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Home My WebLink AboutENERGY EXCISE TAX INTERGOVERNMENTAL AGREEMENT FOR THE ALLOCATION AND DISTRIBUTION OF PROCEED FROM ENERGY EXCISE TAX ENERGY EXCISE TAX INTERGOVERNMENTAL AGREEMENT STATE OF GEORGIA RICHMOND COUNTY INTERGOVERNMENTAL AGREEMENT FOR THE ALLOCATION AND DISTRIBUTION OF PROCEEDS FROM THE ENERGY EXCISE TAX T TE GOVE RNMENTAL AGREEMENT, made and entered into as of the day of /g , 2014, by and between AUGUSTA, GEORGIA (F/KIA AUGUST - RICHMOND COUNTY, GEORGIA), a political subdivision of the State of Georgia, (the "County "), and the CITY OF BLYTHE, and the CITY OF HEPHZIBAH, municipal corporations of the State of Georgia, (the "Participating Municipalities ", individually and collectively). WITNESSETH: WHEREAS, Article IX, Section III, Paragraph I(a) of the Constitution of Georgia (the "Intergovernmental Contracts Clause ") authorizes the County and the Participating Municipalities to contract for joint services, for the provision of services, or for the provision or separate use of facilities or equipment, provided that such contract deals with activities, services, or facilities which the contracting parties are authorized by law to undertake or to provide and are for a period not exceeding 50 years; and WHEREAS, the County and the Participating Municipalities are authorized pursuant to Article 6 of Chapter 13 of Title 48 of O.C.G.A. (the "Energy Excise Tax Act ") to levy and collect an excise tax on the sale or use of energy ( "Energy Excise Tax ") when such sale or use would have constituted a taxable event for purposes of the sales and use tax under Article 1 of Chapter 8 of Title 48 of the O.C.G.A., but for the exemption in O.C.G.A. Section 48- 8 -3.2; and WHEREAS, pursuant to O.C.G.A. Section 48 -13 -113, the County and the Participating Municipalities of the County have met together and conferred to discuss whether or not the Energy Excise Tax should be levied within the special district within Richmond County; and WHEREAS, pursuant to O.C.G.A. Section 48 -13 -114, the County and the Participating Municipalities have determined that an Energy Excise Tax should be levied; and WHEREAS, O.C.G.A. Section 48- 13- 114(a)(1) requires the County and the Participating Municipalities within the County to execute an intergovernmental agreement which provides for the distribution of proceeds in accordance with O.C.G.A. Section 48- 13- 114(c) prior to the adoption of an ordinance by the County levying and imposing the Energy Excise Tax. NOW, THEREFORE, in consideration of the mutual promises and undertakings made in this Agreement, the benefits flowing to the parties hereto and to the citizens of each under this -1- • Agreement, and for good and valuable consideration the County and the Participating Municipalities consent and agree as follows: SECTION 1 REPRESENTATIONS & MUTUAL COVENANTS (A) The County makes the following representations and warranties which may be specifically relied upon by all parties as a basis for entering this Agreement: (1) The County is a political subdivision duly created and organized under the Constitution of Georgia; (2) The governing authority of the County is duly authorized to execute, deliver, and perform this Agreement; and (3) This Agreement is a valid, binding, and enforceable obligation of the County. (B) Each Participating Municipality makes the following representations and warranties which may be specifically relied upon by all parties as a basis for entering this Agreement: (1) Each Participating Municipality is a municipal corporation duly created and organized under the Laws of the State of Georgia; (2) The governing authority of each Participating Municipality is duly authorized to execute, deliver, and perform this Agreement; (3) This Agreement is a valid, binding, and enforceable obligation of each Participating Municipality; and (4) Each Participating Municipality is located wholly or partially within the geographic boundaries of the special district created in the County. (C) It is the intention of the County and each Participating Municipality to comply in all respects the provisions of the Energy Excise Tax Act and all provisions of this Agreement shall be construed in light of the provisions of the Energy Excise Tax Act. (D) The County and each Participating Municipality agree to maintain thorough and accurate records concerning the receipt of proceeds under this Agreement. SECTION 2 CONDITIONS PRECEDENT (A) The obligations of the County and each Participating Municipality pursuant to this Agreement are conditioned upon the adoption of an ordinance by the County and each _2_ Participating Municipality levying and imposing the Energy Excise Tax in accordance with the provisions of the Energy Excise Tax Act. (13) This Agreement is further conditioned upon the collecting of Energy Excise Tax revenues by the County and the transferring of those revenues to the general fund of the County and the general fund of each Participating Municipality. SECTION 3 ADMINISTRATION AND COLLECTION COSTS In accordance with O.C.G.A. Section 48- 13- 114(b), the proceeds of the Energy Excise Tax shall be allocated and distributed by the governing authority of the County at the end of each calendar month, and, of such proceeds, an amount equal to 1 percent of such proceeds