Bill Text: GA HB938 | 2011-2012 | Regular Session | Introduced

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Bill Title: Sales and use tax; Article 5 relating to a transportation tax; repeal and reenact

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2012-02-09 - House Second Readers [HB938 Detail]

Download: Georgia-2011-HB938-Introduced.html

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12 LC 34 3287

House Bill 938

By: Representatives Setzler of the 35th, Golick of the 34th, and Ramsey of the 72nd

A BILL TO BE ENTITLED
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 repeal and reenact Article 5, relating to a transportation sales and use tax; to provide findings by the General Assembly; to provide definitions; to provide for an up to 1 percent local sales tax to be used to fund transportation projects in special transportation districts within this state; to provide for the creation of such districts, the governance thereof, and the development of a list of transportation projects for the district; to provide for an approval process; to provide that counties may opt out of a district under specified circumstances; to provide for counties to pass a resolution calling for a referendum within the district to approve the levy of the tax; to require hearings; to provide for the tax to be levied by the participating counties; to provide for the funds to be collected by the Department of Revenue and to be deposited in trust accounts; to provide for funding local projects through the local maintenance and improvement grant program; to provide that an approved levy shall not be subject to allocation and balancing of state and federal funds; to provide for contracting and constructing of the approved transportation projects; to provide for exemptions; to provide for annual reporting; to provide for related matters; to provide for a conditional effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I
SECTION 1-1.

Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use taxes, is amended by repealing Article 5, relating to a transportation sales and use tax, and designating said article as reserved.

PART II
SECTION 2-1.

Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use taxes, is amended by enacting a new Article 5 to read as follows:

"ARTICLE 5

48-8-240.

(a) The General Assembly of the State of Georgia finds that:

(1) An efficient and effective transportation system is essential to the health and welfare of the state, its businesses, and its citizens;

(2) The development and maintenance of such a system is dependent on the provision of a reliable source of local revenue to fund the transportation projects and transportation purposes necessary therefor;

(3) Districts with geographical boundaries that correspond with and are coterminous with the boundaries of one or more counties may be created and local sales and use taxes may be levied therein pursuant to Article IX, Section II, Paragraph VI; Article IX, Section IV, Paragraph I(a); and Article IX, Section IV, Paragraph V of the Georgia Constitution; and

(4) The creation of such districts and the levy of such taxes therein is in the best interests of the citizens of the State of Georgia.

(b) As used in this article, the term:

(1) 'District' or 'transportation district' means a transportation district authorized by Article IX, Section II, Paragraph VI and Article IX, Section IV, Paragraph V of the Georgia Constitution and created pursuant to Code Sections 48-8-241 and 48-8-242.

(2) 'Intergovernmental agreement' means a contract entered into pursuant to Article IX, Section III, Paragraph I of the Georgia Constitution.

(3) 'Tax' or 'transportation tax' or 'levy' means a local district-wide sales and use tax levied pursuant to this article and authorized by Article IX, Section II, Paragraph VI; Article IX, Section IV, Paragraph I(a); and Article IX, Section IV, Paragraph V of the Georgia Constitution.

(4) 'Transportation agency' means a state government, a local government, or a community improvement district or authority created by general law, by local law, or as a result of an intergovernmental agreement entered into for the purpose of engaging in activities constituting or relating to transportation projects or transportation purposes.

(5) 'Transportation project' or 'transportation purpose' means, without limitation, a project that can reasonably be expected to be completed in ten years, including roads and bridges, freight and passenger rail, airports, buses, and seaports and all activities and structures useful and incident to providing, operating, and maintaining the same, including such purposes as defined in subsection (b) of Code Section 48-8-121 and further including reasonable and necessary expenses for the operation of a special transportation district created pursuant to this article; provided, however, that transportation project or transportation purpose shall not include projects which are inconsistent with the goals of any state-wide strategic transportation plan; and provided, further, that the Metropolitan Atlanta Rapid Transit Authority, created by an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, shall not be authorized to use any proceeds from a tax levied under the provisions of this article for expenses of maintenance and operation of such portions of the transportation system of such authority in existence on January 1, 2012.

48-8-240.1.

The approval of the levy of tax provided for under this article in a special district shall not in any way diminish the percentage of funds allocated to a special district or any of the local governments within a special district under the provisions of subsection (c) of Code Section 32-5-27. The amount of funds expended in a special district shall not be decreased due to the use of proceeds from the special district transportation sales and use tax to construct transportation projects that have a high priority in the state-wide strategic transportation plan. If a special district constructs a transportation project on the approved investment list using proceeds from the special district tax, then the state funding under subsection (c) of Code Section 32-5-27 shall not be diverted to priority projects in other special districts.

48-8-241.

(a)(1) Pursuant to the authority granted by Article IX, Section II, Paragraph VI and Article IX, Section IV, Paragraph V of the Georgia Constitution, there are created within this state 159 special transportation districts. The geographical boundary of each county shall correspond with and shall be coterminous with the geographical boundary of the 159 special transportation districts. A county shall be wholly within one transportation district. No county shall be divided among more than one district.

