Bill
Bill > HB560
GA HB560
Joint county and municipal sales and use tax (LOST); negotiations for distribution of tax proceeds; revise provisions
summary
Introduced
02/20/2025
02/20/2025
In Committee
02/26/2025
02/26/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
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 exempt from local taxes the sale or use of construction materials used in certain capital outlay projects for educational purposes; to provide that such exemption only applies to projects for local school systems that have in effect certain homestead exemptions from property taxation; to provide for conditions, limitations, and definitions; to provide for payment, collection, and refunds; to provide for an automatic repeal; to provide for the maximum amount of local sales and use taxes that may be imposed; to revise provisions related to a special district sales and use tax; to provide for conditions under which such tax may be imposed; to provide for clarifications; to revise provisions related to the joint county and municipal sales and use tax (LOST); to provide for the distribution of tax proceeds under certain circumstances; to limit the application of certain requirements with respect to absent counties; to provide for related matters; to provide for applicability; to repeal conflicting laws; and for other purposes.
AI Summary
This bill addresses several aspects of sales and use taxes in Georgia, focusing on three main areas: (1) creating a sales tax exemption for construction materials used in certain educational capital outlay projects, (2) revising limitations on local sales and use taxes, and (3) modifying provisions related to the joint county and municipal sales and use tax (LOST). Specifically, the bill exempts construction materials from local sales taxes for school projects that meet certain conditions, such as being approved through a sales tax for educational purposes and having a homestead exemption in place. The bill also adjusts the maximum local sales tax rate to 2 percent, with some exceptions for educational and transportation-related taxes. For the LOST tax, the bill updates the rules for distributing tax proceeds among counties and municipalities, including new provisions for handling "absent" municipalities or counties during tax distribution negotiations. The tax distribution provisions will apply to certificates entered into on or after January 1, 2028. The exemption for construction materials will expire on December 31, 2033, providing a temporary relief mechanism for local school systems. The bill aims to provide more flexibility and clarity in local tax collection and distribution processes while offering temporary tax relief for educational infrastructure projects.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
House Withdrawn, Recommitted (on 04/04/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.ga.gov/legislation/70611 |
| BillText | https://www.legis.ga.gov/api/legislation/document/20252026/233880 |
| BillText | https://www.legis.ga.gov/api/legislation/document/20252026/233270 |
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