HB 679 - Hotels and motels; excise and sales taxes; aggregate amount

First Reader Summary

A BILL to amend Article 3 of Chapter 13 of Title 48 of the Official Code of Georgia Annotated, relating to the excise tax on the furnishing for value to the public of any rooms, lodgings, or accommodations, so as to change certain provision regarding the levy and collection of such tax; to provide an overall restriction applicable to the aggregate amount of excise taxes and sales and use taxes which may be imposed by a county or municipality; and for other purposes.

Polak, Michael C (67th) Royal, A. Richard (164th) Sherrill, Tom (62nd)
Channell, R. M. (Mickey) (111th) Jamieson, Mary Jeanette (22nd)
Status Summary HC: W&M SC: LA: 02/21/97 H - Read 2nd Time
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8
House Action Senate
2/20/97 Read 1st Time
2/21/97 Read 2nd Time

HB 679                                           LC 18 8169ER 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 3 of Chapter 13 of Title 48 of the Official 
  1- 2  Code of Georgia Annotated, relating to the excise tax on the 
  1- 3  furnishing for value to the public of any rooms, lodgings, 
  1- 4  or accommodations, so as to change certain provisions 
  1- 5  regarding the levy and collection of such tax; to provide an 
  1- 6  overall restriction applicable to the aggregate amount of 
  1- 7  excise taxes and sales and use taxes which may be imposed by 
  1- 8  a county or municipality; to provide for conditions and 
  1- 9  procedures; to provide an effective date; to repeal 
  1-10  conflicting laws; and for other purposes. 
 
  1-11       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-12                           SECTION 1. 
 
  1-13  Article 3 of Chapter 13 of Title 48 of the Official Code of 
  1-14  Georgia Annotated, relating to the excise tax on the 
  1-15  furnishing for value to the public of any rooms, lodgings, 
  1-16  or accommodations, is amended by striking paragraphs (3.1), 
  1-17  (4.1), and (5.1) of subsection (a) of Code Section 48-13-51, 
  1-18  relating to the levy and collection of certain excise taxes, 
  1-19  and inserting in their places new paragraphs (3.1), (4.1), 
  1-20  and (5.1) to read as follows: 
 
  1-21      "(3.1) Notwithstanding any other provision of this 
  1-22      subsection, a county (within the territorial limits of 
  1-23      the special district located within the county) and the 
  1-24      municipalities within a county in which a trade and 
  1-25      convention center authority has been created by 
  1-26      intergovernmental contract between a county and one or 
  1-27      more municipalities located therein, and which trade and 
  1-28      convention center authority is in existence on or before 
  1-29      March 21, 1988, and which trade and convention center 
  1-30      authority has not constructed or operated any facility 
  1-31      before March 21, 1988, may levy a tax under this Code 
  1-32      section at a rate of 6 percent.  A county or 
  1-33      municipality levying a tax pursuant to this paragraph 
  1-34      shall expend (in each fiscal year during which the tax 
  1-35      is collected under this paragraph (3.1)) an amount equal 
 
 
                                 -1- 
 
 
 
