HB709.html

To amend Title 28 of the Official Code of Georgia Annotated, relating to the General Assembly, Title 36 of the Official Code of Georgia Annotated, relating to local government, and Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, so as to enact the "State and Local Taxation, Financing, and Service Delivery Revision Act of 2004"; to provide for a short title; to provide for the comprehensive revision of provisions relating to state and local taxation, financing, and service delivery; to change certain provisions regarding the function of the Georgia Commission on Interstate Cooperation; to change certain provisions regarding the status of the Council of State Governments and certain related organizations; to change certain provisions regarding the homestead exemption by qualified disabled veterans, filing requirements, periodic substantiation of eligibility, and persons eligible without application; to change certain provisions regarding limitations with respect to local sales and use taxes; to provide for certain exemptions; to change certain provisions regarding the joint county and municipal sales and use tax and provide for an optional rate increase to 2 percent with respect to imposition by certain consolidated governments; to provide for imposition of such tax at the rate of 2 percent by consolidated governments; to provide for procedures, conditions, and limitations; to provide for reduction or termination; to provide for additional procedures, conditions, and limitations with respect to certain water and sewer projects or costs with respect to the special county 1 percent sales and use tax; to provide for the levy and collection of a municipal water and sewer projects or costs sales and use tax; to provide for definitions; to provide for the rate and manner of imposition of such tax; to provide for applicability to certain sales; to provide for powers, duties, and authority of municipal governing authorities with respect to such tax; to provide for powers, duties, and authority of the state revenue commissioner with respect to such tax; to provide for collection and administration of such tax; to provide for returns; to provide for distribution and expenditure of proceeds; to provide for a method for discontinuation of such tax; to provide for comprehensive provisions to provide funding to local governments for service delivery costs through certain sales and use taxation; to provide for comprehensive provisions to address changes in land use classification which increase service delivery and infrastructure costs to local government; to provide for the creation of special districts; to provide a special district sales and use tax; to provide for definitions; to provide for the rate and manner of imposition of such tax; to provide for collection and administration of such tax; to provide for the issuance of general obligation debt for certain projects; to provide for use of the proceeds of such tax; to provide for returns; to provide for distribution and expenditure of proceeds; to change certain provisions regarding annexation; to change certain provisions regarding land use classification objections; to require annual publication of certain information regarding collection and expenditure of the proceeds of the special purpose 1 percent sales and use tax; to exempt from ad valorem taxation certain motor vehicles owned by persons who have been awarded the Medal of Honor; to provide for related matters; to provide for effective dates; to provide for applicability; to repeal conflicting laws; and for other purposes.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended in Code Section 48-5-48, relating to homestead exemption by qualified disabled veterans, filing requirements, periodic substantiation of eligibility, and persons eligible without application, by striking in their entirety subsections (b) and (c) and inserting in lieu thereof the following:
"(b) Any disabled veteran as defined in any paragraph of subsection (a) of this Code section who is a citizen and resident of Georgia is granted an exemption of the greater of $32,500.00 or the maximum amount which may be granted to a disabled veteran under Section 2102 of Title 38 of the United States Code, as amended, on his or her homestead which such veteran owns and actually occupies as a residence and homestead, such exemption being from all ad valorem taxation for state, county, municipal, and school purposes. As of January 1, ~~1999~~ 2004, the maximum amount which may be granted to a disabled veteran under the above-stated federal law is ~~$43,000.00~~ $50,000.00. The value of all property in excess of the exempted amount cited above shall remain subject to taxation. The unremarried surviving spouse or minor children of any such disabled veteran as defined in this Code section shall also be entitled to an exemption of the greater of $32,500.00 or the maximum amount which may be granted to a disabled veteran under Section 2102 of Title 38 of the United States Code, as amended, on the homestead so long as the unremarried surviving spouse or minor children continue actually to occupy the home as a residence and homestead, such exemption being from all ad valorem taxation for state, county, municipal, and school purposes. As of January 1, ~~1999~~ 2004, the maximum amount which may be granted to the unremarried surviving spouse or minor children of any such disabled veteran under the above-stated federal law is ~~$43,000.00~~ $50,000.00. The value of all property in excess of such exemption granted to such unremarried surviving spouse or minor children shall remain subject to taxation.
(c)(1) Any disabled veteran qualifying pursuant to paragraph (1) or (2) of subsection (a) of this Code section for the homestead exemption provided for in this Code section shall file with the tax commissioner or tax receiver a letter from the Department of Veterans Affairs or the Department of Veterans Service stating the qualifying disability.
(2) Any disabled veteran qualifying pursuant to paragraph (3) of subsection (a) of this Code section for the homestead exemption provided for in this Code section shall file with the tax commissioner or tax receiver a copy of his DD form 214 (discharge papers from his military records) along with a letter from a doctor who is licensed to practice medicine in this state stating that he is disabled due to loss or loss of use of both lower extremities such as to preclude locomotion without the aid of braces, crutches, canes, or a wheelchair; due to blindness in both eyes, having only light perception, together with the loss or loss of use of one lower extremity; or due to the loss or loss of use of one lower extremity together with residuals of organic disease or injury which so affect the functions of balance or propulsion as to preclude locomotion without resort to a wheelchair. Prior to approval of an exemption, a county board of tax assessors may require the applicant to provide not more than two additional doctors´ letters if the board is in doubt as to the applicant´s eligibility for the exemption.
(3) Any disabled veteran qualifying pursuant to paragraph (4) of subsection (a) of this Code section for the homestead exemption provided for in this Code section shall file with the tax commissioner or tax receiver a letter from a doctor who is licensed to practice medicine in this state stating the qualifying disability. Prior to approval of an exemption, a county board of tax assessors may require the applicant to provide not more than two additional doctors´ letters if the board is in doubt as to the applicant´s eligibility for the exemption.
(4) Any disabled veteran qualifying pursuant to paragraph (5) of subsection (a) of this Code section for the homestead exemption provided for in this Code section shall file with the tax commissioner or tax receiver a letter from the Department of Veterans Affairs or the Department of Veterans Service stating the eligibility for such housing assistance."

Said title is further amended by striking subsections (b) and (c) of Code Section 48-8-6, relating to limitations on the maximum amount of local sales and use taxes, and inserting in their place new subsections (b), (c), and (d) to read as follows:
"(b) There shall not be imposed in any jurisdiction in this state or on any transaction in this state local sales taxes, local use taxes, or local sales and use taxes in excess of 2 percent. For purposes of this prohibition, the taxes affected are any sales tax, use tax, or sales and use tax which is levied in an area consisting of less than the entire state, however authorized, including such taxes authorized by or pursuant to constitutional amendment, except that the following taxes shall not count toward or be subject to such 2 percent limitation:
(1) A sales and use tax for educational purposes exempted from such limitation under Article VIII, Section VI, Paragraph IV of the Constitution;
(2) Any tax levied for purposes of a metropolitan area system of public transportation, as authorized by the amendment to the Constitution set out at Georgia Laws, 1964, page 1008; the continuation of such amendment under Article XI, Section I, Paragraph IV(d) of the Constitution; and the laws enacted pursuant to such constitutional amendment; provided, however, that the exception provided for under this paragraph shall only apply in a county in which a tax is being imposed under subparagraph (a)(1)(D) of Code Section 48-8-111 ~~solely~~ in whole or in part for the purpose or purposes of a water capital outlay project or projects, a sewer capital outlay project or projects, a water and sewer capital outlay project or projects, ~~or a combination of such projects and such exception~~ water and sewer projects and costs as defined under paragraph (3) of Code Section 48-8-200, or any combination thereof and with respect to which the county has entered into an intergovernmental contract with a municipality, in which the average waste-water system flow of such municipality is not less than 85 million gallons per day, allocating proceeds to such municipality to be used solely for water and sewer projects and costs as defined under paragraph (3) of Code Section 48-8-200. The exception provided for under this paragraph shall apply only during the period the tax under said subparagraph (a)(1)(D) is in effect. The exception provided for under this paragraph shall not apply in any county in which a tax is being imposed under Article 2A of this chapter;
(3) In the event of a rate increase imposed pursuant to Code Section 48-8-96, only the amount in excess of the initial 1 percent sales and use tax and in the event of a newly imposed tax pursuant to Code Section 48-8-96, only the amount in excess of a 1 percent sales and use tax;
(4) A sales and use tax levied under Article 4 of this chapter.
If the imposition of any otherwise authorized local sales tax, local use tax, or local sales and use tax would result in a tax rate in excess of that authorized by this subsection, then such otherwise authorized tax may not be imposed.
(c) Where the exception specified in paragraph (2) of subsection (b) of this Code section applies, the tax imposed under subparagraph (a)(1)(D) of Code Section 48-8-111 shall not apply to:
(1) ~~The furnishing for value to the public of any room or rooms, lodgings, or accommodations which is subject to taxation under Article 3 of Chapter 13 of this title~~ Reserved; and
(2) The sale of motor vehicles.
(d) Where the exception specified in paragraph (2) of subsection (b) of this Code section applies, on and after July 1, 2007, the aggregate amount of all excise taxes imposed under paragraph (5) of subsection (a) of Code Section 48-13-51 and all sales and use taxes shall not exceed 14 percent."

