HB 44 - Income tax; gradual reduction and abolishment
Georgia House of Representatives - 1995/1996 Sessions
HB 44 - Income tax; gradual reduction and abolishment
1. Sanders 107th 2. Walker 87th 3. Kaye 37th
4. Maddox 108th 5. Brown 130th 6. Hembree 98th
House Comm: W&M / Senate Comm: /
House Vote: Yeas Nays Senate Vote: Yeas Nays
----------------------------------------
House Action Senate
----------------------------------------
1/10/95 Read 1st Time
1/11/95 Read 2nd Time
----------------------------------------
Code Sections amended: 48-7-20, 48-7-99, 48-7-1, 48-7-2, 48-7-3, 48-7-4, 48-7-5,
48-7-6, 48-7-7, 48-7-8, 48-7-9, 48-7-10, 48-7-11, 48-7-12, 48-7-13, 48-7-14,
48-7-15, 48-7-16, 48-7-17, 48-7-18, 48-7-19, 48-7-20, 48-7-21, 48-7-22, 48-7-23,
48-7-24, 48-7-25, 48-7-26, 48-7-27, 48-7-28, 48-7-29, 48-7-30, 48-7-31, 48-7-32,
48-7-33, 48-7-34, 48-7-35, 48-7-36, 48-7-37, 48-7-38, 48-7-39, 48-7-40, 48-7-41,
2-7-154, 16-12-55, 17-15-8, 19-11-9, 36-62-5.1, 37-9-2, 39-7-2, 37-9-7,
44-13-1.1, 44-13-20, 48-2-56, 48-6-93, 48-11-14, 49-1-9
HB 44 LC 10 0949
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Title 48 of the Official Code of Georgia Annotated,
1- 2 relating to revenue and taxation, so as to provide for a
1- 3 gradual reduction in the income tax rate for individuals
1- 4 over a period of years; to abolish the individual income tax
1- 5 and the income tax on fiduciaries and partnerships,
1- 6 effective for tax years beginning on and after January 1,
1- 7 2001; to provide for the collection of individual income
1- 8 taxes for taxable year 2000; to repeal the provisions
1- 9 relating to a local income tax; to repeal provisions
1-10 relating to setoff debt collection; to repeal laws relating
1-11 to the individual income tax; to repeal certain provisions
1-12 relating to nongame wildlife conservation and wildlife
1-13 habitat acquisition programs; to repeal certain provisions
1-14 relating to liens for taxes; to repeal certain provisions
1-15 relating to the Home Delivered Meals, Transportation
1-16 Services for the Elderly, and Preschool Children with
1-17 Special Needs Fund; to conform other provisions of law; to
1-18 amend other provisions of the Code to change certain
1-19 references; to change certain Georgia income tax references
1-20 to federal income tax references; to provide effective
1-21 dates; to repeal conflicting laws; and for other purposes.
1-22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
PART I
SECTION 1.
1-23 Title 48 of the Official Code of Georgia Annotated, relating
1-24 to revenue and taxation, is amended by striking in its
1-25 entirety paragraph (1) of subsection (b) of Code Section
1-26 48-7-20, relating to the income tax rate for individuals,
1-27 and inserting in lieu thereof a new paragraph (1) to read as
1-28 follows:
1-29 "(b)(1) The tax imposed pursuant to subsection (a) of
1-30 this Code section shall be computed in accordance with
1-31 the following tables:
1-32 (A) For taxable year 1995:
-1- (Index)
LC 10 0949
2- 1 SINGLE PERSON
2- 2 If Georgia Taxable
2- 3 Net Income Is: The Tax Is:
2- 4 Not over $750.00 ............. 1%
2- 5 Over $750.00 but not over
2- 6 $2,250.00 .................... $7.50 plus 2% of amount
over $750.00
2- 7 Over $2,250.00 but not
2- 8 over $3,750.00 ............... $37.50 plus 3% of
amount over $2,250.00
2- 9 Over $3,750.00 but not
2-10 over $5,250.00 ............... $82.50 plus 4% of
amount over $3,750.00
2-11 Over $5,250.00 but not
2-12 over $7,000.00 ............... $142.50 plus 5% of
amount over $5,250.00
2-13 Over $7,000.00 ............... $230.00 plus 6% of
amount over $7,000.00
2-14 MARRIED PERSON FILING A SEPARATE RETURN
2-15 If Georgia Taxable
2-16 Net Income Is: The Tax Is:
2-17 Not over $500.00 ............. 1%
2-18 Over $500.00 but not over
2-19 $1,500.00 .................... $5.00 plus 2% of amount
over $500.00
2-20 Over $1,500.00 but not
2-21 over $2,500.00 ............... $25.00 plus 3% of
amount over $1,500.00
2-22 Over $2,500.00 but not
2-23 over $3,500.00 ............... $55.00 plus 4% of
amount over $2,500.00
2-24 Over $3,500.00 but not
2-25 over $5,000.00 ............... $95.00 plus 5% of
amount over $3,500.00
2-26 Over $5,000.00 ............... $170.00 plus 6% of
amount over $5,000.00
-2- (Index)
LC 10 0949
3- 1 HEAD OF HOUSEHOLD AND MARRIED PERSONS
3- 2 FILING A JOINT RETURN
3- 3 If Georgia Taxable
3- 4 Net Income Is: The Tax Is:
3- 5 Not over $1,000.00 .......... 1%
3- 6 Over $1,000.00 but not
3- 7 over $3,000.00 .............. $10.00 plus 2% of amount
over $1,000.00
3- 8 Over $3,000.00 but not
3- 9 over $5,000.00 .............. $50.00 plus 3% of amount
over $3,000.00
3-10 Over $5,000.00 but not
3-11 over $7,000.00 .............. $110.00 plus 4% of
amount over $5,000.00
3-12 Over $7,000.00 but not
3-13 over $10,000.00 ............. $190.00 plus 5% of
amount over $7,000.00
3-14 Over $10,000.00 ............. $340.00 plus 6% of
amount over $10,000.00
3-15 (B) For taxable year 1996:
3-16 SINGLE PERSON
3-17 If Georgia Taxable
3-18 Net Income Is: The Tax Is:
3-19 Not over $750.00 ............. 1%
3-20 Over $750.00 but not over
3-21 $2,250.00 .................... $7.50 plus 2% of amount
over $750.00
3-22 Over $2,250.00 but not
3-23 over $3,750.00 ............... $37.50 plus 3% of
amount over $2,250.00
3-24 Over $3,750.00 but not
3-25 over $5,250.00 ............... $82.50 plus 4% of
amount over $3,750.00
3-26 Over $5,250.00 ............... $142.50 plus 5% of
amount over $5,250.00
-3- (Index)
LC 10 0949
4- 1 MARRIED PERSON FILING A SEPARATE RETURN
4- 2 If Georgia Taxable
4- 3 Net Income Is: The Tax Is:
4- 4 Not over $500.00 ............. 1%
4- 5 Over $500.00 but not over
4- 6 $1,500.00 .................... $5.00 plus 2% of amount
over $500.00
4- 7 Over $1,500.00 but not
4- 8 over $2,500.00 ............... $25.00 plus 3% of
amount over $1,500.00
4- 9 Over $2,500.00 but not
4-10 over $3,500.00 ............... $55.00 plus 4% of
amount over $2,500.00
4-11 Over $3,500.00 ............... $95.00 plus 5% of
amount over $3,500.00
4-12 HEAD OF HOUSEHOLD AND MARRIED PERSONS
4-13 FILING A JOINT RETURN
4-14 If Georgia Taxable
4-15 Net Income Is: The Tax Is:
4-16 Not over $1,000.00 .......... 1%
4-17 Over $1,000.00 but not
4-18 over $3,000.00 .............. $10.00 plus 2% of amount
over $1,000.00
4-19 Over $3,000.00 but not
4-20 over $5,000.00 .............. $50.00 plus 3% of amount
over $3,000.00
4-21 Over $5,000.00 but not
4-22 over $7,000.00 .............. $110.00 plus 4% of
amount over $5,000.00
4-23 Over $7,000.00 .............. $190.00 plus 5% of
amount over $7,000.00
4-24 (C) For taxable year 1997:
4-25 SINGLE PERSON
4-26 If Georgia Taxable
4-27 Net Income Is: The Tax Is:
4-28 Not over $750.00 ............. 1%
-4- (Index)
LC 10 0949
5- 1 Over $750.00 but not over
5- 2 $2,250.00 .................... $7.50 plus 2% of amount
over $750.00
5- 3 Over $2,250.00 but not
5- 4 over $3,750.00 ............... $37.50 plus 3% of
amount over $2,250.00
5- 5 Over $3,750.00 ............... $82.50 plus 4% of
amount over $3,750.00
5- 6 MARRIED PERSON FILING A SEPARATE RETURN
5- 7 If Georgia Taxable
5- 8 Net Income Is: The Tax Is:
5- 9 Not over $500.00 ............. 1%
5-10 Over $500.00 but not over
5-11 $1,500.00 .................... $5.00 plus 2% of amount
over $500.00
5-12 Over $1,500.00 but not
5-13 over $2,500.00 ............... $25.00 plus 3% of
amount over $1,500.00
5-14 Over $2,500.00 ............... $55.00 plus 4% of
amount over $2,500.00
5-15 HEAD OF HOUSEHOLD AND MARRIED PERSONS
5-16 FILING A JOINT RETURN
5-17 If Georgia Taxable
5-18 Net Income Is: The Tax Is:
5-19 Not over $1,000.00 .......... 1%
5-20 Over $1,000.00 but not
5-21 over $3,000.00 .............. $10.00 plus 2% of amount
over $1,000.00
5-22 Over $3,000.00 but not
5-23 over $5,000.00 .............. $50.00 plus 3% of amount
over $3,000.00
5-24 Over $5,000.00 .............. $110.00 plus 4% of
amount over $5,000.00
5-25 (D) For taxable year 1998:
-5- (Index)
LC 10 0949
6- 1 SINGLE PERSON
6- 2 If Georgia Taxable
6- 3 Net Income Is: The Tax Is:
6- 4 Not over $750.00 ............. 1%
6- 5 Over $750.00 but not over
6- 6 $2,250.00 .................... $7.50 plus 2% of amount
over $750.00
6- 7 Over $2,250.00 ............... $37.50 plus 3% of
amount over $2,250.00
6- 8 MARRIED PERSON FILING A SEPARATE RETURN
6- 9 If Georgia Taxable
6-10 Net Income Is: The Tax Is:
6-11 Not over $500.00 ............. 1%
6-12 Over $500.00 but not over
6-13 $1,500.00 .................... $5.00 plus 2% of amount
over $500.00
6-14 Over $1,500.00 ............... $25.00 plus 3% of
amount over $1,500.00
6-15 HEAD OF HOUSEHOLD AND MARRIED PERSONS
6-16 FILING A JOINT RETURN
6-17 If Georgia Taxable
6-18 Net Income Is: The Tax Is:
6-19 Not over $1,000.00 .......... 1%
6-20 Over $1,000.00 but not
6-21 over $3,000.00 .............. $10.00 plus 2% of amount
over $1,000.00
6-22 Over $3,000.00 .............. $50.00 plus 3% of amount
over $3,000.00
6-23 (E) For taxable year 1999:
6-24 SINGLE PERSON
6-25 If Georgia Taxable
6-26 Net Income Is: The Tax Is:
6-27 Not over $750.00 ............. 1%
6-28 Over $750.00 ................. $7.50 plus 2% of amount
over $750.00
-6- (Index)
LC 10 0949
7- 1 MARRIED PERSON FILING A SEPARATE RETURN
7- 2 If Georgia Taxable
7- 3 Net Income Is: The Tax Is:
7- 4 Not over $500.00 ............. 1%
7- 5 Over $500.00 ................. $5.00 plus 2% of amount
over $500.00
7- 6 HEAD OF HOUSEHOLD AND MARRIED PERSONS
7- 7 FILING A JOINT RETURN
7- 8 If Georgia Taxable
7- 9 Net Income Is: The Tax Is:
7-10 Not over $1,000.00 .......... 1%
7-11 Over $1,000.00 .............. $10.00 plus 2% of amount
over $1,000.00
7-12 (F) For taxable year 2000:
7-13 SINGLE PERSON
7-14 If Georgia Taxable
7-15 Net Income Is: The Tax Is:
7-16 Not over $750.00 ............. 0%
7-17 Over $750.00 ................. 1% of amount over
$750.00
7-18 MARRIED PERSON FILING A SEPARATE RETURN
7-19 If Georgia Taxable
7-20 Net Income Is: The Tax Is:
7-21 Not over $500.00 ............. 0%
7-22 Over $500.00 ................. 1% of amount over
$500.00
7-23 HEAD OF HOUSEHOLD AND MARRIED PERSONS
7-24 FILING A JOINT RETURN
7-25 If Georgia Taxable
7-26 Net Income Is: The Tax Is:
7-27 Not over $1,000.00 ........... 0%
7-28 Over $1,000.00 ............... 1% of amount over
$1,000.00
-7- (Index)
LC 10 0949
8- 1 (G) For taxable year 2001 and thereafter, there shall
8- 2 not be an individual income tax and no individual
8- 3 returns are required."
SECTION 2.
8- 4 Said title is further amended by adding at the beginning of
8- 5 Article 5, relating to current income tax payment, a new
8- 6 Code Section 48-7-99 to read as follows:
8- 7 "48-7-99. (Index)
8- 8 The provisions of this article relating to the withholding
8- 9 of taxes or estimated taxes applicable to individuals
8-10 shall not apply to taxable years beginning on or after
8-11 January 1, 2001."
PART II
SECTION 3.
8-12 Said title is further amended by striking in its entirety
8-13 Chapter 7, relating to income taxes, and inserting in lieu
8-14 thereof a new Chapter 7 to read as follows:
"CHAPTER 7
8-15 48-7-1. (Index)
8-16 Effective January 1, 2001, there shall not be an
8-17 individual income tax or income tax on fiduciaries or
8-18 partnerships in this state for taxable years beginning on
8-19 or after January 1, 2001.
8-20 48-7-2. (Index)
8-21 As used in this chapter, the term:
8-22 (1) 'Corporation' includes, but is not limited to, all
8-23 associations, professional associations organized
8-24 pursuant to Chapter 10 of Title 14, and insurance
8-25 companies.
8-26 (2) 'Deficiency' means the amount by which the tax
8-27 imposed by this chapter or any prior law exceeds the
8-28 amount shown as the tax due by the corporation upon its
8-29 return or, if no amount is shown as the tax due by a
8-30 corporation upon its return or if no return is made by
8-31 the corporation, the amount determined by the
8-32 commissioner to be the correct amount of the tax.
8-33 (3) 'Fiscal year' means an accounting period of 12
8-34 months ending on the last day of any month other than
-8- (Index)
LC 10 0949
9- 1 December. In the case of any taxpayer who has elected a
9- 2 year consisting of 52 to 53 weeks for federal income tax
9- 3 purposes, the term means the period so elected.
9- 4 (4) 'Income tax day' means December 31 of each calendar
9- 5 year.
9- 6 (5) 'Paid,' for the purpose of the deductions under this
9- 7 chapter, means 'paid or accrued' or 'paid or incurred.'
9- 8 The terms 'paid or accrued,' 'paid or incurred,' and
9- 9 'incurred' shall be construed according to the method of
9-10 accounting upon the basis of which the net income is
9-11 computed under this chapter.
9-12 (6) 'Received,' for the purpose of the computation of
9-13 the net income under this chapter, means 'received or
9-14 accrued.' The term 'received or accrued' shall be
9-15 construed according to the method of accounting upon the
9-16 basis of which the net income is computed under this
9-17 chapter.
9-18 (7) 'Taxable year' means the calendar year or the fiscal
9-19 year ending during the calendar year upon the basis of
9-20 which the net income is computed under this chapter.
9-21 (8) 'Taxpayer' means a corporation.
9-22 48-7-3. (Index)
9-23 (a) It shall be unlawful for any person who is required
9-24 under this chapter to pay any tax, make any return, keep
9-25 any records, supply any information, or exhibit any books
9-26 or records for the purpose of computation, assessment, or
9-27 collection of any tax imposed by this chapter to fail to:
9-28 (1) Pay the tax;
9-29 (2) Make the return;
9-30 (3) Keep the records; or
9-31 (4) When requested to do so by the commissioner:
9-32 (A) Supply the information; or
9-33 (B) Exhibit the books or records.
9-34 (b) In addition to other penalties provided by law, any
9-35 person who violates subsection (a) of this Code section
9-36 shall be guilty of a misdemeanor.
9-37 48-7-4. (Index)
-9- (Index)
LC 10 0949
10- 1 (a) With respect to any matter arising under this chapter,
10- 2 it shall be unlawful for any person willfully to aid or
10- 3 assist in, or procure, counsel, or advise the preparation
10- 4 or presentation of, a false or fraudulent return,
10- 5 affidavit, claim, or document, whether or not the falsity
10- 6 or fraud is with the knowledge or consent of the person
10- 7 authorized or required to present the return, affidavit,
10- 8 claim, or document.
10- 9 (b) Any person who violates subsection (a) of this Code
10-10 section shall be guilty of a misdemeanor and, upon
10-11 conviction thereof, shall be fined not more than $1,000.00
10-12 or imprisoned for not more than six months, or both, and
10-13 shall be required to pay the costs of prosecution.
10-14 48-7-5. (Index)
10-15 (a) It shall be unlawful for any person, with intent to
10-16 evade the income tax imposed by this chapter, willfully to
10-17 advise the preparation or presentation of a return with
10-18 intentional disregard of rules and regulations of the
10-19 commissioner.
10-20 (b) Any person who violates subsection (a) of this Code
10-21 section shall be guilty of a misdemeanor and, upon
10-22 conviction thereof, shall be fined not less than $100.00
10-23 nor more than $500.00 or imprisoned for not more than six
10-24 months, or both.
10-25 48-7-6. (Index)
10-26 Any person who willfully evades or defeats or willfully
10-27 attempts to evade or defeat, in any manner, any income
10-28 tax, penalty, interest, or other amount in excess of
10-29 $3,000.00 imposed under this chapter, including but not
10-30 limited to failure to file a return or report, shall, in
10-31 addition to any other criminal or civil penalties provided
10-32 by law, be guilty of a felony and, upon conviction
10-33 thereof, shall be fined not more than $500,000.00 in the
10-34 case of a corporation or imprisoned not less than one nor
10-35 more than five years, or both. Conduct proscribed by this
10-36 Code section shall be subject to punishment under this
10-37 Code section notwithstanding the applicability to such
10-38 conduct of any other provision of law.
