Troup County, Georgia Leverages Economic Development Tool

/PRNewswire/ -- Troup County voters along with those in LaGrange, West Point and Hogansville, Georgia approved the use of Redevelopment Powers making the entire county "TAD friendly." TAD's, or Tax Allocation Districts, are a form of tax increment financing in the state of Georgia.

"Today's economy is extremely competitive for developers and businesses. Our region is extremely competitive," says Troup County Commission Chair Richard Wolfe. "This economic development tool gives us the ability to create value in our community and to create jobs for our citizens. It's just one more economic development tool our neighbors don't have right now."

Most residents expressed a special interest in attracting new retail to the growing community. "We have to re-imagine retail development as economic development," Wolfe said. The County plans to capitalize on recent economic development success having added over 5,000 jobs. With Kia Motors and several suppliers ramping up production, this West Georgia community is now poised for a new era of growth.

The community is targeting retail and mixed-use developers to attract quality projects. Scott Turk, Governmental Services Manager noted, "Troup County is at a tipping point in its growth and evolution as a regional community. This tool can make all the difference in tipping it to the side of positive growth." Tax increment financing may be used for office, warehouse/distribution, corporate headquarters, retail/commercial, residential, and mixed-use development projects. Georgia has other tax and financing incentives for employers and especially for relocating corporate headquarters.

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Blue Cross and Blue Shield of Georgia Helps Businesses Navigate Health Care Changes with New Online Tools

/PRNewswire/ -- In an effort to help minimize confusion regarding implementation of health care reform provisions among business owners, Blue Cross and Blue Shield of Georgia (BCBSGa) has created two new tools to help business navigate the changes in health care, a grandfathering tool and a tax calculator tool.

Both tools are available at www.anthem.com/healthcarereform. The small business tax calculator tool and tax content were developed by The Tax Institute at H&R Block and also may be viewed by visiting www.thetaxinstitute.com.

The interactive grandfathering tool is designed to help businesses better understand what grandfathering means, if they qualify for it, and what options are available to them with regard to their health plan. BCBSGa has also joined forces with H&R Block to provide a convenient, comprehensive tool to help small business owners understand the financial impact, as well as the opportunities that accompany the changes in the health care system.

"The grandfathering tool is another part of our commitment to help make health care reform work," said Morgan Kendrick, President, BCBSGa. "This tool will allow business owners to understand what grandfathering means to them, what the qualification parameters are, and if it is potentially in their best interests to grandfather their current health plan. This tool can help businesses quickly and easily determine a course of action based on their current plan in an easy-to-use and easy-to-understand tool."

Kendrick added, "We are also extremely pleased to be partnering with H&R Block to make the small business tax calculator available, which can help small business owners understand the tax credits they are qualified for and allow them to better control and anticipate their health care costs. It's BCBSGa's hope that this resource will enable owners to focus on running a successful business and add some clarity as they navigate the health care system."

The small business tax calculator can help users understand the following reform provisions:

* The small business health care premium credit for qualified employers with 25 or fewer employees and average annual wages under $50,000 (2010)
* Requirements to provide employee coverage for full-time employees who work for businesses with 50 or more employees (2014)
* Employer penalties for not providing coverage when at least one full-time employee is enrolled in a subsidized health care plan (2014)
* The excise tax on high-cost health plans, which applies to plans that cost more than $10,200 for an individual and $27,500 for a family (2018).


"These tools will provide us with an easy way to navigate and communicate the financial impact that health care reform may have on our small business customers," said Jeff Fishback, President and CEO, Purchasing Alliance Solutions. "They will also help us to better communicate about grandfathering and if it might be in their best interest. For example, whether they should take advantage of the available credits and other provisions designed to improve the affordability of health care. I anticipate that interactive tools such as these will help small businesses save time and money. This is just one more example of why BCBSGa is the leader in the industry."

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Passage of Small Business Jobs Act a Huge Win

/PRNewswire/ -- NSBA applauds the House's prompt approval of the Small Business Jobs Act today. Offering various tax incentives, a much-needed small business lending fund and numerous other pro-small-business provisions, the legislation stands to be of great assistance to America's struggling small businesses. Among the various provisions is the incredibly-important but less-talked-about language that will make health insurance more affordable for the nation's self-employed.