48-8-200.
As used in this article, the term:
(1) 'Building and construction materials' means all building and construction materials, supplies, fixtures, or equipment, any combination of such items, and any other leased or purchased articles when the materials, supplies, fixtures, equipment, or articles are to be utilized or consumed during construction or are to be incorporated into construction work pursuant to a bona fide written construction contract.
(2) 'Dealer' means a dealer as defined in paragraph (3) of Code Section 48-8-2.
(3) 'Municipality' means a municipality in which the average waste-water flow of such municipality is not less than 85 million gallons per day.
(4) 'Water and sewer projects and costs' means:
(A) Any capital outlay project or projects for the development, storage, treatment, purification, or distribution of water;
(B) Any capital outlay project or projects for storm-water and sewage collection and disposal systems;
(C)(i)With respect to any project or projects provided for under subparagraph (A) or (B) of this paragraph:
(I) Any cost of project or cost of any project as defined under paragraph (3) of Code Section 50-23-4; and
(II) Any maintenance and operation costs.
(ii) In no event shall any expenditure of tax proceeds pursuant to this subparagraph exceed annually an amount equal to the annual debt service payments of such municipality with respect to revenue bond indebtedness incurred for drinking water projects and storm-water and sewage collection and disposal projects; or
(D) Any combination of any of the foregoing.

48-8-201.
(a)(1) In any county in which the provisions of paragraph (2) of subsection (b) of Code Section 48-8-6 will be applicable if the tax under Part 1 of Article 3 of this chapter is imposed pursuant to subparagraph (a)(1)(D) of Code Section 48-8-111 in whole or in part for the purpose or purposes of a water capital outlay project or projects, a sewer capital outlay project or projects, a water and sewer capital outlay project or projects, or a combination of such projects, the governing authority of a municipality, the majority of which is located wholly or partially in such county, may deliver or mail a written copy of a resolution of such municipal governing authority calling for the imposition by the county of the tax under Part 1 of Article 3 of this chapter pursuant to subparagraph (a)(1)(D) of Code Section 48-8-111 in whole or in part for the purpose or purposes of a water capital outlay project or projects, a sewer capital outlay project or projects, a water and sewer capital outlay project or projects, water and sewer projects and costs, or any combination thereof.
(2) Within ten days following the date of delivery of such resolution to the governing authority of such county, the governing authorities of such county and municipality may enter into an intergovernmental contract as authorized by Article IX, Section III of the Constitution which shall specify the allocation of the proceeds of the tax between such county and municipality according to the ratio the population of such municipality bears to the population of such county according to the United States decennial census of 2000 or any future such census so that such municipality´s share of the total net proceeds shall be the percentage of the total population of such municipality divided by the total population of such county. Such intergovernmental contract shall specify that the proceeds allocated to the municipality shall only be expanded for water and sewer projects and costs.
(3) Immediately following the entering into of the intergovernmental contract under paragraph (2) of this subsection, the governing authority of such county may select the next practicable date authorized under Code Section 21-2-540 for conducting a special election on the question of imposing such tax under Part 1 of Article 3 of this chapter. The governing authority of such county shall notify the county election superintendent by forwarding to the superintendent a copy of the resolution of the governing authority of such municipality calling for the imposition of the tax in such county. Following receipt of the resolution, the election superintendent shall issue the appropriate call for an election for the purpose of submitting the question of the imposition of the tax to the voters of such county in the manner specified in Code Section 48-8-111. If approved in such referendum, the tax shall be levied and imposed as provided in this Code section and Part 1 of Article 3 of this chapter.
(b) If the governing authority of the county takes no action under paragraph (2) or (3) of subsection (a) of this Code section, it shall provide notice thereof by resolution to the governing authority of the municipality not later than ten days following the date of delivery of such municipality´s resolution to the county under subsection (a) of this Code section. Upon receipt by the governing authority of the municipality of such county resolution or if timely notice of no action is not provided by the governing authority of the county to the governing authority of the municipality or if the county referendum is conducted but is not approved by the voters, the governing authority of any municipality in this state may, subject to the requirement of referendum approval and the other requirements of this article, immediately commence proceedings to seek to impose within the municipality a special sales and use tax for a limited period of time for the purpose of funding water and sewer projects and costs. Any tax imposed under this article shall be at the rate of 1 percent. Except as otherwise provided in this article, a tax imposed under this article shall correspond to the tax imposed by Article 1 of this chapter.
(c) In the event a tax imposed under this article is imposed only by the municipality:
(1) No item or transaction which is not subject to taxation under Article 1 of this chapter shall be subject to a tax imposed under this article, except that a tax imposed under this article shall apply to:
(A) Sales of motor fuels as that term is defined by Code Section 48-9-2;
(B) The sale of food and beverages as provided for in division (57)(D)(i) of Code Section 48-8-3;
(C) The sale of natural or artificial gas used directly in the production of electricity which is subsequently sold, notwithstanding paragraph (70) of Code Section 48-8-3; and
(D) The furnishing for value to the public of any room or rooms, lodgings, or accommodations which is subject to taxation under Article 3 of Chapter 13 of this title; and
(2) A tax imposed under this article shall not apply to the sale of motor vehicles.
(d) On and after July 1, 2007, the aggregate amount of all excise taxes imposed under paragraph (5) of subsection (a) of Code Section 48-13-51 and all sales and use taxes shall not exceed 14 percent.

48-8-202.
(a) A municipal governing authority voting to impose the tax authorized by this article shall notify the municipal election superintendent by forwarding to the superintendent a copy of the resolution or ordinance of the municipal governing authority calling for the imposition of the tax. Such ordinance or resolution shall specify the following:
(1) The maximum period of time of the tax, to be stated in calendar years or calendar quarters and not to exceed four years;
(2) The aggregate maximum cost of the project or projects and maintenance and operation costs which will be funded from the proceeds of the tax, which aggregate maximum cost shall also be the maximum amount of net proceeds to be raised by the tax; and
(3) If general obligation debt is to be issued in conjunction with the imposition of the tax, as authorized by this article, the principal amount of the debt to be issued, the interest rate or rates or the maximum interest rate or rates which such debt is to bear, and the amount of principal to be paid in each year during the life of the debt.
(b) Upon receipt of the resolution or ordinance, the municipal election superintendent shall issue the call for an election for the purpose of submitting the question of the imposition of the tax to the voters of the municipality. The municipal election superintendent shall issue the call and shall conduct the election on a date and in the manner authorized under Code Section 21-2-540. The municipal election superintendent shall cause the date and purpose of the election to be published once a week for four weeks immediately preceding the date of the election in the legal organ of the county in which the majority of the municipal population resides or in a newspaper having general circulation in the municipality at least equal to that of the legal organ. If general obligation debt is to be issued in conjunction with the imposition of the tax, the notice published by the municipal election superintendent shall also include, in such form as may be specified by the municipal governing authority, the principal amount of the debt, the rate or rates of interest or the maximum rate or rates of interest the debt will bear, and the amount of principal to be paid in each year during the life of the debt; and such publication of notice by the municipal election superintendent shall take the place of the notice otherwise required by Code Section 36-80-11 or by subsection (b) of Code Section 36-82-1, which notice shall not be required.
(c)(1) The ballot shall have written or printed thereon the following:

(2) If debt is to be issued, the ballot shall also have written or printed thereon, following the language specified by paragraph (1) of this subsection, the following:
'If imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of ___________ in the principal amount of $___________ for the above purpose.'
(d) All persons desiring to vote in favor of imposing the tax shall vote 'Yes' and all persons opposed to levying the tax shall vote 'No.' If more than one-half of the votes cast are in favor of imposing the tax, then the tax shall be imposed as provided in this article; otherwise, the tax shall not be imposed and the question of imposing the tax shall not again be submitted to the voters of the municipality until after 12 months immediately following the month in which the election was held; provided, however, that if an election date authorized under Code Section 21-2-540 occurs during the twelfth month immediately following the month in which such election was held, the question of imposing the tax may be submitted to the voters of the municipality on such date. The municipal election superintendent shall hold and conduct the election under the same rules and regulations as govern special elections. The municipal election superintendent shall canvass the returns, declare the result of the election, and certify the result to the Secretary of State and to the commissioner. The expense of the election shall be paid from municipal funds.
(e)(1) If the proposal includes the authority to issue general obligation debt and if more than one-half of the votes cast are in favor of the proposal, then the authority to issue such debt in accordance with Article IX, Section V, Paragraph I of the Constitution is given to the proper officers of the municipality; otherwise such debt shall not be issued. If the authority to issue such debt is so approved by the voters, then such debt may be issued without further approval by the voters.
(2) If the issuance of general obligation debt is included and approved as provided in this Code section, then the governing authority of the municipality may incur such debt either through the issuance and validation of general obligation bonds or through the execution of a promissory note or notes or other instrument or instruments. If such debt is incurred through the issuance of general obligation bonds, such bonds and their issuance and validation shall be subject to Articles 1 and 2 of Chapter 82 of Title 36 except as specifically provided otherwise in this article. If such debt is incurred through the execution of a promissory note or notes or other instrument or instruments, no validation proceedings shall be necessary and such debt shall be subject to Code Sections 36-80-10 through 36-80-14 except as specifically provided otherwise in this article. In either event, such general obligation debt shall be payable first from the separate account in which are placed the proceeds received by the municipality from the tax authorized by this article. Such general obligation debt shall, however, constitute a pledge of the full faith, credit, and taxing power of the municipality; and any liability on such debt which is not satisfied from the proceeds of the tax authorized by this article shall be satisfied from the general funds of the municipality.

48-8-203.
(a)(1) If the imposition of the tax is approved by referendum, the tax shall be imposed on the first day of the next succeeding calendar quarter which begins more than 70 days after the date of the election at which the tax was approved by the voters.
(2) With respect to services which are regularly billed on a monthly basis, however, the resolution or ordinance imposing the tax shall become effective with respect to and the tax shall apply to the first regular billing period coinciding with or following the effective date specified in paragraph (1) of this subsection. A certified copy of the ordinance or resolution imposing the tax shall be forwarded to the commissioner so that it will be received within five business days after certification of the election results.
(b) The tax shall cease to be imposed on the earliest of the following dates:
(1) If the resolution or ordinance calling for the imposition of the tax provided for the issuance of general obligation debt and such debt is the subject of validation proceedings, as of the end of the first calendar quarter ending more than 80 days after the date on which a court of competent jurisdiction enters a final order denying validation of such debt;
(2) On the final day of the maximum period of time specified for the imposition of the tax; or
(3) As of the end of the calendar quarter during which the commissioner determines that the tax will have raised revenues sufficient to provide to the municipality net proceeds equal to or greater than the amount specified as the maximum amount of net proceeds to be raised by the tax.
(c)(1) No municipality shall impose at any time more than a single 1 percent tax under this article.
(2) A municipality in which a tax authorized by this article is in effect may, while the tax is in effect, adopt a resolution or ordinance calling for a reimposition of a tax as authorized by this article upon the termination of the tax then in effect; and a referendum may be held for this purpose while the tax is in effect. Proceedings for such reimposition shall not be conducted more than two times; shall be in the same manner as proceedings for the initial imposition of the tax as provided for in Code Section 48-8-202 and shall be solely within the discretion of the governing authority of the municipality without regard to any requirement of county participation otherwise specified under subsection (a) of Code Section 48-8-201. Such newly authorized tax shall not be imposed until the expiration of the tax then in effect; provided, however, that in the event of emergency conditions under which a municipality is unable to conduct a referendum so as to continue the tax then in effect without interruption, the commissioner may, if feasible administratively, waive the limitations of subsection (a) of this Code section to the minimum extent necessary so as to permit the reimposition of a tax, if otherwise approved as required under this Code section, without interruption, upon the expiration of the tax then in effect.
(3) Following the expiration of a tax under this article which has been renewed two times under paragraph (2) of this subsection, a municipality shall not be authorized to initiate proceedings for the reimposition of a tax under this article or to reimpose such tax.

48-8-204.
A tax levied pursuant to this article shall be exclusively administered and collected by the commissioner for the use and benefit of the municipality imposing the tax. Such administration and collection shall be accomplished in the same manner and subject to the same applicable provisions, procedures, and penalties provided in Article 1 of this chapter; provided, however, that all moneys collected from each taxpayer by the commissioner shall be applied first to such taxpayer´s liability for taxes owed the state; and provided, further, that the commissioner may rely upon a representation by or in behalf of the municipality or the Secretary of State that such a tax has been validly imposed, and the commissioner and the commissioner´s agents shall not be liable to any person for collecting any such tax which was not validly imposed. Dealers shall be allowed a percentage of the amount of the tax due and accounted for and shall be reimbursed in the form of a deduction in submitting, reporting, and paying the amount due if such amount is not delinquent at the time of payment. The deduction shall be at the rate and subject to the requirements specified under subsections (b) through (f) of Code Section 48-8-50.

48-8-205.
Each sales and use tax return remitting sales and use taxes collected under this article shall separately identify the location of each retail establishment at which any of the sales and use taxes remitted were collected and shall specify the amount of sales and the amount of taxes collected at each establishment for the period covered by the return in order to facilitate the determination by the commissioner that all sales and use taxes imposed by this article are collected and distributed according to situs of sale.

48-8-206.
The proceeds of the tax collected by the commissioner in each municipality under this article shall be disbursed as soon as practicable after collection as follows:
(1) One percent of the amount collected shall be paid into the general fund of the state treasury in order to defray the costs of administration; and
(2) Except as otherwise provided in subsection (b) of this Code section, the remaining proceeds of the tax shall be distributed to the governing authority of the municipality imposing the tax.

48-8-207.
Where a local sales or use tax has been paid with respect to tangible personal property by the purchaser either in another local tax jurisdiction within the state or in a tax jurisdiction outside the state, the tax may be credited against the tax authorized to be imposed by this article upon the same property. If the amount of sales or use tax so paid is less than the amount of the use tax due under this article, the purchaser shall pay an amount equal to the difference between the amount paid in the other tax jurisdiction and the amount due under this article. The commissioner may require such proof of payment in another local tax jurisdiction as the commissioner deems necessary and proper. No credit shall be granted, however, against the tax imposed under this article for tax paid in another jurisdiction if the tax paid in such other jurisdiction is used to obtain a credit against any other local sales and use tax levied in the municipality or in a special district which includes the municipality; and taxes so paid in another jurisdiction shall be credited first against the tax levied under Article 2 of this chapter, if applicable, then against the tax levied under Article 3 of this chapter, if applicable, then against the tax levied under Article 2A of this chapter, if applicable, and then against the tax levied under this article.

48-8-208.
No tax provided for in this article shall be imposed upon the sale of tangible personal property which is ordered by and delivered to the purchaser at a point outside the geographical area of the municipality in which the tax is imposed regardless of the point at which title passes, if the delivery is made by the seller´s vehicle, United States mail, or common carrier or by private or contract carrier licensed by the Federal Highway Administration or the Georgia Public Service Commission.

48-8-209.
No tax provided for in this article shall be imposed upon the sale or use of building and construction materials when the contract pursuant to which the materials are purchased or used was advertised for bid prior to the voters´ approval of the levy of the tax and the contract was entered into as a result of a bid actually submitted in response to the advertisement prior to approval of the levy of the tax.

48-8-210.
The commissioner shall have the power and authority to promulgate such rules and regulations as shall be necessary for the effective and efficient administration and enforcement of the collection of the tax authorized to be imposed by this article.

