hb56_Senate_floor_sub_to_HB_56

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09 LC 18 8419ERS

SENATE SUBSTITUTE TO HB 56:

ADOPTED SENATE

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use taxation, so as to revise provisions of law relating to local sales and use taxation; to revise and change procedures and requirements regarding the renegotiation of distribution certificates for the joint county and municipal sales and use tax; to change certain provisions regarding failure to file a new certificate; to change certain provisions regarding discontinuation of said tax; to change certain provisions regarding limitations on imposition of certain local taxes; to authorize the imposition of a local option sales and use tax for transportation projects and costs within special districts; to establish special districts; to provide for definitions, procedures, conditions, and limitations for the imposition, collection, disbursement, and termination of the tax; to provide for powers, duties, and authority of the state revenue commissioner; to provide for an up to 1 percent sales tax to be used to fund transportation projects in special transportation districts within the state; to provide for the creation of such districts, the governance thereof, and the development of a list of transportation projects of the district; to provide that each county may opt out of the district; to provide for the district to pass a resolution calling for a referendum within the district; to provide for the tax to be levied by the participating counties; to provide for the funds collected to be deposited in trust accounts; to provide for contracting and constructing of the transportation projects on the regional lists; to provide for exemptions; to provide for related matters; to change certain provisions regarding limitations on imposition of certain local taxes; to provide for the use of proceeds of certain local sales and use taxes for metropolitan rapid transit purposes; to provide for a referendum; to provide for applicability; to provide for effective dates; to provide for automatic repeal of certain provisions under certain circumstances; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I
SECTION 1-1.

Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use taxation, is amended by revising subsection (d) of Code Section 48-8-89, relating to the distribution of proceeds of the joint county and municipal sales and use tax and the renegotiation of distribution certificates, as follows:

"(d)(1) Except as otherwise provided in paragraph (7) of this subsection, a certificate providing for the distribution of the proceeds of the tax authorized by this article shall expire on December 31 of the second year following the year in which the decennial census is conducted. No later than December 30 of the second year following the year in which the census is conducted, a renegotiated certificate meeting the requirements for certificates specified by subsection (b) of this Code section shall be filed with and received by the commissioner. The General Assembly recognizes that the requirement for government services is not always in direct correlation with population. Although a renegotiated certificate is required within a time certain of the decennial census, this requirement is not meant to convey an intent by the General Assembly that population as a criterion should be more heavily weighted than other criteria. It is the express intent of the General Assembly in requiring such renegotiation that eligible political subdivisions shall analyze local service delivery responsibilities and the existing allocation of proceeds made available to such governments under the provisions of this article and make rational the allocation of such resources to meet such service delivery responsibilities. Political subdivisions in their renegotiation of such distributions shall at a minimum consider the criteria specified in subsection (b) of this Code section.

(2) The commissioner shall be notified in writing of the commencement of renegotiation proceedings by the county governing authority in on behalf of all eligible political subdivisions within the special district. The eligible political subdivisions shall commence renegotiations at the call of the county governing authority but no later than before July 1 of the second year following the year in which the census is conducted. If the county governing authority does not issue the call by that date, any eligible municipality may issue the call and so notify the commissioner and all eligible political subdivisions in the special district.

(3)(A) Following the commencement of such renegotiation, if the parties necessary to an agreement fail to reach an agreement within 60 days, such parties shall agree to submit the dispute to nonbinding arbitration, mediation, or such other means of resolving conflicts in a manner which, in the judgment of the commissioner, reflects a good faith effort to resolve the dispute. Any renegotiation agreement reached pursuant to this paragraph shall be in accordance with the requirements specified in paragraph (1) of this subsection. If the parties fail to reach an agreement within 60 days of submitting the dispute to nonbinding arbitration, mediation, or such other means of resolving conflicts, any party necessary to an agreement may file a petition in superior court of the county seeking resolution of the items remaining in dispute. 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.

(B) The county and qualified municipalities representing at least one-half of the aggregate municipal population of all qualified municipalities located wholly or partially within the special district shall separately submit to the judge and the other parties a written best and final offer as to the distribution of the tax proceeds. There shall be one such offer from the county and one from qualified municipalities representing at least one-half of the aggregate municipal population of all qualified municipalities located wholly or partially within the special district. The offer from the county may be an offer representing the county and any municipalities that are not represented in the offer from the qualified municipalities representing at least one-half of the aggregate municipal population of all qualified municipalities located wholly or partially within the special district.

(C) Any qualified municipality or municipalities located wholly or partially within the special district who are not a party to an offer under subparagraph (B) of this paragraph and representing at least one-half of the aggregate municipal population of all qualified municipalities who are not a party to an offer under subparagraph (B) of this paragraph shall be authorized to separately submit to the judge and the other parties a written best and final offer as to the distribution of the tax proceeds. There shall be one such offer from such qualified municipality or municipalities.

