HB 1649 - Hotels and motels; cotten gin at- traction; authorize excise tax levy

First Reader Summary

A BILL to amend Article 3 of Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to county and municipal excise tax levies on charges to the public for rooms, lodgings, and accommodations, so as to provide authorization with certain conditions for certain counties and municipalities to levy such tax; and for other purposes.

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HB 1649                                            LC 24 1066 
 
 
 
 
 
 
                        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 authorization 
  1- 5  with certain conditions for certain counties and 
  1- 6  municipalities to levy such tax; to change certain 
  1- 7  provisions authorizing certain counties and municipalities 
  1- 8  to levy such tax under certain conditions; to provide for 
  1- 9  requirements and limitations with respect thereto; to 
  1-10  provide for related matters; to provide an effective date; 
  1-11  to repeal conflicting laws; and for other purposes. 
 
  1-12       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-13                           SECTION 1. 
 
  1-14  Article 3 of Chapter 13 of Title 48 of the Official Code of 
  1-15  Georgia Annotated, relating to county and municipal excise 
  1-16  tax levies on charges to the public for rooms, lodgings, and 
  1-17  accommodations, is amended by striking paragraphs (1) and 
  1-18  (2) of subsection (a) of Code Section 48-13-51, relating to 
  1-19  the levy and collection of certain excise taxes, and 
  1-20  inserting in their places new paragraphs (1) and (2) to read 
  1-21  as follows: 
 
  1-22      "(a)(1) The governing authority of each municipality in 
  1-23      this state may levy and collect an excise tax upon the 
  1-24      furnishing for value to the public of any room or rooms, 
  1-25      lodgings, or accommodations furnished by any person or 
  1-26      legal entity licensed by, or required to pay business or 
  1-27      occupation taxes to, the municipality for operating a 
  1-28      hotel, motel, inn, lodge, tourist camp, tourist cabin, 
  1-29      or any other place in which rooms, lodgings, or 
  1-30      accommodations are regularly furnished for value. 
  1-31      Within the territorial limits of the special district 
  1-32      located within the county, each county in this state may 
  1-33      levy and collect an excise tax upon the furnishing for 
  1-34      value to the public of any room or rooms, lodgings, or 
  1-35      accommodations furnished by any person or legal entity 
 
 
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  2- 1      licensed by, or required to pay business or occupation 
  2- 2      taxes to, the county for operating within the special 
  2- 3      district a hotel, motel, inn, lodge, tourist camp, 
  2- 4      tourist cabin, or any other place in which rooms, 
  2- 5      lodgings, or accommodations are regularly furnished for 
  2- 6      value.  No tax shall be levied as provided in this Code 
  2- 7      section upon the fees or charges for any rooms, 
  2- 8      lodgings, or accommodations furnished for a period of 
  2- 9      more than ten consecutive days or for use as meeting 
  2-10      rooms.  No tax shall be levied as provided in this Code 
  2-11      section upon the fees or charges for any rooms, 
  2-12      lodgings, or accommodations furnished for a period of 
  2-13      one or more days for use by Georgia state or local 
  2-14      government officials or employees when traveling on 
  2-15      official business.  Except as provided in paragraphs 
  2-16      (3), (3.1), (3.2), (3.3), (3.4), (3.5), (3.6), (4), 
  2-17      (4.1), (4.2), (4.3), (4.4), (4.5), (5), and (5.1) of 
  2-18      this subsection, no tax levied pursuant to this Code 
  2-19      section shall be levied or collected at a rate exceeding 
  2-20      3 percent of the charge to the public for the 
  2-21      furnishings. 
 
