HB 419 - Excise tax; hotels/motels; expenditure requirements
Georgia House of Representatives - 1995/1996 Sessions
HB 419 - Excise tax; hotels/motels; expenditure requirements
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9
1. Smith 174th 2. Watson 139th 3. Williams 63rd
House Comm: Ind / W&M Senate Comm: EDTCA /
House Vote: Yeas 173 Nays 0 Senate Vote: Yeas 50 Nays 0
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House Action Senate
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1/26/95 Read 1st Time 3/7/95
1/27/95 Read 2nd Time 3/10/95
3/1/95 Favorably Reported 3/9/95
Sub Committee Amend/Sub
1/31/95 Recommitted
3/7/95 Read 3rd Time 3/14/95
3/7/95 Passed/Adopted 3/14/95
CS Comm/Floor Amend/Sub FA
3/15* Amend/Sub Agreed To 3/17*
4/5/95 Sent to Governor
4/14/95 Signed by Governor
324 Act/Veto Number
4/14/95 Effective Date
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Withdrawn and Recommitted
Immediately Transmitted to the Senate
House Agrees to Senate Amendment as Amended by House
Senate Agrees to House Amendment to Senate Amendment
Code Sections amended: 48-13-51
HB 419 HB 419/AP
H. B. No. 419 (AS PASSED HOUSE AND SENATE)
By: Representatives Smith of the 174th, Watson of the 139th
and Williams of the 63rd
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Article 3 of Chapter 13 of Title 48 of the Official
1- 2 Code of Georgia Annotated, relating to county and municipal
1- 3 excise tax levies on charges to the public for rooms,
1- 4 lodgings, and accommodations, so as to provide additional
1- 5 authorization with certain conditions for certain counties
1- 6 and municipalities to levy such tax; to provide for
1- 7 requirements and limitations with respect thereto; to change
1- 8 certain provisions relating to the authorized purposes for
1- 9 which certain of such funds may be expended; to change
1-10 certain provisions relating to entities with whom certain
1-11 contracts for the expenditure of such funds may be entered
1-12 into; to change certain definitions; to provide for related
1-13 matters; to provide an effective date; to repeal conflicting
1-14 laws; and for other purposes.
1-15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1-16 Article 3 of Chapter 13 of Title 48 of the Official Code of
1-17 Georgia Annotated, relating to county and municipal excise
1-18 tax levies on charges to the public for rooms, lodgings, and
1-19 accommodations, is amended by striking paragraphs (1) and
1-20 (2) of subsection (a) of Code Section 48-13-51, relating to
1-21 the levy and collection of certain excise taxes, and
1-22 inserting in their places new paragraphs (1) and (2) to read
1-23 as follows:
1-24 "(a)(1) The governing authority of each municipality in
1-25 this state may levy and collect an excise tax upon the
1-26 furnishing for value to the public of any room or rooms,
1-27 lodgings, or accommodations furnished by any person or
1-28 legal entity licensed by, or required to pay business or
1-29 occupation taxes to, the municipality for operating a
1-30 hotel, motel, inn, lodge, tourist camp, tourist cabin,
1-31 or any other place in which rooms, lodgings, or
1-32 accommodations are regularly furnished for value.
1-33 Within the territorial limits of the special district
1-34 located within the county, each county in this state may
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2- 1 levy and collect an excise tax upon the furnishing for
2- 2 value to the public of any room or rooms, lodgings, or
2- 3 accommodations furnished by any person or legal entity
2- 4 licensed by, or required to pay business or occupation
2- 5 taxes to, the county for operating within the special
2- 6 district a hotel, motel, inn, lodge, tourist camp,
2- 7 tourist cabin, or any other place in which rooms,
2- 8 lodgings, or accommodations are regularly furnished for
2- 9 value. No tax shall be levied as provided in this Code
2-10 section upon the fees or charges for any rooms,
2-11 lodgings, or accommodations furnished for a period of
2-12 more than ten consecutive days or for use as meeting
2-13 rooms. No tax shall be levied as provided in this Code
2-14 section upon the fees or charges for any rooms,
2-15 lodgings, or accommodations furnished for a period of
2-16 one or more days for use by Georgia state or local
2-17 government officials or employees when traveling on
2-18 official business. Except as provided in paragraphs
2-19 (3), (3.1), (3.2), (3.3), (3.4), (4), (4.1), (5), and
2-20 (5.1) of this subsection, no tax levied pursuant to this
2-21 Code section shall be levied or collected at a rate
2-22 exceeding 3 percent of the charge to the public for the
2-23 furnishings.
