06 LC
33 1567S
Senator
Heath of the 31st offered the following substitute to HR 773:
MOOT
A
RESOLUTION
Proposing
an amendment to the Constitution of Georgia so as to change the existing
provisions regarding the sales tax for education; to allow for a county school
district in which one or more independent school districts are located to impose
that tax jointly with the independent school districts which opt to participate
or by itself if all independent school districts decline to participate,
conditioned upon approval in a referendum; to provide for a method of
distribution for taxes simultaneously collected by a county school district and
an independent school district within the county; to provide for the submission
of this amendment for ratification or rejection; and for other
purposes.
BE
IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
VIII, Section VI of the Constitution is amended by striking Paragraph IV in its
entirety and inserting in lieu thereof a new Paragraph IV to read as
follows:
"Paragraph
IV.
Sales
tax for educational purposes.
(a)(1)
The board of education of each school district in a county in which no
independent school district is located may by resolution
and the
board of education of each county school district and the board of education of
each independent school district located within such county may by concurrent
resolutions impose, levy, and collect
within such
school district a sales and use tax for
educational purposes of such school
districts
district
conditioned upon approval by a majority of the qualified voters residing within
the limits of the local taxing jurisdiction voting in a referendum
thereon.
(2)
In any county in which one or more independent school districts are wholly or
partially located, the board of education of the county school district and the
board of education of any one or more independent school districts located
within such county opting to participate, may by resolution impose, levy, and
collect a sales and use tax for educational purposes of such participating
school districts conditioned upon approval by a majority of the qualified voters
residing within the limits of the local taxing jurisdictions voting in a
referendum thereon.
(3)
In the event that all independent school districts wholly or partially located
within the county decline to participate, the board of education of the county
school district may by resolution impose, levy, and collect a sales and use tax
for educational purposes of such school district conditioned upon approval by a
majority of the qualified voters residing within the limits of the local taxing
jurisdiction voting in a referendum thereon.
(4)
This tax shall be at the rate of 1 percent and shall be imposed for a period of
time not to exceed five years, but in all other respects, except as otherwise
provided in this Paragraph, shall correspond to and be levied in the same manner
as the tax provided for by Article 3 of Chapter 8 of Title 48 of the Official
Code of Georgia Annotated, relating to the special county 1 percent sales and
use tax, as now or hereafter amended. Proceedings for the reimposition of such
tax shall be in the same manner as proceedings for the initial imposition of the
tax, but the newly authorized tax shall not be imposed until the expiration of
the tax then in effect.
(b)
The purpose or purposes for which the proceeds of the tax are to be used and may
be expended include:
(1)
Capital outlay projects for educational purposes;
(2)
The retirement of previously incurred general obligation debt with respect only
to capital outlay projects of the school system; provided, however, that the tax
authorized under this Paragraph shall only be expended for the purpose
authorized under this subparagraph (b)(2) if all ad valorem property taxes
levied or scheduled to be levied prior to the maturity of any such then
outstanding general obligation debt to be retired by the proceeds of the tax
imposed under this Paragraph shall be reduced by a total amount equal to the
total amount of proceeds of the tax imposed under this Paragraph to be applied
to retire such bonded indebtedness. In the event of failure to comply with the
requirements of this subparagraph (b)(2), as certified by the Department of
Revenue, no further funds shall be expended under this subparagraph (b)(2) by
such county or independent board of education and all such funds shall be
maintained in a separate, restricted account and held solely for the expenditure
for future capital outlay projects for educational purposes; or
(3)
A combination of the foregoing.
(c)
The resolution calling for the imposition of the tax and the ballot question
shall each describe:
(1)
The specific capital outlay projects to be funded, or the specific debt to be
retired, or both, if applicable;
(2)
The maximum cost of such project or projects and, if applicable, the maximum
amount of debt to be retired, which cost and amount of debt shall also be the
maximum amount of net proceeds to be raised by the tax; and
(3)
The maximum period of time, to be stated in calendar years or calendar quarters
and not to exceed five years.
(d)
Nothing in this Paragraph shall prohibit a county and those municipalities
located in such county from imposing as additional taxes local sales and use
taxes authorized by general law.
(e)
The tax imposed pursuant to this Paragraph shall not be subject to and shall not
count with respect to any general law limitation regarding the maximum amount of
local sales and use taxes which may be levied in any jurisdiction in this state.
(f)
The tax imposed pursuant to this Paragraph shall not be subject to any sales and
use tax exemption with respect to the sale or use of food and beverages which is
imposed by law.
(g)(1)
The net proceeds of the tax shall be distributed
to the county
school district in which the tax is collected if no independent school district
is located therein.
