06 LC 18
5160S/AP
House
Bill 1030 (AS PASSED HOUSE AND SENATE)
By:
Representative Smith of the
129th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
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 provisions
regarding the levy and collection of such tax; to provide authorization with
certain conditions for certain counties and municipalities to levy such tax; to
change certain provisions authorizing certain counties and municipalities to
levy such tax under certain conditions; to provide for requirements and
limitations with respect thereto; to provide for related matters; to provide an
effective date; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
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, is amended by striking paragraphs (1) and (2) of
subsection (a) of Code Section 48-13-51, relating to the levy and collection of
certain excise taxes, and inserting in their place new paragraphs (1) and (2) to
read as follows:
"(a)(1)(A)
The governing authority of each municipality in this state may levy and collect
an excise tax upon the furnishing for value to the public of any room or rooms,
lodgings, or accommodations furnished by any person or legal entity licensed by,
or required to pay business or occupation taxes to, the municipality for
operating a hotel, motel, inn, lodge, tourist camp, tourist cabin, campground,
or any other place in which rooms, lodgings, or accommodations are regularly
furnished for value. Within the territorial limits of the special district
located within the county, each county in this state may levy and collect an
excise tax upon the furnishing for value to the public of any room or rooms,
lodgings, or accommodations furnished by any person or legal entity licensed by,
or required to pay business or occupation taxes to, the county for operating
within the special district a hotel, motel, inn, lodge, tourist camp, tourist
cabin, campground, or any other place in which rooms, lodgings, or
accommodations are regularly furnished for value. The provisions of this Code
section shall control over the provisions of any local ordinance or resolution
to the contrary enacted pursuant to Code Section 48-13-53 and in effect prior to
July 1, 1998. Any such ordinance shall not be deemed repealed by this Code
section but shall be administered in conformity with this Code
section.
(B)(i)
The excise tax shall be imposed on any person or legal entity licensed by or
required to pay a business or occupation tax to the governing authority imposing
the tax for operating a hotel, motel, inn, lodge, tourist camp, tourist cabin,
campground, or any other place in which rooms, lodgings, or accommodations are
regularly furnished for value and shall apply to the furnishing for value of any
room, lodging, or accommodation. Every person or entity subject to a tax levied
as provided in this Code section shall, except as provided in this Code section,
be liable for the tax at the applicable rate on the lodging charges actually
collected or, if the amount of taxes collected from the hotel or motel guest is
in excess of the total amount that should have been collected, the total amount
actually collected must be remitted.
(ii)
Any tax levied as provided in this Code section is also imposed upon every
person or entity who is a hotel or motel guest and who receives a room, lodging,
or accommodation that is subject to the tax levied under this Code section.
Every such guest subject to the tax levied under this Code section shall pay the
tax to the person or entity providing the room, lodging, or accommodation. The
tax shall be a debt of the person obtaining the room, lodging, or accommodation
to the person or entity providing such room, lodging, or accommodation until it
is paid and shall be recoverable at law by the person or entity providing such
room, lodging, or accommodation in the same manner as authorized for the
recovery of other debts. The person or entity collecting the tax from the hotel
or motel guest shall remit the tax to the governing authority imposing the tax,
and the tax remitted shall be a credit against the tax imposed by division (i)
of this subparagraph on the person or entity providing the room, lodging, or
accommodation.
(C)(i)
The tax authorized by this Code section shall not apply to charges made for any
rooms, lodgings, or accommodations provided to any persons who certify that they
are staying in such room, lodging, or accommodation as a result of the
destruction of their home or residence by fire or other casualty. The tax
authorized by this Code section shall apply to the fees or charges for any
rooms, lodgings, or accommodations during the first ten days of continuous
occupancy and shall not apply to charges imposed for any continuous occupancy
thereafter. The tax authorized by this Code section shall not apply to charges
made for the use of meeting rooms and other such facilities or to any rooms,
lodgings, or accommodations provided without charge.
(ii)
The tax authorized by this Code section shall not apply to the charges for any
rooms, lodgings, or accommodations furnished for a period of one or more days
for use by Georgia state or local governmental officials or employees when
traveling on official business. Notwithstanding the availability of any other
means of identifying the person as a state or local government official or
employee, whenever a person pays for any rooms, lodgings, or accommodations with
a state or local government credit or debit card, such rooms, lodgings, or
accommodations shall be deemed to have been furnished for use by a Georgia state
or local government official or employee traveling on official business for
purposes of the exemption provided by this division.
(D)
Except as provided in paragraphs (2.1),
(2.2),
(3), (3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4), (4.1), (4.2), (4.3), (4.4),
(4.5), (4.6), (4.7), (5), (5.1), (5.2), and (5.3) of this subsection, no tax
levied pursuant to this Code section shall be levied or collected at a rate
exceeding 3 percent of the charge to the public for the
furnishings.