2-24 (2) A county or municipality levying a tax as provided
2-25 in paragraph (1) of this subsection shall in each fiscal
2-26 year beginning on or after July 1, 1987, expend for the
2-27 purpose of promoting tourism, conventions, and trade
2-28 shows a percentage of the total taxes collected under
2-29 this Code section which is not less than the percentage
2-30 of such tax collections expended for such purposes
2-31 during the immediately preceding fiscal year. In
2-32 addition, if during such immediately preceding fiscal
2-33 year any portion of such tax receipts was expended for
2-34 such purposes through a grant to or a contract or
2-35 contracts with the state, a department of state
2-36 government, a state authority, or a private sector
2-37 nonprofit organization, then in each fiscal year
2-38 beginning on or after July 1, 1987, at least the same
2-39 percentage shall be expended through a contract or
2-40 contracts with one or more such entities for the purpose
2-41 of promoting tourism, conventions, and trade shows. The
2-42 expenditure requirements of this paragraph shall cease
2-43 to apply to a county or municipality which levies a tax
2-44 at a rate in excess of 3 percent, as authorized under
2-45 paragraphs (3), (3.1), (3.2), (3.3), (3.4), (4), (4.1),
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3- 1 (5), and (5.1) of this subsection; and in such case the
3- 2 expenditure requirements of such paragraph of this
3- 3 subsection pursuant to which such tax is levied shall
3- 4 apply instead."
SECTION 2.
3- 5 Said article is further amended by adding new paragraphs
3- 6 immediately following paragraph (3.1) of subsection (a) of
3- 7 Code Section 48-13-51, relating to the levy and collection
3- 8 of certain excise taxes, to be designated paragraphs (3.2),
3- 9 (3.3) and (3.4), to read as follows:
3-10 "(3.2) Notwithstanding the provisions of paragraph (1)
3-11 of this subsection, a county (within the territorial
3-12 limits of the special district located within the
3-13 county) and the municipalities within a county in which
3-14 a trade and convention center facility is substantially
3-15 funded by a special county 1 percent sales and use tax
3-16 authorized by Article 3 of Chapter 8 of this title, as
3-17 amended, which tax was levied prior to January 1, 1994,
3-18 and is substantially funded by a state grant or grants
3-19 authorized on or before January 1, 1996, may levy a tax
3-20 under this Code section at a rate of 6 percent. A
3-21 county or municipality levying a tax pursuant to this
3-22 paragraph shall expend (in each fiscal year during which
3-23 the tax is collected under this paragraph (3.2)) an
3-24 amount equal to 33 1/3 percent of the total taxes
3-25 collected at the rate of 6 percent for the purpose of
3-26 promoting tourism, conventions, and trade shows under a
3-27 contract with a private sector nonprofit organization as
3-28 defined in subparagraph (A) of paragraph (8) of this
3-29 subsection. In addition to the amounts required to be
3-30 expended above, a county or municipality levying a tax
3-31 pursuant to this paragraph shall further expend (in each
3-32 fiscal year during which the tax is collected under this
3-33 paragraph (3.2)) an amount equal to 16 2/3 percent of
3-34 the total taxes collected at the rate of 6 percent for
3-35 the purpose of either marketing or operating trade and
3-36 convention facilities. Marketing and operating
3-37 expenditures may include a preopening marketing program
3-38 for such a facility and an escrow account accrued prior
3-39 to opening such facility to cover operating expenses to
3-40 be incurred after the opening of such a facility. In
3-41 the event such facility is not constructed, collected
3-42 funds may be used for any lawful purpose relating to
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4- 1 tourism by the county or municipality levying a tax
4- 2 pursuant to this paragraph.
