HB 21 - Income tax; gradual reduction and abolishment
Georgia House of Representatives - 1995/1996 Sessions
HB 21 - Income tax; gradual reduction and abolishment
1. Kaye 37th
House Comm: W&M / Senate Comm: /
House Vote: Yeas Nays Senate Vote: Yeas Nays
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House Action Senate
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3/7/95 Read 1st Time
3/8/95 Read 2nd Time
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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,
16-12-55, 17-15-8, 19-11-9, 36-62-5.1, 37-9-7, 44-13-1.1, 44-13-20, 48-2-56,
48-6-93, 48-11-14, 49-1-9, 50-27-3,
HB 21 LC 18 6430
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 2000; to provide for the collection of individual income
1- 8 taxes for taxable year 1999; 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 18 6430
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 18 6430
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 (A) 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 ............. .8%
3-20 Over $750.00 but not over
3-21 $2,250.00 .................... $7.50 plus 1.6% of
amount over $750.00
3-22 Over $2,250.00 but not
3-23 over $3,750.00 ............... $37.50 plus 2.4% of
amount over $2,250.00
3-24 Over $3,750.00 but not
3-25 over $5,250.00 ............... $82.50 plus 3.2% of
amount over $3,750.00
3-26 Over $5,250.00 but not
3-27 over $7,000.00 ............... $142.50 plus 4% of
amount over $5,250.00
3-28 Over $7,000.00 ............... $230.00 plus 4.8% of
amount over $7,000.00
-3- (Index)
LC 18 6430
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 ............. .8%
4- 5 Over $500.00 but not over
4- 6 $1,500.00 .................... $5.00 plus 1.6% of
amount over $500.00
4- 7 Over $1,500.00 but not
4- 8 over $2,500.00 ............... $25.00 plus 2.4% of
amount over $1,500.00
4- 9 Over $2,500.00 but not
4-10 over $3,500.00 ............... $55.00 plus 3.2% of
amount over $2,500.00
4-11 Over $3,500.00 but not
4-12 over $5,000.00 ............... $95.00 plus 4% of
amount over $3,500.00
4-13 Over $5,000.00 ............... $170.00 plus 4.8% of
amount over $5,000.00
4-14 HEAD OF HOUSEHOLD AND MARRIED PERSONS
4-15 FILING A JOINT RETURN
4-16 If Georgia Taxable
4-17 Net Income Is: The Tax Is:
4-18 Not over $1,000.00 .......... .8%
4-19 Over $1,000.00 but not
4-20 over $3,000.00 .............. $10.00 plus 1.6% of
amount over $1,000.00
4-21 Over $3,000.00 but not
4-22 over $5,000.00 .............. $50.00 plus 2.4% of
amount over $3,000.00
4-23 Over $5,000.00 but not
4-24 over $7,000.00 .............. $110.00 plus 3.2% of
amount over $5,000.00
4-25 Over $7,000.00 but not
4-26 over $10,000.00 ............. $190.00 plus 4% of
amount over $7,000.00
4-27 Over $10,000.00 ............. $340.00 plus 4.8% of
amount over $10,000.00
4-28 (B) For taxable year 1997:
-4- (Index)
LC 18 6430
5- 1 SINGLE PERSON
5- 2 If Georgia Taxable
5- 3 Net Income Is: The Tax Is:
5- 4 Not over $750.00 ............. .6%
5- 5 Over $750.00 but not over
5- 6 $2,250.00 .................... $7.50 plus 1.2% of
amount over $750.00
5- 7 Over $2,250.00 but not
5- 8 over $3,750.00 ............... $37.50 plus 1.8% of
amount over $2,250.00
5- 9 Over $3,750.00 but not
5-10 over $5,250.00 ............... $82.50 plus 2.4% of
amount over $3,750.00
5-11 Over $5,250.00 but not
5-12 over $7,000.00 ............... $142.50 plus 3% of
amount over $5,250.00
5-13 Over $7,000.00 ............... $230.00 plus 3.6% of
amount over $7,000.00
5-14 MARRIED PERSON FILING A SEPARATE RETURN
5-15 If Georgia Taxable
5-16 Net Income Is: The Tax Is:
5-17 Not over $500.00 ............. .6%
5-18 Over $500.00 but not over
5-19 $1,500.00 .................... $5.00 plus 1.2% of
amount over $500.00
5-20 Over $1,500.00 but not
5-21 over $2,500.00 ............... $25.00 plus 1.8% of
amount over $1,500.00
5-22 Over $2,500.00 but not
5-23 over $3,500.00 ............... $55.00 plus 2.4% of
amount over $2,500.00
5-24 Over $3,500.00 but not
5-25 over $5,000.00 ............... $95.00 plus 3% of
amount over $3,500.00
5-26 Over $5,000.00 ............... $170.00 plus 3.6% of
amount over $5,000.00
-5- (Index)
LC 18 6430
6- 1 HEAD OF HOUSEHOLD AND MARRIED PERSONS
6- 2 FILING A JOINT RETURN
6- 3 If Georgia Taxable
6- 4 Net Income Is: The Tax Is:
6- 5 Not over $1,000.00 .......... .6%
6- 6 Over $1,000.00 but not
6- 7 over $3,000.00 .............. $10.00 plus 1.2% of
amount over $1,000.00
6- 8 Over $3,000.00 but not
6- 9 over $5,000.00 .............. $50.00 plus 1.8% of
amount over $3,000.00
6-10 Over $5,000.00 but not
6-11 over $7,000.00 .............. $110.00 plus 2.4% of
amount over $5,000.00
6-12 Over $7,000.00 but not
6-13 over $10,000.00 ............. $190.00 plus 3% of
amount over $7,000.00
6-14 Over $10,000.00 ............. $340.00 plus 3.6% of
amount over $10,000.00
6-15 (C) For taxable year 1998:
6-16 SINGLE PERSON
6-17 If Georgia Taxable
6-18 Net Income Is: The Tax Is:
6-19 Not over $750.00 ............. .4%
6-20 Over $750.00 but not over
6-21 $2,250.00 .................... $7.50 plus .6% of
amount over $750.00
6-22 Over $2,250.00 but not
6-23 over $3,750.00 ............... $37.50 plus 1.2% of
amount over $2,250.00
6-24 Over $3,750.00 but not
6-25 over $5,250.00 ............... $82.50 plus 1.6% of
amount over $3,750.00
6-26 Over $5,250.00 but not
6-27 over $7,000.00 ............... $142.50 plus 2% of
amount over $5,250.00
6-28 Over $7,000.00 ............... $230.00 plus 2.4% of
amount over $7,000.00
-6- (Index)
LC 18 6430
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 ............. .4%
7- 5 Over $500.00 but not over
7- 6 $1,500.00 .................... $5.00 plus .8% of
amount over $500.00
7- 7 Over $1,500.00 but not
7- 8 over $2,500.00 ............... $25.00 plus 1.2% of
amount over $1,500.00
7- 9 Over $2,500.00 but not
7-10 over $3,500.00 ............... $55.00 plus 1.6% of
amount over $2,500.00
7-11 Over $3,500.00 but not
7-12 over $5,000.00 ............... $95.00 plus 2% of
amount over $3,500.00
7-13 Over $5,000.00 ............... $170.00 plus 2.4% of
amount over $5,000.00
7-14 HEAD OF HOUSEHOLD AND MARRIED PERSONS
7-15 FILING A JOINT RETURN
7-16 If Georgia Taxable
7-17 Net Income Is: The Tax Is:
7-18 Not over $1,000.00 .......... .4%
7-19 Over $1,000.00 but not
7-20 over $3,000.00 .............. $10.00 plus .8% of
amount over $1,000.00
7-21 Over $3,000.00 but not
7-22 over $5,000.00 .............. $50.00 plus 1.2% of
amount over $3,000.00
7-23 Over $5,000.00 but not
7-24 over $7,000.00 .............. $110.00 plus 1.6% of
amount over $5,000.00
7-25 Over $7,000.00 but not
7-26 over $10,000.00 ............. $190.00 plus 2% of
amount over $7,000.00
7-27 Over $10,000.00 ............. $340.00 plus 2.4% of
amount over $10,000.00
7-28 (D) For taxable year 1999:
-7- (Index)
LC 18 6430
8- 1 SINGLE PERSON
8- 2 If Georgia Taxable
8- 3 Net Income Is: The Tax Is:
8- 4 Not over $750.00 ............. .2%
8- 5 Over $750.00 but not over
8- 6 $2,250.00 .................... $7.50 plus .4% of
amount over $750.00
8- 7 Over $2,250.00 but not
8- 8 over $3,750.00 ............... $37.50 plus .6% of
amount over $2,250.00
8- 9 Over $3,750.00 but not
8-10 over $5,250.00 ............... $82.50 plus .8% of
amount over $3,750.00
8-11 Over $5,250.00 but not
8-12 over $7,000.00 ............... $142.50 plus 1% of
amount over $5,250.00
8-13 Over $7,000.00 ............... $230.00 plus 1.2% of
amount over $7,000.00
8-14 MARRIED PERSON FILING A SEPARATE RETURN
8-15 If Georgia Taxable
8-16 Net Income Is: The Tax Is:
8-17 Not over $500.00 ............. .2%
8-18 Over $500.00 but not over
8-19 $1,500.00 .................... $5.00 plus .4% of
amount over $500.00
8-20 Over $1,500.00 but not
8-21 over $2,500.00 ............... $25.00 plus .6% of
amount over $1,500.00
8-22 Over $2,500.00 but not
8-23 over $3,500.00 ............... $55.00 plus .8% of
amount over $2,500.00
8-24 Over $3,500.00 but not
8-25 over $5,000.00 ............... $95.00 plus 1% of
amount over $3,500.00
8-26 Over $5,000.00 ............... $170.00 plus 1.2% of
amount over $5,000.00
-8- (Index)
LC 18 6430
9- 1 HEAD OF HOUSEHOLD AND MARRIED PERSONS
9- 2 FILING A JOINT RETURN
9- 3 If Georgia Taxable
9- 4 Net Income Is: The Tax Is:
9- 5 Not over $1,000.00 .......... .2%
9- 6 Over $1,000.00 but not
9- 7 over $3,000.00 .............. $10.00 plus .4% of
amount over $1,000.00
9- 8 Over $3,000.00 but not
9- 9 over $5,000.00 .............. $50.00 plus .6% of
amount over $3,000.00
9-10 Over $5,000.00 but not
9-11 over $7,000.00 .............. $110.00 plus .8% of
amount over $5,000.00
9-12 Over $7,000.00 but not
9-13 over $10,000.00 ............. $190.00 plus 1% of
amount over $7,000.00
9-14 Over $10,000.00 ............. $340.00 plus 1.2% of
amount over $10,000.00
9-15 (E) For taxable year 2000 and thereafter, there shall
9-16 not be an individual income tax and no individual
9-17 returns are required."
SECTION 2.
9-18 Said title is further amended by adding at the beginning of
9-19 Article 5, relating to current income tax payment, a new
9-20 Code Section 48-7-99 to read as follows:
9-21 "48-7-99. (Index)
9-22 The provisions of this article relating to the withholding
9-23 of taxes or estimated taxes applicable to individuals
9-24 shall not apply to taxable years beginning on or after
9-25 January 1, 2000."
PART II
SECTION 3.
9-26 Said title is further amended by striking in its entirety
9-27 Chapter 7, relating to income taxes, and inserting in lieu
9-28 thereof a new Chapter 7 to read as follows:
"CHAPTER 7
-9- (Index)
LC 18 6430
10- 1 48-7-1. (Index)
10- 2 Effective January 1, 2000, there shall not be an
10- 3 individual income tax or income tax on fiduciaries or
10- 4 partnerships in this state for taxable years beginning on
10- 5 or after January 1, 2000.
10- 6 48-7-2. (Index)
10- 7 As used in this chapter, the term:
10- 8 (1) 'Corporation' includes, but is not limited to, all
10- 9 associations, professional associations organized
10-10 pursuant to Chapter 10 of Title 14, and insurance
10-11 companies.
10-12 (2) 'Deficiency' means the amount by which the tax
10-13 imposed by this chapter or any prior law exceeds the
10-14 amount shown as the tax due by the corporation upon its
10-15 return or, if no amount is shown as the tax due by a
10-16 corporation upon its return or if no return is made by
10-17 the corporation, the amount determined by the
10-18 commissioner to be the correct amount of the tax.
10-19 (3) 'Fiscal year' means an accounting period of 12
10-20 months ending on the last day of any month other than
10-21 December. In the case of any taxpayer who has elected a
10-22 year consisting of 52 to 53 weeks for federal income tax
10-23 purposes, the term means the period so elected.
10-24 (4) 'Income tax day' means December 31 of each calendar
10-25 year.
10-26 (5) 'Paid,' for the purpose of the deductions under this
10-27 chapter, means 'paid or accrued' or 'paid or incurred.'
10-28 The terms 'paid or accrued,' 'paid or incurred,' and
10-29 'incurred' shall be construed according to the method of
10-30 accounting upon the basis of which the net income is
10-31 computed under this chapter.
10-32 (6) 'Received,' for the purpose of the computation of
10-33 the net income under this chapter, means 'received or
10-34 accrued.' The term 'received or accrued' shall be
10-35 construed according to the method of accounting upon the
10-36 basis of which the net income is computed under this
10-37 chapter.
10-38 (7) 'Taxable year' means the calendar year or the fiscal
10-39 year ending during the calendar year upon the basis of
10-40 which the net income is computed under this chapter.
-10- (Index)
LC 18 6430
11- 1 (8) 'Taxpayer' means a corporation.
11- 2 48-7-3. (Index)
11- 3 (a) It shall be unlawful for any person who is required
11- 4 under this chapter to pay any tax, make any return, keep
11- 5 any records, supply any information, or exhibit any books
11- 6 or records for the purpose of computation, assessment, or
11- 7 collection of any tax imposed by this chapter to fail to:
11- 8 (1) Pay the tax;
11- 9 (2) Make the return;
11-10 (3) Keep the records; or
11-11 (4) When requested to do so by the commissioner:
11-12 (A) Supply the information; or
11-13 (B) Exhibit the books or records.
11-14 (b) In addition to other penalties provided by law, any
11-15 person who violates subsection (a) of this Code section
11-16 shall be guilty of a misdemeanor.
11-17 48-7-4. (Index)
11-18 (a) With respect to any matter arising under this chapter,
11-19 it shall be unlawful for any person willfully to aid or
11-20 assist in, or procure, counsel, or advise the preparation
11-21 or presentation of, a false or fraudulent return,
11-22 affidavit, claim, or document, whether or not the falsity
11-23 or fraud is with the knowledge or consent of the person
11-24 authorized or required to present the return, affidavit,
11-25 claim, or document.
11-26 (b) Any person who violates subsection (a) of this Code
11-27 section shall be guilty of a misdemeanor and, upon
11-28 conviction thereof, shall be fined not more than $1,000.00
11-29 or imprisoned for not more than six months, or both, and
11-30 shall be required to pay the costs of prosecution.
11-31 48-7-5. (Index)
11-32 (a) It shall be unlawful for any person, with intent to
11-33 evade the income tax imposed by this chapter, willfully to
11-34 advise the preparation or presentation of a return with
11-35 intentional disregard of rules and regulations of the
11-36 commissioner.
11-37 (b) Any person who violates subsection (a) of this Code
11-38 section shall be guilty of a misdemeanor and, upon
-11- (Index)
LC 18 6430
12- 1 conviction thereof, shall be fined not less than $100.00
12- 2 nor more than $500.00 or imprisoned for not more than six
12- 3 months, or both.
12- 4 48-7-6. (Index)
12- 5 Any person who willfully evades or defeats or willfully
12- 6 attempts to evade or defeat, in any manner, any income
12- 7 tax, penalty, interest, or other amount in excess of
12- 8 $3,000.00 imposed under this chapter, including but not
12- 9 limited to failure to file a return or report, shall, in
12-10 addition to any other criminal or civil penalties provided
12-11 by law, be guilty of a felony and, upon conviction
12-12 thereof, shall be fined not more than $500,000.00 in the
12-13 case of a corporation or imprisoned not less than one nor
12-14 more than five years, or both. Conduct proscribed by this
12-15 Code section shall be subject to punishment under this
12-16 Code section notwithstanding the applicability to such
12-17 conduct of any other provision of law.
12-18 48-7-7. (Index)
12-19 (a) Every domestic corporation and every foreign
12-20 corporation shall pay annually an income tax equivalent to
12-21 6 percent of its Georgia taxable net income. Georgia
12-22 taxable net income of a corporation shall be the
12-23 corporation's taxable income from property owned or from
12-24 business done in this state. A corporation's taxable
12-25 income from property owned or from business done in this
12-26 state shall consist of the corporation's taxable income as
12-27 defined in the Internal Revenue Code of 1986, with the
12-28 adjustments provided for in subsection (b) of this Code
12-29 section and allocated and apportioned as provided in Code
12-30 Section 48-7-9.
12-31 (b)(1)(A) When interest income is derived from
12-32 obligations of any state or political subdivision
12-33 except this state and political subdivisions of this
12-34 state, the interest income shall be added to taxable
12-35 income to the extent that the interest income is not
12-36 included in gross income for federal income tax
12-37 purposes. Interest or dividends on obligations of any
12-38 authority, commission, instrumentality, territory, or
12-39 possession of the United States which by the laws of
12-40 the United States are exempt from federal income tax
12-41 but not from state income tax shall also be added to
12-42 taxable income.
