24 LC 50 0797S
The House Committee on Ways and Means offers the following substitute to HB 1225:
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated,1
relating to joint county and municipal sales and use tax (LOST), so as to revise provisions2
related to negotiations for the distribution of tax proceeds; to limit the application of certain3
requirements with respect to absent counties; to provide for related matters; to repeal4
conflicting laws; and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Article 2 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to joint8
county and municipal sales and use tax (LOST), is amended by revising Code Section9
48-8-89, relating to distribution and use of proceeds, certificate specifying percentage of10
proceeds for each political subdivision, determination of proceeds for absent municipalities,11
procedure for filing certificates, effect of failure to file, and renegotiation of certificate, as12
follows:13
"48-8-89.14
(a) The proceeds of the tax collected by the commissioner in each special district under15
this article shall be disbursed as soon as practicable after collection as follows:16
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(1) One percent of the amount collected shall be paid into the general fund of the state17
treasury in order to defray the costs of administration; and18
(2) Except for the percentage provided in paragraph (1) of this subsection, the remaining19
proceeds of the tax shall be distributed to the governing authority of each qualified20
municipality within the special district and to the governing authority of the county21
whose geographical boundary is conterminous with that of the special district for the22
purpose of assisting such political subdivisions in funding all or any portion of those23
services which are to be provided by such governing authorities pursuant to and in24
accordance with Article IX, Section II, Paragraph III of the Constitution of this state.25
(b) It is the intent of the General Assembly that no agreement as to the distribution of the26
proceeds of the tax shall enrich any political subdivision beyond a sum which in the27
absence of the distribution would be raised through other sources of revenue. The28
distribution shall be in accordance with a certificate which shall be executed in behalf of29
each respective governing authority, except as otherwise provided in this subsection, and30
which shall encompass all respective political subdivisions, shall be filed with the31
commissioner, and shall specify by percentage that portion of the remaining proceeds of32
the tax available for distribution which each such political subdivision shall receive. On33
or after July 1, 1995, the distribution of proceeds of the tax as specified in the certificate34
shall be based upon, but not be limited to, the following criteria:35
(1) The service delivery responsibilities of each political subdivision to the population36
served by the political jurisdiction and served during normal business hours, conventions,37
trade shows, athletic events and the inherent value to a community of a central business38
district and the unincorporated areas of the county and the obligation of all residents of39
the county for the maintenance and prosperity of the central business district and the40
unincorporated areas of the county;41
(2) The service delivery responsibilities of each political subdivision to the resident42
population of the subdivision;43
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(3) The existing service delivery responsibility of each political subdivision;44
(4) The effect of a change in sales tax distribution on the ability of each political45
subdivision to meet its short-term and long-term debt;46
(5) The point of sale and use which generates the tax to be apportioned;47
(6) The existence of intergovernmental agreements among and between the political48
subdivisions;49
(7) The use by any political subdivision of property taxes and other revenues from some50
taxpayers to subsidize the cost of services provided to other taxpayers of the levying51
subdivision; and52
(8) Any coordinated plan of county and municipal service delivery and financing.53
Notwithstanding the fact that a certificate shall not contain an execution in behalf of one54
or more qualified municipalities within the special district or an execution of the county55
whose boundaries are conterminous with that of the special district, if the combined total56
of the populations of all such absent municipalities political subdivisions is less than57
one-half of the aggregate population of all qualified municipalities located within the58
special district, the submitting political subdivisions shall, in behalf of the absent59
municipalities political subdivisions, specify a percentage of that portion of the remaining60
proceeds which each such municipality or county shall receive, which percentage shall not61
be less than that proportion which each absent municipality's population or absent county's62
unincorporated population bears to the total population of all qualified municipalities63
within the special district multiplied by that portion of the remaining proceeds which are64
received by all qualified municipalities political subdivisions within the special district. 65
For the purpose of determining the population of the absent municipalities, only that66
portion of the population of each such municipality which is located within the special67
district shall be computed. No certificate may contain a total of specified percentages in68
excess of 100 percent. The certificate shall be filed with the commissioner by March 1,69
1980, for those special districts in which the tax authorized by this article is being levied70
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on January 1, 1980. For all other special districts in which the tax shall be imposed71
subsequent to January 1, 1980, the certificate shall be filed with the commissioner within72
60 days after the tax is imposed within the district. The commissioner shall continue to73
distribute the proceeds of the tax as otherwise provided in this Code section until the first74
day of the next calendar year following the month in which the commissioner receives a75
certificate as provided in this Code section, which certificate shall provide other76
percentages upon which the commissioner shall make the distribution to the political77
subdivisions entitled to the proceeds of the tax. At such time, the commissioner shall78
thereafter distribute the proceeds of the tax in accordance with the directions of the79
certificate.80
(c) If the certificate provided for in subsection (b) of this Code section is not received by81
the commissioner by the required date, the authority to impose the tax authorized by Code82
Section 48-8-82 shall cease on the first day of the second calendar month following the83
month in which the tax was initially imposed and the tax shall not be levied in the special84
district after such date unless the reimposition of the tax is subsequently authorized85
pursuant to Code Section 48-8-85. When the imposition of the tax is so terminated, the86
commissioner shall retain the proceeds of the tax which were to be distributed to the87
governing authorities of the county and qualified municipalities within the special district88
until he or she receives a certificate in behalf of each such governing authority specifying89
the percentage of the proceeds which each such governing authority shall receive. If no90
such certificate is received by the commissioner within 120 days of the date on which the91
authority to levy the tax was terminated, the proceeds shall escheat to the state and the92
commissioner shall transfer the proceeds to the state's general fund.93
(d)(1) A certificate providing for the distribution of the proceeds of the tax authorized94
by this article shall expire on December 31 of the second year following the year in which95
