stimulate Georgia’s economy and create jobs.

In this time of economic and fiscal crisis it is incumbent upon legislators to stop grandstanding, pandering, and misleading the public. While the state budget should prioritize limited state funds for state programs that have proven to have the most value, that same value-based approach should be used in making tax policy.

The economic crisis Georgia faces is a national problem, and misguided legislation calling for hundreds of millions of dollars in state tax cuts won’t stem the tide of the national recession; not only doesn’t it help, but it hurts.

(more…)

Crawford: ‘We gave tax cuts; where are the jobs?’

Thursday, March 26th, 2009

Veteran Gold Dome reporter Tom Crawford hits the nail on the head:

When the billion-dollar tax break for corporations was being debated in the Senate in 2005, Casey Cagle, then a senator from Gainesville, averred, “It’s pro-jobs legislation. It will ensure we have jobs for the future.”

“It’s about jobs, jobs and jobs,” said Rep. Ron Stephens, R-Savannah.

Funny thing. All the new jobs that were supposedly going to be created from this gusher of business tax breaks don’t seem to have materialized.

We have continued to suffer higher than average unemployment since 2005, culminating last month when the jobless rate hit the highest level ever in Georgia at 9.3 percent. How could that be happening if all of those business tax cuts were creating so many jobs?

Don’t get me wrong. For the entities who get them, tax cuts are a wonderful thing. I’d love to get a business tax break myself, but I can’t afford to hire lobbyists to demand one from the legislature.

Let’s be honest, however, about what these tax cuts are: a financial gift to whoever happens to receive them. Business tax breaks are not going to create jobs and it’s time that legislators quit using that as an excuse for passing them.

Worth a read.

(H/T to Andre at Peach Pundit)

Georgia lawmakers fail to pay taxes

Thursday, March 5th, 2009

Names of state legislators who failed to file or pay state or federal taxes — 22 at last count — are now rolling out. Chief among them: Senate Minority Leader Rob Brown of Macon.

The Macon Telegraph’s Travis Fain has the news — and even makes Drudge:

Nearly 10 percent of Georgia state legislators are late filing or paying their state taxes, and state Sen. Robert Brown is apparently among them.

Brown, D-Macon, said Wednesday he’s not sure whether he actually owes the state or federal government any money because he hasn’t filed tax returns. He said he’s gotten extensions, but he declined to give more information or say for what years he received filing extensions.

More info at the Telegraph’s site. Pay no attention to the raging commenters, a hallmark of every Drudge-linked article.

Add It Up: Taxing sin

Sunday, January 11th, 2009

Yellow nails? She must be a smoker!

Amount Georgia lawmakers want to raise the price of cigarettes to offset a $2.4 billion deficit: $1

Georgia’s current tax on cigarettes: 39 cents

Nation’s average cigarette tax: $1.19

Estimated revenue the proposed cigarette tax would generate for the state: $350 million

Estimated tax revenue that would be raised if Sunday alcohol sales were allowed: $4.8 million

Number of signatures on an online petition calling for alcohol to be sold in stores on the Sabbath: 52,070

Dollar amount of a proposed “pole tax” that state lawmakers want strip club patrons to pay at the door: $5

Price of admission after 10 p.m. on a regular night at the Cheetah: $10

Minimum estimated revenue that could be generated if casinos were built in Atlanta and along the Georgia coast: $600 million

Sources: AJC, Associated Press, Distilled Spirits Council of the United States, PetitionOnline.com, TheCheetah.com, 11Alive.com

(Photo courtesy of Photos.com)

City Council wish list is ready

Monday, November 17th, 2008

If you’ve been wondering what you could give the Atlanta City Council to make them happy, wonder no more – they’ve issued a list. Unfortunately, unless you’re a state lawmaker, you won’t be able to provide any of the items on the list.

Here’s a selection of wish-list items:

  • Amend State law to allow local governments the ability to restrict guns in city parks.
  • Amend State law to allow local governments the ability to restrict ownership of assault weapons within the city limits.
  • Amend State law to allow municipal courts the ability to suspend drivers’ licenses for failure to pay fines.
  • Amend State law to authorize municipalities to require vacant property registration.
  • Amend State law to permit photo speed detection devices in school zones.
  • Amend the City of Atlanta charter to allow the City to impose a wholesale alcohol tax increase.
  • Amend the City of Atlanta charter to allow the City to increase the tax-by-the-drink tax on alcohol.
  • Amend the City of Atlanta charter to allow the City to impose a by-the-glass tax for beer and wine.
  • Amend State law to permit a local option real estate transfer tax to fund greenspace acquisition and  maintenance.
  • Amend State election code to require independent school districts to compensate municipalities for the costs of conducting their elections.
  • Amend State law to allow cities with a development authority to negotiate for the sale of city surplus  property, as an additional tool in marketing property.
  • Amend the City charter to allow the municipal court to add a 10% surcharge to any criminal or traffic fine imposed to fund court programs.
  • Amend State law to permit the use of liens to collect water/sewer bills.

As for the first two, it ain’t gonna happen; we’ve got us one gun-lovin’ Legislature.

As for raising local liquor taxes: Drunks, unite! We need to fight back this latest assault on intemperance!

And the rest of the suggestions seem to be focused on squeezing a few more shekels out of us, the public – through speeding fines, a court surcharge, a real estate transfer taxes and added leverage on drivers and water-users to pay our bills and fines.

Fellow turnips, prepare to be squeezed.

