HB1214: HB1214 Sales and use tax; new special purpose local option sales tax dedicated to certain healthcare purposes; provide

26 LC 59 0298 House Bill 1214 By: Representatives O’Steen of the 169th, Burchett of the 176th, Williams of the 148th, Kelley of the 16th, Corbett of the 174th, 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 certain 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. 1214 - 1 - 26 LC 59 0298 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 capital outlay pro jects for hospitals,29 providing for bad debt, indigent care, and any other shortfalls associated with providing30 healthcare services to the community.31 (3) 'Hospital' means a nonprofit hospital, a hospital owned or operated by a hospital32 authority, or a nonprofit corporation formed, created, or opera ted by or on behalf of a33 hospital authority.34 48-8-171.35 Pursuant to the authority granted by Article IX, Section II, Paragraph VI of the Constitution36 of this state, there are created within this state 159 special districts. One such district shall37 H. B. 1214 - 2 - 26 LC 59 0298 exist within the geographical boundaries of each county, and the territory of each district38 shall include all of the territory within the county.39 48-8-172.40 (a) The governing authority of any municipality or any county whose geographic boundary41 is coterminous with that of its county special district shall b e authorized, subject to the42 requirement of referendum approval and the other requirements o f this part, to impose43 within the municipality or the special district a special sales and use tax for a limited period44 of time for healthcare enhancement purposes.45 (b) Except as provided in subsection (c) of this Code section, any tax imposed under this46 part shall be at the rate of 1 percent. Except as to rate, a tax imposed under this part shall47 correspond to the tax imposed by Article 1 of this chapter. No item or transaction which48 is not subject to taxation under Article 1 of this chapter shall be subject to a tax imposed49 under this part, except that a tax imposed under this part shall apply to sales of motor fuels50 as prepaid local tax as such term is defined in Code Section 48-8-2 and shall be applicable51 to the sale of food and food ingredients and alcoholic beverages as provided for in Code52 Section 48-8-3.53 (c) Such sales and use tax levied on sales of motor fuels as defined in Code Section 48-9-254 shall be at the rate of 1 percent of the retail sales price of the motor fuel which is not more55 than $3.00 per gallon.56 48-8-173.57 (a) The governing authority of a municipality or county voting to impose the tax58 authorized by this part within the municipality or special district shall notify the qualified59 consolidated government election superintendent by forwarding t o the superintendent a60 copy of the resolution or ordinance of the governing authority calling for the imposition of61 H. B. 1214 - 3 - 26 LC 59 0298 the tax. Such ordinance or resolution shall specify the maximum period of time of the tax,62 to be stated in calendar years or calendar quarters and not to exceed five years.63 (b) Upon receipt of the resolution or ordinance, the election superintendent of the64 municipality or county shall issue the call for an election for the purpose of submitting the65 question of the imposition of the tax to the voters of the qualified consolidated government.66 Such election superintendent shall issue the call and shall con duct the election on a date67 and in the manner authorized under Code Section 21-2-540. Such election superintendent68 shall cause the date and purpose of the election to be published once a week for four weeks69 immediately preceding the date of the election in the legal org an of the municipality or70 county or in a newspaper having general circulation in the municipality or county at least71 equal to that of the legal organ.72 (c) The ballot shall have written or printed thereon the following:73 '( ) YES74 75 ( ) NO76 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 persons77 opposed to levying the tax shall vote 'No.' If more than one-h alf of the votes cast are in78 favor of imposing the tax, then the tax shall be imposed as provided in this part; otherwise,79 the tax shall not be imposed and the question of imposing the t ax shall not again be80 submitted to the voters of the municipality or county until aft er 12 months immediately81 following the month in which the election was held; provided, however, that if an election82 date authorized under Code Section 21-2-540 occurs during the twelfth month immediately83 following the month in which such election was held, the question of imposing the tax may84 be submitted to the voters of the municipality or county on suc h date. The municipal or85 county election superintendent shall hold and conduct the election under the same rules and86 regulations as govern special elections. Such election superin tendent shall canvass the87 H. B. 1214 - 4 - 26 LC 59 0298 returns, declare the result of the election, and certify the result to the Secretary of State and88 to the commissioner. The expense of the election shall be paid from municipal