4- 3 (3.3) Notwithstanding the provisions of paragraph (1) of
4- 4 this subsection, a county (within the territorial limits
4- 5 of the special district located within the county) and
4- 6 the municipalities within a county in which a trade and
4- 7 convention center facility is substantially funded by a
4- 8 special county 1 percent sales and use tax authorized by
4- 9 Article 3 of Chapter 8 of this title, as amended, which
4-10 tax was levied prior to January 1, 1994, and which
4-11 facility was completed and in operation prior to
4-12 December 31, 1994, and which county and municipalities
4-13 have not previously levied a 6 percent tax under
4-14 paragraph (4) of this subsection, may levy a tax under
4-15 this Code section at a rate of 6 percent. A county or
4-16 municipality levying a tax pursuant to this paragraph
4-17 shall expend for the purpose of promoting tourism,
4-18 conventions, and trade shows in each fiscal year during
4-19 which the tax is collected under this paragraph (3.3) an
4-20 amount which is equal to (A) an amount which is not less
4-21 than the amount which would have been spent if the tax
4-22 rate had not been increased to 6 percent and if the same
4-23 percentage of tax collections expended for such purposes
4-24 during the immediately preceding fiscal year were
4-25 expended for such purposes during the current fiscal
4-26 year plus (B) an amount equal to 16 2/3 percent of the
4-27 total taxes collected at the rate of 6 percent.
4-28 (3.4) Notwithstanding the provisions of paragraph (1) of
4-29 this subsection, a county (within the territorial limits
4-30 of the special district located within the county) and
4-31 municipalities within a county in which community
4-32 auditorium or theater facilities owned and operated by
4-33 the municipality have been renovated which renovations
4-34 are completed substantially on or before July 1, 1995,
4-35 and which county and municipalities have not previously
4-36 levied a 6 percent tax under paragraph (4) of this
4-37 subsection may levy a tax under this Code section at a
4-38 rate of 6 percent. A county or municipality levying a
4-39 tax pursuant to this paragraph shall expend (in each
4-40 fiscal year during which the tax is collected under this
4-41 paragraph (3.4)) an amount equal to 33 1/3 percent of
4-42 the total taxes collected under this subparagraph for
4-43 the purpose of promoting tourism, conventions, and trade
4-44 shows under a contract with a private sector nonprofit
4-45 organization defined in subparagraph (A) of paragraph
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5- 1 (8) of this subsection. In addition to the amounts
5- 2 required to be expended above, a county or municipality
5- 3 levying a tax pursuant to this paragraph shall further
5- 4 expend (in each fiscal year during which the tax is
5- 5 collected under this paragraph (3.4)) an amount equal to
5- 6 16 2/3 percent of the total taxes collected at the rate
5- 7 of 6 percent for the purpose of either marketing or
5- 8 operating community auditorium or theater facilities or
5- 9 community convention or trade center of which the
5-10 theater or auditorium is a part. Marketing and
5-11 operating expenditures may include a preopening
5-12 marketing program for such facilities and an escrow
5-13 account accrued prior to opening such facilities to
5-14 cover operating expenses to be incurred after the
5-15 opening of such facilities."
SECTION 2A.
5-16 Said article is further amended by striking paragraph (5.1)
5-17 of subsection (a) of Code Section 48-13-51, relating to
5-18 county and municipal excise tax levies on charges to the
5-19 public for rooms, lodgings, and accommodations, and
5-20 inserting in its place a new paragraph (5.1) to read as
5-21 follows:
5-22 "(5.1) Notwithstanding any other provision of this
5-23 subsection, a county (within the the territorial limits
5-24 of the special district located within the county) and
5-25 the municipalities within a county in which a coliseum
5-26 and exhibit hall authority has been created by local Act
5-27 of the General Assembly for a county and one or more
5-28 municipalities therein, and which local coliseum and
5-29 exhibit hall authority is in existence on or before
5-30 January 1, 1991, and which local coliseum and exhibit
5-31 hall authority has not constructed or operated any
5-32 facility before January 1, 1991, may levy a tax under
5-33 this Code section at a rate of 8 percent. A county or
5-34 municipality levying a tax pursuant to this paragraph
5-35 shall expend (in each fiscal year during which the tax
5-36 is collected under this paragraph (5.1)) an amount equal
5-37 to at least 62 1/2 percent of the total taxes collected
5-38 at the rate of 8 percent for the purpose of: (A)
5-39 promoting tourism, conventions, and trade shows; (B)
5-40 funding, supporting, acquiring, constructing,
5-41 renovating, improving, and equipping buildings,
