HB 3 - Federal pension income; certain income taxes; claims for refunds
Georgia House of Representatives - 1995/1996 Sessions
HB 3 - Federal pension income; certain income taxes; claims for refunds
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6
1. Buck 135th 2. Jamieson 22nd 3. Royal 164th
4. Culbreth 132nd 5. Smyre 136th 6. Taylor 134th
House Comm: W&M / Senate Comm: F&PU /
House Vote: Yeas 163 Nays 0 Senate Vote: Yeas 49 Nays 0
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House Action Senate
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1/9/95 Read 1st Time 1/30/95
1/10/95 Read 2nd Time 2/10/95
1/26/95 Favorably Reported 2/9/95
Sub Committee Amend/Sub Sub
1/27/95 Read 3rd Time 3/6/95
1/27/95 Passed/Adopted 3/6/95
CS Comm/Floor Amend/Sub CSFA
3/13/95 Amend/Sub Agreed To
4/5/95 Sent to Governor
4/19/95 Signed by Governor
407 Act/Veto Number
4/19/95 Effective Date
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Rules Suspended to Introduce
Code Sections amended: 48-2-100, 48-2-101, 48-2-102, 48-2-103, 48-2-104,
48-2-105
HB 3 HB 3/AP
H. B. No. 3 (AS PASSED HOUSE AND SENATE)
By: Representatives Buck of the 135th, Jamieson of the
22nd, Royal of the 164th, Culbreth of the 132nd, Smyre of
the 136th and others
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 2 of Title 48 of the Official Code of
1- 2 Georgia Annotated, relating to state administrative
1- 3 organization, administration, and enforcement, so as to
1- 4 provide for the refund of certain income taxes to certain
1- 5 retired federal employees; to provide for definitions; to
1- 6 provide for refund requests and procedures; to provide for
1- 7 rights and duties of persons making requests; to provide for
1- 8 powers, duties, and authority of the state revenue
1- 9 commissioner, the Department of Revenue, and the Office of
1-10 State Administrative Hearings; to provide for automatic
1-11 repeal of the foregoing provisions; to provide an effective
1-12 date; to repeal conflicting laws; and for other purposes.
1-13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1-14 Chapter 2 of Title 48 of the Official Code of Georgia
1-15 Annotated, relating to state administrative organization,
1-16 administration, and enforcement, is amended by adding a new
1-17 article at the end thereof, to be designated Article 4, to
1-18 read as follows:
"ARTICLE 4
1-19 48-2-100. (Index)
1-20 As used in this article, the term:
1-21 (1) 'Common fund' means the total dollar amount of
1-22 reduced principal to be refunded with simple interest
1-23 calculated pursuant to this article to eligible
1-24 recipients.
1-25 (2) 'Eligible recipient' means a retired federal
1-26 employee whose retirement income was taxed by the State
1-27 of Georgia for the year 1985, 1986, 1987, or 1988 and
1-28 who was a resident Georgia taxpayer during that tax
1-29 year, who failed to file a timely refund claim for that
1-30 tax year pursuant to Code Section 48-2-35, and who did
1-31 not qualify to receive a refund for that tax year
H. B. No. 3
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HB 3/AP
2- 1 pursuant to HB 90, if such Act is enacted and approved
2- 2 at the 1995 regular session of the General Assembly,
2- 3 notwithstanding the accord and satisfaction provisions
2- 4 of any other Act enacted and approved at the 1995
2- 5 regular session of the General Assembly, specifically
2- 6 including, but not limited to, HB 90, if it is so
2- 7 enacted and approved, or any other law to the contrary.
2- 8 A retired federal employee whose retirement income was
2- 9 taxed by the State of Georgia for the year 1985, 1986,
2-10 1987, or 1988 who qualifies for a refund for only some
2-11 of those four years pursuant to the provisions of HB 90
2-12 may file a refund request under this article for any of
2-13 those four years for which such retired federal employee
2-14 did not receive a refund under HB 90 if such retired
2-15 federal employee otherwise meets the qualifications
2-16 specified under this article.
2-17 (3) 'Installment payments' means those payments of
2-18 reduced principal and interest thereon to eligible
2-19 recipients which are to be made according to the
2-20 schedule provided for by this article.
2-21 (4) 'Reduced principal' means an amount equal to 85
2-22 percent of the taxes collected in tax years 1985, 1986,
2-23 1987, and 1988 by the state from retired federal
2-24 employees who are eligible recipients under this
2-25 article, which taxes were unconstitutional under the
2-26 principles set forth in Davis v. Michigan, 489 U.S. 803
2-27 (1989).