  2- 1      to at least 62 1/2 percent of the total taxes collected 
  2- 2      at the rate of 6 percent for the purpose of:  (A) 
  2- 3      promoting tourism, conventions, and trade shows; (B) 
  2- 4      funding, supporting, acquiring, constructing, 
  2- 5      renovating, improving, and equipping buildings, 
  2- 6      structures, and facilities, including, but not limited 
  2- 7      to, a trade and convention center, exhibit hall, 
  2- 8      conference center, performing arts center, 
  2- 9      accommodations facilities including food service, or any 
  2-10      combination thereof, for convention, trade show, 
  2-11      athletic, musical, theatrical, cultural, civic, and 
  2-12      performing arts purposes and other events and activities 
  2-13      for similar and related purposes, acquiring the 
  2-14      necessary property therefor, both real and personal, and 
  2-15      funding all expenses incident thereto, and supporting, 
  2-16      maintaining, and promoting such facilities owned, 
  2-17      operated, or leased by or to the local trade and 
  2-18      convention center authority; or (C) for some combination 
  2-19      of such purposes; provided, however, that at least 50 
  2-20      percent of the total taxes collected at the rate of 6 
  2-21      percent shall be expended for the purposes specified in 
  2-22      subparagraph (B) of this paragraph (3.1).  Amounts so 
  2-23      expended shall be expended only through a contract or 
  2-24      contracts with the state, a department of state 
  2-25      government, a state authority, a convention and visitors 
  2-26      bureau authority created by local Act of the General 
  2-27      Assembly for a municipality, a local building authority 
  2-28      created by local constitutional amendment, and a trade 
  2-29      and convention center authority created by 
  2-30      intergovernmental contract between a county and one or 
  2-31      more municipalities located therein, or a private sector 
  2-32      nonprofit organization or through a contract or 
  2-33      contracts with some combination of such entities.  The 
  2-34      aggregate amount of all excise taxes imposed under this 
  2-35      paragraph (3.1) and all sales and use taxes, and other 
  2-36      taxes imposed by a county or municipality, or both, 
  2-37      shall not exceed 13 percent.  Any tax levied pursuant to 
  2-38      this paragraph (3.1) shall terminate not later than 
  2-39      December 31, 2029, provided that during any period 
  2-40      during which there remains outstanding any obligation 
  2-41      issued to fund a facility as contemplated by this 
  2-42      paragraph (3.1), secured in whole or in part by a pledge 
  2-43      of a tax authorized under this Code section, the powers 
  2-44      of the counties and municipalities to impose and 
  2-45      distribute the tax imposed by this paragraph (3.1) shall 
  2-46      not be diminished or impaired by the state and no county 
 
 
                                 -2- 
 
 
 
  3- 1      or municipality levying the tax imposed by this 
  3- 2      paragraph (3.1) shall cease to levy the tax in any 
  3- 3      manner that will impair the interests and rights of the 
  3- 4      holder of any such obligation. This proviso shall be for 
  3- 5      the benefit of the holder of any such obligation and, 
  3- 6      upon the issuance of any such obligation by a building 
  3- 7      authority created by local constitutional amendment, 
  3- 8      shall constitute a contract with the holder of such 
  3- 9      obligation.  Notwithstanding any other provision of this 
  3-10      Code section to the contrary, as used in this paragraph 
  3-11      (3.1), the term: 'fund' or 'funding' shall include the 
  3-12      cost and expense of all things deemed necessary by a 
  3-13      building authority created by local constitutional 
  3-14      amendment for the construction and operation of a 
  3-15      facility or facilities including but not limited to the 
  3-16      study, operation, marketing, acquisition, construction, 
  3-17      financing, including the payment of principal and 
  3-18      interest on any obligation of the building authority 
  3-19      created by local constitutional amendment and any 
  3-20      obligation of the building authority created by local 
  3-21      constitutional amendment to refund any prior obligation 
  3-22      of the building authority created by local 
  3-23      constitutional amendment, development, extension, 
  3-24      enlargement, or improvement of land, waters, property, 
  3-25      streets, highways, buildings, structures, equipment, or 
  3-26      facilities and the repayment of any obligation incurred 
  3-27      by an authority in connection therewith; 'obligation' 
  3-28      shall include bonds, notes, or any instrument creating 
  3-29      an obligation to pay or reserve moneys and having an 
  3-30      initial term of not more than 37 years; and 'facility' 
  3-31      or 'facilities' shall mean any of the buildings, 
  3-32      structures, and facilities described in subparagraph (B) 
  3-33      of this paragraph (3.1) and any associated parking areas 
  3-34      or improvements originally owned or operated incident to 
  3-35      the ownership or operation of such facility used for any 
  3-36      purpose or purposes specified in subparagraph (B) of 
  3-37      this paragraph (3.1) by a building authority created by 
  3-38      local constitutional amendment." 
 
