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The
General Assembly met for days 23-26 this week. As a reminder, the
adjournment resolution, which contains the full calendar can be found here.
Noteworthy
Items:
- Governor Deal unveiled major tax legislation this
week: HB918
would:
·
Combine the
2017 Internal Revenue Code (IRC) bill (HB821) with 2018 IRC updates and
also address increased state revenue projections stemming from federal
tax reform by:
o Doubling the standard deduction
effective January 1, 2018
o Reducing the income tax rate for
individuals and businesses from 6% to 5.75% effective January 1, 2019
o Further reducing the income tax rate
for individuals and businesses to 5.5% effective January 1, 2020
o Eliminating the sales tax on jet fuel
- The House Economic Development & Tourism
Committee held a hearing on 2/20. At the hearing the Committee
discussed:
·
HR1107
– A Resolution by Rep. Jason Spencer (R-Woodbine) urging the
Department of Economic Development’s Center for Aerospace Innovations and
its Aerospace, Defense, and Advance Manufacturing (ADAM) team, along with
the Department of Transportation and other relevant state agencies to
collectively work to construct, enhance, focus, and recruit the emerging
commercial space industry in GA. The resolution passed out of committee.
·
HB843
– A bill by Rep. Jason Shaw (R-Lakeland) to expand the state’s military
zone program so as to allow any census tracts inside publicly owned
industrial parks located in a county with a military base with at least
5000 personnel to be eligible to apply for military zone status and enjoy
enhanced job tax credits from the granting of that status. The bill
passed out of committee.
·
The
committee also heard about the American Transaction Processors
Coalition’s (ATPC) “P20 Conference” to be held in Atlanta this October
focused on the FinTech industry and featuring many high-profile attendees
including former British Prime Minister David Cameron and U.S. Treasury
Secretary Steve Mnuchin.
- The Senate Transportation Committee held two
additional hearings to discuss and ultimately pass SB386. As a
reminder, this bill would create an optional 40 year T-SPLOST for
metro-Atlanta counties to create a seamless regional transit system
and create the “ATL Commission” within GRTA to facilitate planning,
funding, and construction. Chairman Beach shared projected revenues
for core metro-Atlanta counties from the penny transit SPLOST that
would total $708 million:
·
Fulton =
$258 million
·
DeKalb
= $111 million
·
Clayton =
$50 million
·
Gwinnett =
$149 million
·
Cobb = $139
million
- The Senate Finance Committee held a hearing on
2/21 and passed out of committee Senator Albers 432. Importantly it
was a substitute bill that simply creates a schedule to review
existing tax credits and exemptions rather than sunsetting them. The
Committee passed the bill as a substitute.
Bill Tracking:
Note: Bills added for the first
week are italicized. Movement on bills highlighted in red.
HB59
– Historic Tax Credits
Bill
Sponsor:
Rep. Ron Stephens (R-Savannah)
Bill Status: Senate Recommitted on 1/8/18
Summary: The bill provides tax credits against state income taxes
for the rehabilitation of historic structures, and provides re-approval
of additional tax credits for current recipients of credits. The taxpayer
will be allowed a tax credit against the tax imposed at such time as the
certified rehabilitation is completed. An applicant seeking to claim a
tax credit will submit an application to the GA Dept. of Community
Affairs for pre-approval.
HB61
– Internet Sales Tax bill
Bill
Sponsor:
Rep. Jay Powell (R-Camilla)
Bill Status: Passed House; Passed Senate Finance
Summary: This bill was attached to HB329 and passed out of Senate
Finance. It would create an economic nexus test to determine whether an
online retailer is responsible for collecting and remitting sales tax. If
the online retailer either (1) does a certain dollar amount in sales each
year ($250,000) or (2) transacts a certain number of sales each year
(more than 200), that online retailer will be required to collect and
remit sales tax. The goal is to create parity for bring and mortar
retailers in communities across GA.
HB69
– Tier Tax Credit Claims
Bill
Sponsor:
Rep. Paulette Rakestraw (R-Hiram)
Bill Status: House Second Reader
Summary: Beginning on Sept. 1, 2019 and annually for 5 years, the
DCA Commissioner will issue a report to the Governor, President of the
Senate, and Speaker of the House, including a list of all counties and
their tier tax credit classifications, as well as the following
information: (A) The total number of employers that claimed a credit
under O.C.G.A. 48-7-40; (B) The number of all credits earned and all
credits applied during such tax year; and (C) An estimate of the number
of jobs and overall economic impact produced by this code section.
