| HB 208 - County excise tax; severance of solid minerals |
First Reader Summary
A BILL to amend Title 48 of the Official Code of Georgia
Annotated, relating to revenue and taxation, so as to provide for
a county excise tax on the severance of solid minerals; and for
other purposes.
| House |
Action |
Senate |
| 1/26/99 |
Read 1st Time |
|
| 1/27/99 |
Read 2nd Time |
|
HB 208 LC 18 9282
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Title 48 of the Official Code of Georgia Annotated,
1- 2 relating to revenue and taxation, so as to provide for a
1- 3 county excise tax on the severance of solid minerals; to
1- 4 provide for definitions; to provide for the procedure for
1- 5 the imposition of such tax; to limit the rate of the county
1- 6 severance tax; to provide for the administration and
1- 7 collection of the county severance tax; to provide for
1- 8 distribution of proceeds of the county severance tax; to
1- 9 provide for returns; to provide for payment of taxes and
1-10 time therefor; to provide for administration and collection
1-11 of the county severance tax by the state revenue
1-12 commissioner; to provide for assessments by the state
1-13 revenue commissioner in cases of failure of producers to
1-14 make returns; to provide for powers of the state revenue
1-15 commissioner; to provide for penalties; to authorize rules
1-16 and regulations by the state revenue commissioner; to
1-17 provide for fines; to provide for other matters relative to
1-18 the foregoing; to provide an effective date; to repeal
1-19 conflicting laws; and for other purposes.
1-20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-21 SECTION 1.
1-22 Title 48 of the Official Code of Georgia Annotated, relating
1-23 to revenue and taxation, is amended by adding at the end
1-24 thereof a new chapter, to be designated Chapter 18, to read
1-25 as follows:
1-26 48-18-1.
1-27 As used in this chapter, the term:
1-28 (1) 'Commissioner' means the state revenue commissioner.
1-29 (2) 'Department' means the Department of Revenue.
1-30 (3) 'For sale or for industry purposes' or 'for the
1-31 purpose of selling or for industrial use' means the
-1-
2- 1 entry of any solid mineral into the stream of intrastate
2- 2 or interstate commerce or any commercial exploitation of
2- 3 such solid mineral.
2- 4 (4) 'Governmental agency' means any federal, state, or
2- 5 local department, bureau, agency, or governing
2- 6 authority.
2- 7 (5) 'Person' means any individual, firm, partnership,
2- 8 joint venture, business trust, corporation, association,
2- 9 or any combination thereof.
2-10 (6) 'Producer' means any person engaging in the business
2-11 of severing one or more solid minerals from the soil or
2-12 waters within this state.
2-13 (7) 'Production' means the total gross amount of a solid
2-14 mineral severed from the soil or waters of this state
2-15 from any type of production unit, including but not
2-16 limited to mines, either on or below the surface,
2-17 quarries, pits, or other sites of extraction.
2-18 (8) 'Sever,' 'severed,' or 'severance' means the
2-19 withdrawing, cutting, mining, stripping, or otherwise
2-20 physical taking or removing of solid minerals from the
2-21 soil or waters within this state.
2-22 (9) 'Solid mineral' means all solid minerals, including,
2-23 but not limited to, clay, gravel, phosphate rock, lime,
2-24 shells exclusive of live shellfish, stone, sand, heavy
2-25 minerals, and any rare earths or waters which have
2-26 heretofore been discovered or may be discovered in the
2-27 future, which are contained in the soil or waters of
2-28 this state.
2-29 (10) 'Ton' means a short ton of 2,000 pounds. The
2-30 number of tons shall be determined at the first point at
2-31 which the solid mineral is weighed under such rules and
2-32 regulations as the commissioner may prescribe.
2-33 48-18-2.
2-34 (a) If the imposition of the tax provided for in this Code
2-35 section is to be levied in a county, the governing
2-36 authority of the county shall adopt a resolution imposing
2-37 the tax authorized by this Code section on behalf of the
2-38 county. Upon the adoption of such resolution, the
2-39 governing authority of a county shall be authorized to
2-40 levy upon each producer of solid minerals in such county
2-41 an excise tax on the privilege of engaging in the
-2-
3- 1 severance of solid minerals from the soil or waters in
3- 2 that county for sale or for industrial purposes. This
3- 3 excise tax shall be known as the county solid minerals
3- 4 severance tax. The resolution shall be effective on the
3- 5 first day of the next succeeding calendar quarter which
3- 6 begins more than 80 days after the adoption of the
3- 7 resolution. A certified copy of the resolution shall be
3- 8 forwarded to the commissioner so that it will be received
3- 9 within five days after its adoption.
3-10 (b) The rate of the county solid minerals severance tax
3-11 shall be 20› per ton.
3-12 (c) The tax levied by such county shall constitute a lien
3-13 upon all solid minerals severed in the county and upon all
3-14 property in the county from which such minerals are
3-15 severed, including but not limited to mineral rights of
3-16 the producer, and such lien shall be entitled to
3-17 preference over all judgments, encumbrances, or liens
3-18 except those held by the state.
3-19 (d) The tax imposed under this Code section shall be the
3-20 only severance tax levied by the county on solid minerals.
