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HR 9 - Education funding; repeal ad val tax; impose 2% sales tax - CA

Royal, A. Richard (164th)	Buck, III, Thomas B (135th)	Smith, Larry (109th)

Status Summary	HC:	W&M	SC:		FR:	01/12/99	LA:	01/13/99	H - Read 2nd Time

First Reader Summary

A RESOLUTION proposing an amendment to the Constitution so as to repeal the provisions requiring the funding of education by ad valorem taxation and provide for the imposition of a state-wide sales and use tax of 2 percent, which rate of taxation may be adjusted as necessary by the General Assembly, the proceeds of which shall be used exclusively for educational purposes prior to the college of postsecondary level; and for other purposes.

HR 9                                               LC 18 9162 
 
 
 
 
 
 
                             A RESOLUTION 
 
  1- 1  Proposing an amendment to the Constitution so as to repeal 
  1- 2  the provisions requiring the funding of education by ad 
  1- 3  valorem taxation and provide for the imposition of a 
  1- 4  state-wide sales and use tax of 2 percent, which rate of 
  1- 5  taxation may be adjusted as necessary by the General 
  1- 6  Assembly, the proceeds of which shall be used exclusively 
  1- 7  for educational purposes prior to the college or 
  1- 8  postsecondary level; to provide for the submission of this 
  1- 9  amendment for ratification or rejection; and for other 
  1-10  purposes. 
 
  1-11       BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-12                           SECTION 1. 
 
  1-13  Article VIII of the Constitution is amended by striking 
  1-14  Section VI and inserting in its place a new Section VI to 
  1-15  read as follows: 
 
 
  1-16                  LOCAL TAXATION FOR EDUCATION 
 
  1-17      Paragraph I. Local taxation Taxation for education. (a) 
  1-18    The board of education of each school system shall 
  1-19    annually certify to its fiscal authority or authorities a 
  1-20    school tax not greater than 20 mills per dollar for the 
  1-21    support and maintenance of education.  Said fiscal 
  1-22    authority or authorities shall annually levy said tax upon 
  1-23    the assessed value of all taxable property within the 
  1-24    territory served by said school system, provided that the 
  1-25    levy made by an area board of education, which levy shall 
  1-26    not be greater than 20 mills per dollar, shall be in such 
  1-27    amount and within such limits as may be prescribed by 
  1-28    local law applicable thereto.  
 
  1-29      (b) School tax funds shall be expended only for the 
  1-30    support and maintenance of public schools, public 
  1-31    vocational-technical schools, public education, and 
  1-32    activities necessary or incidental thereto, including 
  1-33    school lunch purposes. 
 
 
 
 
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  2- 1      (b)(1) The authority provided under this Constitution on 
  2- 2      January 1, 2000, to levy and collect ad valorem taxes 
  2- 3      for educational purposes shall continue until December 
  2- 4      31, 2001.  On and after January 1, 2002, such authority 
  2- 5      shall cease and no ad valorem taxes for educational 
  2- 6      purposes shall be levied in this state. 
 