48-8-211.
The tax authorized by this article shall be in addition to any other local sales and use tax. The imposition of any other local sales and use tax within a county, municipality, or special district shall not affect the authority of a municipality to impose the tax authorized by this article and the imposition of the tax authorized by this article shall not affect the imposition of any otherwise authorized local sales and use tax within the county, municipality, or special district.

48-8-212.
(a) The proceeds received from the tax authorized by this article shall be used by the municipality exclusively for:
(1) Water and sewer projects and costs;
(2) The repayment of general obligation indebtedness incurred in conjunction with the imposition of the tax authorized by this article; or
(3) The repayment of any loans made to such municipality with respect to such water and sewer projects and costs. Such proceeds shall be kept in a separate account from other funds of the municipality and shall not in any manner be commingled with other funds of the municipality prior to expenditure.
(b) The governing authority of the municipality shall maintain a record of each and every water and sewer project and cost for which the proceeds of the tax are used. In each annual audit a schedule shall be included which shows for each ongoing such project the original estimated cost, the current estimated cost if it is not the original estimated cost, amounts expended in prior years, and amounts expended in the current year. The auditor shall verify and test expenditures sufficient to provide assurances that the schedule is fairly presented in relation to the financial statements. The auditor´s report on the financial statements shall include an opinion, or disclaimer of opinion, as to whether the schedule is presented fairly in all material respects in relation to the financial statements taken as a whole.
(c) No general obligation debt shall be issued in conjunction with the imposition of the tax unless the municipal governing authority determines that, and if the debt is to be validated it is demonstrated in the validation proceedings that, during each year in which any payment of principal or interest on the debt comes due the municipality will receive from the tax authorized by this article net proceeds sufficient to fully satisfy such liability. General obligation debt issued under this article shall be payable first from the separate account in which are placed the proceeds received by the municipality from the tax authorized by this article. Such debt, however, shall constitute a pledge of the full faith, credit, and taxing power of the municipality; and any liability on said debt which is not satisfied from the proceeds of the tax authorized by this article shall be satisfied from the general funds of the municipality.
(d) The resolution or ordinance calling for imposition of the tax authorized by this article may specify that all of the proceeds of the tax will be used for payment of general obligation debt issued in conjunction with the imposition of the tax. If the resolution or ordinance so provides, then such proceeds shall be used solely for such purpose except as provided in subsection (f) of this Code section.
(e) The resolution or ordinance calling for the imposition of the tax authorized by this article may specify that a part of the proceeds of the tax will be used for payment of general obligation debt issued in conjunction with the imposition of the tax. In such a case no part of the net proceeds from the tax received in any year shall be used for other water and sewer projects until all debt service requirements of the general obligation debt for that year have first been satisfied from the account in which the proceeds of the tax are placed.
(f)(1)(A) If the proceeds of the tax are specified to be used solely for the purpose of payment of general obligation debt issued in conjunction with the imposition of the tax, then any net proceeds of the tax in excess of the amount required for final payment of such debt shall be subject to and applied as provided in paragraph (2) of this subsection.
(B) If the municipality receives from the tax net proceeds in excess of the maximum cost of the project or projects calling for the imposition of the tax or in excess of the actual cost of such project or projects, then such excess proceeds shall be subject to and applied as provided in paragraph (2) of this subsection.
(C) If the tax is terminated under paragraph (1) of subsection (b) of Code Section 48-8-203 by reason of denial of validation of debt, then all net proceeds received by the municipality from the tax shall be excess proceeds subject to paragraph (2) of this subsection.
(2) Excess proceeds subject to this subsection shall be used solely for the purpose of reducing any indebtedness of the municipality other than indebtedness incurred pursuant to this article. If there is no such other indebtedness or, if the excess proceeds exceed the amount of any such other indebtedness, then the excess proceeds shall next be paid into the general fund of the municipality, it being the intent that any funds so paid into the general fund of the municipality be used for the purpose of reducing ad valorem taxes."

Said title is further amended by striking Code Section 48-8-110, relating to authorization for the levy of the special county sales and use tax, and inserting in lieu thereof the following:
"48-8-110.
As used in this part, the term:
(1) 'Capital outlay project' means major, permanent, or long-lived improvements or betterments, such as land and structures, such as would be properly chargeable to a capital asset account and as distinguished from current expenditures and ordinary maintenance expenses. Such term shall include, but not be limited to, roads, streets, bridges, police cars, fire trucks, ambulances, garbage trucks, and other major equipment.
(2) 'County-wide project' means a capital outlay project or projects as defined in paragraph (1) of this Code section of the county for the use or benefit of the citizens of the entire county and is further defined as follows:
(A) 'Level one county-wide project' means a county-wide project or projects of the county to carry out functions on behalf of the state and is limited to a county courthouse; a county administrative building primarily for county constitutional officers or elected officials; a county or regional jail, correctional institution, or other detention facility; a county health department facility; or any combination of such projects; and
(B) 'Level two county-wide project' means a county-wide project or projects of the county or one or more municipalities, other than a level one county-wide project, which project or projects are to be owned or operated or both either by the county, one or more municipalities, or any combination thereof.
(3) 'Intergovernmental agreement' means a contract entered into pursuant to Article XI, Section III, Paragraph I of the Constitution between a county and one or more qualified municipalities located within the special district containing a combined total of no less than 50 percent of the aggregate municipal population located within the special district.
(4) 'Qualified municipality' means only those incorporated municipalities which provide at least three of the following services, either directly or by contract:
(A) Law enforcement;
(B) Fire protection (which may be furnished by a volunteer fire force) and fire safety;
(C) Road and street construction or maintenance;
(D) Solid waste management;
(E) Water supply or distribution or both;
(F) Waste-water treatment;
(G) Storm-water collection and disposal;
(H) Electric or gas utility services;
(I) Enforcement of building, housing, plumbing, and electrical codes and other similar codes;
(J) Planning and zoning;
(K) Recreational facilities; or
(L) Library.

~~48-8-110.~~ 48-8-110.1.
(a) Pursuant to the authority granted by Article IX, Section II, Paragraph VI of the Constitution of this state, there are created within this state 159 special districts. The geographical boundary of each county shall correspond with and shall be conterminous with the geographical boundary of the 159 special districts.
(b) When the imposition of a special district sales and use tax is authorized according to the procedures provided in this part within a special district, the ~~The~~ governing authority of any county in this state may, subject to the requirement of referendum approval and the other requirements of this ~~article~~ part, impose within the ~~county~~ special district a special sales and use tax for a limited period of time which tax shall be known as the county special purpose local option sales tax.
(c) Any tax imposed under this ~~article~~ part shall be at the rate of 1 percent. Except as to rate, a tax imposed under this ~~article~~ part shall correspond to the tax imposed by Article 1 of this chapter. No item or transaction which is not subject to taxation under Article 1 of this chapter shall be subject to a tax imposed under this ~~article~~ part, except that a tax imposed under this ~~article~~ part shall apply to sales of motor fuels as that term is defined by Code Section 48-9-2 and shall be applicable to the sale of food and beverages as provided for in division (57)(D)(i) of Code Section 48-8-3."

