Staff Analysis of the Legislation
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SUMMARY:
This resolution would propose a constitutional amendment to abolish and prohibit all state and local taxes, fees and liens on property and would change provisions regarding local taxation for education and other tax reform.
REQUIRMENTS:
- All taxes, fees or liens on property would be prohibited with eminent domain the only method for seizing property.
- All such taxes would be repealed as of January 1, 2011, other than for repayment of previously obligated debt.
- School districts would be authorized to levy sales taxes for operational purposes, set by resolution in January and approved by a 60% majority on April 15 of each year, to become effective on July 15 of that year.
- The resolution would add a required 60% majority to approve an educational local option sales tax for capital improvement.
- It would also add a food and beverage exemption to the SPLOST’s for capital improvement.
- TAD obligations could be completed with ad valorem taxes, if they were established prior to 1/1/11.
- It would eliminate Community Redevelopment Tax Incentive programs.
- It eliminates all references to ad valorem taxes and replaces them with references to local sales taxes.
- After 1/1/11, no governmental body’s debt would be able to exceed 10% of their total revenue receipts, including local sales taxes, less refunds, and no new debt could occur without a 60% majority in a special election.
- Debt incurred on or after 1/1/11 on behalf of a “special district,” could be repaid with a portion of local sales taxes within the “special district” to pay principal and interest within 30 years, but only after a 60% majority approval by voters.
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- Funds to repay the debt must be kept in a “sinking fund,” for that special debt
- Funds must be kept separate but may be invested as allowed by law.
- Existing debt on 1/1/11 will count toward allowable 10% debt noted above.
- Temporary loans to pay expenses [TAN’s] could not exceed 75% of the total revenue and must be payable on or before 12/1 of each year that the loans are made. No loans could be obtained if the debt from the previous year is unpaid.
- A “sinking fund” would be required for any unpaid debt prior to 1/1/11, must be kept separate and could be invested.
- A “sinking fund” would be required for bonded debt after 1/1/11, must be kept separate and could be invested.
- January 1, 2011 and thereafter, no general obligation bonded indebtedness could be incurred without adoption of a local law approved by 2/3 of the members elected to the General Assembly in a roll call vote, and by a 2/3 vote of qualified electors residing in the taxing jurisdiction.
- Community Improvement Districts could be created to provide:
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- Street and road construction and maintenance;
- Parks and recreation;
- Storm water and sewage systems;
- Water treatment, storage and distribution systems;
- Public transportation;
- Terminal and docking facilities and parking; and
- Others as provided by law.
- A Community Improvement District would be able to levy taxes as provided by the Constitution and law.
NOTES:
- Public school funding would rely solely on an unstable sales tax system, as would all other forms of local government.
- Tax collection, it appears, would begin July1 of each year. The first year, schools and governments would have no revenue from the inception of the law until 6 months later.
- If the public voted against a school sales tax for operation, the children of the county/city/system would be denied a public education in that district. That could pose Constitutional questions.
- Schools and other government entities in impoverished areas with little or no commercial enterprise would go bankrupt.
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