  2- 7        (2) In addition to any state-wide or local sales and 
  2- 8      use tax in effect on July 1, 2001, there is imposed 
  2- 9      effective on that date and thereafter a state-wide sales 
  2-10      and use tax of 2 percent.  The General Assembly shall be 
  2-11      authorized to adjust as necessary the rate of the tax 
  2-12      imposed by this subparagraph.  The sales and use tax 
  2-13      imposed by this subparagraph shall correspond to the 
  2-14      state-wide sales and use tax imposed by the revenue laws 
  2-15      of this state, as now or hereafter amended, except that 
  2-16      the rate shall be as specified in this subparagraph and 
  2-17      except that the tax shall apply to all sales of motor 
  2-18      fuels and shall not be subject to Article III, Section 
  2-19      IX, Paragraph VI(b) of this Constitution.  The tax 
  2-20      imposed by this subparagraph shall be levied and 
  2-21      collected in the same manner as the other state-wide 
  2-22      sales and use tax is levied and collected without the 
  2-23      necessity for further action by the General Assembly. 
  2-24      The total proceeds derived by the state from the sales 
  2-25      and use tax imposed by this subparagraph shall be used 
  2-26      exclusively for educational purposes prior to the 
  2-27      college or postsecondary level.  The General Assembly, 
  2-28      through appropriations, shall control the expenditure of 
  2-29      the educational funds provided for in this subparagraph, 
  2-30      which funds shall be expended for the educational 
  2-31      purposes authorized under this subparagraph prior to the 
  2-32      college or postsecondary level.  In addition, an amount 
  2-33      sufficient to continue to retire any outstanding public 
  2-34      debt or any bonds or obligations issued or incurred by 
  2-35      political subdivisions of this state for educational 
  2-36      purposes on or before December 31, 2001, shall be 
  2-37      appropriated by the General Assembly and the State of 
  2-38      Georgia expressly assumes any and all such outstanding 
  2-39      debt, bonds, or obligations.  Such outstanding debt, 
  2-40      bonds, or obligations shall not be counted for purposes 
  2-41      of calculating the state debt limitation specified in 
  2-42      Article VII, Section IV, Paragraph II of this 
  2-43      Constitution.  The General Assembly may also provide by 
  2-44      law, other than appropriations, for any matters the 
  2-45      General Assembly finds necessary or appropriate in 
 
 
 
                                 -2- 
 
 
 
  3- 1      controlling the expenditure of educational funds 
  3- 2      provided for in this subparagraph.  
 
  3- 3      (c) The 20 mill limitation provided for in subparagraph 
  3- 4    (a) of this Paragraph shall not apply to those school 
  3- 5    systems which are authorized on June 30, 1983, to levy a 
  3- 6    school tax in excess thereof.  
 
  3- 7      (d) The method of certification and levy of the school 
  3- 8    tax provided for in subparagraph (a) of this Paragraph 
  3- 9    shall not apply to those systems that are authorized on 
  3-10    June 30, 1983, to utilize a different method of 
  3-11    certification and levy of such tax; but the General 
  3-12    Assembly may by law require that such systems be brought 
  3-13    into conformity with the method of certification and levy 
  3-14    herein provided.  
 
  3-15      Paragraph II. Increasing or removing tax rate. The mill 
  3-16    limitation in effect on June 30, 1983, for any school 
  3-17    system may be increased or removed by action of the 
  3-18    respective boards of education, but only after such action 
  3-19    has been approved by a majority of the qualified voters 
  3-20    voting thereon in the particular school system to be 
  3-21    affected in the manner provided by law.  
 
  3-22      Paragraph III. School tax collection reimbursement. The 
  3-23    General Assembly may by general law require local boards 
  3-24    of education to reimburse the appropriate governing 
  3-25    authority for the collection of school taxes, provided 
  3-26    that any rate established may be reduced by local act." 
 
  3-27                           SECTION 2. 
 
  3-28  The above proposed amendment to the Constitution shall be 
  3-29  published and submitted as provided in Article X, Section I, 
  3-30  Paragraph II of the Constitution. 
 
  3-31  The ballot submitting the above proposed amendment shall 
  3-32  have written or printed thereon the following: 
 
  3-33    "(  ) YES Shall the Constitution be amended so as to 
  3-34              abolish the funding of education by ad valorem 
  3-35     (  ) NO  taxation and provide for the imposition of a 
  3-36              state-wide sales and use tax of 2 percent, the 
  3-37              proceeds of which shall be used exclusively 
  3-38              for educational purposes prior to the college 
  3-39              or postsecondary level?" 
 
  3-40  All persons desiring to vote in favor of ratifying the 
  3-41  proposed amendment shall vote "Yes."  All persons desiring 
 
 
 
                                 -3- 
 
 
 
  4- 1  to vote against ratifying the proposed amendment shall vote 
  4- 2  "No." 
 
  4- 3  If such amendment shall be ratified as provided in said 
  4- 4  Paragraph of the Constitution, it shall become a part of the 
  4- 5  Constitution of this state. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -4-