HB1129: HB1129 Local government; designation of enterprise zones; provisions

26 HB 1129/AP House Bill 1129 (AS PASSED HOUSE AND SENATE) By: Representatives Seabaugh of the 34th, Gambill of the 15th, Wade of the 9th, Efstration of the 104th, Hong of the 103rd, and others 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 provide that enterprise zones shall not qualify for exemption from2 state sales and use tax; to provide for an exception; to provide for collection and assessment3 of fees; to provide for the use of the principal of revenue bon ds; to limit the number of4 enterprise zones in urban redevelopment areas; to provide a sunset date; to make allowances5 for enterprise zones in existence and those in the process of b eing approved prior to such6 sunset date; to provide for related matters; to provide for an effective date and applicability;7 to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Chapter 88 of Title 36 of the Official Code of Georgia Annotate d, relating to enterprise11 zones, is amended in Code Section 36-88-6, relating to criteria for enterprise zone, by12 revising subsection (g) as follows:13 "(g)(1) A nominated area under this subsection shall:14 (A) Be included in an urban redevelopment area as defined in Code Section 36-61-2;15 and16 H. B. 1129 - 1 - 26 HB 1129/AP (B) Contain within its borders the site for a redevelopment project having a minimum17 of $400 million in capital investment for the redevelopment of an area certified by the18 commissioner to have been chronically underdeveloped for a peri od of 20 years or19 more.20 (2)(A) The commissioner of the department may designate a nominated area satisfying21 Any nominated area meeting the criteria in paragraph (1) of this subsection may be22 designated as an enterprise zone. Any redevelopment project used to qualify an area23 for designation as an enterprise zone under this subsection shall, upon approval of such24 designation, qualify for an exemption of any local sales and use tax levied by a local25 governing body within the boundaries of such project.26 (B) Any redevelopment project used to qualify an area for designation as an enterprise27 zone under this subsection shall not, upon approval of such designation, qualify for an28 exemption of any state sales and use tax levied by this state w ithin the boundaries of29 such project unless such exemption is approved by the Governor or his or her designee.30 (3) Any variation in the sales price of goods and services wit hin any redevelopment31 project used to qualify an area for designation as an enterprise zone under this subsection32 attributable to lease arrangements between a retailer and the owner of the project shall be33 a permitted practice under Parts 1 and 2 of Article 15 of Chapter 1 of Title 10.34 (4)(A) By resolution or ordinance, the local governing body designating and creating35 that nominated an enterprise zone under this subsection may, after designatio n as an36 enterprise zone by the commissioner of the department, assess and collect annual37 enterprise zone infrastructure fees from each retailer that is a qualifying business or38 service enterprise making sales transactions exempted from sale s and use tax under39 paragraph (2) of this subsection in an amount not to exceed, in aggregate, the amount40 of sales and use tax on transactions of such retailer exempted under paragraph (2) of41 this subsection, which fees may be pledged by such local governing body, directly or42 H. B. 1129 - 2 - 26 HB 1129/AP indirectly, as security for revenue bonds issued for development or infrastructure within43 the enterprise zone.44 (B) The principal of the revenue bonds provided for under subp aragraph (A) of this45 paragraph shall not be used, directly or indirectly, to satisfy any obligation on or46 otherwise provide a return of the capital investment contemplated by subparagraph (B)47 of paragraph (1) of this subsection.48 (5) No enterprise zone shall be designated under this subsecti on in a county in which49 four enterprise zones under this subsection are wholly or partially located, regardless of50 which local governing body or bodies nominated such existing enterprise zones under this51 subsection.52 (6) This subsection shall not apply to projects involving or related to casino gambling."53 SECTION 2.54 This Act shall become effective on July 1, 2026, and shall appl y to enterprise zones55 designated on or after such date.56 SECTION 3.57 All laws and parts of laws in conflict with this Act are repealed.58 H. B. 1129 - 3 -