HR1418: HR1418 State-wide sales and use tax; property tax relief in counties or consolidated governments; provide - CA

26 LC 28 0746 House Resolution 1418 By: Representatives Washburn of the 144th, Dickey of the 134th, Carpenter of the 4th, Corbett of the 174th, Williams of the 148th, and others A RESOLUTION Proposing an amendment to the Constitution so as to impose a 1 percent, state-wide sales and1 use tax for which the proceeds shall be distributed to the governing authorities of the counties2 and consolidated governments of this state on a population basis for the purpose of providing3 property tax relief in such counties or consolidated governments; to provide for conditions4 and limitations; to provide for legislative findings, determina tions, and declarations; to5 provide for related matters; to provide for the submission of this amendment for ratification6 or rejection; and for other purposes.7 BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 (a) The General Assembly finds and determines that it is appro priate and advisable to10 provide for a state-wide sales and use tax for counties and consolidated governments to be11 able to offset ad valorem taxes on real property in such counti es or consolidated12 governments.13 (b) The General Assembly further finds and declares that allowing for such sales and use tax14 would:15 (1) Spread the tax burden for the funding of counties and consolidated governments over16 a larger number of persons, thereby reducing the burden on property owners; and17 H. R. 1418 - 1 - 26 LC 28 0746 (2) Help address the property tax burden which may, in some ci rcumstances, force18 people from their homes.19 SECTION 2.20 The Constitution of the State of Georgia is amended in Article IX by adding a new section21 to read as follows:22 "SECTION VIII.23 STATE-WIDE SALES AND USE TAX FOR REAL PROPERTY TAX RELIEF24 Paragraph I. State-wide sales and use tax for real property tax relief purposes. (a) The25 state shall impose, levy, and collect a sales and use tax for p roperty tax relief. This tax26 shall be at the rate of 1 percent and shall correspond to and be levied in the same manner27 as the tax provided for by Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia28 Annotated, relating to state sales and use taxes, as now or hereafter amended.29 (b) The proceeds of the tax shall be used and expended to provide for a dollar-for-dollar30 decrease in the amount of ad valorem tax imposed on real proper ty in such county or31 consolidated government and only as provided in this section. The proceeds of the tax32 shall be collected by the state and shall be paid on an annual basis to the governing33 authority of each county and consolidated government on the bas is of population as34 established by the most recent United States decennial census.35 (c) The proceeds of the sales and use tax shall be used:36 (1) First, to reduce ad valorem taxes on residential homestead real property in the37 county or consolidated government;38 (2) Second, if the sales taxes revenues distributed to a count y or consolidated39 government are in excess of the funds necessary to fully offset and reduce residential40 H. R. 1418 - 2 - 26 LC 28 0746 homestead ad valorem taxes for such county or consolidated government, to reduce ad41 valorem taxes on all other real property in such county or consolidated government; and42 (3) Third, if sales tax revenues remain after fully reducing a nd offsetting all real43 property ad valorem taxes for such county or consolidated gover nment, for such other44 purposes as the governing authority of the county or consolidat ed government deems45 appropriate.46 (d) Nothing in this section shall prohibit the state or a county or consolidated government47 from imposing additional local sales and use taxes authorized by general law.48 (e) The tax imposed pursuant to this section shall not be subject to and shall not count49 with respect to any general law limitation regarding the maximu m amount of local sales50 and use taxes which may be levied in any jurisdiction in this state.51 (f) The tax imposed pursuant to this section shall not be subject to any sales and use tax52 exemption with respect to the sale or use of food and beverages which is imposed by law.53 (g) The tax authorized by this section may be imposed, levied, and collected as provided54 in this section without further action by the General Assembly, but the General Assembly55 shall be authorized by general law to further define and implement its provisions."56 SECTION 3.57 The above proposed amendment to the Constitution shall be publi shed and submitted as58 provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the59 above proposed amendment shall have written or printed thereon the following:60 "( ) YES61 ( ) NO62 63 64 Shall the Constitution of Georgia be amended so as to impose a 1 percent state-wide sales and use tax for the purpose of reducing ad valorem taxes on real property in counties or consolidated governments based upo n population?" All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes." 65 All persons desiring to vote against ratifying the proposed amendment shall vote "No." If66 H. R. 1418 - 3 - 26 LC 28 0746 such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall67 become a part of the Constitution of this state.68 H. R. 1418 - 4 -