Bill > HB1111

This bill establishes a new local option sales and use tax, capped at 1 percent, specifically dedicated to funding healthcare purposes within each county, which will function as a "special district." This tax, known as the county hospital special purpose local option sales tax, can be authorized by county voters through a referendum and can be used for "capital outlay projects" (major, long-term improvements like buildings or equipment) for hospitals, as well as for operational costs, bad debt, and indigent care. The bill defines "hospital" and "hospital authority" and outlines the process for counties to impose the tax, including intergovernmental agreements with hospital authorities to govern the use of the tax proceeds, specifying the healthcare purposes, duration (up to five or six years if debt is involved), and estimated costs. It also allows for the issuance of general obligation debt, backed by the tax revenue and the county's full faith and credit, to finance these healthcare projects. The tax will be administered and collected by the state, with 1% of the proceeds covering administrative costs, and the remainder distributed to the county according to any intergovernmental agreement or county ordinance. The bill includes provisions for tax credits for sales tax paid in other jurisdictions, prohibits taxation on goods ordered and delivered outside the county, and exempts certain construction materials under specific contract conditions. It also mandates public reporting on how the tax proceeds are spent and allows for modification of healthcare purposes through another referendum if the original purposes become "infeasible" (impracticable or no longer in the best interest of citizens), potentially redirecting funds to debt reduction or ad valorem tax relief.

Budget and Finance

https://www.legis.ga.gov/legislation/72630