Said title is further amended by striking Code Section 48-8-111, relating to procedures for imposition of the special county sales and use tax, and inserting in its place a new Code Section 48-8-111 to read as follows:
"48-8-111.
(a) Prior to the issuance of the call for the referendum and prior to the vote of a county governing authority within a special district to impose the tax under this ~~article~~ part, such governing authority may enter into an intergovernmental agreement with any or all of the qualified municipalities within the special district. Any county that desires to have a tax under this part levied within the special district shall deliver or mail a written notice to the mayor or chief elected official in each qualified municipality located within the ~~county~~ special district. Such notice shall contain the date, time, place, and purpose of a meeting at which the governing authorities of the county and of each qualified municipality are to meet to discuss the possible projects for inclusion in the referendum, including municipally owned or operated projects. The notice shall be delivered or mailed at least ten days prior to the date of the meeting. The meeting shall be held at least 30 days prior to the issuance of the call for the referendum. Following such meeting, ~~a county~~ the governing authority of the county within the special district voting to impose the tax authorized by this ~~article~~ part shall notify the county election superintendent by forwarding to the superintendent a copy of the resolution or ordinance of the governing authority calling for the imposition of the tax. Such ordinance or resolution shall specify eligible expenditures identified by the county and any qualified municipality for use of proceeds distributed pursuant to subsection (b) of Code Section 48-8-115. Such ordinance or resolution shall also specify:
(1) The purpose or purposes for which the proceeds of the tax are to be used and may be expended, which purpose or purposes may consist of capital outlay projects located within or outside, or both within and outside, any incorporated areas in the county in the special district or outside the county, as authorized by subparagraph (B) of this paragraph for regional facilities, and which may include any of the following purposes:
(A) A capital outlay project consisting of road ~~Road~~, street, and bridge purposes, which purposes may include sidewalks and bicycle paths;
(B) A capital outlay project or projects ~~of the county for the use of or the benefit of the citizens of the entire county~~ in the special district and consisting of a ~~county~~ courthouse; ~~county~~ administrative buildings; a civic center; a ~~county~~ local or regional jail, correctional institution, or other detention facility; a ~~county~~ library; a coliseum; local or regional solid waste handling facilities as defined under paragraph (27.1) or (35) of Code Section 12-8-22, as amended, excluding any solid waste thermal treatment technology facility, including, but not limited to, any facility for purposes of incineration or waste to energy direct conversion; local or regional recovered materials processing facilities as defined under paragraph (26) of Code Section 12-8-22, as amended; or any combination of such projects;
(C) A capital outlay project or projects which will be operated by a joint authority or authorities of the county and one or more qualified municipalities within the ~~county and which will be for the use of or benefit of the citizens of the county and the citizens of one or more municipalities within the county~~ special district;
(D) A capital outlay project or projects, to be owned or operated or both either by the county, one or more qualified municipalities within the special district, one or more local authorities within the special district, or any combination thereof, with respect to which the such county has, prior to the call of the election, entered into a contract or agreement, as authorized by Article IX, Section III of the Constitution, with one or more municipalities in the county, which municipality or municipalities contain more than one-half of the aggregate population of all municipalities within the county; and, for purposes of determining the population of a municipality under this subparagraph, only that portion of the population of each municipality which is within the county shall be included;
(E) A capital outlay project consisting of a cultural facility, a recreational facility, or a historic facility (or a facility for some combination of such purposes);
(F) A water capital outlay project, a sewer capital outlay project, a water and sewer capital outlay project, or a combination of such projects, to be owned or operated or both by a county water and sewer district and one or more qualified municipalities in the county, with respect to which the county has, prior to the call of the election, entered into a contract or agreement, as authorized by Article IX, Section III of the Constitution; and when the tax is imposed pursuant to this subparagraph the proceeds of the tax shall be allocated between the water and sewer district and the municipality or municipalities based upon the population of the municipality or municipalities, according to the United States decennial census of 1980 or any future such census, over the population of the county, according to the United States decennial census of 1980 or any future such census, with such allocation to be specified in the contract or agreement relating to the capital outlay facility or facilities;
(G) The retirement of previously incurred general obligation debt of the county, one or more qualified municipalities within the special district, or any combination thereof other than general obligation debt incurred for road, street, or bridge purposes, if such previously incurred general obligation debt was incurred for project or projects of a type for which new general obligation debt may be incurred under this article;
(H) A capital outlay project or projects ~~of the county for the use of and benefit of the citizens of the entire county~~ within the special district and consisting of public safety facilities, airport facilities, or related capital equipment used in the operation of public safety or airport facilities, or any combination of such purposes;
(I) A capital outlay project or projects~~, to be owned or operated or both, either by the county, one or more municipalities, or any combination thereof,~~ within the special district, consisting of capital equipment for use in voting in official elections or referendums ~~with such county or municipality~~;
(J) A capital outlay project or projects ~~of the county for the use and benefit of the citizens of the entire county and~~ within the special district consisting of any transportation facility designed for the transportation of people or goods, including but not limited to railroads, port and harbor facilities, mass transportation facilities, or any combination thereof;
(K) A capital outlay project or projects ~~for the use and benefit of the citizens of the entire county~~ within the special district and consisting of a hospital or hospital facilities that are owned by a county, a qualified municipality, or a hospital authority within the special district and operated by ~~the~~ such county, municipality, or hospital authority or by an organization which is tax exempt under Section 501(c)(3) of the Internal Revenue Code, which operates the hospital through a contract or lease with ~~the~~ such county, municipality, or hospital authority; or
(L) Any combination of two or more of the foregoing;
(2) The maximum period of time, to be stated in calendar years or calendar quarters and not to exceed five years, unless the provisions of paragraph (1) of subsection (b) or subparagraph (b)(2)(A) of Code Section 48-8-115 are applicable, in which case the maximum period of time for which the tax may be levied shall not exceed six years;
(3) The ~~maximum~~ estimated cost of the project or projects which will be funded from the proceeds of the tax, which ~~maximum~~ estimated cost shall also be the ~~maximum~~ estimated amount of net proceeds to be raised by the tax, unless the provisions of paragraph (1) of subsection (b) or subparagraph (b)(2)(A) of Code Section 48-8-115 are applicable, in which case the final day of the tax shall be based upon the length of time for which the tax was authorized to be levied by the referendum; and
(4) If general obligation debt is to be issued in conjunction with the imposition of the tax, ~~as authorized by this article in cases where the tax is imposed other than in whole for road, street, and bridge purposes,~~ the principal amount of the debt to be issued, the purpose for which the debt is to be issued, the local government issuing the debt, the ~~other than for road, street, and bridge purposes, the~~ interest rate or rates or the maximum interest rate or rates which such debt is to bear, and the amount of principal to be paid in each year during the life of the debt.
(a.1) For purposes of subsection (a) of this Code section, a 'capital outlay project' means major, permanent, or long-lived improvements or betterments, such as land and structures, such as would be properly chargeable to a capital asset account and as distinguished from current expenditures and ordinary maintenance expenses. Such term shall include, but not be limited to, police cars, fire trucks, ambulances, garbage trucks, and other major equipment.
(b) Upon receipt of the resolution or ordinance, the election superintendent shall issue the call for an election for the purpose of submitting the question of the imposition of the tax to the voters of the county within the special district. The election superintendent shall issue the call and shall conduct the election on a date and in the manner authorized under Code Section 21-2-540. The election superintendent shall cause the date and purpose of the election to be published once a week for four weeks immediately preceding the date of the election in the official organ of the county. If general obligation debt is to be issued by the county or any qualified municipality within the special district in conjunction with the imposition of the tax, the notice published by the election superintendent shall also include, in such form as may be specified by the county governing authority or the governing authority or authorities of the qualified municipalities imposing the tax within the special district, the principal amount of the debt, the purpose for which the debt is to be issued, the rate or rates of interest or the maximum rate or rates of interest the debt will bear, and the amount of principal to be paid in each year during the life of the debt; and such publication of notice by the election superintendent shall take the place of the notice otherwise required by Code Section 36-80-11 or by subsection (b) of Code Section 36-82-1, which notice shall not be required.
~~(c) If the tax is to be imposed solely for road, street, and bridge purposes, the ballot shall have written or printed thereon the following:~~

