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| HB 14 - Sales tax; educational purposes; multiple county school district |
First Reader Summary
A BILL to amend Article 4 of Chapter 8 of Title 48 of the
Official Code of Georgia Annotated, relating to the local option
sales tax for educational purposes, so as to further define and
implement procedures with respect to concurrent resolution
requirements; and for other purposes.
| House
| Action
| Senate
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| 1/13/97
| Read 1st Time
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| 1/14/97
| Read 2nd Time
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| 2/7/97
| Favorably Reported
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| Sub
| Committee Amend/Sub
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| 3/28/97
| Recommitted
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HB 14 LC 18 8059S
The House Committee on Ways and Means offers the
following substitute to HB 14:
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 taxation, so as
1- 3 to further define and implement procedures with respect to
1- 4 imposition, collection, and administration of the local
1- 5 option sales tax for educational purposes; to provide for
1- 6 legislative intent; to provide for concurrent resolution
1- 7 requirements; to provide for comprehensive imposition,
1- 8 reimposition, administration, and collection requirements
1- 9 and procedures; to provide for tax returns; to provide for
1-10 distribution of proceeds; to provide for termination; to
1-11 provide for credits; to provide for nonimposition with
1-12 respect to certain property; to provide for applicability to
1-13 certain building and construction materials; to provide for
1-14 powers, duties, and authority of the state revenue
1-15 commissioner with respect to the foregoing; to provide for
1-16 applicability of certain tax limitations; to provide for
1-17 accounting of and use of proceeds; to change certain
1-18 provisions regarding the priority of crediting certain
1-19 proceeds; to provide an effective date; to repeal
1-20 conflicting laws; and for other purposes.
1-21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-22 SECTION 1.
1-23 Chapter 8 of Title 48 of the Official Code of Georgia
1-24 Annotated, relating to the sales and use taxation, is
1-25 amended by striking Article 4, relating to the local option
1-26 sales and use tax for educational purposes, which reads as
1-27 follows:
1-28 "48-8-140.
1-29 This article is enacted pursuant to the authority of
1-30 Article VIII, Section VI, Paragraph IV of the Constitution
1-31 of Georgia and it is the intent of the General Assembly in
1-32 the enactment of this article to further define and
1-33 implement such provision of the Constitution.
-1-
2- 1 48-8-141.
2- 2 Except as otherwise expressly provided in Article VIII,
2- 3 Section VI, Paragraph IV of the Constitution of Georgia,
2- 4 the sales tax for educational purposes which may be levied
2- 5 by a board of education of a county school district or
2- 6 concurrently by the board of education of a county school
2- 7 district and the board of education of each independent
2- 8 school district located within such county, shall be
2- 9 imposed, levied, and collected by such board or boards of
2-10 education in the same manner as the special county 1
2-11 percent sales and use tax provided for under Article 3 of
2-12 this chapter and the provisions of Article 3 of this
2-13 chapter shall apply equally to such board or boards of
2-14 education.
2-15 48-8-142.
2-16 If general obligation debt is to be issued in conjunction
2-17 with the imposition of the sales tax for educational
2-18 purposes authorized by Article VIII, Section VI, Paragraph
2-19 IV of the Constitution, the resolution or concurrent
2-20 resolutions imposing such tax shall specify the principal
2-21 amount of the debt to be issued, the purpose for which the
2-22 debt is to be issued, the interest rate or rates or the
2-23 maximum interest rate or rates which such debt is to bear,
2-24 and the amount of principal to be paid in each year during
2-25 the life of the debt. If such general obligation debt is
2-26 to be issued, the ballot shall have written or printed
2-27 thereon, in addition to the descriptions required by
2-28 Article VIII, Section VI, Paragraph IV(c) of the
2-29 Constitution, the following:
2-30 'If imposition of the tax is approved by the voters,
2-31 such vote shall also constitute approval of the issuance
2-32 of general obligation debt of ______________________ in
2-33 the principal amount of $_________________ for the above
2-34 purpose.'",
2-35 and inserting in its place a new Article 4 to read as
2-36 follows:
2-37 48-8-140.
2-38 This article is enacted pursuant to the authority of
2-39 Paragraph IV of Section VI of Article VIII of the
2-40 Constitution of Georgia, and it is the intent of the
2-41 General Assembly in the enactment of this article to
-2-
3- 1 further define and implement such provision of the
3- 2 Constitution. It is also the intent of the General
3- 3 Assembly, in order to provide clarity and ease of
3- 4 administration, to integrate in this article both the key
3- 5 provisions of Paragraph IV of Section VI of Article VIII
3- 6 of the Constitution of Georgia and the provisions of
3- 7 Article 3 of this chapter, as amended, relating to the
3- 8 special county 1 percent sales and use tax, which were
3- 9 made applicable to this tax by said constitutional
3-10 provision.
