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03 LC 18 2010T
House Bill 3
By: Representatives Franklin of the 17th, White of the 3rd, Post 2, Joyce of the 2nd and Massey of the 24th
By: Representatives Franklin of the 17th, White of the 3rd, Post 2, Joyce of the 2nd and Massey of the 24th
A BILL TO BE
ENTITLED
AN ACT
AN ACT
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"; to provide legislative findings; to define certain terms; to
create the Federal Tax Fund in the state treasury; to provide that moneys
collected by the state for payment to the federal government shall be paid into
such fund; to provide that any private person liable for a federal tax shall pay
such tax into such fund; to provide that if the federal government sanctions the
state for failure to comply with a federal statute which the General Assembly
feels is unconstitutional, the state treasury shall withhold from payment a
certain amount of the funds due the federal government; to provide sanctions for
failure to comply with such provisions; to provide that state officials shall
comply with such provisions without regard to any action taken by the federal
government; to provide for a special session of the General Assembly; to provide
that action by the federal authorities shall constitute an action against this
state and shall be met with all necessary measures; to provide for retroactive
application; to provide for the expenditure of confiscated federal funds; to
provide for other matters relative to the foregoing; to provide an effective
date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 50 of the Official Code of Georgia Annotated, relating
to state government, is amended by inserting at the end thereof a new chapter to
read as follows:
"CHAPTER
36
50_36_1.
This article shall be known and may be cited as the 'State Sovereignty and Federal Tax Funds Act.'
50_36_2.
(a) The Tenth Amendment to the Constitution of the United States of America states that '(t)he powers not delegated to the United States by the Constitution, or prohibited by it to the States, are reserved to the States respectively, or to the people.' The General Assembly finds that the Tenth Amendment to the Constitution of the United States of America defines the total scope of federal power as being that specifically stated in the Constitution of the United States of America and no more.
(b) The General Assembly finds that the Congress of the United States has the power to lay and collect taxes pursuant only to clause 1 of Section 8 of Article 1, clauses 4 and 5 of Section 9 of Article 1, and the Sixteenth Amendment of the Constitution of the United States of America.
(c) The General Assembly finds that the federal government, its agencies or agents, or the United States Congress does not have the power under the Constitution of the United States of America to withhold from the states the benefits of those taxes by use of federal mandates that are outside the scope of the powers enumerated in the Constitution of the United States of America for the federal government.
(d) In light of the continuing unconstitutional federal mandates that withhold the benefits of the taxes, the state hereby reasserts its claim of sovereignty pursuant to the Tenth Amendment to the Constitution of the United States of America.
50_36_3.
As used in this Code section, the term:
(1) 'Consumer tax' means any tax imposed by the federal government on any beer, liquor, wine, or similar alcoholic beverage, tobacco, gasoline, or any other consumer goods.
(2) 'Director' means the director of the Office of Treasury and Fiscal Services.
(3) 'Excise tax' means any tax that forms a component of the State Highway Account.
(4) 'Federal Tax Fund' means the escrow account created by Code Section 50_36_4.
(5) 'Income tax' means any tax imposed by the federal government on incomes from whatever source derived.
(6) 'Person' means natural persons, corporations, partnerships, limited liability companies, associations, and other legal entities.
50_36_4.
(a) The Federal Tax Fund is created in the state treasury. All federal tax moneys collected by the state on behalf of the federal government shall be deposited by the director into the Federal Tax Fund.
(b) The director, on a quarterly basis shall disburse the funds to the respective appropriate federal recipient. If, as a result of state action taken pursuant to this article, the federal government denies any matching funds or grants, imposes or mandates any financial sanctions or penalties, or withholds funds resulting in a financial cost to the state, the director shall withhold from payment all or part of the quarterly disbursement otherwise disbursed or transferred to each federal recipient, per occurrence, in an amount equal to the total cumulative outstanding amount of federal sanctions, denial of any matching funds, denial of grants, or any other financial sanctions, penalties, or withholding of funds. The director shall continue to withhold all or part of the quarterly disbursement otherwise disbursed or transferred to each respective appropriate federal recipient until the total cumulative amount withheld from the federal government is equal to the total cumulative outstanding amount of federal sanctions, denial of any matching funds, denial of grants, or any other financial sanctions, penalties, or withholding of funds.
(c) Funds that the director withholds from each federal recipient shall be transferred quarterly from the Federal Tax Fund and deposited into the general fund for general use.
50_36_5.
(a) Any person liable for any federal excise, income, or consumer tax shall remit the tax when due along with the federal taxpayer number to the director for deposit into the Federal Tax Fund.
