hb979.html

08 LC 18 7201S

The House Committee on Ways and Means offers the following substitute to HB 979:

A BILL TO BE ENTITLED
AN ACT

To amend Titles 48 and 36 of the Official Code of Georgia Annotated, relating, respectively, to revenue and taxation and local government, so as to provide for implementation of The Property Tax Reform Amendment; to provide for the comprehensive revision of provisions regarding revenue and taxation; to change certain provisions regarding the manner and time of making the state ad valorem levy; to provide for the imposition and collection of fees on certain motor vehicles; to provide for powers, duties, and authority of county tax commissioners and the state revenue commissioner regarding such fees; to change certain provisions regarding income credit for food and necessities and provide for an income tax credit for low-income families on qualified food expenses; to provide for conditions and limitations; to provide for powers, duties, and authority of the state revenue commissioner with respect to the foregoing; to change certain provisions regarding the tax on the retail purchase, retail sale, rental, storage, use, or consumption of certain tangible property and on services; to change certain provisions regarding definitions; to provide for the state sales and use taxation of certain services; to change certain provisions regarding exemptions; to provide for conforming changes with respect to certain imposition of taxes, collection from dealers, disposition of certain excess taxes, compensation of dealers for reporting and paying taxes, and payment of taxes by certain contractors; to provide for a sales tax credit with respect to certain multichannel video programming; to provide for the comprehensive revision of provisions regarding homeowner tax relief grants; to provide for additional tax relief grants for certain motor vehicles; to provide for limits on valuation increases of residential real property and nonresidential real property; to provide for related matters; to provide for contingent effective dates and applicability; to provide for automatic repeal under certain circumstances; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I
SECTION 1-1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended by revising Code Section 48-5-8, relating to the manner and time of making the state ad valorem levy, as follows:

"48-5-8.

In each year in which a The levy for state taxation is necessary for defending the state in an emergency such taxation shall be made by the Governor with the assistance of the commissioner. Each In each such year, as soon as the value of the taxable property is substantially known by the commissioner, the commissioner shall assist the Governor in making the state levy. Immediately after the Governor has made the state levy, the commissioner shall send to each tax collector and tax commissioner written or printed notices of the Governor´s order."

SECTION 1-2.

Said title is further amended by adding a new chapter to read as follows:

"CHAPTER 6A

48-6A-1.

There is imposed an annual motor vehicle fee at the rate of $20.00 on each motor vehicle registered in this state. The tax commissioner of the county shall collect such fee at the same time that tag fees are collected and shall provide for collection procedures. The fee shall be collected from the owner of the motor vehicle. The tax commissioner shall remit the proceeds of such fees to the commissioner in the same manner as other fees pursuant to Code Section 40-2-34 and the commissioner shall deposit such proceeds in the general fund of the state treasury in the same manner as required for other fees under subsection (f) of Code Section 40-2-34. Subject to the general appropriations process, it is the intent of the General Assembly that an amount equal to one-half of the total amount of fees collected under this Code section shall be utilized to provide funding to the Georgia Trauma Trust Fund under Code Section 31-11-103."

SECTION 1-3.

Said title is further amended by revising Chapter 7A, relating to income tax credits for food and necessities, to read as follows:

"CHAPTER 7A

48-7A-1.

The General Assembly finds and determines that all residents of this state make contributions to the general fund of this state through their payment of the several state taxes, including, but not limited to, taxes on food and other items of necessity. The General Assembly further finds and declares that, because of the overall tax burden and particularly the tax burden on food and other items of necessity, it is both appropriate and advisable to afford tax relief to the low-income residents and the working poor. It is not practical, however, to provide tax relief targeted to these groups through the implementation of a specific measure of relief addressed to each of the several state taxes, and therefore it is necessary and proper to utilize the income tax procedures of this state as the mechanism for providing tax relief to low-income residents and the working poor with respect to their overall tax burden and particularly the burden of taxation on food and other items of necessity Reserved.

48-7A-2.

As used in this chapter, the term:

(1) 'Dependent' 'dependent' means:

(1) (A) The taxpayer;

(2) (B) The spouse of the taxpayer; and

(3) (C) A natural or legally adopted child of the taxpayer.

(2) 'Federal poverty level' income amounts shall be determined by the United States Department of Health and Human Services Poverty Guidelines for the applicable year and applicable family size.

(3) 'Qualified food expense' shall be the dollar amounts of food expense, multiplied by 12 to obtain the annual expense, as is found on the most recent Internal Revenue Service National Standards chart for the applicable family size for the current year.

48-7A-3.

(a) Except as otherwise provided in subsection (e) of this Code section, each resident taxpayer who files an individual income tax return for a taxable year and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Georgia individual income tax purposes may claim a tax credit against the resident taxpayer´s individual income tax liability for the taxable year for which the individual income tax return is being filed; provided that:

(1) A husband and wife filing a joint return shall each be deemed a dependent for purposes of such joint return;

(2) A husband and wife filing separate returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed; and

(3) A resident individual who has no income or no income taxable under this chapter Chapter 7 of this title and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for federal or Georgia individual income tax purposes may also claim a tax credit as set forth in this Code section.

(b) Each taxpayer may claim a tax credit in the amount indicated for each adjusted gross income bracket as shown in the schedule below multiplied by the number of dependents which the taxpayer is entitled to claim. Each taxpayer 65 years of age or over may claim double the tax credit.

TAX CREDIT SCHEDULE
Adjusted Gross Income Tax Credit
Under $6,000.00	$ 26.00
6,000.00 but not more than 7,999.00	20.00
8,000.00 but not more than 9,999.00	14.00
10,000.00 but not more than 14,999.00	8.00
15,000.00 but not more than 19,999.00	5.00

(b) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-20 for qualified food expenses as follows:

Gross household income for federal

income tax purposes as percentage

of federal poverty level Amount of income tax credit

0 percent - 50 percent . . . . . . . . . .4 percent multiplied by 50 percent of food expense

51 percent - 100 percent . . . . . . . .4 percent multiplied by 100 percent of food expense

101 percent - 110 percent . . . . . . .4 percent multiplied by 90 percent of food expense

111 percent - 120 percent . . . . . . .4 percent multiplied by 80 percent of food expense

121 percent - 130 percent . . . . . . .4 percent multiplied by 70 percent of food expense

131 percent - 140 percent . . . . . . .4 percent multiplied by 60 percent of food expense

141 percent - 150 percent . . . . . . .4 percent multiplied by 50 percent of food expense

151 percent - 160 percent . . . . . . .4 percent multiplied by 40 percent of food expense

161 percent - 170 percent . . . . . . . .4 percent multiplied by 30 percent of food expense

171 percent - 180 percent . . . . . . . .4 percent multiplied by 20 percent of food expense

181 percent - 199 percent . . . . . . . .4 percent multiplied by 10 percent of food expense

200 percent and above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

(c) The tax credit claimed by a resident taxpayer pursuant to this Code section shall be deductible from the resident taxpayer´s individual income tax liability, if any, for the tax year in which it is properly claimed. In the event the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of the credit over payments due shall be refunded to the resident taxpayer, provided that a tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; provided, further, that no refunds or payment on account of the tax credit allowed by this Code section shall be made for amounts less than $1.00.

(d) All claims for a tax credit under this Code section, including any amended claims, must be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with this subsection shall constitute a waiver of the right to claim the credit.

(e) Any individual who receives a food stamp allotment for all or any part of a taxable year shall not be entitled to claim a credit under this Code section for that taxable year.

(e.1) (e) Any individual incarcerated or confined in any city, county, municipal, state, or federal penal or correctional institution for all or any part of a taxable year shall not be entitled to claim a credit under this Code section for that taxable year."

(f) The commissioner shall be authorized by rule and regulation to provide for the proper administration of this Code section."

