HB 609 - Hotels and motels; excise tax; amend provisions

First Reader Summary

A BILL to amend Article 3 of Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to the excise tax on the furnishing for value to the public of any rooms, lodgings, or accommodations, so as to change certain provisions regarding the levy and collection of such tax; and for other purposes.

Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8

Code Sections - 48-13-53

Recorded Votes

• Vote # 404 PASS 03/17/97
• Vote # 712 Agree Sen Sub 03/28/97
• Vote # 732 Prev ques 03/28/97
• Vote # 733 Disagr to Sen Sub 03/28/97
• Vote # 734 Disagr to Sen Sub Recon 03/28/97
• Vote # 735 Recede from positionn and agree 03/28/97

HB 609                                              HB 609/AP 
 
      H. B. No. 609 (AS PASSED HOUSE AND SENATE) 
      By:  Representatives Polak of the 67th, Royal of the 164th, 
      Jamieson of the 22nd, Buck of the 135th and Skipper of the 
      137th 
 
                        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 the excise tax on the 
  1- 3  furnishing for value to the public of any rooms, lodgings, 
  1- 4  or accommodations, so as to change certain provisions 
  1- 5  regarding the levy and collection of such tax; to provide 
  1- 6  for liability; to provide for conditions and procedures; to 
  1- 7  provide for exceptions and exemptions; to provide 
  1- 8  authorization with certain conditions for certain counties 
  1- 9  and municipalities to levy such tax; to change certain 
  1-10  provisions authorizing certain counties and municipalities 
  1-11  to levy such tax under certain conditions; to provide for 
  1-12  requirements and limitations with respect thereto; to 
  1-13  provide for related matters; to create the Joint Hotel Motel 
  1-14  Tax Study Committee; to provide for the committee's powers, 
  1-15  duties, authority, and termination; to provide an effective 
  1-16  date; to repeal conflicting laws; and for other purposes. 
 
  1-17       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-18                           SECTION 1. 
 
  1-19  Article 3 of Chapter 13 of Title 48 of the Official Code of 
  1-20  Georgia Annotated, relating to the excise tax on the 
  1-21  furnishing for value to the public of any rooms, lodgings, 
  1-22  or accommodations, is amended by striking paragraphs (1) and 
  1-23  (2) of subsection (a) of Code Section 48-13-51, relating to 
  1-24  the levy and collection of such excise tax, and inserting in 
  1-25  their place new paragraphs (1) and (2) to read as follows: 
 
  1-26      "(a)(1) The governing authority of each municipality in 
  1-27      this state may levy and collect an excise tax upon the 
  1-28      furnishing for value to the public of any room or rooms, 
  1-29      lodgings, or accommodations furnished by any person or 
  1-30      legal entity licensed by, or required to pay business or 
  1-31      occupation taxes to, the municipality for operating a 
  1-32      hotel, motel, inn, lodge, tourist camp, tourist cabin, 
  1-33      or any other place in which rooms, lodgings, or 
  1-34      accommodations are regularly furnished for value. 
  1-35      Within the territorial limits of the special district 
 
 
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  2- 1      located within the county, each county in this state may 
  2- 2      levy and collect an excise tax upon the furnishing for 
  2- 3      value to the public of any room or rooms, lodgings, or 
  2- 4      accommodations furnished by any person or legal entity 
  2- 5      licensed by, or required to pay business or occupation 
  2- 6      taxes to, the county for operating within the special 
  2- 7      district a hotel, motel, inn, lodge, tourist camp, 
  2- 8      tourist cabin, or any other place in which rooms, 
  2- 9      lodgings, or accommodations are regularly furnished for 
  2-10      value.  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      more than ten consecutive days or for use as meeting 
  2-14      rooms.  No tax shall be levied as provided in this Code 
  2-15      section upon the fees or charges for any rooms, 
  2-16      lodgings, or accommodations furnished for a period of 
  2-17      one or more days for use by Georgia state or local 
  2-18      government officials or employees when traveling on 
  2-19      official business.  Except as provided in paragraphs 
  2-20      (3), (3.1), (3.2), (3.3), (3.4), (3.5), (4), (4.1), 
  2-21      (4.2), (4.3), (4.4), (4.5), (5), and (5.1) of this 
  2-22      subsection, no tax levied pursuant to this Code section 
  2-23      shall be levied or collected at a rate exceeding 3 
  2-24      percent of the charge to the public for the furnishings. 
 