(4) If debt is to be issued for purposes other than road, street, and bridge purposes, the ballot shall also have written or printed thereon, following the language specified by paragraph (3) of this subsection, the following:
'If imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of __________ County in the principal amount of $__________ for the above purpose other than road, street, and bridge purposes.'
~~(e)~~(d) All persons desiring to vote in favor of imposing the tax shall vote 'Yes' and all persons opposed to levying the tax shall vote 'No.' If more than one-half of the votes cast are in favor of imposing the tax then the tax shall be imposed as provided in this ~~article~~ part; otherwise the tax shall not be imposed and the question of imposing the tax shall not again be submitted to the voters of the county within the special district until after 12 months immediately following the month in which the election was held; provided, however, that if an election date authorized under Code Section 21-2-540 occurs during the twelfth month immediately following the month in which such election was held, the question of imposing the tax may be submitted to the voters of the county within the special district on such date. The election superintendent shall hold and conduct the election under the same rules and regulations as govern special elections. The superintendent shall canvass the returns, declare the result of the election, and certify the result to the Secretary of State and to the commissioner. The expense of the election shall be paid from county funds.
~~(f)~~(e)(1) If the proposal includes the authority to issue general obligation debt and if more than one-half of the votes cast are in favor of the proposal, then the authority to issue such debt in accordance with Article IX, Section V, Paragraph I or Article IX, Section V, Paragraph II of the Constitution is given to the proper officers of the county or qualified municipality within the special district issuing such debt; otherwise such debt shall not be issued. If the authority to issue such debt is so approved by the voters, then such debt may be issued without further approval by the voters.
(2) If the issuance of general obligation debt is included and approved as provided in this Code section, then the governing authority of the county or qualified municipality within the special district issuing such debt may incur such debt either through the issuance and validation of general obligation bonds or through the execution of a promissory note or notes or other instrument or instruments. If such debt is incurred through the issuance of general obligation bonds, such bonds and their issuance and validation shall be subject to Articles 1 and 2 of Chapter 82 of Title 36 except as specifically provided otherwise in this ~~article~~ part. If such debt is incurred through the execution of a promissory note or notes or other instrument or instruments, no validation proceedings shall be necessary and such debt shall be subject to Code Sections 36-80-10 through 36-80-14 except as specifically provided otherwise in this ~~article~~ part. In either event, such general obligation debt shall be payable first from the separate account in which are placed the proceeds received by the county or qualified municipality within the special district issuing such debt from the tax authorized by this ~~article~~ part. Such general obligation debt shall, however, constitute a pledge of the full faith, credit, and taxing power of the county or qualified municipality within the special district issuing such debt; and any liability on such debt which is not satisfied from the proceeds of the tax authorized by this ~~article~~ part shall be satisfied from the general funds of the county or qualified municipality within the special district issuing such debt. In no event shall any proceeds of a tax which is imposed pursuant to this article in whole or in part for road, street, or bridge purposes be used for payment of general obligation debt with respect to such road, street, and bridge purposes."

Said title is further amended by striking Code Section 48-8-112, relating to effective date, termination, limitation, and reimposition of the special county sales and use tax, and inserting in lieu thereof the following:
"48-8-112.
(a) If the imposition of the tax is approved at the special election, the tax shall be imposed on the first day of the next succeeding calendar quarter which begins more than 80 days after the date of the election at which the tax was approved by the voters. With respect to services which are regularly billed on a monthly basis, however, the resolution shall become effective with respect to and the tax shall apply to services billed on or after the effective date specified in the previous sentence.
(b) The tax shall cease to be imposed on the earliest of the following dates:
(1) If the resolution or ordinance calling for the imposition of the tax provided for the issuance of general obligation debt and such debt is the subject of validation proceedings, as of the end of the first calendar quarter ending more than 80 days after the date on which a court of competent jurisdiction enters a final order denying validation of such debt;
(2) On the final day of the maximum period of time specified for the imposition of the tax; or
(3) As of the end of the calendar quarter during which the commissioner determines that the tax will have raised revenues sufficient to provide to the county and qualified municipalities within the special district net proceeds equal to or greater than the amount specified as the ~~maximum~~ estimated amount of net proceeds to be raised by the tax, unless the provisions in paragraph (1) of subsection (b) or subparagraph (b)(2)(A) of Code Section 48-8-115 are applicable, in which case the final day of the tax shall be based upon the length of time for which the tax was authorized to be levied by the referendum.
(c)(1) ~~No county shall impose at~~ At any time no more than a single 1 percent tax under this ~~article~~ part may be imposed within a special district.
(2) ~~A county in~~ The governing authority of a county in a special district in which a tax authorized by this ~~article~~ part is in effect may, while the tax is in effect, adopt a resolution or ordinance calling for the reimposition of a tax as authorized by this ~~article~~ part upon the termination of the tax then in effect; and a special election may be held for this purpose while the tax is in effect. Proceedings for the reimposition of a 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; provided, however, that in the event of emergency conditions under which a county is unable to conduct a referendum so as to continue the tax then in effect without interruption, the commissioner may, if feasible administratively, waive the limitations of subsection (a) of this Code section to the minimum extent necessary so as to permit the reimposition of a tax, if otherwise approved as required under this Code section, without interruption, upon the expiration of the tax then in effect.
(3) Following the expiration of a tax under this ~~article,~~ part, the governing authority of a county within a special district may initiate proceedings for the reimposition of a tax under this ~~article~~ part in the same manner as provided in this ~~article~~ part for initial imposition of such tax.
(d) Notwithstanding any other provision of this part to the contrary, if a county has imposed the tax authorized by this part which tax has become effective in the calendar quarter beginning October 1, 2003, for road, street, and bridge purposes; courthouse capital repair purposes; capital outlay hospital authority purposes; and other purposes, and unanticipated retail development occurs prior to the fourth year of the tax being in place which will cause the tax to terminate under paragraph (3) of subsection (b) of this Code section, then the provisions of this subsection shall apply. This subsection shall not apply until and unless the governing authority of the county adopts a resolution under this subsection which calls for the tax to continue to be collected for the maximum period of time originally specified for the imposition of the tax. A copy of such resolution shall, upon adoption, be transmitted to the commissioner. Upon the adoption of such resolution, the tax shall continue to be imposed for the same period of time as originally authorized without regard to the amount of revenue collected. The commissioner shall notify the county governing authority as of the end of the calendar quarter during which the commissioner makes the determination otherwise required under paragraph (3) of subsection (b) of this Code section. From the beginning of the immediately following calendar quarter until the final day of the maximum period of time specified for the imposition of the tax, the county shall only be authorized to use the proceeds collected from such tax for a county-wide project or projects or for a recreational facility or facilities and only pursuant to an intergovernmental agreement between such county and all municipalities, whether qualified municipalities or not, which were originally to receive a share of proceeds of such tax regarding such projects or facilities. This subsection shall stand repealed in its entirety on December 31, 2008."

Said title is further amended by striking Code Section 48-8-115, relating to disbursement of proceeds of the special county sales and use tax, and inserting in its place a new Code Section 48-8-115 to read as follows:
"48-8-115.
(a) The proceeds of the tax collected by the commissioner in each county within a special district under this ~~article~~ part shall be disbursed as soon as practicable after collection as follows:
(1) One percent of the amount collected shall be paid into the general fund of the state treasury in order to defray the costs of administration;
(2) Except for the percentage provided in paragraph (1) of this Code section, the remaining proceeds of the tax shall be distributed to the governing authority of the county within the special district imposing the tax as specified in subsection (b) of this Code section.
(b) The county within the special district shall distribute any such proceeds as follows:
(1) To the county governing authority and any qualified municipalities as specified in an intergovernmental agreement. Where an intergovernmental agreement has been entered into, the agreement shall, at a minimum, include the following:
(A) The specific capital outlay project or projects to be funded pursuant to the agreement;
(B) The estimated or projected dollar amounts allocated for each project from tax proceeds from the tax authorized by this part;
(C) The procedures for distributing proceeds from the tax authorized by this part to qualified municipalities;
(D) A schedule for distributing proceeds from the tax authorized by this part to qualified municipalities which schedule shall include the priority or order in which projects will be fully or partially funded;
(E) A provision that all capital outlay projects included in the agreement shall be funded from proceeds from the tax authorized by this part except as otherwise agreed;
(F) A provision that proceeds from the tax authorized by this part shall be maintained in separate accounts and utilized exclusively for the specified purposes;
(G) Record-keeping and audit procedures necessary to carry out the purposes of this part; and
(H) Such other provisions as the county and participating municipalities choose to address; or
(2) Where an intergovernmental agreement has not been entered into pursuant to paragraph (1) of this subsection, the county within the special district shall distribute the proceeds of the tax authorized by this part as follows:
(A)(i) To the governing authority of the county for one or more level one county-wide projects specified by the governing authority of the county in the ordinance or resolution required by subsection (a) of Code Section 48-8-111; provided, however, that any tax levied under this part that funds level one county-wide projects where an intergovernmental agreement has not been entered into pursuant to paragraph (1) of this subsection shall be levied for a five-year period. In the event that any or all level one county-wide projects are estimated to cost an amount which exceeds the proceeds projected to be collected during a 24 month period of the levy of the tax, the tax shall be levied for a six-year period; or
(ii) In the event that no level one county-wide project is included in the ordinance or resolution required by subsection (a) of Code Section 48-8-111, to the governing authority of the county for one or more level two county-wide projects specified by the governing authority of the county in the ordinance or resolution required by subsection (a) of Code Section 48-8-111. In the event no level one county-wide project is included in the ordinance or resolution required by subsection (a) of Code Section 48-8-111 and the governing authority of the county has specified one or more municipal projects as level two county-wide projects in the ordinance or resolution required by subsection (a) of Code Section 48-8-111, to the governing authority of the appropriate municipality or municipalities for such level two county-wide projects specified in the ordinance or resolution required by subsection (a) of Code Section 48-8-111. The total estimated cost of all level two county-wide projects specified under this division shall not exceed 20 percent of the proceeds projected to be collected during the period specified in the ordinance or resolution required by subsection (a) of Code Section 48-8-111; or
(B) In the event that no county-wide project is included in the resolution or ordinance calling for the imposition of the tax or in the event that tax proceeds exceed that amount required to fund the county-wide project or projects, the remaining proceeds shall be distributed in the following manner:
(i) As specified in an intergovernmental agreement other than the agreement specified in paragraph (1) of this subsection. The intergovernmental agreement shall include, at a minimum, the information required in paragraph (1) of this subsection; or
(ii) To the qualified municipalities within the special district based upon the ratio that the population of each qualified municipality bears to the total population of the county within the special district. If any qualified municipality is located in more than one county, only that portion of its population that is within the special district shall be counted. The remainder of such proceeds shall be distributed to the governing authority of the county within the special district. Capital outlay projects included in the referendum ballot by the county or any qualified municipalities within the special district shall be based upon the anticipated proceeds and distribution of the tax. The governing authority of the county within the special district shall distribute all proceeds received by the county for the tax levied pursuant to this part to the qualified municipalities within the special district on a monthly basis where proceeds are distributed in accordance with this division."