SECTION 1-4.

Said title is further amended in Code Section 48-8-3, relating to exemptions from sales and use tax, by revising paragraphs (55) and (57) as follows:

"(55)(A) The sale of lottery tickets authorized by Chapter 27 of Title 50 but only to the extent provided for in subparagraph (B) of this paragraph.

(B)(i) For the purposes of this paragraph, the term 'local sales and use tax' shall mean any sales tax, use tax, or local sales and use tax which is levied and imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the 'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; or by or pursuant to Article 2, Article 2A, Part 1 of Article 3, Part 2 of Article 3, or Article 4 of this chapter.

(ii) The exemption provided for in subparagraph (A) of this paragraph shall not apply to state sales and use tax but shall only apply to any local sales and use tax levied or imposed at any time;"

"(57)(A) The sale for off-premises human consumption or use of eligible foods and beverages, to the extent provided in subparagraph (B) (C) of this paragraph.

(B) A transaction described in subparagraph (A) of this paragraph shall be exempt from sales and use tax only if occurring on or after October 1, 1996, and only to the extent set forth in divisions (i) through (iii) of this subparagraph as follows:

(i) For a transaction occurring during the period from October 1, 1996, through September 30, 1997, to the extent of 50 percent of that amount on which, but for this paragraph, sales and use tax would be levied or imposed;

(ii) For a transaction occurring during the period from October 1, 1997, through September 30, 1998, to the extent of 75 percent of that amount on which, but for this paragraph, sales and use tax would be levied or imposed; and

(iii) For a transaction occurring on or after October 1, 1998, to the extent of 100 percent of that amount on which, but for this paragraph, sales and use tax would be levied or imposed.

(C)(B) For the purposes of this paragraph, 'eligible food and beverages' means any food as defined in Section 3 of the federal Food Stamp Act of 1977 (P.L. 95-113), as amended, 7 U.S.C.A. 2012(g), as such Act existed on January 1, 1996, except that eligible food and beverages shall not include seeds or plants to grow food and shall not include food or drink dispensed by or through vending machines or related operations.

(C)(i) The exemption provided for in this paragraph shall not apply to any local sales and use tax levied or imposed at any time by or pursuant to Article 3 of this chapter.

(ii) Except as otherwise provided in division (i) of this subparagraph, the exemption provided for in this paragraph shall not apply to any local sales and use tax which is effective before October 1, 1996, notwithstanding any provisions to the contrary in the law authorizing or imposing such tax.

(iii) Except as otherwise provided in divisions (i) and (iv) of this subparagraph, the exemption provided for in this paragraph shall apply with respect to any local sales and use tax which becomes effective on or after October 1, 1996, but such exemption shall apply only as to transactions occurring on or after October 1, 1998, notwithstanding any provision to the contrary in the law authorizing or imposing such tax.

(iv) The exemption provided for in this paragraph shall apply to any local sales and use tax levied or imposed at any time by or pursuant to Article 2A of this chapter.

(v) For the purposes of this subparagraph, the term 'local sales and use tax' shall mean any sales tax, use tax, or local sales and use tax which is levied and imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the 'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; by or pursuant to Article 2, of this chapter; by or pursuant to Article 2A, of this chapter; or by or pursuant to Part 1 of Article 3, Part 2 of Article 3, or Article 4 of this chapter.

(D) The exemption provided for in subparagraph (A) of this paragraph shall not apply to state sales and use tax.

(E) The commissioner shall adopt rules and regulations to carry out the provisions of this paragraph;"

SECTION 1-5.

Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended by adding a new chapter to read as follows:

"CHAPTER 89A

36-89A-1.

As used in this chapter, the term:

(1) 'County millage rate' means the net ad valorem tax millage rate levied by a county for county purposes and applying to qualified motor vehicles in the county, including any millage levied for those special districts reported on the 2004 ad valorem tax digest certified to and received by the state revenue commissioner on or before December 31, 2004, but not including any millage levied for purposes of bonded indebtedness and not including any millage levied on behalf of a county school district for educational purposes.

(2) 'Eligible assessed value' means a certain stated amount of the assessed value of each qualified motor vehicle in this state to which the tax relief grant under this chapter shall be applicable. The assessed value of qualified motor vehicles shall be determined pursuant to the uniform evaluation of motor vehicles prepared pursuant to Code Section 48-5-442.

(3) 'Fiscal authority' means the individual authorized to collect ad valorem taxes for a county or municipality which levies ad valorem taxes.

(4) 'Municipal millage rate' means the net ad valorem tax millage rate levied by a municipality for municipal purposes and applying to qualified motor vehicles in the municipality, including any millage levied for those special tax districts reported on the 2004 City and Independent School Millage Rate Certification certified to and received by the state revenue commissioner on or before December 31, 2004, but not including any millage levied for purposes of bonded indebtedness and not including any millage levied on behalf of an independent school district for educational purposes.

(5) 'Qualified motor vehicle' means a motor vehicle as defined under paragraph (33) of Code Section 40-1-1 which is titled in the name of an individual natural person but shall not include any all-terrain vehicles, authorized emergency vehicles, buses, commercial motor vehicles, house trailers, low-speed vehicles, motor homes, motorized carts, school buses, semi-trailers, special mobile equipment vehicles, tractors, trailers, or truck tractors as those terms are defined in Code Section 40-1-1.

(6) 'School millage rate' means the net ad valorem tax millage rate levied on behalf of a county or independent school district for educational purposes and applying to qualified motor vehicles in the county or independent school district, not including any millage levied for purposes of bonded indebtedness and not including any millage levied for county or municipal purposes.

36-89A-2.

Each year, the General Assembly shall appropriate funds for motor vehicle tax relief grants to counties, municipalities, and county or independent school districts pursuant to and in furtherance of the provisions of Article VII, Section IIB, Paragraph I of the Constitution.

36-89A-3.

(a) Each year, the General Assembly shall appropriate to the Department of Revenue funds to provide motor vehicle tax relief grants to counties, municipalities, and county or independent school districts. The General Appropriations Act shall specify the amount appropriated which shall be sufficient for each 12 month period so that each taxpayer receives a credit equal to the eligible assessed value times the millage rate of each qualified motor vehicle so that the taxpayer is exempt from ad valorem taxes on such motor vehicle subject to the limitations of subsection (b) of this Code section.

(b) Any benefit determination under subsection (a) this Code section shall be determined according to a base millage rate. This base millage rate shall be the millage rate for the county, municipality, county school district, or independent school district which provides the amount of property tax revenue collected for such county, municipality, county school district, or independent school district during a tax year, not attributable to new construction, which does not exceed the amount collected in the 2008 tax year plus the cap rate including any accrued cap rates. The term 'cap rate' means the percentage change in the price index for gross output of state and local government from the prior year to the current year as defined by the National Income and Product Accounts and determined by the United States Bureau of Economic Analysis and indicated by the Price Index for Government Consumption Expenditures and General Government Gross Output (Table 3.10.4).

36-89A-4.

(a)(1) Pursuant to the appropriation of funds as provided in Code Section 36-89A-3, such grants shall each month be allotted to each county, municipality, and county or independent school district in this state as follows:

(A) Immediately following the actual preparation of ad valorem property tax bills, each county fiscal authority shall notify the Department of Revenue of the total amount of tax revenue which would be generated by applying the county millage rate to the eligible assessed value of each qualified motor vehicle in the county. The total amount of actual tax credits, so calculated, given to all qualified motor vehicles in the county shall be the amount of the grant to that county;

(B) Immediately following the actual preparation of ad valorem property tax bills, each county or independent school district´s fiscal authority shall notify the Department of Revenue of the total amount of tax revenue which would be generated by applying the school millage rate to the eligible assessed value of each qualified motor vehicle in the county or independent school district. The total amount of actual tax credits, so calculated, given to all qualified motor vehicles in the county or independent school district shall be the amount of the grant to that county or independent school district; and

(C) Immediately following the actual preparation of ad valorem property tax bills, each municipality´s fiscal authority shall notify the Department of Revenue of the total amount of tax revenue which would be generated by applying the municipal millage rate to the eligible assessed value of each qualified motor vehicle in the municipality. The total amount of actual tax credits, so calculated, given to all qualified motor vehicles in the municipality shall be the amount of the grant to that municipality.