(D) Each offer under subparagraphs (B) and (C) of this paragraph shall take into account the allocation required for any absent municipalities in accordance with subsection (b) of this Code section. The visiting or senior judge shall conduct such hearings as the judge deems necessary and shall render a decision based on, but not limited to, the criteria in subsection (b) of this Code section and in paragraph (1) of this subsection. The judge's decision as to the allocation of the tax proceeds shall adopt the best and final offer of one of the parties under subparagraphs (B) and (C) of this paragraph but shall also include findings of fact. The judge shall enter a final order containing a new distribution certificate and transmit a copy of it to the commissioner. Appeal shall be by application and the decision of the judge shall be disturbed only for the judge's disregard of the law, for partiality of the judge, or for corruption, fraud, or misconduct by the judge or a party.

(4) If the renegotiated certificate provided for in paragraph (1) of this subsection is not received by the commissioner by the required date, the authority to impose the tax authorized by Code Section 48-8-82 shall cease on December 31 of the second year following the year in which the decennial census is conducted and the tax shall not be levied in the special district after such date unless the reimposition of the tax is subsequently authorized pursuant to Code Section 48-8-85. When the imposition of the tax is so terminated, the commissioner shall retain the proceeds of the tax which were to be distributed to the governing authorities of the county and qualified municipalities within the special district until the commissioner receives a certificate in behalf of each such governing authority specifying the percentage of the proceeds which each such governing authority shall receive. If no such certificate is received by the commissioner within 120 days of the date on which the authority to levy the tax was terminated, the proceeds shall escheat to the state and the commissioner shall transfer the proceeds to the state's general fund the commissioner shall continue to distribute the sales tax proceeds according to the percentages specified in the existing certificate or in accordance with subsection (f) of Code Section 48-8-89.1, as applicable, until a new certificate is properly filed.

(5) If the commissioner receives the a renegotiated certificate by the required date, the commissioner shall distribute the proceeds of the tax in accordance with the directions of the renegotiated certificate commencing on January 1 of the year immediately following the year in which such certificate was renegotiated or the first day of the second calendar month following the month such certificate was renegotiated, whichever is sooner.

(6) Costs of any conflict resolution under paragraph (3) of this subsection shall be borne proportionately by the affected political subdivisions in accordance with the final percentage distributions of the proceeds of the tax as reflected by the renegotiated certificate or as otherwise ordered by the court.

(7) All distribution certificates on file with the commissioner on July 1, 1994, which were not renegotiated in accordance with the 1990 decennial census figures or renegotiated on or after January 1, 1992, shall expire on December 31, 1995. Renegotiations with respect to such certificates shall be commenced in accordance with the requirements of this subsection on or before July 1, 1994. If a renegotiated certificate is not received by the commissioner by July 1, 1995, the authority to impose the tax authorized by Code Section 48-8-82 shall cease on December 31, 1995, and the tax shall not be levied in the special district after that date unless reimposition of the tax is subsequently authorized pursuant to Code Section 48-8-85. The commissioner shall retain and distribute the proceeds of such terminated tax in accordance with paragraph (4) of this subsection.

(8) No qualified municipality within the special district whose population is less than 5 percent of the population in the special district according to the United States decennial census of 1990 shall receive a reduced percentage of distribution than presently being received under the existing certificate prior to renegotiations required in paragraph (7) of this subsection unless the new agreement is executed by the qualified municipality. This paragraph shall apply only to the negotiations required by paragraph (7) of this subsection and shall not apply to any subsequent renegotiations required by this subsection.

(9)(7) Political subdivisions shall be authorized, at their option, to renegotiate distribution certificates on a more frequent basis than is otherwise required under this subsection.

(8) Notwithstanding any other provision of this article to the contrary, the imposition of this tax shall not terminate based on a failure to file a new or renegotiated certificate.

(10)(9) No provision of this subsection shall apply to any county which is authorized to levy or which levies a local sales tax, local use tax, or local sales and use tax for educational purposes pursuant to a local constitutional amendment or to any county which is authorized to expend all or any portion of the proceeds of any sales tax, use tax, or sales and use tax for educational purposes pursuant to a local constitutional amendment."

SECTION 1-2.

Said chapter is further amended by revising subsection (d) of Code Section 48-8-89.1, relating to lapsing of said tax due to failure to file a new certificate, as follows:

"(d) If a new certificate is not filed for any special district as required by this Code section, the authority to impose the tax authorized by Code Section 48-8-82 within that special district shall cease on the first day of January of the year following the year in which the required distribution certificate could last have been timely filed. In any special district in which the authority to impose the tax is terminated pursuant to this subsection, the tax may thereafter be reimposed only pursuant to the procedures specified in Code Sections 48-8-84 through 48-8-86 Reserved."

SECTION 1-3.