Said title is further amended by striking Code Section 48-8-121, relating to use of proceeds of the special county sales and use tax and issuance of general obligation debt, and inserting in lieu thereof the following:
"48-8-121.
(a)(1) The proceeds received from the tax authorized by this ~~article~~ part shall be used by the county and qualified municipalities within the special district receiving proceeds of the sales and use tax exclusively for the purpose or purposes specified in the resolution or ordinance calling for imposition of the tax. Such proceeds shall be kept in a separate account from other funds of ~~the~~ such county and each qualified municipality receiving proceeds of the sales and use tax and shall not in any manner be commingled with other funds of ~~the~~ such county and each qualified municipality receiving proceeds of the sales and use tax prior to the expenditure.
(2) The governing authority of the county and the governing authority of each qualified municipality within the special district receiving any proceeds from the tax pursuant to ~~a contract with the county~~ this part shall maintain a record of each and every project for which the proceeds of the tax are used. A schedule shall be included in each annual audit which shows for each such project ~~in the resolution or ordinance calling for imposition of the tax~~ the original estimated cost, the current estimated cost if it is not the original estimated cost, amounts expended in prior years, and amounts expended in the current year. The auditor shall verify and test expenditures sufficient to provide assurances that the schedule is fairly presented in relation to the financial statements. The auditor´s report on the financial statements shall include an opinion, or disclaimer of opinion, as to whether the schedule is presented fairly in all material respects in relation to the financial statements taken as a whole.
(3) Where the tax authorized by this article has been imposed prior to April 19, 1994, for a period of four years for road, street, and bridge purposes and five years for other purposes, this paragraph shall apply. When this paragraph applies, proceeds from any or all years of the five-year imposition period may be used for road, street, and bridge purposes and proceeds from any or all years of the five-year imposition period may be used for the other authorized purposes, so long as the total expenditures of the tax proceeds are consistent with the total expenditures provided for in the original resolution or ordinance calling for the imposition of the tax. In the event that a qualified municipality fails to comply with the requirements of this part, the county within the special district shall not be held liable for such noncompliance.
(b) If the resolution or ordinance calling for the imposition of the tax specified that the proceeds of the tax are to be used in whole or in part for road, street, and bridge purposes, then authorized uses of the tax proceeds shall include acquisition of right of way for, construction of, and renovation and improvement of, including relocation of utilities for and improvement of surface water drainage from, roads, streets, bridges, sidewalks, and bicycle paths both within the unincorporated area of the county and within the incorporated areas of municipalities within the county. If the resolution or ordinance calling for the imposition of the tax specified that the proceeds of the tax are to be used in whole or in part for road, street, and bridge purposes, then no part of the proceeds of the tax shall be used to retire general obligation debt with respect to such road, street, and bridge purposes.
(b)(1) If the resolution or ordinance calling for the imposition of the tax specified that the proceeds of the tax are to be used in whole or in part for capital outlay projects consisting of road, street, and bridge purposes, then authorized uses of the tax proceeds shall include:
(A) Acquisition of rights of way for roads, streets, bridges, sidewalks, and bicycle paths;
(B) Construction of roads, streets, bridges, sidewalks, and bicycle paths;
(C) Renovation and improvement of roads, streets, bridges, sidewalks, and bicycle paths, including resurfacing;
(D) Relocation of utilities for roads, streets, bridges, sidewalks, and bicycle paths;
(E) Improvement of surface-water drainage from roads, streets, bridges, sidewalks, and bicycle paths; and
(F) Patching, leveling, milling, widening, shoulder preparation, culvert repair, and other repairs necessary for the preservation of roads, streets, bridges, sidewalks, and bicycle paths.
(2) Storm-water capital outlay projects and drainage capital outlay projects may be funded pursuant to subparagraph (a)(1)(D) of Code Section 48-8-111 or in conjunction with road, street, and bridge capital outlay projects.
(c) No general obligation debt shall be issued in conjunction with the imposition of the tax authorized by this article when the tax is imposed in whole or in part for road, street, and bridge purposes with respect to such road, street, and bridge purposes. If the tax is imposed solely for purposes other than road, street, and bridge purposes or in part for road, street, and bridge purposes and in part for other purposes, then no No general obligation debt shall be issued in conjunction with the imposition of the tax unless the ~~county~~ governing authority of the county or qualified municipalities within special district issuing the debt determines that, and if the debt is to be validated it is demonstrated in the validation proceedings that, during each year in which any payment of principal or interest on the debt comes due the county or qualified municipalities within special district issuing such debt will receive from the tax authorized by this ~~article~~ part net proceeds sufficient to fully satisfy such liability. General obligation debt issued under this ~~article~~ part shall be payable first from the separate account in which are placed the proceeds received by the county or qualified municipalities within the special district issuing such debt from the tax authorized by this ~~article~~ part. Such debt, however, shall constitute a pledge of the full faith, credit, and taxing power of the county or qualified municipalities within the special district issuing such debt; and any liability on said debt which is not satisfied from the proceeds of the tax authorized by this ~~article~~ part shall be satisfied from the general funds of the county or qualified municipalities within the special district issuing such debt.
(d) The resolution or ordinance calling for imposition of the tax authorized by this ~~article solely for purposes other than for road, street, and bridge purposes or in part for road, street, and bridge purposes and in part for other purposes~~ part may specify that all of the proceeds of the tax will be used for payment of general obligation debt issued in conjunction with the imposition of the tax ~~with respect to purposes other than road, street, and bridge purposes~~. If the resolution or ordinance so provides, then such proceeds shall be used solely for such purpose except as provided in subsection (g) of this Code section.
(e)~~(1)~~ The resolution or ordinance calling for the imposition of the tax authorized by this ~~article solely for purposes other than for road, street, and bridge purposes or in part for road, street, and bridge purposes and in part for other purposes~~ part may specify that a part of the proceeds of the tax will be used for payment of general obligation debt issued in conjunction with the imposition of the tax ~~with respect to purposes other than road, street, and bridge purposes~~. If the ordinance or resolution so provides, it shall specifically state the other purposes for which such proceeds will be used; and such other purposes shall be a part of the capital outlay project or projects for which the tax is to be imposed. In such a case no part of the net proceeds from the tax received in any year shall be used for such other purposes until all debt service requirements of the general obligation debt for that year have first been satisfied from the account in which the proceeds of the tax are placed.
~~(2) In no event shall any proceeds of general obligation debt issued pursuant to this article be used for road, street, or bridge purposes.~~
(f) The resolution or ordinance calling for the imposition of the tax may specify that no general obligation debt is to be issued in conjunction with the imposition of the tax. If the ordinance or resolution so provides, it shall specifically state the purpose or purposes for which the proceeds will be used.
(g)(1)(A) If the proceeds of the tax are specified to be used solely for the purpose of payment of general obligation debt issued in conjunction with the imposition of the tax, then any net proceeds of the tax in excess of the amount required for final payment of such debt shall be subject to and applied as provided in paragraph (2) of this subsection.
(B) If the county or qualified municipality within the special district receives from the tax net proceeds in excess of the ~~maximum~~ estimated cost of the capital outlay project or projects stated in the resolution or ordinance calling for the imposition of the tax or in excess of the actual cost of such capital outlay project or projects, then such excess proceeds shall be subject to and applied as provided in paragraph (2) of this subsection.
(C) If the tax is terminated under paragraph (1) of subsection (b) of Code Section 48-8-112 by reason of denial of validation of debt, then all net proceeds received by the county or qualified municipality within the special district from the tax shall be excess proceeds subject to paragraph (2) of this subsection.
(2) Unless otherwise provided in this part or in an intergovernmental agreement entered into pursuant to this part, excess ~~Excess~~ proceeds subject to this subsection shall be used solely for the purpose of reducing any indebtedness of the county within the special district other than indebtedness incurred pursuant to this ~~article~~ part. If there is no such other indebtedness or, if the excess proceeds exceed the amount of any such other indebtedness, then the excess proceeds shall next be paid into the general fund of the county within the special district, it being the intent that any funds so paid into the general fund of the county be used for the purpose of reducing ad valorem taxes."