(b) The grant of funds to each county shall be conditioned on the county´s fiscal authority reducing each qualified motor vehicle´s otherwise applicable liability for county taxes for county purposes by a credit amount calculated in subparagraph (a)(1)(A) of this Code section.

(c) The grant of funds to each county or independent school district shall be conditioned on the county or independent school district´s fiscal authority reducing each qualified motor vehicle´s otherwise applicable liability for school taxes by a credit amount calculated in subparagraph (a)(1)(B) of this Code section.

(d) The grant of funds to each municipality shall be conditioned on the municipality´s fiscal authority reducing each qualified motor vehicle´s otherwise applicable liability for municipal taxes by a credit amount calculated in subparagraph (a)(1)(C) of this Code section.

(e) Each fiscal authority shall show the credit amount on the tax bill, together with a prominent notice in substantially the following form: 'This reduction in your bill is the result of motor vehicle tax relief enacted by the Governor and the General Assembly of the State of Georgia.'

36-89A-5.

(a) The state revenue commissioner shall administer this chapter and shall adopt rules and regulations for the administration of this chapter, including specific instructions to local governments. The state revenue commissioner may adopt procedures for partial or installment distribution of grants when the commissioner determines that a full distribution will only result in the necessity of return of funds under subsection (b) of this Code section.

(b) If any excess funds remain from the funds granted to any county, municipality, or county or independent school district under this chapter, after the county, municipality, or county or independent school district complies with the credit requirements of Code Section 36-89A-4, such excess funds shall be returned by the county, municipality, or county or independent school district to the Department of Revenue.

36-89A-6.

Any credit under this chapter which is erroneously or illegally granted shall be recoverable by the political subdivision granting such credit in the same manner as any other delinquent tax."

PART II.
SECTION 2-1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended by revising Code Section 48-8-2, relating to definitions regarding sales and use tax, as follows:

"48-8-2.

As used in this article, the term:

(1) 'Business' means any activity engaged in by any person or caused to be engaged in by any person with the object of direct or indirect gain, benefit, or advantage.

(2) 'Cost price' means the actual cost of articles of tangible personal property without any deductions for the cost of materials used, labor costs, service costs, transportation charges, or any other expenses of any kind.

(3) 'Dealer' means every person who:

(A) Has sold at retail, used, consumed, distributed, or stored for use or consumption in this state tangible personal property and who cannot prove that the tax levied by this article has been paid on the sale at retail or on the use, consumption, distribution, or storage of the tangible personal property;

(B) Imports or causes to be imported tangible personal property from any state or foreign country for sale at retail, or for use, consumption, distribution, or storage for use or consumption in this state;

(C) Is the lessee or renter of tangible personal property and who pays to the owner of the property a consideration for the use or possession of the property without acquiring title to the property;

(D) Leases or rents tangible personal property for a consideration, permitting the use or possession of the property without transferring title to the property;

(E) Maintains or has within this state, indirectly or by a subsidiary, an office, distribution center, salesroom or sales office, warehouse, service enterprise, or any other place of business;

(F) Manufactures or produces tangible personal property for sale at retail or for use, consumption, distribution, or storage for use or consumption in this state;

(G) Sells at retail, offers for sale at retail, or has in his such person´s possession for sale at retail, or for use, consumption, distribution, or storage for use or consumption in this state tangible personal property;

(H) Solicits business by an agent, employee, representative, or any other person;

(I) Engages in the regular or systematic solicitation of a consumer market in this state, unless the dealer´s only activity in this state is:

(i) Advertising or solicitation by:

(I) Direct mail, catalogs, periodicals, or advertising fliers;

(II) Means of print, radio, or television media; or

(III) Telephone, computer, the Internet, cable, microwave, or other communication system; or

(ii) The delivery of tangible personal property within this state solely by common carrier or United States mail.

The exceptions provided in divisions (i) and (ii) of this subparagraph shall not apply to any requirements under Code Section 48-8-14;

(J) Is an affiliate that sells at retail, offers for sale at retail in this state, or engages in the regular or systematic solicitation of a consumer market in this state through a related dealer located in this state unless:

(i) The in-state dealer to which the affiliate is related does not engage in any of the following activities on behalf of the affiliate:

(I) Advertising;

(II) Marketing;

(III) Sales; or

(IV) Other services; and

(ii) The in-state dealer to which the affiliate is related accepts the return of tangible personal property sold by the affiliate and also accepts the return of tangible personal property sold by any person or dealer that is not an affiliate on the same terms and conditions as an affiliate´s return;.

As used in this subparagraph, the term 'affiliate' means any person that is related directly or indirectly through one or more intermediaries, controls, is controlled by, is under common control with, or is subject to the control of a dealer described in subparagraphs (A) through (I) of this paragraph or in this subparagraph; or

(K) Notwithstanding any of the provisions contained in this paragraph, with respect to a person that is not a resident or domiciliary of Georgia, that does not engage in any other business or activity in Georgia, and that has contracted with a commercial printer for printing to be conducted in Georgia, such person shall not be deemed a 'dealer' in Georgia merely because such person:

(i) Owns tangible or intangible property which is located at the Georgia premises of a commercial printer for use by such printer in performing services for the owner;

(ii) Makes sales and distributions of printed material produced at and shipped or distributed from the Georgia premises of the commercial printer;

(iii) Performs activities of any kind at the Georgia premises of the commercial printer which are directly related to the services provided by the commercial printer; or

(iv) Has printing, including any printing related activities, and distribution related activities performed by the commercial printer in Georgia for or on its behalf,

nor shall such person, absent any contact with Georgia other than with or through the use of the commercial printer or the use of the United States Postal Service or a common carrier, have an obligation to collect sales or use tax from any of its customers located in Georgia based upon the activities described in divisions (i) through (iv) of this subparagraph. In no event described in this subparagraph shall such person be considered to have a fixed place of business in Georgia at either the commercial printer´s premises or at any place where the commercial printer performs services on behalf of that person.; or

(L) Provides any services described under subparagraph (E) of paragraph (6) of this Code section and is required to file a federal income tax return.

(L) Each dealer shall collect the tax imposed by this article from the purchaser, lessee, or renter, as applicable, and no action seeking either legal or equitable relief on a sale, lease, rental, or other transaction may be had in this state by the dealer unless the dealer has fully complied with this article. (M) The commissioner shall promulgate such rules and regulations necessary to administer this paragraph, including other such information, applications, forms, or statements as the commissioner may reasonably require.

(4) 'Gross sales' means the:

(A) Sum total of all retail sales of tangible personal property or services without any deduction of any kind other than as provided in this article; or

(B)(i) Charges, when applied to sales of telephone service, made for local exchange telephone service, except local messages which are paid for by inserting coins in coin operated telephones, but including the total amount of the guaranteed charge for semipublic coin box telephone services; except as otherwise provided in division (ii) of this subparagraph.

(ii)(I) If a telephone service is not subject to the tax levied by this chapter, and if the amount charged for such telephone service is aggregated with and not separately stated from the amount paid or charged for any service that is subject to such tax, then the nontaxable telephone service shall be treated as being subject to such tax unless the telephone service provider can reasonably identify the amount paid or charged for the telephone service not subject to such tax from its books and records kept in the regular course of business.

