House Bill 451

Chair's Name: Larry O'Neal

Committee: Ways and Means

House Sponsor: Jeff Lewis

HB 451 adds a new article that creates the Georgia Tourism Development Act.  Under this article, HB 251 defines the terms "agreement," "approved company," "approved costs," "tourism attraction," and "tourism attraction project."   The Bill also requires that approved companies, in consideration of execution of an agreement, receive a sales and use tax refund arising at the tourism attraction.   The Bill further outlines the requirements and duties of the commissioner of economic development in relation to such tourism projects. The conference committee report made the following changes from the Senate version: Added the definition 'Incremental Georgia sales and use tax', modified the definition of "tourism attraction", the word "incremental" was added to "Georgia sales and use tax", requires the department to consult with other agencies when implementing this new policy, and reduces the minimum operating days from 150 to 120.

Chairman O’Neal’s opinion of the original legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

The purpose of HB 451 is the promotion and development of large (costs in excess of $25 million) tourism attractions in Georgia.  The bill provides that companies seeking to develop a tourism attraction project may be granted a sales and use tax refund of up to one fourth of their original investment for state and local sales taxes generated by or arising at the tourism attraction.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

This bill is an economic development tool, as it will entice companies to locate and construct large scale tourist attractions in our state.

THIS LEGISLATION:

• Reduces the Tax Burden on our Citizens:

This bill will encourage the development of tourist attractions and resorts which will increase the property tax base.

House Vote: 164-0

Senate Vote: 45-0