3-11 48-8-141.
3-12 When the imposition of a local sales and use tax for
3-13 educational purposes is authorized according to the
3-14 procedures provided in this article, the board of
3-15 education of each school district in a county in which no
3-16 independent school district is located may by resolution
3-17 and the board of education of each county school district
3-18 and the board of education of each independent school
3-19 district located within such county may by concurrent
3-20 resolutions impose a sales and use tax for educational
3-21 purposes of such school districts, subject to the approval
3-22 by a majority of the qualified voters residing within the
3-23 limits of the local taxing jurisdiction voting in a
3-24 referendum thereon. This tax shall be at the rate of 1
3-25 percent and shall be imposed for a period of time not to
3-26 exceed five years. In all other respects, except as to
3-27 rate and except as otherwise provided in this article,
3-28 this tax shall correspond to the tax imposed by Article 1
3-29 of this chapter, as amended. No item or transaction which
3-30 is not subject to taxation under Article 1 of this chapter
3-31 shall be subject to a tax imposed under this article,
3-32 except that a tax imposed under this article shall apply
3-33 to sales of motor fuels as that term is defined by Code
3-34 Section 48-9-2, as amended, and shall be applicable to the
3-35 sale and use of food and beverages, notwithstanding the
3-36 provisions of any sales and use tax exemption contained in
3-37 this chapter or elsewhere with respect to the sale or use
3-38 of food and beverages.
3-39 48-8-142.
3-40 In the event an independent school district is located in
3-41 more than one county:
3-42 (1) A concurrent resolution calling for the imposition
3-43 of such tax shall be required by the board of education
-3-
4- 1 of the county in which the majority of the territory of
4- 2 such independent school district is located;
4- 3 (2) The board of education of the county in which less
4- 4 than a majority of the territory of such independent
4- 5 school district is located shall not be subject to such
4- 6 concurrent resolution requirement and shall be
4- 7 authorized to call for the imposition of such tax solely
4- 8 upon the adoption of a resolution by such county board
4- 9 of education; and
4-10 (3) Such tax shall be imposed only in that portion of
4-11 such independent school district which is located in the
4-12 county in which the tax is imposed.
4-13 48-8-143.
4-14 The purpose or purposes for which the proceeds of the tax
4-15 are to be used and may be expended are:
4-16 (1) Capital outlay projects for educational purposes;
4-17 (2) The retirement of previously incurred general
4-18 obligation debt with respect only to capital outlay
4-19 projects of the school system; provided, however, that
4-20 the tax authorized under this article shall only be
4-21 expended for the purpose authorized under this paragraph
4-22 if all ad valorem property taxes levied or scheduled to
4-23 be levied prior to the maturity of any such then
4-24 outstanding general obligation debt to be retired by the
4-25 proceeds of the tax imposed under this article shall be
4-26 reduced by a total amount equal to the total amount of
4-27 proceeds of the tax imposed under this article to be
4-28 applied to retire such bonded indebtedness. In the
4-29 event of failure to comply with the requirements of this
4-30 paragraph, as certified by the commissioner, no further
4-31 funds shall be expended under this paragraph by the
4-32 county board of education or independent board of
4-33 education imposing the tax, and all such funds shall be
4-34 maintained in a separate, restricted account and held
4-35 solely for expenditure for future capital outlay
4-36 projects for educational purposes; or
4-37 (3) A combination of the foregoing.
4-38 48-8-144.
4-39 (a) Each board of education which votes to impose the tax
4-40 authorized by this article shall notify the county
4-41 election superintendent for the county in which the tax is
-4-
5- 1 to be imposed by forwarding to the superintendent a copy
5- 2 of the resolution of the board of education calling for
5- 3 the imposition of the tax. Such resolution or resolutions
5- 4 shall describe:
5- 5 (1) The specific capital outlay project or projects to
5- 6 be funded, or the specific debt to be retired, or both,
5- 7 if applicable;
5- 8 (2) The maximum cost of such project or projects and, if
5- 9 applicable, the maximum amount of debt to be retired,
5-10 which cost and amount of debt shall also be the actual
5-11 amount of net proceeds to be raised by the tax;
5-12 (3) The maximum period of time, to be stated in calendar
5-13 years or calendar quarters and not to exceed five years;
5-14 and
5-15 (4) In all cases in which general obligation debt is to
5-16 be issued in conjunction with the tax, the resolution
5-17 shall specify the principal amount of the debt to be
5-18 issued, the purpose for which the debt is to be issued,
5-19 the interest rate or rates or the maximum interest rate
5-20 or rates which such debt is to bear, and the amount of
5-21 principal to be paid in each year during the life of the
5-22 debt.