Said title is further amended by striking Code Section 36-36-11, relating to the effect of bona fide land use classification objections, and inserting in its place a new Code Section 36-36-11 to read as follows:
"36-36-11.
(a) The intent of this Code section is to provide a mechanism to resolve disputes over land use arising out of the rezoning of property to a more intense land use in conjunction with or subsequent to annexation in order to facilitate coordinated planning between counties and municipalities particularly with respect to areas contiguous to municipal boundaries.
~~(a)~~(b) As used in this Code section, the term '~~bona fide land use classification~~ objection' means an objection to a proposed change in land use which results in a substantial change in the intensity of the allowable use of the property or a change to a significantly different allowable use.
(b) On or after July 1, 1998, an annexation shall not be effective until any bona fide land use classification objections raised by the county relative to the area to be annexed are resolved pursuant to the dispute resolution process required by subparagraph (C) of paragraph (4) of Code Section 36-70-24.
(1) When an initial zoning of property is sought pursuant to subsection (d) of Code Section 36-66-4 or when the rezoning of annexed property is sought within one year of the effective date of the annexation, the municipal corporation shall give notice to the county governing authority within seven calender days of the filing of the application for initial zoning or rezoning. Upon receipt of such notice, the county governing authority shall have seven calendar days to notify the municipality in writing of its intent to raise an objection to the proposed zoning or rezoning of the property and shall specify the basis for the objection. If the county governing authority serves notice of its intent to object, then the county governing authority shall have ten calendar days from the date of the county´s notice to document in writing the nature of the objection specifically identifying the basis for the objection including any increased service delivery or infrastructure costs. The absence of a written notice of intent to object or failure to document the nature of the objection shall mean the municipal corporation may proceed with the zoning or rezoning and no subsequent objections under this process may be filed for the zoning or rezoning under consideration.
(2) Commencing with the date of receipt by the municipality of the county´s documented objections, representatives of the municipal corporation and the county shall have 21 calendar days to devise mitigating measures to address the county´s specific objections to the proposed zoning or rezoning. The governing authority of the municipal corporation and the governing authority of the county may agree on mitigating measures or agree in writing to waive the objections at any time within the 21 calendar day period, in which event the municipal corporation may proceed with the zoning or rezoning in accordance with such agreement; or, where an initial zoning is proposed concurrent with annexation, the municipality may approve, deny, or abandon the annexation of all or parts of the property under review.
(3) If the representatives of the municipal corporation and the county fail to reach agreement on the objections and mitigating measures within the 21 calendar day period, either the governing authority of the municipal corporation or the governing authority of the county may insist upon appointment of a mediator within seven calendar days after the end of the 21 day period to assist in resolving the dispute. The mediator shall be mutually selected and appointed within seven calendar days of either party´s timely, written insistence on a mediator. The party insisting on use of the mediator shall bear two-thirds of the expense of the mediation and the other party shall bear one-third of the expense of the mediation. If both the municipality and the county insist on mediation, the expenses of mediation shall be shared equally. The mediator shall have up to 28 calendar days to meet with the parties to develop alternatives to resolve the objections. If the municipal corporation and the county agree on alternatives to resolve the objections, the municipal corporation may proceed in accordance with the mediated agreement.
(4) If the objections are not resolved by the end of the 28 day period, the municipal governing authority or the county governing authority may, no later than seven calendar days after the conclusion of such 28 day period, request review by a citizen review panel. The citizen review panel shall be an independent body comprised of one resident of the municipal corporation appointed by the municipal governing authority, one resident of the county appointed by the county governing authority, and one nonresident of the county who is a land use planning professional mutually selected by the municipal and county appointees to the citizen review panel. No elected or appointed officials or employees, contractors, or vendors of a municipality or county may serve on the citizen review panel. If a request for review by a citizen review panel is made, the mediator shall make arrangements to appear personally at the first meeting of the panel and brief the panel members regarding the objections and proposed mitigating measures or provide a written presentation of such objections and proposed mitigating measures to the panel members on or before the date of such first meeting, whichever the mediator deems appropriate. The citizen review panel shall meet at least once but may conduct as many meetings as necessary to complete its review within a 21 calendar day period. All meetings of the citizen review panel shall be open to the public pursuant to Chapter 14 of Title 50. Within 21 calendar days of the request for review, the citizen review panel shall complete its review of the evidence submitted by the county and the municipality concerning the objections and proposed mitigating measures and shall issue its own recommendations.
(5) The citizen review panel shall recommend approval or denial of the zoning or rezoning and address the objections and proposed mitigating measures. Where an initial zoning is proposed concurrent with annexation, the panel may also recommend that the annexation be approved or abandoned. The findings and recommendations of the citizen review panel shall not be binding.
(6) Following receipt of the recommendations of the citizen review panel, the municipal corporation may:
(A) Zone or rezone all or parts of the property under review;
(B) Zone or rezone all or parts of the property under review with mitigating measures;
(C) Deny the zoning or rezoning of all or parts of the property under review; or
(D) Any combination of the foregoing.
Where an initial zoning is proposed concurrent with annexation, the municipality may also approve, deny, or abandon the annexation of all or parts of the property under review.
(7) At any time during the process set forth in this Code section, the county or municipality may file a petition in superior court seeking sanctions against a party for any objections or proposed mitigating measures that lack substantial justification or that were interposed for purposes of delay or harassment. Such petition shall be assigned to a judge, pursuant to Code Section 15-1-9.1 or 15-6-13, who is not a judge in the circuit in which the county is located. The judge selected may also be a senior judge pursuant to Code Section 15-1-9.2 who resides in another circuit. The visiting or senior judge shall determine whether any objections or proposed mitigating measures lack substantial justification or were interposed for delay or harassment and shall assess against the party raising such objection or proposing or objecting to such mitigating measures the full cost of attorney fees and other costs incurred by the other party in responding to the objections or proposed mitigating measures.
(8) Unless otherwise agreed, a zoning or rezoning decision made pursuant to this Code section shall not be effective until 28 calendar days following the completion of the process authorized by this Code section and the zoning or rezoning vote by the municipal governing authority.
(9) During the process set forth in this Code section, the municipal corporation may proceed with notice, hearings, and other requirements for zoning or rezoning in accordance with the municipality´s zoning ordinance.
(c) If the annexation, zoning, or rezoning is denied or abandoned based in whole or in part on the county´s objections, the county shall not zone or rezone the property or allow any use of a similar or greater density or intensity to that proposed for the property which had been objected to by the county pursuant to this Code section for a one-year period after the denial or abandonment.
(d) The process set forth in subsection (b) of this Code section specifies minimum procedures for addressing objections. However, a county and a municipality may agree to additional procedures by resolution of the county and municipal governing authorities. Notwithstanding subsections (b) and (c) of this Code section, any agreement to resolve county objections to a proposed land use of an area to be annexed into a municipality which agreement was in effect on January 1, 2004, and which includes a provision whereby the county and a municipality agree to be bound by the recommendations of an annexation appeals board shall remain in effect until the parties agree otherwise."