-12- (Index)
LC 18 6430
13- 1 (B) There shall be subtracted from taxable income
13- 2 interest or dividends on obligations of the United
13- 3 States and its territories and possessions or of any
13- 4 authority, commission, or instrumentality of the
13- 5 United States to the extent such interest or dividends
13- 6 are includable in gross income for federal income tax
13- 7 purposes but exempt from state income taxes under the
13- 8 laws of the United States. There shall also be
13- 9 subtracted from taxable income any income derived from
13-10 the authorized activities of a domestic international
13-11 banking facility operating pursuant to the provisions
13-12 of Article 5A of Chapter 1 of Title 7, the 'Domestic
13-13 International Banking Facility Act,' and any income
13-14 arising from the conduct of a banking business with
13-15 persons or entities located outside the United States,
13-16 its territories, or possessions. Any amount
13-17 subtracted pursuant to this subparagraph shall be
13-18 reduced by any expenses directly attributable to the
13-19 production of the interest or dividend income.
13-20 (2) There shall be added to taxable income any taxes on,
13-21 or measured by, net income or net profits paid or
13-22 accrued within the taxable year imposed by the authority
13-23 of the United States or any foreign country, by any
13-24 state except the State of Georgia, or by any territory,
13-25 county, school district, municipality, or other tax
13-26 subdivision of any state, territory, or foreign country
13-27 to the extent such taxes are deducted in determining
13-28 federal taxable income.
13-29 (3) No portion of any deductions or losses which
13-30 occurred in a year in which the taxpayer was not subject
13-31 to taxation in this state including, but not limited to,
13-32 net operating losses may be deducted in any tax year.
13-33 When the federal adjusted gross income or net income of
13-34 a corporation includes such deductions or losses, an
13-35 adjustment deleting them shall be made under rules
13-36 established by the commissioner. The provisions of this
13-37 subsection shall not prohibit the carry-over of any
13-38 deductions or losses including, but not limited to, net
13-39 operating losses of any taxpayer which were incurred in
13-40 a year or years in which the taxpayer was subject to
13-41 methods of taxation in this state other than the
13-42 corporate income tax.
13-43 (4) Income, losses, and deductions previously used in
13-44 computing Georgia taxable income shall not again be used
-13- (Index)
LC 18 6430
14- 1 in computing Georgia taxable income. The commissioner
14- 2 shall provide for needed adjustments by regulation.
14- 3 (5) When on the sale or exchange of real or tangible
14- 4 personal property located in this state gain or loss is
14- 5 not recognized because the taxpayer receives or
14- 6 purchases similar property, the nonrecognition shall be
14- 7 allowed only when the property is replaced with property
14- 8 located in this state.
14- 9 (6) This chapter shall not be construed to repeal any
14-10 tax exemptions contained in other laws of this state not
14-11 referred to in this chapter. Those exemptions and the
14-12 exemptions provided for by federal law and treaty shall
14-13 be deducted on forms provided by the commissioner.
14-14 (7) All elections made by corporate taxpayers under the
14-15 Internal Revenue Code of 1954 or the Internal Revenue
14-16 Code of 1986 shall also apply under this chapter except
14-17 elections involving consolidated corporate returns and
14-18 Subchapter 'S' elections which shall be treated as
14-19 follows:
14-20 (A)(i) If two or more corporations file federal
14-21 income tax returns on a consolidated basis and all
14-22 of the corporations derive all of their income from
14-23 sources within this state, the corporations must
14-24 file consolidated returns for Georgia income tax
14-25 purposes. Affiliated corporations which file a
14-26 consolidated federal income tax return but which
14-27 derive income from sources outside this state must
14-28 file separate income tax returns with this state
14-29 unless they have prior approval or have been
14-30 requested to file a consolidated return by the
14-31 department.
14-32 (ii) No depository financial institution, as defined
14-33 in Code Section 48-6-20, shall be deprived of the
14-34 benefit of any exemption, deduction, or credit
14-35 authorized by this title as a consequence of its
14-36 election to file otherwise lawful consolidated
14-37 returns with its parent organization or any
14-38 corporate subsidiaries with respect to any state or
14-39 local tax levied against such depository financial
14-40 institution as a result of this title;
14-41 (B) Subchapter 'S' elections apply only if all
14-42 stockholders are subject to tax in this state on their
14-43 portion of the corporate income. If all nonresident
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LC 18 6430
15- 1 stockholders pay the Georgia income tax on their
15- 2 portion of the corporate income, the election shall be
15- 3 allowed.
15- 4 (8) There shall be subtracted from taxable income
15- 5 dividends received by:
15- 6 (A) A corporation from sources outside the United
15- 7 States as defined in the Internal Revenue Code of
15- 8 1986. For purposes of this subparagraph, dividends
15- 9 received by a corporation from sources outside of the
15-10 United States shall include amounts treated as a
15-11 dividend and income deemed to have been received under
15-12 provisions of the Internal Revenue Code of 1986 by
15-13 such corporation if such amounts could have been
15-14 subtracted from taxable income under this paragraph,
15-15 had such amounts actually been received. Amounts to
15-16 be subtracted under this subparagraph shall include
15-17 the following, as defined by the Internal Revenue Code
15-18 of 1986:
15-19 (i) Qualified electing fund income;
15-20 (ii) Subpart F income; and
15-21 (iii) Income attributable to an increase in United
15-22 States property by a controlled foreign corporation.
15-23 The amount subtracted under this subparagraph shall be
15-24 reduced by any expenses directly attributable to the
15-25 dividend income; and
15-26 (B) Corporations from affiliated corporations within
15-27 the United States, when the corporation receiving the
15-28 dividends is engaged in business in this state and is
15-29 subject to the payment of taxes under the income tax
15-30 laws of this state, to the extent that the dividends
15-31 have been included in net income under this Code
15-32 section. Dividends from affiliates shall be reduced
15-33 by any expenses directly attributable to the dividend
15-34 income.
15-35 (9) Where a corporation's salary and wage deductions are
15-36 reduced in computing federal taxable income because the
15-37 corporation has taken a federal jobs tax credit which
15-38 required, as a condition to using the federal jobs tax
15-39 credit, the elimination of salary and wage deductions,
15-40 the eliminated salary and wage deductions shall be
15-41 subtracted from taxable income.
-15- (Index)
LC 18 6430
16- 1 (10) There shall be a dollar-for-dollar credit against
16- 2 the state income tax liability of depository financial
16- 3 institutions which shall be equal to the amount of
16- 4 taxes, if any, paid by such taxpayers pursuant to Code
16- 5 Section 48-6-93 and Code Section 48-6-95. If the
16- 6 liability of any such institutions under the taxes
16- 7 authorized by Code Section 48-6-93 and Code Section
16- 8 48-6-95 exceeds the corporate income tax liability of
16- 9 such institution for any year, the amount of any unused
16-10 credit under this Code section may be credited over a
16-11 period of five years from the tax year in which the
16-12 unused credit arose.
16-13 (11) There shall be subtracted from taxable income a
16-14 portion of qualified payments to minority
16-15 subcontractors, as provided in Code Section 48-7-14.
16-16 (12) Georgia taxable income shall, if the taxpayer so
16-17 elects, be adjusted with respect to federal depreciation
16-18 deductions as provided in Code Section 48-7-8.
16-19 48-7-8. (Index)
16-20 (a) With respect to property placed in service in taxable
16-21 years ending prior to the effective date of this Code
16-22 section, a taxpayer shall in his return for the first
16-23 taxable year ending on or after January 1, 1987, elect to:
16-24 (1) Continue to depreciate or otherwise recover the cost
16-25 of such property according to the same method used for
16-26 Georgia income tax purposes for the taxable year in
16-27 which the property was placed in service; or
16-28 (2) Depreciate or otherwise recover the cost of such
16-29 property according to the method used for federal income
16-30 tax purposes for the taxable year in which the property
16-31 was placed in service.
16-32 The election required by this subsection shall be made for
16-33 a taxpayer's first taxable year ending on or after January
16-34 1, 1987, in such manner as may be specified by the
16-35 commissioner. If a return for such a taxable year has been
16-36 filed without such an election prior to or within 90 days
16-37 after the effective date of this Code section, the
16-38 taxpayer may file an amended return containing such an
16-39 election.
16-40 (b) The election provided for in subsection (a) of this
16-41 Code section shall apply to all property of the taxpayer
16-42 uniformly and shall be irrevocable and applicable to all
-16- (Index)
LC 18 6430
17- 1 subsequent taxable years. Except as otherwise provided in
17- 2 the last sentence of subsection (a) of this Code section,
17- 3 if no such election is made, the taxpayer shall be deemed
17- 4 to have elected the option afforded by paragraph (2) of
17- 5 subsection (a) of this Code section. The General Assembly
17- 6 recognizes and intends that if a taxpayer elects the
17- 7 option afforded by paragraph (2) of subsection (a) of this
17- 8 Code section then in certain cases the taxpayer may never
17- 9 fully depreciate or recover the cost of certain property
17-10 for Georgia income tax purposes and in certain cases the
17-11 taxpayer may be allowed to depreciate or recover more than
17-12 the full cost of certain property for Georgia income tax
17-13 purposes. Taxpayers electing the option afforded by
17-14 paragraph (1) of subsection (a) of this Code section shall
17-15 in determining Georgia taxable income make such
17-16 adjustments to federal taxable income as are required to
17-17 reflect the effect of such election. Any such election
17-18 shall apply both to determination of deductions for
17-19 depreciation or cost recovery of affected property and
17-20 also to determination of gain or loss on the sale or other
17-21 disposition of such property. The commissioner shall
17-22 specify the manner in which such adjustments shall be
17-23 made.
17-24 48-7-9. (Index)
17-25 (a) The tax imposed by this chapter shall apply to the
17-26 entire net income, as defined in this chapter, received by
17-27 every foreign or domestic corporation owning property or
17-28 doing business within this state. A corporation shall be
17-29 deemed to be doing business within this state if it
17-30 engages within this state in any activities or
17-31 transactions for the purpose of financial profit or gain
17-32 whether or not:
17-33 (1) The corporation qualifies to do business in this
17-34 state;
17-35 (2) The corporation maintains an office or place of
17-36 doing business within this state; or
17-37 (3) Any such activity or transaction is connected with
17-38 interstate or foreign commerce.
17-39 (b)(1) If the entire business income of the corporation
17-40 is derived from property owned or business done in this
17-41 state, the tax shall be imposed on the entire business
17-42 income.
-17- (Index)
LC 18 6430
18- 1 (2) If the business income of the corporation is derived
18- 2 in part from property owned or business done in this
18- 3 state and in part from property owned or business done
18- 4 outside this state, the tax shall be imposed only on
18- 5 that portion of the business income which is reasonably
18- 6 attributable to the property owned and business done
18- 7 within this state, such portion to be determined as
18- 8 provided in subsections (c) and (d) of this Code
18- 9 section.
18-10 (c)(1) Interest received on bonds held for investment
18-11 and income received from other intangible property held
18-12 for investment are not subject to apportionment. All
18-13 expenses connected with such investment income shall be
18-14 applied against the investment income. The net
18-15 investment income from intangible property shall be
18-16 allocated to this state if the situs of the corporation
18-17 is in this state or if the intangible property was
18-18 acquired as income from property held in this state or
18-19 as a result of business done in this state.
18-20 (2) Rentals received from real estate held purely for
18-21 investment purposes and not used in the operation of any
18-22 business are not subject to apportionment. All expenses
18-23 connected with such investment income shall be applied
18-24 against the investment income. The net investment income
18-25 from tangible property located in this state shall be
18-26 allocated to this state.
18-27 (3) Gains from the sale of tangible or intangible
18-28 property not held, owned, or used in connection with the
18-29 trade or business of the corporation nor held for sale
18-30 in the regular course of business shall be allocated to
18-31 this state if the property sold is real or tangible
18-32 personal property situated in this state or intangible
18-33 property having an actual situs or a business situs
18-34 within this state. Otherwise, the gains shall not be
18-35 allocated to this state.
18-36 (d) Net income of the classes described in subsection (c)
18-37 of this Code section having been separately allocated and
18-38 deducted, the remainder of the net business income shall
18-39 be apportioned as follows:
18-40 (1)(A) Where the net business income of the
18-41 corporation is derived principally from the holding,
18-42 sale, or holding and sale of intangible property
-18- (Index)
LC 18 6430
19- 1 having a taxable situs in this state, the tax shall be
19- 2 imposed on the entire business income.
19- 3 (B) Where a portion of the intangible property has a
19- 4 taxable situs outside this state, the portion of the
19- 5 income derived from the holding, sale, or holding and
19- 6 sale of the intangible property attributable to this
19- 7 state shall be the percentage which the gross receipts
19- 8 from the intangible property in this state for the
19- 9 taxable year bear to the total gross receipts from
19-10 intangible property located within and outside this
19-11 state.
19-12 (C) The taxable situs of intangible property held or
19-13 owned by any domestic corporation or by any foreign
19-14 corporation whose principal place of business is in
19-15 this state shall be deemed to be in this state even
19-16 though a domicile of the corporation is established
19-17 outside this state.
19-18 (D) Intangible property derived from business done in
19-19 another state by a foreign corporation and held by the
19-20 corporation outside this state shall not be deemed to
19-21 have a taxable situs in this state by reason of the
19-22 fact that officers or directors of the corporation
19-23 reside in this state, corporate meetings are held in
19-24 this state, or corporate records are kept in this
19-25 state;
19-26 (2) Where the net business income of the corporation is
19-27 derived principally from the manufacture, production, or
19-28 sale of tangible personal property, the portion of the
19-29 net income therefrom attributable to property owned or
19-30 business done within this state shall be taken to be the
19-31 portion arrived at by application of the following three
19-32 factor formula:
19-33 (A) Property factor. The property factor is a
19-34 fraction, the numerator of which is the average value
19-35 of the taxpayer's real and tangible personal property
19-36 owned or rented and used in this state during the tax
19-37 period and the denominator of which is the average
19-38 value of all the taxpayer's real and tangible personal
19-39 property owned or rented and used during the tax
19-40 period;
19-41 (i) Property owned by the taxpayer is valued at its
19-42 original cost. Property rented by the taxpayer is
19-43 valued at eight times the net annual rental rate.
-19- (Index)
LC 18 6430
20- 1 Net annual rental rate is the annual rental rate
20- 2 paid by the taxpayer less any annual rental rate
20- 3 received by the taxpayer from subrentals;
20- 4 (ii) The average value of property shall be
20- 5 determined by averaging the values at the beginning
20- 6 and end of the tax period, except that the
20- 7 commissioner may require the averaging of monthly
20- 8 values during the tax period if such averaging is
20- 9 reasonably required to reflect properly the average
20-10 value of the taxpayer's property;
20-11 (B) Payroll factor. The payroll factor is a fraction,
20-12 the numerator of which is the total amount paid in
20-13 this state during the tax period by the taxpayer for
20-14 compensation and the denominator of which is the total
20-15 compensation paid everywhere during the tax period.
20-16 The term 'compensation' means wages, salaries,
20-17 commissions, and any other form of remuneration paid
20-18 to employees for personal services. Payments made to
20-19 an independent contractor or any other person not
20-20 properly classified as an employee are excluded.
20-21 Compensation is paid in this state if:
20-22 (i) The employee's service is performed entirely
20-23 within this state;
20-24 (ii) The employee's service is performed both within
20-25 and outside this state and the service performed
20-26 outside this state is incidental to the employee's
20-27 service within this state; or
20-28 (iii) Some of the service is performed in this state
20-29 and either the base of operations or the place from
20-30 which the service is directed or controlled is in
20-31 this state or the base of operations or the place
20-32 from which the service is directed or controlled is
20-33 not in any state in which some part of the service
20-34 is performed but the employee's residence is in this
20-35 state;
20-36 (C) Gross receipts factor. The gross receipts factor
20-37 is a fraction, the numerator of which is the total
20-38 gross receipts from business done within this state
20-39 during the tax period and the denominator of which is
20-40 the total gross receipts from business done everywhere
20-41 during the tax period. For the purposes of this
20-42 subparagraph, receipts shall be deemed to have been
20-43 derived from business done within this state only if
-20- (Index)
LC 18 6430
21- 1 the receipts are received from products shipped to
21- 2 customers in this state or products delivered within
21- 3 this state to customers. In determining the gross
21- 4 receipts within this state, receipts from sales
21- 5 negotiated or effected through offices of the taxpayer
21- 6 outside this state and delivered from storage in this
21- 7 state to customers outside this state shall be
21- 8 excluded;
21- 9 (D) The property factor, the payroll factor, and the
21-10 gross receipts factor shall be separately determined
21-11 and the three percentages averaged. The net income of
21-12 the corporation shall be apportioned to this state
21-13 according to such average;
21-14 (3) Where the net business income is derived principally
21-15 from business other than the manufacture, production, or
21-16 sale of tangible personal property or from the holding
21-17 or sale of intangible property, the net business income
21-18 of the corporation shall be equitably apportioned within
21-19 and outside this state in the ratio that the business
21-20 within this state bears to the total business of the
21-21 corporation;
21-22 (4) For the purposes of this subsection, the term 'sale'
21-23 shall include, but not be limited to, an exchange, and
21-24 the term 'manufacture' shall include, but not be limited
21-25 to, the extraction and recovery of natural resources and
21-26 all processes of fabricating and curing.
21-27 (e) The net income of a domestic or foreign corporation
21-28 which is a subsidiary of another corporation or which is
21-29 closely affiliated with another corporation by stock
21-30 ownership shall be determined by eliminating all payments
21-31 to the parent corporation or affiliated corporation in
21-32 excess of fair value and by including fair compensation to
21-33 the domestic business corporation for its commodities sold
21-34 to or services performed for the parent corporation or
21-35 affiliated corporation. For the purposes of determining
21-36 net income as provided in this subsection, the
21-37 commissioner may equitably determine the net income by
21-38 reasonable rules of apportionment of the combined income
21-39 of the subsidiary, its parent, and affiliates, or any
21-40 combination of the subsidiary, its parent, and any one or
21-41 more of its affiliates.
