HB 7 - Intangible personal property tax; repeal
Georgia House of Representatives - 1995/1996 Sessions
HB 7 - Intangible personal property tax; repeal
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11/ 12
1. Buck 135th
House Comm: / Senate Comm: /
House Vote: Yeas Nays Senate Vote: Yeas Nays
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House Action Senate
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Code Sections amended: 48-6-20, 48-6-21, 48-6-22, 48-6-23, 48-6-24, 48-6-25,
48-6-26, 48-6-26.1, 48-6-27, 48-6-28, 48-6-29, 48-6-30, 48-6-31, 48-6-32,
48-6-33, 48-6-34, 48-6-35, 48-6-36, 48-6-37, 48-6-38, 48-6-39, 48-6-40, 48-6-41,
48-6-42, 48-6-43, 48-6-44
HB 7 LC 18 6388
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 6 of Title 48 of the Official Code of
1- 2 Georgia Annotated, relating to taxation of intangibles, so
1- 3 as to repeal the intangible personal property tax; to
1- 4 provide an effective date; to repeal conflicting laws; and
1- 5 for other purposes.
1- 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1- 7 Chapter 6 of Title 48 of the Official Code of Georgia
1- 8 Annotated, relating to taxation of intangibles, is amended
1- 9 by striking Article 2, relating to the intangible personal
1-10 property tax, which reads as follows:
"ARTICLE 2
1-11 48-6-20. (Index)
1-12 As used in this chapter, the term:
1-13 (1) 'Bank' means any financial institution chartered
1-14 under the laws of this state or under the laws of the
1-15 United States and domiciled in this state which is
1-16 authorized to receive deposits in this state and which
1-17 has a corporate structure authorizing the issuance of
1-18 capital stock.
1-19 (2) 'Collateral security loan' means a loan held by any
1-20 broker which represents credit extended in connection
1-21 with the purchase or sale of stocks, bonds, or other
1-22 securities of a like character held as collateral
1-23 security for the loan.
1-24 (3) 'Depository financial institution' means a 'bank'
1-25 and a 'savings and loan association.'
1-26 (3.1) 'Domesticated foreign corporation' means:
1-27 (A) A foreign corporation which, prior to April 1,
1-28 1969, has domesticated in this state under the
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LC 18 6388
2- 1 procedure available prior to that date and which was a
2- 2 domesticated foreign corporation on that date; or
2- 3 (B) A foreign corporation which has procured a
2- 4 certificate of authority to transact business in this
2- 5 state from the Secretary of State and which maintains
2- 6 its corporate headquarters in this state.
2- 7 (4) 'Money' means specie, currency, and credits
2- 8 resulting from the deposit of money, currency, checks,
2- 9 bills, and other evidences of the credits.
2-10 (5) 'Restricted foreign intangibles' means all
2-11 classifications of intangible personal property acquired
2-12 and held in a foreign country incident to the conduct of
2-13 the business of insurance within the foreign country if
2-14 the intangible personal property is held in the foreign
2-15 country pursuant to laws or regulations of the foreign
2-16 country or administrative guidance by the government of
2-17 the foreign country which prohibit or restrict the
2-18 transfer of said property outside of the jurisdiction of
2-19 the foreign country.
2-20 (6) 'Savings and loan association' means any financial
2-21 institution, other than a credit union, chartered under
2-22 the laws of this state or under the laws of the United
2-23 States and domiciled in this state which is authorized
2-24 to receive deposits in this state and which has a mutual
2-25 corporate form.
2-26 48-6-21. (Index)
2-27 Intangible personal property, for the purposes of ad
2-28 valorem taxation, is classified as follows:
2-29 (1) Money;
2-30 (2) Collateral security loans;
2-31 (3) Stocks;
2-32 (4) Accounts receivable and notes not representing
2-33 credits secured by real estate;
2-34 (5) Bonds and debentures of all corporations;
2-35 (6) Long-term notes secured by real estate;
2-36 (7) Short-term notes secured by real estate;
2-37 (8) Restricted foreign intangibles;
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LC 18 6388
3- 1 (9) Patents, copyrights, franchises, and all other
3- 2 classes and kinds of intangible personal property not
3- 3 otherwise enumerated; or
3- 4 (10) Computer software as defined in Code Section
3- 5 48-1-8.
