AMERICUS — If it gets positive momentum in the political arena, House Resolution (HR) 900 may change the way both private service businesses and public governments do business.

A copy of the summary for HR 900 was obtained from the General Assembly website, www.legis.ga.gov, and according to the summary, the resolution provides for a constitutional amendment to charge taxes on services — such as legal fees, haircuts and doctor bills — and “abolish most state and local taxes” and “provide for a comprehensive flat tax to be known as the fair tax.”

“This was a concept of the Speaker of the House,” said state Sen. George Hooks, D-Americus. The Speaker is Rep. Glenn Richardson, R-Dallas.

The senator said the resolution was an effort to shift $9 billion from sales to services in the budget.

“This is the first time we have ever taxed services,” Hooks said.

In paying the taxes on the service, the state and local taxes — including local property taxes — would be abolished.

Hooks said Richardson was “going around the state, promoting the tax.” He said the basic question is “How do you figure sales tax on the services?”

“Some of the big city newspapers seem dead set against it,” Hooks said.

Americus-Sumter Chamber of Commerce President Brad Lafevers said his main concern with the resolution is the “loss of control of local funds. They will be collected by the state and redistributed.”

He said the Heart of Georgia Railroad, of which he is president and CEO, would apply sales tax to freight service provided.

“It will certainly change the scope of the way we do things in the service industry,” he said.

“I hope there would be a clear understanding of how entities would get funding,” Lafevers said.

“The problem is that the resolution would do away with ad valorem taxes,” said Americus CAO Charlotte Cotton. She added the plan was not final, but the proposal is now a 4 percent tax.

She explained that if the resolution passed and if the City needed a new fire truck, the City would not have a property tax to raise to pay for the new fire truck. “We’d have to go to the state,” she said.

“All governments would have to come before some committee in Atlanta, and the committee would decide what’s best for our community,” she said. Cotton added she has a problem with that.

“The local citizens would lose all control, and they would be governed by someone in Atlanta,” she said.

Cotton said the fact that so many unknowns still surround the resolution is “scary.”

“If approved, in my opinion, this resolution will have insignificant or very little negative effect on the demand for services,” said John Kooti, Ph.D., dean of the School of Business at Georgia Southwestern State University (GSW).

He noted that tourism is the second largest industry in Georgia, and that taxes on services “will generate significant revenue for the state of Georgia.”

Kooti, said, “On the other hand, eliminating property taxes will increase demand for property and property ownership and will enhance property development. Elimination of property taxes will help reduce the cost to businesses, especially farmers.

“Therefore, in my opinion, the proposed resolution will have a positive net gain for Georgia.”

“I do have concerns primarily about the flow of cash back into the counties,” said Sumter County CAO Lynn Taylor. “There are too many questions unanswered.”

Taylor added that she hoped some of the concerns of the cities and the counties will be addressed in a timely manner before a vote is taken.

Merry Brantley with the Senate Press Office said the resolution entails a constitutional amendment, which will not require the signature of the Governor. However, the resolution must pass two-thirds of both the House and the Senate and then go before the voters for approval. So, the actual action on the resolution would probably not occur until 2010, Brantley said.