HB70
– Tier Tax Credit System
Bill Sponsor: Rep. Paulette Rakestraw (R-Hiram)
Bill Status: House Second Reader
Summary: Amend O.C.G.A. 48-7-40 to provide that a county
classified as a Tier 4 county wil be reclassified as a Tier 3 if at least
70% of the county’s workforce commutes outside the county for work.
Additionally, if 70% of a county’s workforce commutes outside the county
for work, Tier 3 counties will be reclassified as Tier 2 counties, and
Tier 2 counties shall be reclassified as Tier 1 counties.
HB118
– Fantasy Contests Act
Bill
Sponsor:
Rep. Trey Kelley (R-Cedartown)
Bill Status: Senate Recommitted on 1/8/18
Summary: Provides for the licensing, registration, regulation, and
taxation of fantasy contest operators. The bill creates the Registered
Fantasy Contest Operators Act. Fantasy contest operators must register
with the Commissioner of the Dept. of Revenue. A fantasy contest operator
must pay an annual registration renewal fee and 6% of the fantasy contest
operator’s gross fantasy contest revenues for the preceding 12 months.
The registration application is exempt from public disclosure unless
challenged in the courts.
HB158
– Georgia Gaming Commission & Destination Resorts
Bill Sponsor: Rep. Ron Stephens (R-Savannah)
Bill Status: House Second Readers
Summary: To provide for the creation, membership, appointment, and
duties of the Georgia Gaming Commission and to authorize the licensing of
up to 2 destination resorts in this state.
HB205
– Regulation of Exploration & Extraction of Oil and Gas
Bill Sponsor: Rep. John Meadows (R-Calhoun)
Bill Status: Passed House & Senate; went to conference
committee; 1/29 House conference committee
adopted
Summary: Provides for regulation of the exploration and extraction
of gas and oil; provides the authority to create an Oil and Gas Board;
requires development of rules and regulations related to drilling and
extraction; amends provisions relating to drilling permits; increases the
amount of bond security for drilling operations; provides for the
authority of local governments; and to impose a severance tax on the
extraction of oil and gas. The bill also defines ‘hydraulic fracturing.’
HB225
– Licensing & Sales Tax Exemption for Ride Share Networks
Bill
Sponsor:
Rep. Jay Powell (R-Camilla)
Bill Status: Senate Recommitted 1/8/18
Summary: Repeals an inoperable sales tax exemption related to ride
share networks and imposes collection and remittance of sales taxes on
certain persons that facilitate or broker and accept or process payment
for certain sales. Individuals that utilize ride sharing networks would
be required to pay a 4% sales tax for each trip.
HB257
– Local Government Authorities Reporting Requirements
Bill
Sponsor:
Rep. Jan Tankersly (R-Brooklet)
Bill Status: passed House; favorably
reported Senate Government Affairs Committee
Summary: Consolidates reporting requirements to the Department of
Community Affairs for local government authorities.
HB329
– Personal Income Tax
Bill Sponsor: Rep. Jay Powell (R-Camilla)
Bill Status: Passed House & Senate; went to conference
committee
Summary: Modifies the rate of tax imposed on the Georgia taxable
net income of individuals; provides for an inflationary index rate;
adjusts the amounts of the personal exemptions and standard deductions
based on the inflationary index rate; and provides for a non-refundable
earned income tax credit. The current Georgia taxable net income rate of
one to 6% of taxable income would be removed from GA Code and replaced
with one rate of 5.4%. *Note: This is a potential vehicle for any
additional tax policy this session.
HB650
– State Symbols & Monuments
Bill Sponsor: Rep. Mary Margaret Oliver (D-Decatur)
Bill Status: House Second Readers -
Referred to Government Affairs Committee
Summary: To allow local governments to relocate, remove, conceal,
obscure, or alter certain monuments.
HB658
– Excise Tax on Rooms, Lodging, & Accommodations
Bill
Sponsor:
Rep. Earl Ehrhart (R-Powder Springs)
Bill Status: referred to Ways and
Means; 1/24 committee hearing; 1/31 passed House
Summary: To remove the sunset date on the collection of excise tax
on rooms, lodging, & accommodations.
HB735
– Railroad Tax Credit
Bill Sponsor: Rep. Patty Bentley
Bill Status: House Second Readers; Referred to House Ways &
Means; passed Committee by
substitute; passed House
Summary: To create an income tax credit for expenditures on the maintenance
of railroad track owned or leased by a Class III railroad.