(2)
A county or municipality levying a tax as provided in paragraph (1) of this
subsection shall in each fiscal year beginning on or after July 1, 1987, expend
for the purpose of promoting tourism, conventions, and trade shows a percentage
of the total taxes collected under this Code section which is not less than the
percentage of such tax collections expended for such purposes during the
immediately preceding fiscal year. In addition, if during such immediately
preceding fiscal year any portion of such tax receipts was expended for such
purposes through a grant to or a contract or contracts with the state, a
department of state government, a state authority, or a private sector nonprofit
organization, then in each fiscal year beginning on or after July 1, 1987, at
least the same percentage shall be expended through a contract or contracts with
one or more such entities for the purpose of promoting tourism, conventions, and
trade shows. The expenditure requirements of this paragraph shall cease to
apply to a county or municipality which levies a tax at a rate in excess of 3
percent, as authorized under paragraphs (2.1), (3),
(2.2),
(3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4), (4.1), (4.2), (4.3), (4.4),
(4.5), (4.6), (4.7), (5), (5.1), (5.2), and (5.3) of this subsection; and in
such case the expenditure requirements of such paragraph of this subsection
pursuant to which such tax is levied shall apply
instead."
SECTION
2.
Said
article is further amended in subsection (a) of Code Section 48-13-51, relating
to the levy and collection of certain excise taxes, by adding a new paragraph
immediately following paragraph (2.1), to be designated paragraph (2.2), to read
as follows:
"(2.2)(A)
Notwithstanding any other provision of this Code section to the contrary, as
used in this paragraph, the term:
(i)
'Charitable trust' shall have the meaning given such term in subsection (d) of
Code Section 48-13-55.
(ii)
' Development authority' shall mean a development authority created pursuant to
Chapter 62 of Title 36, the 'Development Authorities Law.'
(iii)
'Facility' or 'facilities' shall mean any of the buildings, structures, and
facilities described in division (ii) of subparagraph (D) of this
paragraph.
(iv)
'Functionally related business' shall have the meaning given such term in
subsection (d) of Code Section 48-13-55.
(v)
'Fund' or 'funding' shall include the cost and expense of all things necessary
for the construction and operation of a facility or facilities, including, but
not limited to, the study, operation, marketing, acquisition, construction,
financing (including the payment of principal of and interest on any obligation
of a development authority to finance such facility or facilities or refund any
obligation of a development authority previously issued to finance such facility
or facilities), development, extension, enlargement, or improvement of land,
waters, property, streets, highways, buildings, structures, equipment, or
facilities and the repayment of any obligation incurred in connection
therewith.
(vi)
'Obligation' shall mean bonds, notes, or any instrument creating an obligation
to pay or reserve moneys, having an initial term of not more than 35
years.
(vii)
'Related entity' shall mean, with respect to a charitable trust, a functionally
related business of such charitable trust, or any for profit or not for profit
entity owned by or under common ownership with such charitable trust or owned by
or under common ownership with a functionally related business of such
charitable trust or otherwise affiliated with such charitable trust in a manner
approved by the development authority.
(B)
Notwithstanding the provisions of paragraph (1) of this subsection, a county
(within the territorial limits of the special district located within the
county) or any municipality within such county in which is located, in either
case, a convention and conference center which is at least 50,000 square feet in
size and is owned in fee simple by a development authority and leased by such
development authority to a charitable trust or a related entity thereof, and in
which county or municipality there exists a private sector nonprofit
organization which, on or before December 31, 2005, entered into a contract or a
memorandum of understanding with the county or municipality and the
aforementioned charitable trust pursuant to Code Section 48-13-55 relating to
the expenditure of the proceeds of the tax collected under this Code section,
may levy a tax under this Code section at a rate of 5 percent.
(C)
The proceeds of the taxes collected under this paragraph shall be expended
pursuant to a contract or a memorandum of understanding between the county or
municipality, the private sector nonprofit organization, and the charitable
trust, and such proceeds may be expended by or for the benefit of the county or
municipality, the private sector nonprofit organization, or the charitable trust
and related entities thereof for the purposes described in subparagraph (D) of
this paragraph, provided that the expenditure of the proceeds of the tax levied
on a charitable trust or a functionally related business thereof shall meet the
requirements of Code Section 48-13-55.
(D)
The proceeds of the taxes collected under this paragraph may be expended for any
or all of the following purposes:
(i)
Promoting tourism, conventions, and trade shows;
(ii)
Promoting, attracting, stimulating, and developing conventions and tourism
pursuant to Code Section 48-13-55; or
(iii)
Funding, supporting, acquiring, constructing, renovating, improving, and
equipping buildings, structures, infrastructure, and facilities which have the
effect of promoting, attracting, stimulating, and developing conventions and
tourism, including, but not limited to, a hotel facility and infrastructure and
utility projects, provided that during any period during which there remains
outstanding any obligation issued to fund a facility as contemplated by this
paragraph, secured in whole or in part by a pledge of a tax authorized under
this Code section, the powers of the county or municipality to impose and
distribute the tax imposed by this paragraph shall not be diminished or impaired
by the state and no county or municipality levying the tax imposed by this
paragraph shall cease to levy the tax in any manner that will impair the
interest and rights of the holder of any such obligation. This proviso shall be
for the benefit of the holder of any such obligation and, upon the issuance of
any such obligation by a development authority, shall constitute a contract with
the holder of such
obligation."
