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KNOW Summer 2014

288 | Prohibits high school which 10 | KNOW • Volume 12 Issue 2 SB receives funding under the “Quality Basic Education Act” from participating in/or sponsoring interscholastic sport events conducted by any athletic association unless the association publishes financials. GAE Position: Neutral This year these two pieces of legislation surfaced targeting the Georgia High School Association (GHSA). The bill requires that GHSA publish and share financial information on the organization’s website. The bill’s supporters shared that as this organization collects tax dollars from each school to participate in GHSA activities they should be more transparent. The bill also creates the High School Athletics Overview Committee. House Action: Passed Senate Action: Passed Governor’s Action: Signed 4/21/14 REVENUE AND TAXATION BILLS Every General Assembly tax bill enacted has a universal impact at the state and local levels. Legislation has local impact on either the local property taxes and/or sales taxes. Both these local taxes affect the local and state portions of school funding. Revenue fluctuations impact collection at the state and local levels directly. HR 1109 | Constitutional Amendment for Voters to approve the use of Sales and Use tax; for educational programs and materials in public schools HB 802 | County Sales and Use tax; comprehensive revision for educational purposes GAE Position: Oppose These two bills were created to put before Georgia voters a constitutional amendment to give school districts flexibility to spend sales tax money. If passed by the General Assembly and approved by voters, HR 1109 would allow school districts to hold a referendum allowing up to half of revenues from an Education Special Purpose Local Option Sales Tax (ESPLOST) for educational programs and materials. The special tax now is limited to capital expenses or debt elimination. HB 802 specified the 11 items that would qualify for ESPLOST money. While this could help some districts, it would have no impact on others without a sales tax base, creating more funding disparities. If this had passed, it would have allowed the General Assembly to back out of funding programs currently included in QBE and leave it to local districts to do through ESPLOST. Using this funding mechanism for education programs could also create more longterm debt for local school districts. House Action: Voted out of committee but never came to the House Floor. HB 729 | Change the manner for determining fair market value of motor vehicles subject to tax GAE Position: Oppose Since the implementation of the 2013 ad valorem tax change, several adjustments have had to be made and most of them reduced collections. HB 729 again amends the title ad valorem tax by further decreasing the state and local revenues on leased vehicles’ trade in credit. The bill was not evaluated for fiscal impact. House Action: Passed Senate Action: Passed Governor’s Action: Vetoed 4/16/14 HB 933 | Sales and Use tax; regarding sale or use of certain property used in maintenance or repair of certain aircraft; remove sunset exemption GAE Position: Oppose This bill permanently exempts aircraft repair and maintenance from sales taxes.  According to the Georgia Budget and Policy Institute analysis, local governments will lose approximately $61 million, and state revenue loss will be approximately $82 million over the next five years. House Action: Passed Senate Action: Passed Governor’s Action: Signed 4/24/14 HB 958 | State income tax credit for qualified entertainment production companies and change other tax provisions GAE Position: Oppose This bill makes several changes to the tax code based upon recommendations from the Georgia Competitiveness Initiative by the Georgia Chamber of Commerce: • expands the state income tax credit for entertainment production companies. • sales tax exemption on personal property used for/in the construction of a project deemed of regional importance extended to 2016 eliminating the 2014 sunset clause. • reinstates the sales tax exemption on food and food ingredients sold to a food bank for FY 2015 and ‘16 • reinstates the sales tax holiday for school supplies for 2014 and 2015 - Dates: August 1-2, 2014 & July 31 and August 1, 2015   • reinstates the energy efficient product tax holiday for 2014 and 2015 - October 3-5, 2014 & October 2-4, 2015 The Georgia Budget & Policy Institute estimates five-year revenue impact is $151 million loss to the state and $93 million to local governments. House Action: Passed Senate Action: Passed Governor’s Action: Signed 4/14/14 HB 983 | Updates exemption provisions of the State Sales and Use tax GAE Position: Neutral This bill makes changes to the agricultural exemptions which should add revenue due to decreased abuses. The bill did not include a fiscal note. House Action: Passed Senate Action: Passed Governor’s Action: Signed 4/15/14


KNOW Summer 2014
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