3- 6 48-6-22. (Index)
3- 7 The tax imposed by this article shall not apply to:
3- 8 (1) Obligations or evidences of debt of the United
3- 9 States or of this state or its political subdivisions or
3-10 public institutions. Such obligations and evidences of
3-11 debt shall include obligations of the United States
3-12 government agencies and corporations established by acts
3-13 of the Congress of the United States as well as
3-14 industrial development revenue bonds issued pursuant to
3-15 the laws of this state;
3-16 (2) Intangible personal property owned by a trust
3-17 forming part of a pension, profit-sharing, or stock
3-18 bonus plan exempt from federal income taxes under
3-19 Section 401 of the Internal Revenue Code;
3-20 (3) Intangible personal property owned by or irrevocably
3-21 held in trust for the exclusive benefit of a religious,
3-22 educational, or charitable institution, no part of the
3-23 net profit from the operation of which inures to the
3-24 benefit of any private person;
3-25 (4) Intangible personal property owned by a person
3-26 domiciled in this state which has acquired a taxable
3-27 situs and is subjected to tax in another state incident
3-28 to the conduct of business located in the other state,
3-29 except that this paragraph shall not apply to restricted
3-30 foreign intangibles;
3-31 (5) Common voting stock of a subsidiary corporation not
3-32 doing business in this state if at least 90 percent of
3-33 the common voting stock is owned by a domestic
3-34 corporation with its principal place of business in this
3-35 state and was acquired or is held for the purpose of
3-36 enabling the parent company to carry on some part of its
3-37 established line of business through the subsidiary;
3-38 (6) Stock of a corporation organized under the laws of
3-39 this state if the corporation pays all taxes in this
3-40 state as provided by law. For purposes of this
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LC 18 6388
4- 1 paragraph, the term 'corporation' also means any
4- 2 depository financial institution;
4- 3 (7) Stock of a domesticated foreign corporation if the
4- 4 corporation pays to this state or its political
4- 5 subdivisions all taxes as provided by law;
4- 6 (8) Assets representing mandatory reserve requirements
4- 7 imposed, by statute or otherwise, on depository
4- 8 financial institutions subject to the tax on intangible
4- 9 property;
4-10 (9) Stock of the Federal Reserve Bank, the Government
4-11 National Mortgage Association, the Federal National
4-12 Mortgage Association, and other corporations and
4-13 associations established by acts of the Congress of the
4-14 United States;
4-15 (10) Mandatory deposits with the Federal Reserve Bank or
4-16 others required by statute or regulations;
4-17 (11) Federal or correspondent funds sold and securities
4-18 and other intangible assets purchased under agreements
4-19 to resell to the extent they are offset by federal or
4-20 correspondent funds purchased and securities and other
4-21 intangible assets sold under agreements to repurchase;
4-22 (12) Customer's liabilities to depository financial
4-23 institutions on acceptances outstanding to the extent
4-24 they are offset by liabilities of depository financial
4-25 institutions on acceptances executed and outstanding;
4-26 (13) Receivables arising from the lease of tangible
4-27 personal property, provided that tangible property tax
4-28 is due upon such property;
4-29 (14) Intercompany loans or advances from a parent
4-30 corporation to a subsidiary, or vice versa, or from one
4-31 subsidiary to another subsidiary, provided that the
4-32 parent corporation owns, either directly or through
4-33 other subsidiaries, more than 90 percent of the common
4-34 voting stock of any subsidiary which is a party to any
4-35 such transaction;
4-36 (15) Intangible personal property owned by an
4-37 international banking agency or domestic international
4-38 banking facility licensed to do business in this state;
4-39 and
4-40 (16) Stock held in a foreign corporation which was a
4-41 party to a reorganization prior to January 1, 1992,
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LC 18 6388
5- 1 under the provisions of Part 19 of Article 2 of Chapter
5- 2 1 of Title 7 if the stock of another corporation which
5- 3 was a party to such reorganization and which was
5- 4 acquired in such reorganization was exempt from such tax
5- 5 prior to such reorganization.
5- 6 48-6-23. (Index)
5- 7 (a) A property tax is levied annually as of January 1 of
5- 8 each year at the following rates:
5- 9 (1) Ten cents upon each $1,000.00 of the fair market
5-10 value of all personal property classified for taxation
5-11 as intangible personal property in Code Section 48-6-21,
5-12 including all restricted foreign intangibles. The tax
5-13 is not levied by this paragraph on intangible personal
5-14 property classified as collateral security loans,
5-15 long-term notes secured by real estate, or stocks,
5-16 bonds, and debentures; except for restricted foreign
5-17 intangibles which are taxed in this paragraph and not
5-18 otherwise;
5-19 (2) Twenty-five cents upon each $1,000.00 of the fair
5-20 market value of all collateral security loans;
5-21 (3) One dollar upon each $1,000.00 of the fair market
5-22 value of all stocks in all corporations except those
5-23 specifically exempted by law; and
5-24 (4) One dollar upon each $1,000.00 of the fair market
5-25 value of all bonds and debentures of all corporations.
5-26 The tax rate upon notes of corporations, other than
5-27 long-term notes secured by real estate, shall be the
5-28 rate specified in paragraph (1) of subsection (a) of
5-29 this Code section, regardless of the maturity date of
5-30 any such note or notes.
5-31 (b) Long-term notes secured by real estate, as defined in
5-32 Article 3 of this chapter, shall be recorded and taxed as
5-33 provided in Article 3 of this chapter.
5-34 48-6-24. (Index)
5-35 (a) The taxes imposed by Code Section 48-6-23 shall be in
5-36 lieu of all other state, county, municipal, and district
5-37 property taxes on intangible personal property classified
5-38 for taxation as specified in this article. All intangible
5-39 personal property not otherwise exempted shall be taxed
5-40 without deduction of any indebtedness or liability of the
5-41 taxpayer.
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LC 18 6388
6- 1 (b) A sale or transfer of accounts receivable or of notes
6- 2 not representing credits secured by real estate to a
6- 3 nonresident of this state shall be void as far as tax
6- 4 liability is concerned. Sales or transfers to nonresidents
6- 5 of accounts receivable or notes retaining any interest
6- 6 whatever by the seller shall be void with respect to tax
6- 7 liability. The physical removal of such accounts
6- 8 receivable and notes from the state by any person doing
6- 9 business in the state shall not avoid liability for the
6-10 tax imposed by this article.
6-11 48-6-25. (Index)
6-12 Every resident and nonresident person is subject to the
6-13 tax imposed by this article on as much of his property
6-14 taxable under this article as has been acquired in the
6-15 conduct of, or has been used incident to, business carried
6-16 on or property located in this state. Each such person
6-17 shall report the property and pay taxes on the property as
6-18 provided in this article. Stock of a foreign subsidiary
6-19 corporation held by a foreign parent corporation whose
6-20 corporate headquarters are located in this state will not
6-21 be deemed to have been acquired in the conduct of, or used
6-22 incident to, business carried on or property located in
6-23 this state, and the stock of such foreign subsidiary
6-24 corporation will not otherwise be deemed to have a taxable
6-25 situs in this state.
6-26 48-6-26. (Index)
6-27 The taxable situs of all intangible trust property, if the
6-28 trust was or is created by a resident of this state, is
6-29 fixed and declared, if the settlor or maker is living, to
6-30 be the county of this state of which the settlor or maker
6-31 of the trust is a resident or, if the settlor or maker is
6-32 deceased, the county of this state of which the settlor or
6-33 maker of the trust was a resident at the time of his
6-34 death.
6-35 48-6-26.1. (Index)
6-36 Notwithstanding any other provision of law to the
6-37 contrary, the commissioner shall grant, upon written
6-38 request, an extension of four months for filing returns,
6-39 declarations, or other documents required under this
6-40 article whenever, in the reasonable exercise of his
6-41 judgment, a good cause for the extension exists. The
6-42 commissioner shall keep a record of every extension
6-43 granted and the reason for the extension. No such
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LC 18 6388
7- 1 extension shall operate to delay the payment of a tax
7- 2 unless a bond satisfactory to the commissioner is posted.
7- 3 The commissioner shall by rule and regulation provide for
7- 4 the administration of this Code section.
7- 5 48-6-27. (Index)
7- 6 (a) Every person owning intangible personal property
7- 7 classified for taxation under this article shall file a
7- 8 return of such property. The return shall:
7- 9 (1) Describe in detail each item of property (including
7-10 exempt as well as taxable property, except obligations
7-11 of the United States);
7-12 (2) Give a description of the property in the form
7-13 required by the commissioner;
7-14 (3) Show the face value of each item of intangible
7-15 personal property;
7-16 (4) Show such other information pertaining to the return
7-17 as reasonably required by the commissioner; and
7-18 (5) Be filed with the commissioner on or before April 15
7-19 of each year.
7-20 (b) The return shall be separately sworn to and shall be
7-21 filed by every owner of the intangible personal property
7-22 taxable under this article.
7-23 (c) This Code section shall not apply to intangible
7-24 personal property belonging to:
7-25 (1) The United States;
7-26 (2) This state or any political subdivision of this
7-27 state;
7-28 (3) A religious, educational, or charitable
7-29 organization;
7-30 (4) A trust exempt from federal income taxes under
7-31 Section 401 of the Internal Revenue Code; or
7-32 (5) A nonprofit cooperative association.
7-33 (d) Money belonging to a person residing outside this
7-34 state (except as provided in Code Section 48-6-25) shall
7-35 be neither returnable nor taxable.
