City Mills Hotel in Columbus is a rehabbed 19th century grist mill built with the help of a state tax credit.
ATLANTA – Georgia low-income housing and historic rehabilitation tax credits are critical for the financial and social wellbeing of residents across the state, a series of witnesses testified at a legislative hearing Wednesday in Columbus.
Builders, financial experts, and nonprofit executives defended the two types of tax credits before the Joint Tax Credit Review Panel, a committee of state representatives and senators formed this year to examine the various tax incentives Georgia offers and determine whether the state is getting a healthy return on the lost revenue.
Since its first meeting in June, the panel has heard representatives of Georgia manufacturers and the film industry advocate on behalf of their respective tax credits as well as officials from public policy organizations discuss the pros and cons of the tax incentives the state uses to attract certain types of businesses that might not otherwise set up shop in Georgia.
The Georgia Department of Community Affairs used the state’s low-income housing tax credit to help finance 32,000 affordable housing units between 2019 and 2022, Philip Gilman, the agency’s deputy commissioner for housing and development, told the committee Wednesday.
While the federal government funds one-third of the cost of those units and banks provide another one-third, the state’s one-third match is vital, said Chris Hite, a board member of the Georgia Affordable Housing Coalition and president of Sugar Creek Capital.
“You take away our money and none of these deals work,” Hite said. “But for the state credit, nothing gets built.”
Cathy Williams, president and CEO of the nonprofit NeighborWorks Columbus, said the benefits of helping low-income Georgians obtain affordable housing go beyond bricks and mortar.
“When you’re housing-vulnerable, it creates toxic stress,” she said. “It leads to crime. It leads to truancy. It is in our social interest to make sure our people are cared for.”
Historic preservation advocates said offering tax credits to help finance the rehabilitation of historic properties also provides broader benefits to communities across Georgia.
The state offers two types of historic rehabilitation tax credits: a credit of up to $5 million for individual income-producing commercial projects and a smaller credit capped at $100,000 for each residential project.
Ben Sutton, director of preservation for the Georgia Trust for Historic Preservation, said something as seemingly modest as restoring one historic home in a blighted area can increase property values throughout an entire neighborhood.
“The catalytic effect of these projects cannot be understated,” he said.
Sutton said income-producing commercial projects financed with the help of the historic rehabilitation tax credit have sparked downtown revitalization in cities and towns across the state, including Bainbridge, Brunswick, Columbus, Macon, and Savannah.
“It is the driver for letting these secondary and tertiary towns in Georgia – which is anything other than Atlanta – develop themselves,” said Pace Halter, president and chief operating officer of W.C. Bradley Real Estate in downtown Columbus.
State Sen. Chuck Hufstetler, R-Rome, said the cost of the state’s low-income housing tax credit is running well above the rate of inflation.
“It seems like a pretty generous program,” he said. “Is it not overly generous?”
Gilman said it’s more expensive to build affordable houses with the housing tax credit than through the market because the program requires that the houses be kept in good condition for 15 to 30 years.
“There’s a larger investment upfront so we don’t have an eyesore 15 to 30 years later,” he said.
The review panel is due to recommend any potential changes to the state’s tax incentives in time for the 2024 General Assembly session starting in January.
ATLANTA – U.S. Rep. Rich McCormick has closed his district office in Cumming after receiving what he characterized as serious threats of violence to his staff.
“I take the safety of my team seriously,” McCormick, R-Suwanee, wrote in a statement posted to the former Twitter website now known as X. “These threats have been reported to Capitol Police and will be investigated fully.”
McCormick said his staff will continue working remotely to handle calls from constituents for service or to answer questions.
The House passed a resolution late Tuesday sponsored by McCormick to formally reprimand Rep. Rashida Tlaib, D-Mich., over her outspoken criticism of Israel, with some Democrats joining all Republicans to support the censure, Politico reported.
McCormick had moved to censure Tlaib for what he called “promoting false narratives” about the Palestinian militant group Hamas’ attack on Israel and for “calling for the destruction of the state of Israel.”