(II) If a telephone service is not subject to the tax levied by this chapter, a customer may not rely upon the nontaxability of such telephone service unless the telephone service provider separately states the amount charged for such nontaxable telephone service or the telephone service provider elects, after receiving a written request from the customer in the form required by the provider, to provide verifiable data based upon the provider´s books and records that are kept in the regular course of business that reasonably identifies the amount charged for such nontaxable telephone service.

(iii) Telephone services described under this subparagraph shall not constitute services for purposes of subparagraph (E) of paragraph (6) of this Code section.

(5) 'Lease or rental' means the leasing or renting of tangible personal property and the possession or use of the property by the lessee or renter for a consideration without transfer of the title to the property.

(5.1) 'Prepaid state tax' means the tax levied under Code Section 48-8-30 in conjunction with Code Section 48-8-3.1 and Code Section 48-9-14 on the retail sale of motor fuels for highway use and collected prior to that retail sale. This tax is based upon the average retail sales price as set forth in Code Section 48-9-14.

(5.2) 'Prepaid local tax' means any local sales and use tax which is levied on the sale or use of motor fuel and imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, known as the 'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; or by or pursuant to Article 2, 2A, 3, or Article 2A, Part 1 of Article 3, Part 2 of Article 3, or Article 4 of this chapter. Such tax is based on the same average retail sales price as set forth in subparagraph (b)(2)(B) of Code Section 48-9-14. Such price shall be used to compute the prepaid sales tax rate for local jurisdictions by multiplying such retail price by the applicable rate imposed by the jurisdiction. The person collecting and reporting the prepaid local tax for the local jurisdiction shall provide a schedule as to which jurisdiction these collections relate. This determination shall be based upon the shipping papers of the conveyance that delivered the motor fuel to the dealer or consumer in the local jurisdiction. A seller may rely upon the representation made by the purchaser as to which jurisdiction the shipment is bound and prepare shipping papers in accordance with those instructions.

(6) 'Retail sale' or a 'sale at retail' means:

(A) A sale to a consumer or to any person for any purpose other than for resale of tangible personal property or services taxable under this article including, but not limited to, any such transactions which the commissioner upon investigation finds to be in lieu of sales. Sales for resale must be made in strict compliance with the commissioner´s rules and regulations. Any dealer making a sale for resale which is not in strict compliance with the commissioner´s rules and regulations shall himself or herself be liable for and shall pay the tax;

(B)(i) Except as otherwise provided in division (ii) or (iii) of this subparagraph, the sale of natural or artificial gas, oil, electricity, solid fuel, transportation, local telephone services, beverages, and tobacco products, when made to any purchaser for purposes other than resale.

(ii) The sale of electricity used directly in the manufacture of a product shall not constitute a retail sale for purposes of this article if the direct cost of such electricity exceeds 50 percent of the cost of all materials, including electricity, used directly in the product and shall be exempt from taxation under this article. Such exemption shall be applied to manufacturers located in this state as follows:

(I) For calendar years beginning on or after January 1, 1995, and prior to January 1, 1996, 20 percent of the direct cost of such electricity shall be exempt;

(II) For calendar years beginning on or after January 1, 1996, and prior to January 1, 1997, 40 percent of the direct cost of such electricity shall be exempt;

(III) For calendar years beginning on or after January 1, 1997, and prior to January 1, 1998, 60 percent of the direct cost of such electricity shall be exempt;

(IV) For calendar years beginning on or after January 1, 1998, and prior to January 1, 1999, 80 percent of the direct cost of such electricity shall be exempt; and

(V) For calendar years beginning on or after January 1, 1999, 100 percent of the direct cost of such electricity shall be exempt;

(iii) Telephone services subject to this subparagraph shall not constitute services for purposes of subparagraph (E) of this paragraph.

(C) The sale or charges for any room, lodging, or accommodation furnished to transients by any hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients for a consideration. This tax shall not apply to rooms, lodgings, or accommodations supplied for a period of 90 continuous days or more;

(D) Sales of tickets, fees, or charges made for admission to, or voluntary contributions made to places of, amusement, sports, or entertainment including, but not limited to:

(i) Billiard and pool rooms;

(ii) Bowling alleys;

(iii) Amusement devices;

(iv) Musical devices;

(v) Theaters;

(vi) Opera houses;

(vii) Moving picture shows;

(viii) Vaudeville;

(ix) Amusement parks;

(x) Athletic contests including, but not limited to, wrestling matches, prize fights, boxing and wrestling exhibitions, football games, and baseball games;

(xi) Skating rinks;

(xii) Race tracks;

(xiii) Public bathing places;

(xiv) Public dance halls; and

(xv) Any other place at which any exhibition, display, amusement, or entertainment is offered to the public or any other place where an admission fee is charged;

(E) Reserved Sales of or charges made for services enumerated in Code Section 48-8-2.2;

(F) Charges made for participation in games and amusement activities; or

(G) Sales of tangible personal property to persons for resale when there is a likelihood that the state will lose tax funds due to the difficulty of policing the business operations because:

(i) Of the operation of the business;

(ii) Of the very nature of the business;

(iii) Of the turnover of so-called independent contractors;

(iv) Of the lack of a place of business in which to display a certificate of registration;

(v) Of the lack of a place of business in which to keep records;

(vi) Of the lack of adequate records;

(vii) The persons are minors or transients;

(viii) The persons are engaged in essentially service businesses; or

(ix) Of any other reasonable reason.

The commissioner may promulgate rules and regulations requiring vendors of persons described in this subparagraph to collect the tax imposed by this article on the retail price of the tangible personal property. The commissioner shall refuse to issue certificates of registration and may revoke certificates of registration issued in violation of his or her rules and regulations.

(7) 'Retailer' means every person making sales at retail or for distribution, use, consumption, or storage for use or consumption in this state.

(8)(A) 'Sale' means any transfer of title or possession, transfer of title and possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means of any kind of tangible personal property for a consideration except as otherwise provided in subparagraph (B) of this paragraph and includes, but is not limited to:

(i) The fabrication of tangible personal property for consumers who directly or indirectly furnish the materials used in such fabrication;

(ii) The furnishing, repairing, or serving for a consideration of any tangible personal property consumed on the premises of the person furnishing, repairing, or serving the tangible personal property; or

(iii) A transaction by which the possession of property is transferred but the seller retains title as security for the payment of the price.

(B) Notwithstanding a dealer´s physical presence, in the case of a motor vehicle retail sale or a motor vehicle lease or rental when the lease or rental period exceeds 30 days and when the purchaser or lessee is a resident of this state, the taxable situs of the transaction for the purposes of collecting local sales and use taxes shall be the county of motor vehicle registration of the purchaser or lessee.

(9)(A) 'Sales price' means the total amount valued in money, whether paid in money or otherwise, for which tangible personal property or services are sold including, but not limited to, any services that are a part of the sale and any amount for which credit is given to the purchaser by the seller without any deduction from the total amount for the cost of the property sold, the cost of materials used, labor or service costs, losses, or any other expenses of any kind.

(B) 'Sales price' does not include:

(i) Cash discounts allowed and taken on sales;

(ii) The amount charged for labor or services rendered in installing, applying, remodeling, or repairing property sold except to the extent required under subparagraph (E) of paragraph (6) of this Code section; or

(iii) Finance charges, carrying charges, service charges, or interest from credit extended on sales of tangible personal property under conditional sale contracts or other conditional contracts providing for deferred payments of the purchase price.