  3-39      "(4.1) Notwithstanding any other provision of this 
  3-40      subsection, a county (within the territorial limits of 
  3-41      the special district located within the county) or 
  3-42      municipality within a county in which a coliseum 
  3-43      authority has been created by local Act of the General 
  3-44      Assembly and which authority is in existence on or 
  3-45      before July 1, 1963, for the purpose of owning or 
 
 
 
                                 -3- 
 
 
 
  4- 1      operating a facility, may levy a tax under this Code 
  4- 2      section at a rate of 7 percent.  A county or 
  4- 3      municipality levying a tax pursuant to this paragraph 
  4- 4      shall expend (in each fiscal year during which the tax 
  4- 5      is collected under this paragraph (4.1)) an amount equal 
  4- 6      to at least 62 1/2 percent of the total taxes collected 
  4- 7      at the rate of 7 percent for the purpose of: (A) 
  4- 8      promoting tourism, conventions, and trade shows; (B) 
  4- 9      funding and supporting a facility owned or operated by 
  4-10      such coliseum authority; or (C) for some combination of 
  4-11      such purposes.  Amounts so expended shall be expended 
  4-12      only through a contract or contracts with the state, a 
  4-13      department of state government, a state authority, a 
  4-14      convention and visitors bureau authority created by 
  4-15      local Act of the General Assembly for a municipality, a 
  4-16      local coliseum authority, or a private sector nonprofit 
  4-17      organization, or through a contract or contracts with 
  4-18      some combination of such entities, except that amounts 
  4-19      expended for purpose (B) may be so expended in any 
  4-20      otherwise lawful manner without the necessity of a 
  4-21      contract.  The aggregate amount of all excise taxes 
  4-22      imposed under this paragraph (4.1) and all sales and use 
  4-23      taxes, and other taxes imposed by a county or 
  4-24      municipality, or both, shall not exceed 12 percent.  Any 
  4-25      tax levied pursuant to this paragraph (4.1) shall 
  4-26      terminate not later than December 31, 2028, provided 
  4-27      that during any period during which there remains 
  4-28      outstanding any obligation which is incurred prior to 
  4-29      January 1, 1995, issued to fund a facility as 
  4-30      contemplated by this paragraph (4.1), and secured in 
  4-31      whole or in part by a pledge of a tax authorized under 
  4-32      this Code section, the powers of the counties and 
  4-33      municipalities to impose and distribute the tax imposed 
  4-34      by this paragraph (4.1) shall not be diminished or 
  4-35      impaired by the state and no county or municipality 
  4-36      levying the tax imposed by this paragraph (4.1) shall 
  4-37      cease to levy the tax in any manner that will impair the 
  4-38      interest and rights of the holders of any such 
  4-39      obligation.  This proviso shall be for the benefit of 
  4-40      the holder of any such obligation and, upon the issuance 
  4-41      of any such obligation by a coliseum and exhibit hall 
  4-42      authority, shall constitute a contract with the holder 
  4-43      of such obligations.  Notwithstanding any other 
  4-44      provision of this Code section to the contrary, as used 
  4-45      in this paragraph (4.1), the term:  'fund' and 'funding' 
  4-46      shall include the cost and expense of all things deemed 
 
 
                                 -4- 
 
 
 
  5- 1      necessary by a local coliseum authority for the 
  5- 2      construction, renovation, and operation of a facility 
  5- 3      including but not limited to the study, operation, 
  5- 4      marketing, acquisition, construction, finance, 
  5- 5      development, extension, enlargement, or improvement of 
  5- 6      land, waters, property, streets, highways, buildings, 
  5- 7      structures, equipment, or facilities, and the repayment 
  5- 8      of any obligation incurred by a local coliseum authority 
  5- 9      in connection therewith; 'obligation' shall include 
  5-10      bonds, notes, or any instrument creating an obligation 
  5-11      to pay or reserve moneys incurred prior to January 1, 
  5-12      1995, and having an initial term of not more than 30 
  5-13      years; and 'facility' shall mean a coliseum or other 
  5-14      facility and any associated parking areas or 
  5-15      improvements originally owned or operated incident to 
  5-16      the ownership or operation of a facility used for 
  5-17      convention and trade show purposes or amusement 
  5-18      purposes, educational purposes, or a combination thereof 
  5-19      and for fairs, expositions, or exhibitions in connection 
  5-20      therewith by a local coliseum authority." 
 
