ATLANTA (January 5, 2009) – The Senate Local Sales Tax Collection Study Committee met at the Capitol for the final time today and introduced a draft legislation entitled the “Local Tax Collection Act.” The Act would allow local governments to choose their preferred method of sales tax collection.
Committee members took time to review highlights of the draft legislation and discussed possible additions or changes to include before the final bill is submitted. Collecting local tax income in a more efficient manner could have an enormous impact on local and state-wide revenue. Senate Majority Leader Chip Rogers (R-Woodstock) chairs the committee and believes that this proposed legislation will be the beginning to correct what he sees as a seriously flawed system.
“The current collection system is simply not working and we have a duty as lawmakers to ensure that our local governments have the ability to most effectively manage tax dollars,” said Sen. Rogers. “This proposed legislation is seen as a starting point and our committee is in the process of coming to a solution that will benefit the state as a whole without increasing the burden on local businesses.”
The committee’s proposed legislation would give city and county governments the option of conducting their sales tax collection themselves, outsourcing the collection duties to a private service, or continue to utilize the Department of Revenue (DOR) as their collection agency. The committee has heard from local city and county officials in past meetings who believe that having the option of outsourcing sales tax collection could potentially bring millions of tax revenues to their areas that is currently being unaccounted for by non-filing businesses or ones that are incorrectly categorized for their services. Currently DOR collects all local sales and use taxes on behalf of cities and counties. Local governments are subsequently charged one percent of the amount collected, regardless of the total cost of collection, which is used by the department for administrative purposes.
Several committee members suggested that any proposed legislation should include provisions for a uniform filing system that can cater to electronic filing as well as other means if needed by smaller businesses with less tax liability. The panel urged that any private auditors should be held to a fair and objective set of standards and that the bill’s policy should consider unique county structures such as Fulton which is made up of municipalities before deciding on a final version of legislation.
The Study Committee includes Senators Mitch Seabaugh (R-Sharpsburg), John Wiles (R-Marietta), Tim Golden (D-Valdosta), Emanuel Jones (D-Decatur), and several local officials from across Georgia, whose goal is to ensure that taxpayers’ hard earned money is collected in the most efficient, low-cost manner possible by local governments.
Sen. Rogers stated that the committee is in the process of amending and finalizing several details of the Local Tax Collection Act and will formally submit the proposed legislation to be considered for the 2009 General Assembly which convenes Monday, January 12th.
Sen. Chip Rogers serves as Senate Majority Leader. He represents the 21st Senate District which includes portions of Cherokee and Cobb counties. He can be reached at his office at 404.463.1378 or by email at chip.rogers@senate.ga.gov.
PRESS RELEASE
For Immediate Release:
January 7, 2009
For Information Contact:
Raegan Weber,Director
Matt Colvin, Communications Associate
matthew.colvin@senate.ga.gov
404.656.0028