10 HB
903/AP
House
Bill 903 (AS PASSED HOUSE AND SENATE)
By:
Representatives Burkhalter of the
50th
and Stephens of the
164th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-13-51 of the Official Code of Georgia Annotated, relating
to county and municipal tax levies on hotels and motels and other public
accommodations, so as to revise provisions relating to a levy at the rate of 7
percent by certain counties and municipalities; to provide that, where such tax
was levied for the purpose of funding a multipurpose domed stadium facility and
is subject to a stated expiration date, the expiration date may be extended
under certain circumstances; to provide for extension for purposes of funding a
successor facility upon certification of certain conditions by a state
authority; to provide for expenditure through a contract with the state
authority; to provide for a new extended expiration date; to provide for the
protection of bondholders; to authorize certain counties and municipalities to
levy such taxes at the rate of 7 percent; to provide for procedures, conditions,
and limitations; to provide for other related matters; to provide an effective
date; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-13-51 of the Official Code of Georgia Annotated, relating to county
and municipal tax levies on hotels and motels and other public accommodations,
is amended by revising paragraph (5) of subsection (a) as follows:
"(5)(A)(i)
Notwithstanding any other provision of this subsection, a county (within the
territorial limits of the special district located within the county) or
municipality is authorized to levy a tax under this Code section at a rate of 7
percent. A county or municipality levying a tax pursuant to this paragraph
shall expend an amount equal to at least 51.4 percent of the total taxes
collected prior to July 1, 1990, at the rate of 7 percent and an amount equal to
at least 32.14 percent of the total taxes collected on or after July 1, 1990, at
the rate of 7 percent for the purpose of:
(A)
(I)
promoting tourism, conventions, and trade shows;
(B)
(II)
supporting a facility owned or operated by a state authority for convention and
trade show purposes or any other similar or related purposes;
(C)
(III)
supporting a facility owned or operated by a local authority or local government
for convention and trade show purposes or any other similar or related purposes,
if a written agreement to provide such support was in effect on January 1, 1987,
and if such facility is substantially completed and in operation prior to July
1, 1987;
(D)
(IV)
supporting a facility owned or operated by a local government or local authority
for convention and trade show purposes or any other similar or related purposes
if construction of such facility is funded or was funded in whole or in part by
a grant of state funds; or
(E)
(V)
for some combination of such purposes. Amounts so expended shall be expended
only through a contract or contracts with the state, a department of state
government, a state authority, or a private sector nonprofit organization or
through a contract or contracts with some combination of such entities, except
that amounts expended for those purposes specified in
subparagraphs
subdivisions
(C)
(III)
and
(D)
(IV)
of this
paragraph
division
may be so expended in any otherwise lawful manner.
(ii)
In addition to the amounts required to be expended
above
under division
(i) of this subparagraph, a county or
municipality levying a tax pursuant to this paragraph (5) shall further expend
(in each fiscal year during which the tax is collected under this paragraph (5))
an amount equal to 14.3 percent of the total taxes collected prior to July 1,
1990, at the rate of 7 percent and an amount equal to 39.3 percent of the total
taxes collected on or after July 1, 1990, at the rate of 7 percent toward
funding a multipurpose domed stadium facility. Amounts so expended shall be
expended only through a contract originally with the state, a department or
agency of the state, or a state authority or through a contract or contracts
with some combination of the above. Any tax levied pursuant to this paragraph
shall terminate not later than December 31, 2020,
unless
extended as provided in subparagraph (B) of this
paragraph, provided that during any period
during which there remains outstanding any obligation which is incurred prior to
January 1, 1991, issued to fund a multipurpose domed stadium as contemplated by
this paragraph (5), and secured in whole or in part by a pledge of a tax
authorized under this Code section, or any such obligation which is incurred to
refund such an obligation incurred before January 1, 1991, the powers of the
counties and municipalities to impose and distribute the tax imposed by this
paragraph (5) shall not be diminished or impaired by the state and no county or
municipality levying the tax imposed by this paragraph shall cease to levy the
tax in any manner that will impair the interest and rights of the holders of any
such obligation. This proviso shall be for the benefit of the holder of any
such obligation and, upon the issuance of any such obligation by an authority of
the state, shall constitute a contract with the holder of such
obligations.
