HB1216: HB1216 Revenue and taxation; require that any excise tax on rooms, lodgings, and accommodations be remitted to the Department of Revenue for disbursement

26 LC 59 0277 House Bill 1216 By: Representatives Stephens of the 164th, Greene of the 154th, Carpenter of the 4th, Dempsey of the 13th, Jones of the 143rd, and others A BILL TO BE ENTITLED AN ACT To amend Article 3 of Chapter 13 of Title 48 of the Official Co de of Georgia Annotated,1 relating to excise tax on rooms, lodgings, and accommodations, so as to require that any2 excise tax on rooms, lodgings, and accommodations be remitted t o the Department of3 Revenue for disbursement; to provide for the submission of cont racts and memoranda of4 understanding to facilitate such disbursement; to provide for a n itemized list of approved5 expenditures accompanying each disbursement; to provide for rules, regulations, and forms;6 to provide for conforming changes; to provide for an effective date and applicability; to7 provide for related matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Article 3 of Chapter 13 of Title 48 of the Official Code of Geo rgia Annotated, relating to11 excise tax on rooms, lodgings, and accommodations, is amended b y adding a new Code12 section to read as follows:13 "48-13-50.5.14 (a) Notwithstanding any other provision of this article, any t ax levied and collected15 pursuant to this article shall be remitted to the department instead of the applicable county16 H. B. 1216 - 1 - 26 LC 59 0277 or municipality. Each tax return remitting taxes collected under this article shall separately17 identify the location of each establishment at which any of the taxes remitted were18 collected and shall specify the amount of taxes collected at ea ch establishment for the19 period covered by the return in order to facilitate the determination by the commissioner20 that all taxes imposed by this article are properly collected and disbursed.21 (b) Any county or municipality levying a tax authorized under this article shall furnish to22 the department all contracts and memoranda of understanding governing the expenditure23 of proceeds from such tax.24 (c) The proceeds of any tax remitted to the department under this article shall be disbursed25 as soon as practicable under the terms set forth in contracts a nd memoranda of26 understanding submitted to the department, as required under subsection (b) of this Code27 section. The department shall make such disbursements directly to the applicable county28 or municipality, applicable destination marketing organization, and any other legal entity29 designated as a recipient of the proceeds of such tax in the ap plicable contract or30 memorandum of understanding. The department shall include with each disbursement to31 a county or municipality a line item identifying the proceeds o f the tax that must be32 allocated for tourism product development.33 (d)(1) The commissioner shall have the power and authority to promulgate such rules34 and regulations as shall be necessary for the effective and eff icient administration and35 enforcement of the remittance and disbursement of the tax authorized to be imposed by36 this article.37 (2) The commissioner shall be authorized to promulgate any rules and forms relative to38 the provisions of this article."39 H. B. 1216 - 2 - 26 LC 59 0277 SECTION 2.40 Said article is further amended by revising division (a)(1)(B)(ii) of Code Section 48-13-51,41 relating to county and municipal levies on public accommodation charges for promotion of42 tourism, conventions, and trade shows, as follows:43 "(ii) Any tax levied as provided in this Code section is also i mposed upon every44 person or entity who is a guest and who receives a room, lodging, or accommodation45 that is subject to the tax levied under this Code section. Every such guest subject to46 the tax levied under this Code section shall pay the tax to the innkeeper providing or47 facilitating the room, lodging, or accommodation. The tax shal l be a debt of the48 person obtaining the room, lodging, or accommodation to the innkeeper providing or49 facilitating such room, lodging, or accommodation until it is p aid and shall be50 recoverable at law by the innkeeper providing or facilitating such room, lodging, or51 accommodation in the same manner as authorized for the recovery of other debts. 52 The innkeeper collecting the tax from the guest shall remit the tax to the governing53 authority imposing the tax department, and the tax remitted shall be a credit against54 the tax imposed by division (i) of this subparagraph on the inn keeper providing or55 facilitating the room, lodging, or accommodation."56 SECTION 3.57 Said article is further amended by revising Code Section 48-13- 53, relating to procedures58 relative to excise tax on rooms, lodgings, and accommodations, as follows:59 "48-13-53.60 Except as otherwise specifically provided in this article, the rate of taxation, the manner of61 imposition, payment, and collection of the tax, and all other procedures related to the tax62 shall be as provided by each county and municipality electing t o exercise the powers63 conferred by this article."64 H. B. 1216 - 3 - 26 LC 59 0277 SECTION 4.65 Said article is further amended by revising Code Section 48-13-53.2, relating to tax returns66 and remittances, as follows:67 "48-13-53.2.68 (a) Each innkeeper, on or before the twentieth day of each mon th, shall transmit returns69 and remit taxes due to any applicable governing authority imposing a tax under this article70 to the department showing the gross charges taxable under this article during the preceding71 calendar month. The governing authority imposing the tax may pr ovide by resolution or72 ordinance for quarterly or annual returns. The returns required by this subsection shall be73 made upon forms prescribed, prepared, and furnished by the governing authority imposing74 the tax department.75 (b) As used in this subsection, the term 'estimated tax liability' means an innkeeper's tax76 liability under this article, adjusted to account for any subsequent change in the rate of tax77 imposed under this article or any substantial change in circumstances due to damage to the78 premises, based on his or her average monthly payments for the last fiscal year. If the79 estimated tax liability