NEWS - Local Politics

Georgia Lawmakers Consider Service Tax

April 11, 2011 – With a projected budget shortfall of more than $823 million in FY 2011 and $1.94 billion in FY 2012, Georgia lawmakers begin discussions this week on a new budget. The Georgia legislature is not as quick as some to propose raising taxes but most agree that some ‘tax reform’ will be necessary to move toward a solution.

One proposal is a tax on services. Recently, Republicans unveiled a plan for addressing Georgia’s budget woes. Georgia State Rep. Mickey Channell, R-Greensboro, and fellow Republicans included a plan to tax most services throughout Georgia.  

But with strong lobbies most service industries managed to draw exemptions. As it stands now, only three have remained to bear the increased tax burden: Satellite television, used car sales, and auto repair and service. The discussion continues but it appears that whatever industries are finally taxed, services are going to cost Georgian’s more in the coming year.