(2)(A)
If such a tax is simultaneously collected by a county school district and one or
more participating independent school districts within such county, then the net
proceeds of the tax shall be distributed
between the county school district and the
participating
independent school
district
or districts, or portion thereof, located
in such county according to
the ratio
the student enrollment in each school district, or portion thereof, bears to the
total student enrollment of all school districts in the county or upon such
other formula for distribution as may be authorized by local
law
the
calculation provided for in this
subparagraph. For purposes of this
subparagraph, student enrollment shall be based on the latest
full-time
equivalency
(FTE)
count as
conducted twice annually as provided by general
law
prior to
the referendum on imposing the tax.
(B)
With respect to each participating independent school district, the total
distribution of proceeds of the tax to that district shall be calculated as
follows:
(i)
The number of FTE students residing in and attending the independent school
district shall be added to the number of FTE students residing in the county
school district and attending in the independent school district;
(ii)
The number of FTE students residing in the independent school district and
attending in the county school district shall be subtracted from the figure
derived under subparagraph (2)(B)(i);
(iii)
The figure derived under subparagraph (2)(B)(ii) shall be divided by the sum of
the number of FTE students residing in the county school district and the number
of FTE students residing in the independent school district; and
(iv)
The figure derived under subparagraph (2)(B)(iii) shall be multiplied by the
total amount of annual tax proceeds collected pursuant to this paragraph in the
county, which shall be the total distribution of proceeds to the independent
school district.
(C)
With respect to the county school district, the total distribution of proceeds
of the tax to that district shall be calculated as follows:
(i)
The number of FTE students residing in and attending in the county school
district shall be added to the number of FTE students residing in the
independent school district and attending in the county school
district;
(ii)
The number of FTE students residing in the county school district and attending
in the independent school district shall be subtracted from the figure derived
under subparagraph (2)(C)(i);
(iii)
The figure derived under subparagraph (2)(C)(ii) shall be divided by the sum of
the number of FTE students residing in the county school district and the number
of FTE students residing in the independent school district; and
(iv)
The figure derived under subparagraph (2)(C)(iii) shall be multiplied by the
total amount of annual tax proceeds collected pursuant to this paragraph in the
county, which shall be the total distribution of proceeds to the county school
district.
(D)
Notwithstanding subparagraphs (2)(B) and (2)(C), the county school district and
each participating independent school district shall send an amount equivalent
to one FTE student for each student residing in such county school district or
participating independent school district but attending a school in a district
other than the county school district or participating independent school
district.
(h)
Excess proceeds of the tax which remain following expenditure of proceeds for
authorized projects or purposes for education shall be used solely for the
purpose of reducing any indebtedness of the school system. In the event there
is no indebtedness, such excess proceeds shall be used by such school system for
the purpose of reducing its millage rate in an amount equivalent to the amount
of such excess proceeds.
(i)
The tax authorized by this Paragraph may be imposed, levied, and collected as
provided in this Paragraph without further action by the General Assembly, but
the General Assembly shall be authorized by general law to further define and
implement its provisions including, but not limited to, the authority to specify
the percentage of net proceeds to be allocated among the projects and purposes
for which the tax was levied.
(j)(1)
Notwithstanding any provision of any constitutional amendment continued in force
and effect pursuant to Article XI, Section I, Paragraph IV(a) and except as
otherwise provided in subparagraph (j)(2) of this Paragraph, any political
subdivision whose ad valorem taxing powers are restricted pursuant to such a
constitutional amendment may receive the proceeds of the tax authorized under
this Paragraph or of any local sales and use tax authorized by general law, or
any combination of such taxes, without any corresponding limitation of its ad
valorem taxing powers which would otherwise be required under such
constitutional amendment.
(2)
The restriction on and limitation of ad valorem taxing powers described in
subparagraph (j)(1) of this Paragraph shall remain applicable with respect to
proceeds received from the levy of a local sales and use tax specifically
authorized by a constitutional amendment in force and effect pursuant to Article
XI, Section I, Paragraph IV(a), as opposed to a local sales and use tax
authorized by this Paragraph or by general
law."
SECTION
2.
The
above proposed amendment to the Constitution shall be published and submitted as
provided in Article X, Section I, Paragraph II of the Constitution. The ballot
submitting the above proposed amendment shall have written or printed thereon
the following:
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"( ) YES
( ) NO
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Shall
the Constitution of Georgia be amended to provide that county school systems may
continue to authorize and collect the one-cent sales tax for public school
capital projects, even when a city school system located within a county chooses
not to participate; and to provide for voter referendum approval and collection
and distribution of taxes only in participating school system
jurisdictions?"
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All
persons desiring to vote in favor of ratifying the proposed amendment shall vote
"Yes." All persons desiring to vote against ratifying the proposed amendment
shall vote "No." If such amendment shall be ratified as provided in said
Paragraph of the Constitution, it shall become a part of the Constitution of
this state.