5-42 structures, and facilities, including, but not limited
5-43 to, a coliseum, exhibit hall, conference center,
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6- 1 performing arts center, or any combination thereof, for
6- 2 convention, trade show, athletic, musical, theatrical,
6- 3 cultural, civic, and performing arts purposes and other
6- 4 events and activities for similar and related purposes,
6- 5 acquiring the necessary property therefor, both real and
6- 6 personal, and funding all expenses incident thereto, and
6- 7 supporting, maintaining, and promoting such facilities
6- 8 owned, operated, or leased by or to the local coliseum
6- 9 and exhibit hall authority or a downtown development
6-10 authority; or (C) for some combination of such purposes;
6-11 provided, however, that at least 50 percent of the total
6-12 taxes collected at the rate of 8 percent shall be
6-13 expended for the purposes specified in subparagraph (B)
6-14 of this paragraph (5.1). Amounts so expended shall be
6-15 expended only through a contract or contracts with the
6-16 state, a department of state government, a state
6-17 authority, a convention and visitors bureau authority
6-18 created by local Act of the General Assembly for a
6-19 municipality, a local coliseum and exhibit hall
6-20 authority, a downtown development authority, or a
6-21 private sector nonprofit organization or through a
6-22 contract or contracts with some combination of such
6-23 entities, notwithstanding any provision of paragraph (8)
6-24 of this subsection to the contrary. The aggregate
6-25 amount of all excise taxes imposed under this paragraph
6-26 (5.1) and all sales and use taxes, and other taxes
6-27 imposed by a county or municipality, or both, shall not
6-28 exceed 13 percent. Any tax levied pursuant to this
6-29 paragraph (5.1) shall terminate not later than December
6-30 31, 2028, provided that during any period during which
6-31 there remains outstanding any obligation issued to fund
6-32 a facility as contemplated by this paragraph (5.1),
6-33 secured in whole or in part by a pledge of a tax
6-34 authorized under this Code section, the powers of the
6-35 counties and municipalities to impose and distribute the
6-36 tax imposed by this paragraph (5.1) shall not be
6-37 diminished or impaired by the state and no county or
6-38 municipality levying the tax imposed by this paragraph
6-39 (5.1) shall cease to levy the tax in any manner that
6-40 will impair the interests and rights of the holder of
6-41 any such obligation. This proviso shall be for the
6-42 benefit of the holder of any such obligation and, upon
6-43 the issuance of any such obligation by a local coliseum
6-44 and exhibit hall authority or a downtown development
6-45 authority, shall constitute a contract with the holder
6-46 of such obligation. Notwithstanding any other provision
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7- 1 of this Code section to the contrary, as used in this
7- 2 paragraph (5.1), the term: 'fund' or 'funding' shall
7- 3 include the cost and expense of all things deemed
7- 4 necessary by a local coliseum and exhibit hall authority
7- 5 or a downtown development authority for the construction
7- 6 and operation of a facility or facilities including but
7- 7 not limited to the study, operation, marketing,
7- 8 acquisition, construction, financing, including the
7- 9 payment of principal and interest on any obligation of
7-10 the local coliseum and exhibit hall authority or the
7-11 downtown development authority and any obligation of the
7-12 local coliseum and exhibit hall authority or the
7-13 downtown development authority to refund any prior
7-14 obligation of the local coliseum and exhibit hall
7-15 authority or the downtown development authority,
7-16 development, extension, enlargement, or improvement of
7-17 land, waters, property, streets, highways, buildings,
7-18 structures, equipment, or facilities and the repayment
7-19 of any obligation incurred by an authority in connection
7-20 therewith; 'obligation' shall include bonds, notes, or
7-21 any instrument creating an obligation to pay or reserve
7-22 moneys and having an initial term of not more than 37
7-23 years; and 'facility' or 'facilities' shall mean any of
7-24 the buildings, structures, and facilities described in
7-25 subparagraph (B) of this paragraph (5.1) and any
7-26 associated parking areas or improvements originally
7-27 owned or operated incident to the ownership or operation
7-28 of such facility used for any purpose or purposes
7-29 specified in subparagraph (B) of this paragraph (5.1) by
7-30 a local coliseum and exhibit hall authority or a
7-31 downtown development authority; and 'downtown
7-32 development authority' shall mean a downtown development
7-33 authority created by local Act of the General Assembly
7-34 for a municipality pursuant to a local constitutional
7-35 amendment."
