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Schools propose sales tax
by By Joel Martin Sports writer
3 years ago | 628 views | 1 1 comments | 6 6 recommendations | email to a friend | print
The Troup County school board Thursday proposed a constitutional amendment that would allow a 1 percent sales tax for school operations, with at least 70 percent of the revenue being used to roll back the property tax rate.

The board also approved next year’s school calendar and announced the Dec. 31 retirement of Janet Johnson, who has been with the school system for about 30 years, including the past 4 1/2 as the first principal of Franklin Forest Elementary School. Johnson will become principal of the Auburn, Ala., school system’s Early Learning Center.

The proposed constitutional amendment, which is backed by the Georgia School Boards Association, would require statewide voter approval. Voters in each of the 180 school districts could then decide whether to impose a local 1 percent sales tax for school operations. Currently, school systems with voter approval can use a temporary 1 percent sales tax for capital projects only.

“We’re ready to move to the halls of lawmakers,” said school Superintendent Ed Smith.

In Troup County, the proposed sales tax would generate $11.3 million, the equivalent of 5.95 mills, of which at least 4.16 mills or 70 percent would be rolled back from the property tax rate of 18.56 mills. The new rate would be 14.69 mills and the school system would get $3.4 million in new revenue.

The owner of a $100,000 house would save $166.40.

“We believe this is a good beginning to tax reform, a good first step,” said school board Chairman Daves Nichols, noting that property owners have been “crying out” for tax relief.

For the past 20 years, 10 school systems in Georgia have been using a 1 percent sales tax for operations because they imposed the tax before it was banned by the Legislature.

“It’s worked quite well for them,” Nichols said, “and it’s kept property taxes low for 20 years. It’s been good for those systems. Why not all systems?”

Under the proposal, the 20-mill cap on the property tax rate would be lowered by 2.91 mills, or 70 percent of the rollback amount. The new cap would be 17.09 mills.

“The rollback of the cap we feel is what makes it more saleable to legislators,” said chief finance officer Don Miller.

In the previous legislative session, House Speaker Glenn Richardson unsuccessfully proposed a “Great Plan” that would have completely replaced the property tax with a sales tax. But that would be too risky, Smith said, because sales tax revenue is at the mercy of swaying economic conditions.

“Tax reform, yes, the Great Plan, not yet,” he said.

Next year’s school calendar was endorsed by 55 percent of the 671 certified staff members who responded to a survey and considered three options.

The major difference from this year’s calendar is a full week off for Thanksgiving instead of a fall break in October. School will start on Aug. 7 and end May 21. Three early release days, when no classes are held in the afternoon, are included to allow for parent-teacher conferences and other activities. Christmas holidays are Dec. 21 until Jan. 1.

Earlier this year, state school Superintendent Kathy Cox proposed a uniform starting date in late August, but no action has been taken on the proposal.

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poorman
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November 21, 2008
I guess I am confused. If the school system is still going to spend the same amount of money, then whether it is sales tax or property tax, I will still be paying the tax. With Sales tax, the amount collected will vary with the economy, or people's ability to buy goods. With property tax, the amount is decided by a budget and we know pretty much at the start of the fisical year how much will be collected. With Sales tax, there is no way to know ahead how much there will be. If more is collected, more will be spent. If less is collected, people will lose jobs or not enough resources for the students. How will Sales tax be better? PLUS I can claim Property tax on my tax return.
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