10-39 48-7-7. (Index)
10-40 (a) Every domestic corporation and every foreign
10-41 corporation shall pay annually an income tax equivalent to
10-42 6 percent of its Georgia taxable net income. Georgia
-10- (Index)
LC 10 0949
11- 1 taxable net income of a corporation shall be the
11- 2 corporation's taxable income from property owned or from
11- 3 business done in this state. A corporation's taxable
11- 4 income from property owned or from business done in this
11- 5 state shall consist of the corporation's taxable income as
11- 6 defined in the Internal Revenue Code of 1986, with the
11- 7 adjustments provided for in subsection (b) of this Code
11- 8 section and allocated and apportioned as provided in Code
11- 9 Section 48-7-9.
11-10 (b)(1)(A) When interest income is derived from
11-11 obligations of any state or political subdivision
11-12 except this state and political subdivisions of this
11-13 state, the interest income shall be added to taxable
11-14 income to the extent that the interest income is not
11-15 included in gross income for federal income tax
11-16 purposes. Interest or dividends on obligations of any
11-17 authority, commission, instrumentality, territory, or
11-18 possession of the United States which by the laws of
11-19 the United States are exempt from federal income tax
11-20 but not from state income tax shall also be added to
11-21 taxable income.
11-22 (B) There shall be subtracted from taxable income
11-23 interest or dividends on obligations of the United
11-24 States and its territories and possessions or of any
11-25 authority, commission, or instrumentality of the
11-26 United States to the extent such interest or dividends
11-27 are includable in gross income for federal income tax
11-28 purposes but exempt from state income taxes under the
11-29 laws of the United States. There shall also be
11-30 subtracted from taxable income any income derived from
11-31 the authorized activities of a domestic international
11-32 banking facility operating pursuant to the provisions
11-33 of Article 5A of Chapter 1 of Title 7, the 'Domestic
11-34 International Banking Facility Act,' and any income
11-35 arising from the conduct of a banking business with
11-36 persons or entities located outside the United States,
11-37 its territories, or possessions. Any amount
11-38 subtracted pursuant to this subparagraph shall be
11-39 reduced by any expenses directly attributable to the
11-40 production of the interest or dividend income.
11-41 (2) There shall be added to taxable income any taxes on,
11-42 or measured by, net income or net profits paid or
11-43 accrued within the taxable year imposed by the authority
11-44 of the United States or any foreign country, by any
-11- (Index)
LC 10 0949
12- 1 state except the State of Georgia, or by any territory,
12- 2 county, school district, municipality, or other tax
12- 3 subdivision of any state, territory, or foreign country
12- 4 to the extent such taxes are deducted in determining
12- 5 federal taxable income.
12- 6 (3) No portion of any deductions or losses which
12- 7 occurred in a year in which the taxpayer was not subject
12- 8 to taxation in this state including, but not limited to,
12- 9 net operating losses may be deducted in any tax year.
12-10 When the federal adjusted gross income or net income of
12-11 a corporation includes such deductions or losses, an
12-12 adjustment deleting them shall be made under rules
12-13 established by the commissioner. The provisions of this
12-14 subsection shall not prohibit the carry-over of any
12-15 deductions or losses including, but not limited to, net
12-16 operating losses of any taxpayer which were incurred in
12-17 a year or years in which the taxpayer was subject to
12-18 methods of taxation in this state other than the
12-19 corporate income tax.
12-20 (4) Income, losses, and deductions previously used in
12-21 computing Georgia taxable income shall not again be used
12-22 in computing Georgia taxable income. The commissioner
12-23 shall provide for needed adjustments by regulation.
12-24 (5) When on the sale or exchange of real or tangible
12-25 personal property located in this state gain or loss is
12-26 not recognized because the taxpayer receives or
12-27 purchases similar property, the nonrecognition shall be
12-28 allowed only when the property is replaced with property
12-29 located in this state.
12-30 (6) This chapter shall not be construed to repeal any
12-31 tax exemptions contained in other laws of this state not
12-32 referred to in this chapter. Those exemptions and the
12-33 exemptions provided for by federal law and treaty shall
12-34 be deducted on forms provided by the commissioner.
12-35 (7) All elections made by corporate taxpayers under the
12-36 Internal Revenue Code of 1954 or the Internal Revenue
12-37 Code of 1986 shall also apply under this chapter except
12-38 elections involving consolidated corporate returns and
12-39 Subchapter 'S' elections which shall be treated as
12-40 follows:
12-41 (A)(i) If two or more corporations file federal
12-42 income tax returns on a consolidated basis and all
12-43 of the corporations derive all of their income from
-12- (Index)
LC 10 0949
13- 1 sources within this state, the corporations must
13- 2 file consolidated returns for Georgia income tax
13- 3 purposes. Affiliated corporations which file a
13- 4 consolidated federal income tax return but which
13- 5 derive income from sources outside this state must
13- 6 file separate income tax returns with this state
13- 7 unless they have prior approval or have been
13- 8 requested to file a consolidated return by the
13- 9 department.
13-10 (ii) No depository financial institution, as defined
13-11 in Code Section 48-6-20, shall be deprived of the
13-12 benefit of any exemption, deduction, or credit
13-13 authorized by this title as a consequence of its
13-14 election to file otherwise lawful consolidated
13-15 returns with its parent organization or any
13-16 corporate subsidiaries with respect to any state or
13-17 local tax levied against such depository financial
13-18 institution as a result of this title;
13-19 (B) Subchapter 'S' elections apply only if all
13-20 stockholders are subject to tax in this state on their
13-21 portion of the corporate income. If all nonresident
13-22 stockholders pay the Georgia income tax on their
13-23 portion of the corporate income, the election shall be
13-24 allowed.
13-25 (8) There shall be subtracted from taxable income
13-26 dividends received by:
13-27 (A) A corporation from sources outside the United
13-28 States as defined in the Internal Revenue Code of
13-29 1986. For purposes of this subparagraph, dividends
13-30 received by a corporation from sources outside of the
13-31 United States shall include amounts treated as a
13-32 dividend and income deemed to have been received under
13-33 provisions of the Internal Revenue Code of 1986 by
13-34 such corporation if such amounts could have been
13-35 subtracted from taxable income under this paragraph,
13-36 had such amounts actually been received. Amounts to
13-37 be subtracted under this subparagraph shall include
13-38 the following, as defined by the Internal Revenue Code
13-39 of 1986:
13-40 (i) Qualified electing fund income;
13-41 (ii) Subpart F income; and
-13- (Index)
LC 10 0949
14- 1 (iii) Income attributable to an increase in United
14- 2 States property by a controlled foreign corporation.
14- 3 The amount subtracted under this subparagraph shall be
14- 4 reduced by any expenses directly attributable to the
14- 5 dividend income; and
14- 6 (B) Corporations from affiliated corporations within
14- 7 the United States, when the corporation receiving the
14- 8 dividends is engaged in business in this state and is
14- 9 subject to the payment of taxes under the income tax
14-10 laws of this state, to the extent that the dividends
14-11 have been included in net income under this Code
14-12 section. Dividends from affiliates shall be reduced
14-13 by any expenses directly attributable to the dividend
14-14 income.
14-15 (9) Where a corporation's salary and wage deductions are
14-16 reduced in computing federal taxable income because the
14-17 corporation has taken a federal jobs tax credit which
14-18 required, as a condition to using the federal jobs tax
14-19 credit, the elimination of salary and wage deductions,
14-20 the eliminated salary and wage deductions shall be
14-21 subtracted from taxable income.
14-22 (10) There shall be a dollar-for-dollar credit against
14-23 the state income tax liability of depository financial
14-24 institutions which shall be equal to the amount of
14-25 taxes, if any, paid by such taxpayers pursuant to Code
14-26 Section 48-6-93 and Code Section 48-6-95. If the
14-27 liability of any such institutions under the taxes
14-28 authorized by Code Section 48-6-93 and Code Section
14-29 48-6-95 exceeds the corporate income tax liability of
14-30 such institution for any year, the amount of any unused
14-31 credit under this Code section may be credited over a
14-32 period of five years from the tax year in which the
14-33 unused credit arose.
14-34 (11) There shall be subtracted from taxable income a
14-35 portion of qualified payments to minority
14-36 subcontractors, as provided in Code Section 48-7-14.
14-37 (12) Georgia taxable income shall, if the taxpayer so
14-38 elects, be adjusted with respect to federal depreciation
14-39 deductions as provided in Code Section 48-7-8.
14-40 48-7-8. (Index)
14-41 (a) With respect to property placed in service in taxable
14-42 years ending prior to the effective date of this Code
-14- (Index)
LC 10 0949
15- 1 section, a taxpayer shall in his return for the first
15- 2 taxable year ending on or after January 1, 1987, elect to:
15- 3 (1) Continue to depreciate or otherwise recover the cost
15- 4 of such property according to the same method used for
15- 5 Georgia income tax purposes for the taxable year in
15- 6 which the property was placed in service; or
15- 7 (2) Depreciate or otherwise recover the cost of such
15- 8 property according to the method used for federal income
15- 9 tax purposes for the taxable year in which the property
15-10 was placed in service.
15-11 The election required by this subsection shall be made for
15-12 a taxpayer's first taxable year ending on or after January
15-13 1, 1987, in such manner as may be specified by the
15-14 commissioner. If a return for such a taxable year has been
15-15 filed without such an election prior to or within 90 days
15-16 after the effective date of this Code section, the
15-17 taxpayer may file an amended return containing such an
15-18 election.
15-19 (b) The election provided for in subsection (a) of this
15-20 Code section shall apply to all property of the taxpayer
15-21 uniformly and shall be irrevocable and applicable to all
15-22 subsequent taxable years. Except as otherwise provided in
15-23 the last sentence of subsection (a) of this Code section,
15-24 if no such election is made, the taxpayer shall be deemed
15-25 to have elected the option afforded by paragraph (2) of
15-26 subsection (a) of this Code section. The General Assembly
15-27 recognizes and intends that if a taxpayer elects the
15-28 option afforded by paragraph (2) of subsection (a) of this
15-29 Code section then in certain cases the taxpayer may never
15-30 fully depreciate or recover the cost of certain property
15-31 for Georgia income tax purposes and in certain cases the
15-32 taxpayer may be allowed to depreciate or recover more than
15-33 the full cost of certain property for Georgia income tax
15-34 purposes. Taxpayers electing the option afforded by
15-35 paragraph (1) of subsection (a) of this Code section shall
15-36 in determining Georgia taxable income make such
15-37 adjustments to federal taxable income as are required to
15-38 reflect the effect of such election. Any such election
15-39 shall apply both to determination of deductions for
15-40 depreciation or cost recovery of affected property and
15-41 also to determination of gain or loss on the sale or other
15-42 disposition of such property. The commissioner shall
15-43 specify the manner in which such adjustments shall be
15-44 made.
-15- (Index)
LC 10 0949
16- 1 48-7-9. (Index)
16- 2 (a) The tax imposed by this chapter shall apply to the
16- 3 entire net income, as defined in this chapter, received by
16- 4 every foreign or domestic corporation owning property or
16- 5 doing business within this state. A corporation shall be
16- 6 deemed to be doing business within this state if it
16- 7 engages within this state in any activities or
16- 8 transactions for the purpose of financial profit or gain
16- 9 whether or not:
16-10 (1) The corporation qualifies to do business in this
16-11 state;
16-12 (2) The corporation maintains an office or place of
16-13 doing business within this state; or
16-14 (3) Any such activity or transaction is connected with
16-15 interstate or foreign commerce.
16-16 (b)(1) If the entire business income of the corporation
16-17 is derived from property owned or business done in this
16-18 state, the tax shall be imposed on the entire business
16-19 income.
16-20 (2) If the business income of the corporation is derived
16-21 in part from property owned or business done in this
16-22 state and in part from property owned or business done
16-23 outside this state, the tax shall be imposed only on
16-24 that portion of the business income which is reasonably
16-25 attributable to the property owned and business done
16-26 within this state, such portion to be determined as
16-27 provided in subsections (c) and (d) of this Code
16-28 section.
16-29 (c)(1) Interest received on bonds held for investment
16-30 and income received from other intangible property held
16-31 for investment are not subject to apportionment. All
16-32 expenses connected with such investment income shall be
16-33 applied against the investment income. The net
16-34 investment income from intangible property shall be
16-35 allocated to this state if the situs of the corporation
16-36 is in this state or if the intangible property was
16-37 acquired as income from property held in this state or
16-38 as a result of business done in this state.
16-39 (2) Rentals received from real estate held purely for
16-40 investment purposes and not used in the operation of any
16-41 business are not subject to apportionment. All expenses
16-42 connected with such investment income shall be applied
-16- (Index)
LC 10 0949
17- 1 against the investment income. The net investment income
17- 2 from tangible property located in this state shall be
17- 3 allocated to this state.
17- 4 (3) Gains from the sale of tangible or intangible
17- 5 property not held, owned, or used in connection with the
17- 6 trade or business of the corporation nor held for sale
17- 7 in the regular course of business shall be allocated to
17- 8 this state if the property sold is real or tangible
17- 9 personal property situated in this state or intangible
17-10 property having an actual situs or a business situs
17-11 within this state. Otherwise, the gains shall not be
17-12 allocated to this state.
17-13 (d) Net income of the classes described in subsection (c)
17-14 of this Code section having been separately allocated and
17-15 deducted, the remainder of the net business income shall
17-16 be apportioned as follows:
17-17 (1)(A) Where the net business income of the
17-18 corporation is derived principally from the holding,
17-19 sale, or holding and sale of intangible property
17-20 having a taxable situs in this state, the tax shall be
17-21 imposed on the entire business income.
17-22 (B) Where a portion of the intangible property has a
17-23 taxable situs outside this state, the portion of the
17-24 income derived from the holding, sale, or holding and
17-25 sale of the intangible property attributable to this
17-26 state shall be the percentage which the gross receipts
17-27 from the intangible property in this state for the
17-28 taxable year bear to the total gross receipts from
17-29 intangible property located within and outside this
17-30 state.
17-31 (C) The taxable situs of intangible property held or
17-32 owned by any domestic corporation or by any foreign
17-33 corporation whose principal place of business is in
17-34 this state shall be deemed to be in this state even
17-35 though a domicile of the corporation is established
17-36 outside this state.
17-37 (D) Intangible property derived from business done in
17-38 another state by a foreign corporation and held by the
17-39 corporation outside this state shall not be deemed to
17-40 have a taxable situs in this state by reason of the
17-41 fact that officers or directors of the corporation
17-42 reside in this state, corporate meetings are held in
-17- (Index)
LC 10 0949
18- 1 this state, or corporate records are kept in this
18- 2 state;
18- 3 (2) Where the net business income of the corporation is
18- 4 derived principally from the manufacture, production, or
18- 5 sale of tangible personal property, the portion of the
18- 6 net income therefrom attributable to property owned or
18- 7 business done within this state shall be taken to be the
18- 8 portion arrived at by application of the following three
18- 9 factor formula:
18-10 (A) Property factor. The property factor is a
18-11 fraction, the numerator of which is the average value
18-12 of the taxpayer's real and tangible personal property
18-13 owned or rented and used in this state during the tax
18-14 period and the denominator of which is the average
18-15 value of all the taxpayer's real and tangible personal
18-16 property owned or rented and used during the tax
18-17 period;
18-18 (i) Property owned by the taxpayer is valued at its
18-19 original cost. Property rented by the taxpayer is
18-20 valued at eight times the net annual rental rate.
18-21 Net annual rental rate is the annual rental rate
18-22 paid by the taxpayer less any annual rental rate
18-23 received by the taxpayer from subrentals;
18-24 (ii) The average value of property shall be
18-25 determined by averaging the values at the beginning
18-26 and end of the tax period, except that the
18-27 commissioner may require the averaging of monthly
18-28 values during the tax period if such averaging is
18-29 reasonably required to reflect properly the average
18-30 value of the taxpayer's property;
18-31 (B) Payroll factor. The payroll factor is a fraction,
18-32 the numerator of which is the total amount paid in
18-33 this state during the tax period by the taxpayer for
18-34 compensation and the denominator of which is the total
18-35 compensation paid everywhere during the tax period.
18-36 The term 'compensation' means wages, salaries,
18-37 commissions, and any other form of remuneration paid
18-38 to employees for personal services. Payments made to
18-39 an independent contractor or any other person not
18-40 properly classified as an employee are excluded.
18-41 Compensation is paid in this state if:
18-42 (i) The employee's service is performed entirely
18-43 within this state;
-18- (Index)
LC 10 0949
19- 1 (ii) The employee's service is performed both within
19- 2 and outside this state and the service performed
19- 3 outside this state is incidental to the employee's
19- 4 service within this state; or
19- 5 (iii) Some of the service is performed in this state
19- 6 and either the base of operations or the place from
19- 7 which the service is directed or controlled is in
19- 8 this state or the base of operations or the place
19- 9 from which the service is directed or controlled is
19-10 not in any state in which some part of the service
19-11 is performed but the employee's residence is in this
19-12 state;
19-13 (C) Gross receipts factor. The gross receipts factor
19-14 is a fraction, the numerator of which is the total
19-15 gross receipts from business done within this state
19-16 during the tax period and the denominator of which is
19-17 the total gross receipts from business done everywhere
19-18 during the tax period. For the purposes of this
19-19 subparagraph, receipts shall be deemed to have been
19-20 derived from business done within this state only if
19-21 the receipts are received from products shipped to
19-22 customers in this state or products delivered within
19-23 this state to customers. In determining the gross
19-24 receipts within this state, receipts from sales
19-25 negotiated or effected through offices of the taxpayer
19-26 outside this state and delivered from storage in this
19-27 state to customers outside this state shall be
19-28 excluded;
19-29 (D) The property factor, the payroll factor, and the
19-30 gross receipts factor shall be separately determined
19-31 and the three percentages averaged. The net income of
19-32 the corporation shall be apportioned to this state
19-33 according to such average;
19-34 (3) Where the net business income is derived principally
19-35 from business other than the manufacture, production, or
19-36 sale of tangible personal property or from the holding
19-37 or sale of intangible property, the net business income
19-38 of the corporation shall be equitably apportioned within
19-39 and outside this state in the ratio that the business
19-40 within this state bears to the total business of the
19-41 corporation;
19-42 (4) For the purposes of this subsection, the term 'sale'
19-43 shall include, but not be limited to, an exchange, and
-19- (Index)
LC 10 0949
20- 1 the term 'manufacture' shall include, but not be limited
20- 2 to, the extraction and recovery of natural resources and
20- 3 all processes of fabricating and curing.