5-23 (b) Upon receipt of the resolution, the election
5-24 superintendent shall issue the call for an election for
5-25 the purpose of submitting the question of the imposition
5-26 of the tax to the voters of the affected county. The
5-27 election superintendent shall issue the call and shall
5-28 conduct the election on a date and in the manner
5-29 authorized under Code Section 21-2-540, as amended. The
5-30 election superintendent shall cause the date and purpose
5-31 of the election to be published once a week for four weeks
5-32 immediately preceding the date of the election in the
5-33 official organ of the county or counties. If general
5-34 obligation debt is to be issued in conjunction with the
5-35 imposition of the tax, the notice published by the
5-36 election superintendent shall also include, in such form
5-37 as may be specified by the board of education, the
5-38 principal amount of the debt, the purpose for which the
5-39 debt is to be issued, the rate or rates of interest or the
5-40 maximum rate or rates of interest the debt will bear, and
5-41 the amount of principal to be paid in each year during the
5-42 life of the debt; and such publication of notice by the
5-43 election superintendent shall take the place of the notice
-5-
6- 1 otherwise required by Code Section 36-80-11, as amended,
6- 2 or by subsection (b) of Code Section 36-82-1, as amended,
6- 3 which notice shall not be required.
6- 4 (c)(1) If the tax is to be imposed for a capital outlay
6- 5 project or projects for educational purposes or for the
6- 6 retirement of previously incurred general obligation
6- 7 debt with respect to capital outlay projects of the
6- 8 school system, or for a combination of such purposes,
6- 9 the ballot shall have written or printed thereon the
6-10 following:
6-11 '( ) YES Shall a 1 percent sales and use tax for
6-12 educational purposes be imposed in
6-13 ( ) NO ________ County for a period of time not
6-14 to exceed ________ and for the raising of
6-15 not more than $________ for the purpose of
6-16 _________?'
6-17 (2) If debt is to be issued, the ballot shall also have
6-18 written or printed thereon, following the language
6-19 specified by paragraph (1) of this subsection, the
6-20 following:
6-21 'If imposition of the tax is approved by the voters,
6-22 such vote shall also constitute approval of the
6-23 issuance of general obligation debt of ________ in the
6-24 principal amount of $________ for the above purpose.'
6-25 (d) All persons desiring to vote in favor of imposing the
6-26 tax shall vote 'Yes,' and all persons opposed to levying
6-27 the tax shall vote 'No.' If more than one-half of the
6-28 votes cast are in favor of imposing the tax then the tax
6-29 shall be imposed as provided in this article; otherwise
6-30 the tax shall not be imposed and the question of imposing
6-31 the tax shall not again be submitted to the voters until
6-32 after 12 months immediately following the month in which
6-33 the election was held; provided, however, that if an
6-34 election date authorized under Code Section 21-2-540, as
6-35 amended, occurs during the twelfth month immediately
6-36 following the month in which such election was held, the
6-37 question of imposing the tax may be submitted to the
6-38 voters of the county on such date. The election
6-39 superintendent shall hold and conduct the election under
6-40 the same rules and regulations as govern special
6-41 elections. The superintendent shall canvass the returns,
6-42 declare the result of the election, and certify the result
-6-
7- 1 to the Secretary of State and to the commissioner. The
7- 2 expense of the election shall be paid from county funds.
7- 3 (e)(1) If the proposal includes the authority to issue
7- 4 general obligation debt and if more than one-half of the
7- 5 votes cast are in favor of the proposal, then the
7- 6 authority to issue such debt in accordance with Article
7- 7 IX, Section V, Paragraph I of the Constitution is given
7- 8 to the school system; otherwise such debt shall not be
7- 9 issued. If the authority to issue such debt is so
7-10 approved by the voters, then such debt may be issued
7-11 without further approval by the voters.
7-12 (2) If the issuance of general obligation debt is
7-13 included and approved as provided by this article, then
7-14 the school system may incur such debt either through the
7-15 issuance and validation of general obligation bonds or
7-16 through the execution of a promissory note or notes or
7-17 other instrument or instruments. If such debt is
7-18 incurred through the issuance of general obligation
7-19 bonds, such bonds and their issuance and validation
7-20 shall be subject to Articles 1 and 2 of Chapter 82 of
7-21 Title 36, as amended, except as specifically provided
7-22 otherwise in this article. If such debt is incurred
7-23 through the execution of a promissory note or notes or
7-24 other instrument or instruments, no validation
7-25 proceedings shall be necessary and such debt shall be
7-26 subject to Code Sections 36-80-10 through 36-80-14, as
7-27 amended, except as specifically provided otherwise in
7-28 this article. In either event, such general obligation
7-29 debt shall be payable first from the separate account in
7-30 which are placed the proceeds received by the board of
7-31 education from the tax authorized by this article. Such
7-32 general obligation debt shall, however, constitute a
7-33 pledge of the full faith, credit, and taxing power of
7-34 the board of education, and any liability on such debt
7-35 which is not satisfied from the proceeds of the tax
7-36 authorized by this article shall be satisfied from the
7-37 general funds of the board of education.
