HR 1418: State-wide sales and use tax; property tax relief in counties or consolidated governments; provide - CA

House Resolution 1418

By: Representatives Washburn of the 144th, Dickey of the 134th, Carpenter of the 4th, Corbett of the 174th, Williams of the 148th, and others

A RESOLUTION

Proposing an amendment to the Constitution so as to impose a 1 percent, state-wide sales and use tax for which the proceeds shall be distributed to the governing authorities of the counties and consolidated governments of this state on a population basis for the purpose of providing property tax relief in such counties or consolidated governments; to provide for conditions and limitations; to provide for legislative findings, determinations, and declarations; to provide for related matters; to provide for the submission of this amendment for ratification or rejection; and for other purposes.

BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

(a) The General Assembly finds and determines that it is appropriate and advisable to provide for a state-wide sales and use tax for counties and consolidated governments to be able to offset ad valorem taxes on real property in such counties or consolidated governments.

(b) The General Assembly further finds and declares that allowing for such sales and use tax would:

(1) Spread the tax burden for the funding of counties and consolidated governments over a larger number of persons, thereby reducing the burden on property owners; and

(2) Help address the property tax burden which may, in some circumstances, force people from their homes.

SECTION 2.

The Constitution of the State of Georgia is amended in Article IX by adding a new section to read as follows:

"SECTION VIII.

STATE-WIDE SALES AND USE TAX FOR REAL PROPERTY TAX RELIEF

Paragraph I. State-wide sales and use tax for real property tax relief purposes. (a) The state shall impose, levy, and collect a sales and use tax for property tax relief. This tax shall be at the rate of 1 percent and shall correspond to and be levied in the same manner as the tax provided for by Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to state sales and use taxes, as now or hereafter amended.

(b) The proceeds of the tax shall be used and expended to provide for a dollar-for-dollar decrease in the amount of ad valorem tax imposed on real property in such county or consolidated government and only as provided in this section. The proceeds of the tax shall be collected by the state and shall be paid on an annual basis to the governing authority of each county and consolidated government on the basis of population as established by the most recent United States decennial census.

(c) The proceeds of the sales and use tax shall be used:

(1) First, to reduce ad valorem taxes on residential homestead real property in the county or consolidated government;

(2) Second, if the sales taxes revenues distributed to a county or consolidated government are in excess of the funds necessary to fully offset and reduce residential homestead ad valorem taxes for such county or consolidated government, to reduce ad valorem taxes on all other real property in such county or consolidated government; and

(3) Third, if sales tax revenues remain after fully reducing and offsetting all real property ad valorem taxes for such county or consolidated government, for such other purposes as the governing authority of the county or consolidated government deems appropriate.

(d) Nothing in this section shall prohibit the state or a county or consolidated government from imposing additional local sales and use taxes authorized by general law.

(e) The tax imposed pursuant to this section shall not be subject to and shall not count with respect to any general law limitation regarding the maximum amount of local sales and use taxes which may be levied in any jurisdiction in this state.

(f) The tax imposed pursuant to this section shall not be subject to any sales and use tax exemption with respect to the sale or use of food and beverages which is imposed by law.

(g) The tax authorized by this section may be imposed, levied, and collected as provided in this section without further action by the General Assembly, but the General Assembly shall be authorized by general law to further define and implement its provisions."

SECTION 3.

The above proposed amendment to the Constitution shall be published and submitted as provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the above proposed amendment shall have written or printed thereon the following: "( ) YES Shall the Constitution of Georgia be amended so as to impose a 1 percent ( ) NO state-wide sales and use tax for the purpose of reducing ad valorem taxes on real property in counties or consolidated governments based upon population?"

All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes." All persons desiring to vote against ratifying the proposed amendment shall vote "No." If such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall become a part of the Constitution of this state.