(2) Any two or more contiguous counties may enter into an intergovernmental agreement for the purpose of merging two or more single-county special transportation districts into a multicounty special transportation district.

(b) On or after January 1, 2013, a single local sales and use tax of up to 1 percent may be levied as provided in this article to fund transportation projects or transportation purposes in a special transportation district consisting of one or more counties.

48-8-242.

(a)(1) Special transportation districts may be created by the governing authorities of two or more contiguous counties by intergovernmental agreement executed pursuant to Article IX, Section III, Paragraph I and Article IX, Section IV, Paragraph V of the Georgia Constitution.

(2)(A) Prior to the execution of the intergovernmental agreement required by paragraph (1) of this subsection, the counties that desire to levy a transportation tax within a special transportation district created pursuant to this Code section shall schedule a meeting or meetings to discuss possible transportation projects for inclusion in the project list. At the conclusion of the final meeting, a final project list shall be conditionally approved and sent to the governing authorities of each participating county for final approval. The governing authority of each participating county shall, within 30 days of receiving the proposed project list, approve the list, reject the list, or suggest amendments to the list. If the governing authority of any participating county suggests amendments to the list, further negotiations among the counties shall be initiated to consider the amendments. If the governing authority of any participating county rejects the list, that county shall be excluded from the special transportation district, and if there are two or more remaining participating counties, the negotiation of a new project list among the remaining counties shall begin. No referendum shall be scheduled under subsection (c) of this Code section until the governing authorities of each participating county have approved the project list.

(B) Any transportation project on the project list that requires the use of any federal matching funds, or any other source of anticipated funding not directly coming from the levy authorized under this article, shall be guaranteed by a pledge of the full faith and credit of the governing authority of the county or counties that propose the project to ensure that if the matching or other anticipated funding does not materialize, the shortfall shall be made up by the use of general funds of the proposing county or counties.

(b) At a minimum, the intergovernmental agreement authorized by paragraph (1) of subsection (a) of this Code section shall include:

(1) A list of the transportation projects and transportation purposes approved pursuant to paragraph (2) of subsection (a) of this Code section proposed to be funded from the levy authorized by this article;

(2) The estimated or projected dollar amounts allocated for each transportation project from proceeds from the levy authorized by this article;

(3) The procedures for distributing proceeds from the levy authorized by this article to the counties in the special transportation district;

(4) A schedule for distributing proceeds from the levy authorized by this article to the counties in the special transportation district. Such schedule shall include the priority or order in which transportation projects will be fully or partially funded;

(5) A provision that all transportation projects included in the agreement shall be funded from proceeds from the levy authorized by this article;

(6) A provision that proceeds from the levy authorized by this article shall be maintained in separate accounts and utilized exclusively for the specified transportation purposes;

(7) Record-keeping and audit procedures necessary to carry out the purposes of this article; and

(8) Such other provisions as the participating counties choose to address.

(c)(1) As soon as practicable after the execution of an intergovernmental agreement authorized by paragraph (1) of subsection (a) of this Code section, the governing authorities of the counties within the special transportation district may by a majority vote on a resolution offered for such purpose submit the project list and the question of whether the levy provided for by this article should be approved to electors of the special transportation district in an election called for such purpose, and each participating county governing authority shall notify their respective county election superintendent within the district by forwarding to each superintendent a copy of such resolution calling for the imposition of the levy. Each county election superintendent shall issue the call and shall conduct the election on the date of the general primary in 2014 and in the manner authorized under Code Section 21-2-540.

(2) Prior to the adoption of the resolution calling for the levy of the transportation tax within the district required by paragraph (1) of this subsection, a public hearing shall be held at which time any persons wishing to be heard on the proposed resolution may appear. Notice of the time and place of the hearing shall be determined by the counties within the district and shall be published at least one week before the hearing is held. The notice shall be published in one or more newspapers of general circulation within the special transportation district.

(3) The resolution authorized by paragraph (1) of this subsection shall describe:

(A) The specific transportation projects or transportation purposes to be funded;

(B) The approximate cost of such transportation projects or transportation purposes, including any federal, state, or private funds anticipated to be allocated to such transportation projects or transportation purposes, which shall also be the maximum amount of net proceeds to be raised by the levy. For the purposes of this subparagraph, the term 'private funds' shall include any tolls, fares, fees, or tax increments projected for use of such transportation projects or transportation purposes; and

(C) The maximum period of time, up to ten years maximum, to be stated in calendar years, for which the levy may be levied and the rate thereof.

(d) The governing authority of each county in a district may select one or more transportation agencies to be responsible for designing, planning, and contracting for the construction of district transportation projects within the boundaries of the county.