"Seemingly absent in discussions over this bill is the fact that it will end a major tax inequity which forces the self-employed to pay an additional 15.3 percent tax on the cost of their health insurance," stated NSBA President and CEO Todd McCracken. "For years, this unfair penalty has been a thorn in the sides of millions of self-employed individuals, and we applaud its inclusion in this bill."

The Small Business Jobs Act will allow self-employed individuals to fully deduct the cost of their health insurance from their self-employment taxes for 2010. Currently, self-employed individuals are prohibited from fully deducting the cost of their health insurance from their self-employment taxes, resulting in an additional tax that no other worker or business owner is forced to pay.

Additionally, the Small Business Jobs Act includes myriad avenues that will benefit small businesses, including: improved access to capital via small- and mid-sized community banks and through the extension of the highly-successful SBA stimulus lending programs; meaningful tax breaks such as an extension of the bonus depreciation and expanded Section 179 expensing; strengthening of the SBA Office of Advocacy - the regulatory watch-dog for small business within the federal government; an improved federal marketplace for small-business contractors; and enhanced exporting opportunities for small businesses.

"This bill offers a broad array of initiatives that will help America's small businesses," stated Larry Nannis, chair of NSBA and shareholder at Levine, Katz, Nannis + Solomon, PC. "And it comes not a moment too soon."

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GSU unveils small business tax credit calculator for health reform

Georgia State University researchers have unveiled a small business tax credit calculator to help employers crunch the numbers to see if they’re eligible for health reform credits under the new law.

The tool, called the 50-State Health Reform Calculator for Small Businesses, will help small employers, including non-profits, determine if they’re eligible for tax subsidies to cover part of the cost of health insurance starting this year. It is the first comprehensive nationwide calculator for all states. It can be accessed at www.gsu.edu/ghpc.

“We’re trying to provide information for employers about the impact and effects of health reform on their business decisions,” said Bill Custer, associate professor and director of the Institute of Health Administration in the J. Mack Robinson College of Business.

Small businesses, or employers with fewer than 25 full time employees making less than $50,000, may be eligible for tax credits to help cover the cost of insurance starting this year.

Incentives are being offered because as premiums have increased, the number of workers with employer-sponsored health coverage has declined.

Custer, with associate professor Patricia Ketsche, also of the Institute of Health Administration, developed the tool in collaboration with the Georgia Health Policy Center in the Andrew Young School of Policy Studies, the Florida Public Health Institute and the Center for Mississippi Health Policy.

The Georgia Health Policy Center has spearheaded a collaborative effort to break down the complexities of the nation’s health reform law through a series of policy briefs. The latest is “Health Reform Implications for Employers,” which was released last week (http://bit.ly/9u3z4q).

Other topics have included state and community implications and the impact to health care providers. Many states have come to the center to request a breakdown of health reform and its impact in their localities.

The calculator is the latest tool being offered in a series intended to help consumers, employers, providers and policy makers understand health reform.

“This has been a great opportunity to not only partner across Georgia State University, but with other states, to bring relevant information about health reform to those who will be impacted by the law,” said Karen Minyard, executive director of the Georgia Health Policy Center. “Our group’s goal from the beginning has been to interpret, share, and apply what is learned to real world situations.”

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Federal Court Bars Georgia Man & Tax Preparation Businesses From Preparing Returns

/PRNewswire/ -- A federal court has permanently barred Wayne Perry, a Macon, Ga., man, and his tax preparation firms, Premier Choice Inc. and Perry Tax Services, from preparing federal tax returns, the Justice Department announced today. Perry agreed to the injunction.

The government's complaint alleged that Perry fraudulently claimed fuel tax credits for customers who were not entitled to them. The fuel tax credit is available only to taxpayers who operate farm equipment or off-highway business vehicles. Perry allegedly claimed absurdly large credits by falsely reporting purchases of huge quantities of gasoline where, in most cases, the cost of the gasoline was greater than the customers' annual income. Perry had prepared over 6,300 federal tax returns since 2004, according to the government.

Fuel credit scams were on last year's IRS list of the Dirty Dozen Tax Scams. In the past few years the Justice Department has obtained injunctions shutting down many tax preparers who claim the phony credits on customers' returns.

