HB 175 - Occupation tax levy; classi- fication of businesses
Georgia House of Representatives - 1995/1996 Sessions
HB 175 - Occupation tax levy; classi- fication of businesses
1. Culbreth 132nd 2. Buck 135th 3. Smyre 136th
4. Royal 164th 5. Bates 179th 6. Hugley 133rd
House Comm: SPCA / Senate Comm: F&PU /
House Vote: Yeas 168 Nays 0 Senate Vote: Yeas 51 Nays 1
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House Action Senate
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1/11/95 Read 1st Time 2/20/95
1/12/95 Read 2nd Time 2/28/95
2/14/95 Favorably Reported 2/27/95
Sub Committee Amend/Sub Am
2/17/95 Read 3rd Time 3/10/95
2/17/95 Passed/Adopted 3/10/95
CSFA Comm/Floor Amend/Sub CAFA
3/15* Amend/Sub Agreed To 3/15*
3/29/95 Sent to Governor
4/11/95 Signed by Governor
297 Act/Veto Number
4/11/95 Effective Date
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House Agrees to Senate Amendment as Amended by House
Senate Agrees to House Amendment to Senate Amendment
Code Sections amended: 48-13-1, 48-13-2, 48-13-3, 48-13-4, 48-13-5, 48-13-6,
48-13-7, 48-13-8, 48-13-9, 48-13-10, 48-13-11, 48-13-12, 48-13-13, 48-13-14,
48-13-15, 48-13-16, 48-13-17, 48-13-18, 48-13-19, 48-13-20, 48-13-21, 48-13-22,
48-13-23, 48-13-24, 48-13-25, 48-13-26, 48-13-27, 48-13-28
HB 175 HB 175/AP
H. B. No. 175 (AS PASSED HOUSE AND SENATE)
By: Representatives Culbreth of the 132nd, Buck of the
135th, Smyre of the 136th, Royal of the 164th, Bates of the
179th and others
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 13 of Title 48 of the Official Code of
1- 2 Georgia Annotated, relating to specific, business, and
1- 3 occupation taxes, so as to repeal provisions relating to
1- 4 occupation taxes and regulatory fees; to revise extensively
1- 5 provisions relating to occupation taxes and regulatory fees;
1- 6 to provide that certain transfers between or among wholly
1- 7 owned partnerships or other entities and proceeds from sales
1- 8 to customers outside the state shall not be gross receipts;
1- 9 to clarify the definition of the term "location or office";
1-10 to define an employee; to clarify that local governments are
1-11 not required to levy occupation taxes and regulatory fees;
1-12 to authorize local governments to provide by local ordinance
1-13 or resolution for requiring information regarding the site
1-14 of any location or office and payment of occupation taxes or
1-15 regulatory fees to other local governments; to change
1-16 provisions relating to public hearings; to prohibit
1-17 differential regulatory fees for businesses which do not
1-18 have a location within the geographical jurisdiction of a
1-19 local government; to clarify that no local government is
1-20 authorized to use regulatory fees as a means of raising
1-21 revenue for general purposes; to provide that all businesses
1-22 or practitioners shall be classified by the same criterion
1-23 or combination of criteria; to permit the use of more than
1-24 one criterion for classification; to allow a flat fee
1-25 classification; to change the method of computing the number
1-26 of employees; to permit the use of more than one rate of
1-27 taxation within the same profitability classification; to
1-28 permit the use of more than one rate of taxation per
1-29 employee; to prohibit a taxation rate greater than the rate
1-30 applied to the same dollar range of gross receipts in
1-31 another classification which includes a business with a
1-32 higher profitability ratio; to provide for tax credits; to
1-33 provide an illustrative list of exemptions, reductions, and
1-34 credits; to prohibit fees for the cost of ascertaining
1-35 whether a business has paid occupation tax to another local
1-36 government; to exempt nonprofit organizations and state and
1-37 local authorities; to permit local governments to provide
H. B. No. 175
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HB 175/AP
2- 1 for a due date for occupation taxes and regulatory fees in
2- 2 the local ordinance; to provide for interest on delinquent
2- 3 occupation taxes, regulatory fees, and administrative fees;
2- 4 to provide that regulatory fees shall not be reduced for
2- 5 businesses commencing operation on or after July 1; to
2- 6 authorize local governments to allow payment of the lesser
2- 7 computation of taxes and fees in certain situations; to
2- 8 provide that counties and municipal corporations shall enact
2- 9 ordinances and resolutions in compliance with this Act in
2-10 certain circumstances; to provide for one or more public
2-11 hearings regarding the use of additional revenue in any year
2-12 when revenue from occupation taxes is greater than revenue
2-13 from occupation taxes in the preceding year; to provide for
2-14 related matters; to provide an effective date; to repeal
2-15 conflicting laws; and for other purposes.
SECTION 1.
2-16 Chapter 13 of Title 48 of the Official Code of Georgia
2-17 Annotated, relating to specific, business, and occupation
2-18 taxes, is amended by repealing in its entirety Article 1,
2-19 relating to general provisions relative to such taxes, and
2-20 inserting in lieu thereof the following:
"ARTICLE 1
2-21 48-13-1. (Index)
2-22 As used in this chapter, the term 'in towns or cities'
2-23 means within one mile of villages, towns, or cities.
2-24 48-13-2. (Index)
2-25 No export tax shall be imposed upon any item manufactured
2-26 or produced in this state and shipped by the manufacturer
2-27 or producer for sale outside the state.