of an innkeeper for any taxable period exceeds $2,500.00, the80 innkeeper shall file a return and remit to the governing author ity imposing the tax81 department not less than 50 percent of the estimated tax liability for the taxable period on82 or before the twentieth day of the period. The amount of the payment of the estimated tax83 liability shall be credited agains t the amount to be due on the return required under84 subsection (a) of this Code section. This subsection shall not apply to any innkeeper unless85 during the previous fiscal year the innkeeper's monthly payments exceeded $2,500.00 per86 month for three consecutive months or more."87 H. B. 1216 - 4 - 26 LC 59 0277 SECTION 5.88 Said article is further amended by revising Code Section 48-13- 53.3, relating to taxes,89 extensions and returns, and failure of innkeeper to make return and pay required tax, as90 follows:91 "48-13-53.3.92 (a)(1) The governing authority imposing a tax under this artic le department may, for93 good cause, extend the time for making any returns required und er this article for not94 more than 30 days.95 (2) No extension granted pursuant to paragraph (1) of this sub section shall be valid96 unless granted in writing upon written application, and then the extension shall only be97 valid for a period, as appropriate, of not more than 12 consecu tive months or four98 consecutive calendar quarters.99 (3) Upon the grant of any extension authorized by this subsect ion, the innkeeper shall100 remit to the governing authority imposing a tax under this article department on or before101 the date the tax would otherwise become due without the grant o f the extension an102 amount which equals not less than 100 percent of the innkeeper' s payment for the103 corresponding period of the preceding tax year.104 (4) No interest or penalty shall be charged by reason of the g ranting of an extension105 pursuant to this subsection during the first ten days of each extension period. Thereafter,106 interest shall be collected upon the unpaid balance of the innkeeper's liability at the rate107 specified in Code Section 48-2-40.108 (b) In the event any innkeeper fails to make a return and pay the tax as provided by this109 article or makes a grossly incorrect return or a return that is false or fraudulent, the110 governing authority imposing a tax under this article shall make an estimate for the taxable111 period of taxable charges of the innkeeper. Based upon its estimate, the governing authority112 shall assess and collect the taxes, interest, and penalties, as accrued, on the basis of the113 assessments."114 H. B. 1216 - 5 - 26 LC 59 0277 SECTION 6.115 Said article is further amended by revising Code Section 48-13- 54, relating to taxes,116 extensions and returns, and failure of innkeeper to make return and pay required tax, as117 follows: 118 "48-13-54.119 Any state park operated under the jurisdiction of the Department of Natural Resources, or120 a state authority that is administratively attached to the Department of Natural Resources,121 which state park or authority regularly furnishes for value lodge rooms as well as meals and122 conference or meeting facilities or has a minimum of 20 cabins and which rooms, facilities,123 or cabins located in a county or municipality levying a tax und er this article shall, as124 provided in this Code section, agree to collect and remit to th e county or municipality125 within whose taxing jurisdiction the facility is located department amounts which are equal126 to, or partially equal to, the amounts which would be collected and remitted to the county127 or municipality department under the tax levied by the county or municipality under Code128 Section 48-13-51 if such rooms, facilities, or cabins were privately operated. The sums so129 collected and remitted shall only be expended for development, promotion, and advertising130 of such rooms, facilities, or cabins from which the money was collected and remitted or for131 similar purposes of promoting, advertising, stimulating, and developing conventions and132 tourism in the county or municipality in which such rooms, facilities, or cabins of the state133 park or state authority are located so long as said promotion o r advertising prominently134 features the state park or state authority rooms, facilities, or cabins."135 SECTION 7.136 Said article is further amended by revising Code Section 48-13-56, relating to annual report137 to department of community affairs, as follows:138 H. B. 1216 - 6 - 26 LC 59 0277 "48-13-56.139 Each county or municipality imposing a tax as authorized by thi s article shall, as a140 condition of continuing authorization to impose the tax, annually file with the department141 and the Department of Community Affairs a report specifying the ra te of taxation and142 amounts collected and expended pursuant to this article. Such r eport shall include the143 schedules specified under subparagraph (b)(1)(B) of Code Sectio n 36-81-8 and shall be144 filed in such form and at such times as may be specified by rul e of the Department of145 Community Affairs."146 SECTION 8.147 Said article is further amended by revising subsection (a) of C ode Section 48-13-58.1,148 relating to criminal penalties for failure to make return or pay taxes, as follows:149 "(a) It shall be unlawful for any innkeeper to fail to make a return and pay the taxes due150 under this article to any applicable governing authority imposing a tax under this article."151 SECTION 9.152 Said article is further amended by revising subsection (a) of Code Section 48-13-61, relating153 to failure to furnish return and punishment, as follows:154 "(a) It shall be unlawful for any innkeeper subject to this article to fail or refuse to furnish155 any return required to be made by this article or to fail or refuse to furnish a supplemental156 return or other data required by the department or the governing authority imposing a tax157 under this article."158 SECTION 10.159 This Act shall become effective upon its approval by the Governor or upon its becoming law160 without such approval and shall be applicable to all taxable ye ars beginning on or after161 January 1, 2027.162 H. B. 1216 - 7 - 26 LC 59 0277 SECTION 11.163 All laws and parts of laws in conflict with this Act are repealed.164 H. B. 1216 - 8 -