Ga. Comp. R. & Regs. R. 110-32-1-.02 - Definitions

(1) "Agreement" is defined in O.C.G.A § 48-8-271(1) as an agreement between the Department of Community Affairs and an approved company pursuant to Code Section § 48-8-275. Any Agreement is for content only. Such Agreement does not constitute approval of all items within the application or project plan. Any sales and use tax refunds authorized by an Agreement are subject to the review and recommendation for approval or ineligibility by the DOR.

(2) "Annual Sales and Use Tax" is defined at O.C.G.A § 48-8-271(2) as state and local sales and use taxes generated by sales to the general public at the approved tourism attraction during the calendar year immediately preceding the date of filing the sales and use tax refund claim. The Sales and Use Tax definitions within Chapter 8 of Title 48 of the Official Code of Georgia Annotated along with applicable regulations promulgated by the Department of Revenue may be used to assist decisions.

(3) "Applicant" means the entity (including, without limitation, any public development authority) that has submitted an application to undertake a tourism attraction project and become the Approved Company pursuant to O.C.G.A § 48-8-271(3).

(4) "Complete Application" means a complete written proposal and site plan in a format prescribed by the Department where the Application and Processing Fee has been paid, where the application contains approved local government resolutions, public hearing notices and minutes, all required information, data, criteria and other documentation as described in section 110-32-1-.03 of this regulation. A Complete Application does not include the Independent Consultants Report which shall be provided by the Applicant through an Independent Consultant retained by the Department.

(5) "Approved Tourism Attraction" is defined at O.C.G.A § 48-8-271(5) as a tourism attraction approved by the Commissioner of the Department of Economic Development and Commissioner of the Department of Community Affairs pursuant to O.C.G.A § 48-8-274 and has since opened to the public and become operational as a tourism attraction.

(6) "Approved Company" is defined at O.C.G.A § 48-8-271(3) as any Applicant that is approved, pursuant to O.C.G.A § 48-8-274, by the Commissioner of the Department of Economic Development and Commissioner of the Department of Community Affairs. For each Approved Tourism Attraction Project, there may be only one Approved Company. In addition, this definition shall be used for purposes of implementing O.C.G.A § 48-8-273(f) related to the restriction on an Approved Company's simultaneous receipt of the Sales and Use Tax refund under the Act while receiving other State Tax Incentives as outlined in section 110-32-1-.02(15) of this regulation.

(7) "Approved Costs" is defined at O.C.G.A § 48-8-271(4) as :

a) For new tourism attractions:

i obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, equipping, and installation of a new tourism attraction project;

ii the costs of acquiring real property or rights in real property and any costs incidental thereto;

iii all costs for construction materials and equipment installed at the new tourism attraction project;

iv the cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of the acquisition, construction, equipping, and installation of a new tourism attraction project which is not paid by the vendor, supplier, deliveryman, or contractor or otherwise provided;

v all costs of architectural and engineering services, including but not limited to estimates, plans and specifications, preliminary investigations, and supervision of construction and installation, as well as for the performance of all the duties required by or consequent to the acquisition, construction, equipping, and installation of a new tourism attraction project;

vi all costs required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of a new tourism attraction project;

vii all costs required for the installation of utilities, including but not limited to water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; and off-site construction of utility extensions if paid for by the approved company; and

viii all other costs which the Department of Community Affairs determines are comparable with those described in this subsection; or

b) For existing tourism attractions, any approved costs otherwise specified in subsection (a) of this section; provided, however, that such costs are limited to the expansion only of an existing tourism attraction and not the renovation of an existing tourism attraction.

(8) (Reserved)

(9) "Expansion and not the Renovation of an Existing Tourism Attraction" - This restriction at O.C.G.A § 48-8-271(4)(B) and 6 means that Approved Costs may not include costs attributable to general maintenance, rehabilitation or repair of an existing Tourism Attraction. For an existing Tourism Attraction, Approved Costs attributable for additional equipment, facilities, or real estate to an existing Tourism Attraction for the purpose of increasing its size, scope, or visitor capacity will be considered allowable Expansions.

(10) "Incremental Sales and Use Tax" is defined at O.C.G.A § 48-8-271(7) as state and local sales and use taxes generated by sales to the general public at the approved tourism attraction from the date on which construction of the expansion project is completed through the end of the calendar year immediately preceding the date of filing the incremental sales and use tax claim, less the state and local sales and use taxes that were generated by sales to the general public at the approved tourism attraction during the 12 month period immediately preceding the commencement of construction of the expansion project.

(11) "Incremental Sales and Use Tax Refund" is defined at O.C.G.A § 48-8-271(8) as the amount equal to the lesser of the incremental sales and use tax or 2.5 percent of the total of all approved costs incurred at any time prior to January 1 of the year during which the claim for the incremental sales and use tax is filed. To the extent that local sales and use tax increments are to be included in the project, their inclusion must be legally specified in approved local government resolution(s) that includes language specifying the intended uses align with any authorizing referendum.

