House Nixes the "Birthday Tax"

The Georgia House has voted to adopt House Resolution 1246, in a sweeping 166 -5 vote.

The resolution amends the Constitution to end the ad valorem tax on vehicles, or the birthday tax, as it has become known.

Speaker of the House Glenn Richardson (R-Hiram) stated during legislation that without the birthday tax people would be more likely to purchase vehicles.

"They manage the payment, but say I can't afford the taxes," said Richardson. "You've got a chance to do something really good today."

Richardson also says it would be a bonus for the state.

"It would be nice to say, come to Georgia we won't charge you taxes on your cars," said Richardson.

The resolution comes just a week after Richardson pulled his own GREAT Plan from consideration. The GREAT plan would eliminate property taxes in favor of sales taxes on everything from legal advice to consumed goods.

The measure he introduced originally included a flat tax and an eradication of other taxes such as property tax and the ad valorem tax paid on automobiles.

"I am disappointed that we didn't do exactly what I wanted to do, because I firmly believe that county city's and schools are growing at a rate greater than the ability of people to pay, " said Richardson.

Richardson says he wanted to cap the rate of inflation because it was fair.

"They've got hired guns and a network they use to lobby against tax reform," he said.

The resolution also eliminates ad valorem property taxes for educational purposes and provides for optional homeowner incentive adjustments.

Once passed by both the house and the senate, voters in Georgia will have a chance to vote on the measure on the November 2008 ballot.

"I trust the people of the state of Georgia to do this," said Richardson. "If they decide they want to do this, I agree to be bound by this because I think it is good policy."