| 1 | 1 | | 25 LC 47 3702 |
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| 2 | 2 | | House Resolution 882 |
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| 3 | 3 | | By: Representative Hatchett of the 155 |
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| 4 | 4 | | th |
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| 5 | 5 | | |
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| 6 | 6 | | A RESOLUTION |
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| 7 | 7 | | Proposing an amendment to the Constitution so as to provide that local school systems can |
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| 8 | 8 | | 1 |
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| 9 | 9 | | levy and collect a sales and use tax for maintenance and operation expenses; to provide that2 |
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| 10 | 10 | | local school systems must offset their millage rates in an amount equal to the amount of tax3 |
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| 11 | 11 | | proceeds collected by such sales and use tax; to provide for related matters; to provide for4 |
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| 12 | 12 | | the submission of this amendment for ratification or rejection; and for other purposes.5 |
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| 13 | 13 | | BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 14 | 14 | | SECTION 1.7 |
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| 15 | 15 | | Article VIII, Section VI of the Constitution is amended by revising Paragraph IV as follows:8 |
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| 16 | 16 | | "Paragraph IV. Sales tax for educational purposes. (a) The board of education of each9 |
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| 17 | 17 | | school district in a county in which no independent school district is located may by10 |
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| 18 | 18 | | resolution and the board of education of each county school district and the board of11 |
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| 19 | 19 | | education of each independent school district located within such county may by12 |
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| 20 | 20 | | concurrent resolutions impose, levy, and collect a sales and use tax for educational13 |
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| 21 | 21 | | purposes of such school districts conditioned upon approval by a majority of the qualified14 |
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| 22 | 22 | | voters residing within the limits of the local taxing jurisdiction voting in a referendum15 |
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| 23 | 23 | | thereon. In addition, when a county school district has one or more independent school16 |
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| 24 | 24 | | districts located within such county, the school district or combination of school districts17 |
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| 25 | 25 | | H. R. 882 |
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| 26 | 26 | | - 1 - 25 LC 47 3702 |
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| 27 | 27 | | that has a majority of the students enrolled within the county, based on the latest full-time |
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| 28 | 28 | | 18 |
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| 29 | 29 | | equivalent count, shall be authorized to call for a referendum to impose, levy, and collect19 |
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| 30 | 30 | | a sales and use tax for educational purposes of such school districts conditioned upon20 |
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| 31 | 31 | | approval by a majority of the qualified voters residing within the limits of the county voting21 |
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| 32 | 32 | | in a referendum thereon. This tax shall be at the rate of 1 percent and shall be imposed for22 |
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| 33 | 33 | | a period of time not to exceed five years, but in all other respects, except as otherwise23 |
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| 34 | 34 | | provided in this Paragraph, shall correspond to and be levied in the same manner as the tax24 |
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| 35 | 35 | | provided for by Article 3 of Chapter 8 of Title 48 of the Official Code of Georgia25 |
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| 36 | 36 | | Annotated, relating to the special county 1 percent sales and use tax, as now or hereafter26 |
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| 37 | 37 | | amended. Proceedings for the reimposition of such tax shall be in the same manner as27 |
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| 38 | 38 | | proceedings for the initial imposition of the tax, but the newly authorized tax shall not be28 |
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| 39 | 39 | | imposed until the expiration of the tax then in effect.29 |
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| 40 | 40 | | (b) The purpose or purposes for which the proceeds of the tax provided for by |
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| 41 | 41 | | 30 |
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| 42 | 42 | | subparagraph (a) of this Paragraph are to be used and may be expended include:31 |
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| 43 | 43 | | (1) Capital outlay projects for educational purposes;32 |
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| 44 | 44 | | (2) The retirement of previously incurred general obligation debt with respect only to33 |
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| 45 | 45 | | capital outlay projects of the school system; provided, however, that the tax authorized34 |
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| 46 | 46 | | under this Paragraph shall only be expended for the purpose authorized under this35 |
