Bill Text: GA HB470 | 2009-2010 | Regular Session | Introduced
Bill Title: Municipal Option Sales Tax for Transportation; enact
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-02-19 - House Second Readers [HB470 Detail]
Download: Georgia-2009-HB470-Introduced.html
09 LC 18
8117
House
Bill 470
By:
Representative Martin of the
47th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating
to sales and use taxes, so as to provide for funding of transportation projects
and services through the levy and collection of a municipal option sales and use
tax; to provide for a short title; to provide for definitions; to provide for
the rate and manner of imposition of such tax; to provide for applicability to
certain sales; to provide for powers, duties, and authority of municipal
governing authorities with respect to such tax; to provide for powers, duties,
and authorities of the state revenue commissioner with respect to such tax; to
provide for collection and administration of such tax; to provide for returns;
to provide for distribution and expenditure of proceeds; to provide for a method
for discontinuation of such tax; to change certain provisions regarding
limitations on imposition of certain local taxes; to provide for other matters
relative to the foregoing; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and
use taxes, is amended by adding a new article read as follows:
"ARTICLE
5
48-8-230.
This
article shall be known and may be cited as the 'Municipal Option Sales Tax for
Transportation.'
48-8-231.
As
used in this article, the term:
(1)
'Building and construction materials' means all building and construction
materials, supplies, fixtures, or equipment, any combination of such items, and
any other leased or purchased articles when the materials, supplies, fixtures,
equipment, or articles are to be utilized or consumed during construction or are
to be incorporated into construction work pursuant to a bona fide written
construction contract.
(2)
'Municipality' means any municipality in this state.
(3)
'Transportation project' means:
(A)
A capital outlay project for the acquisition, construction, installation,
replacement, maintenance, or repair of transportation facilities or maintenance
and operation expenses in connection therewith; and
(B)
Acquisition, construction, installation, replacement, maintenance, or repair of
roads, streets, and bridges.
48-8-232.
The
governing authority of any municipality in this state may, subject to the
requirement of referendum approval and other requirements of this article,
impose within the municipality a sales and use tax for a limited period of time.
Such tax shall only be imposed for all of the purposes specified in paragraph
(3) of Code Section 48-8-231. Any tax imposed under this article shall be at
the rate of 1 percent. Except as to rate, a tax imposed under this article
shall correspond to the tax imposed by Article 1 of this chapter. No item or
transaction which is not subject to taxation under Article 1 of this chapter
shall be subject to a tax imposed under this article, except that a tax imposed
under this article shall apply to sales of motor fuels as that term is defined
by Code Section 48-9-2 and shall be applicable to the sale of food and beverages
as provided for in division (57)(D)(i) of Code Section 48-8-3.
48-8-233.
(a)
A municipal governing authority voting to impose the tax authorized by this
article shall notify the municipal election superintendent by forwarding to the
superintendent a copy of the resolution or ordinance of the municipal governing
authority calling for the imposition of the tax. Such ordinance or resolution
shall specify the following:
(1)
The transportation projects for which the proceeds of the tax are to be
used;
(2)
The maximum period of time of the tax, to be stated in calendar years or
calendar quarters and not to exceed five years;
(3)
The maximum cost of the project or projects which will be funded from the
proceeds of the tax, which maximum cost shall also be the maximum amount of net
proceeds to be raised by the tax; and
(4)
If general obligation debt is to be issued in conjunction with the imposition of
the tax as authorized by this article, the principal amount of the debt to be
issued, the purpose for which the debt is to be issued, the interest rate or
rates or the maximum interest rate or rates which such debt is to bear, and the
amount of principal to be paid in each year during the life of the
debt.
(b)
Upon receipt of the resolution or ordinance, the municipal election
superintendent shall issue the call for an election for the purpose of
submitting the question of the imposition of the tax to the voters of the
municipality. The election superintendent shall issue the call and shall
conduct the election on a date and in the manner authorized under Code Section
21-2-540. The election superintendent shall cause the date and purpose of the
election to be published once a week for four weeks immediately preceding the
date of the election in the legal organ of the county in which the majority of
the municipal population resides or in a newspaper having general circulation in
the municipality at least equal to that of the legal organ. If general
obligation debt is to be issued in conjunction with the imposition of the tax,
the notice published by the election superintendent shall also include, in such
form as may be specified by the municipal governing authority, the principal
amount of the debt, the purpose or purposes for which the debt is to be issued,
the rate or rates of interest or the maximum rate or rates of interest the debt
will bear, and the amount of principal to be paid in each year during the life
of the debt; and such publication of notice by the election superintendent shall
take the place of the notice otherwise required by Code Section 36-80-11 or by
subsection (b) of Code Section 36-82-1, which notice shall not be
required.