7-38 48-8-145.
7-39 (a) With respect to any consolidated government created by
7-40 the consolidation of a county and one or more
7-41 municipalities, the provisions of this Code section shall
7-42 control over any conflicting provisions of this article.
-7-
8- 1 (b) The tax authorized by this article, if imposed by the
8- 2 board or boards of education in or for a consolidated
8- 3 government, shall not be subject to any maximum period of
8- 4 time for which the tax may be levied if general obligation
8- 5 debt is to be issued in conjunction with the imposition of
8- 6 the tax. In such case the resolution calling for the
8- 7 imposition of the tax shall not be required to state a
8- 8 maximum period of time for which the tax is to be levied;
8- 9 and the language relating to the maximum period of time
8-10 for which the tax is to be levied shall be omitted from
8-11 the ballot. The resolution calling for the imposition of
8-12 the tax shall state the maximum amount of revenue to be
8-13 raised by the tax and the other information required by
8-14 paragraph (4) of subsection (a) of Code Section 48-8-144,
8-15 as amended, and the tax shall terminate as provided in
8-16 paragraph (1) or (3) of subsection (b) of Code Section
8-17 48-8-146, as amended.
8-18 (c) In all respects not otherwise provided for in this
8-19 Code section, the levy of a tax under this article by the
8-20 board of education of a consolidated government shall be
8-21 in the same manner as the levy of the tax by the board of
8-22 education of any other county.
8-23 48-8-146.
8-24 (a) If the imposition of the tax is approved by the
8-25 voters, the tax shall be imposed on the first day of the
8-26 next succeeding calendar quarter which begins more than 80
8-27 days after the date of the election at which the tax was
8-28 approved by the voters. With respect to services which
8-29 are regularly billed on a monthly basis, however, the
8-30 resolution shall become effective with respect to and the
8-31 tax shall apply to services billed on or after the
8-32 effective date specified in the previous sentence.
8-33 (b) The tax shall cease to be imposed on the earliest of
8-34 the following dates:
8-35 (1) If the resolution calling for the imposition of the
8-36 tax provided for the issuance of general obligation debt
8-37 and such debt is the subject of validation proceedings,
8-38 as of the end of the first calendar quarter ending more
8-39 than 80 days after the date on which a court of
8-40 competent jurisdiction enters a final order denying
8-41 validation of such debt;
8-42 (2) On the final day of the maximum period of time
8-43 specified for the imposition of the tax; or
-8-
9- 1 (3) As of the end of the calendar quarter during which
9- 2 the commissioner determines that the tax will have
9- 3 raised revenues sufficient to provide to the board of
9- 4 education net proceeds equal to or greater than the
9- 5 amount specified as the maximum amount of net proceeds
9- 6 to be raised by the tax.
9- 7 (c)(1) No board of education shall impose at any time
9- 8 more than a single 1 percent tax under this article, and
9- 9 under no circumstances shall more than a single 1
9-10 percent tax under this article be imposed in one county.
9-11 (2) Proceedings for the reimposition of such tax shall
9-12 be in the same manner as proceedings for the initial
9-13 imposition of the tax, but the newly authorized tax
9-14 shall not be imposed until the expiration of the tax
9-15 then in effect. The board of education of a school
9-16 district in a county wherein a tax authorized by this
9-17 article is in effect may, while the tax is in effect,
9-18 adopt a resolution calling for the reimposition of a tax
9-19 as authorized by this article upon the termination of
9-20 the tax then in effect; and a special election may be
9-21 held for this purpose while the tax is in effect. In
9-22 the event of emergency conditions under which a
9-23 referendum cannot be conducted so as to continue the tax
9-24 then in effect without interruption, the commissioner
9-25 may, if feasible administratively, waive the limitations
9-26 of subsection (a) of this Code section to the minimum
9-27 extent necessary so as to permit the reimposition of a
9-28 tax, if otherwise approved as required under this Code
9-29 section, without interruption, upon the expiration of
9-30 the tax then in effect.
9-31 (3) Following the expiration of a tax under this
9-32 article, a board of education may initiate proceedings
9-33 for the reimposition of a tax under this article in the
9-34 same manner as provided in this article for initial
9-35 imposition of such tax.
9-36 48-8-147.