21-42 48-7-10. (Index)
-21- (Index)
LC 18 6430
22- 1 (a) When the business of any corporation engaged in the
22- 2 operation of a railroad, express service, telephone or
22- 3 telegraph business, or other form of public service is
22- 4 partly within and partly outside the state, the net income
22- 5 of the corporation for the purpose of this chapter shall
22- 6 be that amount ascertained by apportioning to the state
22- 7 the sum of the net income of the corporation including,
22- 8 but not limited to, dividend income that may legally be
22- 9 taxed by the state (exclusive of income from tax-exempt
22-10 securities and without any deduction for federal and state
22-11 income taxes), as shown by the corporation's records kept
22-12 in accordance with the standard classification of accounts
22-13 prescribed by the Interstate Commerce Commission when the
22-14 standard classification of accounts includes in net income
22-15 rents from all sources; and when the standard
22-16 classification does not include all rents, then such rents
22-17 shall be included in net income in the proportion that the
22-18 total gross operating revenues from business done wholly
22-19 within the state plus the equal mileage proportion within
22-20 the state of all gross operating revenues from interstate
22-21 business of the company, wherever done, bear to the total
22-22 gross operating revenues from all business done by the
22-23 company. If any such corporation keeps its records of
22-24 operating revenues and operating expenses on a state basis
22-25 in accordance with the standard classification of accounts
22-26 prescribed by the Interstate Commerce Commission and in a
22-27 manner which includes in net income for the state the
22-28 effect of all intrastate and interstate business
22-29 applicable to the state, the state records may be used by
22-30 the taxpayer under the supervision of the commissioner in
22-31 reporting the net taxable income within the state.
22-32 (b) All other corporations engaged in the business of
22-33 operating a railroad, express service, telephone or
22-34 telegraph business, or other form of public service,
22-35 whether or not the corporation is required to make reports
22-36 to the Interstate Commerce Commission, shall keep records
22-37 according to the standard classifications of accounting of
22-38 the Interstate Commerce Commission. The net income of the
22-39 corporation including, but not limited to, dividend income
22-40 that can legally be taxed by the state (exclusive of
22-41 tax-exempt securities and without any deduction for
22-42 federal and state income taxes) shall be determined in
22-43 accordance with such records. If any such corporation
22-44 keeps its records of operating revenues and operating
22-45 expenses on a state basis in accordance with the standard
-22- (Index)
LC 18 6430
23- 1 classification of accounts prescribed by the Interstate
23- 2 Commerce Commission and in a manner which includes in net
23- 3 income for the state the effect of all intrastate and
23- 4 interstate business applicable to the state, the state
23- 5 records may, with the consent of the commissioner, be used
23- 6 by the taxpayer in reporting the net taxable income within
23- 7 the state.
23- 8 48-7-11. (Index)
23- 9 (a) The net income shall be computed upon the basis of the
23-10 taxpayer's annual accounting period in accordance with the
23-11 method of accounting regularly employed in keeping the
23-12 books of the taxpayer. If no such method of accounting has
23-13 been so employed or if the method employed does not
23-14 clearly reflect the income, the computation shall be made
23-15 in accordance with the method which, in the opinion of the
23-16 commissioner, clearly reflects the income. If the
23-17 taxpayer's annual accounting period is other than a fiscal
23-18 year or if the taxpayer has no annual accounting period or
23-19 does not keep books, the net income shall be computed on
23-20 the basis of the calendar year. A taxpayer utilizing a
23-21 fiscal year may return his net income under this chapter
23-22 on the basis of his fiscal year with the approval of the
23-23 commissioner and subject to such rules and regulations as
23-24 the commissioner may establish.
23-25 (b) With the approval of the commissioner and under such
23-26 regulations as he may prescribe, a taxpayer may change his
23-27 taxable year from fiscal year to calendar year or
23-28 otherwise. In the case of any such change, the net income
23-29 shall be computed upon the basis of the new taxable year
23-30 when approval is obtained from the commissioner at least
23-31 30 days prior to the close of the proposed taxable year.
23-32 (c) The amount of all items of gross income shall be
23-33 included in the gross income for the taxable year in which
23-34 received by the taxpayer unless, under methods of
23-35 accounting permitted by this Code section, any amounts of
23-36 gross income are to be properly accounted for as of a
23-37 different period.
23-38 (d) The deductions and credits provided for in this
23-39 chapter shall be taken for the taxable year in which 'paid
23-40 or accrued' or 'paid or incurred' depending upon the
23-41 method of accounting on the basis of which the net income
23-42 is computed unless, in order to clearly reflect the
-23- (Index)
LC 18 6430
24- 1 income, the deductions or credits should be taken as of a
24- 2 different period.
24- 3 (e) Whenever in the opinion of the commissioner it is
24- 4 necessary in order to determine clearly the income of any
24- 5 taxpayer, inventories shall be taken by the taxpayer on
24- 6 the basis prescribed by the commissioner. Each such basis
24- 7 shall conform as nearly as possible to the best accounting
24- 8 practice in the particular trade or business which most
24- 9 clearly reflects the income.
24-10 (f) If a return has been filed within the three years
24-11 immediately preceding the date of the taxpayer's death,
24-12 income and expenses of a taxpayer who dies during the
24-13 taxable year shall be computed on the same method of
24-14 accounting, whether cash or accrual, as was used by the
24-15 taxpayer in the preparation of the last income tax return
24-16 filed by him with the commissioner. If no return has been
24-17 filed within the three-year period, the return of a
24-18 deceased taxpayer shall be prepared on the cash method
24-19 unless the commissioner certifies that the cash method,
24-20 because of particular circumstances, is not reasonable to
24-21 either the state or the heirs, legatees, or devisees
24-22 interested in the taxpayer's estate. If the commissioner
24-23 certifies that the cash method is unreasonable, he may
24-24 order the preparation of the return on the accrual method.
24-25 48-7-12. (Index)
24-26 If any corporation employs in its books of account a
24-27 detailed allocation of receipts and expenditures which
24-28 reflects more clearly than the processes or formulas
24-29 prescribed by this chapter the income attributable to the
24-30 trade or business within this state, application for
24-31 permission to base its return upon the books of account
24-32 shall be considered by the commissioner. The application
24-33 shall be made at least 60 days prior to the last day on
24-34 which the taxpayer's return is to be filed and shall be
24-35 accompanied by a full and complete explanation of the
24-36 method employed.
24-37 48-7-13. (Index)
24-38 If any corporation shows by any method of allocation other
24-39 than the processes or formulas prescribed by this chapter
24-40 that another method reflects more clearly the income
24-41 attributable to the trade or business within this state,
24-42 application for permission to base its return upon the
24-43 other method shall be considered by the commissioner. The
-24- (Index)
LC 18 6430
25- 1 application shall be accompanied by a statement setting
25- 2 forth in detail with full explanations the method the
25- 3 taxpayer believes will more clearly reflect its income
25- 4 from business within the state. If the commissioner
25- 5 concludes that the method of allocation and apportionment
25- 6 submitted by the taxpayer is in fact inapplicable and
25- 7 inequitable, he shall reject the application and shall so
25- 8 notify the taxpayer. Failure to receive the commissioner's
25- 9 notice shall not operate to relieve the taxpayer from
25-10 liability for not filing the return on its due date
25-11 utilizing the allocation and apportionment method
25-12 prescribed by this chapter.
25-13 48-7-14. (Index)
25-14 (a) As used in this Code section, the term:
25-15 (1) 'Member of a minority' means an individual who is a
25-16 member of a race which comprises less than 50 percent of
25-17 the total population of the state.
25-18 (2) 'Minority subcontractor' means any business which is
25-19 owned by:
25-20 (A) An individual who is a member of a minority;
25-21 (B) A partnership in which a majority of the ownership
25-22 interest is owned by one or more members of a
25-23 minority; or
25-24 (C) A corporation organized under the laws of this
25-25 state in which a majority of the common stock is owned
25-26 by one or more members of a minority.
25-27 (3) 'State contract' means a contract for the purchase
25-28 by the state of goods, property, or services or for the
25-29 construction of any building or structure for the state,
25-30 which contract is executed by any department, board,
25-31 bureau, commission, or agency of state government, by
25-32 any state authority, or by any officer, official,
25-33 employee, or agent of any of the foregoing.
25-34 (b) In computing Georgia taxable net income of a
25-35 corporation, there shall be subtracted from federal
25-36 taxable income or federal adjusted gross income 10 percent
25-37 of the amount of qualified payments to minority
25-38 subcontractors. A payment to a minority subcontractor
25-39 shall be a qualified payment if:
25-40 (1) The payment is for goods, personal property, or
25-41 services furnished by the minority subcontractor to the
-25- (Index)
LC 18 6430
26- 1 taxpayer and delivered by the taxpayer to the state in
26- 2 furtherance of a state contract to which the taxpayer is
26- 3 a party; and the payment does not exceed the value of
26- 4 the goods, property, or services to the taxpayer;
26- 5 (2) The payment is made during the taxable year for
26- 6 which the subtraction from federal taxable income or
26- 7 federal adjusted gross income is claimed; and
26- 8 (3) The payment is made to a subcontractor who at the
26- 9 time of the payment is certified as a minority
26-10 contractor pursuant to subsection (d) of this Code
26-11 section.
26-12 (c) The total amount which may be subtracted under this
26-13 Code section from federal taxable income or federal
26-14 adjusted gross income of any taxpayer shall be limited to
26-15 $100,000.00 per taxable year.
26-16 (d) The commissioner of administrative services shall
26-17 certify individuals, partnerships, and corporations which
26-18 are within the definition of the term 'minority
26-19 subcontractor' specified in subsection (a) of this Code
26-20 section. The department may disclose to the commissioner
26-21 of administrative services the income tax returns of
26-22 taxpayers applying for certification as minority
26-23 subcontractors. The commissioner of administrative
26-24 services shall maintain and periodically revise a list of
26-25 certified minority subcontractors and shall make such list
26-26 available to the department and to the general public.
26-27 48-7-15. (Index)
26-28 (a) As used in this Code section, the term 'business
26-29 enterprise' means any business or the headquarters of any
26-30 such business which is engaged in manufacturing,
26-31 warehousing and distribution, processing, tourism, and
26-32 research and development industries. Such term shall not
26-33 include retail businesses.
26-34 (b)(1) Not later than December 31 of each year, using
26-35 the most current data available from the Department of
26-36 Labor and the United States Department of Commerce, the
26-37 commissioner of community affairs shall rank and
26-38 designate as less developed areas all 159 counties in
26-39 this state using a combination of the following factors:
26-40 (A) Highest unemployment rate for the most recent 36
26-41 month period;
-26- (Index)
LC 18 6430
27- 1 (B) Lowest per capita income for the most recent 36
27- 2 month period;
27- 3 (C) Highest percentage of residents whose incomes are
27- 4 below the poverty level according to the most recent
27- 5 data available; and
27- 6 (D) Average weekly manufacturing wage according to the
27- 7 most recent data available.
27- 8 (2) Counties ranked and designated as the first through
27- 9 fifty-third least developed counties shall be classified
27-10 as tier 1, counties ranked and designated as the
27-11 fifty-fourth through one hundred sixth least developed
27-12 counties shall be classified as tier 2, and counties
27-13 ranked and designated as the one hundred seventh through
27-14 one hundred fifty-ninth least developed counties shall
27-15 be classified as tier 3.
27-16 (c) The commissioner of community affairs shall be
27-17 authorized to include in the tier 2 designation provided
27-18 for in subsection (b) of this Code section any tier 3
27-19 county which, in the opinion of the commissioner of
27-20 community affairs, undergoes a sudden and severe period of
27-21 economic distress caused by the closing of one or more
27-22 business enterprises located in such county. No
27-23 designation made pursuant to this subsection shall operate
27-24 to displace or remove any other county previously
27-25 designated as a tier 2 county.
27-26 (d) For business enterprises which plan a significant
27-27 expansion in their labor forces, the commissioner of
27-28 community affairs shall prescribe redesignation procedures
27-29 to ensure that the business enterprises can claim credits
27-30 in future years without regard to whether or not a
27-31 particular county is reclassified in a different tier.
27-32 (e) Business enterprises in counties designated by the
27-33 commissioner of community affairs as tier 1 counties shall
27-34 be allowed a job tax credit for taxes imposed under this
27-35 chapter equal to $2,500.00 annually, business enterprises
27-36 in counties designated by the commissioner of community
27-37 affairs as tier 2 counties shall be allowed a job tax
27-38 credit for taxes imposed under this chapter equal to
27-39 $1,500.00 annually, and business enterprises in counties
27-40 designated by the commissioner of community affairs as
27-41 tier 3 counties shall be allowed a job tax credit for
27-42 taxes imposed under this chapter equal to $500.00 annually
27-43 for each new full-time employee job for five years
-27- (Index)
LC 18 6430
28- 1 beginning with years two through six after the creation of
28- 2 the job. The number of new full-time jobs shall be
28- 3 determined by comparing the monthly average number of
28- 4 full-time employees subject to Georgia income tax
28- 5 withholding for the taxable year with the corresponding
28- 6 period of the prior taxable year. In tier 1 counties,
28- 7 only those business enterprises that increase employment
28- 8 by ten or more shall be eligible for the credit. In tier
28- 9 2 counties, only those business enterprises that increase
28-10 employment by 25 or more shall be eligible for the credit.
28-11 In tier 3 counties, only those business enterprises that
28-12 increase employment by 50 or more shall be eligible for
28-13 the credit. Credit shall not be allowed during a year if
28-14 the net employment increase falls below the number
28-15 required in such tier. Any credit received for years
28-16 prior to the year in which the net employment increase
28-17 falls below the number required in such tier shall not be
28-18 affected. The state revenue commissioner shall adjust the
28-19 credit allowed each year for net new employment
28-20 fluctuations above the minimum level of the number
28-21 required in such tier.
28-22 (f) Tax credits for five years for the taxes imposed under
28-23 this chapter shall be awarded for additional new full-time
28-24 jobs created by business enterprises qualified under
28-25 subsection (b) or (c) of this Code section. Additional new
28-26 full-time jobs shall be determined by subtracting the
28-27 highest total employment of the business enterprise during
28-28 years two through six, or whatever portion of years two
28-29 through six which has been completed, from the total
28-30 increased employment. The state revenue commissioner
28-31 shall adjust the credit allowed in the event of employment
28-32 fluctuations during the additional five years of credit.
28-33 (g) The sale, merger, acquisition, or bankruptcy of any
28-34 business enterprise shall not create new eligibility in
28-35 any succeeding business entity, but any unused job tax
28-36 credit may be transferred and continued by any transferee
28-37 of the business enterprise. The commissioner of community
28-38 affairs shall determine whether or not qualifying net
28-39 increases or decreases have occurred and may require
28-40 reports, promulgate regulations, and hold hearings as
28-41 needed for substantiation and qualification.
28-42 (h) Any credit claimed under this Code section but not
28-43 used in any taxable year may be carried forward for ten
28-44 years from the close of the taxable year in which the
-28- (Index)
LC 18 6430
29- 1 qualified jobs were established, but the credit
29- 2 established by this Code section taken in any one taxable
29- 3 year shall be limited to an amount not greater than 50
29- 4 percent of the taxpayer's state income tax liability which
29- 5 is attributable to income derived from operations in this
29- 6 state for that taxable year.
29- 7 48-7-16. (Index)
29- 8 (a) As used in this Code section, the term 'business
29- 9 enterprise' means any business which is engaged in
29-10 manufacturing, warehousing and distribution, processing,
29-11 tourism, and research and development industries. Such
29-12 term shall not include retail businesses.
29-13 (b) Not later than December 31 of each year, using the
29-14 most current data available from the Department of Labor
29-15 and the United States Department of Commerce, the
29-16 commissioner of community affairs shall rank and designate
29-17 as less developed areas the areas which are comprised of
29-18 ten or more contiguous census tracts in this state using a
29-19 combination of the following factors:
29-20 (1) Highest unemployment rate for the most recent 36
29-21 month period;
29-22 (2) Lowest per capita income for the most recent 36
29-23 month period; and
29-24 (3) Highest percentage of residents whose income is
29-25 below the poverty level according to the most recent
29-26 data available.
29-27 (c) The commissioner of community affairs shall be
29-28 authorized to include in the designation provided for in
29-29 subsection (b) of this Code section:
29-30 (1) Any area comprised of ten or more contiguous census
29-31 tracts which, in the opinion of the commissioner of
29-32 community affairs, undergoes a sudden and severe period
29-33 of economic distress caused by the closing of one or
29-34 more business enterprises located in such area; or
29-35 (2) Any area comprised of one or more contiguous census
29-36 tracts which, in the opinion of the commissioner of
29-37 community affairs, is or will be adversely impacted by
29-38 the loss of one or more jobs, businesses, or residences
29-39 as a result of an airport expansion, including noise
29-40 buy-outs, or the closing of a business enterprise which,
29-41 in the opinion of the commissioner of community affairs,
-29- (Index)
LC 18 6430
30- 1 results or will result in a sudden and severe period of
30- 2 economic distress.
30- 3 No designation made pursuant to this subsection shall
30- 4 operate to displace or remove any other area previously
30- 5 designated as a less developed area.
30- 6 (d) For business enterprises which plan a significant
30- 7 expansion in their labor forces, the commissioner of
30- 8 community affairs shall prescribe redesignation procedures
30- 9 to ensure that the business enterprises can claim credits
30-10 in future years without regard to whether or not a
30-11 particular area is removed from the list of less developed
30-12 areas.
30-13 (e) Business enterprises in areas designated by the
30-14 commissioner of community affairs as less developed areas
30-15 shall be allowed a job tax credit for taxes imposed under
30-16 this chapter equal to $2,500.00 annually for each new
30-17 full-time employee job for five years beginning with years
30-18 two through six after the creation of the job. The number
30-19 of new full-time jobs shall be determined by comparing the
30-20 monthly average number of full-time employees subject to
30-21 Georgia income tax withholding for the taxable year with
30-22 the corresponding period of the prior taxable year. Only
30-23 those business enterprises that increase employment by ten
30-24 or more in a less developed area shall be eligible for the
30-25 credit. In addition, not less than 30 percent of such new
30-26 full-time jobs must be held by a resident of the less
30-27 developed area for which the credit is sought or another
30-28 such designated less developed area. Credit shall not be
30-29 allowed during a year if the net employment increase falls
30-30 below ten. Any credit received for years prior to the
30-31 year in which the net employment increase falls below ten
30-32 shall not be affected. The state revenue commissioner
30-33 shall adjust the credit allowed each year for net new
30-34 employment fluctuations above the minimum level of ten.