Said chapter is further amended by revising Code Section 48-8-92, relating to the referendum election on discontinuing imposition of said tax, as follows:

"48-8-92.

(a) Whenever the governing authority of any county or and the governing authorities of at least one-half of qualified municipality municipalities located wholly or partially within a special district in which the tax authorized by this article is being levied wishes wish to submit to the electors of the special district the question of whether the tax authorized by Code Section 48-8-82 shall be discontinued, the such governing authority authorities shall notify the election superintendent of the county whose geographical boundary is conterminous with that of the special district by forwarding to the superintendent a copy of a joint resolution of the governing authority authorities calling for the referendum election. Upon receipt of the resolution, it shall be the duty of the election superintendent to issue the call for an election for the purpose of submitting the question of discontinuing the levy of the tax to the voters of the special district for approval or rejection. The election superintendent shall set the date of the election for a day not less than 30 nor more than 45 days after the date of the issuance of the call\pard fs26 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 two weeks immediately preceding the date of the election in the official organ of the county. The ballot shall have written or printed thereon the following:

'( ) YES

( ) NO

Shall the 1 percent retail sales and use tax being levied within the special district within ____________ County be terminated?'

(b) All persons desiring to vote in favor of discontinuing the tax shall vote 'Yes,' and all persons opposed to discontinuing the tax shall vote 'No.' If more than one-half of the votes cast are in favor of discontinuing the tax, then the tax shall cease to be levied on the first day of the second calendar quarter following the month in which the commissioner receives the certification of the result of the election; otherwise, the tax shall continue to be levied, and the question of the discontinuing of the tax may not again be submitted to the voters of the special district until after 24 months immediately following the month in which the election was held. It shall be the duty of the election superintendent to hold and conduct such elections under the same rules and regulations as govern special elections. It shall be his such superintendent's further duty to canvass the returns, declare and certify 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 borne by the county whose geographical boundary is conterminous with that of the special district holding the election."

SECTION 1-4.

Said chapter is further amended by revising subsection (b) of Code Section 48-8-6, relating to limitations on imposition of certain local taxes, by deleting "and" at the end of paragraph (3), by deleting the period at the end of paragraph (4) and replacing it with "; and", and by adding a new paragraph to read as follows:

"(5) A sales and use tax levied under Article 5 of this chapter."

SECTION 1-5.

Said chapter is further amended by adding a new article to read as follows:

"ARTICLE 6

48-8-250.

As used in this article, the term:

(1) 'Cost of project' or 'project costs' means the cost of construction, including without limitation relocation or adjustments of utilities; the cost of all lands, properties, rights, easements, and franchises acquired; relocation expenses; the cost of all machinery and equipment necessary for the operation of the project, the cost of engineering, legal expenses, plans and specifications, and other expenses necessary or incident to determining the feasibility or practicability of the project; administrative expenses; and such other expenses as may be necessary or incident to the construction of any project, the placing of the same in operation, or the maintenance and operation of the same.

(2) 'Dealer' means a dealer as defined in paragraph (3) of Code Section 48-8-2.

(3) 'Intergovernmental agreement' means a contract entered into pursuant to Article IX, 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. Such an agreement shall include the elements specified in subparagraphs (b)(1)(A) through (b)(1)(H) of Code Section 48-8-115.

(4) 'Project' means existing or future land public transportation systems, including without limitation: (A) one or more roads or bridges or a system of roads, bridges, and tunnels or maintenance and operations thereof, with access limited or unlimited, and such buildings, structures, parking areas, appurtenances, and facilities related thereto, including but not limited to approaches, cross streets, roads, bridges, tunnels, and avenues of access for such system; and (B) any program for mass public transportation or mass public transportation facilities or maintenance and operations thereof and such buildings, structures, parking areas, appurtenances, and facilities related thereto, including but not limited to approaches, cross streets, roads, bridges, tunnels, and avenues of access for such facilities.

(5) 'Qualified municipality' has the same meaning as in paragraph (4) of Code Section 48-8-110.

48-8-251.

(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 article within a special district, the governing authority of any county in this state may, subject to the requirement of referendum approval and the other requirements of this article, impose within the special district a special sales and use tax for a limited period of time which tax shall be known as the special district transportation projects and costs local option sales tax.

(c) Any tax imposed under this article shall be at the rate of 1 percent. Except as to rate, a tax imposed under this article 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, except that a tax imposed under this article 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.

(d) No sales and use tax shall be levied in a special district under this article in which a tax is levied and collected under Article 2 of this chapter.

48-8-252.

