HB463 By Representative Beech RFD Local Legislation Rd 1 22-MAR-16

A BILL TO BE ENTITLED AN ACT

Relating to Washington County; authorizing the county commission to levy a sales and use tax and a leasing tax; providing for the collection, distribution, and use of the proceeds of the taxes; prescribing penalties and fixing punishment for violation of this act; and providing for a referendum.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This act applies to Washington County.

Section 2. As used in this act, the following words have the following meanings:

(1) DEPARTMENT. The Department of Revenue.

(2) EQUIPMENT. Machinery or tools employed for agriculture, horticulture, livestock, grazing, lawn and garden, construction, industrial, maritime, mining, or forestry usage, including tractors.

(3) LEASING TAX. A tax paralleling the tax imposed by the state leasing or renting of tangible personal property statutes, including, but not limited to, Title 40, Chapter 12, Article 4, Code of Alabama 1975.

(4) SALES AND USE TAX. A tax paralleling the tax imposed by the state sales and use tax statutes, including, but not limited to, Title 40, Chapter 23, Code of Alabama 1975.

Section 3. (a) Commencing February 1, 2017, the County Commission of Washington County may levy, in addition to all other previously authorized taxes:

(1) A one percent sales and use tax on gross sales; provided, however, the rate shall be one-half percent on the sale or use of any automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer required to be registered or licensed with the judge of probate.

(2) A one percent leasing tax on the gross proceeds derived from the leasing or rental of any equipment or passenger automotive vehicle.

(b) The gross proceeds of all sales which are presently exempt under the state sales and use tax statutes are exempt from the taxes authorized by this act.

Section 4. The taxes levied by this act shall be collected by the state Department of Revenue at the same time and in the same manner as state sales and use taxes and leasing taxes are collected. On or prior to the date the tax is due, each person subject to the tax shall file with the department a report in the form prescribed by the department. The report shall set forth, with respect to all sales and business transactions that are required to be used as a measure of the tax levied, a correct statement of the gross proceeds of all the sales and gross receipts of all business transactions. The report shall also include items of information pertinent to the tax as the department may require. Any person subject to a tax levied by this act may defer reporting credit sales until after their collection, and in the event the person defers reporting them, the person shall thereafter include in each monthly report all credit collections made during the preceding month, and shall pay the tax due at the time of filing the report. All reports filed with the department under this section shall be available for inspection by the county commission, or its designee.

Section 5. Each person engaging or continuing in a business subject to a tax levied by this act shall add to the sales price or leasing price, as applicable, and collect from the purchaser or leasor the amount due by the taxpayer because of the sale or lease. It shall be unlawful for any person subject to a tax levied by this act to fail or refuse to add to the sales price or lease price and to collect from the purchaser or leasor the amount required to be added to the sale or lease price. It shall be unlawful for any person subject to the tax levied by this act to refund or offer to refund all or any part of the amount collected or to absorb or advertise directly or indirectly the absorption or refund of any portion of the tax.

Section 6. The taxes levied by this act shall constitute a debt due Washington County. The tax, together with any interest and penalties, shall constitute and be secured by a lien upon the property of any person from whom the tax is due or who is required to collect the tax. The department shall collect the tax, enforce this act, and have and exercise all rights and remedies that the state or the department has for collection of the state sales and use tax and state leasing tax. The department may employ special counsel as is necessary to enforce collection of a tax levied by this act and to enforce this act. The department shall pay the special counsel any fees it deems necessary and proper from the proceeds of the taxes collected by it for Washington County.

Section 7. All provisions of the state statutes with respect to the payment, assessment, and collection of the state sales and use tax and the state leasing tax, making of reports, keeping and preserving records, penalties for failure to pay the tax, promulgating rules and regulations with respect to the state sales and use tax and the state leasing tax, and the administration and enforcement of the state sales and use tax statutes and the state leasing tax statutes that are not inconsistent with this act shall apply to the taxes levied under this act. The Commissioner of Revenue and the department shall have and exercise the same powers, duties, and obligations with respect to the tax levied under this act that are imposed on the commissioner and department by the state sales and use tax statutes and the state leasing tax. All provisions of the state sales and use tax statutes and state leasing tax statutes that are made applicable by this act to the tax levied under this act, and to the administration and enforcement of this act, are incorporated by reference and made a part of this act as if fully set forth herein.

Section 8. The department shall charge Washington County for collecting any tax levied under this act in an amount or percentage of total collections as may be agreed upon by the commissioner and the Washington County Commission. The charge shall not exceed five percent of the total amount of the tax collected in the county. The charge may be deducted each month from the gross revenues from the tax before certification of the amount of the proceeds due Washington County for that month. The Commissioner of Revenue shall pay into the State Treasury all amounts collected under this act, as the tax is received by the department on or before the first day of each successive month. The commissioner shall certify to the state Comptroller the amount collected and paid into the State Treasury for the benefit of Washington County during the month immediately preceding the certification. The state Comptroller shall issue a warrant each month payable to the County Treasurer of Washington County in an amount equal to the certified amount which shall be paid into the county general fund.

Section 9. The proceeds of any tax levied under this act shall be deposited in a county special revenue fund to be expended only for the maintenance, repair, replacement, or construction of roads and bridges in Washington County.

Section 10. This act shall become operative only if approved by a majority of the qualified electors of Washington County who vote in an election to be held in conjunction with the next regularly scheduled general election held in the county. The notice of the election shall be given by the judge of probate and the election shall be held, conducted, and the results canvassed in the manner as other county elections. The question shall be:

"Do you favor the adoption of Act _____ of the 2016 Regular Session of the Legislature, which authorizes the levy of a sales and use tax in the county, commencing February 1, 2017, earmarked only for maintenance and repair of county roads and bridges in an amount of one-half percent on the sales and use of motor vehicles and one percent on all other sales, as well as a leasing tax in the county in an amount of one percent on the leasing of equipment and automobiles? Yes ( ) No ( )."

The county shall pay any costs and expenses not otherwise reimbursed by a governmental agency which are incidental to the election. If a majority of the votes cast in the election are "Yes," this act shall be operative immediately. If a majority of the votes cast for the question are "No," this act shall be null and void and shall have no further effect. The judge of probate shall certify the results of the election to the Secretary of State.

Section 11. This act shall become effective on February 1, 2017.

Washington County

Counties

County Commissions

Taxation

Sales and Use Tax

Elections

Revenue Department

Lease Tax