9-37 The tax levied pursuant to this article shall be
9-38 exclusively administered and collected by the commissioner
9-39 for the use and benefit of the board or boards of
9-40 education imposing the tax. Such administration and
9-41 collection shall be accomplished in the same manner and
9-42 subject to the same applicable provisions, procedures, and
9-43 penalties provided in Article 1 of this chapter, as
-9-
10- 1 amended; provided, however, that all moneys collected from
10- 2 each taxpayer by the commissioner shall be applied first
10- 3 to such taxpayer's liability for taxes owed the state; and
10- 4 provided, further, that the commissioner may rely upon a
10- 5 representation by or on behalf of the board of education
10- 6 or the Secretary of State that such a tax has been validly
10- 7 imposed, and the commissioner and the commissioner's
10- 8 agents shall not be liable to any person for collecting
10- 9 any such tax which was not validly imposed. Dealers shall
10-10 be allowed a percentage of the amount of the tax due and
10-11 accounted for and shall be reimbursed in the form of a
10-12 deduction in submitting, reporting, and paying the amount
10-13 due if such amount is not delinquent at the time of
10-14 payment. The deduction shall be at the rate and subject
10-15 to the requirements specified under subsections (b)
10-16 through (f) of Code Section 48-8-50, as amended.
10-17 48-8-148.
10-18 Each sales tax return reporting taxes collected under this
10-19 article shall separately identify the location of each
10-20 retail establishment at which any of the taxes were
10-21 collected and shall specify the amount of sales and the
10-22 amount of taxes collected at each establishment for the
10-23 period covered by the return in order to facilitate the
10-24 determination by the commissioner that all taxes imposed
10-25 by this article are collected and distributed according to
10-26 situs of sale.
10-27 48-4-149.
10-28 (a) The proceeds of the tax collected by the commissioner
10-29 under this article shall be disbursed as soon as
10-30 practicable after collection as follows:
10-31 (1) One percent of the amount collected shall be paid
10-32 into the general fund of the state treasury in order to
10-33 defray the costs of administration; and
10-34 (2) Except for the percentage provided in paragraph (1)
10-35 of this Code section, the remaining proceeds of the tax
10-36 shall be distributed to the board or boards of education
10-37 imposing the tax.
10-38 (b)(1) In the event that there is only one school
10-39 district in a county wherein such tax is levied, the
10-40 board of education of such school district shall, within
10-41 60 days after the date on which the voters approve the
10-42 tax, certify in writing to the commissioner that its
-10-
11- 1 school district is the sole school district levying the
11- 2 tax and entitled to receive the proceeds thereof.
11- 3 (2) In the event that there is more than one school
11- 4 district entitled to receive proceeds of the tax, the
11- 5 board or boards of education imposing the tax shall,
11- 6 within 60 days after the date on which the voters
11- 7 approve the tax, jointly certify in writing to the
11- 8 commissioner the distribution percentages for each
11- 9 school district. Such distribution percentages shall be
11-10 calculated according to the ratio the student enrollment
11-11 in each school district, or portion thereof, bears to
11-12 the total student enrollment of all school districts in
11-13 the county. For the purpose of determining student
11-14 enrollment, student enrollment shall be based on the
11-15 latest full-time equivalent student enrollment count
11-16 available prior to the referendum on imposing the tax.
11-17 (3) In the event another formula for distribution other
11-18 than student enrollment ratio is or is subsequently
11-19 authorized by local law, the boards of education
11-20 imposing the tax shall, within 60 days after the
11-21 effective date of such local law, jointly certify in
11-22 writing to the commissioner the distribution percentages
11-23 for each school district.
11-24 (4) The commissioner shall begin distributing the net
11-25 proceeds of the tax to the board or boards of education
11-26 in accordance with the percentages contained in the
11-27 initial certification. The commissioner shall continue
11-28 to distribute the proceeds of the tax to the board or
11-29 boards of education pursuant to such certification until
11-30 the first day of the next calendar year following the
11-31 month in which the commissioner receives a new
11-32 certification as provided in this Code section, which
11-33 certification shall provide other percentages upon which
11-34 the commissioner shall make the distribution to the
11-35 board or boards of education entitled to the proceeds of
11-36 the tax. At such time, the commissioner shall
11-37 thereafter distribute the proceeds of the tax in
11-38 accordance with the directions of the new certification.
11-39 (5) Proceeds of the tax imposed in a county under this
11-40 article shall be distributed to school districts for
11-41 expenditure only with respect to qualified projects or
11-42 purposes located within that county. In the event an
11-43 independent school district is located in more than one
11-44 county, it shall be required to account separately for
-11-
12- 1 proceeds collected under the tax with respect to each
12- 2 county and shall maintain records adequate to document
12- 3 that taxes collected are distributed only with respect
12- 4 to qualified projects or purposes located within the
12- 5 county in which the tax is imposed.
