Legislative Update
Tax Reform
IN THE SPOTLIGHT FOR THE 2012 LEGISLATIVE SESSION
Private transfer fees and metal theft will also be important topics of discussion
THE 2012 LEGISLATIVE SESSION IS UPON US, AND THE STATE CONTINUES TO BE FACED WITH DIFFICULT FISCAL CHALLENGES. THE TWO TOPICS THAT WILL LIKELY DOMINATE THIS SESSION ARE THE STATE BUDGET AND COMPREHENSIVE TAX REFORM. WHILE GAR DOES NOT TYPICALLY ENGAGE THE LEGISLATURE ON THE STATE BUDGET, WE WILL CERTAINLY BE INVOLVED IN ANY AND ALL DISCUSSIONS CONCERNING TAX REFORM AS IT RELATES TO OUR INDUSTRY.
Prior to the 2011 Legislative Session the non-partisan Special Council on Tax Reform and Fairness recommended sweeping changes to Georgia’s tax structure. The Council’s recommendations focused on broadening the state’s tax base and improving Georgia’s competitiveness in keeping and attracting business. Most notably, the Council recommended a shift in emphasis from taxing income to taxing consumption. The final report contained a list of services the Council recommended for taxation; however with input from GAR, the report did not recommend a tax on real estate services. The legislature failed to reach a consensus on a tax reform package in 2011; however we anticipate this issue will be addressed again in 2012.
GAR will continue its work on several pieces of legislation that did not receive final passage during the 2011 Legislative Session. These include efforts to establish statewide standards that all local governments must follow if they attempt to adopt a vacant or foreclosed property registry. We will also continue our work on legislation to prohibit private transfer fees, which some developers have used to generate capital to fund projects. Private transfer fees are typically designed as a one percent conveyance fee for every transaction of the real property for a period of 99 years. These fees have been found to add costs and potential title issues for future conveyances. Georgia looks to become one of over 30 states to prohibit private transfer fees.
GAR expects legislators to once again address the issue of metal theft. We worked with a broad coalition of business groups and local governments to provide law enforcement with additional resources to address metal theft in 2009. This issue continues to negatively impact businesses and property owners across Georgia.
Each of these are complicated and important issues. In addition, as in years past, GAR will be defending private property rights from both the intended and unintended consequences of any number of bills introduced.
The success of our efforts at the Capitol is directly related to the participation of our membership. The GAR State & Local Government Affairs Committee meets at the state headquarters each Monday during the Legislative Session and is open to all members. Visit
www.garealtor.com/Advocacy to learn more about how you can be involved in GAR’s political efforts. There is an old saying that bears repeating: “If real estate is your profession, then politics is your business.” I hope you’ll consider participating in these meetings.
JOHN BARBOUR IS THE DIRECTOR OF GOVERNMENTAL AFFAIRS FOR THE GEORGIA ASSOCIATION OF REALTORS.
22 I GEORGIA REALTORJANUARY I FEBRUARY 2012
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