| 1 | 1 | | 25 LC 50 1140 |
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| 2 | 2 | | House Bill 537 |
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| 3 | 3 | | By: Representative Blackmon of the 146 |
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| 4 | 4 | | th |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | To amend Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales |
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| 9 | 9 | | 1 |
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| 10 | 10 | | and use taxes, so as to provide for the maximum amount of local sales and use taxes that may2 |
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| 11 | 11 | | be imposed; to revise provisions related to a special district sales and use tax; to provide for3 |
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| 12 | 12 | | conditions under which such tax may be imposed; to provide for clarifications; to provide for4 |
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| 13 | 13 | | related matters; to repeal conflicting laws; and for other purposes.5 |
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| 14 | 14 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 15 | 15 | | SECTION 1.7 |
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| 16 | 16 | | Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use8 |
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| 17 | 17 | | taxes, is amended in Code Section 48-8-6, relating to prohibition of political subdivisions9 |
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| 18 | 18 | | from imposing various taxes, ceiling on local sales and use taxes, and taxation of mobile10 |
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| 19 | 19 | | telecommunications, by revising subsection (a) as follows:11 |
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| 20 | 20 | | "(a)(1) Except as provided in this subsection, on and after July 1, 2024, there shall not12 |
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| 21 | 21 | | be imposed in any jurisdiction in this state or on any transaction in this state local sales13 |
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| 22 | 22 | | taxes, local use taxes, or local sales and use taxes in excess of 2 percent. For purposes14 |
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| 23 | 23 | | of this |
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| 24 | 24 | | such 2 percent limitation, the taxes affected are any sales tax, use tax, or sales and15 |
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| 25 | 25 | | use tax which is levied in an area consisting of less than the entire state, however16 |
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| 26 | 26 | | H. B. 537 |
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| 27 | 27 | | - 1 - 25 LC 50 1140 |
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| 28 | 28 | | authorized, including such taxes authorized by or pursuant to constitutional amendment, |
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| 29 | 29 | | 17 |
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| 30 | 30 | | and regardless of whether another provision of law purports to the contrary, |
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| 31 | 31 | | except for18 |
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| 32 | 32 | | the following:19 |
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| 33 | 33 | | (A) A 1 percent sales and use tax for educational purposes exempted from such20 |
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| 34 | 34 | | limitation under Article VIII, Section VI, Paragraph IV of the Constitution;21 |
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| 35 | 35 | | (B) Up to 1 percent in aggregate of any of the transportation related sales and use taxes22 |
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| 36 | 36 | | authorized under Articles 5, 5A, and 5B of this chapter and Article 2 of Chapter 9 of23 |
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| 37 | 37 | | Title 32; and24 |
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| 38 | 38 | | (C) Up to 1 percent in aggregate of any tax levied for purposes of a metropolitan area25 |
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| 39 | 39 | | system of public transportation, as authorized by the amendment to the Constitution set26 |
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| 40 | 40 | | out at Georgia Laws, 1964, page 1008; the continuation of such amendment under27 |
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| 41 | 41 | | Article XI, Section I, Paragraph IV(d) of the Constitution; and the laws enacted28 |
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| 42 | 42 | | pursuant to such constitutional amendment; provided, however, that the exception29 |
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| 43 | 43 | | provided for under this paragraph shall only apply in a county in which a tax is levied30 |
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| 44 | 44 | | and collected pursuant to Part 2 of Article 2A of this chapter; and31 |
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| 45 | 45 | | (D) Up to 1 percent in aggregate of any sales and use taxes authorized under Code32 |
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| 46 | 46 | | Section 48-8-96, Code Section 48-8-97, Article 2B of this chapter, Part 3 of Article 333 |
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| 47 | 47 | | of this chapter, and Article 4 of this chapter.34 |
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| 48 | 48 | | (2) Notwithstanding any provision of law to the contrary, any tax that does not comply35 |
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| 49 | 49 | | with the limitations provided in paragraph (1) of this subsection as of July 1, 2025, but36 |
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| 50 | 50 | | was initiated in compliance with the law in effect prior to January 1, 2025, shall be37 |
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| 51 | 51 | | allowed to continue as authorized under laws that existed prior to July 1, 2025; provided,38 |
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| 52 | 52 | | however, that, upon the expiration or termination of any such tax, such tax shall not be39 |
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| 53 | 53 | | renewed and the jurisdiction that levied such tax shall be fully subject to the limitations40 |
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| 54 | 54 | | imposed by this subsection.41 |
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| 55 | 55 | | (3) This subsection shall not limit the imposition of any local excise tax, which is42 |
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| 56 | 56 | | separately authorized under Chapter 13 of this title.43 |
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| 57 | 57 | | H. B. 537 |
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| 58 | 58 | | - 2 - 25 LC 50 1140 |
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| 59 | 59 | | (4) Except as provided in paragraph (2) of this subsection, if If the imposition of any44 |
