Columbus, Georgia

2004 Legislative Session

Week 9

Days 33-34

Week nine of the Georgia Legislative Session served as critical in terms on

both the legislative process and political environment in the state. On

Monday, the judges charged with drawing new redistricting maps unveiled their

work. These new maps caused much confusion as well as uncertainty in both

chambers as incumbents were paired with other incumbents in over 40 districts

throughout the state. Notable is one district in the Columbus area which would

match House Appropriation Chairman Tom Buck, House Rules Chairman Calvin Smyre,

and Reapportionment Chair Carolyn Hugley.

The House passed a FY05 Appropriations bill on Monday. The House version

restored nearly $116 million for book and fee payments by the HOPE scholarship.

This bill now heads to the Senate for review and action. The Supplemental

Budget, however, remains in Conference Committee. Although it appeared close

to agreement Thursday afternoon, both sides were still at a stalemate on Friday

morning. Critical is the fact that state Medicaid program is out of cash and is

now unable to pay related claims. The state was relying on the passage of a

supplemental budget to address the Medicaid shortfall.

In addition, Wednesday served as the 33rd day (cross over day). The House

worked well into the night passing more than 60 bills and resolutions before

the day?s final gavel fell. The Senate worked into the evening passing 40

pieces of legislation. Any bill that did not pass one chamber on or before the

33rd day is considered ?dead?. However, a dead bill could remain significant

as it can be amended on an active bill if it is considered germane.

Tort Reform:

House Speaker Terry Coleman, on Thursday, replaced Rep. Tom Bordeaux

(D-Savannah) as Judiciary Committee Chairman with Rep. Mary Margaret Oliver

(D-Decatur). News reports indicate that the Speaker was frustrated with

Bordeaux over several issues, most significantly Tort Reform. Rep. Oliver is

an attorney from the Metro Atlanta with Emory Hospital in her district.

Although it?s too late for the House Judiciary Committee to vote out any bills

that have been introduced in the House, one possible vehicle for a tort reform

bill would be SB 133, which was passed by the Senate last year and is still in

the Judiciary Committee.

Notable to Columbus Government:

The following bills experienced some degree of movement:

HB 557 related to Judicial Retirement; PASSED HOUSE 3/17/04

HB 709 related to local sales tax; HOUSE AGREED TO SENATE SUB (TO GOV)

HB 810 related to Superior Court Clerks; PASSED HOUSE 3/17/04

HB 1150 related to private towing/trespassing; PASSED HOUSE 3/17/04

HB 1205 related to public water and sewer systems; PASSED HOUSE 3/17/04

HB 1414 related to 1% special county sales tax; PASSED HOUSE 3/17/04

HB 1437 related to sales and local taxes; passed committee 3/12/04

HB 1510 related to tax allocation districts; PASSED HOUSE 3/15/04

HB 1539 related to quality basic education local share; PASSED HOUSE 3/17/04

HB 1567 related to private probation services; PASSED HOUSE 3/17/04

HB 1579 related to subsequent injury trust fund; PASSED HOUSE 3/17/04

HB 1714 related to service delivery; PASSED HOUSE 3/17/04

HB 1720 related to ambulance service reimbursement; PASSED HOUSE 3/17/04

SB 453 related to ad valorem tax for freeport personal property; PASSED SENATE

3/17/04

SB 495 related to preemption GA Minimum Wage Law; PASSED SENATE 3/15/04





We will be sending you an updated tracking sheet on Monday with all legislation

updated.

Please advise us with any questions or concerns.

