HB416: HB416 Local government; enterprise zones; revise class of retailer from which fees may be collected

25 LC 44 3107S/AP House Bill 416 (AS PASSED HOUSE AND SENATE) By: Representatives Efstration of the 104th, Blackmon of the 146th, and Kelley of the 16th A BILL TO BE ENTITLED AN ACT To amend Chapter 88 of Title 36 of the Official Code of Georgia Annotated, relating to1 enterprise zones, so as to revise the class of retailer from wh ich fees may be collected; to2 revise the period of existence of enterprise zones; to provide for related matters; to repeal3 conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Chapter 88 of Title 36 of the Official Code of Georgia Annotate d, relating to enterprise7 zones, is amended in Code Section 36-88-6, relating to criteria for enterprise zone, by8 revising subsection (g) as follows:9 "(g)(1) A nominated area under this subsection shall:10 (A) Be included in an urban redevelopment area as defined by p aragraph (23) of in11 Code Section 36-61-2; and12 (B) Contain within its borders the site for a redevelopment project having a minimum13 of $400 million in capital investment for the redevelopment of an area certified by the14 commissioner to have been chronically underdeveloped for a peri od of 20 years or15 more.16 H. B. 416 - 1 - 25 LC 44 3107S/AP (2) Any nominated area meeting the criteria in paragraph (1) of this subsection may be17 designated as an enterprise zone. Any redevelopment project used to qualify an area for18 designation as an enterprise zone under this subsection shall, upon approval of such19 designation, qualify for an exemption of any sales and use tax levied within the20 boundaries of such project.21 (3) Any variation in the sales price of goods and services wit hin any redevelopment22 project used to qualify an area for designation as an enterprise zone under this subsection23 attributable to lease arrangements between a retailer and the owner of the project shall be24 a permitted practice under Parts 1 and 2 of Article 15 of Chapter 1 of Title 10.25 (4) By resolution or ordinance, the local governing body desig nating and creating an26 enterprise zone under this subsection may assess and collect an nual enterprise zone27 infrastructure fees from each retailer operating within the boundaries of the project that28 is a qualifying business or service enterprise making sales tra nsactions exempted from29 sales and use tax under paragraph (2) of this subsection in an amount not to exceed, in30 aggregate, the amount of sales and use tax on transactions of s uch retailer exempted31 under paragraph (2) of this subsection, which fees may be pledg ed by such local32 governing body, directly or indirectly, as security for revenue bonds issued for33 development or infrastructure within the enterprise zone.34 (5) This subsection shall not apply to projects involving or related to casino gambling."35 SECTION 2.36 Said chapter is further amended by revising Code Section 36-88- 10, relating to time37 limitations, as follows:38 "36-88-10.39 An area designated as an enterprise zone shall remain in existence for ten years from the40 first day of the calendar year immediately following its designation as an enterprise zone;41 provided, however, that an area designated as an enterprise zone under subsection (g) of42 H. B. 416 - 2 - 25 LC 44 3107S/AP Code Section 36-88-6 shall remain in existence for 30 years fro m such day or until the43 redevelopment project required in subparagraph (g)(1)(B) of Cod e Section 36-88-6 is44 complete and t h e f i r s t i s s u a n c e o f any revenue bonds issued under paragraph (4) of45 subsection (g) of Code Section 36-88-6 are retired, whichever first occurs with a principal46 amount in excess of $100,000.00 . Municipal and county governments may enter into47 agreements with qualifying business or service enterprises in designated enterprise zones48 to provide for modification or termination of the tax and fee exemptions and abatements.49 Property tax incentives available to a qualified business or se rvice enterprise in an50 enterprise zone shall remain in effect for the full ten-year pe riod established by Code51 Section 36-88-8, regardless of the termination of the designation of the enterprise zone."52 SECTION 3.53 All laws and parts of laws in conflict with this Act are repealed.54 H. B. 416 - 3 -