30-35 (f) Tax credits for five years for the taxes imposed under
30-36 this chapter shall be awarded for additional new full-time
30-37 jobs created by business enterprises qualified under
30-38 subsection (b) or (c) of this Code section. Additional new
30-39 full-time jobs shall be determined by subtracting the
30-40 highest total employment of the business enterprise during
30-41 years two through six, or whatever portion of years two
30-42 through six which has been completed, from the total
30-43 increased employment. The state revenue commissioner
-30- (Index)
LC 18 6430
31- 1 shall adjust the credit allowed in the event of employment
31- 2 fluctuations during the additional five years of credit.
31- 3 (g) The sale, merger, acquisition, or bankruptcy of any
31- 4 business enterprise shall not create new eligibility in
31- 5 any succeeding business entity, but any unused job tax
31- 6 credit may be transferred and continued by any transferee
31- 7 of the business enterprise. The commissioner of community
31- 8 affairs shall determine whether or not qualifying net
31- 9 increases or decreases have occurred and may require
31-10 reports, promulgate regulations, and hold hearings as
31-11 needed for substantiation and qualification.
31-12 (h) Any credit claimed under this Code section but not
31-13 used in any taxable year may be carried forward for ten
31-14 years from the close of the taxable year in which the
31-15 qualified jobs were established, but the credit
31-16 established by this Code section taken in any one taxable
31-17 year shall be limited to an amount not greater than 50
31-18 percent of the taxpayer's state income tax liability which
31-19 is attributable to income derived from operations in this
31-20 state for that taxable year.
31-21 48-7-17. (Index)
31-22 (a) As used in this Code section, the term:
31-23 (1) 'Product' means a marketable product or component of
31-24 a product which has an economic value to the wholesale
31-25 or retail consumer and is ready to be used without
31-26 further alteration of its form or a product or material
31-27 which is marketed as a prepared material or is a
31-28 component in the manufacturing and assembly of other
31-29 finished products.
31-30 (2) 'Qualified investment property' means all real and
31-31 personal property purchased or acquired by a taxpayer
31-32 for use in the construction of an additional
31-33 manufacturing facility to be located in this state or
31-34 the expansion of an existing manufacturing facility
31-35 located in this state, including, but not limited to,
31-36 amounts expended on land acquisition, improvements,
31-37 buildings, building improvements, and machinery and
31-38 equipment to be used in the manufacturing facility.
31-39 (3) 'Recovered materials' means those materials,
31-40 including but not limited to such materials as aluminum,
31-41 oil, plastic, paper, paper products, scrap metal, iron,
31-42 glass, and rubber, which have known use, reuse, or
-31- (Index)
LC 18 6430
32- 1 recycling potential; can be feasibly used, reused, or
32- 2 recycled; and have been diverted or removed from the
32- 3 solid waste stream for sale, use, reuse, or recycling,
32- 4 whether or not requiring subsequent separation and
32- 5 processing.
32- 6 (4) 'Recycling' means any process by which materials
32- 7 which would otherwise become solid waste are collected,
32- 8 separated, or processed and reused or returned to use in
32- 9 the form of raw materials or products.
32-10 (5) 'Recycling machinery and equipment' means all
32-11 tangible personal property used, directly or indirectly,
32-12 to sort, store, prepare, convert, process, fabricate, or
32-13 manufacture recovered materials into finished products
32-14 which are composed of at least 25 percent recovered
32-15 materials, such term including, but not being limited
32-16 to, power generation and pollution control machinery and
32-17 equipment.
32-18 (6) 'Recycling manufacturing facility' means any
32-19 facility, including land, improvements to land,
32-20 buildings, building improvements, and any recycling
32-21 machinery and equipment used in the recycling process
32-22 resulting in the manufacture of finished products from
32-23 recovered materials, provided that up to 10 percent of
32-24 any building that is a component of a recycling facility
32-25 may be used for office space to house support staff for
32-26 the recycling operation.
32-27 (b) In the case of a corporation or person which has
32-28 operated for the immediately preceding three years an
32-29 existing manufacturing facility in this state in a tier 1
32-30 county designated pursuant to Code Section 48-7-15, there
32-31 shall be allowed a credit against the tax imposed under
32-32 Code Section 48-7-7 in an amount equal to 5 percent of the
32-33 cost of all qualified investment property purchased or
32-34 acquired by the taxpayer in such year, subject to the
32-35 conditions and limitations set forth in this Code section.
32-36 In the event such qualified investment property purchased
32-37 or acquired by the taxpayer in such year consists of
32-38 recycling machinery or equipment, a recycling
32-39 manufacturing facility, pollution control or prevention
32-40 machinery or equipment, a pollution control or prevention
32-41 facility, or the conversion from defense to domestic
32-42 production, the amount of such credit shall be equal to 8
32-43 percent.
-32- (Index)
LC 18 6430
33- 1 (c) The credit granted under subsection (b) of this Code
33- 2 section shall be subject to the following conditions and
33- 3 limitations:
33- 4 (1) In order to qualify as a basis for the credit, the
33- 5 investment in qualified investment property must occur
33- 6 no sooner than January 1, 1994. The credit may be taken
33- 7 beginning with the tax year immediately following the
33- 8 tax year in which the qualified investment property
33- 9 having an aggregate cost in excess of $1 million is
33-10 purchased or acquired by the taxpayer. For every year
33-11 in which a taxpayer claims the credit, the taxpayer
33-12 shall attach a schedule to the taxpayer's Georgia income
33-13 tax return which will set forth the following
33-14 information, as a minimum:
33-15 (A) A description of the project;
33-16 (B) The amount of qualified investment property
33-17 acquired during the taxable year;
33-18 (C) The amount of tax credit claimed for the taxable
33-19 year;
33-20 (D) The amount of qualified investment property
33-21 acquired in prior taxable years;
33-22 (E) Any tax credit utilized by the taxpayer in prior
33-23 taxable years;
33-24 (F) The amount of tax credit carried over from prior
33-25 years;
33-26 (G) The amount of tax credit utilized by the taxpayer
33-27 in the current taxable year; and
33-28 (H) The amount of tax credit to be carried over to
33-29 subsequent tax years;
33-30 (2) Any credit claimed under this Code section but not
33-31 used in any taxable year may be carried forward for five
33-32 years from the close of the taxable year in which the
33-33 qualified investment property was acquired, provided
33-34 that such qualified investment property remain in
33-35 service. The credit established by this Code section
33-36 taken in any one taxable year shall be limited to an
33-37 amount not greater than 50 percent of the taxpayer's
33-38 state income tax liability which is attributable to
33-39 income derived from operations in this state for that
33-40 taxable year. The sale, merger, acquisition, or
33-41 bankruptcy of any taxpayer shall not create new
-33- (Index)
LC 18 6430
34- 1 eligibility in any succeeding taxpayer, but any unused
34- 2 credit may be transferred and continued by any
34- 3 transferee of the taxpayer.
34- 4 (3) In the initial year in which the taxpayer claims the
34- 5 credit granted in subsection (b) of this Code section,
34- 6 the taxpayer shall include in the description of the
34- 7 project required by subparagraph (A) of paragraph (1) of
34- 8 this subsection information which demonstrates that the
34- 9 project includes the acquisition of qualified investment
34-10 property having an aggregate cost in excess of $1
34-11 million;
34-12 (4) Any lease for a period of five years or longer of
34-13 any real or personal property used in a new or expanded
34-14 manufacturing facility which would otherwise constitute
34-15 qualified investment property shall be treated as the
34-16 purchase or acquisition of qualified investment property
34-17 by the lessee. The taxpayer may treat the full value of
34-18 the leased property as qualified investment property in
34-19 the taxable year in which the lease becomes binding on
34-20 the lessor and the taxpayer if all other conditions of
34-21 this subsection have been met; and
34-22 (5) The utilization of the credit granted in subsection
34-23 (b) of this Code section shall have no effect on the
34-24 taxpayer's ability to claim depreciation for tax
34-25 purposes on the assets acquired by the corporation nor
34-26 shall the credit have any effect on the taxpayer's basis
34-27 in such assets for the purpose of depreciation.
34-28 (d) No taxpayer shall be authorized to claim on a tax
34-29 return for a tax year the credit provided for in this Code
34-30 section if such taxpayer claims on such tax return any of
34-31 the credits authorized under Code Section 48-7-15 or
34-32 48-7-16.
34-33 48-7-18. (Index)
34-34 (a) As used in this Code section, the term:
34-35 (1) 'Product' means a marketable product or component of
34-36 a product which has an economic value to the wholesale
34-37 or retail consumer and is ready to be used without
34-38 further alteration of its form or a product or material
34-39 which is marketed as a prepared material or is a
34-40 component in the manufacturing and assembly of other
34-41 finished products.
-34- (Index)
LC 18 6430
35- 1 (2) 'Qualified investment property' means all real and
35- 2 personal property purchased or acquired by a taxpayer
35- 3 for use in the construction of an additional
35- 4 manufacturing facility to be located in this state or
35- 5 the expansion of an existing manufacturing facility
35- 6 located in this state, including, but not limited to,
35- 7 amounts expended on land acquisition, improvements,
35- 8 buildings, building improvements, and machinery and
35- 9 equipment to be used in the manufacturing facility.
35-10 (3) 'Recovered materials' means those materials,
35-11 including but not limited to such materials as aluminum,
35-12 oil, plastic, paper, paper products, scrap metal, iron,
35-13 glass, and rubber, which have known use, reuse, or
35-14 recycling potential; can be feasibly used, reused, or
35-15 recycled; and have been diverted or removed from the
35-16 solid waste stream for sale, use, reuse, or recycling,
35-17 whether or not requiring subsequent separation and
35-18 processing.
35-19 (4) 'Recycling' means any process by which materials
35-20 which would otherwise become solid waste are collected,
35-21 separated, or processed and reused or returned to use in
35-22 the form of raw materials or products.
35-23 (5) 'Recycling machinery and equipment' means all
35-24 tangible personal property used, directly or indirectly,
35-25 to sort, store, prepare, convert, process, fabricate, or
35-26 manufacture recovered materials into products which are
35-27 composed of at least 25 percent recovered materials,
35-28 such term including, but not being limited to, power
35-29 generation and pollution control machinery and
35-30 equipment.
35-31 (6) 'Recycling manufacturing facility' means any
35-32 facility, including land, improvements to land,
35-33 buildings, building improvements, and any recycling
35-34 machinery and equipment used in the recycling process
35-35 resulting in the manufacture of products from recovered
35-36 materials, provided that up to 10 percent of any
35-37 building that is a component of a recycling facility may
35-38 be used for office space to house support staff for the
35-39 recycling operation.
35-40 (b) In the case of a corporation or person which has
35-41 operated for the immediately preceding three years an
35-42 existing manufacturing facility in this state in a tier 2
35-43 county designated pursuant to Code Section 48-7-15, there
-35- (Index)
LC 18 6430
36- 1 shall be allowed a credit against the tax imposed under
36- 2 Code Section 48-7-7 in an amount equal to 3 percent of the
36- 3 cost of all qualified investment property purchased or
36- 4 acquired by the taxpayer in such year, subject to the
36- 5 conditions and limitations set forth in this Code section.
36- 6 In the event such qualified investment property purchased
36- 7 or acquired by the taxpayer in such year consists of
36- 8 recycling machinery or equipment, a recycling
36- 9 manufacturing facility, pollution control or prevention
36-10 machinery or equipment, a pollution control or prevention
36-11 facility, or the conversion from defense to domestic
36-12 production, the amount of such credit shall be equal to 5
36-13 percent.
36-14 (c) The credit granted under subsection (b) of this Code
36-15 section shall be subject to the following conditions and
36-16 limitations:
36-17 (1) In order to qualify as a basis for the credit, the
36-18 investment in qualified investment property must occur
36-19 no sooner than January 1, 1994. The credit may be taken
36-20 beginning with the tax year immediately following the
36-21 tax year in which the qualified investment property
36-22 having an aggregate cost in excess of $3 million is
36-23 purchased or acquired by the taxpayer. For every year
36-24 in which a taxpayer claims the credit, the taxpayer
36-25 shall attach a schedule to the taxpayer's Georgia income
36-26 tax return which will set forth the following
36-27 information, as a minimum:
36-28 (A) A description of the project;
36-29 (B) The amount of qualified investment property
36-30 acquired during the taxable year;
36-31 (C) The amount of tax credit claimed for the taxable
36-32 year;
36-33 (D) The amount of qualified investment property
36-34 acquired in prior taxable years;
36-35 (E) Any tax credit utilized by the taxpayer in prior
36-36 taxable years;
36-37 (F) The amount of tax credit carried over from prior
36-38 years;
36-39 (G) The amount of tax credit utilized by the taxpayer
36-40 in the current taxable year; and
-36- (Index)
LC 18 6430
37- 1 (H) The amount of tax credit to be carried over to
37- 2 subsequent tax years;
37- 3 (2) Any credit claimed under this Code section but not
37- 4 used in any taxable year may be carried forward for five
37- 5 years from the close of the taxable year in which the
37- 6 qualified investment property was acquired, provided
37- 7 that such qualified investment property remains in
37- 8 service. The credit established by this Code section
37- 9 taken in any one taxable year shall be limited to an
37-10 amount not greater than 50 percent of the taxpayer's
37-11 state income tax liability which is attributable to
37-12 income derived from operations in this state for that
37-13 taxable year. The sale, merger, acquisition, or
37-14 bankruptcy of any taxpayer shall not create new
37-15 eligibility in any succeeding taxpayer, but any unused
37-16 credit may be transferred and continued by any
37-17 transferee of the taxpayer;
37-18 (3) In the initial year in which the taxpayer claims the
37-19 credit granted in subsection (b) of this Code section,
37-20 the taxpayer shall include in the description of the
37-21 project required by subparagraph (A) of paragraph (1) of
37-22 this subsection information which demonstrates that the
37-23 project includes the acquisition of qualified investment
37-24 property having an aggregate cost in excess of $3
37-25 million;
37-26 (4) Any lease for a period of five years or longer of
37-27 any real or personal property used in a new or expanded
37-28 manufacturing facility which would otherwise constitute
37-29 qualified investment property shall be treated as the
37-30 purchase or acquisition of qualified investment property
37-31 by the lessee. The taxpayer may treat the full value of
37-32 the leased property as qualified investment property in
37-33 the taxable year in which the lease becomes binding on
37-34 the lessor and the taxpayer if all other conditions of
37-35 this subsection have been met; and
37-36 (5) The utilization of the credit granted in subsection
37-37 (b) of this Code section shall have no effect on the
37-38 taxpayer's ability to claim depreciation for tax
37-39 purposes on the assets acquired by the corporation nor
37-40 shall the credit have any effect on the taxpayer's basis
37-41 in such assets for the purpose of depreciation.
37-42 (d) No taxpayer shall be authorized to claim on a tax
37-43 return for a tax year the credit provided for in this Code
-37- (Index)
LC 18 6430
38- 1 section if such taxpayer claims on such tax return any of
38- 2 the credits authorized under Code Section 48-7-15 or
38- 3 48-7-16.
38- 4 48-7-19. (Index)
38- 5 (a) As used in this Code section, the term:
38- 6 (1) 'Product' means a marketable product or component of
38- 7 a product which has an economic value to the wholesale
38- 8 or retail consumer and is ready to be used without
38- 9 further alteration of its form or a product or material
38-10 which is marketed as a prepared material or is a
38-11 component in the manufacturing and assembly of other
38-12 finished products.
38-13 (2) 'Qualified investment property' means all real and
38-14 personal property purchased or acquired by a taxpayer
38-15 for use in the construction of an additional
38-16 manufacturing facility to be located in this state or
38-17 the expansion of an existing manufacturing facility
38-18 located in this state, including, but not limited to,
38-19 amounts expended on land acquisition, improvements,
38-20 buildings, building improvements, and machinery and
38-21 equipment to be used in the manufacturing facility.
38-22 (3) 'Recovered materials' means those materials,
38-23 including but not limited to such materials as aluminum,
38-24 oil, plastic, paper, paper products, scrap metal, iron,
38-25 glass, and rubber, which have known use, reuse, or
38-26 recycling potential; can be feasibly used, reused, or
38-27 recycled; and have been diverted or removed from the
38-28 solid waste stream for sale, use, reuse, or recycling,
38-29 whether or not requiring subsequent separation and
38-30 processing.
38-31 (4) 'Recycling' means any process by which materials
38-32 which would otherwise become solid waste are collected,
38-33 separated, or processed and reused or returned to use in
38-34 the form of raw materials or products.
38-35 (5) 'Recycling machinery and equipment' means all
38-36 tangible personal property used, directly or indirectly,
38-37 to sort, store, prepare, convert, process, fabricate, or
38-38 manufacture recovered materials into products which are
38-39 composed of at least 25 percent recovered materials,
38-40 such term including, but not being limited to, power
38-41 generation and pollution control machinery and
38-42 equipment.
-38- (Index)
LC 18 6430
39- 1 (6) 'Recycling manufacturing facility' means any
39- 2 facility, including land, improvements to land,
39- 3 buildings, building improvements, and any recycling
39- 4 machinery and equipment used in the recycling process
39- 5 resulting in the manufacture of products from recovered
39- 6 materials, provided that up to 10 percent of any
39- 7 building that is a component of a recycling facility may
39- 8 be used for office space to house support staff for the
39- 9 recycling operation.