(b) All moneys collected pursuant to subsection (a) of this Code section shall be transmitted to the director who, as a fiduciary agent, shall credit the funds to the Federal Tax Fund on behalf of the person who remitted the tax.
(c) The director shall submit to the federal Internal Revenue Service the names and tax identification numbers of, and the amounts deposited by, persons liable for any federal excise, income, or consumer tax so that the Internal Revenue Service can credit the state´s taxpayers for federal tax obligations.
50_36_6.
(a) Except as provided in Code Section 50_36_4, the director shall transfer at the end of each quarter the moneys held in the fund, less any interest earned on the deposit, to the respective appropriate federal recipient in payment of the tax obligations of those persons who remitted the tax funds to the director.
(b) If the federal government imposes sanctions of any kind on the state for failing to enact legislation called for by federal mandate, a vote shall be taken in the General Assembly as to the constitutionality of the sanctions. By a simple majority vote in each house of the General Assembly, if the federal government is found to be operating beyond the scope of its constitutionally delegated powers, and therefore, unconstitutionally, the director shall be notified in writing by the Attorney General of the vote of the General Assembly, and the General Assembly shall instruct the director to carry out the procedure specified in subsection (b) of Code Section 50_36_4.
(c) Per occurrence, when the state has been legally notified in writing by the federal government that it has lifted any sanction as specified in subsection (b) of Code Section 50_36_4, then, pursuant to subsection (a) of this Code section, the director shall resume disbursement of funds to the respective appropriate federal recipients at the end of the next upcoming quarter.
50_36_7.
Any person liable for any federal excise, income, or consumer tax who fails to forward federal tax moneys to the director shall be subject to penalties assessed pursuant to applicable federal or state statutes.
50_36_8.
The Governor, members of the General Assembly, judges, the Attorney General, the Secretary of State, the director, the state auditor, and all other state officers and employees shall implement this article regardless of any sanctions, threats, court action, or other pressure brought to bear by federal authorities.
50_36_9.
If the federal government imposes any sanctions on the state while the General Assembly is not in session, the Governor shall call the General Assembly into special session for the purpose of implementing subsection (b) of Code Section 50_36_6.
50_36_10.
Any actions by the federal government, its agencies or agents, or the Congress of the United States against any person in this state for compliance with this article shall be considered an action against this state, and this state shall make an appropriate response to cause the action to cease and desist. This state shall take all necessary measures to recover from the federal government, its agencies or agents, or the Congress of the United States the reasonable costs of defending the action.
50_36_11.
This article shall apply to federal taxes collected after the date on which this article takes effect, and, because the Constitution of the United States of America is and has always been the supreme law of the land, this article shall be enforced retroactively to repeal any unconstitutional federal mandates that have been imposed on the state.
50_36_12.
The General Assembly, by simple majority vote in both houses, shall determine how the moneys transferred from the Federal Tax Fund to the general fund, including accrued interest, are to be used for the benefit of the people of the state. These moneys shall be used for the benefit of the people of Georgia only."
This article shall be known and may be cited as the 'State Sovereignty and Federal Tax Funds Act.'
50_36_2.
(a) The Tenth Amendment to the Constitution of the United States of America states that '(t)he powers not delegated to the United States by the Constitution, or prohibited by it to the States, are reserved to the States respectively, or to the people.' The General Assembly finds that the Tenth Amendment to the Constitution of the United States of America defines the total scope of federal power as being that specifically stated in the Constitution of the United States of America and no more.
(b) The General Assembly finds that the Congress of the United States has the power to lay and collect taxes pursuant only to clause 1 of Section 8 of Article 1, clauses 4 and 5 of Section 9 of Article 1, and the Sixteenth Amendment of the Constitution of the United States of America.
(c) The General Assembly finds that the federal government, its agencies or agents, or the United States Congress does not have the power under the Constitution of the United States of America to withhold from the states the benefits of those taxes by use of federal mandates that are outside the scope of the powers enumerated in the Constitution of the United States of America for the federal government.
(d) In light of the continuing unconstitutional federal mandates that withhold the benefits of the taxes, the state hereby reasserts its claim of sovereignty pursuant to the Tenth Amendment to the Constitution of the United States of America.
50_36_3.
As used in this Code section, the term:
(1) 'Consumer tax' means any tax imposed by the federal government on any beer, liquor, wine, or similar alcoholic beverage, tobacco, gasoline, or any other consumer goods.
(2) 'Director' means the director of the Office of Treasury and Fiscal Services.
(3) 'Excise tax' means any tax that forms a component of the State Highway Account.
(4) 'Federal Tax Fund' means the escrow account created by Code Section 50_36_4.
(5) 'Income tax' means any tax imposed by the federal government on incomes from whatever source derived.
