WEEKLY LEGISLATIVE REPORT—February 15, 2008

Senate unanimously approves ‘Made in Georgia’

By Sen. Tim Golden

On Thursday, legislation that I introduced as a means of promoting the sale of products manufactured in Georgia won Senate approval by a 42-0 vote.  SB 359, which would create a “Made in Georgia” campaign, had been cleared unanimously by the Senate Economic Development Committee on Tuesday after picking up a key endorsement by the National Federation of Independent Business on Monday.

I am hopeful the House of Representatives will also give the legislation speedy approval, and the governor will sign it into law so that Georgia manufacturers can give their products the “Made in Georgia” stamp of certification as soon as possible.

SB 359 enjoys broad bipartisan support in the legislature and is backed by numerous business and labor organizations that see the benefit of promoting Georgia-made products.   I appreciate Lt. Gov. Casey Cagle, who endorsed the legislation, along with Senator Chip Pearson (R-Dawsonville), lead co-sponsor, for putting the bill on a fast track through the Senate. 

More good news for Georgia manufacturers came in the form of a House Ways & Means subcommittee approval of HB 237, an effort I have long supported, which would expand the sales tax exemption for machinery and parts used in the manufacturing process.  The bill would provide some long overdue tax relief for manufacturers. The current sales tax exemption is too restrictive as compared to other states, and this legislation would give a needed boost to the manufacturing sector and Georgia’s employment picture.

The exemption, known as “integrated plant theory,” would encourage manufacturers to invest in new facilities and to upgrade existing plants, allowing Georgia factories to remain competitive with those in other states and continue to create jobs.

Supporting Georgia’s manufacturers is important because studies show that manufacturing growth spawns more economic activity and jobs than any other sector. That is especially true in the rural regions of the state. SB 359 and HR 237 are two proposals that will help reverse the trend of manufacturing job losses in Georgia.

Last week, I reported on property tax relief legislation that had cleared the Senate Finance Committee. On Tuesday of this week, both SR 686 and SR 796 received overwhelming approval by the full Senate.

SR 686, approved by a 53-3 vote, would freeze the assessed value of residential property at the 2008 level until the property is sold to someone other than the owner’s spouse. The property’s assessed value could be adjusted if additions or improvements requiring a building permit were made to the residence.

SR 796, passed 48-7, would - provide a similar freeze in assessed values on all property, residential or otherwise, at the 2008 level. Increases in the valuation of residential property would be capped at 4 percent for tax year 2010 and 2 percent for each subsequent tax year. For non-residential property, the valuation increase would be limited to 6 percent in 2010 and 3 percent for subsequent years.

Both resolutions are proposed constitutional amendments and require two-thirds approval by the House of Representatives and then must be ratified by a majority of Georgia voters in the next general election.

Chief Justice Leah Sears of the Supreme Court of Georgia addressed a joint legislative session Wednesday to deliver the annual State of the Judiciary report. Justice Sears reminded legislators that our state’s judges have not had a substantial pay increase since 1999. HB 119, which is pending in the Senate Appropriations Committee, would provide an increase.

Presently, first-year associates in some Atlanta law firms are paid more than some Georgia Superior Court judges. We must reduce the gap between judges’ compensation and the salaries available in the private sector if we are to continue attracting and retaining the best and brightest legal minds to preside over our courts.

The Senate Transportation Committee favorably reported legislation this week that would enable multiple counties in Georgia to join together in implementing a special local option sales tax for transportation projects, known as a T-SPLOST, if voters in those counties approve. SR 845, which is seen as a solution to helping relieve traffic congestion in the metro Atlanta area, now goes to the Senate floor for consideration.

• Sen. Tim Golden represents the 8th District (Brooks, Cook, Lowndes, and Thomas counties) in the Georgia State Senate.  Contact him at 121-A State Capitol, Atlanta, GA 30334; by phone at 404-656-7580; or by e-mail at tim.golden@senate.ga.gov.