Six weeks before the Legislature convenes, House Speaker Glenn Richardson on Friday slimmed down his plan to eliminate all property taxes in Georgia —- and instead will push for the removal of school taxes paid by homeowners, and taxes on personally owned cars and trucks.

"Instead of trying to change the entire ad valorem system in one fell swoop, we'll do it a little bit at a time," Richardson said to a decidedly skeptical and silent crowd of educators.

The House speaker promised the gathering that their systems would lose no money on the deal. "You'll get exactly the amount of money you set for your budget," Richardson told the crowd.

The House speaker announced his change of direction at the annual joint meeting of two influential education groups in the state —- the Georgia School Boards Association and the Georgia School Superintendents Association.

Reaction was quick.

"Why start with us?" asked Jim Simms, superintendent of the Clarke County school district, which includes Athens.

Under Richardson's proposal, about 1.9 million Georgia homeowners would see their annual property taxes decrease substantially, depending on their current school millage. The elimination of annual taxes on cars and trucks would affect about 6 million vehicles.

Richardson said his revised plan would cost about $1.3 billion, and would be paid for in three ways:

> The restoration of the sales tax on groceries, "so that all 9.4 million Georgians will pay."

> A new sales tax on state lottery tickets. "It is a purchase, after all, and it should be taxed."

> A broadened sales tax that will extend to fees paid to attorneys, accountants, architects, plumbers, electricians, hair stylists and mechanics, "but not on medical services."

The speaker said he would also insist on strict limits on property tax reassessments, including a freeze on homestead exemptions. The freeze would remain in place until a property changes hands.

The proposal would be contained in two constitutional amendments that must pass both chambers of the Legislature by a two-thirds majority to be placed on a referendum ballot next November.

Originally, the House speaker also had in his crosshairs property taxes levied by cities and counties and by the state. An array of forces lined up against him on that proposal, and both Gov. Sonny Perdue and Lt. Gov. Casey Cagle expressed doubts.

Richardson denied that his revision was a retreat, or that he was having trouble winning support for the plan within his Republican caucus. "I could make this happen the way I've got it out there," the House speaker told a reporter. "But so many people have so many reservations, I thought, we'll show them how much money this produces."

The elimination of school taxes on commercial real estate would follow the next year, if the new system is proven to work, Richardson said. "If there's not enough money, we won't go to the next level," he said.

The House speaker acknowledged to school officials that he was addressing a tough crowd. "Thank you for not throwing things at me," he quipped.

Discuss this article on the forums. (0 posts)