Thanks, Sheila





HB 709

04 LC 18 3228S

The Senate Finance Committee offered the following substitute to HB 709:

BILL TO BE ENTITLED

AN ACT

To amend Chapter 8 of Title 48 of the Official Code of Georgia Annotated,

relating to sales and use taxes, so as to change certain provisions regarding

limitations with respect to local sales and use taxes; to provide for certain

exemptions; to change certain provisions regarding the joint county and

municipal sales and use tax and provide for an optional rate increase to 2

percent with respect to imposition by certain consolidated governments; to

provide for imposition of such tax at the rate of 2 percent by consolidated

governments; to provide for procedures, conditions, and limitations; to provide

for reduction or termination; to provide for the levy and collection of a court

ordered storm-water and waste-water systems capital outlay or repair projects

sales and use tax; to provide for definitions; to provide for the rate and

manner of imposition of such tax; to provide for applicability to certain

sales; to provide for powers, duties, and authority of municipal governing

authorities with respect to such tax; to provide for powers, duties, and

authority of the state revenue commissioner with respect to such tax; to

provide for collection and administration of such tax; to provide for returns;

to provide for distribution and expenditure of proceeds; to provide for a

method for discontinuation of such tax; to provide for other matters relative

to the foregoing; to provide an effective date; to repeal conflicting laws; and

for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to

sales and use taxes, is amended by striking subsections (b) and (c) of Code

Section 48-8-6, relating to limitations regarding local sales and use taxes,

and inserting in their place the following:

"(b) There shall not be imposed in any jurisdiction in this state or on any

transaction in this state local sales taxes, local use taxes, or local sales

and use taxes in excess of 2 percent. For purposes of this prohibition, the

taxes affected are any sales tax, use tax, or sales and use tax which is levied

in an area consisting of less than the entire state, however authorized,

including such taxes authorized by or pursuant to constitutional amendment,

except that the following taxes shall not count toward or be subject to such 2

percent limitation:

(1) A sales and use tax for educational purposes exempted from such limitation

under Article VIII, Section VI, Paragraph IV of the Constitution;

(2) Any tax levied for purposes of a metropolitan area system of public

transportation, as authorized by the amendment to the Constitution set out at

Georgia Laws, 1964, page 1008; the continuation of such amendment under Article

XI, Section I, Paragraph IV(d) of the Constitution; and the laws enacted

pursuant to such constitutional amendment; provided, however, that the

exception provided for under this paragraph shall only apply in a county in

which a tax is being imposed under subparagraph (a)(1)(D) of Code Section

48-8-111 solely for the purpose or purposes of a water capital outlay project

or projects, a sewer capital outlay project or projects, a water and sewer

capital outlay project or projects, or a combination of such projects and such

exception shall apply only during the period the tax under said subparagraph

(a)(1)(D) is in effect. A sales and use tax levied under Article 4 of this

chapter; and

(3) In the event of a rate increase imposed pursuant to Code Section 48-8-96,

only the amount in excess of the initial 1 percent sales and use tax and in the

event of a newly imposed tax pursuant to Code Section 48-8-96, only the amount

in excess of a 1 percent sales and use tax.

If the imposition of any otherwise authorized local sales tax, local use tax,

or local sales and use tax would result in a tax rate in excess of that

authorized by this subsection, then such otherwise authorized tax may not be

imposed.

(c) Where the exception specified in paragraph (2) of subsection (b) of this

Code section applies, the tax imposed under subparagraph (a)(1)(D) of Code

Section 48-8-111 shall not apply to:

(1) The furnishing for value to the public of any room or rooms, lodgings, or

accommodations which is subject to taxation under Article 3 of Chapter 13 of

this title; and

(2) The sale of motor vehicles.

SECTION 2.

Said chapter is further amended by adding a new Code section immediately

following Code Section 48-8-95, to be designated Code Section 48-8-96, to read

as follows:

"48-8-96.

(a) With respect to any consolidated government created by the consolidation of

a county and one or more municipalities in which consolidated government

homestead property (exclusive of improvements) is valued for purposes of local

ad valorem taxation according to a base year assessed value which does not

change so long as the property is actually occupied by the same owner as a

homestead, the provisions of this Code section shall control over any

conflicting provisions of Article 1 of this chapter or this article.