  5-21      "(5.1) Notwithstanding any other provision of this 
  5-22      subsection, a county (within the territorial limits of 
  5-23      the special district located within the county) and the 
  5-24      municipalities within a county in which a coliseum and 
  5-25      exhibit hall authority has been created by local Act of 
  5-26      the General Assembly for a county and one or more 
  5-27      municipalities therein, and which local coliseum and 
  5-28      exhibit hall authority is in existence on or before 
  5-29      January 1, 1991, and which local coliseum and exhibit 
  5-30      hall authority has not constructed or operated any 
  5-31      facility before January 1, 1991, may levy a tax under 
  5-32      this Code section at a rate of 8 percent.  A county or 
  5-33      municipality levying a tax pursuant to this paragraph 
  5-34      shall expend (in each fiscal year during which the tax 
  5-35      is collected under this paragraph (5.1)) an amount equal 
  5-36      to at least 62 1/2 percent of the total taxes collected 
  5-37      at the rate of 8 percent for the purpose of: (A) 
  5-38      promoting tourism, conventions, and trade shows; (B) 
  5-39      funding, supporting, acquiring, constructing, 
  5-40      renovating, improving, and equipping buildings, 
  5-41      structures, and facilities, including, but not limited 
  5-42      to, a coliseum, exhibit hall, conference center, 
  5-43      performing arts center, or any combination thereof, for 
  5-44      convention, trade show, athletic, musical, theatrical, 
  5-45      cultural, civic, and performing arts purposes and other 
 
 
 
                                 -5- 
 
 
 
  6- 1      events and activities for similar and related purposes, 
  6- 2      acquiring the necessary property therefor, both real and 
  6- 3      personal, and funding all expenses incident thereto, and 
  6- 4      supporting, maintaining, and promoting such facilities 
  6- 5      owned, operated, or leased by or to the local coliseum 
  6- 6      and exhibit hall authority or a downtown development 
  6- 7      authority; or (C) for some combination of such purposes; 
  6- 8      provided, however, that at least 50 percent of the total 
  6- 9      taxes collected at the rate of 8 percent shall be 
  6-10      expended for the purposes specified in subparagraph (B) 
  6-11      of this paragraph (5.1).  Amounts so expended shall be 
  6-12      expended only through a contract or contracts with the 
  6-13      state, a department of state government, a state 
  6-14      authority, a convention and visitors bureau authority 
  6-15      created by local Act of the General Assembly for a 
  6-16      municipality, a local coliseum and exhibit hall 
  6-17      authority, a downtown development authority, or a 
  6-18      private sector nonprofit organization or through a 
  6-19      contract or contracts with some combination of such 
  6-20      entities, notwithstanding any provision of paragraph (8) 
  6-21      of this subsection to the contrary.  The aggregate 
  6-22      amount of all excise taxes imposed under this paragraph 
  6-23      (5.1) and all sales and use taxes, and other taxes 
  6-24      imposed by a county or municipality, or both, shall not 
  6-25      exceed 13 percent; provided, however, that any sales tax 
  6-26      for educational purposes which is imposed pursuant to 
  6-27      Article VIII, Section VI, Paragraph IV of the 
  6-28      Constitution shall not be included in calculating such 
  6-29      limitation.  Any tax levied pursuant to this paragraph 
  6-30      (5.1) shall terminate not later than December 31, 2028, 
  6-31      provided that during any period during which there 
  6-32      remains outstanding any obligation issued to fund a 
  6-33      facility as contemplated by this paragraph (5.1), 
  6-34      secured in whole or in part by a pledge of a tax 
  6-35      authorized under this Code section, the powers of the 
  6-36      counties and municipalities to impose and distribute the 
  6-37      tax imposed by this paragraph (5.1) shall not be 
  6-38      diminished or impaired by the state and no county or 
  6-39      municipality levying the tax imposed by this paragraph 
  6-40      (5.1) shall cease to levy the tax in any manner that 
  6-41      will impair the interests and rights of the holder of 
  6-42      any such obligation.  This proviso shall be for the 
  6-43      benefit of the holder of any such obligation and, upon 
  6-44      the issuance of any such obligation by a local coliseum 
  6-45      and exhibit hall authority or a downtown development 
  6-46      authority, shall constitute a contract with the holder 
 