39-10 (b) In the case of a corporation or person which has
39-11 operated for the immediately preceding three years an
39-12 existing manufacturing facility in this state in a tier 3
39-13 county designated pursuant to Code Section 48-7-15, there
39-14 shall be allowed a credit against the tax imposed under
39-15 Code Section 48-7-7 in an amount equal to 1 percent of the
39-16 cost of all qualified investment property purchased or
39-17 acquired by the taxpayer in such year, subject to the
39-18 conditions and limitations set forth in this Code section.
39-19 In the event such qualified investment property purchased
39-20 or acquired by the taxpayer in such year consists of
39-21 recycling machinery or equipment, a recycling
39-22 manufacturing facility, pollution control or prevention
39-23 machinery or equipment, a pollution control or prevention
39-24 facility, or the conversion from defense to domestic
39-25 production, the amount of such credit shall be equal to 3
39-26 percent.
39-27 (c) The credit granted under subsection (b) of this Code
39-28 section shall be subject to the following conditions and
39-29 limitations:
39-30 (1) In order to qualify as a basis for the credit, the
39-31 investment in qualified investment property must occur
39-32 no sooner than January 1, 1994. The credit may be taken
39-33 beginning with the tax year immediately following the
39-34 tax year in which the qualified investment property
39-35 having an aggregate cost in excess of $5 million is
39-36 purchased or acquired by the taxpayer. For every year
39-37 in which a taxpayer claims the credit, the taxpayer
39-38 shall attach a schedule to the taxpayer's Georgia income
39-39 tax return which will set forth the following
39-40 information, as a minimum:
39-41 (A) A description of the project;
39-42 (B) The amount of qualified investment property
39-43 acquired during the taxable year;
-39- (Index)
LC 18 6430
40- 1 (C) The amount of tax credit claimed for the taxable
40- 2 year;
40- 3 (D) The amount of qualified investment property
40- 4 acquired in prior taxable years;
40- 5 (E) Any tax credit utilized by the taxpayer in prior
40- 6 taxable years;
40- 7 (F) The amount of tax credit carried over from prior
40- 8 years;
40- 9 (G) The amount of tax credit utilized by the taxpayer
40-10 in the current taxable year; and
40-11 (H) The amount of tax credit to be carried over to
40-12 subsequent tax years;
40-13 (2) Any credit claimed under this Code section but not
40-14 used in any taxable year may be carried forward for five
40-15 years from the close of the taxable year in which the
40-16 qualified investment property was acquired, provided
40-17 that such qualified investment property remains in
40-18 service. The credit established by this Code section
40-19 taken in any one taxable year shall be limited to an
40-20 amount not greater than 50 percent of the taxpayer's
40-21 state income tax liability which is attributable to
40-22 income derived from operations in this state for that
40-23 taxable year. The sale, merger, acquisition, or
40-24 bankruptcy of any taxpayer shall not create new
40-25 eligibility in any succeeding taxpayer, but any unused
40-26 credit may be transferred and continued by any
40-27 transferee of the taxpayer;
40-28 (3) In the initial year in which the taxpayer claims the
40-29 credit granted in subsection (b) of this Code section,
40-30 the taxpayer shall include in the description of the
40-31 project required by subparagraph (A) of paragraph (1) of
40-32 this subsection information which demonstrates that the
40-33 project includes the acquisition of qualified investment
40-34 property having an aggregate cost in excess of $5
40-35 million;
40-36 (4) Any lease for a period of five years or longer of
40-37 any real or personal property used in a new or expanded
40-38 manufacturing facility which would otherwise constitute
40-39 qualified investment property shall be treated as the
40-40 purchase or acquisition of qualified investment property
40-41 by the lessee. The taxpayer may treat the full value of
40-42 the leased property as qualified investment property in
-40- (Index)
LC 18 6430
41- 1 the taxable year in which the lease becomes binding on
41- 2 the lessor and the taxpayer if all other conditions of
41- 3 this subsection have been met; and
41- 4 (5) The utilization of the credit granted in subsection
41- 5 (b) of this Code section shall have no effect on the
41- 6 taxpayer's ability to claim depreciation for tax
41- 7 purposes on the assets acquired by the corporation nor
41- 8 shall the credit have any effect on the taxpayer's basis
41- 9 in such assets for the purpose of depreciation.
41-10 (d) No taxpayer shall be authorized to claim on a tax
41-11 return for a tax year the credit provided for in this Code
41-12 section if such taxpayer claims on such tax return any of
41-13 the credits authorized under Code Section 48-7-15 or
41-14 48-7-16.
41-15 48-7-20. (Index)
41-16 (a) As used in this Code section, the term:
41-17 (1) 'Approved retraining' means employer provided or
41-18 employer sponsored retraining that meets the following
41-19 conditions:
41-20 (A) It enhances the functional skills of employees
41-21 otherwise unable to function effectively on the job
41-22 due to skill deficiencies or who would otherwise be
41-23 displaced because such skill deficiencies would
41-24 inhibit their utilization of new technology;
41-25 (B) It is approved and certified by the Department of
41-26 Technical and Adult Education; and
41-27 (C) The employer does not require the employee to make
41-28 any payment for the retraining, either directly or
41-29 indirectly through use of forfeiture of leave time,
41-30 vacation time, or other compensable time.
41-31 (2) 'Cost of retraining' means direct instructional
41-32 costs as defined by the Department of Technical and
41-33 Adult Education including instructor salaries,
41-34 materials, supplies, and textbooks but specifically
41-35 excluding costs associated with renting or otherwise
41-36 securing space.
41-37 (3) 'Employee' means any employee resident in this state
41-38 who is employed for at least 25 hours a week, who has
41-39 been continuously employed by the employer for at least
41-40 16 consecutive weeks.
-41- (Index)
LC 18 6430
42- 1 (4) 'Employer' means any employer upon whom an income
42- 2 tax is imposed by this chapter.
42- 3 (5) 'Employer provided' refers to approved retraining
42- 4 offered on the premises of the employer or on premises
42- 5 approved by the Department of Technical and Adult
42- 6 Education by instructors hired by or employed by an
42- 7 employer.
42- 8 (6) 'Employer sponsored' refers to a contractual
42- 9 arrangement with a school, university, college, or other
42-10 instructional facility which offers approved retraining
42-11 that is paid for by the employer.
42-12 (b) A tax credit shall be granted to an employer who
42-13 provides or sponsors an approved retraining program. The
42-14 amount of the tax credit shall be equal to one-fourth of
42-15 the costs of retraining per full-time equivalent student,
42-16 or $500.00 per full-time equivalent student, whichever is
42-17 less, for each employee who has successfully completed an
42-18 approved retraining program. No employer may receive a
42-19 credit if the employer requires that the employee
42-20 reimburse or pay the employer for the cost of retraining.
42-21 (c) The tax credit granted to any employer pursuant to
42-22 this Code section shall not exceed 50 percent of the
42-23 amount of the taxpayer's income tax liability for the
42-24 taxable year as computed without regard to this Code
42-25 section.
42-26 (d) To be eligible to claim the credit granted under this
42-27 Code section, the employer must certify to the department
42-28 the name of the employee, the course work successfully
42-29 completed by such employee, the name of the provider of
42-30 the approved retraining, and such other information as may
42-31 be required by the department to ensure that credits are
42-32 only granted to employers who provide or sponsor approved
42-33 retraining pursuant to this Code section and that such
42-34 credits are only granted to employers with respect to
42-35 employees who successfully complete such approved
42-36 retraining. The department shall adopt rules and
42-37 regulations and forms to implement this credit program.
42-38 The department is expressly authorized and directed to
42-39 work with the Department of Technical and Adult Education
42-40 to ensure the proper granting of credits pursuant to this
42-41 Code section.
42-42 (e) The Department of Technical and Adult Education is
42-43 expressly authorized and directed to establish such
-42- (Index)
LC 18 6430
43- 1 standards as it deems necessary and convenient in
43- 2 approving employer provided and employer sponsored
43- 3 retraining programs. In establishing such standards, the
43- 4 Department of Technical and Adult Education shall
43- 5 establish required hours of classroom instruction,
43- 6 required courses, certification of teachers or
43- 7 instructors, progressive levels of instruction, and
43- 8 standardized measures of employee evaluation to determine
43- 9 successful completion of a course of study.
43-10 48-7-21. (Index)
43-11 (a) As used in this Code section, the term:
43-12 (1) 'Cost of operation' means reasonable direct
43-13 operational costs incurred by an employer as a result of
43-14 providing employer provided or employer sponsored child
43-15 care facilities.
43-16 (2) 'Employer' means any employer upon whom an income
43-17 tax is imposed by this chapter.
43-18 (3) 'Employer provided' refers to child care offered on
43-19 the premises of the employer, provided that the facility
43-20 is in Georgia.
43-21 (4) 'Employer sponsored' refers to a contractual
43-22 arrangement with a child care facility that is paid for
43-23 by the employer.
43-24 (b) A tax credit shall be granted to an employer who
43-25 provides or sponsors child care for employees. The amount
43-26 of the tax credit shall be equal to one-half of the cost
43-27 of operation to the employer less any amounts paid for by
43-28 employees during a taxable year.
43-29 (c) The tax credit granted to any employer pursuant to
43-30 this Code section shall not exceed 50 percent of the
43-31 amount of the taxpayer's income tax liability for the
43-32 taxable year as computed without regard to this Code
43-33 section. Any credit claimed under this Code section but
43-34 not used in any taxable year may be carried forward for
43-35 five years from the close of the taxable year in which the
43-36 cost of operation was incurred.
43-37 (d) To be eligible to claim the credit granted under this
43-38 Code section, the employer must certify to the department
43-39 the names of the employees, the name of the child care
43-40 provider, and such other information as may be required by
43-41 the department to ensure that credits are only granted to
-43- (Index)
LC 18 6430
44- 1 employers who provide or sponsor approved child care
44- 2 pursuant to this Code section. The department shall adopt
44- 3 rules and regulations and forms to implement this credit
44- 4 program.
44- 5 48-7-22. (Index)
44- 6 (a) As used in this Code section, the term:
44- 7 (1) 'Approved basic skills education' means employer
44- 8 provided or employer sponsored education that meets the
44- 9 following conditions:
44-10 (A) It enhances reading, writing, or mathematical
44-11 skills up to and including the twelfth-grade level for
44-12 employees who are otherwise unable to function
44-13 effectively on the job due to deficiencies in those
44-14 areas or who would otherwise be displaced because such
44-15 skill deficiencies would inhibit their training for
44-16 new technology;
44-17 (B) It is approved and certified by the Department of
44-18 Technical and Adult Education; and
44-19 (C) The employer does not require the employee to make
44-20 any payment for the education, either directly or
44-21 indirectly through use of forfeiture of leave time,
44-22 vacation time, or other compensable time.
44-23 (2) 'Cost of education' means direct instructional costs
44-24 as defined by the Department of Technical and Adult
44-25 Education including instructor salaries, materials,
44-26 supplies, and textbooks but specifically excluding costs
44-27 associated with renting or otherwise securing space.
44-28 (3) 'Employee' means any employee resident in this state
44-29 who is employed for at least 24 hours a week and who has
44-30 been continuously employed by the employer for at least
44-31 16 consecutive weeks.
44-32 (4) 'Employer' means any employer upon whom an income
44-33 tax is imposed by this chapter.
44-34 (5) 'Employer provided' refers to approved basic skills
44-35 education offered on the premises of the employer or on
44-36 premises approved by the Department of Technical and
44-37 Adult Education by instructors hired by or employed by
44-38 an employer.
44-39 (6) 'Employer sponsored' refers to a contractual
44-40 arrangement with a school, university, college, or other
-44- (Index)
LC 18 6430
45- 1 instructional facility which offers approved basic
45- 2 skills education that is paid for by the employer.
45- 3 (b) A tax credit shall be granted to an employer who
45- 4 provides or sponsors an approved basic skills education
45- 5 program. The amount of the tax credit shall be equal to
45- 6 one-third of the costs of education per full-time
45- 7 equivalent student, or $150.00 per full-time equivalent
45- 8 student, whichever is less, for each employee who has
45- 9 successfully completed an approved basic skills education
45-10 program. No employer may receive a credit if the employer
45-11 requires that the employee reimburse or pay the employer
45-12 for the cost of education.
45-13 (c) The tax credit granted to any employer pursuant to
45-14 this Code section shall not exceed the amount of the
45-15 taxpayer's income tax liability for the taxable year as
45-16 computed without regard to this Code section.
45-17 (d) To be eligible to claim the credit granted under this
45-18 Code section, the employer must certify to the department
45-19 the name of the employee, the course work successfully
45-20 completed by such employee, the name of the approved basic
45-21 skills education provider, and such other information as
45-22 may be required by the department to ensure that credits
45-23 are only granted to employers who provide or sponsor
45-24 approved basic skills education pursuant to this Code
45-25 section and that such credits are only granted to
45-26 employers with respect to employees who successfully
45-27 complete such approved basic skills education. The
45-28 department shall adopt rules and regulations and forms to
45-29 implement this credit program. The department is expressly
45-30 authorized and directed to work with the Department of
45-31 Technical and Adult Education to ensure the proper
45-32 granting of credits pursuant to this Code section.
45-33 (e) The Department of Technical and Adult Education is
45-34 expressly authorized and directed to establish such
45-35 standards as it deems necessary and convenient in
45-36 approving employer provided and employer sponsored basic
45-37 skills education programs. In establishing such
45-38 standards, the Department of Technical and Adult Education
45-39 shall establish required hours of classroom instruction,
45-40 required courses, certification of teachers or
45-41 instructors, and progressive levels of instruction and
45-42 standardized measures of employee evaluation to determine
45-43 successful completion of a course of study.
-45- (Index)
LC 18 6430
46- 1 48-7-23. (Index)
46- 2 Every corporation subject to taxation under this chapter
46- 3 shall make a return stating specifically the items of its
46- 4 gross income and the deductions and credits allowed by
46- 5 this chapter. The income of two or more corporations shall
46- 6 not be included in a single return except with the express
46- 7 consent of the commissioner. When a receiver, trustee in
46- 8 bankruptcy, or assignee is operating the property or
46- 9 business of a corporation, the receiver, trustee, or
46-10 assignee shall make returns for the corporation in the
46-11 same manner and form as the corporation is required to
46-12 make returns. Any tax due on the basis of returns made by
46-13 a receiver, trustee, or assignee shall be collected in the
46-14 same manner as if collected from the corporation of whose
46-15 business or property he has custody and control.
46-16 48-7-24. (Index)
46-17 (a) Returns of corporations made on the basis of a
46-18 calendar year shall be filed on or before the fifteenth
46-19 day of March following the close of the calendar year, and
46-20 returns of corporations made on the basis of a fiscal year
46-21 shall be filed on or before the fifteenth day of the third
46-22 month following the close of the fiscal year. Returns
46-23 required for a taxable year relating to returns of DISC's
46-24 and former DISC's and FSC's shall be filed on or before
46-25 the fifteenth day of the ninth month following the close
46-26 of the taxable year. The commissioner may allow further
46-27 time for filing returns whenever in his judgment good
46-28 cause exists for the extension. In case a taxpayer is
46-29 granted an extension of time to file a return, the
46-30 commissioner may require a tentative return to be filed on
46-31 or before the due date of the return for which the
46-32 extension is granted. A tentative return shall be made on
46-33 the usual form, shall be plainly marked 'tentative,' shall
46-34 state the estimated amount of the tax believed to be due,
46-35 and shall be properly signed by the taxpayer.
46-36 (b) Any taxpayer may file an estimated income tax return
46-37 within the taxpayer's taxable year in compliance with
46-38 rules and regulations promulgated by the commissioner.
46-39 Estimated returns shall be plainly marked 'estimated.'
46-40 (c) In case of failure to file an income tax return on the
46-41 date prescribed for the filing, such date to be determined
46-42 with regard to any extension of time for filing, there
46-43 shall be added to the amount of tax required to be shown
-46- (Index)
LC 18 6430
47- 1 on the return 5 percent of the amount of the tax if the
47- 2 failure is for not more than one month with an additional
47- 3 5 percent for each additional month or fraction of a month
47- 4 during which the failure to file continues. No penalty
47- 5 shall be assessed pursuant to this Code section which
47- 6 exceeds in the aggregate 25 percent of the amount of the
47- 7 tax. No penalty shall be assessed pursuant to this Code
47- 8 section when it is shown that the failure is due to
47- 9 reasonable cause and not due to willful neglect.
47-10 (d) For the purposes of this Code section, the amount of
47-11 tax required to be shown on the return shall be reduced by
47-12 the amount of any part of the tax which is paid on or
47-13 before the date prescribed for payment of the tax and by
47-14 the amount of any credit against the tax which may be
47-15 claimed on the return.
47-16 (e) With respect to any return, the amount of the addition
47-17 under subsection (a) of this Code section shall be reduced
47-18 by the amount of the addition under paragraph (1) of
47-19 subsection (a) of Code Section 48-7-36 for any month to
47-20 which an addition to tax applies under both subsection (a)
47-21 of this Code section and paragraph (1) of subsection (a)
47-22 of Code Section 48-7-36.
47-23 (f) No penalty due to late filing shall be incurred by a
47-24 taxpayer if the taxpayer attaches to his return a copy of
47-25 an approved extension of time within which to file his
47-26 federal income tax return which has been granted by the
47-27 Internal Revenue Service and also files his state return
47-28 within the period of time specified in the extension. In
47-29 such instances, the taxpayer need not apply to the
47-30 commissioner for an extension of time within which to file
47-31 his state return.
47-32 48-7-25. (Index)
47-33 (a) The following organizations shall be exempt from
47-34 taxation imposed by Code Section 48-7-7 unless the
47-35 exemption is denied under subsection (b) or (c) of this
47-36 Code section:
47-37 (1) Those organizations described by Section 501(c),
47-38 501(d), 501(e), 664, or 401 of the Internal Revenue Code
47-39 of 1986. Organizations described in this paragraph shall
47-40 be exempt from taxation for state purposes in the same
47-41 manner and to the same extent as for federal purposes;
47-42 and
-47- (Index)
LC 18 6430
48- 1 (2) Insurance companies which pay to the state a tax
48- 2 upon premium income.