(10) 'Services' means, for purposes of subparagraph (E) of paragraph (6) of this Code section, the providing by a dealer other than one which is qualified as a tax-exempt organization under Section501(c)(3) of the Internal Revenue Code, and as governed and determined under subsection (b) of Code Section 48-7-25, of any service under subsection (a) of Code Section 48-8-2.2 to an individual consumer but not to any business for a bona fide business purpose. For purposes of this paragraph, a bona fide business purpose means an activity carried on by a taxpayer with a reasonable degree of regularity, continuity, and sincere profit motivation so as would qualify such activity for expense deductions, depreciation deductions, or cost recovery under the Internal Revenue Code, including, but not limited to, Sections 162, 167, 168, and 179. Only $10,000.00 worth of taxable services to an individual, for purposes of subparagraph (E) of paragraph (6) of this Code section, shall be subject to state sales and use taxation per dealer per year.

(10)(11) 'Storage' means any keeping or retention in this state of tangible personal property for use or consumption in this state or for any purpose other than sale at retail in the regular course of business.

(11)(12) 'Tangible personal property' means personal property which may be seen, weighed, measured, felt, or touched or is in any other manner perceptible to the senses. 'Tangible personal property' does not mean stocks, bonds, notes, insurance, or other obligations or securities.

(12)(13) 'Use' means the exercise of any right or power over tangible personal property incident to the ownership of the property including, but not limited to, the sale at retail of the property in the regular course of business.

(13)(14) 'Use tax' includes the use, consumption, distribution, and storage of tangible personal property as defined in this article."

SECTION 2-2.

Said title is further amended by adding new Code sections to read as follows:

"48-8-2.1.

(a) As used in this Code section, the term 'local sales and use tax' means any sales tax, use tax, or local sales and use tax which is levied and imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the 'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; or by or pursuant to Article 2, Article 2A, Part 1 of Article 3, Part 2 of Article 3, or Article 4 of this chapter.

(b) Services provided for under subparagraph (E) of paragraph (6) of Code Section 48-8-2 shall be subject to state sales and use tax only and shall be exempt from any local sales and use tax.

(c) Services other than services provided for under subparagraph (E) of paragraph (6) of Code Section 48-8-2 which were subject to sales and use tax under this chapter prior to January 1, 2010, shall continue to be subject to sales and tax use taxation in the same manner as provided prior to January 1, 2010, unless otherwise exempt under this chapter.

48-8-2.2.

(a) Services provided for under subparagraph (E) of paragraph (6) of Code Section 48-8-2 means the following services, description of services, or services provided by the following establishments as described by a 2007 North American Industry Classification System Code:

Code Title

(1) 236118 Residential remodelers;

(2) 238110 Poured concrete foundation and structure contractors;

(3) 238120 Structural steel and precast concrete contractors;

(4) 238130 Framing contractors;

(5) 238140 Masonry contractors;

(6) 238150 Glass and glazing contractors;

(7) 238160 Roofing contractors;

(8) 238170 Siding contractors;

(9) 238190 Other foundation, structure, and building exterior

contractors;

(10) 238210 Electrical contractors and other wiring installation

contractors;

(11) 238220 Plumbing, heating, and air-conditioning contractors;

(12) 238290 Other building equipment contractors;

(13) 238310 Drywall and insulation contractors;

(14) 238320 Painting and wall covering contractors;

(15) 238330 Flooring contractors;

(16) 238340 Tile and terrazzo contractors;

(17) 238350 Finish carpentry contractors;

(18) 238390 Other building finishing contractors;

(19) 238910 Site preparation contractors;

(20) 238990 All other specialty trade contractors;

(21) 484210 Used household and office goods moving;

(22) 485310 Taxi service;

(23) 485320 Limousine service;

(24) 487110 Scenic and sightseeing transportation, land;

(25) 487210 Scenic and sightseeing transportation, water;

(26) 487990 Scenic and sightseeing transportation, other;

(27) 488410 Motor vehicle towing;

(28) 488991 Packing and crating;

(29) 492110 Couriers and express delivery services;

(30) 492210 Local messengers and local delivery;

(31) 493110 General warehousing and storage;

(32) 493120 Refrigerated warehousing and storage;

(33) 493190 Other warehousing and storage;

(34) 512131 Motion picture theaters;

(35) 512132 Drive-in motion picture theaters;

(36) 512240 Sound recording studios;

(37) 512290 Other sound recording industries;

(38) 515210 Cable and other subscription programming;

(39) 517110 Wired telecommunications carriers;

(40) 517210 Wireless telecommunications carriers (except satellite);

(41) 517410 Satellite telecommunications;

(42) 517911 Telecommunications resellers;

(43) 517919 All other telecommunications;

(44) 518210 Data processing, hosting, and related services;

(45) 519120 Libraries and archives;

(46) 519130 Internet publishing and broadcasting and web search portals;

(47) 519190 All other information services;

(48) 522110 Commercial banking;

(49) 522120 Savings institutions;

(50) 522130 Credit unions;

(51) 522210 Credit card issuing;

(52) 522220 Sales financing;

(53) 522291 Consumer lending;

(54) 522292 Real estate credit;

(55) 522298 All other nondepository credit intermediation;

(56) 522310 Mortgage and nonmortgage loan brokers;

(57) 522320 Financial transactions processing, reserve, and clearing-house activities;

(58) 522390 Other activities related to credit intermediation;

(59) 523991 Trust, fiduciary, and custody activities;

(60) 531120 Lessors of nonresidential buildings (except

miniwarehouses);

(61) 531130 Lessors of miniwarehouses and self-storage units;

(62) 531210 Offices of real estate agents and brokers;

(63) 531320 Offices of real estate appraisers;

(64) 531390 Other activities related to real estate;

(65) 532111 Passenger car rental;

(66) 532112 Passenger car leasing;

(67) 532120 Truck, utility trailer, and RV (recreational vehicle) rental and leasing;

(68) 532210 Consumer electronics and appliance rental;

(69) 532220 Formal wear and costume rental;

(70) 532230 Video tape and disc rental;

(71) 532292 Recreational goods rental;

(72) 532299 All other consumer goods rental;

(73) 532310 General rental centers;

(74) 541110 Offices of lawyers;

(75) 541191 Title abstract and settlement offers;

(76) 541199 All other legal services;

(77) 541211 Offices of certified public accountants;

(78) 541213 Tax preparation services;

(79) 541219 Other accounting services;

(80) 541310 Architectural services;

(81) 541320 Landscape architectural services;

(82) 541330 Engineering services;

(83) 541340 Drafting services;

(84) 541350 Building inspection services;

(85) 541360 Geophysical surveying and mapping services;

(86) 541370 Surveying and mapping services;

(87) 541380 Testing laboratories;

(88) 541410 Interior design services;

(89) 541430 Graphic design services;

(90) 541490 Other specialized design services;

(91) 541511 Custom computer programming services;

(92) 541512 Computer systems design services;

(93) 541519 Other computer related services;

(94) 541921 Photography studios, portrait;

(95) 541930 Translation and interpretation services;

(96) 541940 Veterinary services;

(97) 541990 All other professional, scientific, and technical services;

(98) 561410 Document preparation services;

(99) 561421 Telephone answering services;

(100) 561431 Private mail centers;

(101) 561439 Other business service centers (including copy shops);

(102) 561510 Travel agencies;

(103) 561520 Tour operators;

(104) 561591 Convention and visitors bureaus;

(105) 561599 Other travel arrangement and reservation services;

(106) 561611 Investigation services;

(107) 561621 Security systems services (except locksmiths);

(108) 561622 Locksmiths;

(109) 561710 Exterminating and pest control services;

(110) 561720 Janitorial services;

(111) 561730 Landscaping services;

(112) 561740 Carpet and upholstery cleaning services;

(113) 561790 Other services to buildings and dwellings;

(114) 561910 Packaging and labeling services;

(115) 562111 Solid waste collection;

(116) 562112 Hazardous waste collection;

