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Tourism bills signed
One veto
This afternoon, the following tourism bills were signed into
law by Governor Sonny Perdue:
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HB 1168 :: sponsored by Rep. Larry O'Neal,
this is our hotel tax reform bill;
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HB 393 and
HB 1061 ::
HB 393, sponsored by Chairman Ron Stephens,
brings Georgia into compliance with the US Supreme Court
Decision regarding equitable treatment for in-state and
out-of-state wineries.
HB 1061, sponsored by Chairman Ron Stephens
and Representatives Earl Ehrhart, Amos Amerson,
Roger Williams, Steve Tumlin and Mark
Burkhalter, gives our Georgia Farm Wineries the
ability to ship direct 12 cases per customer per year.
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HB 1088 ::sponsored by Chairman Butch Parrish
and Representatives Ron Stephens,
Roger Williams, Vance Smith,
Mickey Channell and Earl Ehrhart,
will provide DOT and GDEcD the ability to develop signage
for agricultural tourism attractions. This is in response to
your request over the last few years, so please thank our
friends for their efforts to address the need for improved
signage for our tourists.
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HB 1100 :: sponsored by Chairman Ron Stephens,
simplifies statutory incentives for the film, music and
video industry. Many thanks to our Tourism Committee
Chairman Butch Parrish for his hard work on this
legislation.
From
TDAG
on
HB 1168
There are so many to thank regarding
HB 1168, landmark legislation for tourism marketing at
the local level. Thanks to our sponsors in the House
Larry O'Neal, James Mills, Ron Stephens,
Butch Parrish, Mickey Channell, Richard
Royal and Jay Shaw. In the Senate, many thanks to
Chip Rogers, Chip Pearson and Ross Tolleson.
We would also like to thank Georgia Municipal Association,
Association County Commissioners of Georgia and Department
of Community Affairs for their work with the Lodging Tax
Task Force on this bill.
And finally, thanks to the Governor's office
for working with us to truly understand this bill and
ultimately for his support of this important legislation.
Line-Item Vetoes
Governor Perdue signed off on the $21.1
Billion Fiscal Year 2009 Budget and issued line-item vetoes,
including the following that affect tourism in Georgia:
Section 21, pertaining to the Department of
Economic Development, page 73, line 2499:
The General Assembly appropriated $125,000
in state general funds to the Tourism program for the
development of a five year business plan for the Georgia
Tourism Foundation. The initial state investment of $1.2
million in the Foundation was intended to generate
significant private investment in tourism development. The
sustainability of the foundation is dependent on the success
of this public-private partnership. The Tourism Foundation
has been charged to raise funds from outside sources for
their five year business plan. Therefore, I veto the
appropriation of $125,000 contained in this proviso.
Section 21, pertaining to the Department of
Economic Development, page 73, line 2500:
The General Assembly earmarked $150,000 in
state general funds to the Tourism program for the
restoration of Augusta's historic Powder Works chimney.
State support for this project is not justified. Therefore,
I veto the appropriation of $150,000 contained in this
proviso.
Section 21, pertaining to the Department of
Economic Development, page 73, line 2502:
The General Assembly appropriated $3,000,000
in state general funds to the Tourism program for the
National Infantry Museum. The state has fulfilled its
commitment to the National Infantry Museum with the
$5,000,000 appropriation in the fiscal year 2008 budget.
Therefore, I veto the appropriation of $3,000,000 contained
in this proviso.
Section 21, pertaining to the Department of
Economic Development, page 73, line 2503:
The General Assembly appropriated $250,000
in state general funds to the Tourism program for the
Georgia International and Maritime Trade Center Authority to
perform an economic impact and environmental improvement
study. The State of Georgia issued a total of $17.7 million
in bonds for the Trade Center in 1994 and 1995 and still has
outstanding debt service of nearly $6 million. The local
community has reaped significant economic benefit from the
state's investment and should shoulder the financial
investment involved in the feasibility study. Therefore, I
veto the appropriation of $250,000 contained in this
proviso.
House Bill 1129
Governor Perdue released a statement regarding the veto of
certain bills, including tourism legislation,
HB 1129, which would have provided tax refunds for
expanding tourism attractions. Regarding
HB 1129, he stated:
House Bill 1129 provides sales tax refunds for certain
tourism related projects. Anytime the State uses public
funds to subsidize companies locating or expanding in
Georgia, we have an obligation to insure that the economic
development returns exceed the investment. To these ends, I
have charged the Department of Economic Development to use
prudently the incentives available under existing law to
attract tourism companies to locate in Georgia. Given these
principles, I am not persuaded that the fiscal costs of this
legislation outweigh the potential benefits. First, the case
has not been made that companies' decisions to locate
tourism attractions are based on tax incentives rather than
traffic, demographics and other objective factors. Georgia
will, therefore, likely not achieve the full benefit of net
new jobs that are expected from this legislation. Second,
imposing an incentive structure like the one in
House Bill 1129 could result in excessive application,
and it could create a perceived entitlement for new and
existing Georgia companies. Put differently, codifying
potential tourism incentives sets a floor in negotiations,
and I believe it raises the expectation for additional
incentives. It is preferable to handle each project on a
case-by-case basis, which may include - with the approval of
the General Assembly - some of the types of incentives
provided in House Bill 1129. Given these concerns, I cannot
support and therefore VETO
House Bill 1129.
From
TDAG
on
HB 1129
Many thanks to Reps. Jeff Lewis, Larry O'Neal
and Ron Stephens, as well as Senators Chip Pearson
and Chip Rogers and Lieutenant Governor Casey
Cagle for their efforts on tourism development. We are
all committed to continuing to work with the governor to
address his concerns and find solutions that will grow
Georgia Tourism.
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