2-28 (5) 'Refund request' means a written notice, whether on
2-29 a Form 500 X or other appropriate written notice
2-30 provided by the commissioner, which must be filed by the
2-31 taxpayer with the department on or after November 1,
2-32 1995, and on or prior to December 15, 1995, for one or
2-33 more of the tax years 1985, 1986, 1987, and 1988 in
2-34 accordance with this article.
2-35 (6) 'Retired federal employees' means federal civil
2-36 service employees and United States military personnel
2-37 or their heirs or their estate or legal representative.
2-38 (7) 'Retirement income' means income which was taxed by
2-39 the State of Georgia for tax years 1985, 1986, 1987, and
2-40 1988 and which taxes were unconstitutional under the
2-41 principles set forth in Davis v. Michigan, 489 U.S. 803
2-42 (1989).
H. B. No. 3
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HB 3/AP
3- 1 48-2-101. (Index)
3- 2 (a) The state shall pay refund requests to eligible
3- 3 recipients in the amount of the reduced principal paid by
3- 4 the eligible recipient for each year that the eligible
3- 5 recipient filed a refund request. Refunds shall be paid
3- 6 in four approximately equal installment payments on or
3- 7 before the fifteenth day of October 1996, 1997, 1998, and
3- 8 1999 until the reduced principal and interest thereon have
3- 9 been paid in full. The state shall pay eligible
3-10 recipients simple interest calculated at 7 percent from
3-11 the date the income tax payment was due and payable by the
3-12 eligible recipient until payment of the first installment
3-13 payment due October 15, 1996. The state shall further pay
3-14 to an eligible recipient interest calculated at 7 percent
3-15 simple interest on the unpaid balance of the reduced
3-16 principal due that eligible recipient, plus accrued
3-17 interest, until paid in full.
3-18 (b) The total amount of the reduced principal and interest
3-19 due the eligible recipients shall constitute a common
3-20 fund. The state may pay refunds prior to the scheduled
3-21 installment date and no prepayment penalty shall be
3-22 assessed. The common fund exists only as an accounting
3-23 device for purposes of calculation of the amount of the
3-24 reduced principal and interest thereon due eligible
3-25 recipients. No appropriations are required to fund the
3-26 common fund. The common fund is not a separate fund for
3-27 purposes of any appropriations Act.
3-28 48-2-102. (Index)
3-29 (a) The department shall calculate the amount of each
3-30 eligible recipient's refund and at the time of the first
3-31 disbursement shall provide each eligible recipient with
3-32 written notice mailed to the last known address of each
3-33 eligible recipient. The written notice shall detail the
3-34 estimated total amount of the common fund, the installment
3-35 payment schedule, and the pro rata share annually
3-36 estimated to be due the particular taxpayer who is an
3-37 eligible recipient. The amount shown as the pro rata
3-38 share for each eligible recipient shall separately
3-39 disclose the amount of reduced principal and interest
3-40 thereon and any setoffs for other unpaid taxes due by the
3-41 taxpayer at the time of the written notice.
3-42 (b) The written notice shall advise eligible recipients
3-43 that negotiation of the first disbursement shall
H. B. No. 3
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HB 3/AP
4- 1 constitute a release and full accord and satisfaction for
4- 2 any and all refund requests for tax years 1985, 1986,
4- 3 1987, and 1988 which the eligible recipient has or may
4- 4 have for recovery of taxes alleged to be illegal based on
4- 5 4 U.S.C. Section 111, the doctrine of intergovernmental
4- 6 immunity, or the decision of the United States Supreme
4- 7 Court in Davis v. Michigan Dep't of Treasury, 489 U.S. 803
4- 8 (1989). Negotiation of the first disbursement shall also
4- 9 constitute full and complete acceptance of all the terms
4-10 and conditions set forth in this article and shall bar any
4-11 challenges to this article.
4-12 (c) An eligible recipient may decline to participate in
4-13 the refund procedure under this article by providing
4-14 written objection of same to the commissioner on or before
4-15 90 days from receipt of the notice. Notice shall be
4-16 presumed to have been received three days from the date of
4-17 mailing by the commissioner. Failure to send timely
4-18 written objection shall forever bar any claim the eligible
4-19 recipient may have for recovery of taxes for tax years
4-20 1985, 1986, 1987, and 1988 alleged to be illegal based on
4-21 4 U.S.C. Section 111, the doctrine of intergovernmental
4-22 immunity, or the decision of the United States Supreme
4-23 Court in Davis v. Michigan, except as otherwise provided
4-24 for in this article.