2-28 48-13-3. (Index)
2-29 No county, municipality, or district shall levy or collect
2-30 any capitation tax whatever, except street tax.
2-31 48-13-4. (Index)
2-32 (a) It shall be unlawful for the state or any county,
2-33 municipality, airport authority, district, or other
2-34 political subdivision to levy or collect a tax, fee, head
2-35 charge, or other charge, directly or indirectly, on:
2-36 (1) Persons traveling in air commerce, whether on
2-37 regularly scheduled commercial airlines, chartered air
2-38 flights, or in privately owned civil aircraft;
H. B. No. 175
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3- 1 (2) The carriage of persons traveling in air commerce;
3- 2 or
3- 3 (3) The sale of air transportation or on the gross
3- 4 receipts derived from air transportation.
3- 5 (b) This Code section shall not be construed to prohibit
3- 6 the state or any county, municipality, airport authority,
3- 7 district, or other political subdivision:
3- 8 (1) From levying or collecting any property, income,
3- 9 franchise, sale, use, or other tax otherwise authorized
3-10 by law; or
3-11 (2) Which owns or operates an airport from levying or
3-12 collecting reasonable rental charges, landing fees,
3-13 license fees, permit fees, and other service charges for
3-14 the use of airport facilities and related facilities
3-15 from aircraft owners, operators, persons selling or
3-16 providing goods or services to the owners or operators
3-17 or to the public, and others, when otherwise allowed by
3-18 law.
3-19 48-13-5. (Index)
3-20 As used in this article, the term:
3-21 (1) 'Administrative fee' means a component of an
3-22 occupation tax which approximates the reasonable cost of
3-23 handling and processing the occupation tax.
3-24 (1.1) 'Employee' means an individual whose work is
3-25 performed under the direction and supervision of the
3-26 employer and whose employer withholds FICA, federal
3-27 income tax, or state income tax from such individual's
3-28 compensation or whose employer issues to such individual
3-29 for purposes of documenting compensation a form I.R.S.
3-30 W-2 but not a form I.R.S. 1099.
3-31 (2)(A) 'Gross receipts' means total revenue of the
3-32 business or practitioner for the period, including
3-33 without being limited to the following:
3-34 (i) Total income without deduction for the cost of
3-35 goods sold or expenses incurred;
3-36 (ii) Gain from trading in stocks, bonds, capital
3-37 assets, or instruments of indebtedness;
3-38 (iii) Proceeds from commissions on the sale of
3-39 property, goods, or services;
H. B. No. 175
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4- 1 (iv) Proceeds from fees charged for services
4- 2 rendered; and
4- 3 (v) Proceeds from rent, interest, royalty, or
4- 4 dividend income.
4- 5 (B) Gross receipts shall not include the following:
4- 6 (i) Sales, use, or excise taxes;
4- 7 (ii) Sales returns, allowances, and discounts;
4- 8 (iii) Interorganizational sales or transfers between
4- 9 or among the units of a parent-subsidiary controlled
4-10 group of corporations, as defined by 26 U.S.C.
4-11 Section 1563(a)(1), or between or among the units of
4-12 a brother-sister controlled group of corporations,
4-13 as defined by 26 U.S.C. Section 1563(a)(2), or
4-14 between or among wholly owned partnerships or other
4-15 wholly owned entities;
4-16 (iv) Payments made to a subcontractor or an
4-17 independent agent; and
4-18 (v) Governmental and foundation grants, charitable
4-19 contributions, or the interest income derived from
4-20 such funds, received by a nonprofit organization
4-21 which employs salaried practitioners otherwise
4-22 covered by this chapter, if such funds constitute 80
4-23 percent or more of the organization's receipts.; and
4-24 (vi) Proceeds from sales to customers outside the
4-25 state.
4-26 (3) 'Location or office' shall include any structure or
4-27 vehicle where a business, profession, or occupation is
4-28 conducted, but shall not include a temporary or
4-29 construction work site which serves a single customer or
4-30 project or a vehicle used for sales or delivery by a
4-31 business or practitioner of a profession or occupation
4-32 which has a location or office.
4-33 (4) 'Occupation tax' means a tax levied on persons,
4-34 partnerships, corporations, or other entities for
4-35 engaging in an occupation, profession, or business and
4-36 enacted by a local government as a revenue-raising
4-37 ordinance or resolution.
4-38 (5) 'Practitioners of professions and occupations' shall
4-39 not include a practitioner who is an employee of a
4-40 business, if the business pays an occupation tax.
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5- 1 (6) 'Regulatory fees' means payments, whether designated
5- 2 as license fees, permit fees, or by another name, which
5- 3 are required by a local government as an exercise of its
5- 4 police power and as a part of or as an aid to regulation
5- 5 of an occupation, profession, or business. The amount
5- 6 of a regulatory fee shall approximate the reasonable
5- 7 cost of the actual regulatory activity performed by the
5- 8 local government. A regulatory fee may not include an
5- 9 administrative fee. Regulatory fees do not include
5-10 development impact fees as defined by paragraph (8) of
5-11 Code Section 36-71-2 or other costs or conditions of
5-12 zoning or land development.
