This bill would amend Article 3 of Chapter 8 of Title 48 of the O.C.G.A. to provide for comprehensive revision to the county sales and use taxes provisions of the law. The following changes are included:

1. By January 1, 2015 every system levying a 1% tax for educational purposes would have to hold a referendum to amend the existing law to include educational programs and materials;

2. The definition of “Educational programs and materials” contains a list of 16 specific purposes eligible for the expenditures. M&O expenditures would not be allowed

3. Definitions of “building and construction materials,” “dealer,” “local charter school,” and “state charter school,” and “state chartered special school” were added.

4. Creation of special districts that would exist inside local districts;

5. Local BOE’s could hold referenda and impose 1% sales taxes within the special districts for educational purposes;

6. It would add for special district 1% taxes sales of motor fuels, food and food ingredients;

7. Each sales tax return would have to identify the retail establishment where the taxes were collected and how much was collected to ensure that the revenue is distributed according to sites of sale.

8. Local charter schools, state chartered special schools or both could be included for capital outlay purposes;

9. The resolution by the LBOE would have to include:

   1. Maximum time of tax levy, not to exceed 5 years;

   2. Capital outlay projects that would be funded and maximum cost of the projects;

   3. If general obligation debt is used, the principal amount of the debt, the purpose of the debt, the interest rates, and the amount of principal to be paid in each year during the debt; and

   4. The educational programs and materials to be funded from the proceeds and the maximum amount of the net to be spent on such programs and materials, not to exceed 50% of the net proceeds.

10. The addition of educational programs and materials to include:

    1. Security personnel and equipment;

    2. Technology personnel and infrastructure;

    3. Educational software, digital learning modules, and instructional online content;

    4. Arts and music education;

    5. Foreign language education;

    6. Remedial education;

    7. Graduation counseling;

    8. Career counseling;

    9. Summer school;

    10. Medical personnel, supplies and equipment;

    11. Library or media center personnel and supplies;

    12. Laboratory equipment;

    13. Athletic equipment;

    14. Textbooks;

    15. After school programs; or

    16. Any combination of the above.

11. Educational programs and materials could not include M&O or salaries.

12. Each retail establishment collecting and reporting sales taxes would have to be identified and the return would have to specify the amount of sales and the amount of taxes collected to facilitate determination that all taxes are collected AND DISTRIBUTED according to the site of sale.

13. The tax would not apply to building and construction materials if the bid was advertised before the referendum approving levy of the tax.

14. The LBOE would have to maintain a record of each and every purpose for which the tax is used and would be subject to audit in comparison to the resolution.

15. If general debt obligation is used, payments to that debt would have to be taken from the proceeds first, and if proceeds were not sufficient to make the payment, general funds from the LBOE would have to be used.

16. If excess proceeds are not needed to reduce any indebtedness in the special district, then the excess funds would go into the LBOE’s general fund with a corresponding reduction in ad valorem taxes.

17. An annual report would have to be published in the legal organ as a simple, nontechnical report to show the original estimated cost of each purpose, the current estimated cost if different, amounts expended in prior years, and amounts expended in the current year. It would also have to include any corrective action planned if a purpose is underfunded or behind schedule and a statement of any surplus funds which have not be expended for a purpose.

    The remainder of the bill specifies the procedures for the required local referendum, distribution of revenues, and other necessary procedures for levying the tax. None of them change current procedures for the 1% sales tax.