  2-22      (2) A county or municipality levying a tax as provided 
  2-23      in paragraph (1) of this subsection shall in each fiscal 
  2-24      year beginning on or after July 1, 1987, expend for the 
  2-25      purpose of promoting tourism, conventions, and trade 
  2-26      shows a percentage of the total taxes collected under 
  2-27      this Code section which is not less than the percentage 
  2-28      of such tax collections expended for such purposes 
  2-29      during the immediately preceding fiscal year.  In 
  2-30      addition, if during such immediately preceding fiscal 
  2-31      year any portion of such tax receipts was expended for 
  2-32      such purposes through a grant to or a contract or 
  2-33      contracts with the state, a department of state 
  2-34      government, a state authority, or a private sector 
  2-35      nonprofit organization, then in each fiscal year 
  2-36      beginning on or after July 1, 1987, at least the same 
  2-37      percentage shall be expended through a contract or 
  2-38      contracts with one or more such entities for the purpose 
  2-39      of promoting tourism, conventions, and trade shows.  The 
  2-40      expenditure requirements of this paragraph shall cease 
  2-41      to apply to a county or municipality which levies a tax 
  2-42      at a rate in excess of 3 percent, as authorized under 
  2-43      paragraphs (3), (3.1), (3.2), (3.3), (3.4), (3.5), 
  2-44      (3.6), (4), (4.1), (4.2), (4.3), (4.4), (4.5), (5), and 
  2-45      (5.1) of this subsection; and in such case the 
 
 
 
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  3- 1      expenditure requirements of such paragraph of this 
  3- 2      subsection pursuant to which such tax is levied shall 
  3- 3      apply instead." 
 
  3- 4                           SECTION 2. 
 
  3- 5  Said article is further amended by adding a new paragraph 
  3- 6  immediately following paragraph (3.5) 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 paragraph (3.6), 
  3- 9  to read as follows: 
 
  3-10      "(3.6) 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 municipalities within a county in which an 
  3-14      attraction honoring the inventor of the cotton gin is 
  3-15      planned, owned, or operated by the municipality may levy 
  3-16      a tax under this Code section at a rate of 6 percent.  A 
  3-17      county or municipality levying a tax pursuant to this 
  3-18      paragraph shall expend (in each fiscal year during which 
  3-19      the tax is collected under this paragraph (3.6)) an 
  3-20      amount equal to 83 1/3 percent of the total taxes 
  3-21      collected at the rate of 6 percent for the purpose of 
  3-22      promoting tourism, conventions, and trade shows; and an 
  3-23      amount equal to 16 2/3 percent of the total taxes 
  3-24      collected at the rate of 6 percent for the purpose of 
  3-25      constructing, marketing, or operating an attraction 
  3-26      honoring the inventor of the cotton gin. Marketing and 
  3-27      operating expenditures may include a preopening 
  3-28      marketing program for such facility and an escrow 
  3-29      account accrued prior to opening such facility to cover 
  3-30      operating expenses to be incurred after the opening of 
  3-31      such facility." 
 
  3-32                           SECTION 3. 
 
  3-33  Said article is further amended by striking paragraph (6) of 
  3-34  subsection (a) of Code Section 48-13-51, relating to the 
  3-35  levy and collection of certain excise taxes, and inserting 
  3-36  in its place a new paragraph (6) to read as follows: 
 
  3-37      "(6) At no time shall a county or municipality levy a 
  3-38      tax under more than one paragraph of this subsection. 
  3-39      Following the termination of a tax under paragraph 
  3-40      (3.1), (3.2), (3.3), (3.4), (3.5), (3.6), (4.1), (4.2), 
  3-41      (4.3), (4.4), (4.5), (5), or (5.1) of this subsection, 
  3-42      any county or municipality which has levied a tax 
  3-43      pursuant to paragraph (3.1), (3.2), (3.3), (3.4), (3.5), 
 
 
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  4- 1      (3.6), (4.1), (4.2), (4.3), (4.4), (4.5), (5), or (5.1) 
  4- 2      of this subsection shall be authorized to levy a tax in 
  4- 3      the manner and at the rate authorized by either 
  4- 4      paragraph (1), paragraph (3), or paragraph (4) of this 
  4- 5      subsection but shall not thereafter be authorized to 
  4- 6      again levy a tax under paragraph (3.1), (3.2), (3.3), 
  4- 7      (3.4), (3.5), (3.6), (4.1), (4.2), (4.3), (4.4), (4.5), 
  4- 8      (5), or (5.1) of this subsection." 
 