20- 4 (e) The net income of a domestic or foreign corporation
20- 5 which is a subsidiary of another corporation or which is
20- 6 closely affiliated with another corporation by stock
20- 7 ownership shall be determined by eliminating all payments
20- 8 to the parent corporation or affiliated corporation in
20- 9 excess of fair value and by including fair compensation to
20-10 the domestic business corporation for its commodities sold
20-11 to or services performed for the parent corporation or
20-12 affiliated corporation. For the purposes of determining
20-13 net income as provided in this subsection, the
20-14 commissioner may equitably determine the net income by
20-15 reasonable rules of apportionment of the combined income
20-16 of the subsidiary, its parent, and affiliates, or any
20-17 combination of the subsidiary, its parent, and any one or
20-18 more of its affiliates.
20-19 48-7-10. (Index)
20-20 (a) When the business of any corporation engaged in the
20-21 operation of a railroad, express service, telephone or
20-22 telegraph business, or other form of public service is
20-23 partly within and partly outside the state, the net income
20-24 of the corporation for the purpose of this chapter shall
20-25 be that amount ascertained by apportioning to the state
20-26 the sum of the net income of the corporation including,
20-27 but not limited to, dividend income that may legally be
20-28 taxed by the state (exclusive of income from tax-exempt
20-29 securities and without any deduction for federal and state
20-30 income taxes), as shown by the corporation's records kept
20-31 in accordance with the standard classification of accounts
20-32 prescribed by the Interstate Commerce Commission when the
20-33 standard classification of accounts includes in net income
20-34 rents from all sources; and when the standard
20-35 classification does not include all rents, then such rents
20-36 shall be included in net income in the proportion that the
20-37 total gross operating revenues from business done wholly
20-38 within the state plus the equal mileage proportion within
20-39 the state of all gross operating revenues from interstate
20-40 business of the company, wherever done, bear to the total
20-41 gross operating revenues from all business done by the
20-42 company. If any such corporation keeps its records of
20-43 operating revenues and operating expenses on a state basis
20-44 in accordance with the standard classification of accounts
-20- (Index)
LC 10 0949
21- 1 prescribed by the Interstate Commerce Commission and in a
21- 2 manner which includes in net income for the state the
21- 3 effect of all intrastate and interstate business
21- 4 applicable to the state, the state records may be used by
21- 5 the taxpayer under the supervision of the commissioner in
21- 6 reporting the net taxable income within the state.
21- 7 (b) All other corporations engaged in the business of
21- 8 operating a railroad, express service, telephone or
21- 9 telegraph business, or other form of public service,
21-10 whether or not the corporation is required to make reports
21-11 to the Interstate Commerce Commission, shall keep records
21-12 according to the standard classifications of accounting of
21-13 the Interstate Commerce Commission. The net income of the
21-14 corporation including, but not limited to, dividend income
21-15 that can legally be taxed by the state (exclusive of
21-16 tax-exempt securities and without any deduction for
21-17 federal and state income taxes) shall be determined in
21-18 accordance with such records. If any such corporation
21-19 keeps its records of operating revenues and operating
21-20 expenses on a state basis in accordance with the standard
21-21 classification of accounts prescribed by the Interstate
21-22 Commerce Commission and in a manner which includes in net
21-23 income for the state the effect of all intrastate and
21-24 interstate business applicable to the state, the state
21-25 records may, with the consent of the commissioner, be used
21-26 by the taxpayer in reporting the net taxable income within
21-27 the state.
21-28 48-7-11. (Index)
21-29 (a) The net income shall be computed upon the basis of the
21-30 taxpayer's annual accounting period in accordance with the
21-31 method of accounting regularly employed in keeping the
21-32 books of the taxpayer. If no such method of accounting has
21-33 been so employed or if the method employed does not
21-34 clearly reflect the income, the computation shall be made
21-35 in accordance with the method which, in the opinion of the
21-36 commissioner, clearly reflects the income. If the
21-37 taxpayer's annual accounting period is other than a fiscal
21-38 year or if the taxpayer has no annual accounting period or
21-39 does not keep books, the net income shall be computed on
21-40 the basis of the calendar year. A taxpayer utilizing a
21-41 fiscal year may return his net income under this chapter
21-42 on the basis of his fiscal year with the approval of the
21-43 commissioner and subject to such rules and regulations as
21-44 the commissioner may establish.
-21- (Index)
LC 10 0949
22- 1 (b) With the approval of the commissioner and under such
22- 2 regulations as he may prescribe, a taxpayer may change his
22- 3 taxable year from fiscal year to calendar year or
22- 4 otherwise. In the case of any such change, the net income
22- 5 shall be computed upon the basis of the new taxable year
22- 6 when approval is obtained from the commissioner at least
22- 7 30 days prior to the close of the proposed taxable year.
22- 8 (c) The amount of all items of gross income shall be
22- 9 included in the gross income for the taxable year in which
22-10 received by the taxpayer unless, under methods of
22-11 accounting permitted by this Code section, any amounts of
22-12 gross income are to be properly accounted for as of a
22-13 different period.
22-14 (d) The deductions and credits provided for in this
22-15 chapter shall be taken for the taxable year in which 'paid
22-16 or accrued' or 'paid or incurred' depending upon the
22-17 method of accounting on the basis of which the net income
22-18 is computed unless, in order to clearly reflect the
22-19 income, the deductions or credits should be taken as of a
22-20 different period.
22-21 (e) Whenever in the opinion of the commissioner it is
22-22 necessary in order to determine clearly the income of any
22-23 taxpayer, inventories shall be taken by the taxpayer on
22-24 the basis prescribed by the commissioner. Each such basis
22-25 shall conform as nearly as possible to the best accounting
22-26 practice in the particular trade or business which most
22-27 clearly reflects the income.
22-28 (f) If a return has been filed within the three years
22-29 immediately preceding the date of the taxpayer's death,
22-30 income and expenses of a taxpayer who dies during the
22-31 taxable year shall be computed on the same method of
22-32 accounting, whether cash or accrual, as was used by the
22-33 taxpayer in the preparation of the last income tax return
22-34 filed by him with the commissioner. If no return has been
22-35 filed within the three-year period, the return of a
22-36 deceased taxpayer shall be prepared on the cash method
22-37 unless the commissioner certifies that the cash method,
22-38 because of particular circumstances, is not reasonable to
22-39 either the state or the heirs, legatees, or devisees
22-40 interested in the taxpayer's estate. If the commissioner
22-41 certifies that the cash method is unreasonable, he may
22-42 order the preparation of the return on the accrual method.
22-43 48-7-12. (Index)
-22- (Index)
LC 10 0949
23- 1 If any corporation employs in its books of account a
23- 2 detailed allocation of receipts and expenditures which
23- 3 reflects more clearly than the processes or formulas
23- 4 prescribed by this chapter the income attributable to the
23- 5 trade or business within this state, application for
23- 6 permission to base its return upon the books of account
23- 7 shall be considered by the commissioner. The application
23- 8 shall be made at least 60 days prior to the last day on
23- 9 which the taxpayer's return is to be filed and shall be
23-10 accompanied by a full and complete explanation of the
23-11 method employed.
23-12 48-7-13. (Index)
23-13 If any corporation shows by any method of allocation other
23-14 than the processes or formulas prescribed by this chapter
23-15 that another method reflects more clearly the income
23-16 attributable to the trade or business within this state,
23-17 application for permission to base its return upon the
23-18 other method shall be considered by the commissioner. The
23-19 application shall be accompanied by a statement setting
23-20 forth in detail with full explanations the method the
23-21 taxpayer believes will more clearly reflect its income
23-22 from business within the state. If the commissioner
23-23 concludes that the method of allocation and apportionment
23-24 submitted by the taxpayer is in fact inapplicable and
23-25 inequitable, he shall reject the application and shall so
23-26 notify the taxpayer. Failure to receive the commissioner's
23-27 notice shall not operate to relieve the taxpayer from
23-28 liability for not filing the return on its due date
23-29 utilizing the allocation and apportionment method
23-30 prescribed by this chapter.
23-31 48-7-14. (Index)
23-32 (a) As used in this Code section, the term:
23-33 (1) 'Member of a minority' means an individual who is a
23-34 member of a race which comprises less than 50 percent of
23-35 the total population of the state.
23-36 (2) 'Minority subcontractor' means any business which is
23-37 owned by:
23-38 (A) An individual who is a member of a minority;
23-39 (B) A partnership in which a majority of the ownership
23-40 interest is owned by one or more members of a
23-41 minority; or
-23- (Index)
LC 10 0949
24- 1 (C) A corporation organized under the laws of this
24- 2 state in which a majority of the common stock is owned
24- 3 by one or more members of a minority.
24- 4 (3) 'State contract' means a contract for the purchase
24- 5 by the state of goods, property, or services or for the
24- 6 construction of any building or structure for the state,
24- 7 which contract is executed by any department, board,
24- 8 bureau, commission, or agency of state government, by
24- 9 any state authority, or by any officer, official,
24-10 employee, or agent of any of the foregoing.
24-11 (b) In computing Georgia taxable net income of a
24-12 corporation, there shall be subtracted from federal
24-13 taxable income or federal adjusted gross income 10 percent
24-14 of the amount of qualified payments to minority
24-15 subcontractors. A payment to a minority subcontractor
24-16 shall be a qualified payment if:
24-17 (1) The payment is for goods, personal property, or
24-18 services furnished by the minority subcontractor to the
24-19 taxpayer and delivered by the taxpayer to the state in
24-20 furtherance of a state contract to which the taxpayer is
24-21 a party; and the payment does not exceed the value of
24-22 the goods, property, or services to the taxpayer;
24-23 (2) The payment is made during the taxable year for
24-24 which the subtraction from federal taxable income or
24-25 federal adjusted gross income is claimed; and
24-26 (3) The payment is made to a subcontractor who at the
24-27 time of the payment is certified as a minority
24-28 contractor pursuant to subsection (d) of this Code
24-29 section.
24-30 (c) The total amount which may be subtracted under this
24-31 Code section from federal taxable income or federal
24-32 adjusted gross income of any taxpayer shall be limited to
24-33 $100,000.00 per taxable year.
24-34 (d) The commissioner of administrative services shall
24-35 certify individuals, partnerships, and corporations which
24-36 are within the definition of the term 'minority
24-37 subcontractor' specified in subsection (a) of this Code
24-38 section. The department may disclose to the commissioner
24-39 of administrative services the income tax returns of
24-40 taxpayers applying for certification as minority
24-41 subcontractors. The commissioner of administrative
24-42 services shall maintain and periodically revise a list of
-24- (Index)
LC 10 0949
25- 1 certified minority subcontractors and shall make such list
25- 2 available to the department and to the general public.
25- 3 48-7-15. (Index)
25- 4 (a) As used in this Code section, the term 'business
25- 5 enterprise' means any business or the headquarters of any
25- 6 such business which is engaged in manufacturing,
25- 7 warehousing and distribution, processing, tourism, and
25- 8 research and development industries. Such term shall not
25- 9 include retail businesses.
25-10 (b)(1) Not later than December 31 of each year, using
25-11 the most current data available from the Department of
25-12 Labor and the United States Department of Commerce, the
25-13 commissioner of community affairs shall rank and
25-14 designate as less developed areas all 159 counties in
25-15 this state using a combination of the following factors:
25-16 (A) Highest unemployment rate for the most recent 36
25-17 month period;
25-18 (B) Lowest per capita income for the most recent 36
25-19 month period;
25-20 (C) Highest percentage of residents whose incomes are
25-21 below the poverty level according to the most recent
25-22 data available; and
25-23 (D) Average weekly manufacturing wage according to the
25-24 most recent data available.
25-25 (2) Counties ranked and designated as the first through
25-26 fifty-third least developed counties shall be classified
25-27 as tier 1, counties ranked and designated as the
25-28 fifty-fourth through one hundred sixth least developed
25-29 counties shall be classified as tier 2, and counties
25-30 ranked and designated as the one hundred seventh through
25-31 one hundred fifty-ninth least developed counties shall
25-32 be classified as tier 3.
25-33 (c) The commissioner of community affairs shall be
25-34 authorized to include in the tier 2 designation provided
25-35 for in subsection (b) of this Code section any tier 3
25-36 county which, in the opinion of the commissioner of
25-37 community affairs, undergoes a sudden and severe period of
25-38 economic distress caused by the closing of one or more
25-39 business enterprises located in such county. No
25-40 designation made pursuant to this subsection shall operate
-25- (Index)
LC 10 0949
26- 1 to displace or remove any other county previously
26- 2 designated as a tier 2 county.
26- 3 (d) For business enterprises which plan a significant
26- 4 expansion in their labor forces, the commissioner of
26- 5 community affairs shall prescribe redesignation procedures
26- 6 to ensure that the business enterprises can claim credits
26- 7 in future years without regard to whether or not a
26- 8 particular county is reclassified in a different tier.
26- 9 (e) Business enterprises in counties designated by the
26-10 commissioner of community affairs as tier 1 counties shall
26-11 be allowed a job tax credit for taxes imposed under this
26-12 chapter equal to $2,500.00 annually, business enterprises
26-13 in counties designated by the commissioner of community
26-14 affairs as tier 2 counties shall be allowed a job tax
26-15 credit for taxes imposed under this chapter equal to
26-16 $1,500.00 annually, and business enterprises in counties
26-17 designated by the commissioner of community affairs as
26-18 tier 3 counties shall be allowed a job tax credit for
26-19 taxes imposed under this chapter equal to $500.00 annually
26-20 for each new full-time employee job for five years
26-21 beginning with years two through six after the creation of
26-22 the job. The number of new full-time jobs shall be
26-23 determined by comparing the monthly average number of
26-24 full-time employees subject to Georgia income tax
26-25 withholding for the taxable year with the corresponding
26-26 period of the prior taxable year. In tier 1 counties,
26-27 only those business enterprises that increase employment
26-28 by ten or more shall be eligible for the credit. In tier
26-29 2 counties, only those business enterprises that increase
26-30 employment by 25 or more shall be eligible for the credit.
26-31 In tier 3 counties, only those business enterprises that
26-32 increase employment by 50 or more shall be eligible for
26-33 the credit. Credit shall not be allowed during a year if
26-34 the net employment increase falls below the number
26-35 required in such tier. Any credit received for years
26-36 prior to the year in which the net employment increase
26-37 falls below the number required in such tier shall not be
26-38 affected. The state revenue commissioner shall adjust the
26-39 credit allowed each year for net new employment
26-40 fluctuations above the minimum level of the number
26-41 required in such tier.
26-42 (f) Tax credits for five years for the taxes imposed under
26-43 this chapter shall be awarded for additional new full-time
26-44 jobs created by business enterprises qualified under
-26- (Index)
LC 10 0949
27- 1 subsection (b) or (c) of this Code section. Additional new
27- 2 full-time jobs shall be determined by subtracting the
27- 3 highest total employment of the business enterprise during
27- 4 years two through six, or whatever portion of years two
27- 5 through six which has been completed, from the total
27- 6 increased employment. The state revenue commissioner
27- 7 shall adjust the credit allowed in the event of employment
27- 8 fluctuations during the additional five years of credit.
27- 9 (g) The sale, merger, acquisition, or bankruptcy of any
27-10 business enterprise shall not create new eligibility in
27-11 any succeeding business entity, but any unused job tax
27-12 credit may be transferred and continued by any transferee
27-13 of the business enterprise. The commissioner of community
27-14 affairs shall determine whether or not qualifying net
27-15 increases or decreases have occurred and may require
27-16 reports, promulgate regulations, and hold hearings as
27-17 needed for substantiation and qualification.
27-18 (h) Any credit claimed under this Code section but not
27-19 used in any taxable year may be carried forward for ten
27-20 years from the close of the taxable year in which the
27-21 qualified jobs were established, but the credit
27-22 established by this Code section taken in any one taxable
27-23 year shall be limited to an amount not greater than 50
27-24 percent of the taxpayer's state income tax liability which
27-25 is attributable to income derived from operations in this
27-26 state for that taxable year.
27-27 48-7-16. (Index)
27-28 (a) As used in this Code section, the term 'business
27-29 enterprise' means any business which is engaged in
27-30 manufacturing, warehousing and distribution, processing,
27-31 tourism, and research and development industries. Such
27-32 term shall not include retail businesses.
27-33 (b) Not later than December 31 of each year, using the
27-34 most current data available from the Department of Labor
27-35 and the United States Department of Commerce, the
27-36 commissioner of community affairs shall rank and designate
27-37 as less developed areas the areas which are comprised of
27-38 ten or more contiguous census tracts in this state using a
27-39 combination of the following factors:
27-40 (1) Highest unemployment rate for the most recent 36
27-41 month period;
-27- (Index)
LC 10 0949
28- 1 (2) Lowest per capita income for the most recent 36
28- 2 month period; and
28- 3 (3) Highest percentage of residents whose income is
28- 4 below the poverty level according to the most recent
28- 5 data available.
28- 6 (c) The commissioner of community affairs shall be
28- 7 authorized to include in the designation provided for in
28- 8 subsection (b) of this Code section:
28- 9 (1) Any area comprised of ten or more contiguous census
28-10 tracts which, in the opinion of the commissioner of
28-11 community affairs, undergoes a sudden and severe period
28-12 of economic distress caused by the closing of one or
28-13 more business enterprises located in such area; or
28-14 (2) Any area comprised of one or more contiguous census
28-15 tracts which, in the opinion of the commissioner of
28-16 community affairs, is or will be adversely impacted by
28-17 the loss of one or more jobs, businesses, or residences
28-18 as a result of an airport expansion, including noise
28-19 buy-outs, or the closing of a business enterprise which,
28-20 in the opinion of the commissioner of community affairs,
28-21 results or will result in a sudden and severe period of
28-22 economic distress.