12- 6 (c) If the certification provided for in subsection (b) of
12- 7 this Code section is not received by the commissioner by
12- 8 the required date, the authority to impose the tax
12- 9 authorized by this article shall cease on the first day of
12-10 the second calendar month following the month in which the
12-11 tax was initially imposed, and the tax shall not be levied
12-12 by the same board or boards of education unless the
12-13 reimposition of the tax is subsequently authorized by a
12-14 new resolution and referendum thereon as provided in this
12-15 article. When the imposition of the tax is so terminated,
12-16 the commissioner shall retain the proceeds of the tax
12-17 which were to be distributed to the board or boards of
12-18 education until he or she receives a certification on
12-19 behalf of each such board of education specifying the
12-20 percentage of the proceeds which each such board of
12-21 education shall receive. If no such certification is
12-22 received by the commissioner within 120 days of the date
12-23 on which the authority to levy the tax was terminated, the
12-24 proceeds shall escheat to the state and the commissioner
12-25 shall transfer the proceeds to the state's general fund.
12-26 48-8-150.
12-27 Where a local sales or use tax has been paid with respect
12-28 to tangible personal property by the purchaser either in
12-29 another local tax jurisdiction within the state or in a
12-30 tax jurisdiction outside the state, the tax may be
12-31 credited against the tax authorized to be imposed by this
12-32 article upon the same property. If the amount of sales or
12-33 use tax so paid is less than the amount of the use tax due
12-34 under this article, the purchaser shall pay an amount
12-35 equal to the difference between the amount paid in the
12-36 other tax jurisdiction and the amount due under this
12-37 article. The commissioner may require such proof of
12-38 payment in another local tax jurisdiction as he or she
12-39 deems necessary and proper. No credit shall be granted,
12-40 however, against the tax imposed under this article for
12-41 tax paid in another jurisdiction if the tax paid in such
12-42 other jurisdiction is used to obtain a credit against any
12-43 other local sales and use tax levied in the county or in a
12-44 special district which includes the county; and taxes so
-12-
13- 1 paid in another jurisdiction shall be credited first
13- 2 against the tax levied under Article 2 of this chapter, as
13- 3 amended, if applicable, then against the tax levied under
13- 4 Article 3 of this chapter, as amended, if applicable, then
13- 5 against the tax levied under Article 2A of this chapter,
13- 6 as amended, if applicable, and then against the tax levied
13- 7 under this article.
13- 8 48-8-151.
13- 9 No tax provided for in this article shall be imposed upon
13-10 the sale of tangible personal property which is ordered by
13-11 and delivered to the purchaser at a point outside the
13-12 geographical area of the county in which the tax is
13-13 imposed regardless of the point at which title passes, if
13-14 the delivery is made by the seller's vehicle, United
13-15 States mail, or common carrier or by private or contract
13-16 carrier licensed by the Interstate Commerce Commission or
13-17 the Georgia Public Service Commission.
13-18 48-8-152.
13-19 (a) As used in this Code section, the term 'building and
13-20 construction materials' means all building and
13-21 construction materials, supplies, fixtures, or equipment,
13-22 any combination of such items, and any other leased or
13-23 purchased articles when the materials, supplies, fixtures,
13-24 equipment, or articles are to be used or consumed during
13-25 construction or are to be incorporated into construction
13-26 work pursuant to a bona fide written construction
13-27 contract.
13-28 (b) No tax provided for in this article shall be imposed
13-29 upon the sale or use of building and construction
13-30 materials when the contract pursuant to which the
13-31 materials are purchased or used was advertised for bid
13-32 prior to the voters' approval of the levy of the tax and
13-33 the contract was entered into as a result of a bid
13-34 actually submitted in response to the advertisement prior
13-35 to approval of the levy of the tax.
13-36 48-8-153.
13-37 The commissioner shall have the power and authority to
13-38 promulgate such rules and regulations as shall be
13-39 necessary for the effective and efficient administration
13-40 and enforcement of the collection of the tax authorized to
13-41 be imposed by this article.
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14- 1 48-8-154.
14- 2 A tax imposed pursuant to this article shall not be
14- 3 subject to and shall not count with respect to any general
14- 4 law limitation regarding the maximum amount of local sales
14- 5 and use taxes which may be levied in any jurisdiction in
14- 6 this state. The tax authorized by this article shall be
14- 7 in addition to any other local sales and use tax. The
14- 8 imposition of any other local sales and use tax within a
14- 9 county shall not affect the authority of a board of
14-10 education to impose the tax authorized by this article,
14-11 and nothing in this article shall prohibit a county and
14-12 those municipalities located in such county from imposing
14-13 as additional taxes any otherwise authorized local sales
14-14 and use tax.
14-15 48-8-155.
14-16 (a) The proceeds received from the tax authorized by this
14-17 article shall be used by the board of education
14-18 exclusively for the purpose or purposes specified in the
14-19 resolution calling for imposition of the tax. Such
14-20 proceeds shall be kept in a separate account from other
14-21 funds of the board of education and shall not in any
14-22 manner be commingled with other funds of the board of
14-23 education prior to the expenditure.
