Politics & Government

DECA Residents to Vote on Chamblee Annexation and Other Legislative Updates

State Rep. Elena Parent (D, 81) provides a snapshot of the progress of local legislation.

 

Chamblee Annexation Update:

HB 1006 has passed the House and Senate and is on its way to be signed by Gov. Deal. This bill would permit a referendum by the DECA-area neighborhoods (East of Buford Highway, South of Clairmont-Tucker, and North and West of I-85) to vote on whether they want to annex into the City of Chamblee. That referendum will be held concurrently with the November presidential election.

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Doraville Bills:

The Doraville Mayor and City Council have also asked Sen. Millar, Rep. Tom Taylor, and me to file a bill that would allow for legislative annexation of the islands that were created in between Dunwoody and Doraville when Dunwoody incorporated, because they present a law enforcement and service delivery problem due to their isolation from the rest of unincorporated DeKalb. This bill, SB 532, has passed the Senate and is in the House.

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Charter School Amendment - HR 1162: HR 1162 has now passed the House of Representatives and the Senate by a slim margin. It will permit the State to grant charters to certain schools, and is very controversial because this can happen without the approval of the local school board. However, Democrats were able to secure amendments that make it clear that the State will have to pay for such schools that it charters and may not force local school systems to do so.

Tax Reform: The much-discussed bill to enact sweeping changes to Georgia’s tax code never materialized, but this week both the House and the Senate passed HB 386, a scaled-down version that does enact some changes to Georgia’s tax code. The bill:

  • Phases out the sales tax on energy used in manufacturing over a four-year period. 
  • Local governments can still elect to keep this tax
  •  We are one of only 10 states that tax energy used in manufacturing. The hope is that elimination of this tax will help attract manufacturing jobs to Georgia.
  • Exempts sales taxes on construction materials for “regionally significant” local infrastructure projects for two years. o Could this be helpful in closing a deal to redevelop the GM plant? We can hope!
  • Reforms motor vehicle taxes o When you title a car in Georgia after Mar. 1, 2013, you will pay a one-time title fee of 6.5 to 7 percent, which will replace the annual ad valorem tax due on your birthday and the sales tax due at purchase.
  • Increases the personal exemption for married couples by $2,000 per couple from $5400 to $7400
  • Revises and streamlines sales tax exemptions on agriculture to create three broad categories for energy, equipment and business inputs.
  • Reinstates the state sales tax holiday for two years.
  • Caps the retirement income exclusion for seniors at the current level of $65,000 ($130,000 per couple).
  • Eliminates the sales tax exemption for film productions. Georgia currently has two film tax credits: a 30-percent income tax credit and a sales tax exemption for purchased or leased equipment, such as materials bought locally for set design or wardrobes. HB 386 would eliminate the sales tax exemption while keeping the 30-percent tax credit.
  • Cuts back the conservation easement tax credit. Since 2006 Georgia has had an income tax credit for individuals, corporations, or partnerships who donate land to government entities or qualified nonprofits for the purpose of conservation. The credit was modified in 2011 so that taxpayers are now allowed to sell any unused credits without limit, which has notably increased its cost—the state’s loss of revenue rose from $14 million in 2011 to $33 million in 2013. HB 386 would eliminate this unlimited transferability and cut back the maximum credit for partnerships.
  • Taxes e-commerce sales. Currently, out-of-state retailers are not required to collect taxes on internet purchases unless they have a physical presence in the state. In practice, this means that a Home Depot or Target is required to collect taxes from online purchases, whereas an Amazon or EBay is not. The loophole puts local brick- and-mortar businesses at a disadvantage—the Georgia Retail Association estimates online retailers offer pricing that is 7 percent lower since the tax is not included. HB 386 imposes the sales tax on these internet sales.
  • Replaces the annual subsidy of Delta with a jet fuel subsidy (lowering the state sales tax on jet fuel to 3 from 4 percent) that applies to all airlines. Criminal Justice Reform Passes: The House overwhelmingly approved a criminal justice reform bill, HB 1176, that would reduce prison terms for nonviolent drug and property offenders and provide less expensive and more effective ways to deal with them. The bill will hopefully save tens of millions of dollars by reserving costly prison beds for the most dangerous inmates and diverting low-level offenders to drug courts, substance abuse centers and other sentencing alternatives.


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