Georgia tax revenues down 7 percent — booze still selling like hotcakes

Friday, September 12th, 2008

The state pulled in $94.2 million less in taxes compared to this time last year. Alcohol beverage taxes rose a healthy 5.2 percent, however. Chalk that one up to college football season starting and the always dependable alcoholic demographic!

For you number lovers out there, download the revenue collection statistics here.

State energy-efficiency credits available now

Wednesday, July 9th, 2008

State tax credits for a variety of energy-efficiency improvements and installations on homes and businesses are now available. The eligibility criteria is available for viewing at the Georgia Environmental Facilities Authority’s website.

The perks cap out at $2.5 million each year and will be pro-rated among the applicants. The credits sprang from HB 670, a piece of legislation that Pam Davidson, one of the Republican candidates for the Public Service Comission, helped push through the notoriously un-progressive General Assembly this past session.

Here are some facts from a GEFA press release.

Consistent with Governor Perdue’s commitment to the Conserve Georgia campaign and the Governor’s Energy Challenge, the tax credit creates an income tax credit for a variety of energy efficient and renewable energy technologies including:

  • Active solar space heating;
  • Solar electric and solar thermal electric;
  • Wind;
  • Certain bio-electricity facilities (non-residential only);
  • Geothermal heat pumps;
  • Efficient lighting (non-residential only); and
  • Energy efficient buildings (non-residential only).

“The Georgia Clean Energy Property Tax Credit is part of our state’s investment in a clean energy future,” said Chris Clark, executive director of the Georgia Environmental Facilities Authority (GEFA). “This incentive will accelerate Georgians’ adoption of energy efficient technologies and will help them to meet the Governor’s Energy Challenge.”

Most credits are capped at 35 percent of the cost of the property or a certain dollar amount established by the statute. There are different credit limits for residential and non-residential installations. The bill also provides tax credits for wood residuals delivered to qualified renewable biomass facilities. The Georgia Forestry Commission will establish the value of the biomass credits.

A total of $2.5 million in tax credits are available each calendar year from 2008 to 2012. The Department of Revenue will provide quarterly updates about the amount of available credits via its website – www.dor.ga.gov. GEFA will provide annual reports on the energy and economic benefits of the tax credit.

Perdue: State revenues down 31 percent compared to May 2007

Monday, June 9th, 2008

Yowsers.

ATLANTA – Governor Sonny Perdue announced today that net revenue collections for the month of May 2008 (FY08) totaled $1,473,892,000 compared to $2,140,232,000 for May 2007 (FY07), a decrease of $666,340,000 or 31.1 percent.

The percentage decrease year-to-date for FY08 compared to FY07 is 0.1 percent.

Perdue says, however, this dip was to be expected.

“These figures are not surprising given April’s sharp rise in collections due to processing improvements made by the Department of Revenue,” said Governor Perdue. “We will continue to monitor revenue collections and responsibly manage the state’s fiscal affairs.”

Note the decrease — $666,340,000. Lucifer announces his arrival in the most mysterious of ways, people!

While I start filling up squirt guns with holy water and cold calling priests to bless my army of the righteous, pore over the numbers here. (It’s a PDF.)

Perdue suspends gas tax increase, suggests drilling, doesn’t mention rail options

Monday, June 2nd, 2008

Gov. Sonny Perdue this morning suspended a scheduled increase of the state gas tax.

“Frankly I don’t think we can justify raising tax on gas at a time of economic stress on families,” he said.

The increase would have occurred July 1 and raised gasoline 2.9 cents per gallon to 13.9 cents. It’ll now hold tight at 11 cents per gallon. Taxes on diesel, aviation gasoline, propane and compressed natural gas would’ve raised prices to 16.5 cents, 20.9 cents, 8.2 cents and 13.8 cents per gallon, respectively. Perdue estimates the suspension will save Georgians $70-80 million dollars. That also means it’ll cost the state the same amount for transportation projects that the tax revenues fund. The suspension stands until the next legislative session in January.

“I hope we can send a clear signal to Georgians that we understand the strain on families’ budgets by high gas prices and we are doing all we can from the state’s perspective to address that,” he said.

Yet the solutions Perdue offered were akin to sticking bubble gum in a leaky dam.

“I think it’s time we seriously looked as a nation at drilling on our own land and becoming more independent from that perspective while we search for alternative energies for the future,” he says. “I’m persuaded we’ve got great reserves here that we can bring to the market very quickly rather than being held hostage from the international perspective.”

When asked if he’d consider a switch to more fuel-efficient vehicles such as hybrids both for his personal transport and the state’s fleet of vehicles — Perdue politely said he already travels light.

“We look at that occasionally,” he said. “What I find is that is more political fluff and messaging than effect in that area. I’ve seen people do it. I see them ride a little car for a little while and then they’re back in big vehicles after a while. I think the very fact in the whole Conserve Georgia effort we’re trying to build a cultural aspect of really only driving as much as you need… I travel pretty lightly as most of you know. We don’t send out two or three vehicles as most other [states] do. We’re obviously encouraging our departments to use the size vehicles they need.”

Andisheh Nouraee of Decatur says the governor’s suspension will save him 33.6 cents per week. “That’s an extra three pieces of spearmint gum per week. I think my co-workers will be pleased with that. Particularly on hummus day.”

Not once during this morning’s press conference did Perdue mention rail options or possible state assistance to MARTA. Georgia is the only state in the country to not offer funding to its largest metropolitan area’s main transit system.