(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, such governing authority shall enter into an intergovernmental agreement with any or all of the qualified municipalities within the special district and shall deliver or mail a written notice to the mayor or chief elected official in each municipality located within the county. Such notice shall contain the date, time, place, and purpose of a meeting at which the governing authorities of the county and of each municipality are to meet to discuss the proposed tax levy. 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 governing authority voting to impose the tax authorized by this article within the special district 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 the transportation projects and costs, separately identified by the county and by each qualified municipality expending proceeds of the tax, for which the proceeds of the tax are to be used and may be expended and specify:

(1) The maximum period of time, to be stated in calendar years or calendar quarters and not to exceed five years;

(2) The maximum cost of the transportation projects and costs which will be funded from the proceeds of the tax, which 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, the principal amount of the debt to be issued, the purpose for which the debt is 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 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. 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 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, 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)(1) If the tax is to be imposed and if no debt is to be issued, the ballot shall have written or printed thereon the following:

'( ) YES

( ) NO

Shall a special 1 percent sales and use tax be imposed in ___________ County for a period of time not to exceed _____________ and for the raising of not more than $_______ for the following transportation projects and costs: _____________?'

(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 ___________ County 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 county until after 12 months immediately following the month in which the election was held. 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.

(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 county; 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 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 county 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 county; 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 county.

48-8-253.

With respect to any consolidated government created by the consolidation of a county and one or more municipalities, the levy of a tax under this article by a consolidated government shall be in the same manner as the levy of the tax by any other county.

48-8-254.

(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 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) At any time, no more than a single 1 percent tax under this article may be imposed within a special district.

(2) The governing authority of a county within a special district 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 the reimposition of a tax as authorized by this article 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, a county may initiate proceedings for the reimposition of a tax under this article in the same manner as provided in this article for initial imposition of such tax.

48-8-255.

A tax levied pursuant to this article shall be exclusively administered and collected by the commissioner for the use and benefit of the county and qualified municipalities within the special district 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 county 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.

48-8-256.

Each sales tax return remitting taxes collected under this article shall separately identify the location of each retail establishment at which any of the 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 taxes imposed by this article are collected and distributed according to situs of sale.

48-8-257.

The proceeds of the tax collected by the commissioner in each county 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 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 for distribution pursuant to the terms of the intergovernmental agreement.

48-8-258.

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 he or she 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 county or in a special district which includes the county.

48-8-259.

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 county 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 Interstate Commerce Commission or the Georgia Public Service Commission.

48-8-260.

(a) As used in this Code section, the term '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.

(b) 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.

48-8-261.

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.

48-8-262.

Except as provided in Code Section 48-8-6 and subsection (d) of Code Section 48-8-251, the tax authorized by this article shall be in addition to any other local sales and use tax. Except as provided in Code Section 48-8-6 and subsection (d) of Code Section 48-8-251, the imposition of any other local sales and use tax within a county shall not affect the authority of a county 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.

48-8-263.

(a)(1) The proceeds received from the tax authorized by this article shall be used by the county and qualified municipalities within the special district exclusively for the transportation projects and costs 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 county and qualified municipalities receiving proceeds of the tax and shall not in any manner be commingled with other funds of such county or qualified municipalities prior to the expenditure.

(2) The governing authority of the county and the governing authority of each qualified municipality receiving any proceeds from the tax pursuant to a contract with the county shall maintain a record of each and every purpose for which the proceeds of the tax are used. A schedule shall be included in each annual audit which shows for each purpose 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.

(b) No general obligation debt shall be issued in conjunction with the imposition of the tax authorized by this article unless the county 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 county 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 county from the tax authorized by this article. Such debt, however, shall constitute a pledge of the full faith, credit, and taxing power of the county; 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 county.

(c) The intergovernmental agreement and 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 intergovernmental agreement and resolution or ordinance so provide, then such proceeds shall be used solely for such purpose except as provided in subsection (f) of this Code section.

(d) The intergovernmental agreement and 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. If the intergovernmental agreement and ordinance or resolution so provide, they shall specifically state the other purposes for which such proceeds will be used. 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.

(e) 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.

(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 county as agent for the special district receives from the tax net proceeds in excess of the maximum cost of the transportation projects and costs stated in the resolution or ordinance calling for the imposition of the tax or in excess of the actual cost of such purpose or purposes, then such excess proceeds shall be subject to and applied as provided in paragraph (2) of this subsection unless otherwise specified in the intergovernmental agreement.

(C) If the tax is terminated under paragraph (1) of subsection (b) of Code Section 48-8-253 by reason of denial of validation of debt, then all net proceeds received by the county as agent of the special district 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 county within the special district 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 county, 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.

48-8-264.

The governing authority of the county and the governing authority of each qualified municipality receiving any proceeds from the tax under this article shall maintain a record of each and every purpose for which the proceeds of the tax are used. Not later than December 31 of each year, the governing authority of each local government receiving any proceeds from the tax under this article shall publish annually, in a newspaper of general circulation in the boundaries of such local government, a simple, nontechnical report which shows for each purpose 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 report shall also include a statement of what corrective action the local government intends to implement with respect to each purpose which is underfunded or behind schedule and a statement of any surplus funds which have not been expended for a purpose."

