HB 108 - Homestead Option Sales Tax Act; enact
Georgia House of Representatives - 1995/1996 Sessions
HB 108 - Homestead Option Sales Tax Act; enact
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10
1. Ladd 59th 2. Polak 67th 3. Johnson 97th
4. Crews 78th
House Comm: W&M / Senate Comm: F&PU /
House Vote: Yeas 152 Nays 0 Senate Vote: Yeas 48 Nays 0
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House Action Senate
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1/9/95 Read 1st Time 2/9/95
1/10/95 Read 2nd Time 3/1/95
2/3/95 Favorably Reported 2/28/95
Committee Amend/Sub Sub
2/8/95 Read 3rd Time 3/9/95
2/8/95 Passed/Adopted 3/9/95
FS Comm/Floor Amend/Sub CS
3/15/95 Amend/Sub Agreed To
4/3/95 Sent to Governor
4/18/95 Signed by Governor
338 Act/Veto Number
4/18/95 Effective Date
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Rules Suspended to Introduce
Code Sections amended: 48-8-100, 48-8-101, 48-8-102, 48-8-103, 48-8-104,
48-8-105, 48-8-106, 48-8-107, 48-8-108, 48-8-109,
HB 108 HB 108/AP
H. B. No. 108 (AS PASSED HOUSE AND SENATE)
By: Representatives Ladd of the 59th, Polak of the 67th,
Johnson of the 97th and Crews of the 78th
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 8 of Title 48 of the Official Code of
1- 2 Georgia Annotated, relating to sales and use taxes, so as to
1- 3 provide for procedures with respect to homestead exemptions
1- 4 within certain special districts; to provide for
1- 5 definitions; to provide for funding of services through the
1- 6 levy and collection of a local sales and use tax; to provide
1- 7 for the creation of special districts; to provide for the
1- 8 rate and manner of imposition of such tax; to provide for
1- 9 applicability to certain sales; to provide for a referendum
1-10 and election procedures with respect to the imposition and
1-11 discontinuation of such tax; to provide for powers, duties,
1-12 and authority of county governing authorities with respect
1-13 to such tax; to provide for powers, duties, and authority of
1-14 the state revenue commissioner with respect to such tax; to
1-15 provide for administration and collection of such tax; to
1-16 provide for returns; to provide for distribution of
1-17 proceeds; to provide for certain credits; to provide for the
1-18 expenditure of certain excess proceeds; to provide for other
1-19 matters relative to the foregoing; to provide an effective
1-20 date; to repeal conflicting laws; and for other purposes.
1-21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1-22 Chapter 8 of Title 48 of the Official Code of Georgia
1-23 Annotated, relating to sales and use taxes, is amended by
1-24 adding a new article immediately following Article 2, to be
1-25 designated Article 2A, to read as follows:
"ARTICLE 2A
1-26 48-8-100. (Index)
1-27 This article shall be known and may be cited as the
1-28 'Homestead Option Sales and Use Tax Act.'
1-29 48-8-101. (Index)
1-30 As used in this article, the term:
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2- 1 (1) 'Ad valorem taxes for county purposes' means all ad
2- 2 valorem taxes for county maintenance and operation
2- 3 purposes levied by, for, or on behalf of the county,
2- 4 excluding taxes to retire bonded indebtedness.
2- 5 (2) 'Homestead' means homestead as defined and qualified
2- 6 in Code Section 48-5-40, with the additional
2- 7 qualification that it shall include only the primary
2- 8 residence and not more than five contiguous acres of
2- 9 land immediately surrounding such residence.
2-10 48-8-102. (Index)
2-11 (a) Pursuant to the authority granted by Article IX,
2-12 Section II, Paragraph VI of the Constitution of this
2-13 state, there are created within this state 159 special
2-14 districts. The geographical boundary of each county shall
2-15 correspond with and shall be conterminous with the
2-16 geographical boundary of one of the 159 special districts.
2-17 (b) When the imposition of a local sales and use tax is
2-18 authorized according to the procedures provided in this
2-19 article within a special district, the county whose
2-20 geographical boundary is conterminous with that of the
2-21 special district shall levy a local sales and use tax at
2-22 the rate of 1 percent. Except as to rate, the local sales
2-23 and use tax shall correspond to the tax imposed and
2-24 administered by Article 1 of this chapter. No item or
2-25 transaction which is not subject to taxation by Article 1
2-26 of this chapter shall be subject to the sales and use tax
2-27 levied pursuant to this article, except that the sales and
2-28 use tax provided in this article shall be applicable to
2-29 sales of motor fuels as that term is defined by Code
2-30 Section 48-9-2.
