Wednesday, November 7, 2007

GREAT Tax Update

Glenn Richardson, Georgia Speaker of the House, announced earlier this week some of the items that conceivably would and wouldn't be taxed under his "GREAT" plan. Among those services that will now be taxed is rental property. Awesome news that should create major headaches for landlords in Athens and Watkinsville, and a major expense for those who rent (try adding 7% to your rent and see if you like what you get). Click here for more. However, Insider Advantage offers more detail, and says rental properties are not taxed as long as you are a legal Georgia citizen. IA gives lots more detail here (subscription required) as does Atlanta Business Chronicle (no subscription required); short story: lots of B2B services are taxed up to a point, and consumers will still be taxed on most of their purchases. It appears as if businesses have gotten some breaks.

A major problem with this whole plan (other than it being a bad idea in general) is that it is a moving target. Just 60 days before the session begins, and we are still adjusting some rather large details.

There is no doubt this plan is bad news for local governments, and I'm pleased the Governor came out against it. Nice to see him take a stand on this issue -- it's bad for business, bad for citizens, bad for local government -- that means its bad for Georgia. Only one group benefits -- the state government.

No comments: