Georgia House of Representatives - 1995/1996 Sessions

HB 32 - Retirement Pay Tax Refund Act of 1995; enact

Page Numbers - 1/ 2/ 3

Code Sections - 48-2-35.1

1. Kaye  37th             2. Mann  5th               3. Smith  102nd
4. Yates  106th           5. Mills  21st             6. Bunn  74th


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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              1/11/95  Read 1st Time                                                                
              1/12/95  Read 2nd Time                                                                
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Code Sections amended: 48-2-35.1                                                                    


HB 32                                             LC 18 6456






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Article 2 of Chapter 2 of Title 48 of the Official
  1- 2  Code of Georgia Annotated, relating to state administration
  1- 3  of revenue and taxation, so as to provide for claims for
  1- 4  refunds of certain state income taxes paid with respect to
  1- 5  federal military or federal retirement income; to provide
  1- 6  for a short title; to provide for tax refunds with respect
  1- 7  to income taxes owed by a taxpayer; to provide for
  1- 8  procedures and forms; to provide for powers, duties, and
  1- 9  responsibilities of the state revenue commissioner with
  1-10  respect to the foregoing; to provide an effective date; to
  1-11  repeal conflicting laws; and for other purposes.

  1-12       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-13  Article 2 of Chapter 2 of Title 48 of the Official Code of
  1-14  Georgia Annotated, relating to state administration of
  1-15  revenue and taxation, is amended by adding a new Code
  1-16  section immediately following Code Section 48-2-35, to be
  1-17  designated Code Section 48-2-35.1, to read as follows:

  1-18    "48-2-35.1. (Index)

  1-19    (a) This Code section shall be known and may be cited as
  1-20    the 'Retirement Pay Tax Refund Act of 1995.'

  1-21    (b) A taxpayer shall be refunded all state income taxes
  1-22    with respect to any federal military or federal retirement
  1-23    income of such taxpayer, whether paid voluntarily or
  1-24    involuntarily, which taxes were assessed and collected
  1-25    under a statute expressly held to be unconstitutional by
  1-26    the United States Supreme Court in Reich v. Collins, Case
  1-27    Number 93-908.  Interest shall be paid upon overpayment
  1-28    of such state income taxes at the overpayment rate
  1-29    established under Sections 6621 and 6622 of the Internal
  1-30    Revenue Code of 1986, as amended.

  1-31    (c) A claim for such refund may be made by the taxpayer at
  1-32    any time after the date of payment of the tax to the



                                 -1- (Index)

                                                  LC 18 6456

  2- 1    commissioner.  Each claim shall be filed in writing on a
  2- 2    simple, nontechnical, one-page form to be produced by the
  2- 3    commissioner and shall contain such information as the
  2- 4    commissioner may reasonably require.  Any reasonable
  2- 5    evidence or supporting documentation showing that the
  2- 6    taxpayer paid such tax shall be accepted by the
  2- 7    commissioner.

  2- 8    (d) In the event the taxpayer desires a conference or
  2- 9    hearing before the commissioner in connection with any
  2-10    claim for refund, the taxpayer shall specify such desire
  2-11    in writing in the claim and, if the claim conforms with
  2-12    the requirements of this Code section, the commissioner
  2-13    shall grant a conference at a time he or she shall
  2-14    reasonably specify.

  2-15    (e) The commissioner or the commissioner's delegate shall
  2-16    consider information contained in the taxpayer's claim for
  2-17    refund, together with such other information as may be
  2-18    available, and shall approve or disapprove the taxpayer's
  2-19    claim and notify the taxpayer of the action taken.

  2-20    (f) Any taxpayer whose claim for refund is denied by the
  2-21    commissioner or the commissioner's delegate or whose claim
  2-22    is not decided by the commissioner or the commissioner's
  2-23    delegate within one year from the date of filing the claim
  2-24    shall have the right to bring an action for a refund in
  2-25    the superior court of the county of the residence of the
  2-26    taxpayer, except that if the taxpayer is a nonresident
  2-27    individual, the taxpayer shall have the right to bring an
  2-28    action for a refund in the Superior Court of Fulton County
  2-29    or in the superior court of the county in which the
  2-30    commissioner in office at the time the action is filed
  2-31    resides.

  2-32    (g) No action or proceeding for the recovery of a refund
  2-33    under this Code section shall be commenced before the
  2-34    expiration of one year from the date of filing the claim
  2-35    for refund unless the commissioner or the commissioner's
  2-36    delegate renders a decision on the claim within that time,
  2-37    nor shall any action or proceeding be commenced after the
  2-38    expiration of two years from the date the claim is denied.
  2-39    The two-year period prescribed in this subsection for
  2-40    filing an action for refund shall be extended for such
  2-41    period as may be agreed upon in writing between the
  2-42    taxpayer and the commissioner during the two-year period
  2-43    or any extension thereof.



                                 -2- (Index)

                                                  LC 18 6456

  3- 1    (h) In the event any taxpayer's claim for refund is
  3- 2    approved by the commissioner or the commissioner's
  3- 3    delegate and the taxpayer has not paid other state taxes
  3- 4    which have become due, the commissioner or department may
  3- 5    set off the unpaid taxes against the refund. When the
  3- 6    setoff authorized by this subsection is exercised, the
  3- 7    refund shall be deemed granted and the amount of the
  3- 8    setoff shall be considered for all purposes as a payment
  3- 9    toward the particular tax debt which is being set off. Any
  3-10    excess refund amount remaining after the setoff has been
  3-11    applied shall be refunded to the taxpayer as otherwise
  3-12    provided in this Code section."

                         SECTION 2.

  3-13  This Act shall become effective upon its approval by the
  3-14  Governor or upon its becoming law without such approval.

                         SECTION 3.

  3-15  All laws and parts of laws in conflict with this Act are
  3-16  repealed.




























                                 -3- (Index)