Tax Exemptions Georgians Could Lose

Radio Commentary, 90.7, 91.7 New Life FM, February 25, 2011
By Sue Ella Deadwyler

Good morning, Jim. For the last six months members of the Special Council on Tax Reform have explored new ways to tax Georgians. The Council recently reported its findings to the Special Joint Committee appointed to consider their plan. In January, I reported the Council’s recommendation that Georgia begin July 1st to tax every service used by consumers, from getting a hair cut and having clothes dry-cleaned to having a car repaired.

But today, I’m reporting the Council’s plan for tax exemptions. They want to continue tax exemptions for government, business, manufacturing, agriculture and certain miscellaneous categories, but NOT for consumers. If the Council’s plan is adopted and consumers lose current tax exemptions, they would be phased in from now until 2014.

First, the state would tax everything from groceries to the price of riding public transportation, including MARTA. We would pay state taxes to Hospital and Housing Authorities and on water mains – the lines and pipes that carry water to our homes and businesses. All that could happen as early as July 1st, this year, if the Special Joint Committee of 12 legislators decide that’s the way to raise more tax revenue.

And, by July 1, 2012 they could tax prescription drugs and eye glasses, contact lenses (including samples), nonprofit nursing homes, hospices, hospitals, new animal medications, as well as sample medication and devices you get at the doctor’s office. Then add to that your blood pressure and monitoring apparatus, insulin delivery systems, plus oxygen and other durable medical equipment.

By July 1, 2013, school lunches could be taxed, as well as tickets on sales at K – 12 schools, religious organization fundraisers, and services for child care or maternity homes, plus sales to nonprofit blood banks. I’ll stop there, but there are more scheduled to take effect July 1, 2014.

To comment on these recommendations, call the Joint Committee cochairmen: Senator Heath at 404 656-3943* and Representative Channell at 404 656-5103*. They need to hear from you while they’re considering this huge change that could tax, not only things we buy but on every service we use. For Georgia Insight I’m Sue Ella Deadwyler, your Capitol correspondent.