  2-25        (a)(1)(A) The governing authority of each municipality 
  2-26        in this state may levy and collect an excise tax upon 
  2-27        the furnishing for value to the public of any room or 
  2-28        rooms, lodgings, or accommodations furnished by any 
  2-29        person or legal entity licensed by, or required to pay 
  2-30        business or occupation taxes to, the municipality for 
  2-31        operating a hotel, motel, inn, lodge, tourist camp, 
  2-32        tourist cabin, campground, or any other place in which 
  2-33        rooms, lodgings, or accommodations are regularly 
  2-34        furnished for value.  Within the territorial limits of 
  2-35        the special district located within the county, each 
  2-36        county in this state may levy and collect an excise 
  2-37        tax upon the furnishing for value to the public of any 
  2-38        room or rooms, lodgings, or accommodations furnished 
  2-39        by any person or legal entity licensed by, or required 
  2-40        to pay business or occupation taxes to, the county for 
  2-41        operating within the special district a hotel, motel, 
  2-42        inn, lodge, tourist camp, tourist cabin, campground, 
  2-43        or any other place in which rooms, lodgings, or 
  2-44        accommodations are regularly furnished for value.  The 
  2-45        provisions of this Code section shall control over the 
 
 
 
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  3- 1        provisions of any local ordinance or resolution to the 
  3- 2        contrary enacted pursuant to Code Section 48-13-53 and 
  3- 3        in effect prior to July 1, 1998.  Any such ordinance 
  3- 4        shall not be deemed repealed by this Code section but 
  3- 5        shall be administered in conformity with this Code 
  3- 6        section. 
 
  3- 7          (B)(i) The excise tax shall be imposed on any person 
  3- 8          or legal entity licensed by or required to pay a 
  3- 9          business or occupation tax to the governing 
  3-10          authority imposing the tax for operating a hotel, 
  3-11          motel, inn, lodge, tourist camp, tourist cabin, 
  3-12          campground, or any other place in which rooms, 
  3-13          lodgings, or accommodations are regularly furnished 
  3-14          for value and shall apply to the furnishing for 
  3-15          value of any room, lodging, or accommodation.  Every 
  3-16          person or entity subject to a tax levied as provided 
  3-17          in this Code section shall, except as provided in 
  3-18          this Code section, be liable for the tax at the 
  3-19          applicable rate on the lodging charges actually 
  3-20          collected or, if the amount of taxes collected from 
  3-21          the hotel or motel guest is in excess of the total 
  3-22          amount that should have been collected, the total 
  3-23          amount actually collected must be remitted. 
 
  3-24          (ii) Any tax levied as provided in this Code section 
  3-25          is also imposed upon every person or entity who is a 
  3-26          hotel or motel guest and who receives a room, 
  3-27          lodging, or accommodation that is subject to the tax 
  3-28          levied under this Code section.  Every such guest 
  3-29          subject to the tax levied under this Code section 
  3-30          shall pay the tax to the person or entity providing 
  3-31          the room, lodging, or accommodation.  The tax shall 
  3-32          be a debt of the person obtaining the room, lodging, 
  3-33          or accommodation to the person or entity providing 
  3-34          such room, lodging, or accommodation until it is 
  3-35          paid and shall be recoverable at law by the person 
  3-36          or entity providing such room, lodging, or 
  3-37          accommodation in the same manner as authorized for 
  3-38          the recovery of other debts.  The person or entity 
  3-39          collecting the tax from the hotel or motel guest 
  3-40          shall remit the tax to the governing authority 
  3-41          imposing the tax, and the tax remitted shall be a 
  3-42          credit against the tax imposed by division 
  3-43          (a)(1)(B)(i) of this Code section on the person or 
  3-44          entity providing the room, lodging, or 
  3-45          accommodation. 
 