2-31 (c)(1) Except as otherwise provided in paragraph (2) of
2-32 this subsection, the proceeds of the sales and use tax
2-33 levied and collected under this article shall be used
2-34 only for the purpose of funding services within a
2-35 special district equal to the revenue lost to the
2-36 homestead exemption as provided in Code Section 48-8-104
2-37 and, in the event excess funds remain following the
2-38 expenditure for such purpose, such excess funds shall be
2-39 used for millage rate adjustment as provided in
2-40 subparagraph (c)(2)(E) of Code Section 48-8-104.
2-41 (2) Prior to January 1 of the year immediately following
2-42 the first complete calendar year in which the sales and
2-43 use tax under this article is imposed, such proceeds may
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3- 1 be used for funding all or any portion of those services
3- 2 which are to be provided by the governing authority of
3- 3 the county whose geographic boundary is conterminous
3- 4 with that of the special district pursuant to and in
3- 5 accordance with Article IX, Section II, Paragraph III of
3- 6 the Constitution of this state.
3- 7 (d) Such sales and use tax shall only be levied in a
3- 8 special district following the enactment of a local Act
3- 9 which provides for a homestead exemption of an amount to
3-10 be determined from the amount of sales and use tax
3-11 collected under this article. Such exemption shall
3-12 commence with taxable years beginning on or after January
3-13 1 of the year immediately following the first complete
3-14 calendar year in which the sales and use tax under this
3-15 article is levied. Any such local Act shall incorporate
3-16 by reference the terms and conditions specified under this
3-17 article. Any such homestead exemption under this article
3-18 shall be in addition to and not in lieu of any other
3-19 homestead exemption applicable to county taxes for county
3-20 purposes within the special district. Notwithstanding any
3-21 provision of such local Act to the contrary, the
3-22 referendum which shall otherwise be required to be
3-23 conducted under such local Act shall only be conducted if
3-24 the resolution required under subsection (a) of Code
3-25 Section 48-8-103 is adopted prior to the issuance of the
3-26 call for the referendum under the local Act by the
3-27 election superintendent. If such ordinance is not adopted
3-28 by that date, the referendum otherwise required to be
3-29 conducted under the local Act shall not be conducted.
3-30 (e) No sales and use tax shall be levied in a special
3-31 district under this article in which a tax is levied and
3-32 collected under either Article 2 or Article 3 of this
3-33 chapter.
3-34 48-8-103. (Index)
3-35 (a) Whenever the governing authority of any county whose
3-36 geographic boundary is conterminous with that of the
3-37 special district wishes to submit to the electors of the
3-38 special district the question of whether the sales and use
3-39 tax authorized by Code Section 48-8-102 shall be imposed,
3-40 any such governing authority shall notify the election
3-41 superintendent of the county whose geographical boundary
3-42 is conterminous with that of the special district by
3-43 forwarding to the superintendent a copy of a resolution of
3-44 the governing authority calling for a referendum election.
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4- 1 Upon receipt of the resolution, it shall be the duty of
4- 2 the election superintendent to issue the call for an
4- 3 election for the purpose of submitting the question of the
4- 4 imposition of the sales and use tax to the voters of the
4- 5 special district for approval or rejection. The election
4- 6 superintendent shall issue the call and shall conduct the
4- 7 election on a date and in the manner authorized under Code
4- 8 Section 21-2-540. Such election shall only be conducted
4- 9 on the date of and in conjunction with a referendum
4-10 provided for by local Act on the question of whether to
4-11 impose a homestead exemption within such county and based
4-12 on the amount of proceeds from the sales and use tax
4-13 levied and collected pursuant to this article. The
4-14 election superintendent shall cause the date and purpose
4-15 of the election to be published once a week for two weeks
4-16 immediately preceding the date of the election in the
4-17 official organ of such county. The ballot shall have
4-18 written or printed thereon the following statement which
4-19 shall precede the ballot question specified in this
4-20 subsection and the ballot question specified by the
4-21 required local Act:
4-22 'NOTICE TO ELECTORS: Unless BOTH the homestead
4-23 exemption AND the homestead option sales and use tax are
4-24 approved, then neither the exemption nor the sales and
4-25 use tax shall become effective.'