5-13 48-13-6. (Index)
5-14 (a) Except as to those businesses and practitioners of
5-15 professions and occupations excluded by subsection (a) of
5-16 Code Section 48-13-16, the governing authority of each
5-17 county is authorized but not required to provide by local
5-18 ordinance or resolution for the levy, assessment, and
5-19 collection of occupation tax on those businesses and
5-20 practitioners of professions and occupations with one or
5-21 more locations or offices in the unincorporated part of
5-22 the county and to provide for the punishment of violation
5-23 of such a local ordinance or resolution. The governing
5-24 authority of each county is authorized to classify
5-25 businesses and practitioners of professions and
5-26 occupations and to assess different taxes on different
5-27 classes of businesses and practitioners. The governing
5-28 authority of each county is authorized to provide by local
5-29 ordinance or resolution for requiring information from
5-30 businesses and practitioners of professions and
5-31 occupations doing business in the unincorporated part of
5-32 the county regarding the site of any location or office
5-33 and payment of occupation taxes or regulatory fees to
5-34 other local governments and to provide for the punishment
5-35 for violation of such a local ordinance or resolution.
5-36 This article supersedes any provision of local law
5-37 authorizing such taxes.
5-38 (b) Except as to those businesses and practitioners of
5-39 professions and occupations excluded by subsection (a) of
5-40 Code Section 48-13-16, the governing authority of each
5-41 municipal corporation is authorized but not required to
5-42 provide by local ordinance or resolution for the levy,
5-43 assessment, and collection of occupation tax on those
5-44 businesses and practitioners of professions and
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6- 1 occupations which have one or more locations or offices
6- 2 within the corporate limits and to provide for the
6- 3 punishment of violation of such a local ordinance or
6- 4 resolution. The governing authority of each municipal
6- 5 corporation is authorized to classify businesses and
6- 6 practitioners of professions and occupations and to assess
6- 7 different taxes on different classes of businesses and
6- 8 practitioners. The governing authority of each municipal
6- 9 corporation is authorized to provide by local ordinance or
6-10 resolution for requiring information from businesses and
6-11 practitioners of professions and occupations doing
6-12 business within the corporate limits regarding the site of
6-13 any location or office and payment of occupation taxes or
6-14 regulatory fees to other local governments and to provide
6-15 for the punishment for violation of such a local ordinance
6-16 or resolution. This article supersedes any provision of
6-17 local law or city charter authorizing such taxes.
6-18 (c) After January 1, 1996 the effective date of this Act,
6-19 any local government shall conduct at least one public
6-20 hearing before adopting any ordinance or resolution which
6-21 will increase regarding the occupation tax.
6-22 48-13-7. (Index)
6-23 (a) The governing authority of each county is authorized
6-24 to provide by local ordinance or resolution for the levy,
6-25 assessment, and collection of occupation tax on those
6-26 businesses and practitioners of professions and
6-27 occupations with no location or office in the state in
6-28 accordance with this Code section and to provide for the
6-29 punishment of violation of such a local ordinance or
6-30 resolution if the business or practitioner:
6-31 (1) Has one or more employees or agents who exert
6-32 substantial efforts within the unincorporated part of
6-33 the county for the purpose of soliciting business or
6-34 serving customers or clients; or
6-35 (2) Owns personal or real property which generates
6-36 income and which is located in the unincorporated part
6-37 of the county.
6-38 (b) The governing authority of each municipal corporation
6-39 is authorized to provide by local ordinance or resolution
6-40 for the levy, assessment, and collection of occupation tax
6-41 on those businesses and practitioners of professions and
6-42 occupations with no location or office in the state in
6-43 accordance with this Code section and to provide for the
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7- 1 punishment of violation of such a local ordinance or
7- 2 resolution if the business or practitioner:
7- 3 (1) Has one or more employees or agents who exert
7- 4 substantial efforts within the corporate limits for the
7- 5 purpose of soliciting business or serving customers or
7- 6 clients; or
7- 7 (2) Owns personal or real property which generates
7- 8 income and which is located in the corporate limits.
7- 9 (c) This article supersedes any provisions of local law or
7-10 city charter authorizing such taxes.
7-11 (d) Local governments levying occupation tax according to
7-12 this Code section shall comply with Code Sections 48-13-10
7-13 through 48-13-13, except that: gross receipts of a
7-14 business or practitioner for purposes of this Code section
7-15 shall include only those gross receipts reasonably
7-16 attributable to sales or services in this state; employees
7-17 shall include only those employees engaged in substantial
7-18 efforts within this state; and nation-wide profitability
7-19 ratios shall apply only to types of business transacted
7-20 within this state.
7-21 (e) Businesses and practitioners subject to this Code
7-22 section shall be required to pay occupation tax to only
7-23 one local government in this state, the local government
7-24 for the municipal corporation or county in which the
7-25 largest dollar volume of business is done or service is
7-26 performed by the individual business or practitioner.
7-27 (f) If a business or practitioner subject to this Code
7-28 section provides to the local government in this state
7-29 which is authorized to levy occupation tax on such
7-30 business or practitioner proof of payment of a local
7-31 business or occupation tax in another state which purports
7-32 to tax the business's or practitioner's sales or services
7-33 in this state, the business or practitioner shall be
7-34 exempt from local occupation tax in this state.
7-35 48-13-8. (Index)
7-36 (a) The governing authority of each county is authorized
7-37 but not required to provide by local ordinance or
7-38 resolution for the imposition and collection of regulatory
7-39 fees on businesses and practitioners of professions and
7-40 occupations doing business in the unincorporated part of
7-41 the county and to provide for the punishment of violation
7-42 of such a local ordinance or resolution. Classifying
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8- 1 businesses and practitioners of professions and
8- 2 occupations according to whether such businesses and
8- 3 practitioners have a location within the unincorporated
8- 4 part of the county and imposing and collecting
8- 5 differential regulatory fees on the basis of such a
8- 6 classification is prohibited. This article supersedes any
8- 7 provision of local law authorizing such regulatory fees.