28-23 No designation made pursuant to this subsection shall
28-24 operate to displace or remove any other area previously
28-25 designated as a less developed area.
28-26 (d) For business enterprises which plan a significant
28-27 expansion in their labor forces, the commissioner of
28-28 community affairs shall prescribe redesignation procedures
28-29 to ensure that the business enterprises can claim credits
28-30 in future years without regard to whether or not a
28-31 particular area is removed from the list of less developed
28-32 areas.
28-33 (e) Business enterprises in areas designated by the
28-34 commissioner of community affairs as less developed areas
28-35 shall be allowed a job tax credit for taxes imposed under
28-36 this chapter equal to $2,500.00 annually for each new
28-37 full-time employee job for five years beginning with years
28-38 two through six after the creation of the job. The number
28-39 of new full-time jobs shall be determined by comparing the
28-40 monthly average number of full-time employees subject to
28-41 Georgia income tax withholding for the taxable year with
28-42 the corresponding period of the prior taxable year. Only
-28- (Index)
LC 10 0949
29- 1 those business enterprises that increase employment by ten
29- 2 or more in a less developed area shall be eligible for the
29- 3 credit. In addition, not less than 30 percent of such new
29- 4 full-time jobs must be held by a resident of the less
29- 5 developed area for which the credit is sought or another
29- 6 such designated less developed area. Credit shall not be
29- 7 allowed during a year if the net employment increase falls
29- 8 below ten. Any credit received for years prior to the
29- 9 year in which the net employment increase falls below ten
29-10 shall not be affected. The state revenue commissioner
29-11 shall adjust the credit allowed each year for net new
29-12 employment fluctuations above the minimum level of ten.
29-13 (f) Tax credits for five years for the taxes imposed under
29-14 this chapter shall be awarded for additional new full-time
29-15 jobs created by business enterprises qualified under
29-16 subsection (b) or (c) of this Code section. Additional new
29-17 full-time jobs shall be determined by subtracting the
29-18 highest total employment of the business enterprise during
29-19 years two through six, or whatever portion of years two
29-20 through six which has been completed, from the total
29-21 increased employment. The state revenue commissioner
29-22 shall adjust the credit allowed in the event of employment
29-23 fluctuations during the additional five years of credit.
29-24 (g) The sale, merger, acquisition, or bankruptcy of any
29-25 business enterprise shall not create new eligibility in
29-26 any succeeding business entity, but any unused job tax
29-27 credit may be transferred and continued by any transferee
29-28 of the business enterprise. The commissioner of community
29-29 affairs shall determine whether or not qualifying net
29-30 increases or decreases have occurred and may require
29-31 reports, promulgate regulations, and hold hearings as
29-32 needed for substantiation and qualification.
29-33 (h) Any credit claimed under this Code section but not
29-34 used in any taxable year may be carried forward for ten
29-35 years from the close of the taxable year in which the
29-36 qualified jobs were established, but the credit
29-37 established by this Code section taken in any one taxable
29-38 year shall be limited to an amount not greater than 50
29-39 percent of the taxpayer's state income tax liability which
29-40 is attributable to income derived from operations in this
29-41 state for that taxable year.
29-42 48-7-17. (Index)
29-43 (a) As used in this Code section, the term:
-29- (Index)
LC 10 0949
30- 1 (1) 'Product' means a marketable product or component of
30- 2 a product which has an economic value to the wholesale
30- 3 or retail consumer and is ready to be used without
30- 4 further alteration of its form or a product or material
30- 5 which is marketed as a prepared material or is a
30- 6 component in the manufacturing and assembly of other
30- 7 finished products.
30- 8 (2) 'Qualified investment property' means all real and
30- 9 personal property purchased or acquired by a taxpayer
30-10 for use in the construction of an additional
30-11 manufacturing facility to be located in this state or
30-12 the expansion of an existing manufacturing facility
30-13 located in this state, including, but not limited to,
30-14 amounts expended on land acquisition, improvements,
30-15 buildings, building improvements, and machinery and
30-16 equipment to be used in the manufacturing facility.
30-17 (3) 'Recovered materials' means those materials,
30-18 including but not limited to such materials as aluminum,
30-19 oil, plastic, paper, paper products, scrap metal, iron,
30-20 glass, and rubber, which have known use, reuse, or
30-21 recycling potential; can be feasibly used, reused, or
30-22 recycled; and have been diverted or removed from the
30-23 solid waste stream for sale, use, reuse, or recycling,
30-24 whether or not requiring subsequent separation and
30-25 processing.
30-26 (4) 'Recycling' means any process by which materials
30-27 which would otherwise become solid waste are collected,
30-28 separated, or processed and reused or returned to use in
30-29 the form of raw materials or products.
30-30 (5) 'Recycling machinery and equipment' means all
30-31 tangible personal property used, directly or indirectly,
30-32 to sort, store, prepare, convert, process, fabricate, or
30-33 manufacture recovered materials into finished products
30-34 which are composed of at least 25 percent recovered
30-35 materials, such term including, but not being limited
30-36 to, power generation and pollution control machinery and
30-37 equipment.
30-38 (6) 'Recycling manufacturing facility' means any
30-39 facility, including land, improvements to land,
30-40 buildings, building improvements, and any recycling
30-41 machinery and equipment used in the recycling process
30-42 resulting in the manufacture of finished products from
30-43 recovered materials, provided that up to 10 percent of
-30- (Index)
LC 10 0949
31- 1 any building that is a component of a recycling facility
31- 2 may be used for office space to house support staff for
31- 3 the recycling operation.
31- 4 (b) In the case of a corporation or person which has
31- 5 operated for the immediately preceding three years an
31- 6 existing manufacturing facility in this state in a tier 1
31- 7 county designated pursuant to Code Section 48-7-15, there
31- 8 shall be allowed a credit against the tax imposed under
31- 9 Code Section 48-7-7 in an amount equal to 5 percent of the
31-10 cost of all qualified investment property purchased or
31-11 acquired by the taxpayer in such year, subject to the
31-12 conditions and limitations set forth in this Code section.
31-13 In the event such qualified investment property purchased
31-14 or acquired by the taxpayer in such year consists of
31-15 recycling machinery or equipment, a recycling
31-16 manufacturing facility, pollution control or prevention
31-17 machinery or equipment, a pollution control or prevention
31-18 facility, or the conversion from defense to domestic
31-19 production, the amount of such credit shall be equal to 8
31-20 percent.
31-21 (c) The credit granted under subsection (b) of this Code
31-22 section shall be subject to the following conditions and
31-23 limitations:
31-24 (1) In order to qualify as a basis for the credit, the
31-25 investment in qualified investment property must occur
31-26 no sooner than January 1, 1994. The credit may be taken
31-27 beginning with the tax year immediately following the
31-28 tax year in which the qualified investment property
31-29 having an aggregate cost in excess of $1 million is
31-30 purchased or acquired by the taxpayer. For every year
31-31 in which a taxpayer claims the credit, the taxpayer
31-32 shall attach a schedule to the taxpayer's Georgia income
31-33 tax return which will set forth the following
31-34 information, as a minimum:
31-35 (A) A description of the project;
31-36 (B) The amount of qualified investment property
31-37 acquired during the taxable year;
31-38 (C) The amount of tax credit claimed for the taxable
31-39 year;
31-40 (D) The amount of qualified investment property
31-41 acquired in prior taxable years;
-31- (Index)
LC 10 0949
32- 1 (E) Any tax credit utilized by the taxpayer in prior
32- 2 taxable years;
32- 3 (F) The amount of tax credit carried over from prior
32- 4 years;
32- 5 (G) The amount of tax credit utilized by the taxpayer
32- 6 in the current taxable year; and
32- 7 (H) The amount of tax credit to be carried over to
32- 8 subsequent tax years;
32- 9 (2) Any credit claimed under this Code section but not
32-10 used in any taxable year may be carried forward for five
32-11 years from the close of the taxable year in which the
32-12 qualified investment property was acquired, provided
32-13 that such qualified investment property remain in
32-14 service. The credit established by this Code section
32-15 taken in any one taxable year shall be limited to an
32-16 amount not greater than 50 percent of the taxpayer's
32-17 state income tax liability which is attributable to
32-18 income derived from operations in this state for that
32-19 taxable year. The sale, merger, acquisition, or
32-20 bankruptcy of any taxpayer shall not create new
32-21 eligibility in any succeeding taxpayer, but any unused
32-22 credit may be transferred and continued by any
32-23 transferee of the taxpayer.
32-24 (3) In the initial year in which the taxpayer claims the
32-25 credit granted in subsection (b) of this Code section,
32-26 the taxpayer shall include in the description of the
32-27 project required by subparagraph (A) of paragraph (1) of
32-28 this subsection information which demonstrates that the
32-29 project includes the acquisition of qualified investment
32-30 property having an aggregate cost in excess of $1
32-31 million;
32-32 (4) Any lease for a period of five years or longer of
32-33 any real or personal property used in a new or expanded
32-34 manufacturing facility which would otherwise constitute
32-35 qualified investment property shall be treated as the
32-36 purchase or acquisition of qualified investment property
32-37 by the lessee. The taxpayer may treat the full value of
32-38 the leased property as qualified investment property in
32-39 the taxable year in which the lease becomes binding on
32-40 the lessor and the taxpayer if all other conditions of
32-41 this subsection have been met; and
-32- (Index)
LC 10 0949
33- 1 (5) The utilization of the credit granted in subsection
33- 2 (b) of this Code section shall have no effect on the
33- 3 taxpayer's ability to claim depreciation for tax
33- 4 purposes on the assets acquired by the corporation nor
33- 5 shall the credit have any effect on the taxpayer's basis
33- 6 in such assets for the purpose of depreciation.
33- 7 (d) No taxpayer shall be authorized to claim on a tax
33- 8 return for a tax year the credit provided for in this Code
33- 9 section if such taxpayer claims on such tax return any of
33-10 the credits authorized under Code Section 48-7-15 or
33-11 48-7-16.
33-12 48-7-18. (Index)
33-13 (a) As used in this Code section, the term:
33-14 (1) 'Product' means a marketable product or component of
33-15 a product which has an economic value to the wholesale
33-16 or retail consumer and is ready to be used without
33-17 further alteration of its form or a product or material
33-18 which is marketed as a prepared material or is a
33-19 component in the manufacturing and assembly of other
33-20 finished products.
33-21 (2) 'Qualified investment property' means all real and
33-22 personal property purchased or acquired by a taxpayer
33-23 for use in the construction of an additional
33-24 manufacturing facility to be located in this state or
33-25 the expansion of an existing manufacturing facility
33-26 located in this state, including, but not limited to,
33-27 amounts expended on land acquisition, improvements,
33-28 buildings, building improvements, and machinery and
33-29 equipment to be used in the manufacturing facility.
33-30 (3) 'Recovered materials' means those materials,
33-31 including but not limited to such materials as aluminum,
33-32 oil, plastic, paper, paper products, scrap metal, iron,
33-33 glass, and rubber, which have known use, reuse, or
33-34 recycling potential; can be feasibly used, reused, or
33-35 recycled; and have been diverted or removed from the
33-36 solid waste stream for sale, use, reuse, or recycling,
33-37 whether or not requiring subsequent separation and
33-38 processing.
33-39 (4) 'Recycling' means any process by which materials
33-40 which would otherwise become solid waste are collected,
33-41 separated, or processed and reused or returned to use in
33-42 the form of raw materials or products.
-33- (Index)
LC 10 0949
34- 1 (5) 'Recycling machinery and equipment' means all
34- 2 tangible personal property used, directly or indirectly,
34- 3 to sort, store, prepare, convert, process, fabricate, or
34- 4 manufacture recovered materials into products which are
34- 5 composed of at least 25 percent recovered materials,
34- 6 such term including, but not being limited to, power
34- 7 generation and pollution control machinery and
34- 8 equipment.
34- 9 (6) 'Recycling manufacturing facility' means any
34-10 facility, including land, improvements to land,
34-11 buildings, building improvements, and any recycling
34-12 machinery and equipment used in the recycling process
34-13 resulting in the manufacture of products from recovered
34-14 materials, provided that up to 10 percent of any
34-15 building that is a component of a recycling facility may
34-16 be used for office space to house support staff for the
34-17 recycling operation.
34-18 (b) In the case of a corporation or person which has
34-19 operated for the immediately preceding three years an
34-20 existing manufacturing facility in this state in a tier 2
34-21 county designated pursuant to Code Section 48-7-15, there
34-22 shall be allowed a credit against the tax imposed under
34-23 Code Section 48-7-7 in an amount equal to 3 percent of the
34-24 cost of all qualified investment property purchased or
34-25 acquired by the taxpayer in such year, subject to the
34-26 conditions and limitations set forth in this Code section.
34-27 In the event such qualified investment property purchased
34-28 or acquired by the taxpayer in such year consists of
34-29 recycling machinery or equipment, a recycling
34-30 manufacturing facility, pollution control or prevention
34-31 machinery or equipment, a pollution control or prevention
34-32 facility, or the conversion from defense to domestic
34-33 production, the amount of such credit shall be equal to 5
34-34 percent.
34-35 (c) The credit granted under subsection (b) of this Code
34-36 section shall be subject to the following conditions and
34-37 limitations:
34-38 (1) In order to qualify as a basis for the credit, the
34-39 investment in qualified investment property must occur
34-40 no sooner than January 1, 1994. The credit may be taken
34-41 beginning with the tax year immediately following the
34-42 tax year in which the qualified investment property
34-43 having an aggregate cost in excess of $3 million is
34-44 purchased or acquired by the taxpayer. For every year
-34- (Index)
LC 10 0949
35- 1 in which a taxpayer claims the credit, the taxpayer
35- 2 shall attach a schedule to the taxpayer's Georgia income
35- 3 tax return which will set forth the following
35- 4 information, as a minimum:
35- 5 (A) A description of the project;
35- 6 (B) The amount of qualified investment property
35- 7 acquired during the taxable year;
35- 8 (C) The amount of tax credit claimed for the taxable
35- 9 year;
35-10 (D) The amount of qualified investment property
35-11 acquired in prior taxable years;
35-12 (E) Any tax credit utilized by the taxpayer in prior
35-13 taxable years;
35-14 (F) The amount of tax credit carried over from prior
35-15 years;
35-16 (G) The amount of tax credit utilized by the taxpayer
35-17 in the current taxable year; and
35-18 (H) The amount of tax credit to be carried over to
35-19 subsequent tax years;
35-20 (2) Any credit claimed under this Code section but not
35-21 used in any taxable year may be carried forward for five
35-22 years from the close of the taxable year in which the
35-23 qualified investment property was acquired, provided
35-24 that such qualified investment property remains in
35-25 service. The credit established by this Code section
35-26 taken in any one taxable year shall be limited to an
35-27 amount not greater than 50 percent of the taxpayer's
35-28 state income tax liability which is attributable to
35-29 income derived from operations in this state for that
35-30 taxable year. The sale, merger, acquisition, or
35-31 bankruptcy of any taxpayer shall not create new
35-32 eligibility in any succeeding taxpayer, but any unused
35-33 credit may be transferred and continued by any
35-34 transferee of the taxpayer;
35-35 (3) In the initial year in which the taxpayer claims the
35-36 credit granted in subsection (b) of this Code section,
35-37 the taxpayer shall include in the description of the
35-38 project required by subparagraph (A) of paragraph (1) of
35-39 this subsection information which demonstrates that the
35-40 project includes the acquisition of qualified investment
-35- (Index)
LC 10 0949
36- 1 property having an aggregate cost in excess of $3
36- 2 million;
36- 3 (4) Any lease for a period of five years or longer of
36- 4 any real or personal property used in a new or expanded
36- 5 manufacturing facility which would otherwise constitute
36- 6 qualified investment property shall be treated as the
36- 7 purchase or acquisition of qualified investment property
36- 8 by the lessee. The taxpayer may treat the full value of
36- 9 the leased property as qualified investment property in
36-10 the taxable year in which the lease becomes binding on
36-11 the lessor and the taxpayer if all other conditions of
36-12 this subsection have been met; and
36-13 (5) The utilization of the credit granted in subsection
36-14 (b) of this Code section shall have no effect on the
36-15 taxpayer's ability to claim depreciation for tax
36-16 purposes on the assets acquired by the corporation nor
36-17 shall the credit have any effect on the taxpayer's basis
36-18 in such assets for the purpose of depreciation.
36-19 (d) No taxpayer shall be authorized to claim on a tax
36-20 return for a tax year the credit provided for in this Code
36-21 section if such taxpayer claims on such tax return any of
36-22 the credits authorized under Code Section 48-7-15 or
36-23 48-7-16.
36-24 48-7-19. (Index)
36-25 (a) As used in this Code section, the term:
36-26 (1) 'Product' means a marketable product or component of
36-27 a product which has an economic value to the wholesale
36-28 or retail consumer and is ready to be used without
36-29 further alteration of its form or a product or material
36-30 which is marketed as a prepared material or is a
36-31 component in the manufacturing and assembly of other
36-32 finished products.
36-33 (2) 'Qualified investment property' means all real and
36-34 personal property purchased or acquired by a taxpayer
36-35 for use in the construction of an additional
36-36 manufacturing facility to be located in this state or
36-37 the expansion of an existing manufacturing facility
36-38 located in this state, including, but not limited to,
36-39 amounts expended on land acquisition, improvements,
36-40 buildings, building improvements, and machinery and
36-41 equipment to be used in the manufacturing facility.
-36- (Index)
LC 10 0949
37- 1 (3) 'Recovered materials' means those materials,
37- 2 including but not limited to such materials as aluminum,
37- 3 oil, plastic, paper, paper products, scrap metal, iron,
37- 4 glass, and rubber, which have known use, reuse, or
37- 5 recycling potential; can be feasibly used, reused, or
37- 6 recycled; and have been diverted or removed from the
37- 7 solid waste stream for sale, use, reuse, or recycling,
37- 8 whether or not requiring subsequent separation and
37- 9 processing.
37-10 (4) 'Recycling' means any process by which materials
37-11 which would otherwise become solid waste are collected,
37-12 separated, or processed and reused or returned to use in
37-13 the form of raw materials or products.