(e) The proposed list of transportation projects or transportation purposes specified in paragraph (1) of subsection (a) of this Code section shall be subject to review and approval by the director of planning of the Department of Transportation to ensure that it is consistent with any state-wide strategic plan. The Department of Transportation shall be authorized to promulgate reasonable rules or regulations establishing procedures for the review of such lists. Any such regulations shall include a provision that the review and approval process shall take no more than 30 calendar days and shall be completed prior to the call for the referendum authorized by subsection (c) of this Code section.

48-8-243.

(a) Except as otherwise provided in this Code section, the procedures for conducting the referendum on the question of imposing the levy shall correspond generally to the procedures provided for by Part 1 of Article 3 of this chapter, except that the project list provided for by Code Section 48-8-242, or a digest thereof, shall be available during regular business hours in the office of the county clerk of each county that has authorized the levy authorized by this article.

(b) The ballot submitting the question of the imposition of the levy authorized by this article to the voters within the special transportation district shall have written or printed thereon the following:

'(  )  YES (  )  NO

For the purpose of improving transportation mobility, shall a special ___ percent local sales and use tax be levied for a limited time in the special transportation district consisting of _______Counties to expire on _______ (date) to raise an estimated $_______ to fund a defined list of projects?'

(c) The election superintendent in each county within the transportation district 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 county funds. All persons desiring to vote in favor of imposing the levy shall vote 'Yes,' and all persons opposed to imposing the levy shall vote 'No.' If more than one-half of the votes cast throughout the entire special transportation district are in favor of imposing the levy, then the levy shall be imposed as provided in this article.

(d) Where such question is not approved by the voters of the district, the county or counties of the special transportation district may resubmit such question from time to time and may amend such project list or digest thereof. Proceedings for the reimposition of such levy shall be in the same manner as proceedings for the initial imposition of the levy, but the newly authorized levy shall not be imposed until the expiration of the levy then in effect unless the levy in effect is less than 1 percent. In no circumstances shall more than 1 percent be levied at any time.

(e) Whenever the levy is authorized pursuant to the provisions of this article, the counties within the approving district shall levy a sales and use tax as provided for by this article, to be collected as provided by law.

48-8-244.

(a) A tax levied pursuant to this article shall be exclusively administered and collected by the state revenue commissioner for the use and benefit of the counties within such special transportation district 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 except that the sales and use tax provided in this article shall be applicable to sales of motor fuels as prepaid local tax as that term is defined by paragraph (23) of Code Section 48-8-2, provided that the commissioner may rely upon a representation by or on behalf of the counties within the transportation district or the Secretary of State that such a tax has been validly imposed, and the commissioner and the commissioner's agents shall not be liable to any person for collecting any such tax which was not validly imposed. Dealers, as defined by paragraph (8) of Code Section 48-8-2, 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.

(b) All of the proceeds of a levy authorized by this article and collected by the commissioner in a special transportation district wherein the tax is levied shall be transferred to a trust fund maintained by a county governing authority or an entity other than an entity established pursuant to Article 2 or 4 of Chapter 8 of Title 50 as agreed to by intergovernmental agreement or other writing of the counties included in a special transportation district. Such proceeds shall be expended as provided for by this article and shall be used exclusively for the transportation purposes specified in the resolution calling for imposition of the levy and shall not be commingled in any manner with any other funds held or received by any county.

48-8-245.

Upon request of the counties included in the special transportation district, the Georgia Department of Transportation shall cooperate with the district and its constituent counties and may enter into intergovernmental agreements to design, plan, and contract for the construction and operation of the proposed transportation projects.

48-8-246.

(a) Nothing in this article shall be construed to prohibit counties and municipalities located in a special transportation district from imposing as additional taxes local sales and use taxes otherwise authorized by general law.

(b) 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 shall not affect the authority 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.

48-8-247.

The levy authorized by this article shall not be subject to any allocation or balancing of state and federal funds provided for by general law, nor may such proceeds be considered or taken into account in any such allocation or balancing.

48-8-248.

Except as otherwise specifically provided in this article, the levy authorized by this article shall be subject to any sales and use tax exemption which is otherwise imposed by general law; provided, however, that such levy shall be levied on the sale of food or beverages as provided for in paragraph (57) of Code Section 48-8-3.

48-8-249.

A record of transportation projects on which proceeds from the levy authorized by this article are used shall be maintained by each county receiving proceeds from the levy, and a report shall be prepared not later than December 31 of each year. Such record and report shall conform to the requirements of Code Section 48-8-122."

PART III
SECTION 3-1.

(a) This part and Part I of this Act shall become effective upon this Act's approval by the Governor or upon its becoming law without such approval.

(b) Part II of his Act shall become effective on January 1, 2013; provided, however, that Part II of this Act shall only become effective on January 1, 2013, upon the ratification of a resolution at the November, 2012, state-wide general election, which resolution amends the Constitution so as to authorize regional funding sources for transportation purposes. If such resolution is not so ratified, Part II of this Act shall not become effective and shall stand repealed in its entirety on January 1, 2013.

SECTION 3-2.

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