14-24 (b) A board of education receiving any proceeds from the
14-25 tax pursuant to this article shall maintain a record of
14-26 each and every project for which the proceeds of the tax
14-27 are used. A schedule shall be included in each annual
14-28 audit which shows the amount estimated for each project in
14-29 the resolution calling for imposition of the tax, amounts
14-30 expended in prior years, amounts expended in the current
14-31 year, and the estimated percentage of completion of each
14-32 project. The auditor shall verify and test expenditures
14-33 of each project sufficient to express an opinion thereon
14-34 in accordance with generally accepted government auditing
14-35 standards.
14-36 (c) No general obligation debt shall be issued in
14-37 conjunction with the imposition of the tax unless the
14-38 board of education determines that, and if the debt is to
14-39 be validated it is demonstrated in the validation
14-40 proceedings that, during each year in which any payment of
14-41 principal or interest on the debt comes due, the board of
14-42 education will receive from the tax authorized by this
14-43 article net proceeds sufficient to fully satisfy such
-14-
15- 1 liability. General obligation debt issued under this
15- 2 article shall be payable first from the separate account
15- 3 in which are placed the proceeds received by the board of
15- 4 education from the tax authorized by this article. Such
15- 5 debt, however, shall constitute a pledge of the full
15- 6 faith, credit, and taxing power of the board of education;
15- 7 and any liability on said debt which is not satisfied from
15- 8 the proceeds of the tax authorized by this article shall
15- 9 be satisfied from the general funds of the board of
15-10 education.
15-11 (d) The resolution calling for imposition of the tax
15-12 authorized by this article may specify that all of the
15-13 proceeds of the tax will be used for payment of general
15-14 obligation debt issued in conjunction with the imposition
15-15 of the tax with respect to an authorized purpose or
15-16 purposes for which this tax may be imposed. If the
15-17 resolution so provides, then such proceeds shall be used
15-18 solely for such purpose except as provided in subsection
15-19 (g) of this Code section.
15-20 (e) The resolution calling for imposition of the tax
15-21 authorized by this article may specify that a part of the
15-22 proceeds of the tax will be used for payment of general
15-23 obligation debt. If the resolution so provides, it shall
15-24 specifically state the other purposes for which such
15-25 proceeds will be used; and such other purposes shall be a
15-26 part of the capital outlay project or projects, or the
15-27 retirement of previously incurred general obligation debt,
15-28 for which the tax is to be imposed. In such a case no
15-29 part of the net proceeds from the tax received in any year
15-30 shall be used for such other purposes until all debt
15-31 service requirements of the general obligation debt for
15-32 that year have first been satisfied from the account in
15-33 which the proceeds of the tax are placed.
15-34 (f) The resolution calling for the imposition of the tax
15-35 may specify that no general obligation debt is to be
15-36 issued in conjunction with the imposition of the tax. If
15-37 the resolution so provides, it shall specifically state
15-38 the purpose or purposes for which the proceeds will be
15-39 used.
15-40 (g)(1)(A) If the proceeds of the tax are specified to
15-41 be used solely for the purpose of payment of general
15-42 obligation debt issued in conjunction with the
15-43 imposition of the tax, then any net proceeds of the
15-44 tax in excess of the amount required for final payment
-15-
16- 1 of such debt shall be subject to and applied as
16- 2 provided in paragraph (2) of this subsection.
16- 3 (B) If the board of education receives from the tax
16- 4 net proceeds in excess of the maximum cost of the
16- 5 project or projects stated in the resolution calling
16- 6 for the imposition of the tax or in excess of the
16- 7 actual cost of such project or projects, then such
16- 8 excess proceeds shall be subject to and applied as
16- 9 provided in paragraph (2) of this subsection.
16-10 (C) If the tax is terminated under paragraph (1) of
16-11 subsection (b) of Code Section 48-8-146 by reason of
16-12 denial of validation of debt, then all net proceeds
16-13 received by the board of education from the tax shall
16-14 be excess proceeds subject to paragraph (2) of this
16-15 subsection.
16-16 (2) Excess proceeds of the tax subject to this
16-17 subsection or which remain following expenditure of
16-18 proceeds for authorized projects or purposes, including
16-19 payment of any indebtedness incurred pursuant to this
16-20 article, shall be used solely for the purpose of
16-21 reducing any indebtedness of the school system other
16-22 than indebtedness incurred pursuant to this article. If
16-23 there is no such other indebtedness, or if the excess
16-24 proceeds exceed the amount of any such other
16-25 indebtedness, then the excess proceeds shall next be
16-26 used by such school system for the purpose of reducing
16-27 its millage rate, for ad valorem tax purposes, in an
16-28 amount equal to the amount of such excess proceeds.
16-29 48-8-156.
