Bill Text: GA HB117 | 2011-2012 | Regular Session | Comm Sub

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Bill Title: Withholding tax; person listed on closing statement subject to requirements; provide

Spectrum: Bipartisan Bill

Status: (Passed) 2011-05-13 - Effective Date [HB117 Detail]

Download: Georgia-2011-HB117-Comm_Sub.html

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11 LC 18 0028TS

COMMITTEE OF CONFERENCE SUBSTITUTE TO HB 117

A BILL TO BE ENTITLED
AN ACT

To amend Titles 31 and 48 of the Official Code of Georgia Annotated, relating, respectively, to health and revenue and taxation, so as to provide for state sales and use taxation of certain health care services for a limited period of time; to provide for definitions, exclusions, procedures, conditions, and limitations; to provide for accrual of such taxes based upon certain circumstances; to establish a segregated account within the Indigent Care Trust Fund; to provide for the crediting of certain proceeds and investment thereof; to provide for conditional appropriations; to provide for automatic repeal of certain provisions of this Act; to provide that the person listed on the closing statement as the seller shall be treated as the seller and shall be subject to the withholding and documentation requirements; to provide for related matters; to provide for effective dates; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I
SECTION 1-1.

Title 31 of the Official Code of Georgia Annotated, relating to health, is amended by adding a new Code section to read as follows:

"31-8-152.1.

(a) There is established within the trust fund a segregated account for revenues raised through the sales and use tax on charges defined in subparagraph (H) of paragraph (31) of Code Section 48-8-2. An amount equal to the amount of state sales and use tax proceeds on such charges which have been collected and remitted to the state revenue commissioner shall be credited by the state revenue commissioner on a monthly basis to the segregated account within the trust fund and shall be invested in the same manner as authorized for investing other moneys in the state treasury.

(b) The department shall make application to the federal Department of Health and Human Services for state plan amendments for the 2012 fiscal year that will improve the delivery of long-term care through the use of enhanced case management services and establishing a new base year for nursing home facility cost reports.

(c) Notwithstanding any other provision of this chapter, the General Assembly is authorized to appropriate as state funds to the department for use in any fiscal year all revenues dedicated and deposited into the segregated account. Such appropriations shall be authorized to be made for the sole purpose of obtaining federal financial participation for medical assistance payments for long-term care services, including nursing home services, that are referred by a SOURCE Case Management Provider, as defined in paragraph (34.1) of Code Section 48-8-2. Any appropriation from the segregated account for any purpose other than such medical assistance payments shall be void.

(d) Revenues appropriated to the department pursuant to this Code section shall be used to match federal funds that are available for the purpose for which such trust funds have been appropriated.

(e) Appropriations from the segregated account to the department shall not lapse to the general fund at the end of the fiscal year.

(f) This Code section shall stand automatically repealed on the date the state treasurer certifies in writing to the commissioner that federal matching funds have ceased to be available or on June 30, 2014, whichever date is earlier.

(g) The department is authorized to adopt rules and regulations to implement this Code section."

SECTION 1-2.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended in Code Section 48-8-2, relating to definitions applicable to sales and use tax, by revising paragraph (31) by deleting "or" at the end of subparagraph (F), by replacing the period with "; or" at the end of subparagraph (G), and by adding a new subparagraph to read as follows:

"(H)(i) Charges made for services by a person which are the subject of a referral from a SOURCE Case Management Provider.

(ii) This subparagraph shall stand automatically repealed on the date the state treasurer certifies in writing to the commissioner that federal matching funds have ceased to be available or on June 30, 2014, whichever date is earlier."

SECTION 1-3.

Said title is further amended in said Code section by adding two new paragraphs to read as follows:

"(30.1) 'Referral from a SOURCE Case Management Provider' means the authorization of, arrangement for, or coordination of long-term care services, including nursing home services by a SOURCE Case Management Provider. This subparagraph shall stand automatically repealed on the date the state treasurer certifies in writing to the commissioner that federal matching funds have ceased to be available or on June 30, 2014, whichever date is earlier.

"(34.1) 'SOURCE Case Management Provider' means an entity that has successfully completed the Georgia Medicaid Enhanced Case Management Application and enrollment process, including any related required training, and has entered into a contract with the Department of Community Health, Division of Medical Assistance to provide enhanced case management services. This subparagraph shall stand automatically repealed on the date the state treasurer certifies in writing to the commissioner that federal matching funds have ceased to be available or on June 30, 2014, whichever date is earlier."

SECTION 1-4.

Said title is further amended in subsection (f) of Code Section 48-8-30, relating to imposition of tax, rates, and collection, by adding a new paragraph to read as follows:

"(3)(A) Assessments of the state sales and use tax under this article on the charges described in subparagraph (H) of paragraph (31) of Code Section 48-8-2 shall accrue commencing on July 1, 2011; provided, however, that collection of such state sales and use tax upon such charges shall not commence until the commissioner of community health has provided written notification to the state revenue commissioner that until such time as the Centers for Medicare and Medicaid Services of the United States Department of Health and Human Services has approved the state plan amendments described in subsection (b) of Code Section 31-8-152.1. In the event that such approval is not obtained or is reversed, or that the federal financial participation is not available with respect to revenues derived from such state sales and use tax, all accrued amounts of such tax shall lapse, and the charges described in subparagraph (H) of paragraph (31) of Code Section 48-8-2 shall not constitute sales for purposes of this article.

(B)(i) The charges for services described in subparagraph (H) of paragraph (31) of Code Section 48-8-2 shall be subject to state sales and use tax only and shall in no event be subject to any local sales and use tax.

(ii) For purposes of this subparagraph, the term 'local sales and use tax' means any sales tax, use tax, or local sales and use tax which is levied and imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the 'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; or by or pursuant to any article of this chapter other than Article 1 of this chapter.

(C) This paragraph shall stand automatically repealed on the date the state treasurer certifies in writing to the commissioner that federal matching funds have ceased to be available or on June 30, 2014, which"ever date is earlier."

PART II
SECTION 2-1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended in subsection (b) of Code Section 48-7-128, relating to withholding tax on sale or transfer of real property and associated tangible personal property by nonresidents, by adding a new paragraph to read as follows:

"(3) The person or entity identified as the seller on the settlement statement shall be considered the seller for all purposes regarding this Code section, including, but not limited to, executing and delivering to the buyer or transferee all forms or other documents incident to determining the appropriate amount of tax to be withheld or the appropriate amount exempt from withholding requirements."

PART III
SECTION 3-1.

(a) This part and Part II of this Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.
(b) Part I of this Act shall become effective on July 1, 2011.

SECTION 3-2.

All laws and parts of laws in conflict with this Act are repealed.