§ 102-243. Excise tax rate; phase-in.

(a)

Such excise tax shall be levied and collected by the governing authority of the county pursuant to O.C.G.A. §§ 48-13-112 and 48-13-114 and as provided in this section.

(b)

Except as otherwise provided in this section, the rate of such excise tax shall be phased in over a four-year period as follows:

(1)

For the period commencing January 1, 2013, and concluding at the last moment of December 31, 2013, such excise tax shall be at a rate equivalent to 25 percent of the total amount of local sales and use tax in effect in such special district that would be collected on the sale, use, storage, or consumption of energy but for the exemption in O.C.G.A. § 48-8-3.2;

(2)

For the period commencing January 1, 2014, and concluding at the last moment of December 31, 2014, such excise tax shall be at a rate equivalent to 50 percent of the total amount of local sales and use tax in effect in such special district that would be collected on the sale, use, storage, or consumption of energy but for the exemption in O.C.G.A. § 48-8-3.2;

(3)

For the period commencing January 1, 2015, and concluding at the last moment of December 31, 2015, such excise tax shall be at a rate equivalent to 75 percent of the total amount of local sales and use tax in effect in such special district that would be collected on the sale, use, storage, or consumption of energy but for the exemption in O.C.G.A. § 48-8-3.2; and

(4)

On or after January 1, 2016, such excise tax shall be at a rate equivalent to 100 percent of the total amount of local sales and use tax in effect in such special district that would be collected on the sale, use, storage, or consumption of energy but for the exemption in O.C.G.A. § 48-8-3.2.

(c)

In accordance with O.C.G.A. § 48-8-3.2 (c)(4), if a project of regional significance under O.C.G.A. § 48-8-3(92) is started in the special district, it shall not be subject to the phase-in period contained in paragraphs (1), (2), and (3) of subsection (b) of this section, and the sale, use, storage, or consumption of energy in connection therewith shall be subject to the rate specified in paragraph (4) of subsection (b) of this section notwithstanding the January 1, 2016 limitation in that paragraph (4).

(d)

(1)

Following such initial imposition during the phase-in time period, on or after January 1, 2016, the rate of the excise tax levied and collected by the governing authority of the county shall be directed by O.C.G.A, § 48-13-112(d). Such rate shall be controlled by the maximum amount of local sales and use tax in effect in the special district, but in no event more than two percent (except in the case where the municipal option water and sewer tax is levied where that rate will be three percent. See state law reference below.).

(2)

In the event the total rate of local sales and use taxes in effect in the special district decreases from two percent to one percent, the rate of the excise tax under this article shall likewise be reduced at the same time such local sales and use tax rate reduction becomes effective.

(3)

In the event the total rate of local sales and use taxes in effect in the special district increases from one percent to two percent, the rate of the excise tax under this article shall likewise be increased at the same time such local sales and use tax rate increase becomes effective.

(Ord. No. 2013-01, § 3, 2-11-13)

State law reference

Under O.C.G.A. § 48-13-112(a)(3), if the tax is imposed before January 1, 2016, the rate will gradually phase in as the rate of local sales and use tax phases out. Under O.C.G.A. § 48-13-114, after the actual rate imposed follows the rate of local sales and use tax (defined in O.C.G.A. § 48-13-110(3). It will be either one percent or two percent, with the exception of a city which levies municipal option water and sewer tax, in which case the rate would be three percent.