HB1100: HB1100 Sales and use tax; new special purpose local option sales tax dedicated to healthcare purposes; provide

26 LC 59 0207 House Bill 1100 By: Representatives Bell of the 75 th, Frye of the 122nd, Berry of the 56th, Jones of the 60th, Stinson of the 150th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales1 and use taxes, so as to provide for a new special purpose local option sales tax dedicated to2 healthcare purposes; to provide for definitions; to provide for authorization of tax and3 applicability; to provide for local authorization and referenda; to provide for imposition and4 termination of tax; to provide for administration and collection of tax; to provide for returns;5 to provide for dis tribution of tax p roceeds; to provide for per sonal property in other6 jurisdictions; to prohibit taxation of products ordered and delivered outside of jurisdiction;7 to prohibit taxation of certain construction materials; to provide for rules and regulations; to8 provide for impact on other taxes; to provide for accountability and the withholding of funds9 by the state; to provide for related matters; to provide an effective date; to repeal conflicting10 laws; and for other purposes.11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12 SECTION 1.13 Chapter 8 of Title 48 of the Official Code of Georgia Annotated , relating to sales and use14 taxes, is amended by revising subparagraph (a)(1)(C) of Code Se ction 48-8-6, relating to15 H. B. 1100 - 1 - 26 LC 59 0207 prohibition of political subdivisions from imposing various taxes, ceiling on local sales and16 use taxes, and taxation of mobile telecommunications, as follows:17 "(C) Up to 1 percent in aggregate of any sales and use taxes au thorized under Code18 Section 48-8-96, Code Section 48-8-97, Article 2B of this chapter, Part 3 of Article 319 of this chapter, Part 4 of Article 3 of this chapter, and Article 4 of this chapter."20 SECTION 2.21 Said chapter is further amended by revising Article 3, relating to county sales and use taxes,22 by adding a new part to read as follows:23 "Part 424 48-8-170.25 As used in this part, the term:26 (1) 'County special district' means the special district creat ed for a county under Code27 Section 48-8-166.28 (2) 'Healthcare enhancement purposes' means:29 (A) The hiring and continued employment of new healthcare prov iders to the extent30 that it provides a net increase in the total number of healthcare providers employed by31 a jurisdiction;32 (B) Programs, benefits, and training aimed at the recruitment, retention, or33 development of healthcare providers;34 (C) The purchase, maintenance, and operation of new healthcare facilities, equipment,35 technology, or software;36 (D) The repair, renovation, restoration, or improvement of existing healthcare facilities,37 equipment, technology, or software;38 H. B. 1100 - 2 - 26 LC 59 0207 (E) The examination or treatment of persons for the prevention of illness or the39 correction or treatment of any physical or mental condition res ulting from illness,40 injury, or other human physical problem by a healthcare provider; or41 (F) Any combination of the foregoing.42 (3) 'Healthcare provider' or 'provider' means any physician, d entist, podiatrist,43 pharmacist, optometrist, psychologist, clinical social worker, advanced practice nurse,44 registered optician, licensed professional counselor, physical therapist, marriage and45 family therapist, chiropractor, athletic trainer qualified pursuant to Code Section 43-5-8,46 occupational therapist, speech language pathologist, audiologist, dietitian, or physician47 assistant.48 48-8-171.49 Pursuant to the authority granted by Article IX, Section II, Paragraph VI of the Constitution50 of this state, there are created within this state 159 special districts. One such district shall51 exist within the geographical boundaries of each county, and the territory of each district52 shall include all of the territory within the county.53 48-8-172.54 (a) The governing authority of any municipality or any county whose geographic boundary55 is coterminous with that of its county special district shall b e authorized, subject to the56 requirement of referendum approval and the other requirements o f this part, to impose57 within the municipality or the special district a special sales and use tax for a limited period58 of time for healthcare enhancement purposes.59 (b) Except as provided in subsection (c) of this Code section, any tax imposed under this60 part shall be at the rate of 1 percent. Except as to rate, a tax imposed under this part shall61 correspond to the tax imposed by Article 1 of this chapter. No item or transaction which62 is not subject to taxation under Article 1 of this chapter shall be subject to a tax imposed63 H. B. 1100 - 3 - 26 LC 59 0207 under this part, except that a tax imposed under this part shall apply to sales of motor fuels64 as prepaid local tax as such term is defined in Code Section 48-8-2 and shall be applicable65 to the sale of food and food ingredients and alcoholic beverages as provided for in Code66 Section 48-8-3.67 (c) Such sales and use tax levied on sales of motor fuels as defined in Code Section 48-9-268 shall be at the rate of 1 percent of the retail sales price of the motor fuel which is not more69 than $3.00 per gallon.70 48-8-173.71 (a) The governing authority o f a municipality or county voting to impose the tax72 authorized by this part within the municipality or special district shall notify the qualified73 consolidated government election superintendent by forwarding t o the superintendent a74 copy of the resolution or ordinance of the governing authority calling for the imposition of75 the tax. Such ordinance or resolution shall specify the maximum period of time of the tax,76 to be stated in calendar years or calendar quarters and not to exceed five years.77 (b) Upon receipt of the resolution or ordinance, the election superintendent of the78 municipality or county shall issue the call for an election for the purpose of submitting the79 question of the imposition of the tax to the voters of the qualified consolidated government.80 Such election superintendent shall issue the call and