09 LC
21 0031
Senate
Resolution 2
By:
Senators Seabaugh of the 28th, Rogers of the 21st, Williams of the 19th and
Chance of the 16th
A
RESOLUTION
Proposing
an amendment to the Constitution so as to authorize the reduction or elimination
of local ad valorem taxation and replacement with a sales and use tax at any
rate not to exceed 1 percent; to provide for procedures, conditions, and
limitations; to provide for the submission of this amendment for ratification or
rejection; and for other purposes.
BE
IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
VII of the Constitution is amended by adding a new section to read as follows:
"SECTION
V.
SALES TAXATION FOR LOCAL PURPOSES
SALES TAXATION FOR LOCAL PURPOSES
Paragraph
I.
Local
ad valorem reduction
option. (a)
Any local taxing jurisdiction in this state consisting of:
(1)
A county;
(2)
The area of a consolidated government other than a municipality located
therein;
(3)
A county school district located in a county in which no independent school
district is located; or
(4)
A municipality
shall
be authorized to levy, impose, and collect a local sales and use tax as provided
in this Paragraph throughout the entirety of such local taxing
jurisdiction.
(b)
In the event one or more independent school districts are located wholly or
partially within a county, the board of education of that county school district
and the board of education of each such independent school district shall be
authorized, upon the adoption of a concurrent resolution, to levy, impose, and
collect a local sales and use tax as provided in this Paragraph throughout the
entirety of such local taxing jurisdiction; and the joint areas of such school
districts shall constitute the local taxing jurisdiction.
(c)
In the event one or more municipalities are located wholly or partially within a
county, the governing authority of that county and the governing authority of
each such municipality shall be authorized, upon the adoption of a concurrent
resolution, to levy, impose, and collect a local sales and use tax as provided
in this Paragraph; and the joint areas of such county and municipality or
municipalities shall constitute the local taxing jurisdiction.
(d)
The purpose of such tax shall be to reduce or eliminate ad valorem taxation.
The maximum rate of such tax shall be 1 percent, except as otherwise provided,
and may be at any fractional rate less than 1 percent. Following approval of a
stated maximum sales and use tax rate in the referendum:
(1)
In the case of a county school district in a county in which no independent
school district is located, the board of education of such school district shall
be authorized to lower such rate or raise such rate subject to the stated
maximum rate in order to maintain a sufficient amount of proceeds to offset the
maximum net millage rate and debt without accumulating excess
proceeds;
(2)
In the case of a county containing a county school district and one or more
independent school districts, the boards of education of such school districts
shall, by concurrent resolution, be authorized to lower such rate or raise such
rate subject to the stated maximum rate in order to maintain a sufficient amount
of proceeds to offset the maximum net millage rate and debt without accumulating
excess proceeds;
(3)
In the case of a county containing one or more municipalities, the governing
authorities of such county and municipalities shall, by concurrent resolution,
be authorized to lower such rate or raise such rate subject to the stated
maximum rate in order to maintain a sufficient amount of proceeds to offset the
maximum net millage rate and debt without accumulating excess
proceeds;
(4)
In the case of a levy solely by a county, the maximum rate of such tax shall not
exceed 0.5 percent and may be at any fractional rate less than 0.5 percent. The
governing authority of such county shall be authorized to lower such rate or
raise such rate subject to the stated maximum rate in order to maintain a
sufficient amount of proceeds to offset the maximum net millage rate and debt
without accumulating excess proceeds; or
(5)
In the case of a levy solely by a municipality, the maximum rate of such tax
shall not exceed 0.5 percent and may be at any fractional rate less than 0.5
percent. The governing authority of such municipality shall be authorized to
lower such rate or raise such rate subject to the stated maximum rate in order
to maintain a sufficient amount of proceeds to offset the maximum net millage
rate and debt without accumulating excess proceeds.
(e)
Such tax shall be imposed for an initial period not to exceed four years. Such
tax shall be in addition to any state-wide and local sales and use
tax.
