| HB 52 - State Sovereignty and Federal Tax Funds Act; enact |
First Reader Summary
A BILL to amend Title 50 of the Official Code of Georgia
Annotated, relating to state government, so as to enact the
"State Sovereignty and Federal Tax Funds Act"; and for other
purposes.
| House |
Action |
Senate |
| 1/12/99 |
Read 1st Time |
|
| 1/13/99 |
Read 2nd Time |
|
HB 52 LC 26 0924
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Title 50 of the Official Code of Georgia Annotated,
1- 2 relating to state government, so as to enact the "State
1- 3 Sovereignty and Federal Tax Funds Act"; to provide
1- 4 legislative findings; to define certain terms; to create the
1- 5 Federal Tax Fund in the state treasury; to provide that
1- 6 moneys collected by the state for payment to the federal
1- 7 government shall be paid into such fund; to provide that any
1- 8 private person liable for a federal tax shall pay such tax
1- 9 into such fund; to provide that if the federal government
1-10 sanctions the state for failure to comply with a federal
1-11 statute which the General Assembly feels is
1-12 unconstitutional, the state treasury shall withhold from
1-13 payment a certain amount of the funds due the federal
1-14 government; to provide sanctions for failure to comply with
1-15 such provisions; to provide that state officials shall
1-16 comply with such provisions without regard to any action
1-17 taken by the federal government; to provide for a special
1-18 session of the General Assembly; to provide that action by
1-19 the federal authorities shall constitute an action against
1-20 this state and shall be met with all necessary measures; to
1-21 provide for retroactive application; to provide for the
1-22 expenditure of confiscated federal funds; to provide for
1-23 other matters relative to the foregoing; to provide an
1-24 effective date; to repeal conflicting laws; and for other
1-25 purposes.
1-26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-27 SECTION 1.
1-28 Title 50 of the Official Code of Georgia Annotated, relating
1-29 to state government, is amended by inserting at the end
1-30 thereof a new chapter to read as follows:
1-31 50-32-1.
1-32 This article shall be known and may be cited as the 'State
1-33 Sovereignty and Federal Tax Funds Act.'
-1-
2- 1 50-32-2.
2- 2 (a) The Tenth Amendment to the Constitution of the United
2- 3 States of America states that '(t)he powers not delegated
2- 4 to the United States by the Constitution, or prohibited by
2- 5 it to the States, are reserved to the States respectively,
2- 6 or to the people.' The General Assembly finds that the
2- 7 Tenth Amendment to the Constitution of the United States
2- 8 of America defines the total scope of federal power as
2- 9 being that specifically stated in the Constitution of the
2-10 United States of America and no more.
2-11 (b) The General Assembly finds that the Congress of the
2-12 United States has the power to lay and collect taxes
2-13 pursuant only to clause 1 of Section 8 of Article 1,
2-14 clauses 4 and 5 of Section 9 of Article 1, and the
2-15 Sixteenth Amendment of the Constitution of the United
2-16 States of America.
2-17 (c) The General Assembly finds that the federal
2-18 government, its agencies or agents, or the United States
2-19 Congress does not have the power under the Constitution of
2-20 the United States of America to withhold from the states
2-21 the benefits of those taxes by use of federal mandates
2-22 that are outside the scope of the powers enumerated in the
2-23 Constitution of the United States of America for the
2-24 federal government.
2-25 (d) In light of the continuing unconstitutional federal
2-26 mandates that withhold the benefits of the taxes, the
2-27 state hereby reasserts its claim of sovereignty pursuant
2-28 to the Tenth Amendment to the Constitution of the United
2-29 States of America.
2-30 50-32-3.
2-31 As used in this Code section, the term:
2-32 (1) 'Consumer tax' means any tax imposed by the federal
2-33 government on any beer, liquor, wine, or similar
2-34 alcoholic beverage, tobacco, gasoline, or any other
2-35 consumer goods.
2-36 (2) 'Director' means the director of the Office of
2-37 Treasury and Fiscal Services.
2-38 (3) 'Excise tax' means any tax that forms a component of
2-39 the State Highway Account.
2-40 (4) 'Federal Tax Fund' means the escrow account created
2-41 by Code Section 50-32-4.
-2-
3- 1 (5) 'Income tax' means any tax imposed by the federal
3- 2 government on incomes from whatever source derived.
3- 3 (6) 'Person' means natural persons, corporations,
3- 4 partnerships, limited liability companies, associations,
3- 5 and other legal entities.
3- 6 50-32-4.
3- 7 (a) The Federal Tax Fund is created in the state treasury.
3- 8 All federal tax moneys collected by the state on behalf of
3- 9 the federal government shall be deposited by the director
3-10 into the Federal Tax Fund.
3-11 (b) The director, on a quarterly basis shall disburse the
3-12 funds to the respective appropriate federal recipient.
3-13 If, as a result of state action taken pursuant to this
3-14 article, the federal government denies any matching funds
3-15 or grants, imposes or mandates any financial sanctions or
3-16 penalties, or withholds funds resulting in a financial
3-17 cost to the state, the director shall withhold from
3-18 payment all or part of the quarterly disbursement
3-19 otherwise disbursed or transferred to each federal
3-20 recipient, per occurrence, in an amount equal to the total
3-21 cumulative outstanding amount of federal sanctions, denial
3-22 of any matching funds, denial of grants, or any other
3-23 financial sanctions, penalties, or withholding of funds.