(c)(1)
If the tax is to be imposed solely for transportation and maintenance and
operations purposes and if no debt is to be issued, the ballot shall have
written or printed thereon the following:
'( ) YES
( ) NO
|
Shall
a 1 percent sales and use tax be imposed in the municipality of _________ for a
period of time not to exceed _____________ and for the raising of not more than
$_____ for the purpose of funding _______________?'
|
(2)
If debt is to be issued, the ballot shall also have written or printed thereon,
following the language specified by paragraph (1) of this subsection, the
following:
'If
imposition of the tax is approved by the voters, such vote shall also constitute
approval of the issuance of general obligation debt of the municipality of
___________ in the principal amount of $___________ for the above
purpose.'
(d)
All persons desiring to vote in favor of imposing the tax shall vote 'Yes' and
all persons opposed to levying the tax shall vote 'No.' If more than one-half
of the votes cast are in favor of imposing the tax then the tax shall be imposed
as provided in this article; otherwise the tax shall not be imposed and the
question of imposing the tax shall not again be submitted to the voters of the
county until after 12 months immediately following the month in which the
election was held; provided, however, that if an election date authorized under
Code Section 21-2-540 occurs during the twelfth month immediately following the
month in which such election was held, the question of imposing the tax may be
submitted to the voters of the county on such date. The election superintendent
shall hold and conduct the election under the same rules and regulations as
govern special elections. The superintendent shall canvass the returns, declare
the result of the election, and certify the result to the Secretary of State and
to the commissioner. The expense of the election shall be paid from municipal
funds.
(e)(1)
If the proposal includes the authority to issue general obligation debt and if
more than one-half of the votes cast are in favor of the proposal, then the
authority to issue such debt in accordance with Article IX, Section V, Paragraph
I of the Constitution is given to the proper officers of the municipality;
otherwise such debt shall not be issued. If the authority to issue such debt is
so approved by the voters, then such debt may be issued without further approval
by the voters.
(2)
If the issuance of general obligation debt is included and approved as provided
in this Code section, then the governing authority of the municipality may incur
such debt either through the issuance and validation of general obligation bonds
or through the execution of a promissory note or notes or other instrument or
instruments. If such debt is incurred through the issuance of general
obligation bonds, such bonds and their issuance and validation shall be subject
to Articles 1 and 2 of Chapter 82 of Title 36 except as specifically provided
otherwise in this article. If such debt is incurred through the execution of a
promissory note or notes or other instrument or instruments, no validation
proceedings shall be necessary and such debt shall be subject to Code Sections
36-80-10 through 36-80-14 except as specifically provided otherwise in this
article. In either event, such general obligation debt shall be payable first
from the separate account in which are placed the proceeds received by the
municipality from the tax authorized by this article. Such general obligation
debt shall, however, constitute a pledge of the full faith, credit, and taxing
power of the municipality; and any liability on such debt which is not satisfied
from the proceeds of the tax authorized by this article shall be satisfied from
the general funds of the municipality.
(3)
The tax authorized by this article shall not be subject to any maximum period of
time for which the tax may be levied if general obligation debt is to be issued
in conjunction with the imposition of the tax. In such case the resolution or
ordinance calling for the imposition of the tax shall not be required to state a
maximum period of time for which the tax is to be levied; and the language
relating to the maximum period of time for which the tax is to be levied shall
be omitted from the ballot. The resolution or ordinance calling for the
imposition of the tax shall state the maximum amount of revenue to be raised by
the tax, and the tax shall terminate as provided in paragraph (1) or (3) of
subsection (b) of Code Section 48-8-234.
48-8-234.
(a)(1)
If the imposition of the tax is approved by referendum, the tax shall be imposed
on the first day of the next succeeding calendar quarter which begins more than
80 days after the date of the election at which the tax was approved by the
voters.
(2)
With respect to services which are regularly billed on a monthly basis, however,
the resolution or ordinance imposing the tax shall become effective with respect
to and the tax shall apply to the first regular billing period coinciding with
or following the effective date specified in paragraph (1) of this subsection.
A certified copy of the ordinance or resolution imposing the tax shall be
forwarded to the commissioner so that it will be received within five business
days after certification of the election results.