(f)
Upon the adoption of an ordinance or resolution by the governing body of the
local taxing jurisdiction, concurrent resolution in the case of a county school
district and one or more independent school districts, or concurrent resolution
in the case of a county and one or more municipalities which specifies the
maximum duration of the proposed tax, the maximum rate of such tax, the maximum
net millage rate for the duration of such tax, and the date of the required
referendum, a special election shall be conducted for posing the question of
imposing the tax. Such special election shall be called and conducted by the
appropriate election superintendent only on the date of the state-wide general
primary or the state-wide general election and in the manner authorized by
general law for special elections. The imposition, levy, and collection of the
tax shall be conditioned upon approval by a majority vote of the qualified
electors residing within the limits of the local taxing jurisdiction voting in a
referendum thereon. The ballot question shall specify the maximum duration of
the proposed tax, the maximum rate of such tax, and the maximum net millage rate
for the duration of such tax.
(g)
The authority provided under this Constitution to levy and collect ad valorem
taxes for the purpose of retiring existing indebtedness or repaying future
indebtedness shall continue.
(h)
Except as otherwise provided in this Paragraph, a local sales and use tax
imposed pursuant to this Paragraph shall correspond to the state-wide sales and
use tax imposed by the revenue laws of this state, as now or hereafter amended.
If approved in the referendum, such local tax shall be imposed on the first day
of January of the next succeeding year after the date of the election at which
the tax was approved by the voters.
(i)
The sales and use tax imposed under this Paragraph shall not be subject to and
shall not count toward any general law limitation regarding the maximum amount
of local sales and use taxes which may be levied in any jurisdiction in this
state.
(j)
The sales and use tax imposed under this Paragraph shall not apply to the sale
or use of eligible food and beverages to the extent that such items are subject
to state or local sales and use tax pursuant to general law.
(k)(1)
The sales and use tax imposed under this Paragraph shall not apply
to:
(A)
The production or generation of energy; or
(B)
The sale or use of energy used in the manufacturing or processing of tangible
goods primarily for resale.
(2)
The net maximum millage rate shall not apply to real property upon which any
facilities are located which produce or generate energy or which use energy in
the manufacturing or processing of tangible goods primarily for resale covered
by this subparagraph.
(l)
The proceeds of the sales and use tax imposed under this Paragraph by any county
school district or independent school district shall count as a part of such
district's total millage for purposes of any equalization grant formula provided
by general law.
(m)
The sales and use tax imposed under this Paragraph may be levied and collected
without the necessity for further action by the General Assembly, but the
General Assembly shall be authorized by general law to further define and
implement such tax.
(n)(1)
The proceeds derived from the sales and use tax imposed pursuant to this
Paragraph shall be used solely for the purpose of reducing the millage rate
against tangible property within the entirety of the local taxing jurisdiction
in an amount equivalent to the amount of proceeds of the tax under this
Paragraph collected for a 12 month period. In the case of a county, such
reduction shall be county wide. In addition, the governing authority of a
municipality which comprises a local taxing jurisdiction may enter into an
intergovernmental agreement with the governing authority of a county or
consolidated government in which it is located which comprises a local taxing
jurisdiction to utilize a portion of such municipality's proceeds of such tax to
reduce the county millage rate against tangible property within such
municipality.
(2)
In the case of a county school district and one or more independent school
districts, the proceeds derived from the sales and use tax imposed pursuant to
this Paragraph shall be used solely for the purpose of reducing the millage rate
against tangible property within each of such school districts. The net
proceeds of the tax shall be distributed between the county school district and
the independent school districts, or portion thereof, located in such county
according to the ratio the student enrollment in each school district, or
portion thereof, bears to the total student enrollment of all school districts
in the county. For purposes of this distribution, student enrollment shall be
based on the latest full-time equivalent count prior to the referendum on
imposing the tax.