37-14 (5) 'Recycling machinery and equipment' means all
37-15 tangible personal property used, directly or indirectly,
37-16 to sort, store, prepare, convert, process, fabricate, or
37-17 manufacture recovered materials into products which are
37-18 composed of at least 25 percent recovered materials,
37-19 such term including, but not being limited to, power
37-20 generation and pollution control machinery and
37-21 equipment.
37-22 (6) 'Recycling manufacturing facility' means any
37-23 facility, including land, improvements to land,
37-24 buildings, building improvements, and any recycling
37-25 machinery and equipment used in the recycling process
37-26 resulting in the manufacture of products from recovered
37-27 materials, provided that up to 10 percent of any
37-28 building that is a component of a recycling facility may
37-29 be used for office space to house support staff for the
37-30 recycling operation.
37-31 (b) In the case of a corporation or person which has
37-32 operated for the immediately preceding three years an
37-33 existing manufacturing facility in this state in a tier 3
37-34 county designated pursuant to Code Section 48-7-15, there
37-35 shall be allowed a credit against the tax imposed under
37-36 Code Section 48-7-7 in an amount equal to 1 percent of the
37-37 cost of all qualified investment property purchased or
37-38 acquired by the taxpayer in such year, subject to the
37-39 conditions and limitations set forth in this Code section.
37-40 In the event such qualified investment property purchased
37-41 or acquired by the taxpayer in such year consists of
37-42 recycling machinery or equipment, a recycling
37-43 manufacturing facility, pollution control or prevention
37-44 machinery or equipment, a pollution control or prevention
-37- (Index)
LC 10 0949
38- 1 facility, or the conversion from defense to domestic
38- 2 production, the amount of such credit shall be equal to 3
38- 3 percent.
38- 4 (c) The credit granted under subsection (b) of this Code
38- 5 section shall be subject to the following conditions and
38- 6 limitations:
38- 7 (1) In order to qualify as a basis for the credit, the
38- 8 investment in qualified investment property must occur
38- 9 no sooner than January 1, 1994. The credit may be taken
38-10 beginning with the tax year immediately following the
38-11 tax year in which the qualified investment property
38-12 having an aggregate cost in excess of $5 million is
38-13 purchased or acquired by the taxpayer. For every year
38-14 in which a taxpayer claims the credit, the taxpayer
38-15 shall attach a schedule to the taxpayer's Georgia income
38-16 tax return which will set forth the following
38-17 information, as a minimum:
38-18 (A) A description of the project;
38-19 (B) The amount of qualified investment property
38-20 acquired during the taxable year;
38-21 (C) The amount of tax credit claimed for the taxable
38-22 year;
38-23 (D) The amount of qualified investment property
38-24 acquired in prior taxable years;
38-25 (E) Any tax credit utilized by the taxpayer in prior
38-26 taxable years;
38-27 (F) The amount of tax credit carried over from prior
38-28 years;
38-29 (G) The amount of tax credit utilized by the taxpayer
38-30 in the current taxable year; and
38-31 (H) The amount of tax credit to be carried over to
38-32 subsequent tax years;
38-33 (2) Any credit claimed under this Code section but not
38-34 used in any taxable year may be carried forward for five
38-35 years from the close of the taxable year in which the
38-36 qualified investment property was acquired, provided
38-37 that such qualified investment property remains in
38-38 service. The credit established by this Code section
38-39 taken in any one taxable year shall be limited to an
38-40 amount not greater than 50 percent of the taxpayer's
-38- (Index)
LC 10 0949
39- 1 state income tax liability which is attributable to
39- 2 income derived from operations in this state for that
39- 3 taxable year. The sale, merger, acquisition, or
39- 4 bankruptcy of any taxpayer shall not create new
39- 5 eligibility in any succeeding taxpayer, but any unused
39- 6 credit may be transferred and continued by any
39- 7 transferee of the taxpayer;
39- 8 (3) In the initial year in which the taxpayer claims the
39- 9 credit granted in subsection (b) of this Code section,
39-10 the taxpayer shall include in the description of the
39-11 project required by subparagraph (A) of paragraph (1) of
39-12 this subsection information which demonstrates that the
39-13 project includes the acquisition of qualified investment
39-14 property having an aggregate cost in excess of $5
39-15 million;
39-16 (4) Any lease for a period of five years or longer of
39-17 any real or personal property used in a new or expanded
39-18 manufacturing facility which would otherwise constitute
39-19 qualified investment property shall be treated as the
39-20 purchase or acquisition of qualified investment property
39-21 by the lessee. The taxpayer may treat the full value of
39-22 the leased property as qualified investment property in
39-23 the taxable year in which the lease becomes binding on
39-24 the lessor and the taxpayer if all other conditions of
39-25 this subsection have been met; and
39-26 (5) The utilization of the credit granted in subsection
39-27 (b) of this Code section shall have no effect on the
39-28 taxpayer's ability to claim depreciation for tax
39-29 purposes on the assets acquired by the corporation nor
39-30 shall the credit have any effect on the taxpayer's basis
39-31 in such assets for the purpose of depreciation.
39-32 (d) No taxpayer shall be authorized to claim on a tax
39-33 return for a tax year the credit provided for in this Code
39-34 section if such taxpayer claims on such tax return any of
39-35 the credits authorized under Code Section 48-7-15 or
39-36 48-7-16.
39-37 48-7-20. (Index)
39-38 (a) As used in this Code section, the term:
39-39 (1) 'Approved retraining' means employer provided or
39-40 employer sponsored retraining that meets the following
39-41 conditions:
-39- (Index)
LC 10 0949
40- 1 (A) It enhances the functional skills of employees
40- 2 otherwise unable to function effectively on the job
40- 3 due to skill deficiencies or who would otherwise be
40- 4 displaced because such skill deficiencies would
40- 5 inhibit their utilization of new technology;
40- 6 (B) It is approved and certified by the Department of
40- 7 Technical and Adult Education; and
40- 8 (C) The employer does not require the employee to make
40- 9 any payment for the retraining, either directly or
40-10 indirectly through use of forfeiture of leave time,
40-11 vacation time, or other compensable time.
40-12 (2) 'Cost of retraining' means direct instructional
40-13 costs as defined by the Department of Technical and
40-14 Adult Education including instructor salaries,
40-15 materials, supplies, and textbooks but specifically
40-16 excluding costs associated with renting or otherwise
40-17 securing space.
40-18 (3) 'Employee' means any employee resident in this state
40-19 who is employed for at least 25 hours a week, who has
40-20 been continuously employed by the employer for at least
40-21 16 consecutive weeks.
40-22 (4) 'Employer' means any employer upon whom an income
40-23 tax is imposed by this chapter.
40-24 (5) 'Employer provided' refers to approved retraining
40-25 offered on the premises of the employer or on premises
40-26 approved by the Department of Technical and Adult
40-27 Education by instructors hired by or employed by an
40-28 employer.
40-29 (6) 'Employer sponsored' refers to a contractual
40-30 arrangement with a school, university, college, or other
40-31 instructional facility which offers approved retraining
40-32 that is paid for by the employer.
40-33 (b) A tax credit shall be granted to an employer who
40-34 provides or sponsors an approved retraining program. The
40-35 amount of the tax credit shall be equal to one-fourth of
40-36 the costs of retraining per full-time equivalent student,
40-37 or $500.00 per full-time equivalent student, whichever is
40-38 less, for each employee who has successfully completed an
40-39 approved retraining program. No employer may receive a
40-40 credit if the employer requires that the employee
40-41 reimburse or pay the employer for the cost of retraining.
-40- (Index)
LC 10 0949
41- 1 (c) The tax credit granted to any employer pursuant to
41- 2 this Code section shall not exceed 50 percent of the
41- 3 amount of the taxpayer's income tax liability for the
41- 4 taxable year as computed without regard to this Code
41- 5 section.
41- 6 (d) To be eligible to claim the credit granted under this
41- 7 Code section, the employer must certify to the department
41- 8 the name of the employee, the course work successfully
41- 9 completed by such employee, the name of the provider of
41-10 the approved retraining, and such other information as may
41-11 be required by the department to ensure that credits are
41-12 only granted to employers who provide or sponsor approved
41-13 retraining pursuant to this Code section and that such
41-14 credits are only granted to employers with respect to
41-15 employees who successfully complete such approved
41-16 retraining. The department shall adopt rules and
41-17 regulations and forms to implement this credit program.
41-18 The department is expressly authorized and directed to
41-19 work with the Department of Technical and Adult Education
41-20 to ensure the proper granting of credits pursuant to this
41-21 Code section.
41-22 (e) The Department of Technical and Adult Education is
41-23 expressly authorized and directed to establish such
41-24 standards as it deems necessary and convenient in
41-25 approving employer provided and employer sponsored
41-26 retraining programs. In establishing such standards, the
41-27 Department of Technical and Adult Education shall
41-28 establish required hours of classroom instruction,
41-29 required courses, certification of teachers or
41-30 instructors, progressive levels of instruction, and
41-31 standardized measures of employee evaluation to determine
41-32 successful completion of a course of study.
41-33 48-7-21. (Index)
41-34 (a) As used in this Code section, the term:
41-35 (1) 'Cost of operation' means reasonable direct
41-36 operational costs incurred by an employer as a result of
41-37 providing employer provided or employer sponsored child
41-38 care facilities.
41-39 (2) 'Employer' means any employer upon whom an income
41-40 tax is imposed by this chapter.
-41- (Index)
LC 10 0949
42- 1 (3) 'Employer provided' refers to child care offered on
42- 2 the premises of the employer, provided that the facility
42- 3 is in Georgia.
42- 4 (4) 'Employer sponsored' refers to a contractual
42- 5 arrangement with a child care facility that is paid for
42- 6 by the employer.
42- 7 (b) A tax credit shall be granted to an employer who
42- 8 provides or sponsors child care for employees. The amount
42- 9 of the tax credit shall be equal to one-half of the cost
42-10 of operation to the employer less any amounts paid for by
42-11 employees during a taxable year.
42-12 (c) The tax credit granted to any employer pursuant to
42-13 this Code section shall not exceed 50 percent of the
42-14 amount of the taxpayer's income tax liability for the
42-15 taxable year as computed without regard to this Code
42-16 section. Any credit claimed under this Code section but
42-17 not used in any taxable year may be carried forward for
42-18 five years from the close of the taxable year in which the
42-19 cost of operation was incurred.
42-20 (d) To be eligible to claim the credit granted under this
42-21 Code section, the employer must certify to the department
42-22 the names of the employees, the name of the child care
42-23 provider, and such other information as may be required by
42-24 the department to ensure that credits are only granted to
42-25 employers who provide or sponsor approved child care
42-26 pursuant to this Code section. The department shall adopt
42-27 rules and regulations and forms to implement this credit
42-28 program.
42-29 48-7-22. (Index)
42-30 (a) As used in this Code section, the term:
42-31 (1) 'Approved basic skills education' means employer
42-32 provided or employer sponsored education that meets the
42-33 following conditions:
42-34 (A) It enhances reading, writing, or mathematical
42-35 skills up to and including the twelfth-grade level for
42-36 employees who are otherwise unable to function
42-37 effectively on the job due to deficiencies in those
42-38 areas or who would otherwise be displaced because such
42-39 skill deficiencies would inhibit their training for
42-40 new technology;
-42- (Index)
LC 10 0949
43- 1 (B) It is approved and certified by the Department of
43- 2 Technical and Adult Education; and
43- 3 (C) The employer does not require the employee to make
43- 4 any payment for the education, either directly or
43- 5 indirectly through use of forfeiture of leave time,
43- 6 vacation time, or other compensable time.
43- 7 (2) 'Cost of education' means direct instructional costs
43- 8 as defined by the Department of Technical and Adult
43- 9 Education including instructor salaries, materials,
43-10 supplies, and textbooks but specifically excluding costs
43-11 associated with renting or otherwise securing space.
43-12 (3) 'Employee' means any employee resident in this state
43-13 who is employed for at least 24 hours a week and who has
43-14 been continuously employed by the employer for at least
43-15 16 consecutive weeks.
43-16 (4) 'Employer' means any employer upon whom an income
43-17 tax is imposed by this chapter.
43-18 (5) 'Employer provided' refers to approved basic skills
43-19 education offered on the premises of the employer or on
43-20 premises approved by the Department of Technical and
43-21 Adult Education by instructors hired by or employed by
43-22 an employer.
43-23 (6) 'Employer sponsored' refers to a contractual
43-24 arrangement with a school, university, college, or other
43-25 instructional facility which offers approved basic
43-26 skills education that is paid for by the employer.
43-27 (b) A tax credit shall be granted to an employer who
43-28 provides or sponsors an approved basic skills education
43-29 program. The amount of the tax credit shall be equal to
43-30 one-third of the costs of education per full-time
43-31 equivalent student, or $150.00 per full-time equivalent
43-32 student, whichever is less, for each employee who has
43-33 successfully completed an approved basic skills education
43-34 program. No employer may receive a credit if the employer
43-35 requires that the employee reimburse or pay the employer
43-36 for the cost of education.
43-37 (c) The tax credit granted to any employer pursuant to
43-38 this Code section shall not exceed the amount of the
43-39 taxpayer's income tax liability for the taxable year as
43-40 computed without regard to this Code section.
-43- (Index)
LC 10 0949
44- 1 (d) To be eligible to claim the credit granted under this
44- 2 Code section, the employer must certify to the department
44- 3 the name of the employee, the course work successfully
44- 4 completed by such employee, the name of the approved basic
44- 5 skills education provider, and such other information as
44- 6 may be required by the department to ensure that credits
44- 7 are only granted to employers who provide or sponsor
44- 8 approved basic skills education pursuant to this Code
44- 9 section and that such credits are only granted to
44-10 employers with respect to employees who successfully
44-11 complete such approved basic skills education. The
44-12 department shall adopt rules and regulations and forms to
44-13 implement this credit program. The department is expressly
44-14 authorized and directed to work with the Department of
44-15 Technical and Adult Education to ensure the proper
44-16 granting of credits pursuant to this Code section.
44-17 (e) The Department of Technical and Adult Education is
44-18 expressly authorized and directed to establish such
44-19 standards as it deems necessary and convenient in
44-20 approving employer provided and employer sponsored basic
44-21 skills education programs. In establishing such
44-22 standards, the Department of Technical and Adult Education
44-23 shall establish required hours of classroom instruction,
44-24 required courses, certification of teachers or
44-25 instructors, and progressive levels of instruction and
44-26 standardized measures of employee evaluation to determine
44-27 successful completion of a course of study.
44-28 48-7-23. (Index)
44-29 Every corporation subject to taxation under this chapter
44-30 shall make a return stating specifically the items of its
44-31 gross income and the deductions and credits allowed by
44-32 this chapter. The income of two or more corporations shall
44-33 not be included in a single return except with the express
44-34 consent of the commissioner. When a receiver, trustee in
44-35 bankruptcy, or assignee is operating the property or
44-36 business of a corporation, the receiver, trustee, or
44-37 assignee shall make returns for the corporation in the
44-38 same manner and form as the corporation is required to
44-39 make returns. Any tax due on the basis of returns made by
44-40 a receiver, trustee, or assignee shall be collected in the
44-41 same manner as if collected from the corporation of whose
44-42 business or property he has custody and control.
44-43 48-7-24. (Index)
-44- (Index)
LC 10 0949
45- 1 (a) Returns of corporations made on the basis of a
45- 2 calendar year shall be filed on or before the fifteenth
45- 3 day of March following the close of the calendar year, and
45- 4 returns of corporations made on the basis of a fiscal year
45- 5 shall be filed on or before the fifteenth day of the third
45- 6 month following the close of the fiscal year. Returns
45- 7 required for a taxable year relating to returns of DISC's
45- 8 and former DISC's and FSC's shall be filed on or before
45- 9 the fifteenth day of the ninth month following the close
45-10 of the taxable year. The commissioner may allow further
45-11 time for filing returns whenever in his judgment good
45-12 cause exists for the extension. In case a taxpayer is
45-13 granted an extension of time to file a return, the
45-14 commissioner may require a tentative return to be filed on
45-15 or before the due date of the return for which the
45-16 extension is granted. A tentative return shall be made on
45-17 the usual form, shall be plainly marked 'tentative,' shall
45-18 state the estimated amount of the tax believed to be due,
45-19 and shall be properly signed by the taxpayer.
45-20 (b) Any taxpayer may file an estimated income tax return
45-21 within the taxpayer's taxable year in compliance with
45-22 rules and regulations promulgated by the commissioner.
45-23 Estimated returns shall be plainly marked 'estimated.'
45-24 (c) In case of failure to file an income tax return on the
45-25 date prescribed for the filing, such date to be determined
45-26 with regard to any extension of time for filing, there
45-27 shall be added to the amount of tax required to be shown
45-28 on the return 5 percent of the amount of the tax if the
45-29 failure is for not more than one month with an additional
45-30 5 percent for each additional month or fraction of a month
45-31 during which the failure to file continues. No penalty
45-32 shall be assessed pursuant to this Code section which
45-33 exceeds in the aggregate 25 percent of the amount of the
45-34 tax. No penalty shall be assessed pursuant to this Code
45-35 section when it is shown that the failure is due to
45-36 reasonable cause and not due to willful neglect.
45-37 (d) For the purposes of this Code section, the amount of
45-38 tax required to be shown on the return shall be reduced by
45-39 the amount of any part of the tax which is paid on or
45-40 before the date prescribed for payment of the tax and by
45-41 the amount of any credit against the tax which may be
45-42 claimed on the return.
45-43 (e) With respect to any return, the amount of the addition
45-44 under subsection (a) of this Code section shall be reduced
-45- (Index)
LC 10 0949
46- 1 by the amount of the addition under paragraph (1) of
46- 2 subsection (a) of Code Section 48-7-36 for any month to
46- 3 which an addition to tax applies under both subsection (a)
46- 4 of this Code section and paragraph (1) of subsection (a)
46- 5 of Code Section 48-7-36.
46- 6 (f) No penalty due to late filing shall be incurred by a
46- 7 taxpayer if the taxpayer attaches to his return a copy of
46- 8 an approved extension of time within which to file his
46- 9 federal income tax return which has been granted by the
46-10 Internal Revenue Service and also files his state return
46-11 within the period of time specified in the extension. In
46-12 such instances, the taxpayer need not apply to the
46-13 commissioner for an extension of time within which to file
46-14 his state return.
