Bill Text: GA HB117 | 2011-2012 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Withholding tax; person listed on closing statement subject to requirements; provide

Spectrum: Bipartisan Bill

Status: (Passed) 2011-05-13 - Effective Date [HB117 Detail]

Download: Georgia-2011-HB117-Comm_Sub.html

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11 HB117/SCSFA/1

SENATE SUBSTITUTE TO HB 117

AS PASSED SENATE

A BILL TO BE ENTITLED
AN ACT

To amend Article 6 of Chapter 8 of Title 31 of the Official Code of Georgia Annotated, relating to the Indigent Care Trust Fund, so as to establish a segregated account within the Indigent Care Trust Fund; to amend Title 48 of the Official Code of Georgia Annotated, relating to tax revenue and taxation, so as to provide that the person listed on the closing statement as the seller shall be treated as the seller and shall be subject to the withholding and documentation requirements; to change and provide definitions and to thereby provide for sales tax upon certain health care services; to provide for automatic repeal; to exempt certain health care services from joint sales and use tax; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 6 of Chapter 8 of Title 31, relating to the Indigent Care Trust Fund, is amended by adding a new Code section to read as follows:

"31-8-152.1.

(a) There is established within the trust fund a segregated account for revenues raised through the sales tax on charges defined in subparagraph (H) of paragraph (31) of Code Section 48-8-2. All such revenues shall be credited to the segregated account within the trust fund and shall be invested in the same manner as authorized for investing other moneys in the state treasury.

(b) Notwithstanding any other provision of this chapter, the General Assembly is authorized to appropriate as state funds to the department for use in any fiscal year all revenues dedicated and deposited into the segregated account. Such appropriations shall be authorized to be made for the sole purpose of obtaining federal financial participation for medical assistance payments. Any appropriation from the segregated account for any purpose other than such medical assistance payments shall be void.

(c) Revenues appropriated to the department pursuant to this Code section shall be used to match federal funds that are available for the purpose for which such trust funds have been appropriated.

(d) Appropriations from the segregated account to the department shall not lapse to the general fund at the end of the fiscal year.

(e) If the centers for medicare and medicaid services of the United States Department of Health and Human Services determines that the taxation of charges described in subparagraph (H) of paragraph (31) of Code Section 48-8-2 constitutes an impermissible health care-related tax under section 1903(w) of the 'Social Security Act,' 49 Stat. 620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations adopted thereunder, the Commissioner of the Department of Community Health shall notify the tax commissioner of that determination and the charges described in subparagraph (H) of paragraph (31) of Code Section 48-8-2 shall not constitute sales for purposes of Article 1 of Chapter 8 of Title 48.

(f) This Code section shall stand automatically repealed on the date federal matching funds are no longer available or on June 30, 2014, whichever date is earlier."

SECTION 2.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended in subsection (b) of Code Section 48-7-128, relating to withholding tax on sale or transfer of real property and associated tangible personal property by nonresidents, by adding a new paragraph to read as follows:

"(3) The person or entity identified as the seller on the settlement statement shall be considered the seller for all purposes regarding this Code section, including, but not limited to, executing and delivering to the buyer or transferee all forms or other documents incident to determining the appropriate amount of tax to be withheld or the appropriate amount exempt from withholding requirements."

SECTION 3.

Said title is further amended in paragraph (31) of Code Section 48-8-2, relating to definitions applicable to sales and use tax, by deleting "or" at the end of subparagraph (F), by replacing the period with "; or" at the end of subparagraph (G), and by adding a new subparagraph to read as follows:

"(H) Charges made for services by a person which are the subject of a referral from a SOURCE Case Management Provider. This Code section shall stand automatically repealed on the date federal matching funds are no longer available or on June 30, 2014, whichever date is earlier."

SECTION 4.

Said title is further amended in said Code section by adding two new paragraphs to read as follows:

"(30.1) 'Referral from a SOURCE Case Management Provider' means the authorization of, arrangement for, or coordination of long-term care services, including nursing home services by a SOURCE Case Management Provider."

"(34.1) 'SOURCE Case Management Provider' means an entity that has successfully completed the Georgia Medicaid Enhanced Case Management Application and enrollment process, including any related required training, and has entered into a contract with the Department of Community Health, Division of Medical Assistance to provide enhanced case management services."

SECTION 5.
Said title is further amended by revising Code Section 48-8-82, relating to authorization of counties and municipalities to impose joint sales and use tax, rate, and applicability to sales of motor fuels and food and beverages, as follows:

"48-8-82.

When the imposition of a joint county and municipal sales and use tax is authorized according to the procedures provided in this article within a special district, the county whose geographical boundary is conterminous with that of the special district and each qualified municipality located wholly or partially within the special district shall levy a joint sales and use tax at the rate of 1 percent. Except as to rate, the joint tax shall correspond to the tax imposed and administered by Article 1 of this chapter. No item or transaction which is not subject to taxation by Article 1 of this chapter shall be subject to the tax levied pursuant to this article, except that the joint tax provided in this article shall be applicable to sales of motor fuels as prepaid local tax as that term is defined in Code Section 48-8-2 and shall be applicable to the sale of food and food ingredients and alcoholic beverages only to the extent provided for in paragraph (57) of Code Section 48-8-3; provided, however, that the joint sales and use tax authorized by this article shall not be applicable to retail sales within the meaning of subparagraph (H) of paragraph (31) of Code Section 48-8-2."

SECTION 6.

Said title is further amended in Code Section 48-8-110.1, relating to authorization for county special purpose local option sales tax, subjects of taxation, and applicability to sales of motor fuels and food and beverages, by adding a new subsection to read as follows:

"(d) The joint sales and use tax authorized by this article shall not be applicable to retail sales within the meaning of subparagraph (H) of paragraph (31) of Code Section 48-8-2."

SECTION 7.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 8.

All laws and parts of laws in conflict with this Act are repealed.