Tlaib, the only Palestinian American member of Congress, survived a censure attempt by Rep. Marjorie Taylor-Greene, R-Rome, last week for criticizing Israel. McCormick was among 23 Republicans who voted against Greene’s resolution. Greene has crafted a second censure resolution for a vote this week.
There was no indication Wednesday whether the resolutions censuring Tlaib are connected with the threats to McCormick’s district staff.
ATLANTA – Gov. Brian Kemp extended the temporary suspension of the state sales tax on gasoline and other motor fuels Wednesday, citing ongoing high prices and uncertain economic conditions.
Kemp signed an executive order extending the suspension through Nov. 29, which he said will help Georgians cope with high food and travel costs during the Thanksgiving holiday.
The state can easily afford going without the tax revenue the sales tax would have brought after ending the last fiscal year in June with $5 billion in “rainy-day” reserves and $11 billion in undesignated surplus funds, according to a report released last week by the Georgia Budget and Policy Institute.
“Thanks to our responsible approach in budgeting, we’re able to deliver relief to families fighting through the disastrous effects of Bidenomics,” Kemp said Wednesday, criticizing what he called “failed” economic policies coming out of the Biden administration.
“I’m proud this action has helped keep millions of dollars in hardworking Georgians’ pockets and look forward to continuing to see that impact with the Thanksgiving holiday approaching.”
Kemp suspended the gas tax for a second time in September. He suspended the tax for the first time in March of last year and lifted the suspension last January.
The governor is calling on the General Assembly to ratify the suspension when lawmakers gather under the Gold Dome late this month for a special session aimed primarily at redrawing Georgia’s legislative and congressional district lines following a federal court ruling that boundaries the legislature approved two years ago violated the Voting Rights Act.
ATLANTA – Georgia tax collections fell an adjusted 5.7% last month compared to October of last year, the state Department of Revenue reported Tuesday.
That decline does not take into account the revenues from Georgia’s sales tax on gasoline and other motor fuels the state collected last month. If that $70.5 million is included, the decreased tax revenue for October is lessened to a 3.1% drop compared October 2022.
The tax revenue outlook for the state is complicated by Gov. Brian Kemp having temporarily suspended the gas tax twice, making month-to-month comparisons difficult. Each time, the governor cited the impact of inflation on prices at the pump.
Kemp first suspended the tax in March of last year and continued it into last January. He then resumed the suspension two months ago.
Individual income tax and net sales tax collections last month reflect the red ink. Individual income taxes in October declined 11.8% compared to the same month last year, driven by a 30.2% increase in tax refunds the revenue department issued and a 32.6% decline in tax return payments.
Net sales tax receipts fell by a less precipitous 1.6%.
Corporate income tax revenues actually rose by 24.3% last month, with payments up by 18.7% compared to October 2022.
Gasoline prices in Georgia have dropped this week to a statewide average of $2.89 per gallon of regular, significantly above the national average, according to AAA. However, with the state sitting on a huge budget surplus, Kemp has the leeway to continue the suspension of the gas tax beyond the current Nov. 11 expiration date if he so chooses.
ATLANTA – Four Northwest Georgia counties have been declared natural disaster areas due to weeks of severe drought conditions.
The declaration will allow farmers in Catoosa, Chattooga, Dade, and Walker counties to receive emergency credit from the U.S. Department of Agriculture’s Farm Service Agency (FSA).
“As a seventh generation farmer, I know firsthand the impact drought conditions can have on our agriculture industry, especially those with dryland operations,” Georgia Commissioner of Agriculture Tyler Harper said.
“The lack of moisture in the soil impacts every aspect of an agricultural operation, from delaying winter grains to forcing farmers to purchase hay to feed their cattle. We’re grateful to (U.S. Agriculture) Secretary (Tom) Vilsack for recognizing the importance of providing essential assistance to our Northwest Georgia farmers.”
FSA loans can be used to meet various drought recovery requirements, including replacing such essential items as farm equipment or livestock, reorganizing a farming operation, or refinancing loans. The federal agency reviews all loans based on the extent of losses, available security, and repayment ability.
Georgia farmers and producers in the four disaster counties as well as the contiguous counties of Floyd, Gordon, and Whitfield may apply for assistance.