8- 8 (b) The governing authority of each municipal corporation
8- 9 is authorized but not required to provide by local
8-10 ordinance or resolution for the imposition and collection
8-11 of regulatory fees on businesses and practitioners of
8-12 professions and occupations doing business within the
8-13 corporate limits and to provide for the punishment of
8-14 violation of such a local ordinance or resolution.
8-15 Classifying businesses and practitioners of professions
8-16 and occupations according to whether such businesses and
8-17 practitioners have a location within the corporate limits
8-18 and imposing and collecting differential regulatory fees
8-19 on the basis of such a classification is prohibited. This
8-20 article supersedes any provision of local law or city
8-21 charter authorizing such fees.
8-22 48-13-9. (Index)
8-23 (a) A local government is authorized to require a business
8-24 or practitioner of a profession or occupation to pay a
8-25 regulatory fee only if the local government customarily
8-26 performs investigation or inspection of such businesses or
8-27 practitioners of such profession or occupation as
8-28 protection of the public health, safety, or welfare or in
8-29 the course of enforcing a state or local building, health,
8-30 or safety code, but no local government is authorized to
8-31 use regulatory fees as a means of raising revenue for
8-32 general purposes; provided that the amount of a regulatory
8-33 fee shall approximate the reasonable cost of the actual
8-34 regulatory activity performed by the local government.
8-35 (b) Examples of businesses or practitioners of professions
8-36 or occupations which may be subject to regulatory fees of
8-37 local governments include, but are expressly not limited
8-38 to, the following:
8-39 (1) Building and construction contractors,
8-40 subcontractors, and workers;
8-41 (2) Carnivals;
8-42 (3) Taxicab and limousine operators;
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9- 1 (4) Tattoo artists;
9- 2 (5) Stables;
9- 3 (6) Shooting galleries and firearm ranges;
9- 4 (7) Scrap metal processors;
9- 5 (8) Pawnbrokers;
9- 6 (9) Food service establishments;
9- 7 (10) Dealers in precious metals;
9- 8 (11) Firearms dealers;
9- 9 (12) Peddlers;
9-10 (13) Parking lots;
9-11 (14) Nursing and personal care homes;
9-12 (15) Newspaper vending boxes;
9-13 (16) Modeling agencies;
9-14 (17) Massage parlors;
9-15 (18) Landfills;
9-16 (19) Auto and motorcycle racing;
9-17 (20) Boarding houses;
9-18 (21) Businesses which provide appearance bonds;
9-19 (22) Boxing and wrestling promoters;
9-20 (23) Hotels and motels;
9-21 (24) Hypnotists;
9-22 (25) Handwriting analysts;
9-23 (26) Health clubs, gyms, and spas;
9-24 (27) Fortunetellers;
9-25 (28) Garbage collectors;
9-26 (29) Escort services;
9-27 (30) Burglar and fire alarm installers; and
9-28 (31) Locksmiths.
9-29 (c) Examples of businesses and practitioners of
9-30 professions and occupations which local governments are
9-31 not authorized to subject to regulatory fees include, but
9-32 are expressly not limited to, the following:
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10- 1 (1) Lawyers;
10- 2 (2) Physicians licensed under Chapter 34 of Title 43;
10- 3 (3) Osteopaths licensed under Chapter 34 of Title 43;
10- 4 (4) Chiropractors;
10- 5 (5) Podiatrists;
10- 6 (6) Dentists;
10- 7 (7) Optometrists;
10- 8 (8) Psychologists;
10- 9 (9) Veterinarians;
10-10 (10) Landscape architects;
10-11 (11) Land surveyors;
10-12 (12) Practitioners of physiotherapy;
10-13 (13) Public accountants;
10-14 (14) Embalmers;
10-15 (15) Funeral directors;
10-16 (16) Civil, mechanical, hydraulic, or electrical
10-17 engineers;
10-18 (17) Architects;
10-19 (18) Marriage and family therapists, social workers, and
10-20 professional counselors;
10-21 (19) Dealers of motor vehicles, as defined in paragraph
10-22 (1) of Code Section 10-1-622; and
10-23 (20) Any other business, profession, or occupation for
10-24 which state licensure or registration is required by
10-25 state law, unless the state law regulating such
10-26 business, profession, or occupation specifically allows
10-27 for regulation by local governments.
10-28 (d) This Code section shall not be construed to repeal
10-29 other general laws which allow or require regulation of
10-30 businesses, occupations, or professions by local
10-31 governments.
10-32 48-13-10. (Index)
10-33 (a) In determining the amount of occupation tax to be
10-34 levied on an individual business or practitioner, local
10-35 governments shall classify a business or practitioner all
H. B. No. 175
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11- 1 businesses or practitioners by the same criterion or
11- 2 combination of criteria. To assure uniformity, each and
11- 3 every business and practitioner shall be classified by the
11- 4 same criterion or combination of criteria. The criteria
11- 5 used for classification shall by be one or more than o
11- 6 of the following criteria:
11- 7 (1) The number of employees of the business or
11- 8 practitioner as computed on a full-time position basis
11- 9 or full-time position equivalent basis, provided that
11-10 for the purposes of this computation an employee who
11-11 works 40 hours or more weekly shall be considered a
11-12 full-time employee and that the average weekly hours of
11-13 employees who work less than 40 hours weekly shall be
11-14 added and such sum shall be divided by 40 to produce
11-15 full-time position equivalents;
11-16 (2) Profitability ratio for the type of business,
11-17 profession, or occupation as measured by nation-wide
11-18 averages derived from statistics, classifications, or
11-19 other information published by the United States Office
11-20 of Management and Budget, the United States Internal
11-21 Revenue Service, or successor agencies of the United
11-22 States; or
11-23 (3) Gross receipts of the business or practitioner in
11-24 combination with the profitability ratio for the type of
11-25 business, profession, or occupation as measured by
11-26 nation-wide averages derived from statistics,
11-27 classifications, or other information published by the
11-28 United States Office of Management and Budget, the
11-29 United States Internal Revenue Service, or successor
11-30 agencies of the United States.; or
11-31 (4) A flat fee classification which is applied uniformly
11-32 to all businesses and practitioners of professions and
11-33 occupations, so that each business or practitioner pays
11-34 the same amount of tax for each office or location.