 
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  4- 1        (C) The tax authorized by this Code section shall not 
  4- 2        apply to charges made for any rooms, lodgings, or 
  4- 3        accommodations provided to any persons who certify 
  4- 4        that they are staying in such room, lodging, or 
  4- 5        accommodation as a result of the destruction of their 
  4- 6        home or residence by fire or other casualty.  The tax 
  4- 7        authorized by this Code section shall apply to the 
  4- 8        fees or charges for any rooms, lodgings, or 
  4- 9        accommodations during the first ten days of continuous 
  4-10        occupancy and shall not apply to charges imposed for 
  4-11        any continuous occupancy thereafter.  The tax 
  4-12        authorized by this Code section shall not apply to 
  4-13        charges made for the use of meeting rooms and other 
  4-14        such facilities or to any rooms, lodgings, or 
  4-15        accommodations provided without charge.  The tax 
  4-16        authorized by this Code section shall not apply to the 
  4-17        charges for any rooms, lodgings, or accommodations 
  4-18        furnished for a period of one or more days for use by 
  4-19        Georgia state or local governmental officials or 
  4-20        employees when traveling on official business. 
 
  4-21        (D) Except as provided in paragraphs (3), (3.1), 
  4-22        (3.2), (3.3), (3.4), (3.5), (3.6), (4), (4.1), (4.2), 
  4-23        (4.3), (4.4), (4.5), (5), and (5.1) of this 
  4-24        subsection, no tax levied pursuant to this Code 
  4-25        section shall be levied or collected at a rate 
  4-26        exceeding 3 percent of the charge to the public for 
  4-27        the furnishings. 
 
  4-28      (2) A county or municipality levying a tax as provided 
  4-29      in paragraph (1) of this subsection shall in each fiscal 
  4-30      year beginning on or after July 1, 1987, expend for the 
  4-31      purpose of promoting tourism, conventions, and trade 
  4-32      shows a percentage of the total taxes collected under 
  4-33      this Code section which is not less than the percentage 
  4-34      of such tax collections expended for such purposes 
  4-35      during the immediately preceding fiscal year.  In 
  4-36      addition, if during such immediately preceding fiscal 
  4-37      year any portion of such tax receipts was expended for 
  4-38      such purposes through a grant to or a contract or 
  4-39      contracts with the state, a department of state 
  4-40      government, a state authority, or a private sector 
  4-41      nonprofit organization, then in each fiscal year 
  4-42      beginning on or after July 1, 1987, at least the same 
  4-43      percentage shall be expended through a contract or 
  4-44      contracts with one or more such entities for the purpose 
  4-45      of promoting tourism, conventions, and trade shows.  The 
 
 
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  5- 1      expenditure requirements of this paragraph shall cease 
  5- 2      to apply to a county or municipality which levies a tax 
  5- 3      at a rate in excess of 3 percent, as authorized under 
  5- 4      paragraphs (3), (3.1), (3.2), (3.3), (3.4), (3.5), 
  5- 5      (3.6), (4), (4.1), (4.2), (4.3), (4.4), (4.5), (5), and 
  5- 6      (5.1) of this subsection; and in such case the 
  5- 7      expenditure requirements of such paragraph of this 
  5- 8      subsection pursuant to which such tax is levied shall 
  5- 9      apply instead." 
 
  5-10                           SECTION 2. 
 
  5-11  Said article is further amended by adding a new paragraph 
  5-12  immediately following paragraph (3.5) of subsection (a) of 
  5-13  Code Section 48-13-51, relating to the levy and collection 
  5-14  of certain excise taxes, to be designated paragraph (3.6), 
  5-15  to read as follows: 
 
  5-16      "(3.6) Notwithstanding the provisions of paragraph (1) 
  5-17      of this subsection, a county (within the territorial 
  5-18      limits of the special district located within the 
  5-19      county) and municipalities within a county in which an 
  5-20      attraction honoring the inventor of the cotton gin is 
  5-21      planned, owned, or operated by the municipality may levy 
  5-22      a tax under this Code section at a rate of 6 percent.  A 
  5-23      county or municipality levying a tax pursuant to this 
  5-24      paragraph shall expend (in each fiscal year during which 
  5-25      the tax is collected under this paragraph (3.6)) an 
  5-26      amount equal to 83 1/3 percent of the total taxes 
  5-27      collected at the rate of 6 percent for the purpose of 
  5-28      promoting tourism, conventions, and trade shows; and an 
  5-29      amount equal to 16 2/3 percent of the total taxes 
  5-30      collected at the rate of 6 percent for the purpose of 
  5-31      constructing, marketing, or operating an attraction 
  5-32      honoring the inventor of the cotton gin. Marketing and 
  5-33      operating expenditures may include a preopening 
  5-34      marketing program for such facility and an escrow 
  5-35      account accrued prior to opening such facility to cover 
  5-36      operating expenses to be incurred after the opening of 
  5-37      such facility." 
 