(b)
The tax shall cease to be imposed on the earliest of the following
dates:
(1)
If the resolution or ordinance calling for the imposition of the tax provided
for the issuance of general obligation debt and such debt is the subject of
validation proceedings, as of the end of the first calendar quarter ending more
than 80 days after the date on which a court of competent jurisdiction enters a
final order denying validation of such debt;
(2)
On the final day of the maximum period of time specified for the imposition of
the tax; or
(3)
As of the end of the calendar quarter during which the commissioner determines
that the tax will have raised revenues sufficient to provide to the municipality
net proceeds equal to or greater than the amount specified as the maximum amount
of net proceeds to be raised by the tax.
(c)(1)
No municipality shall impose at any time more than a single 1 percent tax under
this article.
(2)
A municipality in which a tax authorized by this article is in effect may, while
the tax is in effect, adopt a resolution or ordinance calling for the
reimposition of a tax as authorized by this article upon the tax then in effect;
and a referendum may be held for this purpose while the tax is in effect.
Proceedings for reimposition of a tax shall be in the same manner as proceedings
for the initial imposition of the tax, but the newly authorized tax shall not be
imposed until the expiration of the tax then in effect; provided, however, that
in the event of emergency conditions under which a municipality is unable to
conduct a referendum so as to continue the tax then in effect without
interruption, the commissioner may, if feasible administratively, waive the
limitations of subsection (a) of this Code section to the minimum extent
necessary so as to permit the reimposition of a tax, if otherwise approved as
required under this Code section, without interruption, upon the expiration of
the tax then in effect.
(3)
Following the expiration of a tax under this article, a municipality may
initiate proceedings for the reimposition of a tax under this article in the
same manner as provided in this article for the initial imposition of such
tax.
48-8-235.
A
tax levied pursuant to this article shall be exclusively administered and
collected by the commissioner for the use and benefit of the municipality
imposing the tax. Such administration and collection shall be accomplished in
the same manner and subject to the same applicable provisions, procedures, and
penalties provided in Article 1 of this chapter; provided, however, that all
moneys collected from each taxpayer by the commissioner shall be applied first
to such taxpayer's liability for taxes owed the state. Dealers shall be allowed
a percentage of the amount of the tax due and accounted for and shall be
reimbursed in the form of a deduction in submitting, reporting, and paying the
amount due if such amount is not delinquent at the time of payment. The
deduction shall be at the rate and subject to the requirements specified under
subsections (b) through (f) of Code Section 48-8-50.
48-8-236.
Each
sales and use tax return remitting sales and use taxes collected under this
article shall separately identify the location of each retail establishment at
which any of the sales and use taxes remitted were collected and shall specify
the amount of sales and the amount of taxes collected at each establishment for
the period covered by the return in order to facilitate the determination by the
commissioner that all sales and use taxes imposed by this article are collected
and distributed according to situs of sale.
48-8-237.
The
proceeds of the tax collected by the commissioner in each municipality under
this article shall be disbursed as soon as practicable after collection as
follows:
(1)
One percent of the amount collected shall be paid into the general fund of the
state treasury in order to defray the costs of administration; and
(2)
Except for the percentage provided in paragraph (1) of this Code section, the
remaining proceeds of the tax shall be distributed to the governing authority of
the municipality imposing the tax and shall be expended for all purposes
specified under paragraph (3) of Code Section 48-8-231.
48-8-238.
Where
a local sales or use tax has been paid with respect to tangible personal
property by the purchaser either in another local tax jurisdiction within this
state or in a tax jurisdiction outside this state, the tax may be credited
against the tax authorized to be imposed by this article upon the same property.
If the amount of sales or use tax so paid is less than the amount of the use tax
due under this article, the purchaser shall pay an amount equal to the
difference between the amount paid in the other tax jurisdiction and the amount
due under this article. The commissioner may require such proof of payment in
another local tax jurisdiction as the commissioner deems necessary and proper.
No credit shall be granted, however, against the tax imposed under this article
for tax paid in another jurisdiction if the tax paid in such other jurisdiction
is used to obtain a credit against any other local sales and use tax levied in
the municipality or in a special district which includes the municipality; and
taxes so paid in another jurisdiction shall be credited first against the tax
levied under Article 3 of this chapter, if applicable, then against the tax
levied under Article 2 of this chapter, if applicable, and then against the tax
levied under this article.
48-8-239.
No
tax provided for in this article shall be imposed upon the sale of tangible
personal property which is ordered by and delivered to the purchaser at a point
outside the geographical area of the municipality in which the tax is imposed
regardless of the point at which title passes, if the delivery is made by the
seller's vehicle, United States mail, or common carrier or by private or
contract carrier licensed by the Federal Highway Administration or the Georgia
Public Service Commission.