shall con duct the election on a date81 and in the manner authorized under Code Section 21-2-540. Such election superintendent82 shall cause the date and purpose of the election to be published once a week for four weeks83 immediately preceding the date of the election in the legal org an of the municipality or84 county or in a newspaper having general circulation in the municipality or county at least85 equal to that of the legal organ.86 (c) The ballot shall have written or printed thereon the following:87 H. B. 1100 - 4 - 26 LC 59 0207 '( ) YES88 89 ( ) NO90 Shall a special 1 percent sales and use tax be imposed in the special district of ____________ for a period of time not to exceed __________ f or healthcare enhancement purposes?' (d) All persons desiring to vote in favor of imposing the tax shall vote 'Yes' and all persons91 opposed to levying the tax shall vote 'No.' If more than one-h alf of the votes cast are in92 favor of imposing the tax, then the tax shall be imposed as provided in this part; otherwise,93 the tax shall not be imposed and the question of imposing the t ax shall not again be94 submitted to the voters of the municipality or county until aft er 12 months immediately95 following the month in which the election was held; provided, however, that if an election96 date authorized under Code Section 21-2-540 occurs during the twelfth month immediately97 following the month in which such election was held, the question of imposing the tax may98 be submitted to the voters of the municipality or county on suc h date. The municipal or99 county election superintendent shall hold and conduct the election under the same rules and100 regulations as govern special elections. Such election superin tendent shall canvass the101 returns, declare the result of the election, and certify the result to the Secretary of State and102 to the commissioner. The expense of the election shall be paid from municipal or county103 funds.104 48-8-174.105 (a)(1) If the imposition of the tax is approved by referendum, the tax shall be imposed106 on the first day of the next succeeding calendar quarter which begins more than 80 days107 after the date of the election at which the tax was approved by the voters.108 (2) With respect to services that are regularly billed on a mo nthly basis, however, the109 resolution or ordinance imposing the tax shall become effective and the tax shall apply110 to the first regular billing period coinciding with or following the effective date specified111 in paragraph (1) of this subsection. A certified copy of the o rdinance or resolution112 H. B. 1100 - 5 - 26 LC 59 0207 imposing the tax shall be forwarded to the commissioner to ensure it is received within113 five business days after certification of the election results.114 (b) The tax shall cease to be imposed on the final day of the maximum period of time115 specified for the imposition of the tax.116 (c)(1) No qualified consolidated government shall at any time impose more than a117 single 1 percent tax under this part.118 (2) A qualified consolidated government in which a tax authori zed by this part is in119 effect may, while the tax is in effect, adopt a resolution or o rdinance calling for a120 reimposition of a tax as authorized by this part upon the termi nation of the tax then in121 effect; and a referendum may be held for this purpose while the t a x i s i n e f f e c t .122 Proceedings for such reimposition shall be in the same manner a s proceedings for the123 initial imposition of the tax as provided for in Code Section 48-8-168 and shall be solely124 within the discretion of the governing authority of the municip ality or county. Such125 newly authorized tax shall not be imposed until the expiration of the tax then in effect.126 48-8-175.127 A tax levied pursuant to this part shall be exclusively adminis tered and collected by the128 commissioner for the use and benefit of the municipality or county special district imposing129 the tax. Such administration and collection shall be accomplished in the same manner and130 subject to the same applicable provisions, procedures, and penalties provided in Article 1131 of this chapter except that the sales and use tax provided in this part shall be applicable to132 sales of motor fuels as prepaid local tax as such term is defin ed in Code Section 48-8-2;133 provided, however, that all moneys collected from each taxpayer by the commissioner shall134 be applied first to such taxpayer's liability for taxes owed the state; and provided, further,135 that the commissioner may rely upon a representation by or in b ehalf of the qualified136 consolidated government or the Secretary of State that such a tax has been validly imposed,137 and the commissioner and the commissioner's agents shall not be liable to any person for138 H. B. 1100 - 6 - 26 LC 59 0207 collecting any such tax which was not validly imposed. Dealers, as such term is defined139 in Code Section 48-8-2, shall be allowed a percentage of the am ount of the tax due and140 accounted for and shall be reimbursed in the form of a deduction in submitting, reporting,141 and paying the amount due if such amount is not delinquent at the time of payment. The142 deduction shall be at the rate and subject to the requirements specified under143 subsections (b) through (f) of Code Section 48-8-50.144 48-8-176.145 Each sales and use tax return remitting sales and use taxes collected under this part shall146 separately identify the location of each retail establishment at which any of the sales and147 use taxes remitted were collected and shall specify the amount of sales and the amount of148 taxes collected at each establishment for the period covered by the return to facilitate the149 determination by the commissioner that all sales and use taxes imposed by this part are150 collected and distributed according to situs of sale.151 48-8-177.152 The proceeds of the tax collected by the commissioner in each q ualified consolidated153 government under this part shall be disbursed as soon as practi cable after collection as154 follows:155 (1) One percent of the amount collected shall be paid into the general fund of the state156 treasury to defray