11-35 (b) Local governments which classify businesses and
11-36 practitioners by the criterion described in paragraph (3)
11-37 of subsection (a) of this Code section are authorized but
11-38 not required to limit the geographic area in which gross
11-39 receipts shall be taxed to that local government's
11-40 jurisdiction.
11-41 (c) Local governments which classify by the criteria
11-42 described in paragraph (2) or (3) of subsection (a) of
11-43 this Code section shall rank the businesses and
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12- 1 practitioners according to the profitability ratio
12- 2 described in paragraph (2) of subsection (a) of this Code
12- 3 section. After such ranking, the local government shall
12- 4 establish profitability classifications which do not
12- 5 overlap before setting a single rate one or more rates of
12- 6 taxation for each classification. Such local governments
12- 7 are not authorized to apply to any classification a rate
12- 8 of taxation greater than the rate applied to another
12- 9 classification which includes a business or practitioner
12-10 with a higher profitability ratio, except that local
12-11 governments are authorized but not required to apply
12-12 different rates of taxation within the same profitability
12-13 classification by dollar range of gross receipts. Local
12-14 governments using such different rates of taxation within
12-15 the same profitability classification shall use the same
12-16 dollar ranges of gross receipts for each profitability
12-17 classification and shall not apply to any business or
12-18 practitioner a rate of taxation greater than the rate
12-19 applied to the same dollar range of gross receipts in
12-20 another classification which includes a business or
12-21 practitioner with a higher profitability ratio.
12-22 (d) Local governments which classify by the criterion
12-23 described in paragraph (1) of subsection (a) of this Code
12-24 section are authorized but not required to adopt more than
12-25 one rate of taxation per employee.
12-26 (d)(e) The occupation tax may include an administrative
12-27 fee.
12-28 (e)(f)(1) Notwithstanding any other provision of this
12-29 article, local Local governments may by ordinance or
12-30 resolution provide for an exemption or reduction in
12-31 occupation tax or a credit against occupation tax owed
12-32 to one or more types of businesses or practitioners of
12-33 occupations or professions as part of a plan for
12-34 economic development or attracting, or encouraging, or
12-35 maintaining selected types of businesses or
12-36 practitioners of selected occupations or professions.
12-37 Such exemptions or reductions in occupation tax shall
12-38 not be arbitrary or capricious.
12-39 (2) Exemptions or reductions in occupation tax pursuant
12-40 to paragraph (1) of this subsection may include but
12-41 shall not be limited to the following:
12-42 (A) Absolute dollar amount limitations on the total
12-43 amount of tax, either by criterion or combination of
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13- 1 criteria used for classification or for businesses and
13- 2 practitioners, provided that a jurisdiction which
13- 3 provides an absolute dollar amount limitation on the
13- 4 total amount of tax shall levy and collect such
13- 5 maximum tax only once on each business entity or
13- 6 practitioner even if a business or practitioner has
13- 7 more than one office or location within the
13- 8 jurisdiction;
13- 9 (B) Tax credits for the retention or creation of jobs,
13-10 or for jobs of a specific description, including but
13-11 not limited to entry level jobs or jobs with
13-12 compensation of a specified range;
13-13 (C) Tax credits for other taxes paid to the local
13-14 government, including but not limited to ad valorem
13-15 taxes;
13-16 (D) A tax exemption or a lower rate of taxation for
13-17 sales to customers outside the jurisdiction of the
13-18 local government;
13-19 (E) A credit or rebate to businesses or practitioners
13-20 who paid occupation taxes in the previous year;
13-21 (F) A limitation on the dollar or percentage amount of
13-22 increase in tax from a base year to a subsequent year,
13-23 provided that the limitation is made applicable to new
13-24 businesses or practitioners by imputing the gross
13-25 receipts, profitability ratio, or number of employees
13-26 of the subsequent year to the base year in calculating
13-27 tax for the base year, tax for the subsequent year,
13-28 and the increase in tax; and
13-29 (G) A credit or reduction as an adjustment for
13-30 seasonal fluctuations in the number of employees,
13-31 other fluctuations in the number of employees,
13-32 increases or decreases in the number of employees, or
13-33 temporary employees.
13-34 (f)(g) Practitioners of professions and occupations who
13-35 are listed in paragraphs (1) through (18) of subsection
13-36 (c) of Code Section 48-13-9 shall elect as their entire
13-37 occupation tax one of the following:
13-38 (1) The occupation tax resulting from application of the
13-39 other provisions of this article; or
13-40 (2) A fee to be set by the local government, not to
13-41 exceed $400.00 per practitioner who is licensed to
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14- 1 provide the service, such tax to be paid at that
14- 2 practitioner's office or location; provided, however,
14- 3 that a practitioner paying according to this paragraph
14- 4 shall not be required to provide information to the
14- 5 local government relating to the gross receipts of the
14- 6 business or practitioner.