(6) 'Person' means natural persons, corporations, partnerships, limited liability companies, associations, and other legal entities.
50_36_4.
(a) The Federal Tax Fund is created in the state treasury. All federal tax moneys collected by the state on behalf of the federal government shall be deposited by the director into the Federal Tax Fund.
(b) The director, on a quarterly basis shall disburse the funds to the respective appropriate federal recipient. If, as a result of state action taken pursuant to this article, the federal government denies any matching funds or grants, imposes or mandates any financial sanctions or penalties, or withholds funds resulting in a financial cost to the state, the director shall withhold from payment all or part of the quarterly disbursement otherwise disbursed or transferred to each federal recipient, per occurrence, in an amount equal to the total cumulative outstanding amount of federal sanctions, denial of any matching funds, denial of grants, or any other financial sanctions, penalties, or withholding of funds. The director shall continue to withhold all or part of the quarterly disbursement otherwise disbursed or transferred to each respective appropriate federal recipient until the total cumulative amount withheld from the federal government is equal to the total cumulative outstanding amount of federal sanctions, denial of any matching funds, denial of grants, or any other financial sanctions, penalties, or withholding of funds.
(c) Funds that the director withholds from each federal recipient shall be transferred quarterly from the Federal Tax Fund and deposited into the general fund for general use.
50_36_5.
(a) Any person liable for any federal excise, income, or consumer tax shall remit the tax when due along with the federal taxpayer number to the director for deposit into the Federal Tax Fund.
(b) All moneys collected pursuant to subsection (a) of this Code section shall be transmitted to the director who, as a fiduciary agent, shall credit the funds to the Federal Tax Fund on behalf of the person who remitted the tax.
(c) The director shall submit to the federal Internal Revenue Service the names and tax identification numbers of, and the amounts deposited by, persons liable for any federal excise, income, or consumer tax so that the Internal Revenue Service can credit the state´s taxpayers for federal tax obligations.
50_36_6.
(a) Except as provided in Code Section 50_36_4, the director shall transfer at the end of each quarter the moneys held in the fund, less any interest earned on the deposit, to the respective appropriate federal recipient in payment of the tax obligations of those persons who remitted the tax funds to the director.
(b) If the federal government imposes sanctions of any kind on the state for failing to enact legislation called for by federal mandate, a vote shall be taken in the General Assembly as to the constitutionality of the sanctions. By a simple majority vote in each house of the General Assembly, if the federal government is found to be operating beyond the scope of its constitutionally delegated powers, and therefore, unconstitutionally, the director shall be notified in writing by the Attorney General of the vote of the General Assembly, and the General Assembly shall instruct the director to carry out the procedure specified in subsection (b) of Code Section 50_36_4.
(c) Per occurrence, when the state has been legally notified in writing by the federal government that it has lifted any sanction as specified in subsection (b) of Code Section 50_36_4, then, pursuant to subsection (a) of this Code section, the director shall resume disbursement of funds to the respective appropriate federal recipients at the end of the next upcoming quarter.
50_36_7.
Any person liable for any federal excise, income, or consumer tax who fails to forward federal tax moneys to the director shall be subject to penalties assessed pursuant to applicable federal or state statutes.
50_36_8.
The Governor, members of the General Assembly, judges, the Attorney General, the Secretary of State, the director, the state auditor, and all other state officers and employees shall implement this article regardless of any sanctions, threats, court action, or other pressure brought to bear by federal authorities.
50_36_9.
If the federal government imposes any sanctions on the state while the General Assembly is not in session, the Governor shall call the General Assembly into special session for the purpose of implementing subsection (b) of Code Section 50_36_6.
50_36_10.
Any actions by the federal government, its agencies or agents, or the Congress of the United States against any person in this state for compliance with this article shall be considered an action against this state, and this state shall make an appropriate response to cause the action to cease and desist. This state shall take all necessary measures to recover from the federal government, its agencies or agents, or the Congress of the United States the reasonable costs of defending the action.
50_36_11.
This article shall apply to federal taxes collected after the date on which this article takes effect, and, because the Constitution of the United States of America is and has always been the supreme law of the land, this article shall be enforced retroactively to repeal any unconstitutional federal mandates that have been imposed on the state.
50_36_12.
The General Assembly, by simple majority vote in both houses, shall determine how the moneys transferred from the Federal Tax Fund to the general fund, including accrued interest, are to be used for the benefit of the people of the state. These moneys shall be used for the benefit of the people of Georgia only."
SECTION 2.
This Act shall become effective upon its approval by the
Governor or upon its becoming law without such approval.
SECTION 3.
All laws and parts of laws in conflict with this Act are
repealed.