Large Employers Strongly Oppose New Taxes On 161 Million American Workers' Health Benefits

/PRNewswire / -- The National Business Group on Health (NBGH) issued the following statement regarding proposals from some policymakers that would increase taxes on American workers' health benefits to finance health reform. NBGH represents 300 large employers - including 60 of the Fortune 100 - providing health benefits to over 55 million Americans:

"With our nation reeling from the worst economy in generations, the idea that now is the time to increase taxes on 161 million American workers' health benefits boggles the mind.

"We have serious concerns that modifying the tax exclusion of health benefits could have the unintended consequence of driving the cost of health benefits higher and potentially force businesses and/or workers to drop private coverage altogether. In particular, modifying the tax exclusion for health benefits could have a disproportionate impact on older workers and Americans residing in states with comparatively low costs of living or more efficient health care systems.

"As a vocal and steadfast advocate of comprehensive national health care reform, NBGH strongly supports bipartisan efforts to expand coverage to all Americans and make the hard choices around delivery system and payment reforms that would eliminate the hundreds of billions of dollars spent annually on care that is wasteful, duplicative, and even harmful."

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United States and Cities Fare Well in a KPMG Report on Business Tax Costs

PRNewswire/ -- San Juan, Puerto Rico, Baltimore and Atlanta have the most favorable tax structures for businesses among U.S. cities/locations with populations exceeding 2 million, according to a study released today by KPMG International (KPMG).

Of the 35 large international cities highlighted in the study, San Juan, Baltimore and Atlanta all rank in the top ten -- first, eighth and ninth, respectively. And among the 10 countries in the study, the U.S. ranked fifth in terms of the favorability of its overall tax structure for business.

KPMG's 2008 Competitive Alternatives: Focus on Tax study is a global comparison of the total tax burden that may be faced by companies in 102 cities throughout 10 countries including corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous local business taxes and statutory labor costs. The study is intended to provide a guide for companies wanting to compare the tax burden they may incur in different cities around the world.

"Cities across the United States recognize that attracting and retaining businesses of all sizes is important for a vibrant local economy," said Hartley Powell, national leader of the Strategic Relocation and Expansion Services practice at KPMG LLP, the U.S. member firm of KPMG International. "As the survey results indicate, certain cities are leaders in developing a tax environment that encourages business development, and tax costs are a key consideration in the site selection process."

According to the study, San Juan had a total tax index of 46.6 representing tax costs 53.4 percent below the U.S. national average of 100.0. San Juan was followed by Baltimore and Atlanta at 92.1 and 95.1, respectively.

Other high-ranking large U.S. cities included Tampa, Fla. (98.1), Detroit (98.6), and Phoenix (98.8).

Industry Classifications

The results of the study also vary depending on the type of business. As a location for R&D operations, the three cities with the most cost-effective tax structure in the large-sized city category were San Juan (61.8), Baltimore (88.4), and Portland, Ore. (88.5).

For manufacturing operations, where property taxes and taxes on equipment and capital are of interest, the three, large-sized U.S. cities with the most cost effective tax structure were San Juan (42.4), Baltimore (91.3), and Atlanta (95.3).

The services industry, on the other hand, tends to be most affected by statutory labor costs. The top three, large-sized U.S. cities with the most favorable tax structure for services included San Juan (65.5), Atlanta (92.7) and Baltimore (94.2).

Mid-sized Cities

In the mid-sized city category (populations between 500,000 and 2 million), the top cities included Omaha, Neb. (94.2), Greenville-Spartanburg, S.C. (95.2), Little Rock, Ark. (95.7), Milwaukee, Wis. (96.0), Youngstown, Ohio (97.1), Raleigh, N.C. (98.1), McAllen, Texas (98.5), Buffalo, N.Y. (98.9), and Salt Lake City, Utah (99.1).

Small-Sized Cities

In the small-sized city category (populations between 100,000 and 500,000), the top cities included Saginaw, Mich. (92.0), Cheyenne, Wyo. (92.1), Cedar Rapids, Iowa (92.1), Sioux Falls, S.D. (92.8), Shreveport, La. (92.9), Lexington, Ky. (93.0), and Montgomery, Ala. (95.2).