48-8-240.
No
tax provided for in this article shall be imposed upon the sale or use of
building and construction materials when the contract pursuant to which the
materials are purchased or used was advertised for bid prior to the voters'
approval of the levy of the tax and the contract was entered into as a result of
a bid actually submitted in response to the advertisement prior to approval of
the levy of the tax.
48-8-241.
The
commissioner shall have the power and authority to promulgate such rules and
regulations as shall be necessary for the effective and efficient administration
and enforcement of the collection of the tax authorized to be imposed by this
article.
48-8-242.
The
tax authorized by this article shall be in addition to any other local sales and
use tax. The imposition of any other local sales and use tax within a county,
municipality, or special district shall not affect the authority of a
municipality to impose the tax authorized by this article and the imposition of
the tax authorized by this article shall not affect the imposition of any
otherwise authorized local sales and use tax within the county, municipality, or
special district.
48-8-243.
(a)
The proceeds received from the tax authorized by this article shall be used by
the municipality exclusively for transportation projects and maintenance and
operations expenses. Such proceeds shall be kept in a separate account from
other funds of the municipality and shall not in any manner be commingled with
other funds of the municipality prior to expenditure.
(b)
The governing authority of the municipality shall maintain a record of each and
every transportation project for which the proceeds of the tax are used. In
each annual audit a schedule shall be included which shows for each ongoing
transportation project the original estimated cost, the current estimated cost
if it is not the original estimated cost, amounts expended in prior years, and
amounts expended in the current year. The auditor shall verify and test
expenditures sufficient to provide assurances that the schedule is fairly
presented in relation to the financial statements. The auditor's report on the
financial statements shall include an opinion, or disclaimer of opinion, as to
whether the schedule is presented fairly in all material respects in relation to
the financial statements taken as a
whole."
SECTION
2.
Said
chapter is further amended by revising subsection (b) of Code Section 48-8-6,
relating to limitations on imposition of certain local taxes, as
follows:
"(b)
There shall not be imposed in any jurisdiction in this state or on any
transaction in this state local sales taxes, local use taxes, or local sales and
use taxes in excess of 2 percent. For purposes of this prohibition, the taxes
affected are any sales tax, use tax, or sales and use tax which is levied in an
area consisting of less than the entire state, however authorized, including
such taxes authorized by or pursuant to constitutional amendment, except that
the following taxes shall not count toward or be subject to such 2 percent
limitation:
(1)
A sales and use tax for educational purposes exempted from such limitation under
Article VIII, Section VI, Paragraph IV of the Constitution;
(2)
Any tax levied for purposes of a metropolitan area system of public
transportation, as authorized by the amendment to the Constitution set out at
Georgia Laws, 1964, page 1008; the continuation of such amendment under Article
XI, Section I, Paragraph IV(d) of the Constitution; and the laws enacted
pursuant to such constitutional amendment; provided, however, that the exception
provided for under this paragraph shall only apply in a county in which a tax is
being imposed under subparagraph (a)(1)(D) of Code Section 48-8-111 in whole or
in part for the purpose or purposes of a water capital outlay project or
projects, a sewer capital outlay project or projects, a water and sewer capital
outlay project or projects, water and sewer projects and costs as defined under
paragraph (3) of Code Section 48-8-200, or any combination thereof and with
respect to which the county has entered into an intergovernmental contract with
a municipality, in which the average waste-water system flow of such
municipality is not less than 85 million gallons per day, allocating proceeds to
such municipality to be used solely for water and sewer projects and costs as
defined under paragraph (3) of Code Section 48-8-200. The exception provided
for under this paragraph shall apply only during the period the tax under said
subparagraph (a)(1)(D) is in effect. The exception provided for under this
paragraph shall not apply in any county in which a tax is being imposed under
Article 2A of this chapter;
(3)
In the event of a rate increase imposed pursuant to Code Section 48-8-96, only
the amount in excess of the initial 1 percent sales and use tax and in the event
of a newly imposed tax pursuant to Code Section 48-8-96, only the amount in
excess of a 1 percent sales and use tax;
and
(4)
A sales and use tax levied under Article 4 of this
chapter;
and
(5)
A sales and use tax levied under Article 5 of this
chapter.
If
the imposition of any otherwise authorized local sales tax, local use tax, or
local sales and use tax would result in a tax rate in excess of that authorized
by this subsection, then such otherwise authorized tax may not be
imposed."
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.