 
                                 -6- 
 
 
 
  7- 1      of such obligation. Notwithstanding any other provision 
  7- 2      of this Code section to the contrary, as used in this 
  7- 3      paragraph (5.1), the term: 'fund' or 'funding' shall 
  7- 4      include the cost and expense of all things deemed 
  7- 5      necessary by a local coliseum and exhibit hall authority 
  7- 6      or a downtown development authority for the construction 
  7- 7      and operation of a facility or facilities including but 
  7- 8      not limited to the study, operation, marketing, 
  7- 9      acquisition, construction, financing, including the 
  7-10      payment of principal and interest on any obligation of 
  7-11      the local coliseum and exhibit hall authority or the 
  7-12      downtown development authority and any obligation of the 
  7-13      local coliseum and exhibit hall authority or the 
  7-14      downtown development authority to refund any prior 
  7-15      obligation of the local coliseum and exhibit hall 
  7-16      authority or the downtown development authority, 
  7-17      development, extension, enlargement, or improvement of 
  7-18      land, waters, property, streets, highways, buildings, 
  7-19      structures, equipment, or facilities and the repayment 
  7-20      of any obligation incurred by an authority in connection 
  7-21      therewith; 'obligation' shall include bonds, notes, or 
  7-22      any instrument creating an obligation to pay or reserve 
  7-23      moneys and having an initial term of not more than 37 
  7-24      years; 'facility' or 'facilities' shall mean any of the 
  7-25      buildings, structures, and facilities described in 
  7-26      subparagraph (B) of this paragraph (5.1) and any 
  7-27      associated parking areas or improvements originally 
  7-28      owned or operated incident to the ownership or operation 
  7-29      of such facility used for any purpose or purposes 
  7-30      specified in subparagraph (B) of this paragraph (5.1) by 
  7-31      a local coliseum and exhibit hall authority or a 
  7-32      downtown development authority; and 'downtown 
  7-33      development authority' shall mean a downtown development 
  7-34      authority created by local Act of the General Assembly 
  7-35      for a municipality pursuant to a local constitutional 
  7-36      amendment." 
 
  7-37                           SECTION 2. 
 
  7-38  Said article is further amended by adding a new subsection 
  7-39  immediately following subsection (b) of Code Section 
  7-40  48-13-51, relating to the levy and collection of certain 
  7-41  excise taxes, to be designated subsection (c), to read as 
  7-42  follows: 
 
  7-43    "(c) The aggregate amount of all excise taxes imposed 
  7-44    under subsection (a) of this Code section, all local sales 
 
 
 
                                 -7- 
 
 
 
  8- 1    taxes, use taxes, or sales and use taxes, and all state 
  8- 2    sales and use taxes imposed on the furnishing for value to 
  8- 3    the public of any room or rooms, lodgings, or 
  8- 4    accommodations shall not exceed 13 percent in the 
  8- 5    aggregate.  In the event that the aggregate amount of such 
  8- 6    taxes on the furnishing for value to the public of any 
  8- 7    room or rooms, lodgings, or accommodations exceeds 13 
  8- 8    percent, then the imposition of the local sales and use 
  8- 9    tax levied and imposed under Article 3 of Chapter 7 of 
  8-10    this title on or after July 1, 1997, shall not apply to 
  8-11    the furnishing for value to the public of any room or 
  8-12    rooms, lodgings, or accommodations, and such local sales 
  8-13    and use tax may not be levied or collected on the 
  8-14    furnishing for value to the public of any room or rooms, 
  8-15    lodgings, or accommodations to the extent it causes such 
  8-16    aggregate tax rate to exceed 13 percent." 
 
  8-17                           SECTION 3. 
 
  8-18  This Act shall become effective on July 1, 1997. 
 
  8-19                           SECTION 4. 
 
  8-20  All laws and parts of laws in conflict with this Act are 
  8-21  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -8- 

Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98