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| 60 | 60 | | otherwise authorized local sales tax, local use tax, or local sales and use tax would result45 |
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| 61 | 61 | | in a tax rate in excess of that authorized by this subsection, then such otherwise46 |
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| 62 | 62 | | authorized tax shall not be imposed."47 |
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| 63 | 63 | | SECTION 2.48 |
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| 64 | 64 | | Said chapter is further amended by revising Code Section 48-8-109.31, relating to imposition49 |
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| 65 | 65 | | of special sales and use tax within special district and limited time and purpose, as follows:50 |
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| 66 | 66 | | "48-8-109.31.51 |
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| 67 | 67 | | (a) Subject to the requirement of approval by local referendum and the other requirements52 |
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| 68 | 68 | | of this article, to impose there may be imposed within any given special district a special53 |
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| 69 | 69 | | sales and use tax for a limited period of time for the limited purpose of property tax relief.54 |
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| 70 | 70 | | (b) Except as to rate, a tax imposed under this part shall correspond to the tax imposed by55 |
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| 71 | 71 | | Article 1 of this chapter. No item or transaction which is not subject to taxation under56 |
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| 72 | 72 | | Article 1 of this chapter shall be subject to a tax imposed under this article, except that a57 |
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| 73 | 73 | | tax imposed under this article shall apply to sales of motor fuels as prepaid local tax as58 |
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| 74 | 74 | | defined in Code Section 48-8-2 and shall be applicable to the sale of food and food59 |
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| 75 | 75 | | ingredients and alcoholic beverages as provided for in Code Section 48-8-3.60 |
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| 76 | 76 | | (c) The special sales and use tax provided for in subsection (a) of this Code section may61 |
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| 77 | 77 | | be imposed by a special district in 0.05 percent increments, but in no event shall such tax62 |
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| 78 | 78 | | exceed 1 percent in total. The levy of such tax upon sales of motor fuels as defined in63 |
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| 79 | 79 | | Code Section 48-9-2 shall only be imposed on the retail sales price of the motor fuel which64 |
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| 80 | 80 | | is not more than $3.00 per gallon.65 |
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| 81 | 81 | | (d)(1) As a condition precedent to the issuance of the call for the referendum:66 |
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| 82 | 82 | | (A)(1) The governing authority of the county whose geographical boundary is67 |
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| 83 | 83 | | conterminous with that of the special district and the governing authority or authorities68 |
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| 84 | 84 | | of all municipalities that levy an ad valorem tax on property, other than those69 |
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| 85 | 85 | | H. B. 537 |
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| 86 | 86 | | - 3 - 25 LC 50 1140 |
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| 87 | 87 | | municipalities that are excluded from the special district pursuant to paragraph (3)70 |
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| 88 | 88 | | subsection (f) of this subsection Code section, shall have in effect a base year value71 |
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| 89 | 89 | | homestead exemption or adjusted base year value homestead exemption; and72 |
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| 90 | 90 | | (B)(2) The governing authority of the county whose geographical boundary is73 |
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| 91 | 91 | | conterminous with that of the special district and the governing authority or authorities,74 |
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| 92 | 92 | | if any, that represent at least 50 percent of the special district's residents of municipalities75 |
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| 93 | 93 | | that levy an ad valorem tax on property, other than those municipalities that are excluded76 |
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| 94 | 94 | | from the special district pursuant to paragraph (3) of this subsection (f) of this Code77 |
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| 95 | 95 | | section, shall enter into an intergovernmental agreement calling for the tax authorized78 |
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| 96 | 96 | | under this article and specifying the proposed rate of the tax, the proposed maximum79 |
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| 97 | 97 | | period of time that the tax is to be levied, and the proposed distribution of the tax.80 |
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| 98 | 98 | | (e)(1) As used in this subsection, the term 'absent municipality' means any municipality81 |
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| 99 | 99 | | that levies an ad valorem tax on property, other than those municipalities that are82 |
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| 100 | 100 | | excluded from the special district pursuant to subsection (f) of this Code section, and that83 |
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| 101 | 101 | | did not enter into the intergovernmental agreement provided for in paragraph (2) of84 |
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| 102 | 102 | | subsection (d) of this Code section.85 |
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| 103 | 103 | | (2) If the combined total of the populations of all such absent municipalities is less than86 |
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| 104 | 104 | | one-half of the aggregate population of all municipalities located within the special87 |
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| 105 | 105 | | district that levy an ad valorem tax on property, the political subdivisions governing88 |
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| 106 | 106 | | authorities entering into the such intergovernmental agreement shall, on in behalf of such89 |
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| 107 | 107 | | absent municipalities, specify a percentage of that portion of the remaining proceeds90 |