(b) If the tax authorized by this article is in effect in the special district

containing a consolidated government referred to in subsection (a) of this Code

section, then the rate of tax imposed under this article in such special

district may be increased from 1 percent to 2 percent if such increase is

approved by:

(1) A resolution of the governing authority of the consolidated government in

the same manner as otherwise required for the initial 1 percent sales tax

pursuant to Code Section 48-8-84; and

(2) A referendum conducted in the same manner as otherwise required for the

initial 1 percent sales tax pursuant to Code Section 48-8-85, except that the

ballot shall have written or printed thereon the following:

'( ) YES

( ) NO

Shall the retail sales and use tax levied within the special district

within ___________ County be decreased from 2 percent to 1 percent?'





(e) Such decreased tax rate shall become effective on the first day of the

second calendar quarter following the month in which the commissioner receives

certification of the result of the election.

(f) If the tax authorized by this article is to be newly imposed in the special

district containing a consolidated government referred to in subsection (a) of

this Code section, then such tax may be imposed in such special district at the

rate of 2 percent if such rate is approved by:

(1) A resolution of the governing authority of the consolidated government in

the same manner as otherwise required pursuant to Code Section 48-8-84; and

(2) A referendum conducted in the same manner as otherwise required pursuant to

Code Section 48-8-85, except that the ballot shall have written or printed

thereon the following:

'( ) YES

( ) NO

Shall the retail sales and use tax levied within the special district

within __________ County be terminated?'





(h)(1) In the case of increase from 1 percent to 2 percent, the amount in

excess of the initial 1 percent sales and use tax shall not apply to the

furnishing for value to the public of any room or rooms, lodgings, or

accommodations which are subject to taxation under Article 3 of Chapter 13 of

this title.

(2) In the case of a newly imposed 2 percent sales and use tax under this Code

section, only the amount in excess of a 1 percent sales and use tax shall not

apply to the furnishing for value of any room or rooms, lodgings, or

accommodations which are subject to tax under Article 3 of Chapter 13 of this

title.

(i) In all respects not otherwise provided for in this Code section, the levy

of a tax under this article by a consolidated government referred to in

subsection (a) of this Code section shall be in the same manner as the levy of

the tax by any other county."

SECTION 3.

Said chapter is further amended by adding a new article at the end thereof, to

be designated Article 4, to read as follows:

"ARTICLE 4

48-8-200.

As used in this article, the term:

(1) 'Building and construction materials' means all building and construction

materials, supplies, fixtures, or equipment, any combination of such items, and

any other leased or purchased articles when the materials, supplies, fixtures,

equipment, or articles are to be utilized or consumed during construction or

are to be incorporated into construction work pursuant to a bona fide written

construction contract.

(2) 'Court ordered storm-water and waste-water systems capital outlay or repair

projects' means only those storm-water and waste-water systems capital outlay

or repair projects which are undertaken to comply with a final judgment of a

federal district court or a federal district court consent decree.

(3) 'Municipality' includes, without limitation, any consolidated government

created by the consolidation of a county and one or more municipalities.



48-8-201.

(a) The governing authority of any municipality in this state may, subject to

the requirement of referendum approval and the other requirements of this

article, impose within the municipality a special sales and use tax for a

limited period of time for the purpose of funding court ordered storm-water and

waste-water systems capital outlay or repair projects. Any tax imposed under

this article shall be at the rate of 1 percent.

(b) Except as otherwise provided in this article, a tax imposed under this

article shall correspond to the tax imposed by Article 1 of this chapter. No

item or transaction which is not subject to taxation under Article 1 of this

chapter shall be subject to a tax imposed under this article, except that a tax

imposed under this article shall apply to sales of motor fuels as that term is

defined by Code Section 48-9-2 and shall be applicable to the sale of food and

beverages as provided for in division (57)(D)(i) of Code Section 48-8-3.

(c) A tax imposed under this article shall not apply to the sale of motor

vehicles.



48-8-202.