48- 3 (b)(1) An organization requesting exemption under
48- 4 paragraph (1) of subsection (a) of this Code section
48- 5 shall file a written application with the commissioner.
48- 6 The commissioner shall issue a determination letter or
48- 7 ruling to an organization requesting the exemption and
48- 8 shall either grant or disallow the requested exempt
48- 9 status. Until a determination letter granting exempt
48-10 status is issued by the commissioner, no exempt status
48-11 shall exist. Those organizations which have an exempt
48-12 status in effect under Section 501(c), 501(d), 501(e),
48-13 664, or 401 of the Internal Revenue Code of 1986 on
48-14 January 1, 1987, shall retain the exempt status unless
48-15 revoked as provided by law. The commissioner may issue
48-16 rules governing the filing of written applications and
48-17 the issuance of determination letters.
48-18 (2)(A) The commissioner may revoke the exempt status
48-19 of any organization described in paragraph (1) of
48-20 subsection (a) of this Code section when:
48-21 (i) The Internal Revenue Service revokes the exempt
48-22 status of the organization;
48-23 (ii) The organization ceases to be organized or
48-24 operated in the manner in which it was organized or
48-25 operated at the time the exempt status was granted;
48-26 (iii) The organization engages in any prohibited
48-27 transaction as set forth in the Internal Revenue
48-28 Code of 1986; or
48-29 (iv) There is any material change in the character
48-30 or purpose of the organization or in the mode of
48-31 operation of the organization.
48-32 (B) Revocation of an exempt status shall revoke the
48-33 exempt status retroactively to the time of the
48-34 occurrence of the disqualifying event or events. All
48-35 exempt organizations shall immediately notify the
48-36 commissioner in writing of the occurrence of any of
48-37 the disqualifying events described in subparagraph (A)
48-38 of this paragraph or of receipt by the organization of
48-39 a notice of intent to terminate its exempt status by
48-40 the Internal Revenue Service. The statute of
48-41 limitations governing the assessment of any taxes
48-42 determined to be due this state due to the revocation
-48- (Index)
LC 18 6430
49- 1 of exempt status shall be tolled as of the date of the
49- 2 occurrence of the disqualifying event or events
49- 3 described in subparagraph (A) of this paragraph. The
49- 4 commissioner at any time may require an organization
49- 5 which is exempt from taxation to file an information
49- 6 return stating the organization's gross income,
49- 7 receipts, disbursements, accumulation of income, and
49- 8 other data deemed necessary for the proper
49- 9 administration of this Code section.
49-10 (c)(1) A tax is imposed on income of an organization
49-11 exempted pursuant to paragraph (1) of subsection (a) of
49-12 this Code section when the income is derived from trade
49-13 or business which is not related to exempt purposes of
49-14 organizations described in paragraph (1) of subsection
49-15 (a) of this Code section. This income shall be referred
49-16 to as unrelated business income and shall be the income
49-17 which is defined in Section 512 of the Internal Revenue
49-18 Code of 1986. The tax imposed on unrelated business
49-19 income shall be at the rate provided in Code Section
49-20 48-7-7.
49-21 (2) If an organization is exempt under Section 501(c)(4)
49-22 of the United States Internal Revenue Code of 1986, if
49-23 the organization makes payments of death benefits as a
49-24 result of the death of a member of the organization, and
49-25 if payments have been made by the organization for at
49-26 least five years prior to January 1, 1977, the payments
49-27 shall be deductible from the unrelated business income
49-28 tax which might be owed by the organization. The payment
49-29 of such death benefits shall not operate to generate a
49-30 rebate or a refund. If the amount of death benefits paid
49-31 within the taxable year exceeds the unrelated business
49-32 income tax owed for the same taxable year, the excess
49-33 may be carried forward for a period of five years.
49-34 48-7-26. (Index)
49-35 (a) When the commissioner has reason to believe that any
49-36 taxpayer conducts his trade or business so as to distort
49-37 directly or indirectly his true net income or the net
49-38 income properly attributable to this state, whether by the
49-39 arbitrary shifting of income, through price fixing,
49-40 charges for service, or otherwise, as a result of which
49-41 the net income is arbitrarily assigned to one or another
49-42 unit in a group of taxpayers conducting business under a
49-43 substantially common control, the commissioner may require
49-44 the facts as he deems necessary for the proper computation
-49- (Index)
LC 18 6430
50- 1 of the entire net income and the net income properly
50- 2 attributable to this state. In determining the
50- 3 computation, the commissioner shall consider the fair
50- 4 profit which would normally arise from the conduct of the
50- 5 trade or business.
50- 6 (b)(1) The commissioner may determine the amount of
50- 7 taxable income of any one or more corporations for a
50- 8 calendar or fiscal year when a corporation:
50- 9 (A) Subject to taxation under this chapter conducts
50-10 its business in such manner as to benefit either
50-11 directly or indirectly the members or stockholders of
50-12 the corporation or any person interested in the
50-13 business of the corporation by selling its products or
50-14 the goods or commodities in which it deals at less
50-15 than the fair price which might be obtained for the
50-16 goods or commodities;
50-17 (B) A substantial portion of whose capital stock is
50-18 directly or indirectly owned by another corporation
50-19 acquires and disposes of the products of the
50-20 corporation so owning a substantial portion of its
50-21 stock in such a manner as to create a loss or improper
50-22 net income for either of the corporations; or
50-23 (C) Directly or indirectly owning a substantial
50-24 portion of the stock of another corporation acquires
50-25 and disposes of the products of the corporation of
50-26 which it so owns a substantial portion of the stock in
50-27 such a manner as to create a loss or improper net
50-28 income for either of the corporations.
50-29 (2) In his determination, the commissioner shall
50-30 consider the reasonable profits which, but for the
50-31 arrangement or understanding, might or could have been
50-32 obtained by the corporation or corporations subject to
50-33 taxation under this chapter from dealing in such
50-34 products, goods, or commodities.
50-35 48-7-27. (Index)
50-36 Whenever in the opinion of the commissioner it is
50-37 necessary to examine any copy of the federal income tax
50-38 returns of any taxpayer in order to audit properly the
50-39 state returns of the taxpayer, the commissioner shall have
50-40 the right to examine the federal returns and all
50-41 statements, inventories, and schedules in support of the
50-42 returns.
-50- (Index)
LC 18 6430
51- 1 48-7-28. (Index)
51- 2 (a) Except in accordance with proper judicial order or as
51- 3 otherwise provided by law, it is unlawful for the
51- 4 commissioner, other officer, employee, or agent, or any
51- 5 former officer, employee, or agent to divulge or make
51- 6 known in any manner the amount of income or any
51- 7 particulars set forth or disclosed in any report or return
51- 8 required under the law of this state or any return or
51- 9 return information required by the Internal Revenue Code
51-10 when the information or return is received from the
51-11 Internal Revenue Service or submitted by the taxpayer as
51-12 provided by the laws of this state. Nothing contained in
51-13 this Code section shall be construed to prohibit the
51-14 publication of statistics so presented as to prevent the
51-15 identification of particular reports or returns and the
51-16 items thereof, or the inspection by the Attorney General
51-17 or other legal representative of the state, or use as
51-18 evidence, of the report or return of a taxpayer in the
51-19 event of any action or proceeding involving any tax
51-20 liability of the taxpayer. Reports and returns shall be
51-21 preserved for three years and thereafter until the
51-22 commissioner orders them to be destroyed.
51-23 (b) The commissioner may permit the commissioner of
51-24 internal revenue of the United States, the proper officer
51-25 of any state imposing an income tax similar to that
51-26 imposed by this chapter, or the authorized representative
51-27 of either such officer to inspect the income tax returns
51-28 of any taxpayer, or may furnish to the officer or his
51-29 authorized representative an abstract of the return of
51-30 income of any taxpayer or supply him with information
51-31 concerning any item of income contained in any return or
51-32 disclosed by the report of any investigation of the income
51-33 or return of income of any taxpayer. The permission shall
51-34 be granted or the information shall be furnished to the
51-35 officer or his representative only if:
51-36 (1) The request is only for state tax information
51-37 including federal tax information required by the state
51-38 to be filed by the taxpayer with his state return;
51-39 (2) The requested information will be used solely for
51-40 tax purposes;
51-41 (3) The requesting state has a confidentiality statute
51-42 which complies with the requirements of Section
51-43 6103(p)(8) of the Internal Revenue Code; and
-51- (Index)
LC 18 6430
52- 1 (4) The statutes of the United States or of such other
52- 2 state, as the case may be, grant substantially similar
52- 3 privileges to the proper officer of this state charged
52- 4 with the administration of this chapter.
52- 5 (c) The commissioner may permit the disclosure of
52- 6 inventories, depreciable assets, accumulated depreciation,
52- 7 and book value of depreciable assets to local tax
52- 8 authorities in this state to be used solely for ad valorem
52- 9 tax purposes, provided that the furnishing of the
52-10 information is not prohibited by Section 6103 of the
52-11 Internal Revenue Code; and provided, further, that the
52-12 furnishing of the information to the local tax authorities
52-13 shall not be deemed to change the confidential character
52-14 of the information, and any persons receiving the
52-15 information pursuant to this subsection shall be subject
52-16 to Code Section 48-7-29, relating to the sanctions to be
52-17 imposed for the unauthorized disclosure of confidential
52-18 material.
52-19 (d) This Code section shall not be construed to prohibit
52-20 persons or groups of persons other than employees of the
52-21 department from having access to tax information where
52-22 necessary for data processing operations and maintenance
52-23 of data processing equipment, provided the persons or
52-24 groups of persons have obtained prior approval from the
52-25 commissioner and are subject to the direct security
52-26 control of department personnel during all periods of
52-27 access. Any person who divulges or makes known any tax
52-28 information obtained under this subsection shall be
52-29 subject to the same civil and criminal penalties as those
52-30 provided for divulgence of information by employees of the
52-31 department.
52-32 (e) Notwithstanding any other law, this Code section shall
52-33 remain in full force and effect unless specific reference
52-34 is made in such other law to this Code section and to the
52-35 disclosure of income tax information contained in any
52-36 report or return required under this Code section.
52-37 48-7-29. (Index)
52-38 (a) It shall be unlawful for any person to violate any
52-39 provision of Code Section 48-7-28 when the violation
52-40 involves the divulging of information concerning income
52-41 taxes.
52-42 (b) Any person who violates subsection (a) of this Code
52-43 section shall be guilty of a misdemeanor.
-52- (Index)
LC 18 6430
53- 1 (c) In addition to the penalty provided in subsection (b)
53- 2 of this Code section, if the offender is an officer or
53- 3 employee of the state, he shall be dismissed from office
53- 4 and shall be incapable of holding any public office in
53- 5 this state for a period of five years after his dismissal.
53- 6 48-7-30. (Index)
53- 7 The total amount of tax imposed by this chapter on
53- 8 corporations shall be paid to the commissioner on or
53- 9 before March 15, following the close of the calendar year.
53-10 If the return of a corporation is made on the basis of a
53-11 fiscal year, the tax shall be paid to the commissioner on
53-12 or before the fifteenth day of the third month following
53-13 the close of the fiscal year.
53-14 48-7-31. (Index)
53-15 (a) If any amount of tax imposed by this chapter is not
53-16 paid on or before the last date prescribed for payment,
53-17 interest on the payment at the rate specified in Code
53-18 Section 48-2-40 shall be paid for the period from the last
53-19 date prescribed for payment to the date paid.
53-20 (b) The last date prescribed for payment of the tax shall
53-21 be determined without regard to any:
53-22 (1) Extension of time for payment; or
53-23 (2) Notice and demand for payment issued by reason of
53-24 jeopardy prior to the last date otherwise prescribed for
53-25 the payment.
53-26 (c) If the amount of any tax imposed by this chapter is
53-27 reduced by reason of a carry back of a net operating loss,
53-28 the reduction in tax shall not affect the computation of
53-29 interest under this Code section for the period ending
53-30 with the last day of the taxable year in which the net
53-31 operating loss arises.
53-32 (d) Except as otherwise specifically provided by law:
53-33 (1) Interest prescribed under this Code section shall be
53-34 paid upon notice and demand and shall be assessed,
53-35 collected, and paid in the same manner as the tax. Any
53-36 reference to the tax imposed by this chapter shall be
53-37 deemed also to refer to interest imposed by this Code
53-38 section on the tax;
53-39 (2) No interest under this Code section shall be imposed
53-40 on the interest provided by this Code section;
-53- (Index)
LC 18 6430
54- 1 (3) Interest shall be imposed under subsection (a) of
54- 2 this Code section on any assessable penalty, additional
54- 3 amount, or addition to the tax only if the assessable
54- 4 penalty, additional amount, or addition to the tax is
54- 5 not paid within ten days from the date of notice and
54- 6 demand for the payment. Interest shall be imposed only
54- 7 for the period from the date of the notice and demand to
54- 8 the date of payment;
54- 9 (4) If notice and demand are made for the payment of any
54-10 amount and if the amount is paid within ten days after
54-11 the date of the notice and demand, interest under this
54-12 Code section on the amount so paid shall not be imposed
54-13 for the period after the date of the notice and demand.
54-14 (e) Interest prescribed under this Code section may be
54-15 assessed and collected at any time during the period
54-16 within which the tax to which the interest relates may be
54-17 collected.
54-18 48-7-32. (Index)
54-19 (a) Except as otherwise provided in this Code section, the
54-20 amount of income tax imposed by this chapter shall be
54-21 assessed within the time periods specified in Code Section
54-22 48-2-49.
54-23 (b)(1) In the case of income received by a corporation,
54-24 the tax shall be assessed within three years after the
54-25 return is filed, and any proceeding in court without
54-26 assessment for the collection of the tax shall begin
54-27 within 18 months after written request for the
54-28 commencement of the proceeding (filed after the return
54-29 is made) by the corporation. No such proceeding shall
54-30 begin after the expiration of three years from the date
54-31 the return is filed. This paragraph shall not apply in
54-32 the case of a corporation unless:
54-33 (A) The written request notifies the commissioner that
54-34 the corporation contemplates dissolution at or before
54-35 the expiration of the 18 month period;
54-36 (B) The dissolution is begun in good faith before the
54-37 expiration of the 18 month period; and
54-38 (C) The dissolution is completed.
54-39 (2) If the taxpayer omits from gross income an amount
54-40 properly includable in gross income which exceeds 25
54-41 percent of the amount of gross income less business
-54- (Index)
LC 18 6430
55- 1 expenses stated in the return, the tax may be assessed
55- 2 or a proceeding in court for the collection of the tax
55- 3 may begin without assessment at any time within six
55- 4 years after the return is filed.
55- 5 (3) If the taxpayer omits from gross income an amount
55- 6 properly includable in gross income as an amount
55- 7 distributed in liquidation of a corporation, the tax may
55- 8 be assessed or a proceeding in court for the collection
55- 9 of the tax may begin without assessment at any time
55-10 within five years after the return is filed.
55-11 (c) When the assessment of any income tax has been made
55-12 within the period of limitation properly applicable to the
55-13 assessment, the tax may be collected by execution. The
55-14 general provisions for tax executions as contained in
55-15 Chapter 3 of this title shall apply to executions pursuant
55-16 to this subsection.
55-17 (d)(1) When a taxpayer's amount of net income for any
55-18 year under this chapter as returned to the United States
55-19 Department of the Treasury is changed or corrected by
55-20 the commissioner of internal revenue or other officer of
55-21 the United States of competent authority, the taxpayer,
55-22 within 180 days after final determination of the changed
55-23 or corrected net income, shall make a return to the
55-24 commissioner of the changed or corrected income, and the
55-25 commissioner shall make assessment or the taxpayer shall
55-26 claim a refund based on the change or correction within
55-27 one year from the date the return required by this
55-28 paragraph is filed. If the taxpayer does not make the
55-29 return reflecting the changed or corrected net income
55-30 and the commissioner receives from the United States
55-31 government or one of its agents a report reflecting the
55-32 changed or corrected net income, the commissioner shall
55-33 make assessment for taxes due based on the change or
55-34 correction within five years from the date the report
55-35 from the United States government or its agent is
55-36 actually received.
55-37 (2) In the event the taxpayer fails to notify the
55-38 commissioner of the final determination of his United
55-39 States income taxes, the commissioner shall proceed to
55-40 determine, upon evidence that the commissioner has
55-41 brought to his attention or that he otherwise acquires,
55-42 the corrected income of the taxpayer for the fiscal or
55-43 calendar year. If additional tax is determined to be
55-44 due, the tax shall be assessed and collected. If it is
-55- (Index)
LC 18 6430
56- 1 determined that there has been an overpayment of tax for
56- 2 the year, the taxpayer, by his failure to notify the
56- 3 commissioner as required in paragraph (1) of this
56- 4 subsection, shall forfeit his right to any refund due by
56- 5 reason of the change or correction. A taxpayer who so
56- 6 fails to notify the commissioner, however, shall be
56- 7 entitled to equitable recoupment of 90 percent of any
56- 8 overpayment so determined against any additional tax
56- 9 liability so determined, the remaining 10 percent of the
56-10 overpayment being totally forfeited as a penalty for
56-11 failure to make a return as required by paragraph (1) of
56-12 this subsection.
56-13 48-7-33. (Index)
56-14 Whenever any corporation has been dissolved or the assets
56-15 of the corporation for any reason have passed entirely
56-16 from the control of the corporation into the possession of
56-17 its former stockholders or other persons without the
56-18 payment of income taxes due the state, the commissioner
56-19 shall have the right to bring action against any or all
56-20 persons possessing the assets for the collection of any
56-21 income taxes that may be due the state up to the value of
56-22 the assets. If the assets have come into the possession of
56-23 more than one person, each person shall have the right to
56-24 prorate the amount of the tax according to the value of
56-25 the assets coming into each person's possession.