HB753
– Lodging Excise Tax Exemptions
Bill
Sponsor:
Rep. Don Hogan (R-St. Simons)
Bill Status: House Second Readers; Referred to Transportation
Committee
Summary: To exempt nonprofit conference and retreat centers from
the excise tax on rooms, lodging, & accommodations.
HB887
– GA Communications Services Tax Act
Bill Sponsor: Rep. Jay Powell (R-Camilla)
Bill Status: referred to Ways & Means; 2/14
Summary: To create the “Georgia Reverse Auction Broadband
Deployment Program”; to allow municipal corporations to provide broadband
service; to create “Broadband Ready Communities”; to allow EMCs to
provide broadband service; eliminates franchise fees; amends
communications services tax; limits pole attachment rates.
HB888
– Freeport Exemptions
Bill
Sponsor:
Rep. David Knight (R-Griffin)
Bill Status: referred to Ways & Means Committee; passed Committee
Summary: To create uniform timelines for filing and responding to
applications for freeport exemptions.
HB918
– Georgia Tax Reform
Bill
Sponsor: Rep. Chuck Efstration (R-Dacula)
Bill Status: Referred to Ways & Means; passed
Committee; passed House
Summary: To double the standard deduction, lower the income tax
rate for individuals and businesses, and eliminate the sales tax on jet
fuel.
HB936
–Statewide School Start Date
Bill
Sponsor:
Rep. Ron Stephens (R-Savannah)
Bill Status: Referred to Education Committee
Summary: Create a state law that no school in Georgia can begin
the school year before the third week in August.
HR1076
– Resolution on Port Funding
Bill
Sponsor:
Rep. Bill Hitchens (R-Rincon)
Bill Status: Referred to Economic Development & Tourism
Committee; passed House
Bill Summary: A resolution urging the federal government to
provide port funding.
HR1091
– House Study Committee on Athens-Atlanta Transportation Link
Bill Sponsor: Rep. Deborah Gonzales (D-Athens)
Bill Status: referred to Transportation Committee
Summary: Create a study committee to study an Athens to Atlanta
rail line
SB2
– The Fairness, Accountability, Simplification, and Transparency –
Empowering Our Small Businesses to Succeed (FAST) Act
Bill
Sponsor:
Sen. Mike Dugan
Bill Status: House withdrawn; Recommitted; referred to House Small Business Development
Committee; passed committee as a substitute on 2/15
Summary: The bill would require state and local government
agencies that issue licenses or permits to establish turnaround times
they would have to meet. If they fail to process a license or fee by the
deadline, they would have to reduce the processing fee. The bill would
also require Georgia’s professional licensing boards to issue provisional
licenses for businesses either renewing their licenses or moving to
Georgia from out of state. Finally, the bill would establish a system for
ranking and comparing state and local agencies’ permitting processes
based in part on fees they charge and how long they take to issue
licenses or permits. Additionally, the bill makes it easier for the
legislature to override state agency rules by requiring simple majorities
of the Georgia House of Representatives and Senate rather than 2/3 votes
required in current law.
SB3
– Creating Opportunities Needed Now to Expand Credentialed Training
(CONNECT) Act
Bill
Sponsor:
Sen. Lindsey Tippins
Bill Status: Passed House & Senate; went to conference
committee
Summary: Requires the State Board of Education to prescribe a
minimum course of study in career education for students in grades 6-12.
The course of study should include career exploration and career-oriented
learning experiences that include participation in work-based learning
programs like internships, apprenticeships, cooperative education, or
employability skill development; and rigorous industry credentialing.
SB
6 – Georgia Regional Transit Council
Bill Sponsor: Sen. Steve Gooch
Bill Status: House withdrawn; recommitted
Summary: Creates the Georgia Regional Transit Council that will be
attached to the Dept. of Transportation for administrative purposes. The
Council is created to develop a state-wide strategic transit plan with
the guidance of a recognized industry leader in delivering transit
strategy for multijurisdictional entities that emphasizes first-mile and
last-mile services, the development of a seamless transportation network
with dependable trip times for commuters, the enhancement of limited
access highways, road congestion relief, safety enhancements, and plans
for a future of transportation innovations.
SB17
– The “Brunch Bill”/ The “Mimosa Mandate”
Bill
Sponsor:
Sen. Renee Unterman
Bill Status: Passed Senate Regulated Industries Committee as a
substitute; passed Senate; referred to
House Regulated Industries Committee
Summary: To let local voters decide whether restaurants can serve
alcohol and retail stores can serve beer and wine at beginning at 11 am
on Sundays.
SB79
– Georgia Gaming Commission & Destination Resorts
Bill
Sponsor: Sen.