(3)
In the case of a county and one or more municipalities, the proceeds derived
from the sales and use tax imposed pursuant to this Paragraph shall be used
solely for the purpose of reducing the millage rate against tangible property
within the entire county and each of such municipalities. The net proceeds of
the tax shall be distributed between the county and the municipalities according
to an intergovernmental agreement entered into by each of the governing
authorities thereof.
(4)
Such reduction shall be set in the form of a dollar-for-dollar credit and shall
be reflected on the ad valorem tax bill of each taxpayer. Any excess proceeds
remaining after eliminating 100 percent of property taxes of the local taxing
jurisdiction shall be used to reduce or eliminate general obligation debt of the
local taxing jurisdiction.
(5)
As a condition precedent to the levy of the tax, if approved in the required
referendum, the governing body or bodies receiving the proceeds shall establish
a maximum net millage rate for general maintenance and operations against
tangible property within such tax jurisdiction or jurisdictions. In the event a
state of emergency has been declared by the President, the Governor, or
otherwise necessitated due to a court order, the maximum net millage rate may be
exceeded in the local taxing jurisdiction for emergency purposes or court order
only upon approval of a resolution by a three-fifths' vote of the governing body
of the local taxing jurisdiction and in the case of a county school district and
one or more independent school districts, upon approval of a concurrent
resolution by a three-fifths' vote of each board of education. The maximum net
millage rate shall not apply to real property located in a tax allocation
district, a community improvement district, or a city business improvement
district.
(o)
The sales and use tax imposed under this Paragraph may be reimposed upon
approval by a majority vote of the qualified electors voting in a referendum
thereon in the same manner generally as the tax was initially imposed except
that any such reimposition may be for a period not to exceed eight
years.
(p)
The Department of Audits and Accounts shall conduct an annual audit of the
collection and expenditure of the proceeds of such tax in each local taxing
jurisdiction which imposes such tax. A copy of such audit shall be provided to
the General Assembly and made available for public inspection at the office of
the governing body of the local taxing jurisdiction to any person who so
requests.
(q)
The use of proceeds of the sales and use tax imposed under this Paragraph shall
not be subject to redirection by any court order to any other
purpose.
(r)
Any such local taxing jurisdiction shall be authorized to cease the levy of the
sales and use tax imposed under this Paragraph upon approval by a majority vote
of the qualified electors residing within the limits of such local taxing
jurisdiction voting in a referendum thereon. The sales and use tax imposed
under this Paragraph and the maximum net millage rate shall continue until
December 31 of the year in which such referendum is conducted and
approved."
SECTION
2.
Article
VIII, Section VI, Paragraph I of the Constitution is amended by revising
subparagraph (a) as follows:
"(a)
The
Except as
otherwise provided in Article VII, Section V, Paragraph I of this Constitution,
the board of education of each school
system shall annually certify to its fiscal authority or authorities a school
tax not greater than 20 mills per dollar for the support and maintenance of
education. Said fiscal authority or authorities shall annually levy said tax
upon the assessed value of all taxable property within the territory served by
said school system, provided that the levy made by an area board of education,
which levy shall not be greater than 20 mills per dollar, shall be in such
amount and within such limits as may be prescribed by local law applicable
thereto."
SECTION
3.
The
above proposed amendment to the Constitution shall be published and submitted as
provided in Article X, Section I, Paragraph II of the Constitution. The ballot
submitting the above proposed amendment shall have written or printed thereon
the following:
|
"( ) YES
( ) NO
|
Shall
the Constitution of Georgia be amended so as to authorize the reduction or
elimination of local ad valorem taxation and replacement with a local sales and
use tax upon approval in a local referendum?"
|
All
persons desiring to vote in favor of ratifying the proposed amendment shall vote
"Yes." All persons desiring to vote against ratifying the proposed amendment
shall vote "No." If such amendment shall be ratified as provided in said
Paragraph of the Constitution, it shall become a part of the Constitution of
this state.