46-15 48-7-25. (Index)
46-16 (a) The following organizations shall be exempt from
46-17 taxation imposed by Code Section 48-7-7 unless the
46-18 exemption is denied under subsection (b) or (c) of this
46-19 Code section:
46-20 (1) Those organizations described by Section 501(c),
46-21 501(d), 501(e), 664, or 401 of the Internal Revenue Code
46-22 of 1986. Organizations described in this paragraph shall
46-23 be exempt from taxation for state purposes in the same
46-24 manner and to the same extent as for federal purposes;
46-25 and
46-26 (2) Insurance companies which pay to the state a tax
46-27 upon premium income.
46-28 (b)(1) An organization requesting exemption under
46-29 paragraph (1) of subsection (a) of this Code section
46-30 shall file a written application with the commissioner.
46-31 The commissioner shall issue a determination letter or
46-32 ruling to an organization requesting the exemption and
46-33 shall either grant or disallow the requested exempt
46-34 status. Until a determination letter granting exempt
46-35 status is issued by the commissioner, no exempt status
46-36 shall exist. Those organizations which have an exempt
46-37 status in effect under Section 501(c), 501(d), 501(e),
46-38 664, or 401 of the Internal Revenue Code of 1986 on
46-39 January 1, 1987, shall retain the exempt status unless
46-40 revoked as provided by law. The commissioner may issue
46-41 rules governing the filing of written applications and
46-42 the issuance of determination letters.
-46- (Index)
LC 10 0949
47- 1 (2)(A) The commissioner may revoke the exempt status
47- 2 of any organization described in paragraph (1) of
47- 3 subsection (a) of this Code section when:
47- 4 (i) The Internal Revenue Service revokes the exempt
47- 5 status of the organization;
47- 6 (ii) The organization ceases to be organized or
47- 7 operated in the manner in which it was organized or
47- 8 operated at the time the exempt status was granted;
47- 9 (iii) The organization engages in any prohibited
47-10 transaction as set forth in the Internal Revenue
47-11 Code of 1986; or
47-12 (iv) There is any material change in the character
47-13 or purpose of the organization or in the mode of
47-14 operation of the organization.
47-15 (B) Revocation of an exempt status shall revoke the
47-16 exempt status retroactively to the time of the
47-17 occurrence of the disqualifying event or events. All
47-18 exempt organizations shall immediately notify the
47-19 commissioner in writing of the occurrence of any of
47-20 the disqualifying events described in subparagraph (A)
47-21 of this paragraph or of receipt by the organization of
47-22 a notice of intent to terminate its exempt status by
47-23 the Internal Revenue Service. The statute of
47-24 limitations governing the assessment of any taxes
47-25 determined to be due this state due to the revocation
47-26 of exempt status shall be tolled as of the date of the
47-27 occurrence of the disqualifying event or events
47-28 described in subparagraph (A) of this paragraph. The
47-29 commissioner at any time may require an organization
47-30 which is exempt from taxation to file an information
47-31 return stating the organization's gross income,
47-32 receipts, disbursements, accumulation of income, and
47-33 other data deemed necessary for the proper
47-34 administration of this Code section.
47-35 (c)(1) A tax is imposed on income of an organization
47-36 exempted pursuant to paragraph (1) of subsection (a) of
47-37 this Code section when the income is derived from trade
47-38 or business which is not related to exempt purposes of
47-39 organizations described in paragraph (1) of subsection
47-40 (a) of this Code section. This income shall be referred
47-41 to as unrelated business income and shall be the income
47-42 which is defined in Section 512 of the Internal Revenue
47-43 Code of 1986. The tax imposed on unrelated business
-47- (Index)
LC 10 0949
48- 1 income shall be at the rate provided in Code Section
48- 2 48-7-7.
48- 3 (2) If an organization is exempt under Section 501(c)(4)
48- 4 of the United States Internal Revenue Code of 1986, if
48- 5 the organization makes payments of death benefits as a
48- 6 result of the death of a member of the organization, and
48- 7 if payments have been made by the organization for at
48- 8 least five years prior to January 1, 1977, the payments
48- 9 shall be deductible from the unrelated business income
48-10 tax which might be owed by the organization. The payment
48-11 of such death benefits shall not operate to generate a
48-12 rebate or a refund. If the amount of death benefits paid
48-13 within the taxable year exceeds the unrelated business
48-14 income tax owed for the same taxable year, the excess
48-15 may be carried forward for a period of five years.
48-16 48-7-26. (Index)
48-17 (a) When the commissioner has reason to believe that any
48-18 taxpayer conducts his trade or business so as to distort
48-19 directly or indirectly his true net income or the net
48-20 income properly attributable to this state, whether by the
48-21 arbitrary shifting of income, through price fixing,
48-22 charges for service, or otherwise, as a result of which
48-23 the net income is arbitrarily assigned to one or another
48-24 unit in a group of taxpayers conducting business under a
48-25 substantially common control, the commissioner may require
48-26 the facts as he deems necessary for the proper computation
48-27 of the entire net income and the net income properly
48-28 attributable to this state. In determining the
48-29 computation, the commissioner shall consider the fair
48-30 profit which would normally arise from the conduct of the
48-31 trade or business.
48-32 (b)(1) The commissioner may determine the amount of
48-33 taxable income of any one or more corporations for a
48-34 calendar or fiscal year when a corporation:
48-35 (A) Subject to taxation under this chapter conducts
48-36 its business in such manner as to benefit either
48-37 directly or indirectly the members or stockholders of
48-38 the corporation or any person interested in the
48-39 business of the corporation by selling its products or
48-40 the goods or commodities in which it deals at less
48-41 than the fair price which might be obtained for the
48-42 goods or commodities;
-48- (Index)
LC 10 0949
49- 1 (B) A substantial portion of whose capital stock is
49- 2 directly or indirectly owned by another corporation
49- 3 acquires and disposes of the products of the
49- 4 corporation so owning a substantial portion of its
49- 5 stock in such a manner as to create a loss or improper
49- 6 net income for either of the corporations; or
49- 7 (C) Directly or indirectly owning a substantial
49- 8 portion of the stock of another corporation acquires
49- 9 and disposes of the products of the corporation of
49-10 which it so owns a substantial portion of the stock in
49-11 such a manner as to create a loss or improper net
49-12 income for either of the corporations.
49-13 (2) In his determination, the commissioner shall
49-14 consider the reasonable profits which, but for the
49-15 arrangement or understanding, might or could have been
49-16 obtained by the corporation or corporations subject to
49-17 taxation under this chapter from dealing in such
49-18 products, goods, or commodities.
49-19 48-7-27. (Index)
49-20 Whenever in the opinion of the commissioner it is
49-21 necessary to examine any copy of the federal income tax
49-22 returns of any taxpayer in order to audit properly the
49-23 state returns of the taxpayer, the commissioner shall have
49-24 the right to examine the federal returns and all
49-25 statements, inventories, and schedules in support of the
49-26 returns.
49-27 48-7-28. (Index)
49-28 (a) Except in accordance with proper judicial order or as
49-29 otherwise provided by law, it is unlawful for the
49-30 commissioner, other officer, employee, or agent, or any
49-31 former officer, employee, or agent to divulge or make
49-32 known in any manner the amount of income or any
49-33 particulars set forth or disclosed in any report or return
49-34 required under the law of this state or any return or
49-35 return information required by the Internal Revenue Code
49-36 when the information or return is received from the
49-37 Internal Revenue Service or submitted by the taxpayer as
49-38 provided by the laws of this state. Nothing contained in
49-39 this Code section shall be construed to prohibit the
49-40 publication of statistics so presented as to prevent the
49-41 identification of particular reports or returns and the
49-42 items thereof, or the inspection by the Attorney General
49-43 or other legal representative of the state, or use as
-49- (Index)
LC 10 0949
50- 1 evidence, of the report or return of a taxpayer in the
50- 2 event of any action or proceeding involving any tax
50- 3 liability of the taxpayer. Reports and returns shall be
50- 4 preserved for three years and thereafter until the
50- 5 commissioner orders them to be destroyed.
50- 6 (b) The commissioner may permit the commissioner of
50- 7 internal revenue of the United States, the proper officer
50- 8 of any state imposing an income tax similar to that
50- 9 imposed by this chapter, or the authorized representative
50-10 of either such officer to inspect the income tax returns
50-11 of any taxpayer, or may furnish to the officer or his
50-12 authorized representative an abstract of the return of
50-13 income of any taxpayer or supply him with information
50-14 concerning any item of income contained in any return or
50-15 disclosed by the report of any investigation of the income
50-16 or return of income of any taxpayer. The permission shall
50-17 be granted or the information shall be furnished to the
50-18 officer or his representative only if:
50-19 (1) The request is only for state tax information
50-20 including federal tax information required by the state
50-21 to be filed by the taxpayer with his state return;
50-22 (2) The requested information will be used solely for
50-23 tax purposes;
50-24 (3) The requesting state has a confidentiality statute
50-25 which complies with the requirements of Section
50-26 6103(p)(8) of the Internal Revenue Code; and
50-27 (4) The statutes of the United States or of such other
50-28 state, as the case may be, grant substantially similar
50-29 privileges to the proper officer of this state charged
50-30 with the administration of this chapter.
50-31 (c) The commissioner may permit the disclosure of
50-32 inventories, depreciable assets, accumulated depreciation,
50-33 and book value of depreciable assets to local tax
50-34 authorities in this state to be used solely for ad valorem
50-35 tax purposes, provided that the furnishing of the
50-36 information is not prohibited by Section 6103 of the
50-37 Internal Revenue Code; and provided, further, that the
50-38 furnishing of the information to the local tax authorities
50-39 shall not be deemed to change the confidential character
50-40 of the information, and any persons receiving the
50-41 information pursuant to this subsection shall be subject
50-42 to Code Section 48-7-29, relating to the sanctions to be
-50- (Index)
LC 10 0949
51- 1 imposed for the unauthorized disclosure of confidential
51- 2 material.
51- 3 (d) This Code section shall not be construed to prohibit
51- 4 persons or groups of persons other than employees of the
51- 5 department from having access to tax information where
51- 6 necessary for data processing operations and maintenance
51- 7 of data processing equipment, provided the persons or
51- 8 groups of persons have obtained prior approval from the
51- 9 commissioner and are subject to the direct security
51-10 control of department personnel during all periods of
51-11 access. Any person who divulges or makes known any tax
51-12 information obtained under this subsection shall be
51-13 subject to the same civil and criminal penalties as those
51-14 provided for divulgence of information by employees of the
51-15 department.
51-16 (e) Notwithstanding any other law, this Code section shall
51-17 remain in full force and effect unless specific reference
51-18 is made in such other law to this Code section and to the
51-19 disclosure of income tax information contained in any
51-20 report or return required under this Code section.
51-21 48-7-29. (Index)
51-22 (a) It shall be unlawful for any person to violate any
51-23 provision of Code Section 48-7-28 when the violation
51-24 involves the divulging of information concerning income
51-25 taxes.
51-26 (b) Any person who violates subsection (a) of this Code
51-27 section shall be guilty of a misdemeanor.
51-28 (c) In addition to the penalty provided in subsection (b)
51-29 of this Code section, if the offender is an officer or
51-30 employee of the state, he shall be dismissed from office
51-31 and shall be incapable of holding any public office in
51-32 this state for a period of five years after his dismissal.
51-33 48-7-30. (Index)
51-34 The total amount of tax imposed by this chapter on
51-35 corporations shall be paid to the commissioner on or
51-36 before March 15, following the close of the calendar year.
51-37 If the return of a corporation is made on the basis of a
51-38 fiscal year, the tax shall be paid to the commissioner on
51-39 or before the fifteenth day of the third month following
51-40 the close of the fiscal year.
51-41 48-7-31. (Index)
-51- (Index)
LC 10 0949
52- 1 (a) If any amount of tax imposed by this chapter is not
52- 2 paid on or before the last date prescribed for payment,
52- 3 interest on the payment at the rate specified in Code
52- 4 Section 48-2-40 shall be paid for the period from the last
52- 5 date prescribed for payment to the date paid.
52- 6 (b) The last date prescribed for payment of the tax shall
52- 7 be determined without regard to any:
52- 8 (1) Extension of time for payment; or
52- 9 (2) Notice and demand for payment issued by reason of
52-10 jeopardy prior to the last date otherwise prescribed for
52-11 the payment.
52-12 (c) If the amount of any tax imposed by this chapter is
52-13 reduced by reason of a carry back of a net operating loss,
52-14 the reduction in tax shall not affect the computation of
52-15 interest under this Code section for the period ending
52-16 with the last day of the taxable year in which the net
52-17 operating loss arises.
52-18 (d) Except as otherwise specifically provided by law:
52-19 (1) Interest prescribed under this Code section shall be
52-20 paid upon notice and demand and shall be assessed,
52-21 collected, and paid in the same manner as the tax. Any
52-22 reference to the tax imposed by this chapter shall be
52-23 deemed also to refer to interest imposed by this Code
52-24 section on the tax;
52-25 (2) No interest under this Code section shall be imposed
52-26 on the interest provided by this Code section;
52-27 (3) Interest shall be imposed under subsection (a) of
52-28 this Code section on any assessable penalty, additional
52-29 amount, or addition to the tax only if the assessable
52-30 penalty, additional amount, or addition to the tax is
52-31 not paid within ten days from the date of notice and
52-32 demand for the payment. Interest shall be imposed only
52-33 for the period from the date of the notice and demand to
52-34 the date of payment;
52-35 (4) If notice and demand are made for the payment of any
52-36 amount and if the amount is paid within ten days after
52-37 the date of the notice and demand, interest under this
52-38 Code section on the amount so paid shall not be imposed
52-39 for the period after the date of the notice and demand.
52-40 (e) Interest prescribed under this Code section may be
52-41 assessed and collected at any time during the period
-52- (Index)
LC 10 0949
53- 1 within which the tax to which the interest relates may be
53- 2 collected.
53- 3 48-7-32. (Index)
53- 4 (a) Except as otherwise provided in this Code section, the
53- 5 amount of income tax imposed by this chapter shall be
53- 6 assessed within the time periods specified in Code Section
53- 7 48-2-49.
53- 8 (b)(1) In the case of income received by a corporation,
53- 9 the tax shall be assessed within three years after the
53-10 return is filed, and any proceeding in court without
53-11 assessment for the collection of the tax shall begin
53-12 within 18 months after written request for the
53-13 commencement of the proceeding (filed after the return
53-14 is made) by the corporation. No such proceeding shall
53-15 begin after the expiration of three years from the date
53-16 the return is filed. This paragraph shall not apply in
53-17 the case of a corporation unless:
53-18 (A) The written request notifies the commissioner that
53-19 the corporation contemplates dissolution at or before
53-20 the expiration of the 18 month period;
53-21 (B) The dissolution is begun in good faith before the
53-22 expiration of the 18 month period; and
53-23 (C) The dissolution is completed.
53-24 (2) If the taxpayer omits from gross income an amount
53-25 properly includable in gross income which exceeds 25
53-26 percent of the amount of gross income less business
53-27 expenses stated in the return, the tax may be assessed
53-28 or a proceeding in court for the collection of the tax
53-29 may begin without assessment at any time within six
53-30 years after the return is filed.
53-31 (3) If the taxpayer omits from gross income an amount
53-32 properly includable in gross income as an amount
53-33 distributed in liquidation of a corporation, the tax may
53-34 be assessed or a proceeding in court for the collection
53-35 of the tax may begin without assessment at any time
53-36 within five years after the return is filed.
53-37 (c) When the assessment of any income tax has been made
53-38 within the period of limitation properly applicable to the
53-39 assessment, the tax may be collected by execution. The
53-40 general provisions for tax executions as contained in
-53- (Index)
LC 10 0949
54- 1 Chapter 3 of this title shall apply to executions pursuant
54- 2 to this subsection.
54- 3 (d)(1) When a taxpayer's amount of net income for any
54- 4 year under this chapter as returned to the United States
54- 5 Department of the Treasury is changed or corrected by
54- 6 the commissioner of internal revenue or other officer of
54- 7 the United States of competent authority, the taxpayer,
54- 8 within 180 days after final determination of the changed
54- 9 or corrected net income, shall make a return to the
54-10 commissioner of the changed or corrected income, and the
54-11 commissioner shall make assessment or the taxpayer shall
54-12 claim a refund based on the change or correction within
54-13 one year from the date the return required by this
54-14 paragraph is filed. If the taxpayer does not make the
54-15 return reflecting the changed or corrected net income
54-16 and the commissioner receives from the United States
54-17 government or one of its agents a report reflecting the
54-18 changed or corrected net income, the commissioner shall
54-19 make assessment for taxes due based on the change or
54-20 correction within five years from the date the report
54-21 from the United States government or its agent is
54-22 actually received.
54-23 (2) In the event the taxpayer fails to notify the
54-24 commissioner of the final determination of his United
54-25 States income taxes, the commissioner shall proceed to
54-26 determine, upon evidence that the commissioner has
54-27 brought to his attention or that he otherwise acquires,
54-28 the corrected income of the taxpayer for the fiscal or
54-29 calendar year. If additional tax is determined to be
54-30 due, the tax shall be assessed and collected. If it is
54-31 determined that there has been an overpayment of tax for
54-32 the year, the taxpayer, by his failure to notify the
54-33 commissioner as required in paragraph (1) of this
54-34 subsection, shall forfeit his right to any refund due by
54-35 reason of the change or correction. A taxpayer who so
54-36 fails to notify the commissioner, however, shall be
54-37 entitled to equitable recoupment of 90 percent of any
54-38 overpayment so determined against any additional tax
54-39 liability so determined, the remaining 10 percent of the
54-40 overpayment being totally forfeited as a penalty for
54-41 failure to make a return as required by paragraph (1) of
54-42 this subsection.