  5-38                           SECTION 3. 
 
  5-39  Said article is further amended by striking paragraph (6) of 
  5-40  subsection (a) of Code Section 48-13-51, relating to the 
  5-41  levy and collection of certain excise taxes, and inserting 
  5-42  in its place a new paragraph (6) to read as follows: 
 
 
 
 
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  6- 1      "(6) At no time shall a county or municipality levy a 
  6- 2      tax under more than one paragraph of this subsection. 
  6- 3      Following the termination of a tax under paragraph 
  6- 4      (3.1), (3.2), (3.3), (3.4), (3.5), (3.6), (4.1), (4.2), 
  6- 5      (4.3), (4.4), (4.5), (5), or (5.1) of this subsection, 
  6- 6      any county or municipality which has levied a tax 
  6- 7      pursuant to paragraph (3.1), (3.2), (3.3), (3.4), (3.5), 
  6- 8      (3.6), (4.1), (4.2), (4.3), (4.4), (4.5), (5), or (5.1) 
  6- 9      of this subsection shall be authorized to levy a tax in 
  6-10      the manner and at the rate authorized by either 
  6-11      paragraph (1), paragraph (3), or paragraph (4) of this 
  6-12      subsection but shall not thereafter be authorized to 
  6-13      again levy a tax under paragraph (3.1), (3.2), (3.3), 
  6-14      (3.4), (3.5), (3.6), (4.1), (4.2), (4.3), (4.4), (4.5), 
  6-15      (5), or (5.1) of this subsection." 
 
  6-16                           SECTION 4. 
 
  6-17  Said article is further amended by striking paragraphs (9) 
  6-18  and (10) of subsection (a) of Code Section 48-13-51, 
  6-19  relating to the levy and collection of certain excise taxes, 
  6-20  and inserting in their places new paragraphs (9) and (10) to 
  6-21  read as follows: 
 
  6-22        "(9)(A) A county or municipality imposing a tax under 
  6-23        paragraph (1), (2), (3), (3.1), (3.2), (3.3), (3.4), 
  6-24        (3.5), (3.6), (4), (4.1), (4.2), (4.3), (4.4), (4.5), 
  6-25        (5), or (5.1) of this subsection shall prior to the 
  6-26        imposition of the tax (if the tax is imposed on or 
  6-27        after July 1, 1990) and prior to each fiscal year 
  6-28        thereafter in which the tax is imposed adopt a budget 
  6-29        plan specifying how the expenditure requirements of 
  6-30        this Code section will be met.  Prior to the adoption 
  6-31        of such budget plan, the county or municipality shall 
  6-32        obtain from the authorized entity with which it 
  6-33        proposes to contract to meet the expenditure 
  6-34        requirements of this Code section a budget for 
  6-35        expenditures to be made by such organization; and such 
  6-36        budget shall be made a part of the county or municipal 
  6-37        budget plan. 
 
  6-38        (B) The determination as to whether a county or 
  6-39        municipality has complied with the expenditure 
  6-40        requirements of paragraph (2), (3), (3.1), (3.2), 
  6-41        (3.3), (3.4), (3.5), (3.6), (4), (4.1), (4.2), (4.3), 
  6-42        (4.4), (4.5), (5), or (5.1) of this subsection shall 
  6-43        be made for each fiscal year beginning on or after 
  6-44        July 1, 1987, as of the end of each fiscal year, shall 
 