(a) A municipal governing authority voting to impose the tax authorized by this

article shall notify the municipal election superintendent by forwarding to the

superintendent a copy of the resolution or ordinance of the municipal governing

authority calling for the imposition of the tax. Such ordinance or resolution

shall specify the following:

(1) The maximum period of time of the tax, to be stated in calendar years or

calendar quarters and not to exceed five years;

(2) The maximum cost of the project or projects which will be funded from the

proceeds of the tax, which maximum cost shall also be the maximum amount of net

proceeds to be raised by the tax; and

(3) If general obligation debt is to be issued in conjunction with the

imposition of the tax, as authorized by this article, the principal amount of

the debt to be issued, the interest rate or rates or the maximum interest rate

or rates which such debt is to bear, and the amount of principal to be paid in

each year during the life of the debt.

(b) Upon receipt of the resolution or ordinance, the municipal election

superintendent shall issue the call for an election for the purpose of

submitting the question of the imposition of the tax to the voters of the

municipality. The municipal election superintendent shall issue the call and

shall conduct the election on a date and in the manner authorized under Code

Section 21-2-540. The municipal election superintendent shall cause the date

and purpose of the election to be published once a week for four weeks

immediately preceding the date of the election in the legal organ of the county

in which the majority of the municipal population resides or in a newspaper

having general circulation in the municipality at least equal to that of the

legal organ. If general obligation debt is to be issued in conjunction with the

imposition of the tax, the notice published by the municipal election

superintendent shall also include, in such form as may be specified by the

municipal governing authority, the principal amount of the debt, the rate or

rates of interest or the maximum rate or rates of interest the debt will bear,

and the amount of principal to be paid in each year during the life of the

debt; and such publication of notice by the municipal election superintendent

shall take the place of the notice otherwise required by Code Section 36-80-11

or by subsection (b) of Code Section 36-82-1, which notice shall not be

required.

(c)(1) The ballot shall have written or printed thereon the following:

?FPRIVATE'( ) YES



( ) NO



Shall a special 1 percent sales and use tax be imposed in _________ for

a period of time not to exceed _____________ and for the raising of not more

than $_____ for the purpose of funding court ordered storm-water and

waste-water capital outlay or repair projects?'



(2) If debt is to be issued, the ballot shall also have written or printed

thereon, following the language specified by paragraph (1) of this subsection,

the following:

'If imposition of the tax is approved by the voters, such vote shall also

constitute approval of the issuance of general obligation debt of ___________

in the principal amount of $___________ for the above purpose.'

(d) All persons desiring to vote in favor of imposing the tax shall vote 'Yes'

and all persons opposed to levying the tax shall vote 'No.' If more than

one-half of the votes cast are in favor of imposing the tax, then the tax shall

be imposed as provided in this article; otherwise, the tax shall not be imposed

and the question of imposing the tax shall not again be submitted to the voters

of the municipality until after 12 months immediately following the month in

which the election was held; provided, however, that if an election date

authorized under Code Section 21-2-540 occurs during the twelfth month

immediately following the month in which such election was held, the question

of imposing the tax may be submitted to the voters of the municipality on such

date. The municipal election superintendent shall hold and conduct the election

under the same rules and regulations as govern special elections. The municipal

election superintendent shall canvass the returns, declare the result of the

election, and certify the result to the Secretary of State and to the

commissioner. The expense of the election shall be paid from municipal funds.

(e)(1) If the proposal includes the authority to issue general obligation debt

and if more than one-half of the votes cast are in favor of the proposal, then

the authority to issue such debt in accordance with Article IX, Section V,

Paragraph I of the Constitution is given to the proper officers of the

municipality; otherwise such debt shall not be issued. If the authority to

issue such debt is so approved by the voters, then such debt may be issued

without further approval by the voters.