(117) 562119 Other waste collection;

(118) 562211 Hazardous waste treatment and disposal;

(119) 562212 Solid waste landfill;

(120) 562219 Other nonhazardous waste treatment and disposal;

(121) 562910 Remediation services;

(122) 562991 Septic tank and related services;

(123) 711110 Theater companies and dinner theaters;

(124) 711120 Dance companies;

(125) 711130 Musical groups and artists;

(126) 711190 Other performing arts companies;

(127) 711211 Sports teams and clubs;

(128) 711212 Racetracks;

(129) 711219 Other spectator sports;

(130) 711510 Independent artists, writers, and performers;

(131) 712110 Museums;

(132) 712120 Historical sites;

(133) 712130 Zoos and botanical gardens;

(134) 712190 Nature parks and other similar institutions;

(135) 713110 Amusement and theme parks;

(136) 713120 Amusement arcades;

(137) 713910 Golf courses and country clubs;

(138) 713930 Marinas;

(139) 713940 Fitness and recreational sports centers;

(140) 713950 Bowling centers;

(141) 713990 All other amusement and recreation industries;

(142) 721211 RV (recreational vehicle) parks and campgrounds;

(143) 721214 Recreational and vacation camps (except campgrounds);

(144) 722320 Caterers;

(145) 722330 Mobile food services;

(146) 811111 General automotive repair;

(147) 811112 Automotive exhaust system repair;

(148) 811113 Automotive transmission repair;

(149) 811118 Other automotive mechanical and electrical repair and

maintenance;

(150) 811121 Automotive body, paint, and interior repair and maintenance;

(151) 811122 Automotive glass replacement shops;

(152) 811191 Automotive oil change and lubrication shops;

(153) 811192 Car washes;

(154) 811198 All other automotive repair and maintenance;

(155) 811211 Consumer electronics repair and maintenance;

(156) 811212 Computer and office machine repair and maintenance;

(157) 811213 Communication equipment repair and maintenance;

(158) 811411 Home and garden equipment repair and maintenance;

(159) 811412 Appliance repair and maintenance;

(160) 811420 Reupholstery and furniture repair;

(161) 811430 Footwear and leather goods repair;

(162) 811490 Other personal and household goods repair and maintenance;

(163) 812111 Barber shops;

(164) 812112 Beauty salons;

(165) 812113 Nail salons;

(166) 812191 Diet and weight reducing centers;

(167) 812199 Other personal care services;

(168) 812310 Coin operated laundries and dry-cleaners;

(169) 812320 Dry-cleaning and laundry services;

(170) 812331 Linen supply;

(171) 812910 Pet care (except veterinary);

(172) 812921 Photo finishing laboratories (except one-hour);

(173) 812922 One-hour photo finishing;

(174) 812930 Parking lots and garages; and

(175) 812990 All other personal services.

(b) Services, descriptions of services, or services provided by the following establishments as described by a 2007 North American Industry Classification System Code shall not be subject to sales and use tax under subparagraph (E) of paragraph (6) of Code Section 48-8-2:

(1) Educational services codes beginning with 61; and

(2) Health care and social assistance codes beginning with 62.

(1) Accrual of interest to a financial account; or

(2) Services used directly in the construction of a new residence or an addition to an existing residence."

SECTION 2-3.

Said title is further amended in Code Section 48-8-3, relating to exemptions from sales and use tax, by revising paragraphs (22) and (23) as follows:

"(22) Professional, insurance, or personal service transactions which involve sales as inconsequential elements for which no separate charges are made Reserved;

(23) Fees or charges for services rendered by repairmen for which a separate charge is made Reserved;

SECTION 2-4.

Said title is further amended by adding a new Code section to read as follows:

"48-8-16.

(a) As used in this Code section, the term:

(1) 'Cable service' has the same meaning as that term is defined in 47 U.S.C. Section 522(6).

(2) 'Multichannel video programming service' means the provision or transfer of video programming unless otherwise explicitly excluded in this Code section, including but not limited to satellite broadcasting service, cable service, video services delivered over fiber optic line, coaxial cable, copper wire, Internet protocol, or wireless cable service.

(3) 'Place of primary use' means the street address representative of where the subscriber´s use of the multichannel video programming service primarily occurs, which must be the residential street address or the primary business street address of the subscriber and, in the case of wireless cable service, must be within the licensed service area of the service provider.

(4) 'Satellite broadcasting service' means the distribution or broadcasting of programming or services by satellite directly to the subscriber´s receiving equipment including direct broadcast satellite service and including all service and rental charges, premium channels or other special services, installation and repair service charges, and any other charges having any connection with the provision of the satellite broadcasting service.

(5) 'Video services' means video programming provided by, or generally considered comparable to programming provided by, a television broadcast station, as set forth in 47 U.S.C. Section 522(20).

(6) 'Wireless cable service' means multichannel multipoint distribution services, with programming broadcast by microwave or any similar means directly to the subscriber, including basic, extended, premium service, and other similar services and including video programming services delivered by commercial mobile radio service providers as defined in 47 C.F.R. 20.3.

(b) A credit against the taxes under this chapter shall be authorized with respect to amounts charged for multichannel video programming services if the provider of such services is subject to state or local franchise fees pursuant to Title 36. Such credit amount shall not exceed the amount of such fees or the amount of taxes due under this chapter, whichever is less. Such credit shall be claimed and allowed only for the same calendar year in which such provider pays such state or local franchise fees. Such credit shall be conditioned upon such provider remitting back to its multichannel video programming customers the full amount of such credit, on a pro rata basis, during the same calendar year for which such credit is claimed."

SECTION 2-5.

Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended by revising Chapter 89, relating to homeowner tax relief grants, as follows:

"CHAPTER 89

36-89-1.

As used in this chapter, the term:

(1) 'Applicable rollback' means a:

(A) Rollback of an ad valorem tax millage rate pursuant to subsection (a) of Code Section 48-8-91 in a county or municipality that levies a local option sales tax;

(B) Rollback of an ad valorem tax millage rate pursuant to subparagraph (c)(2)(C) of Code Section 48-8-104 in a county or municipality that levies a homestead option sales tax;

(C) Subtraction from an ad valorem millage rate pursuant to Code Section 20-2-334 in a local school system that receives a state school tax credit;

(D) Reduction of an ad valorem tax millage rate pursuant to the development of a service delivery strategy under Code Section 36-70-24; and

(E) Reduction of an ad valorem tax millage rate pursuant to paragraph (2) of subsection (a) of Code Section 33-8-8.3 in a county that collects insurance premium tax.

(2) 'County millage rate' means the net ad valorem tax millage rate, after deducting applicable rollbacks, levied by a county for county purposes and applying to qualified homesteads in the county, including any millage levied for those special districts reported on the 2004 ad valorem tax digest certified to and received by the state revenue commissioner on or before December 31, 2004, but not including any millage levied for purposes of bonded indebtedness and not including any millage levied on behalf of a county school district for educational purposes.

(3) 'Eligible assessed value' means a certain stated amount of the assessed value of each qualified homestead in the state. The amount of the eligible assessed value for any given year shall be fixed in that year´s General Appropriations Act.

(4) 'Fiscal authority' means the individual authorized to collect ad valorem taxes for a county or municipality which levies ad valorem taxes.

(5) 'Municipal millage rate' means the net ad valorem tax millage rate, after deducting applicable rollbacks, levied by a municipality for municipal purposes and applying to qualified homesteads in the municipality, including any millage levied for those special tax districts reported on the 2004 City and Independent School Millage Rate Certification certified to and received by the state revenue commissioner on or before December 31, 2004, but not including any millage levied for purposes of bonded indebtedness and not including any millage levied on behalf of an independent school district for educational purposes.

