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