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• All such taxes would be repealed as of January 1, 2011, other than for repayment of previously obligated debt.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.
• • 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:
• • 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.