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| 47 | 47 | | subparagraph (b)(2) if all ad valorem property taxes levied or scheduled to be levied prior36 |
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| 48 | 48 | | to the maturity of any such then outstanding general obligation debt to be retired by the37 |
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| 49 | 49 | | proceeds of the tax imposed under this Paragraph shall be reduced by a total amount38 |
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| 50 | 50 | | equal to the total amount of proceeds of the tax imposed under this Paragraph to be39 |
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| 51 | 51 | | applied to retire such bonded indebtedness. In the event of failure to comply with the40 |
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| 52 | 52 | | requirements of this subparagraph (b)(2), as certified by the Department of Revenue, no41 |
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| 53 | 53 | | further funds shall be expended under this subparagraph (b)(2) by such county or42 |
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| 54 | 54 | | independent board of education and all such funds shall be maintained in a separate,43 |
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| 55 | 55 | | H. R. 882 |
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| 56 | 56 | | - 2 - 25 LC 47 3702 |
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| 57 | 57 | | restricted account and held solely for the expenditure for future capital outlay projects for |
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| 58 | 58 | | 44 |
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| 59 | 59 | | educational purposes; or45 |
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| 60 | 60 | | (3) A combination of the foregoing.46 |
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| 61 | 61 | | (c) The resolution calling for the imposition of the tax provided for by subparagraph (a) |
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| 62 | 62 | | 47 |
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| 63 | 63 | | of this Paragraph and the ballot question shall each describe:48 |
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| 64 | 64 | | (1) The specific capital outlay projects to be funded, or the specific debt to be retired,49 |
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| 65 | 65 | | or both, if applicable;50 |
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| 66 | 66 | | (2) The maximum cost of such project or projects and, if applicable, the maximum51 |
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| 67 | 67 | | amount of debt to be retired, which cost and amount of debt shall also be the maximum52 |
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| 68 | 68 | | amount of net proceeds to be raised by the tax; and53 |
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| 69 | 69 | | (3) The maximum period of time, to be stated in calendar years or calendar quarters54 |
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| 70 | 70 | | and not to exceed five years.55 |
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| 71 | 71 | | (c.1) The board of education of each school district in a county in which no independent56 |
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| 72 | 72 | | school district is located may by resolution and the board of education of each county57 |
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| 73 | 73 | | school district and the board of education of each independent school district located within58 |
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| 74 | 74 | | such county may by concurrent resolutions impose, levy, and collect a sales and use tax for59 |
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| 75 | 75 | | educational purposes of such school districts conditioned upon approval by a majority of60 |
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| 76 | 76 | | the qualified voters residing within the limits of the local taxing jurisdiction voting in a61 |
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| 77 | 77 | | referendum thereon. In addition, when a county school district has one or more62 |
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| 78 | 78 | | independent school districts located within such county, the school district or combination63 |
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| 79 | 79 | | of school districts that has a majority of the students enrolled within the county, based on64 |
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| 80 | 80 | | the latest full-time equivalent count, shall be authorized to call for a referendum to impose,65 |
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| 81 | 81 | | levy, and collect a sales and use tax for educational purposes of such school districts66 |
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| 82 | 82 | | conditioned upon approval by a majority of the qualified voters residing within the limits67 |
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| 83 | 83 | | of the county voting in a referendum thereon. Such tax shall be at the rate of up to 168 |
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| 84 | 84 | | percent and shall be imposed for a period of time not to exceed five years, but in all other69 |
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| 85 | 85 | | respects, except as otherwise provided in this Paragraph, shall correspond to and be levied70 |
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| 86 | 86 | | H. R. 882 |
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| 87 | 87 | | - 3 - 25 LC 47 3702 |
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| 88 | 88 | | in the same manner as the tax provided for by Article 3 of Chapter 8 of Title 48 of the71 |
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| 89 | 89 | | Official Code of Georgia Annotated, relating to the special county 1 percent sales and use72 |