(6) 'Qualified homestead' means a homestead qualified for any exemption, state, county, or school, authorized under Code Section 48-5-44.

(7) 'School millage rate' means the net ad valorem tax millage rate, after deducting applicable rollbacks, levied on behalf of a county or independent school district for educational purposes and applying to qualified homesteads in the county or independent school district, not including any millage levied for purposes of bonded indebtedness and not including any millage levied for county or municipal purposes.

(8) 'State millage rate' means the state millage levy.

36-89-2.

In each year the General Assembly shall appropriate funds for homeowner tax relief grants to counties, municipalities, and county or independent school districts, in order to provide for more effective regulation and management of the finance and fiscal administration of the state and pursuant to and in furtherance of the provisions of Article III, Section IX, Paragraph II(c) of the Constitution; Article VII, Section III, Paragraph III of the Constitution; Article VIII, Section I, Paragraph I of the Constitution; and other provisions of the Constitution.

36-89-3.

In each year the General Assembly shall appropriate to the Department of Revenue funds to provide homeowner tax relief grants to counties, municipalities, and county or independent school districts. When funds are so appropriated, the The General Appropriations Act shall specify the amount appropriated and the eligible assessed value of each qualified homestead in the state for the specified tax year, which eligible assessed value shall, subject to annual appropriation by the General Assembly, be not less than that specified in the Fiscal Year 2004 General Appropriations Act. If for any reason the amount appropriated in the General Appropriations Act is insufficient to fund the eligible assessed value stated in the General Appropriations Act, the amount appropriated may be adjusted in amendments to the General Appropriations Act.

36-89-4.

(a) Subject to the limitations of subsection (b) of this Code section, each qualified taxpayer shall receive whichever of the following adjustment amounts provides the maximum benefit to that taxpayer on the tax bill for the applicable tax year;

(1) A benefit equivalent to a homestead exemption of up to $30,000.00 of the assessed value of the taxpayer´s homestead or the taxpayer´s ad valorem property tax liability for county or municipal purposes, or both if applicable, on the homestead, whichever is lower; or

(2) A benefit equivalent to an exemption from the full amount of the taxpayer´s ad valorem property tax liability for educational purposes on the homestead.

(b) Any benefit determination under subsection (a) of this Code section shall be determined according to a base millage rate. This base millage rate shall be the millage rate for the county, municipality, or school district which provides the amount of property tax revenue collected for such county, municipality, or school district during a tax year, not attributable to new construction, which does not exceed the amount collected in the 2008 tax year plus the cap rate including any accrued cap rates. The term 'cap rate' means the percentage change in the price index for gross output of state and local government from the prior year to the current year as defined by the National Income and Product Accounts and determined by the United States Bureau of Economic Analysis and indicated by the Price Index for Government Consumption Expenditures and General Government Gross Output (Table 3.10.4).

36-89-4. 36-89-5.

(a)(1) When funds are appropriated as provided in Code 36-89-3, For taxpayers receiving grants under paragraph (1) of Code Section 36-89-4, such grants shall be allotted to each county, and municipality, and county or independent school district in the state as follows:

(A) Immediately following the actual preparation of ad valorem property tax bills, each county fiscal authority shall notify the Department of Revenue of the total amount of tax revenue which would be generated by applying the sum of the state and county millage rates rate to the eligible assessed value of each qualified homestead in the county. The total amount of actual tax credits, so calculated, given to all qualified homesteads in the county shall be the amount of the grant to that county; and

(B) Immediately following the actual preparation of ad valorem property tax bills, each county or independent school district´s fiscal authority shall notify the Department of Revenue of the total amount of tax revenue which would be generated by applying the school millage rate to the eligible assessed value of each qualified homestead in the county or independent school district. The total amount of actual tax credits, so calculated, given to all qualified homesteads in the county or independent school district shall be the amount of the grant to that county or independent school district; and

(C) Immediately following the actual preparation of ad valorem property tax bills, each municipality´s fiscal authority shall notify the Department of Revenue of the total amount of tax revenue which would be generated by applying the municipal millage rate to the eligible assessed value of each qualified homestead in the municipality. The total amount of actual tax credits, so calculated, given to all qualified homesteads in the municipality shall be the amount of the grant to that municipality.

(2) Credit amounts computed under paragraph (1) of this subsection shall be applied to reduce the otherwise applicable tax liability on a dollar-for-dollar basis, but the credit granted shall not in any case exceed the amount of the otherwise applicable tax liability after the granting of all applicable homestead exemptions except for any homestead exemption under Article 2A of Chapter 8 of Title 48, the 'Homestead Option Sales and Use Tax Act,' as amended, and after the granting of all applicable millage rollbacks.

(b) The grant of funds to each county shall be conditioned on the county´s fiscal authority reducing each qualified homestead´s otherwise applicable liability for county taxes for county purposes by a credit amount calculated in subparagraph (a)(1)(A) of this Code section.

(c) The grant of funds to each county or independent school district shall be conditioned on the county or independent school district´s fiscal authority reducing each qualified homestead´s otherwise applicable liability for school taxes by a credit amount calculated in subparagraph (a)(1)(B) of this Code section.

(d) The grant of funds to each municipality shall be conditioned on the municipality´s fiscal authority reducing each qualified homestead´s otherwise applicable liability for municipal taxes by a credit amount calculated in subparagraph (a)(1)(C) (a)(1)(B) of this Code section.

(e)(d) Each fiscal authority shall show the credit amount on the tax bill, together with a prominent notice in substantially the following form: 'This reduction in your bill is the result of homeowner´s tax relief enacted by the Governor and the General Assembly of the State of Georgia.'

36-89-6.

(a)(1) For taxpayers receiving grants under paragraph (2) of Code Section 36-89-4, such grants shall be allotted to each county or independent school district in the manner provided in paragraph (2) of this subsection.

(2) Immediately following the actual preparation of ad valorem property tax bills, each county or independent school district´s fiscal authority shall notify the Department of Revenue of the total amount of tax revenue which would be generated by applying the school millage rate, as defined under paragraph (7) of Code Section 36-89-4, to the eligible assessed value of each qualified homestead in the county or independent school district. The total amount of actual tax credits, so calculated, given to all qualified homesteads in the county or independent school district shall be the amount of the grant to that county or independent school district.

(3) Credit amounts computed under paragraph (1) of this subsection shall be applied to reduce the otherwise applicable tax liability on a dollar-for-dollar basis, but the credit granted shall not in any case exceed the amount of the otherwise applicable tax liability after the granting of all applicable homestead exemptions and after the granting of all applicable millage rollbacks.

(b) The grant of funds to each county or independent school district shall be conditioned on the county or independent school district´s fiscal authority reducing each qualified homestead´s otherwise applicable liability for school taxes by a credit amount calculated in subsection (a) of this Code section.

(c) Each fiscal authority shall show the credit amount on the tax bill, together with a prominent notice in substantially the following form: 'This reduction in your bill is the result of homeowner´s tax relief enacted by the Governor and the General Assembly of the State of Georgia.'

36-89-5. 36-89-7.

(b) If any excess funds remain from the funds granted to any county, municipality, or county or independent school district under this chapter, after the county, municipality, or county or independent school district complies with the credit requirements of Code Section 38-89-4 36-89-5 or 36-89-6, such excess funds shall be returned by the county, municipality, or county or independent school district to the Department of Revenue.

36-89-6. 36-89-8.

Any credit under this chapter which is erroneously or illegally granted shall be recoverable by the political subdivision granting such credit in the same manner as any other delinquent tax."

PART III
SECTION 3-1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended by revising Code Section 48-5-2, relating to ad valorem taxation definitions, as follows:

"48-5-2.