(B)
Notwithstanding the termination date stated in division (ii) of subparagraph (A)
of this paragraph (5), notwithstanding paragraph (6) of this subsection (a), and
notwithstanding subsection (b) of this Code section, a tax levied under this
paragraph may be extended by resolution of the levying county or municipality
and continue to be collected through December 31, 2050, if a state authority
certifies: (i) that the same portion of the proceeds will be used to fund a
successor facility to the multipurpose domed facility as is currently required
to fund the multipurpose domed facility under division (ii) of subparagraph (A)
of this paragraph; (ii) that such successor facility will be located on property
owned by the state authority; and (iii) that the state authority has entered
into a contract with a national football league team for use of the successor
facility by the national football league team through the end of the new
extended period of the tax collection. During the extended period of collection
provided for in this subparagraph, the county or municipality levying the tax
shall continue to comply with the expenditure requirements of division (i) of
subparagraph (A) of this paragraph. During the extended period of collection,
the county or municipality shall further expend (in each fiscal year during
which the tax is collected during the extended period of collection) an amount
equal to 39.3 percent of the total taxes collected at the rate of 7 percent
toward funding the successor facility certified by the state authority. Amounts
so expended shall be expended only through a contract with the certifying state
authority. Any tax levied pursuant to this paragraph shall terminate not later
than December 31, 2050, provided that during any period during which there
remains outstanding any obligation which is incurred to fund the successor
facility certified by the state authority, and secured in whole or in part by a
pledge of a tax authorized under this Code section, or any such obligation which
is incurred to refund such an obligation, the powers of the counties and
municipalities to impose and distribute the tax imposed by this paragraph (5)
shall not be diminished or impaired by the state and no county or municipality
levying the tax imposed by this paragraph shall cease to levy the tax in any
manner that will impair the interest and rights of the holders of any such
obligation. This proviso shall be for the benefit of the holder of any such
obligation and, upon the issuance of any such obligation by an authority of the
state, shall constitute a contract with the holder of such
obligations."
SECTION
2.
Said
Code section is further amended by revising paragraph (7) of subsection (a) as
follows:
"(7)
As used in this subsection, the term:
(A)
'Fund' and 'funding'
means
mean
the cost and expense of all things deemed necessary by a state authority for the
construction and operation of a multipurpose domed stadium
and a
successor facility to such multipurpose domed
stadium including but not limited to the
study, operation, marketing, acquisition, construction, finance, development,
extension, enlargement, or improvement of land, waters, property, streets,
highways, buildings, structures, equipment, or facilities, and the repayment of
any obligation incurred by an authority in connection therewith.
(B)
'Obligation' means bonds, notes, or any instrument creating an obligation to pay
or reserve moneys
incurred
prior to January 1, 1991, and having an
initial term of not more than 30 years.
(C)
'Multipurpose domed stadium facility' means a multipurpose domed stadium
facility and any associated parking areas or improvements originally owned or
operated incident to the ownership or operation of a facility used for
convention and trade show purposes by the state, a department or agency of the
state, a state authority, or a combination thereof."
SECTION
3.
Said
Code section is further amended by adding a new subsection to read as
follows:
"(b.1)
As an alternative to the provisions of subsection (b) of this Code section, any
county (within the territorial limits of the special district located within the
county) and any municipality which is levying a tax under this Code section at
the rate of 6 percent under paragraph (3.4) or (4) of subsection (a) of this
Code section shall be authorized to levy a tax under this Code section at the
rate of 7 percent in the manner provided in this subsection. Both the county
and municipality shall adopt a resolution which shall specify that an amount
equal to the total amount of taxes collected under such levy at a rate of 6
percent shall continue to be expended as it was expended pursuant to either
paragraph (3.4) or (4) of subsection (a) of this Code section, as
applicable, and such resolution shall specify the manner of expenditure of funds
for an amount equal to the total amount of taxes collected under such levy that
exceeds the amount that would be collected at the rate of 6 percent for any
tourism, convention, or trade show purposes, tourism product development
purposes, or any combination thereof. Each resolution shall be required to be
ratified by a local Act of the General Assembly. Only when both such local Acts
have become law, the governing authority of the county and municipality shall be
authorized to levy an excise tax pursuant to this subsection at the rate of 7
percent of the charge for the furnishing for value to the public of any room or
rooms, lodgings, or accommodations furnished by any person or legal entity
licensed by, or required to pay business or occupation taxes to, the
municipality for operating a hotel, motel, inn, lodge, tourist camp, tourist
cabin, campground, or any other place in which rooms, lodgings, or
accommodations are regularly or periodically furnished for
value."
SECTION
4.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.