the costs of administration; and157 (2) The remaining proceeds of the tax shall be distributed to the governing authority of158 the qualified consolidated government imposing the tax.159 48-8-178.160 Where a local sales or use tax has been paid with respect to tangible personal property by161 the purchaser either in another local tax jurisdiction within the state or in a tax jurisdiction162 H. B. 1100 - 7 - 26 LC 59 0207 outside the state, the tax may be credited against the tax authorized to be imposed by this163 part upon the same property. If the amount of sales or use tax so paid is less than the164 amount of the use tax due under this part, the purchaser shall pay an amount equal to the165 difference between the amount paid in the other tax jurisdiction and the amount due under166 this part. The commissioner may require such proof of payment in another local tax167 jurisdiction as the commissioner deems necessary and proper. No credit shall be granted,168 however, against the tax imposed under this part for tax paid in another jurisdiction if the169 tax paid in such other jurisdiction is used to obtain a credit against any other local sales and170 use tax levied in the qualified consolidated government or in a special district which171 includes the qualified consolidated government; and taxes so paid in another jurisdiction172 shall be credited first against the tax levied under Article 2 of this chapter, if applicable,173 then against the tax levied under Part 1 of Article 3 of this c hapter, if applicable, then174 against the tax levied under Part 2 of Article 3 of this chapte r, if applicable, and then175 against the tax levied under this part.176 48-8-179.177 No tax provided for in this part shall be imposed upon the sale of tangible personal178 property which is ordered by and delivered to the purchaser at a point outside the179 geographical area of the qualified consolidated government in w hich the tax is imposed180 regardless of the point at which title passes, if the delivery is made by the seller's vehicle,181 and including United Stat es mail or common carrier or by a priv ate or contract carrier182 licensed by the Federal Motor Carrier Safety Administration or the Georgia Department183 of Public Safety.184 48-8-180.185 No tax provided for in this part shall be imposed upon the sale or use of building and186 construction materials when the contract for which the materials are purchased or used was187 H. B. 1100 - 8 - 26 LC 59 0207 advertised for bid prior to the voters' approval of the levy of the tax and the contract was188 entered into as a result of a bid actually submitted in response to the advertisement prior189 to approval of the levy of the tax.190 48-8-181.191 The commissioner shall have the power and authority to promulga te such rules and192 regulations as shall be necessary for the effective and efficie nt administration and193 enforcement of the collection of the tax authorized by this part.194 48-8-182.195 The tax authorized by this part shall be in addition to any other local sales and use tax. The196 imposition of any other local sales and use tax within a county , municipality, or special197 district shall not affect the authority of a qualified consolidated government to impose the198 tax authorized by this part and the imposition of the tax autho rized by this part shall not199 affect the imposition of any otherwise authorized local sales and use tax within a county,200 municipality, or special district.201 48-8-183.202 (a) The proceeds received from the tax authorized by this part shall be used by a:203 (1) Municipality exclusively for healthcare enhancement purpos es within the204 municipality; or205 (2) County exclusively for healthcare enhancement purposes within the county special206 district.207 (b) All proceeds of the tax authorized by this part shall be kept in a separate account from208 other funds of the municipality or county and shall not in any manner be commingled with209 other funds of the municipality or county prior to expenditure. No amount of such funds210 shall be used in any way to supplant or reduce other funding in place for healthcare211 H. B. 1100 - 9 - 26 LC 59 0207 enhancement purposes as of the fiscal year of the municipality or county immediately prior212 to the adoption of the resolution calling for the tax.213 (c) The governing authority of each municipality and county levying the tax shall maintain214 a record of every expenditure for which the proceeds of the tax have been used. Each215 municipality or county that levies the tax authorized by this p art shall include a216 summarized accounting of all expenditures of such proceeds over the prior fiscal year in217 such municipality's or county's regular annual audit otherwise required by law. The auditor218 shall verify and test expenditures sufficient to provide assurances that the schedule is fairly219 presented in relation to the financial statements. The auditor 's report on the financial220 statements shall include an opinion, or disclaimer of opinion, as to whether the accounting221 is presented fairly in all material respects in relation to the financial statements taken as a222 whole.223 48-8-184.224 If at any point it is determined by the commissioner or the state auditor that the proceeds225 of the tax authorized by this part are not being used by a muni cipality or county for226 healthcare enhancement purposes in accordance with this part, t he commissioner shall227 withhold the proceeds of the tax from the municipality or county until a plan is devised by228 the municipality or county and approved by the commissioner as rectifying the failure to229 comply with this part. If no such plan is devised and approved within 180 days, the tax230 shall cease to be collected and such funds shall be held in tru st by the state to use for231 healthcare enhancement purposes to benefit the municipality or county special district."232 SECTION 3.233 This Act shall become effective upon its approval by the Governor or upon its becoming law234 without such approval.235 H. B. 1100 - 10 - 26 LC 59 0207 SECTION 4.236 All laws and parts of laws in conflict with this Act are repealed.237 H. B. 1100 - 11 -