or county89 funds.90 48-8-174.91 (a)(1) If the imposition of the tax is approved by referendum, the tax shall be imposed92 on the first day of the next succeeding calendar quarter which begins more than 80 days93 after the date of the election at which the tax was approved by the voters.94 (2) With respect to services that are regularly billed on a mo nthly basis, however, the95 resolution or ordinance imposing the tax shall become effective and the tax shall apply96 to the first regular billing period coinciding with or following the effective date specified97 in paragraph (1) of this subsection. A certified copy of the o rdinance or resolution98 imposing the tax shall be forwarded to the commissioner to ensure it is received within99 five business days after certification of the election results.100 (b) The tax shall cease to be imposed on the final day of the maximum period of time101 specified for the imposition of the tax.102 (c)(1) No qualified consolidated government shall at any time impose more than a103 single 1 percent tax under this part.104 (2) A qualified consolidated government in which a tax authori zed by this part is in105 effect may, while the tax is in effect, adopt a resolution or o rdinance calling for a106 reimposition of a tax as authorized by this part upon the termi nation of the tax then in107 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 .108 Proceedings for such reimposition shall be in the same manner a s proceedings for the109 initial imposition of the tax as provided for in Code Section 48-8-168 and shall be solely110 within the discretion of the governing authority of the municip ality or county. Such111 newly authorized tax shall not be imposed until the expiration of the tax then in effect.112 H. B. 1214 - 5 - 26 LC 59 0298 48-8-175.113 A tax levied pursuant to this part shall be exclusively adminis tered and collected by the114 commissioner for the use and benefit of the municipality or county special district imposing115 the tax. Such administration and collection shall be accomplished in the same manner and116 subject to the same applicable provisions, procedures, and penalties provided in Article 1117 of this chapter except that the sales and use tax provided in this part shall be applicable to118 sales of motor fuels as prepaid local tax as such term is defin ed in Code Section 48-8-2;119 provided, however, that all moneys collected from each taxpayer by the commissioner shall120 be applied first to such taxpayer's liability for taxes owed the state; and provided, further,121 that the commissioner may rely upon a representation by or in b ehalf of the qualified122 consolidated government or the Secretary of State that such a tax has been validly imposed,123 and the commissioner and the commissioner's agents shall not be liable to any person for124 collecting any such tax which was not validly imposed. Dealers, as such term is defined125 in Code Section 48-8-2, shall be allowed a percentage of the am ount of the tax due and126 accounted for and shall be reimbursed in the form of a deduction in submitting, reporting,127 and paying the amount due if such amount is not delinquent at the time of payment. The128 deduction shall be at the rate and subject to the requirements specified under129 subsections (b) through (f) of Code Section 48-8-50.130 48-8-176.131 Each sales and use tax return remitting sales and use taxes collected under this part shall132 separately identify the location of each retail establishment at which any of the sales and133 use taxes remitted were collected and shall specify the amount of sales and the amount of134 taxes collected at each establishment for the period covered by the return to facilitate the135 determination by the commissioner that all sales and use taxes imposed by this part are136 collected and distributed according to situs of sale.137 H. B. 1214 - 6 - 26 LC 59 0298 48-8-177.138 The proceeds of the tax collected by the commissioner in each q ualified consolidated139 government under this part shall be disbursed as soon as practi cable after collection as140 follows:141 (1) One percent of the amount collected shall be paid into the general fund of the state142 treasury to defray the costs of administration; and143 (2) The remaining proceeds of the tax shall be distributed to the governing authority of144 the qualified consolidated government imposing the tax.145 48-8-178.146 Where a local sales or use tax has been paid with respect to tangible personal property by147 the purchaser either in another local tax jurisdiction within the state or in a tax jurisdiction148 outside the state, the tax may be credited against the tax authorized to be imposed by this149 part upon the same property. If the amount of sales or use tax so paid is less than the150 amount of the use tax due under this part, the purchaser shall pay an amount equal to the151 difference between the amount paid in the other tax jurisdiction and the amount due under152 this part. The commissioner may require such proof of payment in another local tax153 jurisdiction as the commissioner deems necessary and proper. No credit shall be granted,154 however, against the tax imposed