54-43 48-7-33. (Index)
-54- (Index)
LC 10 0949
55- 1 Whenever any corporation has been dissolved or the assets
55- 2 of the corporation for any reason have passed entirely
55- 3 from the control of the corporation into the possession of
55- 4 its former stockholders or other persons without the
55- 5 payment of income taxes due the state, the commissioner
55- 6 shall have the right to bring action against any or all
55- 7 persons possessing the assets for the collection of any
55- 8 income taxes that may be due the state up to the value of
55- 9 the assets. If the assets have come into the possession of
55-10 more than one person, each person shall have the right to
55-11 prorate the amount of the tax according to the value of
55-12 the assets coming into each person's possession.
55-13 48-7-34. (Index)
55-14 No action for the purpose of restraining the assessment or
55-15 collection of any tax under this chapter shall be
55-16 maintained in any court.
55-17 48-7-35. (Index)
55-18 Whenever the commissioner in his discretion determines
55-19 that a person is not liable for the tax for an entire year
55-20 because of moving into the state or moving out of the
55-21 state, he may prorate the amount of the tax due the state
55-22 and also may require the taxpayer to prorate any
55-23 exemptions on the basis of the time spent within the
55-24 state. The commissioner in his reasonable discretion shall
55-25 be the sole judge as to when this Code section shall
55-26 apply.
55-27 48-7-36. (Index)
55-28 (a)(1) In case of failure to pay:
55-29 (A) The amount shown as tax on a return on or before
55-30 the date prescribed for payment of the tax, such date
55-31 to be determined with regard to any extension of time
55-32 for payment, there shall be added to the amount of tax
55-33 required to be shown on the return one-half of 1
55-34 percent of the amount of the tax if the failure is for
55-35 not more than one month and with an additional
55-36 one-half of 1 percent for each additional month or
55-37 fraction of a month during which the failure
55-38 continues. For the purposes of this subparagraph, the
55-39 amount of tax shown on the return shall be reduced,
55-40 for the purpose of computing the addition for any
55-41 month, by the amount of any part of the tax which is
55-42 paid on or before the beginning of the month and by
-55- (Index)
LC 10 0949
56- 1 the amount of any credit against the tax which is
56- 2 claimed on the return;
56- 3 (B) Any amount in respect of any tax required to be
56- 4 shown on a return which is not so shown within ten
56- 5 days of the date of the notice and demand for the
56- 6 payment, the amount of tax stated in the notice and
56- 7 demand shall be increased by one-half of 1 percent of
56- 8 the amount of the tax if the failure is for not more
56- 9 than one month and by an additional one-half of 1
56-10 percent for each additional month or fraction of a
56-11 month during which the failure continues. For the
56-12 purposes of this subparagraph, the amount of tax
56-13 stated in the notice and demand shall be reduced, for
56-14 the purpose of computing the addition for any month,
56-15 by the amount of any part of the tax which is paid
56-16 before the beginning of the month.
56-17 (2) No penalty shall be assessed pursuant to this
56-18 subsection which exceeds in the aggregate 25 percent of
56-19 the amount of the tax or when it is shown that the
56-20 failure is due to reasonable cause and not due to
56-21 willful neglect.
56-22 (b) With respect to any return, the maximum amount of the
56-23 addition permitted under subparagraph (a)(1)(B) of this
56-24 Code section shall be reduced by the amount of the
56-25 addition under subsection (c) of Code Section 48-7-24
56-26 which is attributable to the tax for which the notice and
56-27 demand are made and which is not paid within ten days of
56-28 such notice and demand.
56-29 (c) If the amount required to be shown as tax on a return
56-30 is less than the amount shown as tax on the return,
56-31 subparagraph (a)(1)(A) of this Code section shall be
56-32 applied by substituting the lower amount.
56-33 (d) For purposes of subsections (e) and (f) of this Code
56-34 section, the term 'underpayment' means a deficiency as
56-35 defined in Code Section 48-7-2.
56-36 (e) If any part of any underpayment of tax required to be
56-37 shown on a return is due to a negligent or intentional
56-38 disregard of rules and regulations, but without intent to
56-39 defraud, an amount equal to 5 percent of the underpayment
56-40 shall be added to the tax.
56-41 (f) If any part of any underpayment of tax required to be
56-42 shown on a return is due to fraud, an amount equal to 50
-56- (Index)
LC 10 0949
57- 1 percent of the underpayment shall be added to the tax.
57- 2 This amount shall be in lieu of any amount determined
57- 3 under subsection (e) of this Code section. If any penalty
57- 4 is assessed under this subsection for an underpayment of
57- 5 tax which is required to be shown on a return, no penalty
57- 6 under Code Section 48-7-24 or subsection (a) of this Code
57- 7 section shall be assessed with respect to the same
57- 8 underpayment.
57- 9 48-7-37. (Index)
57-10 (a) 'Estimated tax' defined. For purposes of this Code
57-11 section, the term 'estimated tax' means the amount which
57-12 the corporation estimates as the amount of income tax
57-13 imposed by Code Section 48-7-7 less the amount which the
57-14 corporation estimates as the sum of credits allowable by
57-15 law against the tax.
57-16 (b) In general. Every domestic and foreign corporation
57-17 subject to taxation under Code Section 48-7-7 shall pay
57-18 estimated tax for the taxable year if its net income for
57-19 the taxable year as defined in Code Section 48-7-9 can
57-20 reasonably be expected to exceed $25,000.00.
57-21 48-7-38. (Index)
57-22 If the requirements of Code Section 48-7-37 are first met
57-23 as shown in the left-hand column of the following table,
57-24 then the estimated tax shall be due as shown in the
57-25 remaining columns:
The following percentages of the
estimated tax shall be paid on
the fifteenth day of the:
fourth sixth ninth twelfth
month month month month
of the of the of the of the
taxable taxable taxable taxable
year year year year
57-26 Before the first day of
57-27 the fourth month of the
57-28 taxable year 25 25 25 25
57-29 After the last day of
57-30 the third month and
57-31 before the first day of
57-32 the sixth month of the
57-33 taxable year 33 1/3 33 1/3 33 1/3
-57- (Index)
LC 10 0949
58- 1 After the last day of
58- 2 the fifth month and
58- 3 before the first day of
58- 4 the ninth month of the
58- 5 taxable year 50 50
58- 6 After the last day of
58- 7 the eighth month and
58- 8 before the first day of
58- 9 the twelfth month of
58-10 the taxable year 100
58-11 48-7-39. (Index)
58-12 (a) The amount of estimated tax paid under this chapter
58-13 for any taxable year shall be allowed as a credit to the
58-14 taxpayer against the taxpayer's income tax liability under
58-15 Code Section 48-7-7 for the taxable year.
58-16 (b) To the extent that the estimated tax credit, together
58-17 with other credits allowed by law, is in excess of the
58-18 taxpayer's income tax liability for a taxable year as
58-19 shown on an income tax return filed by the taxpayer for
58-20 that year, the overpayment shall be considered as taxes
58-21 erroneously paid and shall be credited or refunded as
58-22 provided in this subsection. The overpayment shall be
58-23 credited to the taxpayer's estimated income tax liability
58-24 for the succeeding taxable year unless the taxpayer claims
58-25 a refund for the overpayment. The commissioner may
58-26 consider any final return showing an overpayment as a
58-27 claim for refund per se. An overpayment shall bear no
58-28 interest if credit is given for the overpayment. Amounts
58-29 refunded as overpayments shall bear interest at the rate
58-30 of 9 percent per annum but only after 90 days from the
58-31 filing date of the final return showing the overpayment or
58-32 90 days from the due date of the final return, whichever
58-33 is later.
58-34 48-7-40. (Index)
58-35 The commissioner may disregard a fractional part of a
58-36 dollar in the allowance of any amount as a credit or
58-37 refund or in the assessment or collection of any amount as
58-38 a deficiency or underpayment.
58-39 48-7-41. (Index)
58-40 In the administration and enforcement of this chapter with
58-41 respect to a taxpayer whose income may be subject to the
58-42 current income tax payment laws of two or more tax
-58- (Index)
LC 10 0949
59- 1 jurisdictions, including this state, the commissioner may
59- 2 make reciprocal arrangements with the tax authorities of
59- 3 the other jurisdictions for the relief of the taxpayer
59- 4 from the multiple burden imposed by the operation of
59- 5 several current income tax payment laws."
PART III
SECTION 4.
59- 6 Code Section 2-7-154 of the Official Code of Georgia
59- 7 Annotated, relating to the powers of the Commissioner of
59- 8 Agriculture with respect to boll weevil eradication, is
59- 9 amended by striking in its entirety subparagraph (A) of
59-10 paragraph (8) and inserting in lieu thereof a new
59-11 subparagraph (A) to read as follows:
59-12 "(A) The Commissioner shall adopt rules and
59-13 regulations defining the criteria to be used in
59-14 determining financial hardship; provided, however,
59-15 that no exemption shall be granted to any cotton
59-16 grower who, after the amount of assessments and
59-17 penalties otherwise due has been subtracted from his
59-18 or her federal taxable net income, as defined in Code
59-19 Section 48-7-27 the United States Internal Revenue
59-20 Code of 1986, has a net income exceeding $15,000.00
59-21 for the year in which he seeks an exemption;".
SECTION 5.
59-22 Chapter 3 of Title 12 of the Official Code of Georgia
59-23 Annotated, relating to parks, historic areas, memorials, and
59-24 recreation, is amended by striking in its entirety Article
59-25 8, relating to nongame wildlife conservation and wildlife
59-26 habitat acquisition programs, and inserting in lieu thereof
59-27 the following:
"ARTICLE 8
59-28 12-3-600 through 12-3-602. (Index)
59-29 Reserved."
SECTION 6.
59-30 Part 2 of Article 2 of Chapter 12 of Title 16 of the
59-31 Official Code of Georgia Annotated, relating to bingo, is
59-32 amended by striking in its entirety Code Section 16-12-55,
59-33 relating to certification of tax exempt status of an
59-34 organization, and inserting in lieu thereof a new Code
59-35 Section 16-12-55 to read as follows:
-59- (Index)
LC 10 0949
60- 1 "16-12-55. (Index)
60- 2 The director shall upon the request of any prosecuting
60- 3 attorney or his designee certify the status of any
60- 4 organization as to that organization's exemption from
60- 5 payment of state income taxes as a nonprofit organization.
60- 6 The director shall also upon request issue a certificate
60- 7 indicating whether any particular organization holds a
60- 8 currently valid license to operate a bingo game. Such
60- 9 certificates properly executed shall be admissible in
60-10 evidence in any prosecution and Code Section 48-7-60
60-11 48-7-28, relative to the disclosure of income tax
60-12 information, shall not apply to the furnishing of such
60-13 certificate."
SECTION 7.
60-14 Chapter 15 of Title 17 of the Official Code of Georgia
60-15 Annotated, relating to victim compensation, is amended by
60-16 striking in its entirety Code Section 17-15-8, relating to
60-17 required findings and amount of award, and inserting in lieu
60-18 thereof a new Code Section 17-15-8 to read as follows:
60-19 "17-15-8. (Index)
60-20 (a) No award may be made unless the board or director
60-21 finds that:
60-22 (1) A crime was committed;
60-23 (2) The crime directly resulted in physical injury,
60-24 financial hardship, or death of the victim;
60-25 (3) Police records show that the crime was promptly
60-26 reported to the proper authorities. In no case may an
60-27 award be made where the police records show that such
60-28 report was made more than 72 hours after the occurrence
60-29 of such crime unless the board, for good cause shown,
60-30 finds the delay to have been justified; and
60-31 (4) The applicant has pursued restitution rights against
60-32 any person who committed the crime unless the board or
60-33 director determines that such action would not be
60-34 feasible.
60-35 The board, upon finding that any claimant or award
60-36 recipient has not fully cooperated with all law
60-37 enforcement agencies, may deny, reduce, or withdraw any
60-38 award.
-60- (Index)
LC 10 0949
61- 1 (b) Any award made pursuant to this chapter may be in an
61- 2 amount not exceeding actual expenses, including
61- 3 indebtedness reasonably incurred for medical expenses,
61- 4 loss of wages, funeral expenses, mental health counseling,
61- 5 or support for dependents of a deceased victim necessary
61- 6 as a direct result of the injury or hardship upon which
61- 7 the claim is based.
61- 8 (c)(1) Notwithstanding any other provisions of this
61- 9 chapter, no award made under the provisions of this
61-10 chapter shall exceed $1,000.00 in the aggregate;
61-11 provided, however, with respect to any claim filed with
61-12 the board as a result of a crime occurring on or after
61-13 July 1, 1994, no award made under the provisions of this
61-14 chapter payable to a victim and to all other claimants
61-15 sustaining economic loss because of injury to or death
61-16 of such victim shall exceed $5,000.00 in the aggregate.
61-17 (2) No award under this chapter for the following losses
61-18 shall exceed the maximum amount authorized:
61-19 Category Maximum Award
61-20 Lost Wages $ 5,000.00
61-21 Funeral Expenses 3,000.00
61-22 Financial Hardship or Loss of Support 5,000.00
61-23 Medical 5,000.00
61-24 Counseling 2,500.00
61-25 (d) In determining the amount of an award, the director
61-26 and board shall determine whether because of his or her
61-27 conduct the victim of such crime contributed to the
61-28 infliction of his or her injury or financial hardship, and
61-29 the director and board may reduce the amount of the award
61-30 or reject the claim altogether in accordance with such
61-31 determination.
61-32 (e) The director and board may reject an application for
61-33 an award when the claimant has failed to cooperate in the
61-34 verification of the information contained in the
61-35 application.
61-36 (f) Any award made pursuant to this chapter may be reduced
61-37 by or set off by the amount of any payments received or to
61-38 be received as a result of the injury:
61-39 (1) From or on behalf of the person who committed the
61-40 crime;
-61- (Index)
LC 10 0949
62- 1 (2) From any other private or public source, including
62- 2 an award of workers' compensation pursuant to the laws
62- 3 of this state,
62- 4 provided that private sources shall not include
62- 5 contributions received from family members or persons or
62- 6 private organizations making charitable donations to a
62- 7 victim.
62- 8 (g) No award made pursuant to this chapter is subject to
62- 9 garnishment, execution, or attachment other than for
62-10 expenses resulting from the injury which is the basis for
62-11 the claim. (h) An award made pursuant to this chapter shall not
62-13 constitute a payment which is treated as ordinary income
62-14 under either the provisions of Chapter 7 of Title 48 or,
62-15 to the extent lawful, under the United States Internal
62-16 Revenue Code.
62-17 (i)(h) Notwithstanding any other provisions of this
62-18 chapter to the contrary, no awards from state funds shall
62-19 be paid prior to July 1, 1989.
62-20 (j)(i) In any case where a crime results in death, the
62-21 spouse, children, parents, or siblings of such deceased
62-22 victim may be considered eligible for an award for the
62-23 cost of psychological counseling which is deemed necessary
62-24 as a direct result of said criminal incident. The maximum
62-25 award for said counseling expenses shall not exceed
62-26 $2,500.00 in the aggregate."
SECTION 8.
62-27 Code Section 19-11-9 of the Official Code of Georgia
62-28 Annotated, relating to the location of absent parents by the
62-29 Department of Human Resources, is amended by striking
62-30 subsection (c) in its entirety and inserting in lieu thereof
62-31 a new subsection (c) to read as follows:
62-32 "(c) In order to carry out the responsibilities imposed
62-33 under this article, the department may request information
62-34 and assistance from any governmental department, board,
62-35 commission, bureau, or agency in locating the absent
62-36 parents of children for whom the department has assignment
62-37 of child support rights. The commissioner of human
62-38 resources or his duly authorized representative shall be
62-39 entitled to have access to all pertinent information which
62-40 is within the custody of any governmental department,
62-41 board, commission, bureau, or agency including, but not
-62- (Index)
LC 10 0949
63- 1 limited to, income tax information contained in any report
63- 2 or return required under Articles 1 through 6 of Chapter 7
63- 3 of Title 48 by the Department of Revenue, including
63- 4 information from federal income tax returns required to be
63- 5 included as a part of any state report or return, which
63- 6 information but for this Code section would not be subject
63- 7 to disclosure pursuant to Code Section 48-7-60 and which
63- 8 is relative to such parents' location, income, or
63- 9 property, provided that any tax information secured from
63-10 the federal government by the Department of Revenue,
63-11 pursuant to the express provisions of Section 6103 of the
63-12 Internal Revenue Code, may not be disclosed by that
63-13 department pursuant to this subsection. Any person
63-14 receiving any tax information or tax returns under the
63-15 authority granted in this subsection shall be considered
63-16 either an officer or employee as those terms are used in
63-17 subsection (a) of Code Section 48-7-60; and, as such an
63-18 officer or employee, any person receiving any tax
63-19 information or returns under the authority of this Code
63-20 section shall be subject to Code Section 48-7-61, relating
63-21 to the sanctions to be imposed for the unauthorized
63-22 disclosure of confidential material."
SECTION 9.
63-23 Code Section 36-62-5.1 of the Official Code of Georgia
63-24 Annotated, relating to joint development authorities, is
63-25 amended by striking subsection (e) in its entirety and
63-26 inserting in lieu thereof a new subsection (e) to read as
63-27 follows:
63-28 "(e) A business located within the jurisdiction of a joint
63-29 authority established by two or more contiguous counties
63-30 will qualify for the greatest dollar amount of job tax
63-31 credits of any of the participating counties, regardless
63-32 of the county in which the business is physically located.
63-33 An additional $500.00 tax credit for each new full-time
63-34 employee position created is available for businesses
63-35 engaged in manufacturing, warehousing, distributing,
63-36 wholesaling, processing, research and development, or any
63-37 other project pursuant to paragraph (6) of Code Section
63-38 36-62-2 and located within the jurisdiction of the joint
63-39 authority or for any business engaged in any such activity
63-40 or activities the corporate headquarters of which is
63-41 located within the jurisdiction of the joint authority.
63-42 The $500.00 job tax credit authorized by this subsection
63-43 shall be subject to all the conditions and limitations
-63- (Index)
LC 10 0949
64- 1 specified under Code Section 48-7-40 48-7-15, as amended."
SECTION 10.