The full text of the 2008 study by KPMG International is available online at www.CompetitiveAlternatives.com.

The total tax index is a measure of the total taxes paid by corporations in a particular location and industry, expressed as a percentage of total taxes paid by similar corporations in the United States. Thus the United States has a total tax index of 100.0, which represents the benchmark against which the other countries and cities are scored.

State of Georgia's Revenue Collecctions for May 2008 Cause Concerns

State of Georgia's Revenue Collections for May 2008 Cause Concerns: Governor Should Appoint Commission to Study Revenue Structure

The latest Georgia revenue figures released by the Department of Revenue show that revenues have declined by 0.1 percent through the first 11 months of the fiscal year. The Governor's FY 2008 revenue estimate is based on revenue growth of 2.7 percent. If revenue growth remains flat in June, the FY 2008 Georgia budget will be facing a $500 to $600 million shortfall.

"Because of the Governor's wise fiscal management over the past four years, the state has healthy reserve funds. These reserves put the Governor in a position to manage the economically driven revenue shortfalls without cutting vital government services," said Alan Essig, the executive director of the Georgia Budget and Policy Institute. The Revenue Shortfall Reserve (RSR) contains over $1.5 billion. If revenues remain sluggish throughout FY 2009, it is expected that almost all of the $1.5 billion of reserve funds would be needed to cover budget shortfalls.

"The continued revenue slowdown highlights the fiscal irresponsibility of those legislative leaders who proposed significant tax cuts this past legislative session. Along with this slowdown, there are continued needs, such as trauma care, full education funding, the mental health system, and health insurance for children who are eligible but not enrolled in Medicaid and PeachCare. In light of legislators wasting time with politically motivated tax cut rhetoric, the Governor should take the responsible action of establishing a blue ribbon commission to study the revenue and budget realities of Georgia," Essig concluded.

Governor Signs Bill Capping Taxes on Energy for Manufactures

Today Governor Sonny Perdue signed legislation capping the sales tax on energy used in the manufacturing process. HB 272 provides a cap for certain energy prices over which no additional state sales and use tax will be paid by manufacturers. Commodities subject to this partial exemption include natural gas, No. 2 fuel oil, No. 6 fuel oil, propane, petroleum coke, coal and the fuel cost recovery charge component of retail electricity rates.

“This bill continues to support Georgia industries as they work to compete in an ever-more competitive market,” said Governor Sonny Perdue. “As energy prices continue to rise, we will ensure that our manufacturers can continue to grow their businesses and create more jobs for Georgians.”

Governor Perdue first announced his support for HB 272 at the Georgia Chamber of Commerce’s annual Eggs and Issues Breakfast in January.

“This bill will help protect our manufacturing jobs in this state, and I’m glad to see it come to fruition,” said Rep. Jeff Lewis. “It gives Georgia a competitive advantage in providing Georgians long-term opportunities.”

Governor Perdue also signed HB 237 enacting the "Integrated Plant Theory" and SB 359 recognizing goods and products manufactured in Georgia.

SB 359 requires the Georgia Department of Economic Development to create a “Made in Georgia” label in order to showcase and promote goods and products manufactured in Georgia informing Georgians of the state’s diverse manufacturing sector. The bill also provides educational outreach tools to bring the science of manufacturing in the classroom and emphasize the significant contributions Georgia companies make to the economy and quality of life in Georgia.

HB 237, the “Integrated Plant Theory,” expands the allowable sales and use tax exemption for machinery and equipment used in the manufacturing process. Industries using the following equipment in the manufacturing process are affected by the exemption expansion: material-handling equipment/racking systems used for conveyance and storage of tangible personal property in certain circumstances; aircraft engine remanufacturers; and air or water pollution reduction systems.

“The Georgia Chamber of Commerce would like to extend our great appreciation to Governor Perdue for signing three very important initiatives that will make Georgia an even friendlier environment for manufacturers,” said George Israel, Georgia Chamber of Commerce President & CEO. “As Georgia companies face record-high energy costs and fierce global competition, the Governor has shown he recognizes the pressure businesses are currently facing. By signing this legislation Governor Perdue has showcased the importance of keeping jobs in Georgia and encouraging the retention and growth of companies in this state.”

For more information on this legislation, please visit www.legis.state.ga.us.