PART II
SECTION 2-1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended in Chapter 8, relating to sales and use taxes, by adding a new article to read as follows:

"ARTICLE 5

48-8-220.

This article shall be known and may be cited as the 'Regional Transportation Local Option Sales Tax Act.'

48-8-221.

As used in this article, the term:

(1) 'District' means the metropolitan transportation district and special transportation districts created in Code Sections 48-8-223 and 48-8-224.

(2) 'Levy' means the district-wide sales and use tax authorized by Code Section 48-8-222.

(3) 'Qualified municipality' means a qualified municipality as defined in Code Section 48-8-110 situated wholly or partly within a district.

(4) 'Transportation agency' means a Georgia department or authority authorized by general law to engage in activities relating to transportation projects or purposes.

(5) 'Transportation project' or 'transportation purpose' means, without limitation, roads and bridges, freight and passenger rail, airports, public transit, buses, seaports, and all activities and structures useful and incident to providing, operating, and maintaining the same; provided, however, that 'transportation project' or 'transportation purpose' shall not include projects which are inconsistent with any state-wide strategic transportation plan adopted by the General Assembly.

(6) 'Voting officials of the district' means the elected officials representing the county, counties, or qualified municipalities in a district.

48-8-222.

(a) On or after January 1, 2011, a sales and use tax of up to 1 percent may be levied as provided in this article to fund transportation projects in a district. Except as to rate and 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.

(b) A county shall be wholly within one transportation district. No county shall be divided among more than one district. The boundaries of the districts shall be otherwise as determined by the constituent counties.

(c) After the formation of a special transportation district, but prior to the passage of the resolution calling for imposition of the tax authorized by this article, the governing authority of any county sharing a boundary with any county within a district may by resolution opt into such district. Prior to the county governing authority's vote to opt into the district, the county shall follow the procedures of paragraph (2) of subsection (a) of Code Section 48-8-224 for meeting with all of the qualified municipalities. In order to add the county to the district, the governing authorities of the counties within the district must concur. Not less than ten days prior to a vote on a resolution for such purpose, notice of the intention of a county to opt into the district shall be transmitted by the governing authority of such county to the metropolitan transportation district board if created pursuant to Code Section 48-8-223, to the governing authority of each qualified municipality within the county proposing to opt into the district, and to the governing authority of each other county within such district.

(d) District projects undertaken pursuant to this article shall not be subject to review or approval by the Georgia Regional Transportation Authority.

48-8-223.

(a) There is created within this state a metropolitan transportation district encompassing and being coterminous with the geographical area consisting of Cherokee, Cobb, Douglas, Fulton, DeKalb, Fayette, Clayton, Henry, Rockdale, and Gwinnett counties, which comprise the metropolitan area planning and development commission pursuant to Article 4 of Chapter 8 of Title 50. The management and supervision of such district shall be vested in a district board to consist of those members of the council of the metropolitan area planning and development commission as provided for by Code Section 50-8-84 holding elective public office, to serve during their service as members of the commission and until their successors are duly elected and qualified.

(b) Each county in a district may select one or more district transportation agencies to be responsible for designing, planning, and contracting for the construction of district projects.

(1) The district, in cooperation with its constituent counties and qualified municipalities and its designated transportation agency or agencies, shall propound by resolution a list of transportation projects to be funded by a district levy. Approval of such resolution shall require the affirmative vote of a majority of the voting members of the district. Such resolution shall include:

(A) A list of the specific transportation projects to be funded;

(B) The approximate cost of such projects, which shall also be the maximum amount of net proceeds to be raised by the levy;

(D) The maximum period of time, to be stated in calendar years, for which the levy may be imposed.

(2) The district resolution provided for by paragraph (1) of this subsection shall be immediately transmitted to the governing authority of each county and qualified municipality within the district. Each such governing authority shall thereafter have 45 days from the date of such submission to vote to opt the county out of such district. A county shall opt out of the district upon:

(A) The affirmative vote of the county governing authority on a resolution for such purpose; and

(B) If there are one or more municipalities within the county whose area within the county contains more than 50 percent of the population of the county, the affirmative vote on resolutions for such purpose by the governing authorities of qualified municipalities representing more than 50 percent of the population of the county.