(12) "Local Sales and Use Tax" is defined at O.C.G.A § 48-8-271(9) as any sales and use tax, excluding the sales tax for educational purposes levied pursuant to Part 2 of Article 3 of Chapter 8 and Article VIII, Section VI, Paragraph IV of the Constitution, that is levied and imposed in an area consisting of less than the entire state, however authorized. To the extent that local sales and use tax increments are to be included in the project, their inclusion must be legally specified in approved local government resolution(s) that includes language specifying the intended uses align with any authorizing referendum.

(13) "Independent Consultant" means a legal entity or agent that pursuant to O.C.G.A § 48-8-274, works with DCA to provide through a written report, advice, recommendations and analyses of an Applicant's proposal for a proposed Tourism Attraction. To insure independence, the Department's agreement with any consultant may include language that prohibits the consultant from implementing any recommendations in a follow-on contract with the Applicant. Independent Consultants may include without limitation, non-profit corporations and entities attached to Research Universities that provide market research and fiscal impact services.

(14) "Independent Consultants Report" or "Report" means a written analysis specified in § 48-8-274(c). In addition to a general report regarding the Applicant's proposal, the report shall include specific analyses on those items specified within O.C.G.A § 48-8-274(d) to include:

a) a fiscal impact analysis to estimate net new state and local tax impacts of the proposed attraction;

b) an economic impact analysis to estimate new job creation and new income to both the state and the local jurisdiction resulting from the proposed development;

c) estimates on the extent to which the proposed project will compete directly with existing tourism attractions and/or affect existing employment within the state;

d) whether the proposed project will produce sufficient revenues and public demand to operate and be open to the public for a minimum of 100 days per year, including the first year of operation;

e) an analysis of the volume and composition of likely tourists and whether the completed project, for each year following its third year of operation, will attract a minimum of 25 percent of its visitors from nonresidents of this state; and

f) an analysis of any other item or information deemed appropriate by the Department or authorized agent of the State.

(15) "State Tax Incentive" means any tax credit allowed under Chapter 7 of Title 48 and any state sales tax exemption allowed under Chapter 8, Article 1 of Title 48.

(16) "Tourism Attraction" means:

a) a cultural or historical site;

b) a recreation or entertainment facility;

c) a convention hotel and conference center;

d) an automobile race track with other tourism amenities;

e) a golf course facility with other tourism amenities;

f) marinas and water parks with lodging and restaurant facilities designed to attract tourists to the State of Georgia; or

g) a Georgia crafts and products center.

(17) "Non-Qualifying Attraction" pursuant to O.C.G.A § 48-8-271(12) means facilities that are primarily devoted to the retail sale of goods, shopping centers, restaurants, or movie theaters;

a When determining the definition of "primarily" within O.C.G.A § 48-8-271(12), the DCA will consider the geographic area of the Tourism Attraction Project. Should the geographic area of the uses of these non-qualifying attractions exceed 50% of the area as determined by DCA, the facilities will be considered a Non-Qualifying Attraction. For purposes of these calculations, parking facilities will generally be prorated according to the proposed uses of the official site plan.

b Tourism Attractions with less than 25% of their customers from out of state for each year following the third year of operation will be considered a Non-Qualifying Attraction.

(18) "Tourism Attraction Project" or "Project" as defined at O.C.G.A § 48-8-271(13) includes:

a the real estate acquisition, including the acquisition of real estate by a leasehold interest with a minimum term of 30 years as authorized by the Act;

b the construction, and equipping of a Tourism Attraction as authorized by the Act;

c as authorized by the Act, the construction and installation of improvements to facilities necessary or desirable for the acquisition, construction, and installation of a Tourism Attraction, including but not limited to surveys; installation of utilities, which may include water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; and off-site construction of utility extensions if paid for by the approved company.

d as required by the Act, the term "Project" shall not include the renovation of an existing Tourism Attraction.

(19) "Sales and Use Tax Refund" as defined at O.C.G.A § 48-8-271(11) means the amount equal to the lesser of the annual sales and use tax or 2.5 percent of the total of all approved costs incurred at any time prior to January 1 of the year during which the claim for the sales and use tax refund is filed.

(20) (Reserved)

Notes

Ga. Comp. R. & Regs. R. 110-32-1-.02

O.C.G.A. §§ 50-8-3, 50-8-5, 48-8-270, 48-8-271.

Original Rule entitled "Definitions" adopted. F. Oct. 7, 2013; eff. Oct. 27, 2013. Amended: F. Oct. 23, 2017; eff. Feb. 8, 2017, as specified by the Agency.