06 LC 18
5464
House
Bill 1590
By:
Representatives Jennings of the
82nd,
Chambers of the
81st,
and Royal of the
171st
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-8-104 of the Official Code of Georgia Annotated, relating
to administration and disbursement of proceeds of the homestead option sales and
use tax, so as to change certain provisions regarding the distribution and
expenditure of such proceeds; to provide for applicability; to provide an
effective date; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-8-104 of the Official Code of Georgia Annotated, relating to
administration and disbursement of proceeds of the homestead option sales and
use tax, is amended by striking paragraph (2) of subsection (c) and inserting in
its place a new paragraph (2) to read as follows:
"(2)
Except for the percentage provided in paragraph (1) of this subsection, the
remaining proceeds of the sales and use tax shall be distributed to the
governing authority of the county whose geographical boundary is conterminous
with that of the special district. As a condition precedent for the authority
to levy the sales and use tax or to collect any proceeds from the tax authorized
by this article for the year following the first complete calendar year in which
it is levied and for all subsequent years except the year following the year in
which the sales and use tax is terminated under Code Section 48-8-106, the
county whose geographical boundary is conterminous with that of the special
district shall, except as otherwise provided in subsection (c) of Code Section
48-8-102, expend such proceeds as follows:
(A)
A portion of such proceeds shall be expended for the purpose of funding capital
outlay projects as follows:
(i)
The governing authority of the county whose geographical boundary is
conterminous with that of the special district shall establish the capital
factor which shall not exceed .200; and
(ii)
Capital outlay projects shall be funded in an amount equal to the product of the
capital factor multiplied by the net amount of the sales and use tax proceeds
collected under this article during the previous calendar year;
(B)(A)
A portion of such proceeds shall be expended for the purpose of funding services
within the special district equal to the revenue lost to the homestead exemption
as provided in
Code
Section 48-8-104
this Code
section as follows:
(i)
The homestead factor shall be calculated by
multiplying
the quantity 1.000 minus the capital factor times an amount equal to the net
amount of sales and use tax collected in the special district pursuant to this
article for the previous calendar year, and
then dividing
the net amount
of sales and use tax collected in the special district pursuant to this article
for the previous calendar year by the
taxes levied for county purposes on only that portion of the county tax digest
that represents net assessments on qualified homestead property after all other
homestead exemptions
and ad valorem
property tax credits have been applied,
rounding the result to three decimal places;
(ii)
If the homestead factor is less than or equal to 1.000, the amount of homestead
exemption created under this article on qualified homestead property shall be
equal to the product of the homestead factor multiplied times the net assessment
of each qualified homestead remaining after all other homestead exemptions
and ad valorem
property tax credits have been applied;
and
(iii)
If the homestead factor is greater than 1.000, the homestead exemption created
by this article on qualified homestead property shall be equal to the net
assessment of each homestead remaining after all other homestead exemptions
and ad valorem
property tax credits have been applied;
and
(B)
If any proceeds remain following the distribution provided for in subparagraph
(A) of this paragraph, a portion of such proceeds shall be expended for the
purpose of funding capital outlay projects as follows:
(i)
The governing authority of the county whose geographical boundary is
conterminous with that of the special district shall establish the capital
factor which shall not exceed .200; and
(ii)
Capital outlay projects shall be funded in an amount which shall not exceed the
product of the capital factor multiplied by the net amount of the sales and use
tax proceeds collected under this article during the previous calendar
year;
(C)
If any of such proceeds remain following the distribution provided for in
subparagraphs (A) and (B) of this paragraph:
(i) The
millage rate levied for county purposes shall be rolled back in an amount equal
to such excess divided by the net taxable digest for county purposes after
deducting all homestead exemptions including the exemption under this article;
and
(ii)
In the event the rollback created by division (i) of this subparagraph exceeds
the millage rate for county purposes, the governing authority of the county
whose boundary is conterminous with the special district shall be authorized to
expend the surplus funds for funding all or any portion of those services which
are to be provided by such governing authorities pursuant to and in accordance
with Article IX, Section II, Paragraph III of the Constitution of this
state;
and
(D)
The manner of distribution and expenditure of proceeds specified under this
paragraph shall apply with respect to taxes imposed or to be imposed under any
resolution or ordinance adopted by a county governing authority on or after July
1, 2006. With respect to taxes imposed or to be imposed under resolutions or
ordinances adopted prior to July 1, 2006, this paragraph shall not apply until
the expiration of any or all contractual obligations which have been entered
into by such county governing authority with respect to such proceeds and such
distribution and expenditure shall continue to be governed by the provisions of
this paragraph as they existed prior to July 1,
2006."
SECTION
2.
This
Act shall become effective on July 1, 2006.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.