SECTION
3.
Said
article is further amended by striking paragraph (6) of subsection (a) of Code
Section 48-13-51, relating to the levy and collection of certain excise taxes,
and inserting in its place a new paragraph (6) to read as follows:
"(6)
At no time shall a county or municipality levy a tax under more than one
paragraph of this subsection. Following the termination of a tax under
paragraph (2.1),
(2.2),
(3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4.1), (4.2), (4.3), (4.4), (4.5),
(4.6), (4.7), (5), (5.1), (5.2), or (5.3) of this subsection, any county or
municipality which has levied a tax pursuant to paragraph (2.1),
(2.2),
(3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4.1), (4.2), (4.3), (4.4), (4.5),
(4.6), (4.7), (5), (5.1), (5.2), or (5.3) of this subsection shall be authorized
to levy a tax in the manner and at the rate authorized by either paragraph (1),
paragraph (3), or paragraph (4) of this subsection but shall not thereafter be
authorized to again levy a tax under paragraph (2.1),
(2.2),
(3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4.1), (4.2), (4.3), (4.4), (4.5),
(4.6), (4.7), (5), (5.1), (5.2), or (5.3) of this
subsection."
SECTION
4.
Said
article is further amended by striking paragraphs (9) and (10) of subsection (a)
of Code Section 48-13-51, relating to the levy and collection of certain excise
taxes, and inserting in their places new paragraphs (9) and (10) to read as
follows:
"(9)(A)
A county or municipality imposing a tax under paragraph (1), (2), (2.1),
(2.2),
(3), (3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4), (4.1), (4.2), (4.3), (4.4),
(4.5), (4.6), (4.7), (5), (5.1), (5.2), or (5.3) of this subsection shall prior
to the imposition of the tax (if the tax is imposed on or after July 1, 1990)
and prior to each fiscal year thereafter in which the tax is imposed adopt a
budget plan specifying how the expenditure requirements of this Code section
will be met. Prior to the adoption of such budget plan, the county or
municipality shall obtain from the authorized entity with which it proposes to
contract to meet the expenditure requirements of this Code section a budget for
expenditures to be made by such organization; and such budget shall be made a
part of the county or municipal budget plan.
(B)(i)
The determination as to whether a county or municipality has complied with the
expenditure requirements of paragraph (2), (2.1),
(2.2),
(3), (3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4), (4.1), (4.2), (4.3), (4.4),
(4.5), (4.6), (4.7), (5), (5.1), (5.2), or (5.3) of this subsection shall be
made for each fiscal year beginning on or after July 1, 1987, as of the end of
each fiscal year, shall be prominently reflected in the audit required under
Code Section 36-81-7, and shall disclose:
(I)
The amount of funds expended or contractually committed for expenditure as
provided in paragraph (2), (2.1),
(2.2),
(3), (3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4), (4.1), (4.2), (4.3), (4.4),
(4.5), (4.6), (4.7), (5), (5.1), (5.2), or (5.3) of this subsection, whichever
is applicable, during the fiscal year;
(II)
The amount of tax receipts under this Code section during such fiscal year;
and
(III)
Expenditures as a percentage of tax receipts.
(ii)
A county or municipality contractually expending funds to meet the expenditure
requirements of paragraph (2), (2.1),
(2.2),
(3), (3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4), (4.1), (4.2), (4.3), (4.4),
(4.5), (4.6), (4.7), (5), (5.1), (5.2), or (5.3) of this subsection shall
require the contracting party to provide audit verification that the contracting
party makes use of such funds in conformity with the requirements of this
subsection. If the audit required by Code Section 36-81-7 identifies
noncompliance with the applicable expenditure requirements of this Code section,
such noncompliance shall be reported in accordance with paragraph (2) of
subsection (c) of Code Section 36-81-7. The state auditor shall report all
instances of noncompliance with this subparagraph noted in the audit report to
the Department of Community Affairs upon completion of the report review
required by paragraph (2) of subsection (d) of Code Section 36-81-7. The state
auditor shall furnish a copy of all documents submitted by the local government
or the local
government́s
auditor pertaining to noncompliance with this subparagraph to the Department of
Revenue. The Department of Community Affairs shall submit a copy of such
documents to the performance review board.
(10)
Nothing in this article shall be construed to limit the power of a county or
municipality to expend more than the required amounts, or all, of the total
taxes collected under this Code section for the purposes described in paragraph
(2), (2.1),
(2.2),
(3), (3.1), (3.2), (3.3), (3.4), (3.5), (3.7), (4), (4.1), (4.2), (4.3), (4.4),
(4.5), (4.6), (4.7), (5), (5.1), (5.2), or (5.3) of this
subsection."
SECTION
5.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
6.
All
laws and parts of laws in conflict with this Act are repealed.