A committee of lawmakers from the Georgia House of Representatives is holding hearings around the state on a proposal to eliminate the education portion of the annual ad valorem (property) tax bill and replace it with a 3% sales tax. The proposal is sponsored by House Majority Leader Jerry Keen (R-St. Simons Island) and being promoted by a number of tax relief organizations including the Georgia Association for Property Tax Relief headed by Atlanta attorney Glenn Delk.

Because the measure would amend the state constitution, a statewide referendum would be required; a vote could occur as early as November 2006. The referendum should be popular in Gwinnett where the school’s tax bite is approximately 63% of the total bill.

The opponents of the proposal, mainly teachers’ unions, the state school superintendents’ association and the School Boards Association, argue that a sales tax would not be a “stable” revenue source. To the contrary, a June 2005 study by John Matthews, a professor at Georgia State University, revealed that sales tax revenue in Georgia grew between 1969 and 2002 at an average annual rate of 9 percent. The constitutional amendment would also require the state to maintain a reserve fund in case of an economic downturn.

The school bureaucrats are actually afraid of losing control. Currently, a School Board in need of more cash can raise its property tax millage rate or bank on rising property values to generate more revenue. Under the new funding plan, the sales tax would first go to the state to then be distributed evenly among Georgia’s school systems.

The closest of the legislative committee hearings to Gwinnett is on September 28, 7 pm at the Dorothy Benson Senior Center, 6500 Vernon Woods Drive in Sandy Springs.

The discussion of this issue has begun locally. Click “Comments” below to add your thoughts or check out the TalkGwinnett “Schools and Education” forum for this topic.