Paragraph I. Local taxation Taxation for education. (a) The board of education of each school system shall annually certify to its fiscal authority or authorities a school tax not greater than 20 mills per dollar for the support and maintenance of education. Said fiscal authority or authorities shall annually levy said tax upon the assessed value of all taxable property within the territory served by said school system, provided that the levy made by an area board of education, which levy shall not be greater than 20 mills per dollar, shall be in such amount and within such limits as may be prescribed by local law applicable thereto.
(b) School tax funds shall be expended only for the support and maintenance of public schools, public vocational_technical schools, public education, and activities necessary or incidental thereto, including school lunch purposes.
(b)(1) The authority provided under this Constitution on January 1, 2002, to levy and collect ad valorem taxes for educational purposes shall continue until December 31, 2003. On and after January 1, 2004, such authority shall cease and no ad valorem taxes for educational purposes shall be levied in this state.
(2) In addition to any state or local sales and use tax in effect on July 1, 2003, there is imposed effective on that date and thereafter a state sales and use tax of 3 percent. The General Assembly shall be authorized to adjust as necessary the rate of the tax imposed by this subparagraph. The sales and use tax imposed by this subparagraph shall correspond to the state sales and use tax imposed by the revenue laws of this state, as now or hereafter amended, except that the rate shall be as specified in this subparagraph and except that the tax shall apply to all sales of motor fuels and shall not be subject to Article III, Section IX, Paragraph VI(b) of this Constitution. The tax imposed pursuant to this subparagraph shall be subject to any sales and use tax exemption with respect to the sale or use of food and beverages which is imposed by law. The tax imposed by this subparagraph shall be levied and collected in the same manner as the other state sales and use tax is levied and collected without the necessity for further action by the General Assembly. The total proceeds derived by the state from the sales and use tax imposed by this subparagraph shall be used exclusively for educational purposes prior to the college or postsecondary level. The General Assembly, through appropriations, shall control the expenditure of the educational funds provided for in this subparagraph, which funds shall be expended for the educational purposes authorized under this subparagraph prior to the college or postsecondary level. In addition, an amount sufficient to continue to retire any outstanding public debt or any bonds or obligations issued or incurred by political subdivisions of this state for educational purposes on or before December 31, 2003, shall be appropriated by the General Assembly and the State of Georgia expressly assumes any and all such outstanding debt, bonds, or obligations. Such outstanding debt, bonds, or obligations shall not be counted for purposes of calculating the state debt limitation specified in Article VII, Section IV, Paragraph II of this Constitution. The General Assembly may also provide by law, other than appropriations, for any matters the General Assembly finds necessary or appropriate in controlling the expenditure of educational funds provided for in this subparagraph.
(c) The 20 mill limitation provided for in subparagraph (a) of this Paragraph shall not apply to those school systems which are authorized on June 30, 1983, to levy a school tax in excess thereof.
(d) The method of certification and levy of the school tax provided for in subparagraph (a) of this Paragraph shall not apply to those systems that are authorized on June 30, 1983, to utilize a different method of certification and levy of such tax; but the General Assembly may by law require that such systems be brought into conformity with the method of certification and levy herein provided.
Paragraph II. Increasing or removing tax rate. The mill limitation in effect on June 30, 1983, for any school system may be increased or removed by action of the respective boards of education, but only after such action has been approved by a majority of the qualified voters voting thereon in the particular school system to be affected in the manner provided by law.
Paragraph III. School tax collection reimbursement. The General Assembly may by general law require local boards of education to reimburse the appropriate governing authority for the collection of school taxes, provided that any rate established may be reduced by local act.
Paragraph IV Paragraph II. Sales tax for educational purposes. (a) The board of education of each school district in a county in which no independent school district is located may by resolution and the board of education of each county school district and the board of education of each independent school district located within such county may by concurrent resolutions impose, levy, and collect a sales and use tax for educational purposes of such school districts conditioned upon approval by a majority of the qualified voters residing within the limits of the local taxing jurisdiction voting in a referendum thereon. This tax shall be at the rate of 1 percent and shall be imposed for a period of time not to exceed five years, but in all other respects, except as otherwise provided in this Paragraph, shall correspond to and be levied in the same manner as the tax provided for by Article 3 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to the special county 1 percent sales and use tax, as now or hereafter amended. Proceedings for the reimposition of such tax shall be in the same manner as proceedings for the initial imposition of the tax, but the newly authorized tax shall not be imposed until the expiration of the tax then in effect.
