§ 48-8-157 — Use of tax proceeds; requirements for general obligation debt

Georgia § 48-8-157

• Jurisdiction: Georgia
• Title: 48

Text

(a) The proceeds received from the tax authorized by this part shall be used by the qualified consolidated government exclusively for: (1) Coliseum capital outlay projects and project costs; (2) The repayment of general obligation indebtedness incurred in conjunction with the imposition of the tax authorized by this part; or (3) The repayment of any loans made to such qualified consolidated government with respect to such coliseum capital outlay projects and project costs. Such proceeds shall be kept in a separate account from other funds of the qualified consolidated government and shall not in any manner be commingled with other funds of the qualified consolidated government prior to expenditure. (b) The governing authority of the qualified consolidated government shall maintain a record of every project cost for which the proceeds of the tax are used. In each annual audit a schedule shall be included that shows for each ongoing such project the original estimated cost, the current estimated cost if it is not the original estimated cost, amounts expended in prior years, and amounts expended in the current year. The auditor shall verify and test expenditures sufficient to provide assurances that the schedule is fairly presented in relation to the financial statements. The auditor's report on the financial statements shall include an opinion, or disclaimer of opinion, as to whether the schedule is presented fairly in all material respects in relation to the financial statements taken as a whole. (c) No general obligation debt shall be issued in conjunction with the imposition of the tax unless the qualified consolidated government governing authority determines that, and if the debt is to be validated it is demonstrated in the validation proceedings that, during each year in which any payment of principal or interest on the debt comes due the qualified consolidated government shall receive from the tax authorized by this part net proceeds sufficient to fully satisfy such liability. General obligation debt issued under this part shall be payable first from the separate account in which are placed the proceeds received by the qualified consolidated government from the tax authorized by this part. Such debt, however, shall constitute a pledge of the full faith, credit, and taxing power of the qualified consolidated government; and any liability on said debt which is not satisfied from the proceeds of the tax authorized by this part shall be satisfied from the general funds of the qualified consolidated government. (d) The resolution or ordinance calling for imposition of the tax authorized by this part may specify that all proceeds from the tax shall be used for payment of general obligation debt issued in conjunction with the imposition of the tax. If the resolution or ordinance so provides, then such proceeds shall be used solely for such purpose except as provided in subsection (e) of this Code section. In such a case no part of the net proceeds from the tax received in any year shall be used for other project costs until all debt service requirements of the general obligation debt for that year have first been satisfied from the account in which the proceeds of the tax are placed. (e) (1) (A) If the proceeds of the tax are specified to be used solely for the purpose of payment of general obligation debt issued in conjunction with the imposition of the tax, then any net proceeds of the tax in excess of the amount required for final payment of such debt shall be subject to and applied as provided in paragraph (2) of this subsection. (B) If the qualified consolidated government receives from the tax net proceeds in excess of the maximum cost of the project or projects calling for the imposition of the tax, or the actual cost of such project or projects, then such excess proceeds shall be subject to and applied as provided in paragraph (2) of this subsection. (C) If the tax is terminated under paragraph (1) of subsection (b) of Code Section 48-8-148 by reason of denial of validation of debt, then all net proceeds received by the qualified consolidated government from the tax shall be excess proceeds subject to paragraph (2) of this subsection. (2) Excess proceeds subject to this subsection shall be used solely for the purpose of reducing any indebtedness of the qualified consolidated government other than indebtedness incurred pursuant to this part. If there is no such other indebtedness or, if the excess proceeds exceed the amount of any such other indebtedness, then the excess proceeds shall next be paid into the general fund of the qualified consolidated government, it being the intent that any funds so paid into the general fund of the qualified consolidated government be used for the purpose of reducing ad valorem taxes.

Legislative History

Added by 2023 Ga. Laws 22,§ 2, eff. 4/24/2023.