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| 90 | 90 | | tax, as now or hereafter amended. Proceedings for the reimposition of such tax shall be in73 |
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| 91 | 91 | | the same manner as proceedings for the initial imposition of the tax, but the newly74 |
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| 92 | 92 | | authorized tax shall not be imposed until the expiration of the tax then in effect.75 |
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| 93 | 93 | | (c.2)(1) The purpose for the tax provided for by subparagraph (c.1) of this Paragraph76 |
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| 94 | 94 | | shall be to provide for maintenance and operation costs of the school system. The board77 |
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| 95 | 95 | | of education of each school system shall compute the millage rate necessary to produce78 |
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| 96 | 96 | | revenue from taxation of tangible property in its respective school district which, when79 |
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| 97 | 97 | | combined with other revenues reasonably expected to be received by the school system80 |
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| 98 | 98 | | during the year other than revenues derived from the tax imposed pursuant to81 |
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| 99 | 99 | | subparagraph (c.1) of this Paragraph, would provide revenues sufficient to defray the82 |
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| 100 | 100 | | maintenance and operations expenses of the school system for the year. The millage rate83 |
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| 101 | 101 | | so ascertained shall then be reduced by a millage rate which, if levied against the tangible84 |
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| 102 | 102 | | property within the school district, would produce an amount equal to the distribution of85 |
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| 103 | 103 | | the proceeds of the tax imposed by subparagraph (c.1) of this Paragraph which were86 |
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| 104 | 104 | | received by the school system during the preceding year.87 |
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| 105 | 105 | | (2) A school system may levy and collect both the taxes provided for by subparagraphs88 |
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| 106 | 106 | | (a) and (c.1) of this Paragraph.89 |
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| 107 | 107 | | (d) Nothing in this Paragraph shall prohibit a county and those municipalities located in90 |
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| 108 | 108 | | such county from imposing as additional taxes local sales and use taxes authorized by91 |
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| 109 | 109 | | general law.92 |
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| 110 | 110 | | (e) The tax taxes imposed pursuant to this Paragraph shall not be subject to and shall not93 |
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| 111 | 111 | | count with respect to any general law limitation regarding the maximum amount of local94 |
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| 112 | 112 | | sales and use taxes which may be levied in any jurisdiction in this state.95 |
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| 113 | 113 | | H. R. 882 |
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| 114 | 114 | | - 4 - 25 LC 47 3702 |
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| 115 | 115 | | (f) The tax taxes imposed pursuant to this Paragraph shall not be subject to any sales and96 |
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| 116 | 116 | | use tax exemption with respect to the sale or use of food and beverages which is imposed97 |
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| 117 | 117 | | by law.98 |
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| 118 | 118 | | (g) The net proceeds of the each tax shall be distributed between the county school99 |
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| 119 | 119 | | district and the independent school districts, or portion thereof, located in such county100 |
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| 120 | 120 | | according to an agreement between the county school system and the independent school101 |
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| 121 | 121 | | district or districts or, if no agreement can be reached, according to the ratio the student102 |
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| 122 | 122 | | enrollment in each school district, or portion thereof, bears to the total student enrollment103 |
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| 123 | 123 | | of all school districts in the county or upon such other formula for distribution as may be104 |
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| 124 | 124 | | authorized by local law. For purposes of this subparagraph, student enrollment shall be105 |
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| 125 | 125 | | based on the latest full-time equivalent count prior to the referendum on imposing the tax.106 |
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| 126 | 126 | | (h) Excess proceeds of the tax provided for by subparagraph (a) of this Paragraph which107 |
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| 127 | 127 | | remain following expenditure of proceeds for authorized projects or purposes for education108 |
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| 128 | 128 | | shall be used solely for the purpose of reducing any indebtedness of the school system. In109 |
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| 129 | 129 | | the event there is no indebtedness, such excess proceeds shall be used by such school110 |