As used in this chapter, the term:

(1) 'Current use value' of bona fide conservation use property means the amount a knowledgeable buyer would pay for the property with the intention of continuing the property in its existing use and in an arm´s length, bona fide sale and shall be determined in accordance with the specifications and criteria provided for in subsection (b) of Code Section 48-5-269.

(2) 'Current use value' of bona fide residential transitional property means the amount a knowledgeable buyer would pay for the property with the intention of continuing the property in its existing use and in an arm´s length, bona fide sale. The tax assessor shall consider the following criteria, as applicable, in determining the current use value of bona fide residential transitional property:

(A) The current use of such property;

(B) Annual productivity; and

(3) 'Fair market value of property' means, except as otherwise provided in Code Section 48-5-2.1, the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm´s length, bona fide sale. With respect to the valuation of equipment, machinery, and fixtures when no ready market exists for the sale of the equipment, machinery, and fixtures, fair market value may be determined by resorting to any reasonable, relevant, and useful information available including, but not limited to, the original cost of the property, any depreciation or obsolescence, and any increase in value by reason of inflation. Each tax assessor shall have access to any public records of the taxpayer for the purpose of discovering such information.

(A) In determining the fair market value of a going business where its continued operation is reasonably anticipated, the tax assessor may value the equipment, machinery, and fixtures which are the property of the business as a whole where appropriate to reflect the accurate fair market value.

(B) The tax assessor shall consider the following criteria in determining the fair market value of real property:

(i) Existing zoning of property;

(ii) Existing use of property, including any restrictions or limitations on the use of property resulting from state or federal law or rules or regulations adopted pursuant to the authority of state or federal law;

(iii) Existing covenants or restrictions in deed dedicating the property to a particular use; and

(iv) Any other factors deemed pertinent in arriving at fair market value.

(B.1) The tax assessor shall not consider any income tax credits with respect to for real property which are claimed and granted pursuant to either Section 42 of the Internal Revenue Code of 1986, as amended, or Chapter 7 of this title in determining the fair market value of real property.

(C) Fair market value of 'historic property' as such term is defined in subsection (a) of Code Section 48-5-7.2 means, except as otherwise provided in Code Section 48-5-2.1:

(i) For the first eight years in which the property is classified as 'rehabilitated historic property,' the value equal to the greater of the acquisition cost of the property or the appraised fair market value of the property as recorded in the county tax digest at the time preliminary certification on such property was received by the county board of tax assessors pursuant to subsection (c) of Code Section 48-5-7.2;

(ii) For the ninth year in which the property is classified as 'rehabilitated historic property,' the value of the property as determined by division (i) of this subparagraph plus one-half of the difference between such value and the current fair market value exclusive of the provisions of this subparagraph; and

(iii) For the tenth and following years, the fair market value of such property as determined by the provisions of this paragraph, excluding the provisions of this subparagraph.

(D) Fair market value of 'landmark historic property' as such term is defined in subsection (a) of Code Section 48-5-7.3 means, except as otherwise provided in Code Section 48-5-2.1:

(i) For the first eight years in which the property is classified as 'landmark historic property,' the value equal to the greater of the acquisition cost of the property or the appraised fair market value of the property as recorded in the county tax digest at the time certification on such property was received by the county board of tax assessors pursuant to subsection (c) of Code Section 48-5-7.3;

(ii) For the ninth year in which the property is classified as 'landmark historic property,' the value of the property as determined by division (i) of this subparagraph plus one-half of the difference between such value and the current fair market value exclusive of the provisions of this subparagraph; and

(iii) For the tenth and following years, the fair market value of such property as determined by the provisions of this paragraph, excluding the provisions of this subparagraph.

(E) Timber shall be valued at its fair market value at the time of its harvest or sale in the manner specified in Code Section 48-5-7.5.

(F) Fair market value of 'brownfield property' as such term is defined in subsection (a) of Code Section 48-5-7.6 means, except as otherwise provided in Code Section 48-5-2.1:

(i) Unless sooner disqualified pursuant to subsection (e) of Code Section 48-5-7.6, for the first ten years in which the property is classified as 'brownfield property,' the value equal to the lesser of the acquisition cost of the property or the appraised fair market value of the property as recorded in the county tax digest at the time application was made to the Environmental Protection Division of the Department of Natural Resources for participation under Article 9 of Chapter 8 of Title 12, the 'Hazardous Sites Reuse and Redevelopment Act,' as amended;

(ii) Unless sooner disqualified pursuant to subsection (e) of Code Section 48-5-7.6, for the eleventh and following years, the fair market value of such property as determined by the provisions of this paragraph, excluding the provisions of this subparagraph.

(4) 'Foreign merchandise in transit' means personal property of any description which has been or will be moved by waterborne commerce through any port located in this state and:

(A) Which has entered the export stream, although temporarily stored or warehoused in the county where the port of export is located; or

(B) Which was shipped from a point of origin located outside the customs territory of the United States and on which United States customs duties are paid at or through any customs district or port located in this state, although stored or warehoused in the county where the port of entry is located while in transit to a final destination."

SECTION 3-2.

Said title is further amended by adding a new Code section to read as follows:

"48-5-2.1.

(a) Pursuant to Article VII, Section I, Paragraph IV of the Constitution, the assessed value of residential real property and nonresidential real property for all ad valorem tax purposes shall not be increased from the valuation established for 2008. Additions or improvements to such residential real property and nonresidential real property placed in service after December 31, 2007, shall be appraised for ad valorem tax purposes at their fair market value and shall be added to the owner´s 2008 valuation amount.

(b) If such residential real property or nonresidential real property is sold or transferred to another person, such residential real property or nonresidential real property shall be appraised for ad valorem tax purposes at fair market value.

(c) The 2008 valuation amount for any individual parcel of residential real property may be increased during a taxable year by an amount not to exceed a 2 percent increase in the preceding taxable year´s value. The 2008 valuation for any individual parcel of nonresidential real property may be increased during a taxable year by an amount not to exceed a 3 percent increase in the preceding taxable year´s value. The percentage limitations of this provision shall not be construed to prohibit the mass appraisal of real property in a county."

PART IV
SECTION 4-1.

(a) Part I of this Act shall become effective on January 1, 2009, and shall be applicable to all taxable years beginning on or after January 1, 2009; provided, however, that Part I of this Act shall only become effective on January 1, 2009, upon the ratification of a resolution at the November, 2008, state-wide general election, which resolution amends the Constitution so as to provide immediate tax relief and authorizing future tax relief pursuant to The Property Tax Reform Amendment. If such resolution is not so ratified, Part I of this Act shall not become effective and shall stand repealed in its entirety on January 1, 2009.
(b) Part II of this Act shall become effective on January 1, 2010, and shall be applicable to all taxable years beginning on or after January 1, 2010; provided, however, that Part II of this Act shall only become effective on January 1, 2010, upon the ratification of a resolution at the November, 2008, state-wide general election, which resolution amends the Constitution so as to provide immediate tax relief and authorizing future tax relief pursuant to The Property Tax Reform Amendment. If such resolution is not so ratified, Part II of this Act shall not become effective and shall stand repealed in its entirety on January 1, 2009.
(c) Part III of this Act shall become effective on January 1, 2009, and shall be applicable to all taxable years beginning on or after January 1, 2009; provided, however, that Part III of this Act shall only become effective on January 1, 2009, upon the ratification of a resolution ats the November, 2008, state-wide general election, which resolution amends the Constitution so as to freeze the valuation of real property except for certain adjustments and to limit future ad valorem tax revenues unless approved by voters in a referendum. If such resolution is not so ratified, Part III this Act shall not become effective and shall stand repealed in its entirety on January 1, 2009.
(d) This part shall become effective upon the approval of this Act by the Governor or upon the becoming law without such approval.

SECTION 4-2.

All laws and parts of laws in conflict with this Act are repealed.