4-26 Such statement shall be followed by the following:
4-27 '( ) YES Shall a retail sales and use tax of 1
4-28 percent be levied within the special
4-29 ( ) NO district within _____________ County for the
4-30 purpose of funding services to replace
4-31 revenue lost to an additional homestead
4-32 exemption of up to 100 percent of the
4-33 assessed value of homesteads from county
4-34 taxes for county purposes?'
4-35 (b) All persons desiring to vote in favor of levying the
4-36 sales and use tax shall vote 'Yes,' and those persons
4-37 opposed to levying the tax shall vote 'No.' If more than
4-38 one-half of the votes cast are in favor of levying the tax
4-39 and approving the local Act providing such homestead
4-40 exemption, then the tax shall be levied in accordance with
4-41 this article; otherwise, the sales and use tax may not be
4-42 levied, and the question of the imposition of the sales
4-43 and use tax may not again be submitted to the voters of
4-44 the special district until after 24 months immediately
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5- 1 following the month in which the election was held. It
5- 2 shall be the duty of the election superintendent to hold
5- 3 and conduct such elections under the same rules and
5- 4 regulations as govern special elections. It shall be the
5- 5 superintendent's further duty to canvass the returns,
5- 6 declare the result of the election, and certify the result
5- 7 to the Secretary of State and to the commissioner. The
5- 8 expense of the election shall be borne by the county whose
5- 9 geographical boundary is conterminous with that of the
5-10 special district holding the election.
5-11 (c) If the imposition of the sales and use tax provided in
5-12 Code Section 48-8-102 is approved in a referendum election
5-13 as provided by subsections (a) and (b) of this Code
5-14 section, the governing authority of the county whose
5-15 geographical boundary is conterminous with that of the
5-16 special district shall adopt a resolution during the first
5-17 30 days following the certification of the result of the
5-18 election imposing the sales and use tax authorized by Code
5-19 Section 48-8-102 on behalf of the county whose
5-20 geographical boundary is conterminous with that of the
5-21 special district. The resolution shall be effective on
5-22 the first day of the next succeeding calendar quarter
5-23 which begins more than 80 days after the adoption of the
5-24 resolution. With respect to services which are billed on
5-25 a regular monthly basis, however, the resolution shall
5-26 become effective with the first regular billing period
5-27 coinciding with or following the otherwise effective date
5-28 of the resolution. A certified copy of the resolution
5-29 shall be forwarded to the commissioner so that it will be
5-30 received within five days after its adoption.
5-31 48-8-104. (Index)
5-32 (a) The sales and use tax levied pursuant to this article
5-33 shall be exclusively administered and collected by the
5-34 commissioner for the use and benefit of each county whose
5-35 geographical boundary is conterminous with that of a
5-36 special district. Such administration and collection
5-37 shall be accomplished in the same manner and subject to
5-38 the same applicable provisions, procedures, and penalties
5-39 provided in Article 1 of this chapter; provided, however,
5-40 that all moneys collected from each taxpayer by the
5-41 commissioner shall be applied first to such taxpayer's
5-42 liability for taxes owed the state. Dealers shall be
5-43 allowed a percentage of the amount of the sales and use
5-44 tax due and accounted for and shall be reimbursed in the
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6- 1 form of a deduction in submitting, reporting, and paying
6- 2 the amount due if such amount is not delinquent at the
6- 3 time of payment. The deduction shall be at the rate and
6- 4 subject to the requirements specified under subsections
6- 5 (b) through (f) of Code Section 48-8-50.
6- 6 (b) Each sales and use tax return remitting sales and use
6- 7 taxes collected under this article shall separately
6- 8 identify the location of each retail establishment at
6- 9 which any of the sales and use taxes remitted were
6-10 collected and shall specify the amount of sales and the
6-11 amount of taxes collected at each establishment for the
6-12 period covered by the return in order to facilitate the
6-13 determination by the commissioner that all sales and use
6-14 taxes imposed by this article are collected and
6-15 distributed according to situs of sale.