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| 130 | 130 | | system for the purpose of reducing its millage rate in an amount equivalent to the amount111 |
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| 131 | 131 | | of such excess proceeds.112 |
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| 132 | 132 | | (i) The tax taxes authorized by this Paragraph may be imposed, levied, and collected as113 |
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| 133 | 133 | | provided in this Paragraph without further action by the General Assembly, but the General114 |
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| 134 | 134 | | Assembly shall be authorized by general law to further define and implement its provisions115 |
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| 135 | 135 | | including, but not limited to, the authority to specify the percentage of net proceeds to be116 |
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| 136 | 136 | | allocated among the projects and purposes for which the tax provided for by subparagraph117 |
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| 137 | 137 | | (a) of this Paragraph was levied.118 |
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| 138 | 138 | | (j)(1) Notwithstanding any provision of any constitutional amendment continued in119 |
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| 139 | 139 | | force and effect pursuant to Article XI, Section I, Paragraph IV(a) and except as120 |
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| 140 | 140 | | otherwise provided in subparagraph (j)(2) of this Paragraph, any political subdivision121 |
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| 141 | 141 | | whose ad valorem taxing powers are restricted pursuant to such a constitutional122 |
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| 142 | 142 | | H. R. 882 |
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| 143 | 143 | | - 5 - 25 LC 47 3702 |
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| 144 | 144 | | amendment may receive the proceeds of the tax taxes authorized under this Paragraph or123 |
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| 145 | 145 | | of any local sales and use tax authorized by general law, or any combination of such124 |
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| 146 | 146 | | taxes, without any corresponding limitation of its ad valorem taxing powers which would125 |
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| 147 | 147 | | otherwise be required under such constitutional amendment.126 |
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| 148 | 148 | | (2) The restriction on and limitation of ad valorem taxing powers described in127 |
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| 149 | 149 | | subparagraph (j)(1) of this Paragraph shall remain applicable with respect to proceeds128 |
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| 150 | 150 | | received from the levy of a local sales and use tax specifically authorized by a129 |
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| 151 | 151 | | constitutional amendment in force and effect pursuant to Article XI, Section I, Paragraph130 |
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| 152 | 152 | | IV(a), as opposed to a local sales and use tax authorized by this Paragraph or by general131 |
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| 153 | 153 | | law."132 |
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| 154 | 154 | | SECTION 2.133 |
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| 155 | 155 | | The above proposed amendment to the Constitution shall be published and submitted as134 |
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| 156 | 156 | | provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the135 |
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| 157 | 157 | | above proposed amendment shall have written or printed thereon the following:136 |
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| 158 | 158 | | "( ) YES137 |
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| 159 | 159 | | ( ) NO 138 |
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| 160 | 160 | | 139 |
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| 161 | 161 | | 140 |
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| 162 | 162 | | 141 |
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| 163 | 163 | | 142 |
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| 164 | 164 | | Shall the Constitution of Georgia be amended so as to authorize local school |
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| 165 | 165 | | systems, subject to approval in a local referendum, to levy and collect a sales |
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| 166 | 166 | | and use tax of up to 1 percent to support the maintenance and operating costs |
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| 167 | 167 | | of such school system, provided that the millage rate levied by such school |
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| 168 | 168 | | system shall be rolled back to reduce property taxes in an amount equal to the |
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| 169 | 169 | | amount collected by such sales and use tax?" |
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| 170 | 170 | | All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes." |
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| 171 | 171 | | 143 |
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| 172 | 172 | | All persons desiring to vote against ratifying the proposed amendment shall vote "No." If144 |
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| 173 | 173 | | such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall145 |
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| 174 | 174 | | become a part of the Constitution of this state.146 |
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| 175 | 175 | | H. R. 882 |
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| 176 | 176 | | - 6 - |
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