56-26 48-7-34. (Index)
56-27 No action for the purpose of restraining the assessment or
56-28 collection of any tax under this chapter shall be
56-29 maintained in any court.
56-30 48-7-35. (Index)
56-31 Whenever the commissioner in his discretion determines
56-32 that a person is not liable for the tax for an entire year
56-33 because of moving into the state or moving out of the
56-34 state, he may prorate the amount of the tax due the state
56-35 and also may require the taxpayer to prorate any
56-36 exemptions on the basis of the time spent within the
56-37 state. The commissioner in his reasonable discretion shall
56-38 be the sole judge as to when this Code section shall
56-39 apply.
56-40 48-7-36. (Index)
56-41 (a)(1) In case of failure to pay:
-56- (Index)
LC 18 6430
57- 1 (A) The amount shown as tax on a return on or before
57- 2 the date prescribed for payment of the tax, such date
57- 3 to be determined with regard to any extension of time
57- 4 for payment, there shall be added to the amount of tax
57- 5 required to be shown on the return one-half of 1
57- 6 percent of the amount of the tax if the failure is for
57- 7 not more than one month and with an additional
57- 8 one-half of 1 percent for each additional month or
57- 9 fraction of a month during which the failure
57-10 continues. For the purposes of this subparagraph, the
57-11 amount of tax shown on the return shall be reduced,
57-12 for the purpose of computing the addition for any
57-13 month, by the amount of any part of the tax which is
57-14 paid on or before the beginning of the month and by
57-15 the amount of any credit against the tax which is
57-16 claimed on the return;
57-17 (B) Any amount in respect of any tax required to be
57-18 shown on a return which is not so shown within ten
57-19 days of the date of the notice and demand for the
57-20 payment, the amount of tax stated in the notice and
57-21 demand shall be increased by one-half of 1 percent of
57-22 the amount of the tax if the failure is for not more
57-23 than one month and by an additional one-half of 1
57-24 percent for each additional month or fraction of a
57-25 month during which the failure continues. For the
57-26 purposes of this subparagraph, the amount of tax
57-27 stated in the notice and demand shall be reduced, for
57-28 the purpose of computing the addition for any month,
57-29 by the amount of any part of the tax which is paid
57-30 before the beginning of the month.
57-31 (2) No penalty shall be assessed pursuant to this
57-32 subsection which exceeds in the aggregate 25 percent of
57-33 the amount of the tax or when it is shown that the
57-34 failure is due to reasonable cause and not due to
57-35 willful neglect.
57-36 (b) With respect to any return, the maximum amount of the
57-37 addition permitted under subparagraph (a)(1)(B) of this
57-38 Code section shall be reduced by the amount of the
57-39 addition under subsection (c) of Code Section 48-7-24
57-40 which is attributable to the tax for which the notice and
57-41 demand are made and which is not paid within ten days of
57-42 such notice and demand.
57-43 (c) If the amount required to be shown as tax on a return
57-44 is less than the amount shown as tax on the return,
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LC 18 6430
58- 1 subparagraph (a)(1)(A) of this Code section shall be
58- 2 applied by substituting the lower amount.
58- 3 (d) For purposes of subsections (e) and (f) of this Code
58- 4 section, the term 'underpayment' means a deficiency as
58- 5 defined in Code Section 48-7-2.
58- 6 (e) If any part of any underpayment of tax required to be
58- 7 shown on a return is due to a negligent or intentional
58- 8 disregard of rules and regulations, but without intent to
58- 9 defraud, an amount equal to 5 percent of the underpayment
58-10 shall be added to the tax.
58-11 (f) If any part of any underpayment of tax required to be
58-12 shown on a return is due to fraud, an amount equal to 50
58-13 percent of the underpayment shall be added to the tax.
58-14 This amount shall be in lieu of any amount determined
58-15 under subsection (e) of this Code section. If any penalty
58-16 is assessed under this subsection for an underpayment of
58-17 tax which is required to be shown on a return, no penalty
58-18 under Code Section 48-7-24 or subsection (a) of this Code
58-19 section shall be assessed with respect to the same
58-20 underpayment.
58-21 48-7-37. (Index)
58-22 (a) 'Estimated tax' defined. For purposes of this Code
58-23 section, the term 'estimated tax' means the amount which
58-24 the corporation estimates as the amount of income tax
58-25 imposed by Code Section 48-7-7 less the amount which the
58-26 corporation estimates as the sum of credits allowable by
58-27 law against the tax.
58-28 (b) In general. Every domestic and foreign corporation
58-29 subject to taxation under Code Section 48-7-7 shall pay
58-30 estimated tax for the taxable year if its net income for
58-31 the taxable year as defined in Code Section 48-7-9 can
58-32 reasonably be expected to exceed $25,000.00.
58-33 48-7-38. (Index)
58-34 If the requirements of Code Section 48-7-37 are first met
58-35 as shown in the left-hand column of the following table,
58-36 then the estimated tax shall be due as shown in the
58-37 remaining columns:
The following percentages of the
estimated tax shall be paid on
the fifteenth day of the:
fourth sixth ninth twelfth
-58- (Index)
LC 18 6430
month month month month
of the of the of the of the
taxable taxable taxable taxable
year year year year
59- 1 Before the first day of
59- 2 the fourth month of the
59- 3 taxable year 25 25 25 25
59- 4 After the last day of
59- 5 the third month and
59- 6 before the first day of
59- 7 the sixth month of the
59- 8 taxable year 33 1/3 33 1/3 33 1/3
59- 9 After the last day of
59-10 the fifth month and
59-11 before the first day of
59-12 the ninth month of the
59-13 taxable year 50 50
59-14 After the last day of
59-15 the eighth month and
59-16 before the first day of
59-17 the twelfth month of
59-18 the taxable year 100
59-19 48-7-39. (Index)
59-20 (a) The amount of estimated tax paid under this chapter
59-21 for any taxable year shall be allowed as a credit to the
59-22 taxpayer against the taxpayer's income tax liability under
59-23 Code Section 48-7-7 for the taxable year.
59-24 (b) To the extent that the estimated tax credit, together
59-25 with other credits allowed by law, is in excess of the
59-26 taxpayer's income tax liability for a taxable year as
59-27 shown on an income tax return filed by the taxpayer for
59-28 that year, the overpayment shall be considered as taxes
59-29 erroneously paid and shall be credited or refunded as
59-30 provided in this subsection. The overpayment shall be
59-31 credited to the taxpayer's estimated income tax liability
59-32 for the succeeding taxable year unless the taxpayer claims
59-33 a refund for the overpayment. The commissioner may
59-34 consider any final return showing an overpayment as a
59-35 claim for refund per se. An overpayment shall bear no
59-36 interest if credit is given for the overpayment. Amounts
59-37 refunded as overpayments shall bear interest at the rate
59-38 of 9 percent per annum but only after 90 days from the
-59- (Index)
LC 18 6430
60- 1 filing date of the final return showing the overpayment or
60- 2 90 days from the due date of the final return, whichever
60- 3 is later.
60- 4 48-7-40. (Index)
60- 5 The commissioner may disregard a fractional part of a
60- 6 dollar in the allowance of any amount as a credit or
60- 7 refund or in the assessment or collection of any amount as
60- 8 a deficiency or underpayment.
60- 9 48-7-41. (Index)
60-10 In the administration and enforcement of this chapter with
60-11 respect to a taxpayer whose income may be subject to the
60-12 current income tax payment laws of two or more tax
60-13 jurisdictions, including this state, the commissioner may
60-14 make reciprocal arrangements with the tax authorities of
60-15 the other jurisdictions for the relief of the taxpayer
60-16 from the multiple burden imposed by the operation of
60-17 several current income tax payment laws."
PART III
SECTION 4.
60-18 Code Section 2-7-154 of the Official Code of Georgia
60-19 Annotated, relating to the powers of the Commissioner of
60-20 Agriculture with respect to boll weevil eradication, is
60-21 amended by striking in its entirety subparagraph (A) of
60-22 paragraph (8) and inserting in lieu thereof a new
60-23 subparagraph (A) to read as follows:
60-24 "(A) The Commissioner shall adopt rules and
60-25 regulations defining the criteria to be used in
60-26 determining financial hardship; provided, however,
60-27 that no exemption shall be granted to any cotton
60-28 grower who, after the amount of assessments and
60-29 penalties otherwise due has been subtracted from his
60-30 or her federal taxable net income, as defined in Code
60-31 Section 48-7-27 the United States Internal Revenue
60-32 Code of 1986, has a net income exceeding $15,000.00
60-33 for the year in which he seeks an exemption;".
SECTION 5.
60-34 Chapter 3 of Title 12 of the Official Code of Georgia
60-35 Annotated, relating to parks, historic areas, memorials, and
60-36 recreation, is amended by striking in its entirety Article
60-37 8, relating to nongame wildlife conservation and wildlife
-60- (Index)
LC 18 6430
61- 1 habitat acquisition programs, and inserting in lieu thereof
61- 2 the following:
"ARTICLE 8
61- 3 12-3-600 through 12-3-602. (Index)
61- 4 Reserved."
SECTION 6.
61- 5 Part 2 of Article 2 of Chapter 12 of Title 16 of the
61- 6 Official Code of Georgia Annotated, relating to bingo, is
61- 7 amended by striking in its entirety Code Section 16-12-55,
61- 8 relating to certification of tax exempt status of an
61- 9 organization, and inserting in lieu thereof a new Code
61-10 Section 16-12-55 to read as follows:
61-11 "16-12-55. (Index)
61-12 The director shall upon the request of any prosecuting
61-13 attorney or his designee certify the status of any
61-14 organization as to that organization's exemption from
61-15 payment of state income taxes as a nonprofit organization.
61-16 The director shall also upon request issue a certificate
61-17 indicating whether any particular organization holds a
61-18 currently valid license to operate a bingo game. Such
61-19 certificates properly executed shall be admissible in
61-20 evidence in any prosecution and Code Section 48-7-60
61-21 48-7-28, relative to the disclosure of income tax
61-22 information, shall not apply to the furnishing of such
61-23 certificate."
SECTION 7.
61-24 Chapter 15 of Title 17 of the Official Code of Georgia
61-25 Annotated, relating to victim compensation, is amended by
61-26 striking in its entirety Code Section 17-15-8, relating to
61-27 required findings and amount of award, and inserting in lieu
61-28 thereof a new Code Section 17-15-8 to read as follows:
61-29 "17-15-8. (Index)
61-30 (a) No award may be made unless the board or director
61-31 finds that:
61-32 (1) A crime was committed;
61-33 (2) The crime directly resulted in physical injury,
61-34 financial hardship, or death of the victim;
61-35 (3) Police records show that the crime was promptly
61-36 reported to the proper authorities. In no case may an
-61- (Index)
LC 18 6430
62- 1 award be made where the police records show that such
62- 2 report was made more than 72 hours after the occurrence
62- 3 of such crime unless the board, for good cause shown,
62- 4 finds the delay to have been justified; and
62- 5 (4) The applicant has pursued restitution rights against
62- 6 any person who committed the crime unless the board or
62- 7 director determines that such action would not be
62- 8 feasible.
62- 9 The board, upon finding that any claimant or award
62-10 recipient has not fully cooperated with all law
62-11 enforcement agencies, may deny, reduce, or withdraw any
62-12 award.
62-13 (b) Any award made pursuant to this chapter may be in an
62-14 amount not exceeding actual expenses, including
62-15 indebtedness reasonably incurred for medical expenses,
62-16 loss of wages, funeral expenses, mental health counseling,
62-17 or support for dependents of a deceased victim necessary
62-18 as a direct result of the injury or hardship upon which
62-19 the claim is based.
62-20 (c)(1) Notwithstanding any other provisions of this
62-21 chapter, no award made under the provisions of this
62-22 chapter shall exceed $1,000.00 in the aggregate;
62-23 provided, however, with respect to any claim filed with
62-24 the board as a result of a crime occurring on or after
62-25 July 1, 1994, no award made under the provisions of this
62-26 chapter payable to a victim and to all other claimants
62-27 sustaining economic loss because of injury to or death
62-28 of such victim shall exceed $5,000.00 in the aggregate.
62-29 (2) No award under this chapter for the following losses
62-30 shall exceed the maximum amount authorized:
62-31 Category Maximum Award
62-32 Lost Wages $ 5,000.00
62-33 Funeral Expenses 3,000.00
62-34 Financial Hardship or Loss of Support 5,000.00
62-35 Medical 5,000.00
62-36 Counseling 2,500.00
62-37 (d) In determining the amount of an award, the director
62-38 and board shall determine whether because of his or her
62-39 conduct the victim of such crime contributed to the
62-40 infliction of his or her injury or financial hardship, and
62-41 the director and board may reduce the amount of the award
-62- (Index)
LC 18 6430
63- 1 or reject the claim altogether in accordance with such
63- 2 determination.
63- 3 (e) The director and board may reject an application for
63- 4 an award when the claimant has failed to cooperate in the
63- 5 verification of the information contained in the
63- 6 application.
63- 7 (f) Any award made pursuant to this chapter may be reduced
63- 8 by or set off by the amount of any payments received or to
63- 9 be received as a result of the injury:
63-10 (1) From or on behalf of the person who committed the
63-11 crime;
63-12 (2) From any other private or public source, including
63-13 an award of workers' compensation pursuant to the laws
63-14 of this state,
63-15 provided that private sources shall not include
63-16 contributions received from family members or persons or
63-17 private organizations making charitable donations to a
63-18 victim.
63-19 (g) No award made pursuant to this chapter is subject to
63-20 garnishment, execution, or attachment other than for
63-21 expenses resulting from the injury which is the basis for
63-22 the claim. (h) An award made pursuant to this chapter shall not
63-24 constitute a payment which is treated as ordinary income
63-25 under either the provisions of Chapter 7 of Title 48 or,
63-26 to the extent lawful, under the United States Internal
63-27 Revenue Code.
63-28 (i)(h) Notwithstanding any other provisions of this
63-29 chapter to the contrary, no awards from state funds shall
63-30 be paid prior to July 1, 1989.
63-31 (j)(i) In any case where a crime results in death, the
63-32 spouse, children, parents, or siblings of such deceased
63-33 victim may be considered eligible for an award for the
63-34 cost of psychological counseling which is deemed necessary
63-35 as a direct result of said criminal incident. The maximum
63-36 award for said counseling expenses shall not exceed
63-37 $2,500.00 in the aggregate."
SECTION 8.
63-38 Code Section 19-11-9 of the Official Code of Georgia
63-39 Annotated, relating to the location of absent parents by the
-63- (Index)
LC 18 6430
64- 1 Department of Human Resources, is amended by striking
64- 2 subsection (c) in its entirety and inserting in lieu thereof
64- 3 a new subsection (c) to read as follows:
64- 4 "(c) In order to carry out the responsibilities imposed
64- 5 under this article, the department may request information
64- 6 and assistance from any governmental department, board,
64- 7 commission, bureau, or agency in locating the absent
64- 8 parents of children for whom the department has assignment
64- 9 of child support rights. The commissioner of human
64-10 resources or his duly authorized representative shall be
64-11 entitled to have access to all pertinent information which
64-12 is within the custody of any governmental department,
64-13 board, commission, bureau, or agency including, but not
64-14 limited to, income tax information contained in any report
64-15 or return required under Articles 1 through 6 of Chapter 7
64-16 of Title 48 by the Department of Revenue, including
64-17 information from federal income tax returns required to be
64-18 included as a part of any state report or return, which
64-19 information but for this Code section would not be subject
64-20 to disclosure pursuant to Code Section 48-7-60 and which
64-21 is relative to such parents' location, income, or
64-22 property, provided that any tax information secured from
64-23 the federal government by the Department of Revenue,
64-24 pursuant to the express provisions of Section 6103 of the
64-25 Internal Revenue Code, may not be disclosed by that
64-26 department pursuant to this subsection. Any person
64-27 receiving any tax information or tax returns under the
64-28 authority granted in this subsection shall be considered
64-29 either an officer or employee as those terms are used in
64-30 subsection (a) of Code Section 48-7-60; and, as such an
64-31 officer or employee, any person receiving any tax
64-32 information or returns under the authority of this Code
64-33 section shall be subject to Code Section 48-7-61, relating
64-34 to the sanctions to be imposed for the unauthorized
64-35 disclosure of confidential material."
SECTION 9.
64-36 Code Section 36-62-5.1 of the Official Code of Georgia
64-37 Annotated, relating to joint development authorities, is
64-38 amended by striking subsection (e) in its entirety and
64-39 inserting in lieu thereof a new subsection (e) to read as
64-40 follows:
64-41 "(e) A business located within the jurisdiction of a joint
64-42 authority established by two or more contiguous counties
64-43 will qualify for the greatest dollar amount of job tax
-64- (Index)
LC 18 6430
65- 1 credits of any of the participating counties, regardless
65- 2 of the county in which the business is physically located.
65- 3 An additional $500.00 tax credit for each new full-time
65- 4 employee position created is available for businesses
65- 5 engaged in manufacturing, warehousing, distributing,
65- 6 wholesaling, processing, research and development, or any
65- 7 other project pursuant to paragraph (6) of Code Section
65- 8 36-62-2 and located within the jurisdiction of the joint
65- 9 authority or for any business engaged in any such activity
65-10 or activities the corporate headquarters of which is
65-11 located within the jurisdiction of the joint authority.
65-12 The $500.00 job tax credit authorized by this subsection
65-13 shall be subject to all the conditions and limitations
65-14 specified under Code Section 48-7-40 48-7-15, as amended."
SECTION 10.