(2) If the issuance of general obligation debt is included and approved as

provided in this Code section, then the governing authority of the municipality

may incur such debt either through the issuance and validation of general

obligation bonds or through the execution of a promissory note or notes or

other instrument or instruments. If such debt is incurred through the issuance

of general obligation bonds, such bonds and their issuance and validation shall

be subject to Articles 1 and 2 of Chapter 82 of Title 36 except as specifically

provided otherwise in this article. If such debt is incurred through the

execution of a promissory note or notes or other instrument or instruments, no

validation proceedings shall be necessary and such debt shall be subject to

Code Sections 36-80-10 through 36-80-14 except as specifically provided

otherwise in this article. In either event, such general obligation debt shall

be payable first from the separate account in which are placed the proceeds

received by the municipality from the tax authorized by this article. Such

general obligation debt shall, however, constitute a pledge of the full faith,

credit, and taxing power of the municipality; and any liability on such debt

which is not satisfied from the proceeds of the tax authorized by this article

shall be satisfied from the general funds of the municipality.



48-8-203.

(a)(1) If the imposition of the tax is approved by referendum, the tax shall be

imposed on the first day of the next succeeding calendar quarter which begins

more than 80 days after the date of the election at which the tax was approved

by the voters.

(2) With respect to services which are regularly billed on a monthly basis,

however, the resolution or ordinance imposing the tax shall become effective

with respect to and the tax shall apply to the first regular billing period

coinciding with or following the effective date specified in paragraph (1) of

this subsection. A certified copy of the ordinance or resolution imposing the

tax shall be forwarded to the commissioner so that it will be received within

five business days after certification of the election results.

(b) The tax shall cease to be imposed on the earliest of the following dates:

(1) If the resolution or ordinance calling for the imposition of the tax

provided for the issuance of general obligation debt and such debt is the

subject of validation proceedings, as of the end of the first calendar quarter

ending more than 80 days after the date on which a court of competent

jurisdiction enters a final order denying validation of such debt;

(2) On the final day of the maximum period of time specified for the imposition

of the tax; or

(3) As of the end of the calendar quarter during which the commissioner

determines that the tax will have raised revenues sufficient to provide to the

municipality net proceeds equal to or greater than the amount specified as the

maximum amount of net proceeds to be raised by the tax.

(c)(1) No municipality shall impose at any time more than a single 1 percent

tax under this article.

(2) A municipality in which a tax authorized by this article is in effect may,

while the tax is in effect, adopt a resolution or ordinance calling for the

reimposition of a tax as authorized by this article upon the termination of the

tax then in effect; and a referendum may be held for this purpose while the tax

is in effect. Proceedings for the reimposition of a tax shall be in the same

manner as proceedings for the initial imposition of the tax, but the newly

authorized tax shall not be imposed until the expiration of the tax then in

effect; provided, however, that in the event of emergency conditions under

which a municipality is unable to conduct a referendum so as to continue the

tax then in effect without interruption, the commissioner may, if feasible

administratively, waive the limitations of subsection (a) of this Code section

to the minimum extent necessary so as to permit the reimposition of a tax, if

otherwise approved as required under this Code section, without interruption,

upon the expiration of the tax then in effect.

(3) Following the expiration of a tax under this article, a municipality may

initiate proceedings for the reimposition of a tax under this article in the

same manner as provided in this article for the initial imposition of such tax.



48-8-204.

A tax levied pursuant to this article shall be exclusively administered and

collected by the commissioner for the use and benefit of the municipality

imposing the tax. Such administration and collection shall be accomplished in

the same manner and subject to the same applicable provisions, procedures, and

penalties provided in Article 1 of this chapter; provided, however, that all

moneys collected from each taxpayer by the commissioner shall be applied first

to such taxpayer's liability for taxes owed the state; and provided, further,

that the commissioner may rely upon a representation by or in behalf of the

municipality or the Secretary of State that such a tax has been validly

imposed, and the commissioner and the commissioner's agents shall not be liable

to any person for collecting any such tax which was not validly imposed.