64- 2 Chapter 9 of Title 37 of the Official Code of Georgia
64- 3 Annotated, relating to payment of expenses for support,
64- 4 treatment, and care of patients in state institutions
64- 5 generally, is amended by striking in its entirety paragraph
64- 6 (3) of Code Section 37-9-2, relating to definitions
64- 7 applicable under said chapter, and inserting in lieu thereof
64- 8 a new paragraph (3) to read as follows:
64- 9 "(3) 'Income' 'Income,' except for patients who are
64-10 residents of other states, means that amount determined
64-11 by adding to the gross federal taxable income as now or
64-12 hereafter defined in the United States Internal Revenue
64-13 Code of 1986 Georgia income tax laws, minus deductions
64-14 and personal exemptions as authorized by such income tax
64-15 laws, the items listed in this paragraph, if such items
64-16 are not already included in gross federal taxable income
64-17 as defined above. For a patient who is a resident of
64-18 another state, 'income' means the same as above except
64-19 no deductions will be made for any deductions or
64-20 personal exemptions as authorized by Georgia income tax
64-21 laws. The following items are to be added,
64-22 respectively:
64-23 (A) Any amounts received by or on behalf of the person
64-24 liable for cost of care from accident insurance or
64-25 workers' compensation for total or partial incapacity
64-26 to work, plus the amount of any damages received by or
64-27 on behalf of the person liable for cost of care,
64-28 whether by suit or agreement, on account of such
64-29 injuries or sickness;
64-30 (B) The net income from property acquired by gift,
64-31 bequest, devise, or descent;
64-32 (C) Interest upon obligations of the United States
64-33 government or of this state or of a political
64-34 subdivision thereof;
64-35 (D) The net income from individual holdings of stock
64-36 in banks and trust companies incorporated under the
64-37 banking laws of this state or of the United States;
64-38 (E) Retirement income, social security benefits,
64-39 veterans' benefits, and any other benefits that could
64-40 be applied for the support of the patient;
-64- (Index)
LC 10 0949
65- 1 (F) The net income from any other assets, including
65- 2 but not limited to personal property, real property,
65- 3 or mixed property, and any other property or estate
65- 4 wherever located and in whatever form, inclusive of
65- 5 any assets sold or transferred within a period of 90
65- 6 days prior to the date services were first rendered to
65- 7 the patient by a hospital."
SECTION 11.
65- 8 Chapter 9 of Title 37 of the Official Code of Georgia
65- 9 Annotated, relating to payment of expenses for support,
65-10 treatment, and care of patients in state institutions
65-11 generally, is amended by striking in its entirety
65-12 subparagraph (F) of paragraph (5) of Code Section 37-9-2,
65-13 relating to definitions applicable under said chapter, and
65-14 inserting in lieu thereof a new subparagraph (F) to read as
65-15 follows:
65-16 "(F) A stepparent or any other person residing with
65-17 and providing support of a patient under 18 years of
65-18 age who has not been legally adopted by such
65-19 individual, with maximum liability limited to the
65-20 amount such stepparent or other individual is
65-21 authorized by Georgia federal income tax laws under
65-22 the United States Internal Revenue Code of 1986 to
65-23 claim as a standard deduction and personal exemption
65-24 for the patient; provided, however, that this
65-25 limitation shall not apply to liability pursuant to
65-26 other provisions of this chapter regarding hospital,
65-27 health, and other medical insurance, program, or plan
65-28 benefits or subrogation rights."
SECTION 12.
65-29 Chapter 9 of Title 37 of the Official Code of Georgia
65-30 Annotated, relating to payment of expenses for support,
65-31 treatment, and care of patients in state institutions
65-32 generally, is amended by striking in its entirety Code
65-33 Section 37-9-7, relating to authority of the Department of
65-34 Human Resources to inquire into and determine income and
65-35 assets, and inserting in lieu thereof a new Code Section
65-36 37-9-7 to read as follows:
65-37 "37-9-7. (Index)
65-38 (a) The department, through its duly authorized agents,
65-39 shall have the authority to investigate or otherwise
65-40 determine the income and assets of the patient or his
-65- (Index)
LC 10 0949
66- 1 estate and when necessary the income and assets of all
66- 2 other persons liable for the cost of care of such patient
66- 3 in order to determine ability to pay cost of care. All
66- 4 persons liable for cost of care must provide signed
66- 5 consent forms necessary to authorize and conduct an
66- 6 investigation to determine the income and assets of such
66- 7 persons in order to determine ability to pay cost of care.
66- 8 The department shall further have the authority to
66- 9 contract with any person, firm, or corporation which it
66-10 finds necessary to provide the information appropriate to
66-11 the carrying out of its duties under this chapter.
66-12 (b) The department shall require declarations to be filed
66-13 by the patient or other persons liable for cost of care
66-14 necessary to determine the assessments required by this
66-15 chapter and shall prescribe the form and content thereof.
66-16 All such declarations are to be regarded as essential to
66-17 carrying out the public policy of this state; and any
66-18 person who knowingly falsifies such declarations shall be
66-19 charged as for false swearing. Failure by the patient or
66-20 other persons liable for cost of care to (1) provide
66-21 information required by such declarations or (2) provide
66-22 signature of consent for the department to conduct an
66-23 investigation authorized by subsection (a) of this Code
66-24 section shall create a rebuttable presumption that the
66-25 patient or other persons liable for cost of care consent
66-26 to and agree with the assessment of the full cost of care,
66-27 and the declaration shall contain on its face,
66-28 conspicuously and in clear language, a statement to that
66-29 effect. (c) The department, through its duly authorized agents,
66-31 shall have access to Georgia income tax records for the
66-32 purpose of obtaining necessary information to enforce this
66-33 chapter. Upon the request of the department or its duly
66-34 authorized agents, the state revenue commissioner and his
66-35 agents or employees shall disclose such income tax
66-36 information contained in any report or return required
66-37 under Georgia law as may be necessary to enforce the
66-38 provisions of this chapter. Any tax information secured
66-39 from the federal government by the Department of Revenue
66-40 pursuant to express provisions of Section 6103 of the
66-41 Internal Revenue Code may not be disclosed by the
66-42 Department of Revenue pursuant to this subsection. Any
66-43 person receiving any tax information or tax returns under
66-44 the authority of this subsection shall be considered
66-45 either an officer or employee as those terms are used in
-66- (Index)
LC 10 0949
67- 1 subsection (a) of Code Section 48-7-60; and as such an
67- 2 officer or employee, any person receiving any tax
67- 3 information or returns under the authority of this
67- 4 subsection shall be subject to Code Section 48-7-61.
67- 5 (d)(c) Any evidence, records, or other information
67- 6 obtained by the department or its duly authorized agents
67- 7 pursuant to the authority of this Code section shall be
67- 8 confidential and shall be used by the department or its
67- 9 agents only for the purposes of enforcing this chapter and
67-10 shall not be released for any purpose other than a hearing
67-11 provided for by this chapter.
67-12 (e)(d) The department shall develop procedures to ensure
67-13 that persons with no other documentation or evidence may
67-14 sign an affidavit attesting to their indigent financial
67-15 status."
SECTION 13.
67-16 Article 1 of Chapter 13 of Title 44 of the Official Code of
67-17 Georgia Annotated, relating to constitutional exemptions
67-18 from levy and sale of property, is amended by striking in
67-19 its entirety Code Section 44-13-1.1, relating to the
67-20 definition of the term "dependent," and inserting in lieu
67-21 thereof a new Code Section 44-13-1.1 to read as follows:
67-22 "44-13-1.1. (Index)
67-23 As used in this article, the term 'dependent' means a
67-24 person whom the debtor may claim as a dependent for
67-25 federal income tax purposes pursuant to Code Section
67-26 48-7-26 the United States Internal Revenue Code of 1986."
SECTION 14.
67-27 Article 1 of Chapter 13 of Title 44 of the Official Code of
67-28 Georgia Annotated, relating to constitutional exemptions
67-29 from levy and sale of property, is amended by striking in
67-30 its entirety Code Section 44-13-20, relating to reversion of
67-31 property set apart for spouse, children, or dependents, and
67-32 inserting in lieu thereof a new Code Section 44-13-20 to
67-33 read as follows:
67-34 "44-13-20. (Index)
67-35 Property set apart pursuant to Code Section 44-13-2 for a
67-36 spouse, for a spouse and minor children, for minor
67-37 children alone, or for dependents of a debtor (1) upon the
67-38 death of the spouse or the spouse's remarriage, when set
67-39 apart to the spouse alone, (2) upon the attaining of the
-67- (Index)
LC 10 0949
68- 1 age of majority by the minor children or their marriage
68- 2 during minority, when set apart for the minor children,
68- 3 (3) upon the death or remarriage of the spouse and the
68- 4 attaining of the age of majority by the minor children or
68- 5 the marriage of the minor children, when set apart to the
68- 6 spouse and minor children, and (4) upon a former dependent
68- 7 person's no longer being eligible to be claimed by the
68- 8 debtor as a dependent for federal income tax purposes
68- 9 pursuant to Code Section 48-7-26 the United States
68-10 Internal Revenue Code of 1986, shall revert to the estate
68-11 from which it was set apart unless it was sold or
68-12 reinvested pursuant to this article, in which case this
68-13 Code section shall apply to and follow all the
68-14 reinvestments unless the fee simple has been sold as
68-15 provided in this article."
SECTION 15.
68-16 Article 2 of Chapter 2 of Title 48 of the Official Code of
68-17 Georgia Annotated, relating to the administration of the
68-18 Department of Revenue and certain tax laws, is amended by
68-19 striking in its entirety Code Section 48-2-56, relating to
68-20 liens for taxes and their priority, and inserting in lieu
68-21 thereof a new Code Section 48-2-56 to read as follows:
68-22 "48-2-56. (Index)
68-23 (a) Except as otherwise provided in this Code section,
68-24 liens for all taxes due the state or any county or
68-25 municipality in the state shall arise as of the time the
68-26 taxes become due and unpaid and all tax liens shall cover
68-27 all property in which the taxpayer has any interest from
68-28 the date the lien arises until such taxes are paid.
68-29 (b) Except as otherwise provided in this Code section,
68-30 liens for taxes are superior to all other liens and shall
68-31 be paid before any other debt, lien, or claim of any kind.
68-32 Liens for taxes shall rank among themselves as follows:
68-33 (1) Taxes due the state;
68-34 (2) Taxes due counties of the state;
68-35 (3) Taxes due school and other special tax districts of
68-36 the state; and
68-37 (4) Taxes due municipal corporations of the state.
68-38 (c) The lien for taxes imposed by Article 1 of Chapter 9
68-39 of this title, relating to motor fuel taxes, shall not
68-40 have priority as against:
-68- (Index)
LC 10 0949
69- 1 (1) Any bona fide mortgagee, holder, or transferee of a
69- 2 deed to secure debt; or
69- 3 (2) Any pledgee, judgment creditor, or purchaser of or
69- 4 from persons liable for the tax imposed by Article 1 of
69- 5 Chapter 9 of this title
69- 6 where the rights of such mortgagee, holder, or transferee
69- 7 of a deed to secure debt, pledgee, judgment creditor, or
69- 8 purchaser have attached prior to the time notice of the
69- 9 lien has been filed by the commissioner in the office of
69-10 the superior court of the county in which the principal
69-11 place of business is located or in the county where
69-12 property of the person liable for payment of the motor
69-13 fuel tax is located.
69-14 (d)(1) Liens for any ad valorem taxes shall cover the
69-15 property of taxpayers liable to tax from the time fixed
69-16 by law for valuation of the property in each year until
69-17 such taxes are paid and shall cover the property of tax
69-18 collectors or tax commissioners and their sureties from
69-19 the time of giving bond until all the taxes for which
69-20 they are responsible are paid.
69-21 (2) The lien for any ad valorem tax shall not be
69-22 superior to the title and operation of a security deed
69-23 when the tax represents an assessment upon property of
69-24 the taxpayer other than property specifically covered by
69-25 the title and operation of the security deed.
69-26 (3) When real property located within this state is
69-27 transferred between the date on which any ad valorem tax
69-28 lien on the property vests and the date on which the tax
69-29 evidenced by the tax lien becomes due and payable, the
69-30 ad valorem tax lien on the transferred property shall
69-31 not extend to cover any other real property of the
69-32 transferor.
69-33 (e) The lien for taxes imposed by the provisions of
69-34 Article 2 of Chapter 7 of this title, relating to certain
69-35 income taxes, shall:
69-36 (1) Arise and cover all property of the taxpayer as of
69-37 the time a tax execution for these taxes is entered upon
69-38 the general execution docket; and
69-39 (2) Not be superior to the lien of a prior recorded
69-40 instrument securing a bona fide debt.
-69- (Index)
LC 10 0949
70- 1 Before the lien provided for in this subsection shall
70- 2 attach to real property it shall be recorded in the county
70- 3 where the real property is located. (f) The lien for taxes imposed by the provisions of
70- 5 Article 5 of Chapter 7 of this title, relating to
70- 6 withholding taxes, shall: (1) Arise and attach to all property of the defaulting
70- 8 employer or other person required to deduct and withhold
70- 9 on the date of the assessment of the taxes by operation
70-10 of law or by action of the commissioner; (2) Not be superior to the lien of a prior recorded
70-12 instrument securing a bona fide debt; and (3) Not be superior to the lien of a subsequent bona
70-14 fide purchaser or lender for value recorded prior to the
70-15 time the execution for the tax has been entered on the
70-16 general execution docket in the office of the superior
70-17 court of the county in which the property affected is
70-18 located. Before the lien provided for in this subsection shall
70-20 attach to real property it shall be recorded in the county
70-21 where the real property is located.
70-22 (g)(f)(1) The lien of a specific or occupation tax shall
70-23 not be superior to the title and operation of a security
70-24 deed recorded prior to the time the execution for the
70-25 tax has been entered on the general execution docket in
70-26 the office of the clerk of the superior court of the
70-27 county in which the affected property is located.
70-28 (2) As used in this subsection, the term 'specific or
70-29 occupation tax' means all state, county, and municipal
70-30 taxes and all state licenses and fees except:
70-31 (A) The taxes imposed by Article 1 of Chapter 9 of
70-32 this title;
70-33 (B) Ad valorem taxes; and
70-34 (C) The taxes imposed by Article 2 of Chapter 7 of
70-35 this title.; and (D) The taxes imposed by Article 5 of Chapter 7 of
70-37 this title.
70-38 The term includes, but is not limited to, sales and use
70-39 taxes, corporate net worth taxes, estate taxes,
70-40 real-estate transfer taxes, taxes on financial
-70- (Index)
LC 10 0949
71- 1 institutions, alcohol and tobacco taxes, road taxes on
71- 2 motor carriers, excise taxes, license fees, tax
71- 3 liabilities of corporate officers and business
71- 4 successors, and tax collections of a person who is a
71- 5 dealer under Chapter 8 of this title relating to sales
71- 6 and use taxation.
71- 7 (h)(g) Liens for taxes existing prior to July 1, 1983,
71- 8 shall not be changed by this Code section. On and after
71- 9 July 1, 1983, this Code section shall govern the time of
71-10 creation of all tax liens and the priority of all tax
71-11 liens."
SECTION 16.
71-12 Code Section 48-6-93 of the Official Code of Georgia
71-13 Annotated, relating to the local business license tax for
71-14 depository financial institutions, is amended by striking
71-15 subsection (e) in its entirety and inserting in lieu thereof
71-16 a new subsection (e) to read as follows:
71-17 "(e) Any tax paid by a depository financial institution
71-18 pursuant to this Code section and Code Section 48-6-95
71-19 shall be credited dollar for dollar against any state
71-20 corporate income tax liability of such institution for the
71-21 tax year during which any business and occupation tax
71-22 authorized by this Code section is paid. Such credit
71-23 shall be subject to the provisions contained in paragraph
71-24 (10) of subsection (b) of Code Section 48-7-21 48-7-7."
SECTION 17.
71-25 Code Section 48-11-14 of the Official Code of Georgia
71-26 Annotated, relating to registration, reports, and tax
71-27 payments of persons acquiring cigars and cigarettes subject
71-28 to tax under Code Section 48-11-13, is amended by striking
71-29 subsection (d) in its entirety and inserting in lieu thereof
71-30 a new subsection (d) to read as follows:
71-31 "(d) Except as otherwise provided in this Code section,
71-32 the sanctions and penalties set forth in Code Sections
71-33 48-11-15, 48-11-17, 48-11-18, and 48-11-20 through
71-34 48-11-24 and in Code Sections 48-7-2 48-7-3, 48-10-16, and
71-35 48-13-38 shall be imposed where applicable for any
71-36 violations of this chapter by consumers."
SECTION 18.
71-37 Chapter 1 of Title 49 of the Official Code of Georgia
71-38 Annotated, relating to general provisions applicable to
-71- (Index)
LC 10 0949
72- 1 social services, is amended by striking in its entirety Code
72- 2 Section 49-1-9, relating to the Home Delivered Meals,
72- 3 Transportation Services for the Elderly, and Preschool
72- 4 Children with Special Needs Fund, and inserting in lieu
72- 5 thereof the following:
72- 6 "49-1-9. (Index)
72- 7 Reserved."
SECTION 19.
72- 8 Code Section 50-27-3 of the Official Code of Georgia
72- 9 Annotated, relating to definitions applicable to the
72-10 "Georgia Lottery for Education Act," is amended by striking
72-11 paragraph (13) in its entirety and inserting in lieu thereof
72-12 a new paragraph (13) to read as follows:
72-13 "(13) 'Minority business' means any business which is
72-14 owned by:
72-15 (A) An individual who is a member of a minority who
72-16 reports as his personal income for Georgia federal
72-17 income tax purposes the income of such business;
72-18 (B) A partnership in which a majority of the ownership
72-19 interest is owned by one or more members of a minority
72-20 who report as their personal income for Georgia
72-21 federal income tax purposes more than 50 percent of
72-22 the income of the partnership; or
72-23 (C) A corporation organized under the laws of this
72-24 state in which a majority of the common stock is owned
72-25 by one or more members of a minority who report as
72-26 their personal income for Georgia federal income tax
72-27 purposes more than 50 percent of the distributed
72-28 earnings of the corporation."
PART IV
SECTION 20.
72-29 Part I and this part of this Act shall become effective upon
72-30 approval by the Governor or upon becoming law without such
72-31 approval. Parts II and III of this Act shall become
72-32 effective on January 1, 2002.
SECTION 21.
72-33 All laws and parts of laws in conflict with this Act are
72-34 repealed.
-72- (Index)
Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97