A GREAT Plan for Georgia: The Elimination of All Property Taxes
The time has come to eliminate all property taxes in Georgia, and I firmly believe the people of the state of Georgia should be given an opportunity to vote on a constitutional amendment to repeal all property taxes. That opportunity could come in November of 2008 if the General Assembly will agree that Georgia’s economy should be based on the exchange and receipt of money and not taxing property.
Unfortunately, there has been some confusion about the details of the current plan to eliminate property taxes. We are not proposing to raise the sales tax or income tax rates. When HR 900 was originally written, it was intended simply as a framework to open debate, gather ideas, and obtain input. Since then, we have received complaints, suggestions, and opinions from citizens all across the state and that is exactly what we wanted.
From the beginning of this process, our goal has been to eliminate all ad valorem taxes in Georgia. The details of exactly how we reach that goal have changed and will continue to change as we weigh the best options for our state, but one thing is clear. The current property tax system is outdated, unfair, and excessive.
Georgia is divided into 159 counties, each with the power to tax their residents. 180 school districts also each have the power to tax. But that power goes beyond simply collecting taxes. Rather than determining the amount of money they have and then creating a budget, a county can simply determine how much money it needs and then decide how much to charge their residents.
If a county or school district decides they need $50 million, all they have to do is determine where to place the millage rate and their property values in order to raise $50 million. If times get tough, they simply raise the millage rate or increase property values rather than tighten their belts like working families must do. The system is completely backward.
The biggest part of the problem is that property taxes are increasing faster than personal income. Since 1990, personal income has increased 146 percent and property taxes have increased 176 percent. Even though people are not earning more income, the government is requiring that they pay more taxes.
Because of this phenomenon, a family can live in a home for 30 years and suddenly find they cannot afford it anymore because their property taxes have increased so much. This same family is not requiring any more services from their local government, and yet that government keeps taking more and more money from them. The biggest asset most people have is their home; it’s the American dream. Yet if they can’t keep up with increased taxes, they lose their home. Even after the home is paid for, they realize they only have a land lease. Refuse to pay the tax and see how long you keep it.
The current property tax system was created when we were an agricultural society and people made a living off of their land. The last overhaul of the system was 70 years ago, and since that time our economy has changed significantly. Home ownership has increased from 30 percent to 70 percent. We have moved from an agricultural society to a service-based society, as has the rest of the nation, and yet, we do not tax services at all.
It is the twenty-first century. It is time to go to a system that taxes the receipt and exchange of money, not the ownership of property. It is time to eliminate property taxes.
Our proposal is called the GREAT Plan, which stands for Georgia’s repeal of every ad valorem tax.
The GREAT Plan calls for a sales, use, and service tax of 4 percent. It also calls for an elimination of many sales tax exemptions that special interests have accumulated over the years. By taxing services and eliminating most exemptions, we can generate the same amount of money being generated from the property tax, and we can eliminate all property taxes in Georgia.
Local counties, cities and school districts will be guaranteed to receive no less than the amount they are currently receiving. If local control is what a community wants, they may continue local option sales taxes such as the SPLOST and ELOST, all of which will continue to be determined by the vote of the citizens.
We have opened a dialogue in this state on serious reform of taxes so that Georgia may lead the nation. I welcome any and all discussion and debate about tax reform and HR 900. Over the coming months, we will hold hearings and continue to seek advice. I look forward to hearing from you and working together to make Georgia a GREAT place to live, work, and raise a family.. If you would like to reach me, please call me at (404) 656-7573 or write me at: State Rep. John Lunsford, 401, State Capitol, Atlanta, GA 30334 or e-mail me at john.lunsford@house.ga.gov
I am in support of a property and vehicle tax elimination. However, due to the amount of some medical bills, I do not agree that medical services or prescriptions be included in the process.
By: Eric Peacock on September 20, 2007
at 11:51 am
I am also in agreement with the property tax elimination. The GREAT Plan sounds like a great idea. I hope we can do something about it very soon. I also agree with Mr. Peacock’s views on not including medical services and prescriptions in the plan.
By: Mrs. Cuff on October 10, 2007
at 2:33 pm
I’m all for the elimination of property taxes. If that cannot be agreed upon, how about the elimination of school taxes for those of us who do not have school-age children enrolled in the state of Georgia? Currently, this area of taxation is a rip-off!
By: CPM on November 7, 2007
at 6:47 am
I moved here from Florida, where there is no Ad Valorem tax. The proposal to do away with that tax is great. One thing however, you must pay close attention to all the ammendments included in this absurd attempt at removing this tax.
They want to imposed a sales tax increase of no more than 3%. Think about what you spent last year and what you will spend next year. If you add 3% to that, you will be paying more than 5 times what you are currently paying in Ad Valorem Tax.
If you want to do away with that tax, do away with it for real. Florida did not increase the sales tax it is 6%-7% in all areas. Don’t add another tax which will actually cost Georgians more than they are currently paying. Florida doesn’t even have a state tax and can budget the revenue a lot better. And before some smart alex says it, Yes, I am considering moving back. I came up here to train some supervisors and loved the landscape, so I stayed. But the taxes may be driving me away again.
By: David R. on November 14, 2007
at 1:14 pm
Foremost, homeowners get some benefit on tax returns
for taxes paid, it cost them less when they retire
(no rent or house payment.
Non-home owners have monthly rent to pay. Sales
tax increase hurts low in-
come families. I believe
most counties re-evaluate
real property annually so
the frequency needs a change. Due to age I did not have to pay school tax
yet my taxes doubled in one
year. Tax millage if too
lenient with county comm-
issioners. They can change
(increase) at their dis-
cretion and then spend
carelessly.
By: Malcolm Adair on December 12, 2007
at 3:28 pm
I agree with the new proposal. I think it is ridiculous what we pay in taxes all together, we should get some kind of break. I also agree with the elimination of school taxes for those who do not have children in the public (government funded) schools. I went to a private school and my parents not only had to pay my tuition, they had to pay taxes as well. I think its absurd.
By: Amy S. on December 14, 2007
at 11:17 am
I agree with all of the comments made above. We shouldn’t tax medical services, that already costs enough. By taxing meds and medical services that would only drive the cost up more and then we will be paying even more for medical insuarnce. And like the person from FL said, if you are going to do away with taxes, do away thenm for good dont just movev them to another area and stick it to us more. But he also needs to look at all the money FL makes from the rest of the U.S. on tourism.
By: D. Arnold on December 14, 2007
at 10:11 pm
Let’s stick to the issue, Eliminating the unfair ad valorem taxes. It is not right for someone who owns a home/property to have to pay the government taxes in order to keep it. That is outrageous. So if I come upon hard ship, and my house is paid for, I lose it if I can’t pay the government. If that ain’t crazy I don’t know what is. The whole point of the American dream is to own a piece of it, and those who have to pay ad valorem taxes do not own the home and never will.
By: G. on January 18, 2008
at 2:33 pm
Eliminate the tax. Do not change it to a 7 % title fee on used cars that is being voted on right now. This is unfair to the citizens that can only afford used vehicles and do not buy new cars from dealers.
By: JR on March 12, 2009
at 10:52 pm