Dealers shall be allowed a percentage of the amount of the tax due and

accounted for and shall be reimbursed in the form of a deduction in submitting,

reporting, and paying the amount due if such amount is not delinquent at the

time of payment. The deduction shall be at the rate and subject to the

requirements specified under subsections (b) through (f) of Code Section

48-8-50.



48-8-205.

Each sales and use tax return remitting sales and use taxes collected under

this article shall separately identify the location of each retail

establishment at which any of the sales and use taxes remitted were collected

and shall specify the amount of sales and the amount of taxes collected at each

establishment for the period covered by the return in order to facilitate the

determination by the commissioner that all sales and use taxes imposed by this

article are collected and distributed according to situs of sale.



48-8-206.

(a) The proceeds of the tax collected by the commissioner in each municipality

under this article shall be disbursed as soon as practicable after collection

as follows:

(1) One percent of the amount collected shall be paid into the general fund of

the state treasury in order to defray the costs of administration; and

(2) Except as otherwise provided in subsection (b) of this Code section, the

remaining proceeds of the tax shall be distributed to the governing authority

of the municipality imposing the tax.

(b) In the event that a municipality levying a tax under this article has

incurred indebtedness from the Georgia Environmental Facilities Authority, and

in the event that such a municipality has not made a payment when due within

the meaning of Code Section 50-23-20 to the Georgia Environmental Facilities

Authority, then the Georgia Environmental Facilities Authority shall notify the

director of the Office of Treasury and Fiscal Services and the state revenue

commissioner of such default. The commissioner shall withhold only sufficient

proceeds of the taxes collected under this article to cure or correct the

default under the indebtedness to the Georgia Environmental Facilities

Authority and shall transmit such proceeds to the director of the Office of

Treasury and Fiscal Services.



48-8-207.

Where a local sales or use tax has been paid with respect to tangible personal

property by the purchaser either in another local tax jurisdiction within the

state or in a tax jurisdiction outside the state, the tax may be credited

against the tax authorized to be imposed by this article upon the same

property. If the amount of sales or use tax so paid is less than the amount of

the use tax due under this article, the purchaser shall pay an amount equal to

the difference between the amount paid in the other tax jurisdiction and the

amount due under this article. The commissioner may require such proof of

payment in another local tax jurisdiction as the commissioner deems necessary

and proper. No credit shall be granted, however, against the tax imposed under

this article for tax paid in another jurisdiction if the tax paid in such other

jurisdiction is used to obtain a credit against any other local sales and use

tax levied in the municipality or in a special district which includes the

municipality; and taxes so paid in another jurisdiction shall be credited first

against the tax levied under Article 3 of this chapter, if applicable, then

against the tax levied under Article 2 of this chapter, if applicable, and then

against the tax levied under this article.



48-8-208.

No tax provided for in this article shall be imposed upon the sale of tangible

personal property which is ordered by and delivered to the purchaser at a point

outside the geographical area of the municipality in which the tax is imposed

regardless of the point at which title passes, if the delivery is made by the

seller's vehicle, United States mail, or common carrier or by private or

contract carrier licensed by the Federal Highway Administration or the Georgia

Public Service Commission.

48-8-209.

No tax provided for in this article shall be imposed upon the sale or use of

building and construction materials when the contract pursuant to which the

materials are purchased or used was advertised for bid prior to the voters

approval of the levy of the tax and the contract was entered into as a result

of a bid actually submitted in response to the advertisement prior to approval

of the levy of the tax.



48-8-210.

The commissioner shall have the power and authority to promulgate such rules

and regulations as shall be necessary for the effective and efficient

administration and enforcement of the collection of the tax authorized to be

imposed by this article.

48-8-211.

The tax authorized by this article shall be in addition to any other local

sales and use tax. The imposition of any other local sales and use tax within a

county, municipality, or special district shall not affect the authority of a

municipality to impose the tax authorized by this article and the imposition of

the tax authorized by this article shall not affect the imposition of any

otherwise authorized local sales and use tax within the county, municipality,

or special district.



48-8-212.

