ATLANTA – A proposal to sweeten a tax credit for donors who give to the state’s fragile rural hospitals has stalled. 

The measure, which sought to spur more donations, was teed up for a vote on Friday, which was the last day for a bill to be approved in one chamber to have a clear path to become law. 

But when the night ended, the bill was one of a handful that languished in the House of Representatives. 

“I’m extremely disappointed, but I’m not going to give up the fight,” said Rep. Geoff Duncan, R-Cumming, who sponsored the bill. 

 He said he plans to continue to push for the measure, even though its prospects are now grim for this year. 

“I’m not going to give up on this bill for the millions of people in rural Georgia who are expecting us to do something,” he added. 

Under the bill, 90 percent of eligible donations would qualify for a tax break. That would essentially make it a dollar-for-dollar deal for donors, Duncan has said. 

That benefit is currently set at 70 percent. 

As is, the program, which lawmakers created last year, hasn’t generated the meaningful donations that were envisioned for the hospitals. 

Only about $1 million qualified for the perk in the first month. The credits are capped at $50 million this year. 

A hospital can raise up to $4 million annually through the program. 

Under Duncan’s proposal, hospitals would also have to report any payments made to third-party consultants. 

Most of the 49 rural hospitals participating in the program are paying an Atlanta-based company to manage the program, which drew criticism from lawmakers who questioned the need for the facilities to outsource that work. 

Georgia HEART, for Helping Ensure Access to Rural Treatment, offered by Atlanta-based Portage Charity Advisors, announced Thursday it would lower its rates. 

Instead of charging a 6 percent fee on all the money raised, the company will charge that rate on the first $1 million. There will then be a 1 percent fee on the money up to $3 million and a 0.5 percent fee on anything more than $3 million. 

Music tax credit bill passes 

A plan that seeks to grow the music industry in Georgia easily passed out of the House, even as another bill with a similar aim struggled to gain approval.  

A measure that offers a 15 percent tax credit to eligible production companies that come to the state was approved with a 157-to-11 vote Friday, which was the last day for a bill to be approved in one chamber and sent to the other. 

Another 10 percent tax credit would be offered to those that target the state’s poorest 100 counties. 

The credits would be capped, limiting the benefit to $5 million in the first year. That would increase to $10 million in the second year and then to $15 million for the next three years. 

The program would automatically end after five years, unless lawmakers reauthorize it. 

“Music made by Georgians, whether it’s the names you know or one of the thousands of unknown creatives behind the scenes, is one of Georgia’s biggest international exports,” said Rep. Amy Carter, R-Valdosta, who sponsored the bill. 

The bill, she said, “allows us to import the investment dollars and keep it strong here in the future.” 

It now goes to the Senate, where Sen. Jeff Mullis, R-Chickamauga, will carry it. 

But many legislators couldn’t get on board with another bill that seeks to boost the music industry.  

That bill, sponsored by Rep. Matt Dollar, R-Marietta, would exempt royalties paid to musicians from the state income tax. 

“I cannot abide the idea of offering income tax exemptions for some of the most successful people in this state – people who are getting along just fine,” said Rep. Sam Teasley, R-Marietta.  

“Is this truly the policy statement that we want to make? Is this the preferential treatment that we want to provide,” Teasley asked. 

The bill failed with a 56-to-105 vote on first consideration. Using a procedural maneuver, Dollar tweaked the measure to clarify that an heir cannot benefit from the exemption. The bill passed on a second attempt with a 97-to-65 vote.

Dollar said the proposal is meant to help Georgia compete with Nashville. Tennessee does not have an income tax. The bill would sunset in five years. 

Rep. Jason Ridley, R-Chatsworth, was among those who remained unconvinced. 

“Music artists are made famous and wealthy by the hard-working people of Georgia who purchase their music, concert tickets, etc.,” he said, adding that those same Georgians have to pay taxes on their income. 

Casino bill provides Crossover Day drama

A beleaguered proposal to legalize casino gaming in Georgia briefly showed signs of life Friday. 

A last-minute meeting was called to discuss the measure Friday, which was the deadline for a bill to pass one chamber.

But that meeting never happened. Rep. Howard Maxwell, R-Dallas, who heads the House Regulated Industries Committee, said it was postponed so legislators could “perfect the bill.” 

House Speaker David Ralston, R-Blue Ridge, told reporters later that he does not expect the issue to reemerge this year.  

Ralston said there appeared to be consensus on the issue, but that turned out to not be the case. Some details, he said, still need to be hashed out. 

“We want to keep the discussion going, but we thought today was probably not the most appropriate time to do that,” he said.  

The bill would allow for two “destination resorts” limited to a county with more than 900,000 people and the other in a county with more than 250,000. 

The gaming proceeds would go to the HOPE Scholarship, needs-based scholarships and rural healthcare. Rep. Ron Stephens, R-Savannah, is the bill’s sponsor. 

Jill Nolin covers the Georgia Statehouse for CNHI’s newspapers and websites. Reach her at jnolin@cnhi.com.

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Jill Nolin 

State Government Reporter

CNHI

(762) 231-9518

@jillnolin 

CNHI operates 68 daily newspapers with a combined circulation of about 550,000. For a list of our publications: http://www.cnhi.com/locations/