4-25 (d) The written notice shall also advise each eligible
4-26 recipient that such recipient may request a conference
4-27 within 30 days of receipt of the written notice and first
4-28 disbursement provided for in subsection (b) of this Code
4-29 section before the commissioner or the commissioner's
4-30 designee in connection with any dispute involving the
4-31 amount calculated as the refund due, taking into account
4-32 any setoffs applied. To exercise this right, the eligible
4-33 recipient shall specify such desire in writing directed to
4-34 the commissioner, and the commissioner or the
4-35 commissioner's designee shall grant a conference at a time
4-36 he or she shall reasonably specify, which in any event,
4-37 shall be no more than 30 days from the date of such
4-38 request. Negotiation of the first disbursement by the
4-39 eligible recipient shall forever bar any right to dispute
4-40 the amount calculated as the refund due as shown in the
4-41 written notice.
4-42 (e) The commissioner or the commissioner's designee must
4-43 make a determination of the amount due the eligible
4-44 recipient within 60 days of the conference. Notice of the
H. B. No. 3
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HB 3/AP
5- 1 determination must be in writing and must be mailed to the
5- 2 last known address of the eligible recipient. Appeals of
5- 3 the determination of the commissioner shall be made within
5- 4 60 days to the Office of State Administrative Hearings.
5- 5 (f) All other disputes pursuant to this article not
5- 6 involving questions regarding the specific refund due the
5- 7 eligible recipient shall be referred to the Office of
5- 8 State Administrative Hearings. Any disputes brought
5- 9 before the Office of State Administrative Hearings shall
5-10 be heard and decided pursuant to the procedures specified
5-11 in Chapter 13 of Title 50, the 'Georgia Administrative
5-12 Procedure Act,' unless specifically provided otherwise in
5-13 this article. The Office of State Administrative Hearings
5-14 shall enter such orders and make such findings as
5-15 necessary to implement this article and to effectuate the
5-16 full, prompt, and final disposition of the refund requests
5-17 of eligible recipients under this article. Without
5-18 limitation, the Office of State Administrative Hearings
5-19 shall determine the validity and timeliness of individual
5-20 refund requests. The Office of State Administrative
5-21 Hearings shall also review the determination of the
5-22 commissioner or the commissioner's designee as to the
5-23 amounts due eligible recipients.
5-24 (g) Eligible recipients may appeal any decision of the
5-25 Office of State Administrative Hearings to the superior
5-26 court of the county of the residence of the taxpayer,
5-27 except that if the taxpayer is a nonresident individual,
5-28 any appeal shall be made to the Superior Court of Fulton
5-29 County. All appeals from the Office of State
5-30 Administrative Hearings shall be governed by Chapter 13 of
5-31 Title 50, the 'Georgia Administrative Procedure Act.'
5-32 48-2-103. (Index)
5-33 (a) In the event of a refund to an eligible recipient, the
5-34 commissioner may set off other state taxes which have
5-35 become due, whether at the time of initial calculation or
5-36 thereafter.
5-37 (b) The department may not exercise the right to set off
5-38 other state taxes which have become due unless and until
5-39 it provides written notice to the eligible recipient. The
5-40 eligible recipient may contest the setoff according to
5-41 laws, policies, and procedures of the department.
5-42 (c) When the setoff authorized by this Code section is
5-43 exercised, the refund shall be deemed granted and the
H. B. No. 3
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HB 3/AP
6- 1 amount of the setoff shall be considered for all purposes
6- 2 as a payment toward the particular tax debt which is being
6- 3 set off. Any excess refund amount remaining after the
6- 4 setoff has been applied shall be refunded to the taxpayer
6- 5 as otherwise provided in this Code section.
6- 6 48-2-104. (Index)
6- 7 Notwithstanding any provision of law to the contrary,
6- 8 interest paid to eligible recipients pursuant to this
6- 9 article shall not constitute income for the purposes of
6-10 Chapter 7 of this title.
6-11 48-2-105. (Index)
6-12 This article shall stand repealed and shall be null and
6-13 void and of no effect with no further legislative action
6-14 required on December 31, 2000."
SECTION 2.
6-15 This Act shall become effective upon its approval by the
6-16 Governor or upon its becoming law without such approval.
SECTION 3.
6-17 All laws and parts of laws in conflict with this Act are
6-18 repealed.
H. B. No. 3
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Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97