14- 7 48-13-11. (Index)
14- 8 In determining the amount of occupation tax to be levied
14- 9 on an individual business or practitioner, local
14-10 governments shall not use the following criteria or
14-11 methods:
14-12 (1) Dividing a business into its constituent parts and
14-13 imposing a separate occupation tax on each part or
14-14 portion of the business, except that businesses or
14-15 practitioners with more than one type of activity or
14-16 product shall be taxed in accordance with Code Section
14-17 48-13-12;
14-18 (2) The size or square footage of the space occupied by
14-19 the business or practitioner; or
14-20 (3) Any criterion other than those described in Code
14-21 Section 48-13-10.
14-22 48-13-12. (Index)
14-23 For businesses or practitioners with more than one type of
14-24 service or product, the following classification rules
14-25 shall apply:
14-26 (1) Local governments which do not use the criterion
14-27 described in paragraph (3) of subsection (a) of Code
14-28 Section 48-13-10 shall classify the business or
14-29 practitioner for occupation tax purposes according to
14-30 the dominant service or product, unless such local
14-31 governments use only the criterion described in
14-32 paragraph (4) of subsection (a) of Code Section
14-33 48-13-10; and
14-34 (2) Local governments which use the criterion described
14-35 in paragraph (3) of subsection (a) of Code Section
14-36 48-13-10 shall set out in their local ordinances or
14-37 resolutions for occupation taxes whether the local
14-38 government will:
14-39 (A) Classify the entire gross receipts by dominant
14-40 service or product; or
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15- 1 (B) Apportion the gross receipts by category of
15- 2 service or product in proportion to the gross receipts
15- 3 generated by each service or product, taxing each
15- 4 portion of the gross receipts according to the
15- 5 profitability ratio for that particular type of
15- 6 business and adding the tax for all portions to arrive
15- 7 at the total occupation tax.
15- 8 48-13-13. (Index)
15- 9 Local In levying occupation tax, local governments are not
15-10 authorized to:
15-11 (1) Require a business or practitioner to pay more than
15-12 one occupation tax for each office or location, except
15-13 that businesses or practitioners with multiple services
15-14 or products shall be taxed in accordance with Code
15-15 Section 48-13-12;
15-16 (2) Levy occupation tax on more than 100 percent of the
15-17 total gross receipts of the business or practitioner,
15-18 when occupation taxes of all local governments are added
15-19 together; or
15-20 (3) Levy occupation tax on any practitioner whose office
15-21 is maintained by and who is employed in practice
15-22 exclusively by the United States, the state, a
15-23 municipality or county of the state, or
15-24 instrumentalities of the United States, the state, or a
15-25 municipality or county of the state;
15-26 (4) Require the payment of a fee by whatever name in any
15-27 amount by a business or practitioner for the cost of
15-28 ascertaining whether such a business or practitioner has
15-29 paid occupation tax to another local government; or
15-30 (5) Levy any occupation tax, regulatory fee, or
15-31 administrative fee on any state or local authority or
15-32 nonprofit organization.
15-33 48-13-14. (Index)
15-34 (a) In levying occupation tax upon a business or
15-35 practitioner with a location or office situated in more
15-36 than one jurisdiction, including businesses or
15-37 practitioners with one or more locations or offices in
15-38 Georgia and one or more locations outside the state, local
15-39 governments which use the criterion described in paragraph
15-40 (3) of subsection (a) of Code Section 48-13-10 shall
15-41 allocate the gross receipts as defined in paragraph (2) of
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16- 1 Code Section 48-13-5 of the business or practitioner for
16- 2 occupation tax purposes in accordance with one of the
16- 3 following methods:
16- 4 (1) Where the dollar amount of gross receipts of the
16- 5 business or practitioner can be allocated to one or more
16- 6 of the locations or offices on the basis of product
16- 7 manufactured in that location or office or service
16- 8 provided for compensation in that location or office,
16- 9 each local government is authorized to tax the gross
16-10 receipts generated by the location or office within the
16-11 jurisdiction of the local government; or
16-12 (2) Where the dollar amount of gross receipts cannot
16-13 reasonably be allocated among multiple locations or
16-14 offices, the total gross receipts shall be divided by
16-15 the number of locations or offices of the business or
16-16 practitioner, and an equal percentage of the total gross
16-17 receipts of the business or practitioner shall be
16-18 allocated to each location or office.
16-19 (b) In no instance shall the sum of the portions of the
16-20 total gross receipts of a business or practitioner taxed
16-21 by all local governments exceed 100 percent of the total
16-22 gross receipts of the business or practitioner.
16-23 (c) Upon request, businesses or practitioners with a
16-24 location or office situated in more than one jurisdiction
16-25 shall provide to any local government authorized to levy
16-26 an occupation tax upon such business or practitioner the
16-27 following:
16-28 (1) Financial information necessary to allocate the
16-29 gross receipts of the business or practitioner; and
16-30 (2) Information relating to the allocation of the
16-31 business's or practitioner's gross receipts by other
16-32 local governments.