6-16 (c) The proceeds of the sales and use tax collected by the
6-17 commissioner in each special district under this article
6-18 shall be disbursed as soon as practicable after collection
6-19 as follows:
6-20 (1) One percent of the amount collected shall be paid
6-21 into the general fund of the state treasury in order to
6-22 defray the costs of administration;
6-23 (2) Except for the percentage provided in paragraph (1)
6-24 of this subsection, the remaining proceeds of the sales
6-25 and use tax shall be distributed to the governing
6-26 authority of the county whose geographical boundary is
6-27 conterminous with that of the special district. As a
6-28 condition precedent for the authority to levy the sales
6-29 and use tax or to collect any proceeds from the tax
6-30 authorized by this article for the year following the
6-31 first complete calendar year in which it is levied and
6-32 for all subsequent years except the year following the
6-33 year in which the sales and use tax is terminated under
6-34 Code Section 48-8-106, the county whose geographical
6-35 boundary is conterminous with that of the special
6-36 district shall, except as otherwise provided in
6-37 subsection (c) of Code Section 48-8-102, expend such
6-38 proceeds as follows:
6-39 (A) The homestead factor shall be calculated by
6-40 dividing the net amount of sales and use tax collected
6-41 in the special district pursuant to this article for
6-42 the previous calendar year, by the taxes levied for
6-43 county purposes on only that portion of the county tax
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7- 1 digest that represents net assessments on qualified
7- 2 homestead property after all other homestead
7- 3 exemptions have been applied, rounding the result to
7- 4 three decimal places;
7- 5 (B) If the homestead factor is less than or equal to
7- 6 1.000, the amount of homestead exemption created under
7- 7 this article on qualified homestead property shall be
7- 8 equal to the product of the homestead factor
7- 9 multiplied times the net assessment of each qualified
7-10 homestead remaining after all other homestead
7-11 exemptions have been applied;
7-12 (C) If the homestead factor is greater than 1.000, the
7-13 homestead exemption created by this article on
7-14 qualified homestead property shall be equal to the net
7-15 assessment of each homestead remaining after all other
7-16 homestead exemptions have been applied, and to the
7-17 extent the sales and use tax proceeds collected under
7-18 this article exceed the total revenue lost to the
7-19 homestead exemptions created by this article, the
7-20 millage rate levied for county purposes shall be
7-21 rolled back in an amount equal to such excess divided
7-22 by the net taxable digest for county purposes after
7-23 deducting all homestead exemptions including the
7-24 exemption under this article; and
7-25 (D) In the event the rollback created by subparagraph
7-26 (C) of this paragraph exceeds the millage rate for
7-27 county purposes, the governing authority of the county
7-28 whose boundary is conterminous with the special
7-29 district shall be authorized to expend the surplus
7-30 funds for funding all or any portion of those services
7-31 which are to be provided by such governing authorities
7-32 pursuant to and in accordance with Article IX, Section
7-33 II, Paragraph III of the Constitution of this state.
7-34 48-8-105. (Index)
7-35 Where a local sales or use tax has been paid with respect
7-36 to tangible personal property by the purchaser either in
7-37 another local tax jurisdiction within the state or in a
7-38 tax jurisdiction outside the state, the sales and use tax
7-39 may be credited against the sales and use tax authorized
7-40 to be imposed by this article upon the same property. If
7-41 the amount of sales or use tax so paid is less than the
7-42 amount of the use tax due under this article, the
7-43 purchaser shall pay an amount equal to the difference
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8- 1 between the amount paid in the other tax jurisdiction and
8- 2 the amount due under this article. The commissioner may
8- 3 require such proof of payment in another local tax
8- 4 jurisdiction as the commissioner deems necessary and
8- 5 proper. No credit shall be granted, however, against the
8- 6 sales and use tax imposed under this article for tax paid
8- 7 in another jurisdiction if the sales and use tax paid in
8- 8 such other jurisdiction is used to obtain a credit against
8- 9 any other local sales and use tax levied in the special
8-10 district or in the county which is conterminous with the
8-11 special district; and sales and use taxes so paid in
8-12 another jurisdiction shall be credited first against the
8-13 sales and use tax levied under this article and then
8-14 against the sales and use tax levied under Article 3 of
8-15 this chapter, if applicable.