 
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  7- 1        be prominently reflected in the audit required under 
  7- 2        Code Section 36-81-7, and shall be determined by: (i) 
  7- 3        calculating the amount of funds expended or 
  7- 4        contractually committed for expenditure as provided in 
  7- 5        paragraph (2), (3), (3.1), (3.2), (3.3), (3.4), (3.5), 
  7- 6        (3.6), (4), (4.1), (4.2), (4.3), (4.4), (4.5), (5), or 
  7- 7        (5.1) of this subsection, whichever is applicable, 
  7- 8        during the fiscal year; and (ii) expressing such 
  7- 9        amount as a percentage of tax receipts under this Code 
  7-10        section during such fiscal year.  A county or 
  7-11        municipality contractually expending funds to meet the 
  7-12        expenditure requirements of paragraph (2), (3), (3.1), 
  7-13        (3.2), (3.3), (3.4), (3.5), (3.6), (4), (4.1), (4.2), 
  7-14        (4.3), (4.4), (4.5), (5), or (5.1) of this subsection 
  7-15        shall require the contracting party to provide audit 
  7-16        verification that the contracting party makes use of 
  7-17        such funds in conformity with the requirements of this 
  7-18        subsection. 
 
  7-19      (10) Nothing in this article shall be construed to limit 
  7-20      the power of a county or municipality to expend more 
  7-21      than the required amounts, or all, of the total taxes 
  7-22      collected under this Code section for the purposes 
  7-23      described in paragraph (2), (3), (3.1), (3.2), (3.3), 
  7-24      (3.4), (3.5), (3.6), (4), (4.1), (4.2), (4.3), (4.4), 
  7-25      (4.5), (5), or (5.1) of this subsection." 
 
  7-26                           SECTION 5. 
 
  7-27  Said article is further amended by striking Code Section 
  7-28  48-13-53, relating to procedures, and inserting in its place 
  7-29  a new Code Section 48-13-53 to read as follows: 
 
  7-30    "48-13-53. 
 
  7-31    The Except as otherwise specifically provided in Code 
  7-32    Section 48-13-51, the rate of taxation, the manner of 
  7-33    imposition, payment, and collection of the tax, and all 
  7-34    other procedures related to the tax shall be as provided 
  7-35    by each county and municipality electing to exercise the 
  7-36    powers conferred by this article." 
 
  7-37                           SECTION 6. 
 
  7-38  (a) There is created the Joint Hotel Motel Tax Study 
  7-39  Committee to be composed of five members of the House of 
  7-40  Representatives to be appointed by the Speaker of the House 
  7-41  of Representatives and five members of the Senate to be 
  7-42  appointed by the President of the Senate.  The Speaker shall 
 
 
 
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  8- 1  designate a member of the committee as cochairperson of the 
  8- 2  committee.  The President of the Senate shall designate a 
  8- 3  member of the committee as cochairperson of the committee. 
  8- 4  The cochairpersons shall call all meetings of the committee. 
 
  8- 5  (b) The committee shall undertake a study of the need for a 
  8- 6  cap to be placed on sales taxes to be applied to hotel or 
  8- 7  motel rooms in any county or municipality which levies a 
  8- 8  hotel motel tax pursuant to paragraph (5) of subsection (a) 
  8- 9  of Code Section 48-13-51 of the O.C.G.A. and recommend any 
  8-10  actions or legislation which the committee deems necessary 
  8-11  or appropriate.  The committee may conduct such meetings at 
  8-12  such places and at such times as it may deem necessary or 
  8-13  convenient to enable it to exercise fully and effectively 
  8-14  its powers, perform its duties, and accomplish the 
  8-15  objectives and purposes of this section.  The members of the 
  8-16  committee shall receive the allowances authorized for 
  8-17  legislative members of interim legislative committees but 
  8-18  shall receive the same for not more than five days unless 
  8-19  additional days are authorized.  The funds necessary to 
  8-20  carry out the provisions of this section shall come from the 
  8-21  funds appropriated to the Senate and House of 
  8-22  Representatives.  In the event the committee makes a report 
  8-23  of its findings and recommendations, with suggestions for 
  8-24  proposed legislation, if any, such report shall be made on 
  8-25  or before December 1, 1998.  The committee shall stand 
  8-26  abolished on December 1, 1998. 
 
  8-27  (c) This section shall stand repealed in its entirety on 
  8-28  December 1, 1998. 
 
  8-29                           SECTION 7. 
 
  8-30  This Act shall become effective on July 1, 1998. 
 
  8-31                           SECTION 8. 
 
  8-32  All laws and parts of laws in conflict with this Act are 
  8-33  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
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