Republican Party Ninth District
Rep. David Ralston

While politicians at all levels wring their hands and avoid solutions, Georgia's homeowners continue to feel the bite of rising property tax bills.

Georgia homeowners not only face the fearful prospect of increases in their property taxes each year, they have a birthday tax each year when it is time to buy car tags.

However, real tax reform may finally be on its way to Georgia.

The Republican majority in the Georgia House of Representatives, under the leadership of Speaker Glenn Richardson, is working on a plan to be considered in January when the General Assembly convenes.

The proposal calls for the repeal of all property taxes. If approved, the plan would eliminate taxes on houses, land, automobiles, trucks, boats and commercial inventory.

Instead of taxing property ownership, the plan would provide for the 4 per cent sales tax on all products and all services at the point of final delivery. Many services now exempt from the sales tax would be taxed.

There are 1,261 entities in Georgia with the power to impose a tax. These include counties, cities, school districts and various government authorities.

Regardless of whether one supports this plan, there is little doubt that the property tax is almost out of control. Since 2000, property taxes have experienced an annual average increase of 8.5 per cent. This bears no relationship to the ability to pay. Between 1990 and 2005, personal income in Georgia increased 146.8 per cent. During this same 15-year period, property tax revenues increased 176.8 per cent.

The burden of the property tax is likewise unfair. Currently in Georgia, 1.5 million homeowners pay property taxes in a state with a population of over 9,300,000.

As with any proposal for real and fundamental change, this plan has created controversy and generated opposition. In the end, this proposal would require a constitutional amendment approved by the voters of Georgia in November, 2008.

The plan is not perfect. Some questions remain unanswered and changes may still be made.

But, after years of paying only lip service to an issue that matters in the lives of Georgia's families, there is a serious and real effort underway to change the way we do business.

State Representative David Ralston (R-Blue Ridge) represents Fannin, Gilmer and Dawson Counties in the State House of Representatives. He is chairman of the House Judiciary (Non-Civil) Committee.