16-33 (d) When more than one local government levies occupation
16-34 tax on a business or practitioner which has locations
16-35 encompassed by more than one local government and the
16-36 local governments use different criteria for taxation in
16-37 accordance with subsection (a) of Code Section 48-13-10,
16-38 local governments which use the criterion described in
16-39 paragraph (3) of subsection (a) of Code Section 48-13-10
16-40 are not authorized to tax any greater proportion of the
16-41 gross receipts than authorized by subsection (a) of this
16-42 Code section, and local governments which use the number
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17- 1 of employees as a criterion for taxation are authorized to
17- 2 tax the number of employees who are employed within the
17- 3 local government's geographic jurisdiction. In the case
17- 4 of an employee who works for the same business or
17- 5 practitioner in more than one municipal corporation or
17- 6 county, the municipal corporation or county in which the
17- 7 employee works for the longest period of time within the
17- 8 calendar year shall be authorized to count the individual
17- 9 as an employee who is employed within the local
17-10 government's geographic jurisdiction for purposes of
17-11 occupation tax.
17-12 48-13-15. (Index)
17-13 (a) Except as provided in subsection (c) of this Code
17-14 section, information provided to a local government by a
17-15 business or practitioner of an occupation or profession
17-16 for the purpose of determining the amount of occupation
17-17 tax for the business or practitioner is confidential and
17-18 exempt from inspection or disclosure under Article 4 of
17-19 Chapter 18 of Title 50.
17-20 (b) Violation of the confidentiality provision of
17-21 subsection (a) of this Code section shall be unlawful and
17-22 upon conviction shall be punished as a misdemeanor.
17-23 (c) Information provided to a local government by a
17-24 business or practitioner of an occupation or profession
17-25 for the purpose of determining the amount of occupation
17-26 tax for the business or practitioner may be disclosed to
17-27 the governing authority of another local government for
17-28 occupation tax purposes or pursuant to court order or for
17-29 the purpose of collection of occupation tax or prosecution
17-30 for failure or refusal to pay occupation tax.
17-31 48-13-16. (Index)
17-32 (a) The following businesses or practitioners shall be
17-33 excluded from occupation tax, registration fees, or
17-34 regulatory fees under the provisions of this article but
17-35 shall be subject to taxation and regulation as otherwise
17-36 provided by general law and municipal charters:
17-37 (1) Those businesses regulated by the Georgia Public
17-38 Service Commission;
17-39 (2) Those electrical service businesses organized under
17-40 Chapter 3 of Title 46; and
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18- 1 (3) Any farm operation for the production from or on the
18- 2 land of agricultural products, but not including any
18- 3 agribusiness.
18- 4 (b) This article shall not be construed to repeal other
18- 5 provisions of general law relating to local governments'
18- 6 occupation tax, registration fees, or regulatory fees for
18- 7 businesses or practitioners of professions or occupations.
18- 8 48-13-17. (Index)
18- 9 (a) No county or municipal corporation shall levy or
18-10 collect any fixed amount license, occupation, or
18-11 professional tax upon real estate brokers, except at the
18-12 place where any such real estate broker shall maintain a
18-13 principal or branch office. The license, occupation, or
18-14 professional tax shall permit the broker and the broker's
18-15 affiliated associate brokers and salespersons to engage in
18-16 all of the brokerage activities described in Code Section
18-17 43-40-1 without further licensing or taxing other than the
18-18 state licenses issued pursuant to Chapter 40 of Title 43.
18-19 No additional license, occupation, or professional tax
18-20 shall be required of the broker's affiliated associate
18-21 brokers or salespersons; provided, however, that, subject
18-22 to the limitations of subsection (b) of this Code section,
18-23 a municipality or county which levies a general occupation
18-24 or business license tax on a gross receipts basis shall
18-25 have the power to levy and collect an occupation, license,
18-26 or professional tax upon real estate brokers transacting
18-27 business within the boundaries of the taxing jurisdiction,
18-28 which tax shall be based upon gross receipts derived from
18-29 transactions with respect to property located within the
18-30 boundaries of the taxing jurisdiction.
18-31 (b) A municipal corporation may impose an occupation,
18-32 license, or professional tax upon real estate brokers
18-33 based upon gross receipts only for real estate
18-34 transactions with respect to property located within its
18-35 corporate limits and a county governing authority may
18-36 impose such a tax based upon gross receipts only for real
18-37 estate transactions with respect to property located in
18-38 the unincorporated area of the county.
18-39 48-13-18. (Index)
18-40 (a) When otherwise authorized by law to levy occupation
18-41 taxes on businesses, trades, and professions, a
18-42 municipality shall be permitted to levy the taxes on
18-43 businesses, trades, and professions which are licensed by
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19- 1 or registered with the state. This Code section shall not
19- 2 be construed to repeal any express limitations on such
19- 3 municipal authority contained in general law.
19- 4 (b) Nothing contained in this Code section shall be
19- 5 construed to authorize the municipal licensing or taxation
19- 6 of businesses, trades, or occupations operating motor
19- 7 vehicles required to be registered with the Public Service
19- 8 Commission of this state.
19- 9 48-13-19. (Index)
19-10 (a) Except as may be authorized by general law, no
19-11 municipality may levy any tax upon an individual for the
19-12 privilege of working within or being employed within the
19-13 limits of the municipality.
19-14 (b) Nothing contained in this Code section shall be
19-15 construed to prohibit a municipality, when otherwise
19-16 authorized, from levying any form of tax being levied by
19-17 any municipality in this state on January 1, 1980.
19-18 48-13-20. (Index)
19-19 All license fees and business, occupation, and other taxes
19-20 imposed or authorized by this chapter, except as otherwise
19-21 specifically provided, shall be due and payable annually
19-22 on January 1, or such other date specified in the local
19-23 government ordinance imposing the fees and taxes. In the
19-24 event that any person commences business on any date after
19-25 January 1 in any year or after the date specified in the
19-26 local government ordinance imposing the fees and taxes,
19-27 the tax shall be due and payable on the date of the
19-28 commencement of the business.