the decennial census is conducted. No later than December 30 of the second year96
following the year in which the census is conducted, a new distribution certificate97
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meeting the requirements for certificates specified by subsection (b) of this Code section98
shall be filed with and received by the commissioner. The General Assembly recognizes99
that the requirement for government services is not always in direct correlation with100
population. Although a new distribution certificate is required within a time certain of the101
decennial census, this requirement is not meant to convey an intent by the General102
Assembly that population as a criterion should be more heavily weighted than other103
criteria. It is the express intent of the General Assembly in requiring such renegotiation104
that eligible political subdivisions shall analyze local service delivery responsibilities and105
the existing allocation of proceeds made available to such governments under the106
provisions of this article and make rational the allocation of such resources to meet such107
service delivery responsibilities. Political subdivisions in their renegotiation of such108
distributions shall at a minimum consider the criteria specified in subsection (b) of this109
Code section.110
(2) The commissioner shall be notified in writing of the commencement of renegotiation111
proceedings by the county governing authority on behalf of all eligible political112
subdivisions within the special district. The eligible political subdivisions shall113
commence renegotiations at the call of the county governing authority before July 1 of114
the second year following the year in which the census is conducted. If the county115
governing authority does not issue the call by that date, any eligible municipality may116
issue the call and so notify the commissioner and all eligible political subdivisions within117
the special district.118
(3) Following the commencement of such renegotiation, if the parties necessary to an119
agreement fail to reach an agreement within 60 days, such parties shall submit the dispute120
to nonbinding arbitration, mediation, or such other means of resolving conflicts in a121
manner which attempts to reach a resolution of the dispute. Any renegotiation agreement122
reached pursuant to this paragraph shall be in accordance with the requirements specified123
in paragraph (1) of this subsection.124
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(4) Reserved.125
(5) If a new distribution certificate as provided for in this Code section is not received126
by the commissioner, the authority to impose the tax authorized by Code Section 48-8-82127
shall cease, and the tax shall not be levied in the special district after such date unless the128
reimposition of the tax is subsequently authorized pursuant to Code Section 48-8-85.129
When the imposition of the tax is so terminated, the commissioner shall retain the130
proceeds of the tax which were to be distributed to the governing authorities of the county131
and qualified municipalities within the special district until the commissioner receives a132
certificate on behalf of each such governing authority specifying the percentage of the133
proceeds which each such governing authority shall receive. If no such certificate is134
received by the commissioner within 120 days of the date on which the authority to levy135
the tax was terminated, the proceeds shall escheat to the state, and the commissioner shall136
transfer the proceeds to the state's general fund.137
(6) If the commissioner receives a new distribution certificate by the required date, the138
commissioner shall distribute the proceeds of the tax in accordance with the directions139
of the new distribution certificate commencing on January 1 of the year immediately140
following the year in which such certificate was executed by the parties or the judge or141
the first day of the second calendar month following the month such certificate was142
executed by the parties or the judge, whichever is sooner.143
(7) Costs of any conflict resolution under paragraph (3) or (4) of this subsection shall be144
borne proportionately by the affected political subdivisions in accordance with the final145
percentage distributions of the proceeds of the tax as reflected by the new distribution146
certificate.147
(8) Political subdivisions shall be authorized, at their option, to renegotiate distribution148
certificates on a more frequent basis than is otherwise required under this subsection.149
(9) No provision of this subsection shall apply to any county which is authorized to levy150
or which levies a local sales tax, local use tax, or local sales and use tax for educational151
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purposes pursuant to a local constitutional amendment or to any county which is152
authorized to expend all or any portion of the proceeds of any sales tax, use tax, or sales153
and use tax for educational purposes pursuant to a local constitutional amendment."154
SECTION 2.155
Said article is further amended by revising subsection (c) of Code Section 48-8-89.1, relating156
to procedure for certifying additional qualified municipalities, issuance of new distribution157
certificate, and cessation of authority to collect tax ceases upon failure to file new certificate,158
as follows:159
"(c) Except as otherwise provided in this subsection, a distribution certificate required by160
this Code section must be executed by the governing authorities of the county within which161
the special district is located and each qualified municipality located wholly or partially162
within the special district, including the new qualified municipality. Notwithstanding the163
fact that a certificate shall not contain an execution in behalf of the county within which164
the special district is located or one or more qualified municipalities within the special165
district, if the combined total of the populations of all such absent municipalities and the166
absent county's unincorporated population is less than one-half of the aggregate population167
of all qualified municipalities located within the special district, the submitting political168
subdivisions shall, in behalf of the absent municipalities political subdivisions, specify a169
percentage of that portion of the remaining proceeds which each such municipality political170
subdivision shall receive, which percentage shall not be less than that proportion which171
each absent municipality's and any absent county's unincorporated population bears to the172
total population of all qualified municipalities within the special district multiplied by that173
portion of the remaining proceeds which are received by all qualified municipalities 174
political subdivisions within the special district. For the purpose of determining the175
population of the absent municipalities, only that portion of the population of each such176
municipality which is located within the special district shall be computed."177
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SECTION 3.178
Said article is further amended by adding a new subsection to Code Section 48-8-91, relating179
to condition precedent to authority to impose tax following first year of imposition, annual180
adjustment of millage rate for ad valorem taxation of tangible personal property, formula,181
information required on tax bills, and effect on tax bills when millage rate is zero, to read as182
follows:183
"(c) This Code section shall not be applicable to the county whose geographical boundary184
is conterminous with that of the special district for any period of time that such county is185
treated as an absent county under Code Section 48-8-89 or 48-8-89.1."186
SECTION 4.187
All laws and parts of laws in conflict with this Act are repealed.188
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