(b) The purpose or purposes for which the proceeds of the tax are to be used and may be expended include:
(1) Capital outlay projects for educational purposes;
(2) The retirement of previously incurred general obligation debt with respect only to capital outlay projects of the school system; provided, however, that the tax authorized under this Paragraph shall only be expended for the purpose authorized under this subparagraph (b)(2) if all ad valorem property taxes levied or scheduled to be levied prior to the maturity of any such then outstanding general obligation debt to be retired by the proceeds of the tax imposed under this Paragraph shall be reduced by a total amount equal to the total amount of proceeds of the tax imposed under this Paragraph to be applied to retire such bonded indebtedness. In the event of failure to comply with the requirements of this subparagraph (b)(2), as certified by the Department of Revenue, no further funds shall be expended under this subparagraph (b)(2) by such county or independent board of education and all such funds shall be maintained in a separate, restricted account and held solely for the expenditure for future capital outlay projects for educational purposes; or
(3) A combination of the foregoing.
(c) The resolution calling for the imposition of the tax and the ballot question shall each describe:
(1) The specific capital outlay projects to be funded, or the specific debt to be retired, or both, if applicable;
(2) The maximum cost of such project or projects and, if applicable, the maximum amount of debt to be retired, which cost and amount of debt shall also be the maximum amount of net proceeds to be raised by the tax; and
(3) The maximum period of time, to be stated in calendar years or calendar quarters and not to exceed five years.
(d) Nothing in this Paragraph shall prohibit a county and those municipalities located in such county from imposing as additional taxes local sales and use taxes authorized by general law.
(e) The tax imposed pursuant to this Paragraph shall not be subject to and shall not count with respect to any general law limitation regarding the maximum amount of local sales and use taxes which may be levied in any jurisdiction in this state.
(f) The tax imposed pursuant to this Paragraph shall not be subject to any sales and use tax exemption with respect to the sale or use of food and beverages which is imposed by law.
(g) The net proceeds of the tax shall be distributed between the county school district and the independent school districts, or portion thereof, located in such county according to the ratio the student enrollment in each school district, or portion thereof, bears to the total student enrollment of all school districts in the county or upon such other formula for distribution as may be authorized by local law. For purposes of this subparagraph, student enrollment shall be based on the latest FTE count prior to the referendum on imposing the tax.
(h) Excess proceeds of the tax which remain following expenditure of proceeds for authorized projects or purposes for education shall be used solely for the purpose of reducing any indebtedness of the school system. In the event there is no indebtedness, such excess proceeds shall be used by such school system for the purpose of reducing its millage rate in an amount equivalent to the amount of such excess proceeds.
(i) The tax authorized by this Paragraph may be imposed, levied, and collected as provided in this Paragraph without further action by the General Assembly, but the General Assembly shall be authorized by general law to further define and implement its provisions including, but not limited to, the authority to specify the percentage of net proceeds to be allocated among the projects and purposes for which the tax was levied.
(j)(1) Notwithstanding any provision of any constitutional amendment continued in force and effect pursuant to Article XI, Section I, Paragraph IV(a) and except as otherwise provided in subparagraph (j)(2) of this Paragraph, any political subdivision whose ad valorem taxing powers are restricted pursuant to such a constitutional amendment may receive the proceeds of the tax authorized under this Paragraph or of any local sales and use tax authorized by general law, or any combination of such taxes, without any corresponding limitation of its ad valorem taxing powers which would otherwise be required under such constitutional amendment.
(2) The restriction on and limitation of ad valorem taxing powers described in subparagraph (j)(1) of this Paragraph shall remain applicable with respect to proceeds received from the levy of a local sales and use tax specifically authorized by a constitutional amendment in force and effect pursuant to Article XI, Section I, Paragraph IV(a), as opposed to a local sales and use tax authorized by this Paragraph or by general law."