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| 108 | 108 | | which each municipality that levies an ad valorem tax on property shall receive, which91 |
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| 109 | 109 | | percentage shall not be less than that proportion which each such absent municipality's92 |
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| 110 | 110 | | population bears to the total population of all municipalities that levy ad valorem taxes93 |
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| 111 | 111 | | on property within the special district multiplied by that portion of the remaining94 |
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| 112 | 112 | | proceeds which are received by all such municipalities within the special district. No95 |
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| 113 | 113 | | portion of the tax shall be apportioned to counties and or municipalities that do not levy96 |
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| 114 | 114 | | H. B. 537 |
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| 115 | 115 | | - 4 - 25 LC 50 1140 |
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| 116 | 116 | | an ad valorem tax on property or do not have a base year value homestead exemption or97 |
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| 117 | 117 | | adjusted base year value homestead exemption in effect.98 |
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| 118 | 118 | | (f)(3) Subject to the limitation provided for in Code Section 48-8-6, any special district99 |
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| 119 | 119 | | which wholly or partially contains a jurisdiction levying the tax provided for under100 |
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| 120 | 120 | | Article 4 of this chapter is authorized to levy the tax authorized under this article. Such tax101 |
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| 121 | 121 | | authorized under this article may only be levied in the areas of the special district outside102 |
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| 122 | 122 | | of the jurisdiction levying the tax provided for under Article 4 of this chapter. Any103 |
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| 123 | 123 | | jurisdiction levying the tax provided for under Article 4 of this chapter shall not be104 |
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| 124 | 124 | | considered within the procedure necessary to levy the tax under this article and shall not105 |
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| 125 | 125 | | be entitled to any portion of said tax."106 |
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| 126 | 126 | | SECTION 3.107 |
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| 127 | 127 | | Said chapter is further amended in Code Section 48-8-109.32, relating to maximum period108 |
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| 128 | 128 | | of time of the tax, submission to voters to determine imposition of tax, ballot language, and109 |
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| 129 | 129 | | expenses of election, by adding a new subsection to read as follows:110 |
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| 130 | 130 | | "(e) If no intergovernmental agreement is required pursuant to this article, the governing111 |
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| 131 | 131 | | authority of the county or consolidated government whose geographical boundary is112 |
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| 132 | 132 | | conterminous with that of the special district shall adopt a resolution which meets the113 |
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| 133 | 133 | | requirements provided for in this Code section for intergovernmental agreements."114 |
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| 134 | 134 | | SECTION 4.115 |
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| 135 | 135 | | Said chapter is further amended in Code Section 48-8-109.33, relating to timing for116 |
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| 136 | 136 | | imposition of tax following approval and termination of tax, by revising paragraph (2) of117 |
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| 137 | 137 | | subsection (a) and subsection (c) as follows:118 |
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| 138 | 138 | | "(2) With respect to services that are regularly billed on a monthly basis, however, the119 |
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| 139 | 139 | | resolution or ordinance imposing the tax shall become effective and the tax shall apply120 |
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| 140 | 140 | | to the first regular billing period coinciding with or following the effective date specified121 |
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| 141 | 141 | | H. B. 537 |
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| 142 | 142 | | - 5 - 25 LC 50 1140 |
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| 143 | 143 | | in paragraph (1) of this subsection. A certified copy of the ordinance intergovernmental122 |
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| 144 | 144 | | agreement or resolution imposing required to impose the tax authorized by this article123 |
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| 145 | 145 | | shall be forwarded to the commissioner to ensure it is received within five business days124 |
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| 146 | 146 | | after certification of the election results."125 |
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| 147 | 147 | | "(c) For any special district in which a tax authorized by this article is in effect may, while126 |
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| 148 | 148 | | such tax is in effect, the General Assembly may pass a local Act calling for a reimposition127 |
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| 149 | 149 | | of a tax as authorized by this article upon the termination of the tax then in effect, and a128 |
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| 150 | 150 | | referendum may be held for this purpose while the tax is in effect. Proceedings for such129 |
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| 151 | 151 | | reimposition shall be in the same manner as proceedings for the initial imposition of the130 |
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| 152 | 152 | | tax as provided for in Code Section Sections 48-8-109.31 and 48-8-109.32. Such newly131 |
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| 153 | 153 | | authorized tax shall not be imposed until the expiration of the tax then in effect."132 |
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| 154 | 154 | | SECTION 5.133 |
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| 155 | 155 | | All laws and parts of laws in conflict with this Act are repealed.134 |
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| 156 | 156 | | H. B. 537 |
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| 157 | 157 | | - 6 - |
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