Only the vote described in subparagraph (A) of this paragraph shall be required for the opt-out if the county is not described in subparagraph (B) of this paragraph. For a county described in subparagraph (B) of this paragraph, the votes described in subparagraphs (A) and (B) of this paragraph shall be required for the opt-out. All measurements of population for purposes of this paragraph shall be according to the United States decennial census of 2000 or any future such census. Notice of the opting out of a county shall be immediately transmitted by the governing authority of such county to the governing authority of each other county within the district, to the governing authority of each qualified municipality within the county, and to the governing authority of each county sharing a border with any county within the district;

(3) Upon any county opting out of a district pursuant to paragraph (2) of this subsection, any remaining constituent county shall have 30 days from the expiration of the 45 day period provided for in paragraph (2) of this subsection to opt out of such district by the same mechanism and with the same notice provided for in paragraph (2) of this subsection;

(4) Those counties that do not opt out of a district within the time limits prescribed in this subsection and those which opt in pursuant to the provisions subsection (c) of Code Section 48-8-222 shall thereafter constitute the special transportation district. The voting officials of the district shall be reconstituted to include, pursuant to subsection (c) of Code Section 48-8-222, only the elected officials of those counties and qualified municipalities included in the special transportation district;

(5) The voting officials of the district as reconstituted pursuant to paragraph (4) of this subsection shall meet as soon as practicable after the reconstitution of the district. The district in cooperation with its constituent counties and qualified municipalities and the designated transportation agency or agencies may revise by resolution the list of transportation projects, if necessary or advisable, to remove or amend any project planned for an area no longer within the district and to add or amend any project for an area that was added to the district; and

(6) As soon as practicable after the expiration of the time for removal of counties from a district and after any revision of such resolution after the removal of any counties from the district, the voting officials of the district may by a majority vote submit to electors of the district the transportation project list and the question of whether the levy provided for by this article should be approved.

48-8-224.

(a)(1) Special transportation districts not encompassing any part of the metropolitan transportation district created pursuant to Code Section 48-8-223 may be created by the governing authorities of two or more contiguous counties or by the governing authority of a single county.

(2) Prior to the issuance of the call for the referendum required by subsection (d) of this Code section, the county or counties that desire to levy a tax under this article within the special transportation district created pursuant to this Code section shall deliver or mail a written notice to the mayor or chief elected official in each municipality located within the 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 possible projects for inclusion in the referendum. 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.

(b)(1) Following the meeting required by paragraph (2) of subsection (a) of this Code section, the governing authority or authorities of the county or counties within the district may enter into an intergovernmental agreement with each other and with one or more qualified municipalities within the district containing a combined total of no less than 50 percent of the aggregate municipal population located within the district.

(2) At a minimum, the intergovernmental agreement authorized by paragraph (1) of this subsection shall include the following:

(A) A list of the projects and proposals qualifying as transportation purposes proposed to be funded from the levy;

(B) The estimated or projected dollar amounts allocated for each project from proceeds from the levy authorized by this article;

(D) A schedule for distributing proceeds from the levy authorized by this article to qualified municipalities which shall include the priority or order in which projects will be fully or partially funded;

(E) A provision that all transportation projects included in the agreement shall be funded from proceeds from the levy authorized by this article except as otherwise agreed;

(F) A provision that proceeds from the levy authorized by this article 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 article; and

(H) Such other provisions as the county, counties, and participating municipalities choose to address.

(c)(1) Following the commencement of negotiation, if the parties necessary to an agreement fail to reach an agreement within 60 days, such parties shall submit the dispute to nonbinding arbitration, mediation, or such other means of resolving conflicts in a manner which reflects a good faith effort to resolve the dispute. Any negotiation agreement reached pursuant to this paragraph shall be in accordance with the requirements specified in paragraph (2) of this subsection. If the parties fail to reach an agreement within 60 days of submitting the dispute to nonbinding arbitration, mediation, or such other means of resolving conflicts, any party necessary to an agreement may file a petition in superior court of the county seeking resolution of the items remaining in dispute. 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 county and qualified municipalities representing at least 50 percent of the aggregate municipal population of all qualified municipalities located wholly or partially within the district shall separately submit to the judge and the other parties a written best and final offer as to the distribution of the tax proceeds. There shall be one such offer from the county and one from qualified municipalities representing at least 50 percent of the aggregate municipal population of all qualified municipalities located wholly or partially within the district. The offer from the county may be an offer representing the county and any municipalities that are not represented in the offer from the qualified municipalities representing at least 50 percent of the aggregate municipal population of all qualified municipalities located wholly or partially within the district. The visiting or senior judge shall conduct such hearings as the judge deems necessary and shall render a decision based on, but not limited to, the criteria in paragraph (2) of this subsection. The judge's decision on the allocation of the levy proceeds shall adopt the best and final offer of one of the parties but shall also include findings of fact. The judge shall enter a final order containing a distribution certificate and transmit a copy of it to the commissioner of revenue. Appeal shall be by application and the decision of the judge shall be altered only for the judge's disregard of the law, for partiality of the judge, or for corruption, fraud, or misconduct by the judge or a party.

