HR1104: HR1104 Local government; sales and use tax for purpose of providing property tax relief; authorize - CA

26 LC 28 0704 House Resolution 1104 By: Representatives Washburn of the 144th, Dickey of the 134th, Rhodes of the 124th, Corbett of the 174th, Frye of the 122nd, and others A RESOLUTION Proposing an amendment to the Constitution so as to provide that the governing authority of1 any county or consolidated government shall be authorized to impose a sales and use tax in2 such county or consolidated government for the purpose of providing property tax relief in3 such county or consolidated government; to provide for conditions and limitations; to provide4 for legislative findings; to provide for related matters; to provide for the submission of this5 amendment for ratification or rejection; and for other purposes.6 BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 (a) The General Assembly finds and determines that it is appro priate and advisable to9 provide for an optional local sales and use tax for counties and consolidated governments to10 be able to offset ad valorem taxes on real property in such cou nties or consolidated11 governments.12 (b) The General Assembly further finds and declares that allowing for an optional local sales13 and use tax would:14 (1) Spread the tax burden for the funding of counties and consolidated governments over15 a larger number of persons, thereby reducing the burden on property owners;16 (2) Help eliminate the annual discussions on capping value increases on real property;17 H. R. 1104 - 1 - 26 LC 28 0704 (3) Eliminate the need for exemptions that attempt to cap or f reeze property value18 increases, which are administratively cumbersome and confusing to taxpayers; and19 (4) Help address the property tax burden which may, in some ci rcumstances, force20 people from their homes.21 SECTION 2.22 The Constitution of the State of Georgia is amended in Article IX by adding a new Section23 to read as follows:24 "SECTION VIII.25 OPTIONAL SALES AND USE TAX FOR REAL PROPERTY TAX RELIEF26 Paragraph I. Optional sales and use tax for real property tax relief purposes. (a) The27 governing authority of each county or consolidated government i n this state may by28 resolution impose, levy, and collect a sales and use tax for pr operty tax relief in such29 county or consolidated government conditioned upon approval by a majority of the30 qualified voters residing within the limits of the local taxing jurisdiction voting in a31 referendum thereon. This tax shall be at the rate of 1 percent and shall be imposed for a32 period of time not to exceed five years, but in all other respe cts, except as otherwise33 provided in this Section, shall correspond to and be levied in the same manner as the tax34 provided for by Article 3 of Chapter 8 of Title 48 of the Offic ial Code of Georgia35 Annotated, relating to the special county 1 percent sales and use tax, as now or hereafter36 amended. Proceedings for the reimposition of such tax shall be in the same manner as37 proceedings for the initial imposition of the tax, but the newly authorized tax shall not be38 imposed until the expiration of the tax then in effect.39 H. R. 1104 - 2 - 26 LC 28 0704 (b) The proceeds of the tax shall be used and expended only to provide for a40 dollar-for-dollar decrease in the amount of ad valorem tax imposed on real property in such41 county or consolidated government.42 (c) The resolution calling for the imposition of the tax and the ballot question shall each43 describe that the sales and use tax shall be used:44 (1) Only for the purpose of reducing ad valorem taxes on real property in the county45 or consolidated government; and46 (2) For a maximum period of time, to be stated in calendar years or calendar quarters,47 not to exceed five years.48 (d) Nothing in this Section shall prohibit a county or consoli dated government from49 imposing additional local sales and use taxes authorized by general law.50 (e) The tax imposed pursuant to this Section shall not be subject to and shall not count51 with respect to any general law limitation regarding the maximu m amount of local sales52 and use taxes which may be levied in any jurisdiction in this state.53 (f) The tax imposed pursuant to this Section shall not be subject to any sales and use tax54 exemption with respect to the sale or use of food and beverages which is imposed by law.55 (g) The tax authorized by this Section may be imposed, levied, and collected as provided56 in this Section without further action by the General Assembly, but the General Assembly57 shall be authorized by general law to further define and implement its provisions."58 SECTION 3.59 The above proposed amendment to the Constitution shall be publi shed and submitted as60 provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the61 above proposed amendment shall have written or printed thereon the following:62 H. R. 1104 - 3 - 26 LC 28 0704 "( ) YES63 ( ) NO64 65 66 67 68 Shall the Constitution of Georgia be amended so as to authorize t h e governing authority of a county or consolidated government to a dopt an optional local sales and use tax for the purpose of reducing ad valorem taxes on real property in such county or consolidated government cond itioned upon approval by the electors of such county or consolidated government in a referendum?" All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes." 69 All persons desiring to vote against ratifying the proposed amendment shall vote "No." If70 such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall71 become a part of the Constitution of this state.72 H. R. 1104 - 4 -