HB 1216: Revenue and taxation; require that any excise tax on rooms, lodgings, and accommodations be remitted to the Department of Revenue for disbursement

House Bill 1216

By: Representatives Stephens of the 164th, Greene of the 154th, Carpenter of the 4th, Dempsey of the 13th, Jones of the 143rd, and others

A BILL TO BE ENTITLED

AN ACT

To amend Article 3 of Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to excise tax on rooms, lodgings, and accommodations, so as to require that any excise tax on rooms, lodgings, and accommodations be remitted to the Department of Revenue for disbursement; to provide for the submission of contracts and memoranda of understanding to facilitate such disbursement; to provide for an itemized list of approved expenditures accompanying each disbursement; to provide for rules, regulations, and forms; to provide for conforming changes; to provide for an effective date and applicability; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 3 of Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to excise tax on rooms, lodgings, and accommodations, is amended by adding a new Code section to read as follows:

"48-13-50.5.

(a) Notwithstanding any other provision of this article, any tax levied and collected pursuant to this article shall be remitted to the department instead of the applicable county or municipality. Each tax return remitting taxes collected under this article shall separately identify the location of each establishment at which any of the taxes remitted were collected and shall specify 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 properly collected and disbursed.

(b) Any county or municipality levying a tax authorized under this article shall furnish to the department all contracts and memoranda of understanding governing the expenditure of proceeds from such tax.

(c) The proceeds of any tax remitted to the department under this article shall be disbursed as soon as practicable under the terms set forth in contracts and memoranda of understanding submitted to the department, as required under subsection (b) of this Code section. The department shall make such disbursements directly to the applicable county or municipality, applicable destination marketing organization, and any other legal entity designated as a recipient of the proceeds of such tax in the applicable contract or memorandum of understanding. The department shall include with each disbursement to a county or municipality a line item identifying the proceeds of the tax that must be allocated for tourism product development.

(d)(1) 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 remittance and disbursement of the tax authorized to be imposed by this article.

(2) The commissioner shall be authorized to promulgate any rules and forms relative to the provisions of this article."

SECTION 2.

Said article is further amended by revising division (a)(1)(B)(ii) of Code Section 48-13-51, relating to county and municipal levies on public accommodation charges for promotion of tourism, conventions, and trade shows, as follows:

"(ii) Any tax levied as provided in this Code section is also imposed upon every person or entity who is a guest and who receives a room, lodging, or accommodation that is subject to the tax levied under this Code section. Every such guest subject to the tax levied under this Code section shall pay the tax to the innkeeper providing or facilitating the room, lodging, or accommodation. The tax shall be a debt of the person obtaining the room, lodging, or accommodation to the innkeeper providing or facilitating such room, lodging, or accommodation until it is paid and shall be recoverable at law by the innkeeper providing or facilitating such room, lodging, or accommodation in the same manner as authorized for the recovery of other debts. The innkeeper collecting the tax from the guest shall remit the tax to the governing authority imposing the tax department, and the tax remitted shall be a credit against the tax imposed by division (i) of this subparagraph on the innkeeper providing or facilitating the room, lodging, or accommodation."

SECTION 3.

Said article is further amended by revising Code Section 48-13-53, relating to procedures relative to excise tax on rooms, lodgings, and accommodations, as follows:

"48-13-53.

Except as otherwise specifically provided in this article, the rate of taxation, the manner of imposition, payment, and collection of the tax, and all other procedures related to the tax shall be as provided by each county and municipality electing to exercise the powers conferred by this article."

SECTION 4.

Said article is further amended by revising Code Section 48-13-53.2, relating to tax returns and remittances, as follows:

"48-13-53.2.

(a) Each innkeeper, on or before the twentieth day of each month, shall transmit returns and remit taxes due to any applicable governing authority imposing a tax under this article to the department showing the gross charges taxable under this article during the preceding calendar month. The governing authority imposing the tax may provide by resolution or ordinance for quarterly or annual returns. The returns required by this subsection shall be made upon forms prescribed, prepared, and furnished by the governing authority imposing the tax department.