(2) The judge's decision on the allocation of the levy proceeds shall be based upon, but not be limited to, the following criteria:

(A) Assurance of future trip reliability and competitive travel times;

(B) Navigation around metropolitan area congestion;

(D) Creation of limited access facilities for trucks connecting other origins and destinations;

(E) Creation of new capacity for freight rail;

(F) Addressing of major bottlenecks;

(G) Improvement or grade separation of major at-grade rail crossings;

(H) Expansion of access to jobs and linkage of labor markets;

(I) Implementation of current transportation plans;

(J) Creation of a high-speed or commuter rail network;

(K) Enhancement of public mass transit operations and capacity;

(L) Maintenance and improvement of existing roads and bridges; and

(M) Each jurisdiction's mileage of public roads and vehicle mileage traveled as determined by the Georgia Department of Transportation.

(3) Costs of any conflict resolution under paragraph (1) of this subsection shall be borne proportionately by the affected political subdivisions in accordance with the final percentage distributions of the proceeds of the levy as reflected by the renegotiated certificate or as otherwise ordered by the court.

(d)(1) As soon as practicable after the meeting between the governing authorities of the county, counties, and qualified cities and the execution of an intergovernmental agreement, if applicable, the governing authorities of the counties of the district may by a majority vote on a resolution offered for such purpose submit the project list and the question of whether the levy provided for by this article should be approved to electors of the district in an election called for such purpose and shall notify each county election superintendent within the district by forwarding to the superintendent a copy of such resolution calling for the imposition of the levy.

(2) The resolution authorized by paragraph (1) of this subsection shall describe:

(A) The specific transportation projects to be funded;

(B) The approximate cost of such projects, which shall also be the maximum amount of net proceeds to be raised by the levy; and

(e) Each county in a district may select one or more district transportation agencies to be responsible for designing, planning, and contracting for the construction of district projects.

48-8-225.

(a) Except as otherwise provided in this Code section, the procedures for conducting the referendum on the question of imposing the levy shall correspond generally to the procedures provided for by Part 1 of Article 3 of this chapter, except that the project or proposal list provided for by Code Sections 48-8-223 and 48-8-224, or a digest thereof, shall be available during regular business hours in the office of the county clerk of each county that has authorized the levy.

(b) The ballot submitting the question of the imposition of the levy authorized by this article to the voters within the special district shall have written or printed thereon the following:

'( ) YES

( ) NO

Shall a special ___ percent sales and use tax be imposed in the special transportation district consisting of _______County (or Counties) for a period of time not to exceed _______ and for the raising of not more than an estimated amount of $_______ for the purpose of transportation?'

(c) 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. All persons desiring to vote in favor of imposing the levy shall vote 'Yes' and all persons opposed to imposing the levy shall vote 'No.' If more than one-half of the votes cast throughout the entire district are in favor of imposing the levy, then the levy shall be imposed as provided in this article.

(d) Where such question is not approved by the voters, the county or counties of the district may resubmit such question from time to time and may amend such project or proposal list or digest thereof. Proceedings for the reimposition of such levy shall be in the same manner as proceedings for the initial imposition of the levy, but the newly authorized levy shall not be imposed until the expiration of the levy then in effect.

(e) Whenever the levy is authorized pursuant to the provisions of this article, the counties within the approving district shall levy a sales and use tax as provided for by this article, to be collected as provided by law.

48-8-226.

The proceeds of a levy authorized by this article shall be transferred to a trust fund maintained on behalf of the district by the metropolitan district board if created pursuant to Code Section 48-8-223 or by one of the counties that created the district, a regional commission, or some other public body agreed to by the county or counties that created the district if the district was created pursuant to Code Section 48-8-224. Such proceeds are to be expended as provided for by this article and shall be used exclusively for the purpose or purposes specified in the resolution calling for imposition of the levy and shall not be commingled in any manner with any other funds held or received by any county, municipality, or metropolitan district board.

48-8-227.

Upon request of the metropolitan district board, if the district was created pursuant to Code Section 48-8-223, or upon request of the county or counties that created the district, if the district was created pursuant to Code Section 48-8-224, the district transportation agency or agencies and the Department of Community Affairs shall cooperate with the district and its constituent counties and qualifying municipalities, and upon request of such parties shall be responsible for designing, planning, and contracting for the construction of the projects.

48-8-228.

Nothing in this article shall be construed to prohibit counties and municipalities located in a district from imposing as additional taxes local sales and use taxes otherwise authorized by general law.

48-8-229.

The levy authorized by this article shall not be imposed in any jurisdiction the electors of which were not eligible to vote in an election called to approve such levy.

48-8-230.

The levy authorized by this article shall not be subject to any allocation or balancing of state and federal funds provided for by general law, nor may such proceeds be considered or taken into account in any such allocation or balancing.

48-8-231.

(a) The levy provided for by this article shall only be levied on the first $5,000.00 of any transaction regarding a motor vehicle, watercraft, or aircraft.