65-15 Chapter 9 of Title 37 of the Official Code of Georgia
65-16 Annotated, relating to payment of expenses for support,
65-17 treatment, and care of patients in state institutions
65-18 generally, is amended by striking in its entirety paragraph
65-19 (3) of Code Section 37-9-2, relating to definitions
65-20 applicable under said chapter, and inserting in lieu thereof
65-21 a new paragraph (3) to read as follows:
65-22 "(3) 'Income' 'Income,' except for patients who are
65-23 residents of other states, means that amount determined
65-24 by adding to the gross federal taxable income as now or
65-25 hereafter defined in the United States Internal Revenue
65-26 Code of 1986 Georgia income tax laws, minus deductions
65-27 and personal exemptions as authorized by such income tax
65-28 laws, the items listed in this paragraph, if such items
65-29 are not already included in gross federal taxable income
65-30 as defined above. For a patient who is a resident of
65-31 another state, 'income' means the same as above except
65-32 no deductions will be made for any deductions or
65-33 personal exemptions as authorized by Georgia income tax
65-34 laws. The following items are to be added,
65-35 respectively:
65-36 (A) Any amounts received by or on behalf of the person
65-37 liable for cost of care from accident insurance or
65-38 workers' compensation for total or partial incapacity
65-39 to work, plus the amount of any damages received by or
65-40 on behalf of the person liable for cost of care,
65-41 whether by suit or agreement, on account of such
65-42 injuries or sickness;
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66- 1 (B) The net income from property acquired by gift,
66- 2 bequest, devise, or descent;
66- 3 (C) Interest upon obligations of the United States
66- 4 government or of this state or of a political
66- 5 subdivision thereof;
66- 6 (D) The net income from individual holdings of stock
66- 7 in banks and trust companies incorporated under the
66- 8 banking laws of this state or of the United States;
66- 9 (E) Retirement income, social security benefits,
66-10 veterans' benefits, and any other benefits that could
66-11 be applied for the support of the patient;
66-12 (F) The net income from any other assets, including
66-13 but not limited to personal property, real property,
66-14 or mixed property, and any other property or estate
66-15 wherever located and in whatever form, inclusive of
66-16 any assets sold or transferred within a period of 90
66-17 days prior to the date services were first rendered to
66-18 the patient by a hospital."
SECTION 11.
66-19 Chapter 9 of Title 37 of the Official Code of Georgia
66-20 Annotated, relating to payment of expenses for support,
66-21 treatment, and care of patients in state institutions
66-22 generally, is amended by striking in its entirety
66-23 subparagraph (F) of paragraph (5) of Code Section 37-9-2,
66-24 relating to definitions applicable under said chapter, and
66-25 inserting in lieu thereof a new subparagraph (F) to read as
66-26 follows:
66-27 "(F) A stepparent or any other person residing with
66-28 and providing support of a patient under 18 years of
66-29 age who has not been legally adopted by such
66-30 individual, with maximum liability limited to the
66-31 amount such stepparent or other individual is
66-32 authorized by Georgia federal income tax laws under
66-33 the United States Internal Revenue Code of 1986 to
66-34 claim as a standard deduction and personal exemption
66-35 for the patient; provided, however, that this
66-36 limitation shall not apply to liability pursuant to
66-37 other provisions of this chapter regarding hospital,
66-38 health, and other medical insurance, program, or plan
66-39 benefits or subrogation rights."
SECTION 12.
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67- 1 Chapter 9 of Title 37 of the Official Code of Georgia
67- 2 Annotated, relating to payment of expenses for support,
67- 3 treatment, and care of patients in state institutions
67- 4 generally, is amended by striking in its entirety Code
67- 5 Section 37-9-7, relating to authority of the Department of
67- 6 Human Resources to inquire into and determine income and
67- 7 assets, and inserting in lieu thereof a new Code Section
67- 8 37-9-7 to read as follows:
67- 9 "37-9-7. (Index)
67-10 (a) The department, through its duly authorized agents,
67-11 shall have the authority to investigate or otherwise
67-12 determine the income and assets of the patient or his
67-13 estate and when necessary the income and assets of all
67-14 other persons liable for the cost of care of such patient
67-15 in order to determine ability to pay cost of care. All
67-16 persons liable for cost of care must provide signed
67-17 consent forms necessary to authorize and conduct an
67-18 investigation to determine the income and assets of such
67-19 persons in order to determine ability to pay cost of care.
67-20 The department shall further have the authority to
67-21 contract with any person, firm, or corporation which it
67-22 finds necessary to provide the information appropriate to
67-23 the carrying out of its duties under this chapter.
67-24 (b) The department shall require declarations to be filed
67-25 by the patient or other persons liable for cost of care
67-26 necessary to determine the assessments required by this
67-27 chapter and shall prescribe the form and content thereof.
67-28 All such declarations are to be regarded as essential to
67-29 carrying out the public policy of this state; and any
67-30 person who knowingly falsifies such declarations shall be
67-31 charged as for false swearing. Failure by the patient or
67-32 other persons liable for cost of care to (1) provide
67-33 information required by such declarations or (2) provide
67-34 signature of consent for the department to conduct an
67-35 investigation authorized by subsection (a) of this Code
67-36 section shall create a rebuttable presumption that the
67-37 patient or other persons liable for cost of care consent
67-38 to and agree with the assessment of the full cost of care,
67-39 and the declaration shall contain on its face,
67-40 conspicuously and in clear language, a statement to that
67-41 effect. (c) The department, through its duly authorized agents,
67-43 shall have access to Georgia income tax records for the
67-44 purpose of obtaining necessary information to enforce this
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68- 1 chapter. Upon the request of the department or its duly
68- 2 authorized agents, the state revenue commissioner and his
68- 3 agents or employees shall disclose such income tax
68- 4 information contained in any report or return required
68- 5 under Georgia law as may be necessary to enforce the
68- 6 provisions of this chapter. Any tax information secured
68- 7 from the federal government by the Department of Revenue
68- 8 pursuant to express provisions of Section 6103 of the
68- 9 Internal Revenue Code may not be disclosed by the
68-10 Department of Revenue pursuant to this subsection. Any
68-11 person receiving any tax information or tax returns under
68-12 the authority of this subsection shall be considered
68-13 either an officer or employee as those terms are used in
68-14 subsection (a) of Code Section 48-7-60; and as such an
68-15 officer or employee, any person receiving any tax
68-16 information or returns under the authority of this
68-17 subsection shall be subject to Code Section 48-7-61.
68-18 (d)(c) Any evidence, records, or other information
68-19 obtained by the department or its duly authorized agents
68-20 pursuant to the authority of this Code section shall be
68-21 confidential and shall be used by the department or its
68-22 agents only for the purposes of enforcing this chapter and
68-23 shall not be released for any purpose other than a hearing
68-24 provided for by this chapter.
68-25 (e)(d) The department shall develop procedures to ensure
68-26 that persons with no other documentation or evidence may
68-27 sign an affidavit attesting to their indigent financial
68-28 status."
SECTION 13.
68-29 Article 1 of Chapter 13 of Title 44 of the Official Code of
68-30 Georgia Annotated, relating to constitutional exemptions
68-31 from levy and sale of property, is amended by striking in
68-32 its entirety Code Section 44-13-1.1, relating to the
68-33 definition of the term "dependent," and inserting in lieu
68-34 thereof a new Code Section 44-13-1.1 to read as follows:
68-35 "44-13-1.1. (Index)
68-36 As used in this article, the term 'dependent' means a
68-37 person whom the debtor may claim as a dependent for
68-38 federal income tax purposes pursuant to Code Section
68-39 48-7-26 the United States Internal Revenue Code of 1986."
SECTION 14.
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69- 1 Article 1 of Chapter 13 of Title 44 of the Official Code of
69- 2 Georgia Annotated, relating to constitutional exemptions
69- 3 from levy and sale of property, is amended by striking in
69- 4 its entirety Code Section 44-13-20, relating to reversion of
69- 5 property set apart for spouse, children, or dependents, and
69- 6 inserting in lieu thereof a new Code Section 44-13-20 to
69- 7 read as follows:
69- 8 "44-13-20. (Index)
69- 9 Property set apart pursuant to Code Section 44-13-2 for a
69-10 spouse, for a spouse and minor children, for minor
69-11 children alone, or for dependents of a debtor (1) upon the
69-12 death of the spouse or the spouse's remarriage, when set
69-13 apart to the spouse alone, (2) upon the attaining of the
69-14 age of majority by the minor children or their marriage
69-15 during minority, when set apart for the minor children,
69-16 (3) upon the death or remarriage of the spouse and the
69-17 attaining of the age of majority by the minor children or
69-18 the marriage of the minor children, when set apart to the
69-19 spouse and minor children, and (4) upon a former dependent
69-20 person's no longer being eligible to be claimed by the
69-21 debtor as a dependent for federal income tax purposes
69-22 pursuant to Code Section 48-7-26 the United States
69-23 Internal Revenue Code of 1986, shall revert to the estate
69-24 from which it was set apart unless it was sold or
69-25 reinvested pursuant to this article, in which case this
69-26 Code section shall apply to and follow all the
69-27 reinvestments unless the fee simple has been sold as
69-28 provided in this article."
SECTION 15.
69-29 Article 2 of Chapter 2 of Title 48 of the Official Code of
69-30 Georgia Annotated, relating to the administration of the
69-31 Department of Revenue and certain tax laws, is amended by
69-32 striking in its entirety Code Section 48-2-56, relating to
69-33 liens for taxes and their priority, and inserting in lieu
69-34 thereof a new Code Section 48-2-56 to read as follows:
69-35 "48-2-56. (Index)
69-36 (a) Except as otherwise provided in this Code section,
69-37 liens for all taxes due the state or any county or
69-38 municipality in the state shall arise as of the time the
69-39 taxes become due and unpaid and all tax liens shall cover
69-40 all property in which the taxpayer has any interest from
69-41 the date the lien arises until such taxes are paid.
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70- 1 (b) Except as otherwise provided in this Code section,
70- 2 liens for taxes are superior to all other liens and shall
70- 3 be paid before any other debt, lien, or claim of any kind.
70- 4 Liens for taxes shall rank among themselves as follows:
70- 5 (1) Taxes due the state;
70- 6 (2) Taxes due counties of the state;
70- 7 (3) Taxes due school and other special tax districts of
70- 8 the state; and
70- 9 (4) Taxes due municipal corporations of the state.
70-10 (c) The lien for taxes imposed by Article 1 of Chapter 9
70-11 of this title, relating to motor fuel taxes, shall not
70-12 have priority as against:
70-13 (1) Any bona fide mortgagee, holder, or transferee of a
70-14 deed to secure debt; or
70-15 (2) Any pledgee, judgment creditor, or purchaser of or
70-16 from persons liable for the tax imposed by Article 1 of
70-17 Chapter 9 of this title
70-18 where the rights of such mortgagee, holder, or transferee
70-19 of a deed to secure debt, pledgee, judgment creditor, or
70-20 purchaser have attached prior to the time notice of the
70-21 lien has been filed by the commissioner in the office of
70-22 the superior court of the county in which the principal
70-23 place of business is located or in the county where
70-24 property of the person liable for payment of the motor
70-25 fuel tax is located.
70-26 (d)(1) Liens for any ad valorem taxes shall cover the
70-27 property of taxpayers liable to tax from the time fixed
70-28 by law for valuation of the property in each year until
70-29 such taxes are paid and shall cover the property of tax
70-30 collectors or tax commissioners and their sureties from
70-31 the time of giving bond until all the taxes for which
70-32 they are responsible are paid.
70-33 (2) The lien for any ad valorem tax shall not be
70-34 superior to the title and operation of a security deed
70-35 when the tax represents an assessment upon property of
70-36 the taxpayer other than property specifically covered by
70-37 the title and operation of the security deed.
70-38 (3) When real property located within this state is
70-39 transferred between the date on which any ad valorem tax
70-40 lien on the property vests and the date on which the tax
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71- 1 evidenced by the tax lien becomes due and payable, the
71- 2 ad valorem tax lien on the transferred property shall
71- 3 not extend to cover any other real property of the
71- 4 transferor.
71- 5 (e) The lien for taxes imposed by the provisions of
71- 6 Article 2 of Chapter 7 of this title, relating to certain
71- 7 income taxes, shall:
71- 8 (1) Arise and cover all property of the taxpayer as of
71- 9 the time a tax execution for these taxes is entered upon
71-10 the general execution docket; and
71-11 (2) Not be superior to the lien of a prior recorded
71-12 instrument securing a bona fide debt.
71-13 Before the lien provided for in this subsection shall
71-14 attach to real property it shall be recorded in the county
71-15 where the real property is located. (f) The lien for taxes imposed by the provisions of
71-17 Article 5 of Chapter 7 of this title, relating to
71-18 withholding taxes, shall: (1) Arise and attach to all property of the defaulting
71-20 employer or other person required to deduct and withhold
71-21 on the date of the assessment of the taxes by operation
71-22 of law or by action of the commissioner; (2) Not be superior to the lien of a prior recorded
71-24 instrument securing a bona fide debt; and (3) Not be superior to the lien of a subsequent bona
71-26 fide purchaser or lender for value recorded prior to the
71-27 time the execution for the tax has been entered on the
71-28 general execution docket in the office of the superior
71-29 court of the county in which the property affected is
71-30 located. Before the lien provided for in this subsection shall
71-32 attach to real property it shall be recorded in the county
71-33 where the real property is located.
71-34 (g)(f)(1) The lien of a specific or occupation tax shall
71-35 not be superior to the title and operation of a security
71-36 deed recorded prior to the time the execution for the
71-37 tax has been entered on the general execution docket in
71-38 the office of the clerk of the superior court of the
71-39 county in which the affected property is located.
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72- 1 (2) As used in this subsection, the term 'specific or
72- 2 occupation tax' means all state, county, and municipal
72- 3 taxes and all state licenses and fees except:
72- 4 (A) The taxes imposed by Article 1 of Chapter 9 of
72- 5 this title;
72- 6 (B) Ad valorem taxes; and
72- 7 (C) The taxes imposed by Article 2 of Chapter 7 of
72- 8 this title.; and (D) The taxes imposed by Article 5 of Chapter 7 of
72-10 this title.
72-11 The term includes, but is not limited to, sales and use
72-12 taxes, corporate net worth taxes, estate taxes,
72-13 real-estate transfer taxes, taxes on financial
72-14 institutions, alcohol and tobacco taxes, road taxes on
72-15 motor carriers, excise taxes, license fees, tax
72-16 liabilities of corporate officers and business
72-17 successors, and tax collections of a person who is a
72-18 dealer under Chapter 8 of this title relating to sales
72-19 and use taxation.
72-20 (h)(g) Liens for taxes existing prior to July 1, 1983,
72-21 shall not be changed by this Code section. On and after
72-22 July 1, 1983, this Code section shall govern the time of
72-23 creation of all tax liens and the priority of all tax
72-24 liens."
SECTION 16.
72-25 Code Section 48-6-93 of the Official Code of Georgia
72-26 Annotated, relating to the local business license tax for
72-27 depository financial institutions, is amended by striking
72-28 subsection (e) in its entirety and inserting in lieu thereof
72-29 a new subsection (e) to read as follows:
72-30 "(e) Any tax paid by a depository financial institution
72-31 pursuant to this Code section and Code Section 48-6-95
72-32 shall be credited dollar for dollar against any state
72-33 corporate income tax liability of such institution for the
72-34 tax year during which any business and occupation tax
72-35 authorized by this Code section is paid. Such credit
72-36 shall be subject to the provisions contained in paragraph
72-37 (10) of subsection (b) of Code Section 48-7-21 48-7-7."
SECTION 17.
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73- 1 Code Section 48-11-14 of the Official Code of Georgia
73- 2 Annotated, relating to registration, reports, and tax
73- 3 payments of persons acquiring cigars and cigarettes subject
73- 4 to tax under Code Section 48-11-13, is amended by striking
73- 5 subsection (d) in its entirety and inserting in lieu thereof
73- 6 a new subsection (d) to read as follows:
73- 7 "(d) Except as otherwise provided in this Code section,
73- 8 the sanctions and penalties set forth in Code Sections
73- 9 48-11-15, 48-11-17, 48-11-18, and 48-11-20 through
73-10 48-11-24 and in Code Sections 48-7-2 48-7-3, 48-10-16, and
73-11 48-13-38 shall be imposed where applicable for any
73-12 violations of this chapter by consumers."
SECTION 18.
73-13 Chapter 1 of Title 49 of the Official Code of Georgia
73-14 Annotated, relating to general provisions applicable to
73-15 social services, is amended by striking in its entirety Code
73-16 Section 49-1-9, relating to the Home Delivered Meals,
73-17 Transportation Services for the Elderly, and Preschool
73-18 Children with Special Needs Fund, and inserting in lieu
73-19 thereof the following:
73-20 "49-1-9. (Index)
73-21 Reserved."
SECTION 19.
73-22 Code Section 50-27-3 of the Official Code of Georgia
73-23 Annotated, relating to definitions applicable to the
73-24 "Georgia Lottery for Education Act," is amended by striking
73-25 paragraph (13) in its entirety and inserting in lieu thereof
73-26 a new paragraph (13) to read as follows:
73-27 "(13) 'Minority business' means any business which is
73-28 owned by:
73-29 (A) An individual who is a member of a minority who
73-30 reports as his personal income for Georgia federal
73-31 income tax purposes the income of such business;
73-32 (B) A partnership in which a majority of the ownership
73-33 interest is owned by one or more members of a minority
73-34 who report as their personal income for Georgia
73-35 federal income tax purposes more than 50 percent of
73-36 the income of the partnership; or
73-37 (C) A corporation organized under the laws of this
73-38 state in which a majority of the common stock is owned
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74- 1 by one or more members of a minority who report as
74- 2 their personal income for Georgia federal income tax
74- 3 purposes more than 50 percent of the distributed
74- 4 earnings of the corporation."
PART IV
SECTION 20.
74- 5 Part I of this Act and this part shall become effective upon
74- 6 their approval by the Governor or upon their becoming law
74- 7 without such approval. Parts II and III of this Act shall
74- 8 become effective on January 1, 2000.
SECTION 21.
74- 9 All laws and parts of laws in conflict with this Act are
74-10 repealed.
-74- (Index)
Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97