SECTION 3.
7-36 Said article is further amended by striking paragraph (6) of
7-37 subsection (a) of Code Section 48-13-51, relating to the
7-38 levy and collection of certain excise taxes, and inserting
7-39 in its place a new paragraph (6) to read as follows:
7-40 "(6) At no time shall a county or municipality levy a
7-41 tax under more than one paragraph of this subsection.
7-42 Following the termination of a tax under paragraph
7-43 (3.1), (3.2), (3.3), (3.4), (4.1), (5), or (5.1) of this
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8- 1 subsection, any county or municipality which has levied
8- 2 a tax pursuant to paragraph (3.1), (3.2), (3.3), (3.4),
8- 3 (4.1), (5), or (5.1) of this subsection shall be
8- 4 authorized to levy a tax in the manner and at the rate
8- 5 authorized by either paragraph (1), paragraph (3), or
8- 6 paragraph (4) of this subsection but shall not
8- 7 thereafter be authorized to again levy a tax under
8- 8 paragraph (3.1), (3.2), (3.3), (3.4), (4.1), (5), or
8- 9 (5.1) of this subsection."
SECTION 4.
8-10 Said article is further amended by striking paragraphs (9)
8-11 and (10) of subsection (a) of Code Section 48-13-51,
8-12 relating to the levy and collection of certain excise taxes,
8-13 and inserting in their places new paragraphs (9) and (10) to
8-14 read as follows:
8-15 "(9)(A) A county or municipality imposing a tax under
8-16 paragraph (1), (2), (3), (3.1), (3.2), (3.3), (3.4),
8-17 (4), (4.1), (5), or (5.1) of this subsection shall
8-18 prior to the imposition of the tax (if the tax is
8-19 imposed on or after July 1, 1990) and prior to each
8-20 fiscal year thereafter in which the tax is imposed
8-21 adopt a budget plan specifying how the expenditure
8-22 requirements of this Code section will be met. Prior
8-23 to the adoption of such budget plan, the county or
8-24 municipality shall obtain from the authorized entity
8-25 with which it proposes to contract to meet the
8-26 expenditure requirements of this Code section a budget
8-27 for expenditures to be made by such organization; and
8-28 such budget shall be made a part of the county or
8-29 municipal budget plan.
8-30 (B) The determination as to whether a county or
8-31 municipality has complied with the expenditure
8-32 requirements of paragraph (2), (3), (3.1), (3.2),
8-33 (3.3), (3.4), (4), (4.1), (5), or (5.1) of this
8-34 subsection shall be made for each fiscal year
8-35 beginning on or after July 1, 1987, as of the end of
8-36 each fiscal year, shall be prominently reflected in
8-37 the audit required under Code Section 36-81-7, and
8-38 shall be determined by: (i) calculating the amount of
8-39 funds expended or contractually committed for
8-40 expenditure as provided in paragraph (2), (3), (3.1),
8-41 (3.2), (3.3), (3.4), (4), (4.1), (5), or (5.1) of this
8-42 subsection, whichever is applicable, during the fiscal
8-43 year; and (ii) expressing such amount as a percentage
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9- 1 of tax receipts under this Code section during such
9- 2 fiscal year. A county or municipality contractually
9- 3 expending funds to meet the expenditure requirements
9- 4 of paragraph (2), (3), (3.1), (3.2), (3.3), (3.4),
9- 5 (4), (4.1), (5), or (5.1) of this subsection shall
9- 6 require the contracting party to provide audit
9- 7 verification that the contracting party makes use of
9- 8 such funds in conformity with the requirements of this
9- 9 subsection.
9-10 (10) Nothing in this article shall be construed to limit
9-11 the power of a county or municipality to expend more
9-12 than the required amounts, or all, of the total taxes
9-13 collected under this Code section for the purposes
9-14 described in paragraph (2), (3), (3.1), (3.2), (3.3),
9-15 (3.4), (4), (4.1), (5), or (5.1) of this subsection."
SECTION 5.
9-16 This Act shall become effective upon its approval by the
9-17 Governor or upon its becoming law without such approval.
SECTION 6.
9-18 All laws and parts of laws in conflict with this Act are
9-19 repealed.
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