3-21 (e) The department shall administer and collect the
3-22 severance tax levied by the governing authority of each
3-23 county imposing a severance tax pursuant to this Code
3-24 section.
3-25 (f) The proceeds of the county solid minerals severance
3-26 tax collected by the commissioner shall be disbursed as
3-27 soon as practicable after collection as follows:
3-28 (1) One percent of the amount collected shall be paid
3-29 into the general fund of the state to defray the costs
3-30 of administration of the tax; and
3-31 (2) The remainder shall be returned to the county from
3-32 which the solid mineral was severed and shall be applied
3-33 by the county governing authority for the maintenance
3-34 and construction of roads by the county.
3-35 48-18-3.
3-36 (a) The county solid minerals severance tax shall be due
3-37 and payable monthly on the first day of the month next
3-38 succeeding the month in which the solid minerals are
3-39 severed from the soil or waters.
3-40 (b) In order to ascertain the amount of tax payable, the
3-41 producer shall transmit to the commissioner, on or before
-3-
4- 1 the fifteenth day of the month in which the tax accrues, a
4- 2 return upon forms provided by the commissioner. The
4- 3 return shall set forth the amount of solid minerals in
4- 4 tons severed by such producer during the next preceding
4- 5 calendar month, the amount of tax due, and such other
4- 6 information as the commissioner may require for the proper
4- 7 enforcement of the provisions of this chapter.
4- 8 (c) A separate return shall be filed with the commissioner
4- 9 for each county which imposes such tax and from which any
4-10 solid mineral is severed showing the month or period
4-11 covered, the total number of tons of all solid minerals
4-12 severed from each production unit operated, owned, or
4-13 controlled by the taxpayer during the period covered, the
4-14 county in which produced, the amount of the tax owing to
4-15 such county, and such other information as the
4-16 commissioner may require.
4-17 (d) A remittance in the amount of the tax owed to the
4-18 county or counties levying such tax shall accompany the
4-19 returns when transmitted to the commissioner.
4-20 (e) The returns shall be signed by the producer himself or
4-21 herself in the instance of any individual producer and by
4-22 a member, officer, or manager of the producer in all other
4-23 instances.
4-24 (f) The time provided for the filing of such returns with
4-25 the commissioner may be extended by agreement between the
4-26 producer and the commissioner.
4-27 (g) The producer making a timely return of the amount
4-28 owing to any county levying such tax shall be allowed a
4-29 credit in the amount of 1 percent against such liability.
4-30 48-18-4.
4-31 (a) In the event any producer shall fail to file the
4-32 signed monthly returns required, in the event the
4-33 commissioner has reason to believe that any return is
4-34 incorrect, or in the event any producer shall fail to pay
4-35 all taxes due under this chapter, the commissioner shall
4-36 be authorized to ascertain the true amount of any solid
4-37 mineral severed and to assess the tax based thereon within
4-38 three years from the date upon which the return and
4-39 remittance were due or were transmitted to the
4-40 commissioner. A notice of the assessment shall be mailed
4-41 to the producer.
-4-
5- 1 (b) The commissioner may require the producer to furnish
5- 2 him or her with such information as the commissioner may
5- 3 deem necessary to compute correctly the amount of tax to
5- 4 be levied and collected under the provisions of this
5- 5 chapter. The commissioner may require the production, at
5- 6 such place as the commissioner may designate, of the
5- 7 books, records, files, or other documents of the producer
5- 8 and examine the same. The commissioner shall also be
5- 9 authorized to conduct hearings and compel attendance of
5-10 witnesses. In any such event, the commissioner shall make
5-11 allowances for the reasonable business needs of the
5-12 producer in maintaining his or her business records.
5-13 (c) The commissioner may also request from any
5-14 governmental agency information necessary to the
5-15 ascertainment of the correct amount of the producer's tax
5-16 liability.
5-17 (d) All producers of solid minerals shall make and keep
5-18 for a period of three years a complete and accurate record
5-19 showing the gross quantity of solid minerals severed from
5-20 the soil or waters in this state, the county in which
5-21 severed, and any other information which the commissioner
5-22 may reasonably require.
5-23 (e) Upon the ascertainment of the tax so found to be due,
5-24 the commissioner shall add thereto a penalty assessment
5-25 equal to 15 percent of the amount of such tax, together
5-26 with all accrued costs and expenses of making such
5-27 ascertainment, and shall thereupon make demand upon the
5-28 producer for the payment thereof; provided, however, that
5-29 such penalty assessment may be waived by the commissioner
5-30 for good cause shown.
5-31 48-18-5.
5-32 The commissioner shall be authorized to promulgate
5-33 reasonable rules and regulations necessary to the
5-34 administration and collection of any tax imposed or
5-35 authorized by this chapter.
5-36 48-18-6.
5-37 Any person who violates any provision of this chapter
5-38 shall be guilty of a misdemeanor."
5-39 SECTION 2.
5-40 This Act shall become effective upon its approval by the
5-41 Governor or upon its becoming law without such approval.
-5-
6- 1 SECTION 3.
6- 2 All laws and parts of laws in conflict with this Act are
6- 3 repealed.
-6-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 02/24/99