19-29 48-13-21. (Index)
19-30 (a) Should any special, occupation, or sales tax or
19-31 license fee imposed by this chapter remain due and unpaid
19-32 for 90 days from the due date of the tax or fee, the
19-33 person liable for the tax or fee shall be subject to and
19-34 shall pay a penalty of 10 percent of the tax or fee due.
19-35 (b) Local governments are authorized to provide in their
19-36 ordinances for interest on delinquent occupation taxes,
19-37 regulatory fees, and administrative fees at a rate not to
19-38 exceed 1.5 percent per month.
19-39 48-13-22. (Index)
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20- 1 When any person commences business on or after July 1 in
20- 2 any year, the regulatory fee and the business or
20- 3 occupation tax for the remaining portion of the year shall
20- 4 be 50 percent of the tax imposed for the entire year,
20- 5 except that (1) local governments which tax according to
20- 6 the criterion described in paragraph (3) of subsection (a)
20- 7 of Code Section 48-13-10 are authorized to levy their
20- 8 customary rate on the gross receipts of the business or
20- 9 practitioner from the commencement of the business; and
20-10 (2) the administrative fee authorized as a component of an
20-11 occupation tax by subsection (d) (e) of Code Section
20-12 48-13-10 shall not be reduced.
20-13 48-13-23. (Index)
20-14 Each person subject to any special or occupation tax who
20-15 is also licensed by the state shall post the state license
20-16 in a conspicuous place in the licensee's place of business
20-17 and shall keep the license there at all times while the
20-18 license remains valid.
20-19 48-13-24. (Index)
20-20 In any provision of this chapter where population controls
20-21 the amount of tax or license fee to be paid, the most
20-22 recent United States decennial census shall govern.
20-23 48-13-25. (Index)
20-24 When a nulla bona entry has been entered by proper
20-25 authority upon an execution issued by the tax collector or
20-26 tax commissioner against any person defaulting on a
20-27 special tax, the person against whom the entry is made
20-28 shall not be allowed or entitled to have or collect any
20-29 fees or charges whatever for services rendered after the
20-30 entry of the nulla bona. If, at any time after the entry
20-31 of nulla bona has been made, the person against whom the
20-32 execution issues pays the tax in full together with all
20-33 interest and costs accrued on the tax, the person may
20-34 collect any fees and charges due him or her as though he
20-35 or she had never defaulted in the payment of the tax.
20-36 48-13-26. (Index)
20-37 (a) In addition to the other remedies available to the
20-38 state, counties, and municipalities for the collection of
20-39 special taxes, occupation taxes, and license fees due the
20-40 state, counties, and municipalities from persons subject
20-41 to the tax or license fee who fail or refuse to pay the
20-42 tax or fee, the officer charged with the collection of the
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21- 1 tax or license fee shall issue executions against the
21- 2 delinquent taxpayers for the amount of the taxes or fees
21- 3 due when the taxes or fees become due.
21- 4 (b) The right of the state, counties, and municipalities
21- 5 to criminally prosecute persons violating the law or a
21- 6 county or municipal ordinance by failing to pay the
21- 7 special taxes, occupation taxes, or license fees or by
21- 8 refusing to register shall be in addition to the remedy of
21- 9 issuing executions against delinquent taxpayers as
21-10 authorized by subsection (a) of this Code section.
21-11 48-13-27.
21-12 (a) The governing authority of any county or municipal
21-13 corporation which enacted an ordinance or resolution
21-14 relating to occupation taxes or regulatory fees pursuant
21-15 to the provisions of this article and other general law
21-16 effective January 1, 1995, which ordinance or resolution
21-17 is in effect on the effective date of this Act, shall
21-18 enact an ordinance or resolution in compliance with the
21-19 provisions of this article, on or after the effective date
21-20 of this Act.
21-21 (b) Subsection (a) of this Code section shall not impair
21-22 the right of any county or municipal corporation:
21-23 (1) To determine the content of such an ordinance or
21-24 resolution relating to occupation taxes or regulatory
21-25 fees, provided that such ordinance or resolution
21-26 complies with general law; and
21-27 (2) To elect not to impose occupation taxes or
21-28 regulatory fees.
21-29 48-13-28.
21-30 In any year when revenue from occupation taxes is greater
21-31 than revenue from occupation taxes for the preceding year
21-32 for a local government, the local government shall hold
21-33 one or more public hearings as a part of the process of
21-34 determining how to use the additional revenue."
SECTION 2.
21-35 If a local government repeals, amends, or revises its
21-36 ordinance or resolution relating to occupation taxes or
21-37 regulatory fees during the tax year 1995, such a local
21-38 government is authorized but not required to allow by
21-39 ordinance or resolution businesses and practitioners of
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22- 1 professions and occupations to pay for the tax year 1995 the
22- 2 lesser of:
22- 3 (1) Taxes and fees computed in accordance with the
22- 4 ordinance or resolution which was in effect on January
22- 5 1, 1995; or
22- 6 (2) Taxes and fees computed in accordance with the
22- 7 ordinance or resolution which became effective after the
22- 8 effective date of this Act but before January 1, 1996.
SECTION 3.
22- 9 This Act shall become effective upon its approval by the
22-10 Governor or upon its becoming law without such approval.
SECTION 4.
22-11 All laws and parts of laws in conflict with this Act are
22-12 repealed.
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Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97