8-16 48-8-106. (Index)
8-17 (a) Whenever the governing authority of any county whose
8-18 geographic boundary is conterminous with that of the
8-19 special district in which the sales and use tax authorized
8-20 by this article is being levied wishes to submit to the
8-21 electors of the special district the question of whether
8-22 the sales and use tax authorized by Code Section 48-8-102
8-23 shall be discontinued, the governing authority shall
8-24 notify the election superintendent of the county whose
8-25 geographical boundary is conterminous with that of the
8-26 special district by forwarding to the superintendent a
8-27 copy of a resolution of the governing authority calling
8-28 for the referendum election. Upon receipt of the
8-29 resolution, it shall be the duty of the election
8-30 superintendent to issue the call for an election for the
8-31 purpose of submitting the question of discontinuing the
8-32 levy of the sales and use tax to the voters of the special
8-33 district for approval or rejection. The election
8-34 superintendent shall issue the call and shall conduct the
8-35 election on a date and in the manner authorized under Code
8-36 Section 21-2-540. Such election shall only be conducted
8-37 on the date of and in conjunction with a referendum
8-38 provided for by local Act on the question of whether to
8-39 repeal the homestead exemption within such county which is
8-40 funded from the proceeds of the sales and use tax levied
8-41 and collected pursuant to this article. The election
8-42 superintendent shall cause the date and purpose of the
8-43 election to be published once a week for two weeks
8-44 immediately preceding the date of the election in the
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9- 1 official organ of such county. The ballot shall have
9- 2 written or printed thereon the following:
9- 3 '( ) YES Shall the 1 percent retail sales and use tax
9- 4 being levied within the special district
9- 5 ( ) NO within ____________ County for the purpose
9- 6 of funding services to replace revenue lost
9- 7 to an additional homestead exemption of up
9- 8 to 100 percent of the assessed value of
9- 9 homesteads from county taxes for county
9-10 purposes be terminated?'
9-11 (b) All persons desiring to vote in favor of discontinuing
9-12 the sales and use tax shall vote 'Yes,' and those persons
9-13 opposed to discontinuing the tax shall vote 'No.' If more
9-14 than one-half of the votes cast are in favor of
9-15 discontinuing the sales and use tax and repealing the
9-16 local Act providing for such homestead exemption, then the
9-17 sales and use tax shall cease to be levied on the last day
9-18 of the taxable year following the taxable year in which
9-19 the commissioner receives the certification of the result
9-20 of the election; otherwise, the sales and use tax shall
9-21 continue to be levied, and the question of the
9-22 discontinuing of the tax may not again be submitted to the
9-23 voters of the special district until after 24 months
9-24 immediately following the month in which the election was
9-25 held. It shall be the duty of the election superintendent
9-26 to hold and conduct such elections under the same rules
9-27 and regulations as govern special elections. It shall be
9-28 the superintendent's further duty to canvass the returns,
9-29 declare and certify the result of the election, and
9-30 certify the result to the Secretary of State and to the
9-31 commissioner. The expense of the election shall be borne
9-32 by the county whose geographical boundary is conterminous
9-33 with that of the special district holding the election.
9-34 48-8-107. (Index)
9-35 No sales and use tax provided for in Code Section 48-8-102
9-36 shall be imposed upon the sale of tangible personal
9-37 property which is ordered by and delivered to the
9-38 purchaser at a point outside the geographical area of the
9-39 special district in which the sales and use tax is imposed
9-40 under this article regardless of the point at which title
9-41 passes, if the delivery is made by the seller's vehicle,
9-42 United States mail, or common carrier or by private or
9-43 contract carrier licensed by the Interstate Commerce
9-44 Commission or the Georgia Public Service Commission.
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10- 1 48-8-108. (Index)
10- 2 (a) As used in this Code section, the term 'building and
10- 3 construction materials' means all building and
10- 4 construction materials, supplies, fixtures, or equipment,
10- 5 any combination of such items, and any other leased or
10- 6 purchased articles when the materials, supplies, fixtures,
10- 7 equipment, or articles are to be utilized or consumed
10- 8 during construction or are to be incorporated into
10- 9 construction work pursuant to a bona fide written
10-10 construction contract.
10-11 (b) No sales and use tax provided for in Code Section
10-12 48-8-102 shall be imposed in such special district upon
10-13 the sale or use of building and construction materials
10-14 when the contract pursuant to which the materials are
10-15 purchased or used was advertised for bid prior to approval
10-16 of the levy of the sales and use tax by the county whose
10-17 geographical boundary is conterminous with that of the
10-18 special district and the contract was entered into as a
10-19 result of a bid actually submitted in response to the
10-20 advertisement prior to approval of the levy of the sales
10-21 and use tax.
10-22 48-8-109. (Index)
10-23 The commissioner shall have the power and authority to
10-24 promulgate such rules and regulations as shall be
10-25 necessary for the effective and efficient administration
10-26 and enforcement of the collection of the sales and use tax
10-27 authorized to be imposed by this article."
SECTION 2.
10-28 This Act shall become effective upon its approval by the
10-29 Governor or upon its becoming law without such approval.
SECTION 3.
10-30 All laws and parts of laws in conflict with this Act are
10-31 repealed.
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Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97