(a) The proceeds received from the tax authorized by this article shall be used

by the municipality exclusively for:

(1) Court ordered storm-water and waste-water systems capital outlay or repair

projects;

(2) The repayment of general obligation indebtedness incurred in conjunction

with the imposition of the tax authorized by this article; or

(3) The repayment of any loans made to such municipality with respect to such

capital outlay or repair projects. Such proceeds shall be kept in a separate

account from other funds of the municipality and shall not in any manner be

commingled with other funds of the municipality prior to expenditure.

(b) The governing authority of the municipality shall maintain a record of each

and every capital outlay or repair project for which the proceeds of the tax

are used. In each annual audit a schedule shall be included which shows for

each ongoing capital outlay or repair project the original estimated cost, the

current estimated cost if it is not the original estimated cost, amounts

expended in prior years, and amounts expended in the current year. The auditor

shall verify and test expenditures sufficient to provide assurances that the

schedule is fairly presented in relation to the financial statements. The

auditor's report on the financial statements shall include an opinion, or

disclaimer of opinion, as to whether the schedule is presented fairly in all

material respects in relation to the financial statements taken as a whole.

(c) No general obligation debt shall be issued in conjunction with the

imposition of the tax unless the municipal governing authority determines that,

and if the debt is to be validated it is demonstrated in the validation

proceedings that, during each year in which any payment of principal or

interest on the debt comes due the municipality will receive from the tax

authorized by this article net proceeds sufficient to fully satisfy such

liability. General obligation debt issued under this article shall be payable

first from the separate account in which are placed the proceeds received by

the municipality from the tax authorized by this article. Such debt, however,

shall constitute a pledge of the full faith, credit, and taxing power of the

municipality; and any liability on said debt which is not satisfied from the

proceeds of the tax authorized by this article shall be satisfied from the

general funds of the municipality.

(d) The resolution or ordinance calling for imposition of the tax authorized by

this article may specify that all of the proceeds of the tax will be used for

payment of general obligation debt issued in conjunction with the imposition of

the tax. If the resolution or ordinance so provides, then such proceeds shall

be used solely for such purpose except as provided in subsection (f) of this

Code section.

(e) The resolution or ordinance calling for the imposition of the tax

authorized by this article may specify that a part of the proceeds of the tax

will be used for payment of general obligation debt issued in conjunction with

the imposition of the tax. In such a case no part of the net proceeds from the

tax received in any year shall be used for other capital outlay or repair

purposes until all debt service requirements of the general obligation debt for

that year have first been satisfied from the account in which the proceeds of

the tax are placed.

(f)(1)(A) If the proceeds of the tax are specified to be used solely for the

purpose of payment of general obligation debt issued in conjunction with the

imposition of the tax, then any net proceeds of the tax in excess of the amount

required for final payment of such debt shall be subject to and applied as

provided in paragraph (2) of this subsection.

(B) If the municipality receives from the tax net proceeds in excess of the

maximum cost of the project or projects calling for the imposition of the tax

or in excess of the actual cost of such project or projects, then such excess

proceeds shall be subject to and applied as provided in paragraph (2) of this

subsection.

(C) If the tax is terminated under paragraph (1) of subsection (b) of Code

Section 48-8-203 by reason of denial of validation of debt, then all net

proceeds received by the municipality from the tax shall be excess proceeds

subject to paragraph (2) of this subsection.

(2) Excess proceeds subject to this subsection shall be used solely for the

purpose of reducing any indebtedness of the municipality other than

indebtedness incurred pursuant to this article. If there is no such other

indebtedness or, if the excess proceeds exceed the amount of any such other

indebtedness, then the excess proceeds shall next be paid into the general fund

of the municipality, it being the intent that any funds so paid into the

general fund of the municipality be used for the purpose of reducing ad valorem

taxes."

SECTION 4.

This Act shall become effective upon its approval by the Governor or upon its

becoming law without such approval.

SECTION 5.

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