Brandon Beach
Bill Status: Referred to Senate Regulated Industries Committee
Summary: To provide for the creation, membership, appointment, and
duties of the Georgia Gaming Commission and to authorize the licensing of
up to 2 destination resorts in this state.
SB191
– Petroleum Pipelines
Bill
Sponsor:
Sen. Rick Jeffares
Bill Status: House withdrawn; Recommitted to Natural Resources
Committee
Summary: Requires that on or after July 1, 2017, any construction
of a new petroleum pipeline or an extension in this state requires a
permit from the Director of EPD regardless of whether the petroleum
pipeline company intends to exercise any power of eminent domain. The
Director will conduct hearings to determine whether the location and
construction of the portion of the petroleum pipeline for which the
permit is sought are consistent with, and not an undue hazard, to the
environment and natural resources of this state.
SB302
– Public Monuments
Bill Sponsor: Sen. Elena Parent
Bill Status: Referred to Government Oversight Committee
Bill Summary: To allow local governments to relocate, remove,
conceal, obscure, or alter certain monuments.
SB328
– Repealing Tax Credits
Bill Sponsor: Sen. John Albers
Bill Status: 1/24/2018 Passed Senate Finance; Passed Senate; referred to House Ways &
Means Committee
Bill Summary: This legislation is a result of Sen. Albers’ study
committee examining the current tax credits in Georgia. This study
committee met numerous times in 2017 and issued its final report in
December ’17. The report suggested that the General Assembly repeal three
tax credits for Federal Qualified Transportation Fringe benefits, private
driver education, and diesel particulate emission reduction technology
equipment. SB328 aims to repeal all three of these credits. Revenue
related bills have to originate in the House but we anticipate the Senate
attaching the repeal of these tax credits to another tax bill.
SB379
– Georgia Major Airport Operations & Management Act
Bill Sponsor: Sen. Burt Jones
Bill Status: Senate Hopper; Referred
to Transportation Committee
Bill Summary: To create the Georgia Major Airport Operations and
Management Board, provide for its membership, duties, powers, and
responsibilities, ad to transfer certain authority pertaining to major
airports from counties, municipalities, and other political subdivisions
to such board.
SB386
–ATL Commission
Bill Sponsor: Sen. Brandon Beach
Bill Status: Referred to Transportation Committee; passed Committee
Summary: To provide an exception to the ceiling on local sales and
use taxes; to provide for the imposition of a transit special purpose
local option sales and use tax within special districts; to create the
Atlanta-region Transit Link “ATL” Commission.
SB402
– Achieving Connectivity Everywhere (ACE) Act
Bill Sponsor: Sen. Steve Gooch
Bill Status:
Senate Hopper
Bill Summary:
Allow GDOT to enter into public-private partnerships to deploy broadband
statewide; create a broadband grant program at DCA; create “Broadband
Ready Community” designations via DCA; require local governments to
incorporate broadband deployment in comprehensive plans and service
delivery strategies.
SB426
– Broadband Infrastructure Leads to Development (BILD) Act
Bill
Sponsor:
Sen. Steve Gooch
Bill Status: Referred to Regulated Industries Committee
Summary: To streamline the deployment of wireless broadband in
public rights of way by limiting the ability of local governments to
prohibit, regulate, or charge for use of public rights of way under
certain circumstances.
SB432
– Georgia Tax Credit Business Case Act
Bill
Sponsor:
Sen. John Albers
Bill Status: Referred to Senate Finance Committee
Summary: To eliminate, starting in 2018, various tax credits and
exemptions, through the year 2025.
SB460
– Rebrand MARTA as “The ATL”
Bill
Sponsor:
Sen. Brandon Beach
Bill Status: Referred to Transportation Committee; passed Committee
Summary: Companion bill to SB386 (and will only move forward if SB386
moves forward) that amends the MARTA Act of 1965 to provide for the
adoption of a logo and brand of the term “ATL” for all MARTA trains and
buses on or after January 1, 2023; and clarifies the responsible parties
for debt in relation to the issuance of bonds.
SR502
– High Speed Rural Broadband
Bill Sponsor: Sen. Steve Gooch
Bill Status: referred to Rules Committee;
Passed Senate
Bill Summary: A resolution encouraging Congress and federal
agencies to develop policies and funding sources to help bring high-speed
broadband access to Rural America.
SR613
– English as Official Language
Bill
Sponsor:
Sen. David Shafer
Bill Status: Senate Hopper; Referred
to Rules Committee
Bill Summary: A resolution proposing an amendment to the Constitution
so as to declare English as the official language of the State of
Georgia.
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