Proposed Sales Tax on Legal Services

One of the issues of major importance to Georgia lawyers as well as all citizens is House Resolution 900, which proposes a comprehensive revision to Georgia's tax code. Property tax is eliminated. A 4% sales tax on all services including legal services is added. Income tax adjustments and other changes are also included.

The State Bar has no current position on HR 900. That may well change since the public's access to justice may be impacted by the sales tax portion of this proposed tax change. Under the procedure described in Standing Board Policy 100, the Executive Committee, the Advisory Committee on Legislation and the Board of Governors will decide the State Bar's legislative position, if any, on HR 900.

The Board will possibly vote on this issue Saturday, Jan. 12, during the Midyear Meeting at the Bar Center in Atlanta, Ga. The Executive Committee encourages all members to study HR 900 and give their advice to their Board representatives before that date. (For a list of Board members by circuit, please visit www.gabar.org/directories/board_of_governors/.) For your convenience, links to HR 900, House Speaker Glenn Richardson's explanatory PowerPoint, and research from Georgia State University are listed below. We will try to keep you updated as key elements of HR 900 regarding taxes on legal services are considered and as more information becomes available.

HR 900 (Georgia General Assembly):
http://www.legis.state.ga.us/legis/2007_08/sum/hr900.htm

House Speaker Glenn Richardson's PowerPoint:
http://www.thegreatplanforgeorgia.com/

Georgia State Research:
http://aysps.gsu.edu/frc/files/brief151.pdf
http://aysps.gsu.edu/frc/files/brief156.pdf
http://aysps.gsu.edu/frc/files/brief157.pdf
http://aysps.gsu.edu/frc/files/brief158.pdf