under this part for tax paid in another jurisdiction if the155 tax paid in such other jurisdiction is used to obtain a credit against any other local sales and156 use tax levied in the qualified consolidated government or in a special district which157 includes the qualified consolidated government; and taxes so paid in another jurisdiction158 shall be credited first against the tax levied under Article 2 of this chapter, if applicable,159 then against the tax levied under Part 1 of Article 3 of this c hapter, if applicable, then160 against the tax levied under Part 2 of Article 3 of this chapte r, if applicable, and then161 against the tax levied under this part.162 H. B. 1214 - 7 - 26 LC 59 0298 48-8-179.163 No tax provided for in this part shall be imposed upon the sale of tangible personal164 property which is ordered by and delivered to the purchaser at a point outside the165 geographical area of the qualified consolidated government in w hich the tax is imposed166 regardless of the point at which title passes, if the delivery is made by the seller's vehicle,167 and including United States mail or common carrier or by a priv ate or contract carrier168 licensed by the Federal Motor Carrier Safety Administration or the Georgia Department169 of Public Safety.170 48-8-180.171 No tax provided for in this part shall be imposed upon the sale or use of building and172 construction materials when the contract for which the materials are purchased or used was173 advertised for bid prior to the voters' approval of the levy of the tax and the contract was174 entered into as a result of a bid actually submitted in response to the advertisement prior175 to approval of the levy of the tax.176 48-8-181.177 The commissioner shall have the power and authority to promulga te such rules and178 regulations as shall be necessary for the effective and efficie nt administration and179 enforcement of the collection of the tax authorized by this part.180 48-8-182.181 The tax authorized by this part shall be in addition to any other local sales and use tax. The182 imposition of any other local sales and use tax within a county , municipality, or special183 district shall not affect the authority of a qualified consolidated government to impose the184 tax authorized by this part and the imposition of the tax autho rized by this part shall not185 H. B. 1214 - 8 - 26 LC 59 0298 affect the imposition of any otherwise authorized local sales and use tax within a county,186 municipality, or special district.187 48-8-183.188 (a) The proceeds received from the tax authorized by this part shall be used by a:189 (1) Municipality exclusively for healthcare enhancement purpos es within the190 municipality; or191 (2) County exclusively for healthcare enhancement purposes within the county special192 district.193 (b) All proceeds of the tax authorized by this part shall be kept in a separate account from194 other funds of the municipality or county and shall not in any manner be commingled with195 other funds of the municipality or county prior to expenditure. No amount of such funds196 shall be used in any way to supplant or reduce other funding in place for healthcare197 enhancement purposes as of the fiscal year of the municipality or county immediately prior198 to the adoption of the resolution calling for the tax.199 (c) The governing authority of each municipality and county levying the tax shall maintain200 a record of every expenditure for which the proceeds of the tax have been used. Each201 municipality or county that levies the tax authorized by this p art shall include a202 summarized accounting of all expenditures of such proceeds over the prior fiscal year in203 such municipality's or county's regular annual audit otherwise required by law. The auditor204 shall verify and test expenditures sufficient to provide assurances that the schedule is fairly205 presented in relation to the financial statements. The auditor 's report on the financial206 statements shall include an opinion, or disclaimer of opinion, as to whether the accounting207 is presented fairly in all material respects in relation to the financial statements taken as a208 whole.209 H. B. 1214 - 9 - 26 LC 59 0298 48-8-184.210 If at any point it is determined by the commissioner or the state auditor that the proceeds211 of the tax authorized by this part are not being used by a muni cipality or county for212 healthcare enhancement purposes in accordance with this part, t he commissioner shall213 withhold the proceeds of the tax from the municipality or county until a plan is devised by214 the municipality or county and approved by the commissioner as rectifying the failure to215 comply with this part. If no such plan is devised and approved within 180 days, the tax216 shall cease to be collected and such funds shall be held in tru st by the state to use for217 healthcare enhancement purposes to benefit the municipality or county special district."218 SECTION 3.219 This Act shall become effective upon its approval by the Governor or upon its becoming law220 without such approval.221 SECTION 4.222 All laws and parts of laws in conflict with this Act are repealed.223 H. B. 1214 - 10 -