  4- 9                           SECTION 4. 
 
  4-10  Said article is further amended by striking paragraphs (9) 
  4-11  and (10) of subsection (a) of Code Section 48-13-51, 
  4-12  relating to the levy and collection of certain excise taxes, 
  4-13  and inserting in their places new paragraphs (9) and (10) to 
  4-14  read as follows: 
 
  4-15        "(9)(A) A county or municipality imposing a tax under 
  4-16        paragraph (1), (2), (3), (3.1), (3.2), (3.3), (3.4), 
  4-17        (3.5), (3.6), (4), (4.1), (4.2), (4.3), (4.4), (4.5), 
  4-18        (5), or (5.1) of this subsection shall prior to the 
  4-19        imposition of the tax (if the tax is imposed on or 
  4-20        after July 1, 1990) and prior to each fiscal year 
  4-21        thereafter in which the tax is imposed adopt a budget 
  4-22        plan specifying how the expenditure requirements of 
  4-23        this Code section will be met.  Prior to the adoption 
  4-24        of such budget plan, the county or municipality shall 
  4-25        obtain from the authorized entity with which it 
  4-26        proposes to contract to meet the expenditure 
  4-27        requirements of this Code section a budget for 
  4-28        expenditures to be made by such organization; and such 
  4-29        budget shall be made a part of the county or municipal 
  4-30        budget plan. 
 
  4-31        (B) The determination as to whether a county or 
  4-32        municipality has complied with the expenditure 
  4-33        requirements of paragraph (2), (3), (3.1), (3.2), 
  4-34        (3.3), (3.4), (3.5), (3.6), (4), (4.1), (4.2), (4.3), 
  4-35        (4.4), (4.5), (5), or (5.1) of this subsection shall 
  4-36        be made for each fiscal year beginning on or after 
  4-37        July 1, 1987, as of the end of each fiscal year, shall 
  4-38        be prominently reflected in the audit required under 
  4-39        Code Section 36-81-7, and shall be determined by: (i) 
  4-40        calculating the amount of funds expended or 
  4-41        contractually committed for expenditure as provided in 
  4-42        paragraph (2), (3), (3.1), (3.2), (3.3), (3.4), (3.5), 
  4-43        (3.6), (4), (4.1), (4.2), (4.3), (4.4), (4.5), (5), or 
  4-44        (5.1) of this subsection, whichever is applicable, 
 
 
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  5- 1        during the fiscal year; and (ii) expressing such 
  5- 2        amount as a percentage of tax receipts under this Code 
  5- 3        section during such fiscal year.  A county or 
  5- 4        municipality contractually expending funds to meet the 
  5- 5        expenditure requirements of paragraph (2), (3), (3.1), 
  5- 6        (3.2), (3.3), (3.4), (3.5), (3.6), (4), (4.1), (4.2), 
  5- 7        (4.3), (4.4), (4.5), (5), or (5.1) of this subsection 
  5- 8        shall require the contracting party to provide audit 
  5- 9        verification that the contracting party makes use of 
  5-10        such funds in conformity with the requirements of this 
  5-11        subsection. 
 
  5-12      (10) Nothing in this article shall be construed to limit 
  5-13      the power of a county or municipality to expend more 
  5-14      than the required amounts, or all, of the total taxes 
  5-15      collected under this Code section for the purposes 
  5-16      described in paragraph (2), (3), (3.1), (3.2), (3.3), 
  5-17      (3.4), (3.5), (3.6), (4), (4.1), (4.2), (4.3), (4.4), 
  5-18      (4.5), (5), or (5.1) of this subsection." 
 
  5-19                           SECTION 5. 
 
  5-20  This Act shall become effective upon its approval by the 
  5-21  Governor or upon its becoming law without such approval. 
 
  5-22                           SECTION 6. 
 
  5-23  All laws and parts of laws in conflict with this Act are 
  5-24  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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