collected by the county shall be paid into the general fund of the county to defray the costs of collection and administration. SECTION 4 ALLOCATION & DISTRIBUTION OF REMAINDER PROCEEDS (A) In accordance with O.C.G.A. Section 48 -13 -114 (b) and (c), the remainder of the proceeds following the subtraction of costs of collection and administration under Section 3 of this Agreement shall be allocated and distributed by the governing authority of the County pursuant to this Agreement as provided in this Section. (B) Such remaining proceeds shall be allocated and distributed by the governing authority of the County within 30 days following the end of each calendar month to the general fund of the county and to the general fund of each participating municipality in accordance with the applicable provisions of O.C.G.A. Section 48 -13 -114 (c)(1) or (2) as follows: (1) If two local sales and use taxes are in effect in the special district, an amount equal to one -half of the proceeds shall be distributed to the county general fund and the general fund of each participating municipality located in the county according to the same proportionate share as specified under the distribution provisions of the first local sales and use tax and an amount equal to one -half of the proceeds of the excise tax shall be distributed to the county general fund and the general fund of each participating municipality located in such county according to the salve proportionate share as specified under the distribution provisions of the second local sales and use tax; or (2) If only one such local sales and use tax is in effect in the special district, then the proceeds of the excise tax shall be distributed to the county general fund and the general fund of each participating municipality located in the county according to the same proportionate share as specified under the distribution provisions of the local sales and use tax. -3- (C) Such remaining proceeds shall not be subject to any use or expenditure requirements • provided for under the provisions of law of the local sales and use taxes which are now subject to exemption under O.C.G.A. Section 48 -8 -3.2 and are authorized to be expended in the same manner as would have otherwise required under such local sales and use tax provisions of law or to be expended for any lawful purpose. SECTION 5 COUNTY ORDINANCE ADOPTION In accordance with O.C.G.A. Section 48 -13 -114 (a)(1), following the execution of this Agreement by the County and each Participating Municipality, the County agrees to adopt timely an ordinance levying the Energy Excise Tax pursuant to Article 6 of Chapter 13 of Title 48 of the Official Code of Georgia Annotated. SECTION 6 ENTIRE AGREEMENT This Agreement, including any attachments or exhibits, constitutes all of the understandings and agreements between the County and the Participating Municipalities with respect to all matters relating to the imposition, levy, collection, administration, allocation, and distribution of proceeds of the Energy Excise Tax. Furthermore, this Agreement supersedes all prior agreements, negotiations, and communications of whatever type, whether written or oral, between the parties hereto with respect to such matters. SECTION 7 AMENDMENT OR MODIFICATION 01? AGREEMENT This Agreement shall not be amended or modified except by agreement in writing executed by the governing authorities of the County and the Participating Municipalities. SECTION 8 GOVERNING LAW This Agreement shall be deemed to have been made and shall be construed and enforced in accordance with the Constitution and laws of the State of Georgia. -4- SECTION 9 SEVERABILITY Should any phrase, clause, sentence, or paragraph of this Agreement be held invalid or unconstitutional, the remainder of the Agreement shall remain in full force and effect as if such invalid or unconstitutional provision were not contained in the Agreement unless the elimination of such provision detrimentally reduces the consideration that any party is to receive under this Agreement or materially affects the operation of this Agreement. SECTION 10 COMPLIANCE WITII LAW The County and each Participating Municipality shall comply with all applicable local, state, and federal statutes, ordinances, rule, and regulations. SECTION 11 NO CONSENT TO BREACH No consent or waiver, express or implied, by any party to this Agreement, to any breach of any covenant, condition, or duty of another party shall be construed as a consent to or waiver of any future breach of the same. SECTION 12 COUNTERPARTS This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [THIS SPACE LEFT INTENTIONALLY BLANK] [SIGNATURE LINES ON NEXT PAGE] -5- IN WITNESS WHEREOF, the County and the Participating Municipalities, acting by and through their duly authorized agents, have caused this Agreement to be executed in multiple counterparts under seals on the date indicated herein. AUGUSTA, GEORGIA 41CHMON `� .� .t BY -� -�I t �c • / ''c . : $ Mayor (SEAL) . .;;, : ATTEST: ,224 /. r ;;ro i ; N:::?,,-;,., : ` • ° % / 1 Clerk l � .`� ESQ v / 1Q /��f • ' OA ••• % 7996 � • 0 f •- 0 .•• ••• •o o' air �� 1,0- ORG% �f CITY OF B :.. GEORGIA '-',f,',/' (- BY: rn. -,-- Ma . (SEAL) ATTEST: I , 4 ... _- . • /I. Clerk CITY OF HEPHZIBAH, GEORGIA BY: ,,, Mayor ,r (SEAL) jai MP ATTEST: il �.!�� . t p./ i Clerk 6 _