(b) As used in this subsection, the term 'estimated tax liability' means an innkeeper's tax liability under this article, adjusted to account for any subsequent change in the rate of tax imposed under this article or any substantial change in circumstances due to damage to the premises, based on his or her average monthly payments for the last fiscal year. If the estimated tax liability of an innkeeper for any taxable period exceeds $2,500.00, the innkeeper shall file a return and remit to the governing authority imposing the tax department not less than 50 percent of the estimated tax liability for the taxable period on or before the twentieth day of the period. The amount of the payment of the estimated tax liability shall be credited against the amount to be due on the return required under subsection (a) of this Code section. This subsection shall not apply to any innkeeper unless during the previous fiscal year the innkeeper's monthly payments exceeded $2,500.00 per month for three consecutive months or more."

SECTION 5.

Said article is further amended by revising Code Section 48-13-53.3, relating to taxes, extensions and returns, and failure of innkeeper to make return and pay required tax, as follows:

"48-13-53.3.

(a)(1) The governing authority imposing a tax under this article department may, for good cause, extend the time for making any returns required under this article for not more than 30 days.

(2) No extension granted pursuant to paragraph (1) of this subsection shall be valid unless granted in writing upon written application, and then the extension shall only be valid for a period, as appropriate, of not more than 12 consecutive months or four consecutive calendar quarters.

(3) Upon the grant of any extension authorized by this subsection, the innkeeper shall remit to the governing authority imposing a tax under this article department on or before the date the tax would otherwise become due without the grant of the extension an amount which equals not less than 100 percent of the innkeeper's payment for the corresponding period of the preceding tax year.

(4) No interest or penalty shall be charged by reason of the granting of an extension pursuant to this subsection during the first ten days of each extension period. Thereafter, interest shall be collected upon the unpaid balance of the innkeeper's liability at the rate specified in Code Section 48-2-40.

(b) In the event any innkeeper fails to make a return and pay the tax as provided by this article or makes a grossly incorrect return or a return that is false or fraudulent, the governing authority imposing a tax under this article shall make an estimate for the taxable period of taxable charges of the innkeeper. Based upon its estimate, the governing authority shall assess and collect the taxes, interest, and penalties, as accrued, on the basis of the assessments."

SECTION 6.

Said article is further amended by revising Code Section 48-13-54, relating to taxes, extensions and returns, and failure of innkeeper to make return and pay required tax, as follows:

"48-13-54.

Any state park operated under the jurisdiction of the Department of Natural Resources, or a state authority that is administratively attached to the Department of Natural Resources, which state park or authority regularly furnishes for value lodge rooms as well as meals and conference or meeting facilities or has a minimum of 20 cabins and which rooms, facilities, or cabins located in a county or municipality levying a tax under this article shall, as provided in this Code section, agree to collect and remit to the county or municipality within whose taxing jurisdiction the facility is located department amounts which are equal to, or partially equal to, the amounts which would be collected and remitted to the county or municipality department under the tax levied by the county or municipality under Code Section 48-13-51 if such rooms, facilities, or cabins were privately operated. The sums so collected and remitted shall only be expended for development, promotion, and advertising of such rooms, facilities, or cabins from which the money was collected and remitted or for similar purposes of promoting, advertising, stimulating, and developing conventions and tourism in the county or municipality in which such rooms, facilities, or cabins of the state park or state authority are located so long as said promotion or advertising prominently features the state park or state authority rooms, facilities, or cabins."

SECTION 7.

Said article is further amended by revising Code Section 48-13-56, relating to annual report to department of community affairs, as follows:

"48-13-56.

Each county or municipality imposing a tax as authorized by this article shall, as a condition of continuing authorization to impose the tax, annually file with the department and the Department of Community Affairs a report specifying the rate of taxation and amounts collected and expended pursuant to this article. Such report shall include the schedules specified under subparagraph (b)(1)(B) of Code Section 36-81-8 and shall be filed in such form and at such times as may be specified by rule of the Department of Community Affairs."

SECTION 8.

Said article is further amended by revising subsection (a) of Code Section 48-13-58.1, relating to criminal penalties for failure to make return or pay taxes, as follows: "(a) It shall be unlawful for any innkeeper to fail to make a return and pay the taxes due under this article to any applicable governing authority imposing a tax under this article."

SECTION 9.

Said article is further amended by revising subsection (a) of Code Section 48-13-61, relating to failure to furnish return and punishment, as follows:

"(a) It shall be unlawful for any innkeeper subject to this article to fail or refuse to furnish any return required to be made by this article or to fail or refuse to furnish a supplemental return or other data required by the department or the governing authority imposing a tax under this article."

SECTION 10.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval and shall be applicable to all taxable years beginning on or after January 1, 2027.

SECTION 11.

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