(b) The levy provided for by this article shall not apply to and shall not be levied on:

(1) The sale or use of any type of fuel used for off-road heavy-duty equipment, off-road farm or agricultural equipment, or locomotives;

(2) The sale or use of fuel that is used for propulsion of motor vehicles on the public highways. For purposes of this paragraph, 'motor vehicle' means a self-propelled vehicle designed for operation or required to be licensed for operation upon the public highways;

(3) The sale or use of tangible personal property used in the production or generation of energy; or

(4) The sale or use of energy used in the manufacturing or processing of tangible goods primarily for resale.

48-8-232.

Except as otherwise specifically provided in this article, the levy authorized by this article shall be subject to any sales and use tax exemption which is otherwise imposed by general law; provided, however, that such levy shall be levied on the sale of food or beverages as provided for in paragraph (57) of Code Section 48-8-3.

48-8-233.

(a) A record of projects on which levy proceeds are used shall be maintained by each county and municipality receiving proceeds from the levy authorized by this article, and a report shall prepared not later than December 31 of each year. Such record and report shall conform to the requirements of Code Section 48-8-122.

(b) The Department of Transportation shall conduct continuing studies and monitoring of the status of economic parity throughout the State of Georgia for the contracting of transportation projects with particular emphasis on its procurement practices."

SECTION 2-2.

Said title is further amended by revising subsection (b) of Code Section 48-8-6, relating to limitations on imposition of certain local taxes, by deleting "and" at the end of paragraph (3), by deleting the period at the end of paragraph (4) and replacing it with "; and", and by adding a new paragraph to read as follows:

"(5) A sales and use tax levied under Article 5 of this chapter."

PART III
SECTION 3-1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended by adding a new chapter to read as follows:

"CHAPTER 8A

48-8A-1.

Notwithstanding any provision of law to the contrary, any metropolitan rapid transit authority created by local constitutional amendment shall be authorized to expand and use proceeds of the tax levied pursuant to such local constitutional amendment and implementing laws as provided in this chapter.

48-8A-2.

(a) The proceeds of any metropolitan rapid transit authority tax levied pursuant to local constitutional amendment and implementing laws shall be used solely by each local government to fulfill the obligations incurred in the contracts entered into with such metropolitan rapid transit authority as contemplated in the local constitutional amendment and implementing laws. For the period beginning on the effective date of this Code section, there shall be no restriction on the use of the proceeds of the tax. The board of the metropolitan rapid transit authority shall file with the applicable metropolitan rapid transit overview committee annually, the original and 14 copies of a report of the findings of a completed management performance audit of the authority's current operations, which audit was performed under contract with and at the expense of the authority, along with any auditor's recommendations based thereon and the auditor's signed written verification that the metropolitan rapid transit authority fully cooperated with such audit and allowed access to all its books, records, and documents to the extent the auditor deemed necessary. Commencing on the effective date of this Code section and only if expressly authorized by the board, interest earned on reserve funds set aside for rebuilding, repairing, or renovating facilities of the rapid transit system; for replacing, repairing, or renovating equipment or other capital assets thereof; or from the sale or other disposition of real property may, without regard to the original source of the funds so reserved, be used to pay the operating costs of the system.

(b) Any limitation contained in such implementing laws to the contrary notwithstanding, the board of such authority may, in its sole discretion, and for any fiscal year commencing July 1, 2009, or thereafter, use any interest earned on any self-insurance reserve established pursuant to such implementing laws to pay the operating costs of the system."

PART IV
SECTION 4-1.

Unless prohibited by the federal Voting Rights Act of 1965, as amended, the Secretary of State shall call and conduct an election as provided in this section for the purpose of submitting Part II of this Act to the electors of the State of Georgia for approval or rejection. The Secretary of State shall conduct that election on the date of the November, 2010, state-wide general election. The Secretary of State shall issue the call and conduct that special election as provided by general law. The Secretary of State shall cause the date and purpose of the special election to be published in the official organ of each county in the state once a week for two weeks immediately preceding the date of the referendum. The ballot shall have written or printed thereon the following:

"( ) YES

( ) NO

Shall the Regional Transportation Local Option Sales Tax be approved which allows a regional local option sales tax of up to 1 percent to be used to fund transportation projects within the region from which the funds are collected?"

All persons desiring to vote for approval of Part II of the Act shall vote "Yes," and all persons desiring to vote for rejection of Part II of the Act shall vote "No." If more than one-half of the votes cast on such question are for approval of Part II of the Act, then Part II of this Act shall become effective on January 1, 2011. If Part II of this Act is not so approved or if the election is not conducted as provided in this section, Part II of this Act shall not become effective and Part II of this Act and this part shall be automatically repealed on the first day of January immediately following that election date.

PART V
SECTION 5-1.

(a) Sections 1-1 through 1-3 of this Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.
(b) Section 1-4 of this Act shall become effective on January 1, 2011.
(c) Part II of this Act shall only become effective as provided in Part III of this Act.
(d) Parts III and IV of this Act and this part shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 5-2.

All laws and parts of laws in conflict with this Act are repealed.