16-30 (a) As provided by Paragraph IV(j) of Section VI of
16-31 Article VIII of the Constitution of Georgia,
16-32 notwithstanding any provision of any constitutional
16-33 amendment continued in force and effect pursuant to
16-34 Article XI, Section I, Paragraph IV(a) and except as
16-35 otherwise provided in subsection (b) of this Code section,
16-36 any political subdivision whose ad valorem taxing powers
16-37 are restricted pursuant to such a constitutional amendment
16-38 may receive the proceeds of the tax authorized under this
16-39 article or of any local sales and use tax authorized by
16-40 general law, or any combination of such taxes, without any
16-41 corresponding limitation of its ad valorem taxing powers
16-42 which would otherwise be required under such
16-43 constitutional amendment.
-16-
17- 1 (b) As further provided by Paragraph IV(j) of Section VI
17- 2 of Article VIII of the Constitution of Georgia, the
17- 3 restriction on and limitation of ad valorem taxing powers
17- 4 described in subsection (a) of this section shall remain
17- 5 applicable with respect to proceeds received from the levy
17- 6 of a local sales and use tax specifically authorized by a
17- 7 constitutional amendment in force and effect pursuant to
17- 8 Article XI, Section I, Paragraph IV(a), as opposed to a
17- 9 local sales and use tax authorized by this article or by
17-10 general law."
17-11 SECTION 2.
17-12 Said chapter is further amended by striking Code Section
17-13 48-8-105, relating to tax credits, and inserting in its
17-14 place a new Code Section 48-8-105 to read as follows:
17-15 "48-8-105.
17-16 Where a local sales or use tax has been paid with respect
17-17 to tangible personal property by the purchaser either in
17-18 another local tax jurisdiction within the state or in a
17-19 tax jurisdiction outside the state, the sales and use tax
17-20 may be credited against the sales and use tax authorized
17-21 to be imposed by this article upon the same property. If
17-22 the amount of sales or use tax so paid is less than the
17-23 amount of the use tax due under this article, the
17-24 purchaser shall pay an amount equal to the difference
17-25 between the amount paid in the other tax jurisdiction and
17-26 the amount due under this article. The commissioner may
17-27 require such proof of payment in another local tax
17-28 jurisdiction as the commissioner deems necessary and
17-29 proper. No credit shall be granted, however, against the
17-30 sales and use tax imposed under this article for tax paid
17-31 in another jurisdiction if the sales and use tax paid in
17-32 such other jurisdiction is used to obtain a credit against
17-33 any other local sales and use tax levied in the special
17-34 district or in the county which is conterminous with the
17-35 special district; and sales and use taxes so paid in
17-36 another jurisdiction shall be credited first against the
17-37 sales and use tax levied under this article Article 2 of
17-38 this chapter, as amended, if applicable, and then against
17-39 the sales and use tax levied under Article 3 of this
17-40 chapter, as amended, if applicable, and then against the
17-41 tax levied under this article, and then against the tax
17-42 levied under Article 4 of this chapter, as amended, if
17-43 applicable."
-17-
18- 1 SECTION 3.
18- 2 Said chapter is further amended by striking Code Section
18- 3 48-8-116, relating to tax credits, and inserting in its
18- 4 place a new Code Section 48-8-116 to read as follows:
18- 5 "48-8-116.
18- 6 Where a local sales or use tax has been paid with respect
18- 7 to tangible personal property by the purchaser either in
18- 8 another local tax jurisdiction within the state or in a
18- 9 tax jurisdiction outside the state, the tax may be
18-10 credited against the tax authorized to be imposed by this
18-11 article upon the same property. If the amount of sales or
18-12 use tax so paid is less than the amount of the use tax due
18-13 under this article, the purchaser shall pay an amount
18-14 equal to the difference between the amount paid in the
18-15 other tax jurisdiction and the amount due under this
18-16 article. The commissioner may require such proof of
18-17 payment in another local tax jurisdiction as he such
18-18 commissioner deems necessary and proper. No credit shall
18-19 be granted, however, against the tax imposed under this
18-20 article for tax paid in another jurisdiction if the tax
18-21 paid in such other jurisdiction is used to obtain a credit
18-22 against any other local sales and use tax levied in the
18-23 county or in a special district which includes the county;
18-24 and taxes so paid in another jurisdiction shall be
18-25 credited first against the tax levied under Article 2 of
18-26 this chapter, if applicable, and then against the tax
18-27 levied under this article, and then against the tax levied
18-28 under Article 2A of this chapter, as amended, if
18-29 applicable, and then against the tax levied under Article
18-30 4 of this chapter, as amended, if applicable."
18-31 SECTION 4.
18-32 This Act shall become effective upon its approval by the
18-33 Governor or upon its becoming law without such approval.
18-34 SECTION 5.
18-35 All laws and parts of laws in conflict with this Act are
18-36 repealed.
-18-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98