3-24 The director shall continue to withhold all or part of the
3-25 quarterly disbursement otherwise disbursed or transferred
3-26 to each respective appropriate federal recipient until the
3-27 total cumulative amount withheld from the federal
3-28 government is equal to the total cumulative outstanding
3-29 amount of federal sanctions, denial of any matching funds,
3-30 denial of grants, or any other financial sanctions,
3-31 penalties, or withholding of funds.
3-32 (c) Funds that the director withholds from each federal
3-33 recipient shall be transferred quarterly from the Federal
3-34 Tax Fund and deposited into the general fund for general
3-35 use.
3-36 50-32-5.
3-37 (a) Any person liable for any federal excise, income, or
3-38 consumer tax shall remit the tax when due along with the
3-39 federal taxpayer number to the director for deposit into
3-40 the Federal Tax Fund.
3-41 (b) All moneys collected pursuant to subsection (a) of
3-42 this Code section shall be transmitted to the director
-3-
4- 1 who, as a fiduciary agent, shall credit the funds to the
4- 2 Federal Tax Fund on behalf of the person who remitted the
4- 3 tax.
4- 4 (c) The director shall submit to the federal Internal
4- 5 Revenue Service the names and tax identification numbers
4- 6 of, and the amounts deposited by, persons liable for any
4- 7 federal excise, income, or consumer tax so that the
4- 8 Internal Revenue Service can credit the state's taxpayers
4- 9 for federal tax obligations.
4-10 50-32-6.
4-11 (a) Except as provided in Code Section 50-32-4, the
4-12 director shall transfer at the end of each quarter the
4-13 moneys held in the fund, less any interest earned on the
4-14 deposit, to the respective appropriate federal recipient
4-15 in payment of the tax obligations of those persons who
4-16 remitted the tax funds to the director.
4-17 (b) If the federal government imposes sanctions of any
4-18 kind on the state for failing to enact legislation called
4-19 for by federal mandate, a vote shall be taken in the
4-20 General Assembly as to the constitutionality of the
4-21 sanctions. By a simple majority vote in each house of the
4-22 General Assembly, if the federal government is found to be
4-23 operating beyond the scope of its constitutionally
4-24 delegated powers, and therefore, unconstitutionally, the
4-25 director shall be notified in writing by the Attorney
4-26 General of the vote of the General Assembly, and the
4-27 General Assembly shall instruct the director to carry out
4-28 the procedure specified in subsection (b) of Code Section
4-29 50-32-4.
4-30 (c) Per occurrence, when the state has been legally
4-31 notified in writing by the federal government that it has
4-32 lifted any sanction as specified in subsection (b) of Code
4-33 Section 50-32-4, then, pursuant to subsection (a) of this
4-34 Code section, the director shall resume disbursement of
4-35 funds to the respective appropriate federal recipients at
4-36 the end of the next upcoming quarter.
4-37 50-32-7.
4-38 Any person liable for any federal excise, income, or
4-39 consumer tax who fails to forward federal tax moneys to
4-40 the director shall be subject to penalties assessed
4-41 pursuant to applicable federal or state statutes.
-4-
5- 1 50-32-8.
5- 2 The Governor, members of the General Assembly, judges, the
5- 3 Attorney General, the Secretary of State, the director,
5- 4 the state auditor, and all other state officers and
5- 5 employees shall implement this article regardless of any
5- 6 sanctions, threats, court action, or other pressure
5- 7 brought to bear by federal authorities.
5- 8 50-32-9.
5- 9 If the federal government imposes any sanctions on the
5-10 state while the General Assembly is not in session, the
5-11 Governor shall call the General Assembly into special
5-12 session for the purpose of implementing subsection (b) of
5-13 Code Section 50-32-6.
5-14 50-32-10.
5-15 Any actions by the federal government, its agencies or
5-16 agents, or the Congress of the United States against any
5-17 person in this state for compliance with this article
5-18 shall be considered an action against this state, and this
5-19 state shall make an appropriate response to cause the
5-20 action to cease and desist. This state shall take all
5-21 necessary measures to recover from the federal government,
5-22 its agencies or agents, or the Congress of the United
5-23 States the reasonable costs of defending the action.
5-24 50-32-11.
5-25 This article shall apply to federal taxes collected after
5-26 the date on which this article takes effect, and, because
5-27 the Constitution of the United States of America is and
5-28 has always been the supreme law of the land, this article
5-29 shall be enforced retroactively to repeal any
5-30 unconstitutional federal mandates that have been imposed
5-31 on the state.
5-32 50-32-12.
5-33 The General Assembly, by simple majority vote in both
5-34 houses, shall determine how the moneys transferred from
5-35 the Federal Tax Fund to the general fund, including
5-36 accrued interest, are to be used for the benefit of the
5-37 people of the state. These moneys shall be used for the
5-38 benefit of the people of Georgia only."
-5-
6- 1 SECTION 2.
6- 2 This Act shall become effective upon its approval by the
6- 3 Governor or upon its becoming law without such approval.
6- 4 SECTION 3.
6- 5 All laws and parts of laws in conflict with this Act are
6- 6 repealed.
-6-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 02/24/99
