SUMMARY:

            This bill would amend Title 48 of the O.C.G.A. to change radically the way local taxes are collected in the state.

REQUIREMENTS:

• The bill would allow any local sales taxes to be collected and distributed by:
• • The state tax commissioner; (who could retain up to 1%)
  • A government collector; or
  • A private collector. (No limits on amount retained; in contract)
• The county, cities and school boards would have to contract for these services, passing individual resolutions or ordinances to do so.
• If there is no contract, the state commissioner is the collector by default.
• The DOR would remain responsible for audits of the collector.
• The DOR would provide dealers for free a “single uniform and centralized method for electronic filing and distribution of returns,” etc. for any tax liability that exceeds $1,000.
• The bill proposes that all records from dealers and taxpayers be disclosed among and between DOR, the government or private collector, the counties, municipalities and local school systems who are the beneficiaries.  Otherwise, the records would be closed without subpoena.

NOTES:

• It is unclear whether each local government entity could contract separately or would have to agree on a common tax collector.
• The disclosure proposal could answer questions that have arisen in the past regarding discrepancies between 1% collections distributed to counties and to school systems.
• If a local entity chose to allow the state commissioner to continue to collect taxes, he/she could retain an amount less than 1% to defray administrative costs, but it seems unlikely that the amount would be less.
• There is no mention of any cost savings to the local governments who might choose to go this route.  However, testimony from representatives of companies who perform this tax collection service indicates that there would be higher collection rates and low costs to collect.