7-36 (e)(1) It is the intent of this subsection to carry into
7-37 effect the constitutional authorization to exempt from
7-38 the return and payment requirements of this article
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LC 18 6388
8- 1 those returns on which the tax due exceeds the
8- 2 reasonable cost of administering the tax.
8- 3 (2) No return need be filed pursuant to this Code
8- 4 section nor tax paid as required by this article if the
8- 5 amount of tax due on all intangible property owned in
8- 6 whole or in part by the person liable for the tax is
8- 7 less than $20.00.
8- 8 48-6-28. (Index)
8- 9 Any person including, but not limited to, an agent holding
8-10 money belonging to others may make returns for the other
8-11 persons and may pay the tax on the money as provided in
8-12 this article when so authorized by the person owning the
8-13 money.
8-14 48-6-29. (Index)
8-15 (a) Any bank or trust company organized under the laws of
8-16 this state or of the United States and having on deposit
8-17 money subject to taxation under this article may make a
8-18 return to the commissioner of the aggregate amount of
8-19 money on deposit with the bank owned by a taxpayer and may
8-20 pay the tax on the money on the taxpayer's behalf when so
8-21 authorized by the taxpayer. A return by a bank or trust
8-22 company shall state the aggregate amount of money it has
8-23 on deposit which is subject to taxation under this article
8-24 and which is owned by the taxpayer authorizing the bank to
8-25 make the return. The return shall state also the amount
8-26 of money having a taxable situs in each county,
8-27 municipality, or special tax district in which any of the
8-28 money has a taxable situs.
8-29 (b) If a bank or trust company elects to make a return and
8-30 pay the tax, any person having money on deposit on which
8-31 the bank has made a return and paid the taxes shall be
8-32 deemed to have made a return of his money for taxation if
8-33 he states in his return the name of the bank or trust
8-34 company authorized to make a return of his money for
8-35 taxation and to pay the tax on the money.
8-36 (c) The amount of tax paid by any bank for a taxpayer
8-37 shall be charged to the account of the taxpayer.
8-38 48-6-30. (Index)
8-39 In addition to all other penalties and interest provided
8-40 by law, every taxpayer failing to return for taxation all
8-41 intangible personal property which it is his duty to
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LC 18 6388
9- 1 return as required by this article shall pay a penalty, as
9- 2 part of the tax imposed by this article, in an amount
9- 3 equal to 25 percent of the original tax on property not
9- 4 returned.
9- 5 48-6-31. (Index)
9- 6 Every foreign corporation doing business or owning
9- 7 property in this state and each domestic corporation, when
9- 8 the stocks and bonds of the foreign or domestic
9- 9 corporation are subject to tax under this article, shall
9-10 make on or before March 1 of each year a true, correct,
9-11 and verified report to the commissioner. The report shall
9-12 give in the form required by the commissioner the names
9-13 and addresses of persons in this state who held its shares
9-14 of stock or its registered bonds on the immediately
9-15 preceding January 1 and, in addition, a list of stock (or,
9-16 in the case of a domestic corporation, preferred stock) or
9-17 registered bonds transferred from such persons between
9-18 November 1 and January 1 immediately preceding the date of
9-19 the return.
9-20 48-6-32. (Index)
9-21 Willful failure to return any property to the commissioner
9-22 for taxation as required by this article shall be a bar to
9-23 any action upon the property in any court and may be
9-24 pleaded as a complete defense to the action, but the
9-25 holder of the property may at any time pay all taxes,
9-26 accrued interest, and penalties. Payment in full shall
9-27 relieve the holder from the penalty provided in this Code
9-28 section.
9-29 48-6-33. (Index)
9-30 Intangible personal property transferred prior to January
9-31 1 to avoid the tax imposed by this article or to secure a
9-32 reduction in the rate of the tax imposed by this article
9-33 is subject to the tax imposed by this article.
9-34 48-6-34. (Index)
9-35 As soon as practicable after receipt of the returns of
9-36 intangible personal property as required by this article,
9-37 the commissioner shall examine each return and fix the
9-38 value of that property contained in the return which can
9-39 be centrally assessed.
9-40 48-6-35. (Index)
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LC 18 6388
10- 1 (a) The commissioner shall certify the assessments fixed
10- 2 pursuant to Code Section 48-6-34 to the various tax
10- 3 commissioners or tax receivers according to the situs of
10- 4 the property, such certification to be made with respect
10- 5 to all property listed on returns where the property is
10- 6 assessed for at least $5.00 or where the commissioner
10- 7 determines that the final assessment on all property owned
10- 8 in whole or in part by the taxpayer would be for at least
10- 9 $5.00. Each tax commissioner or tax receiver shall record
10-10 the value certified by the commissioner, shall assess all
10-11 property certified but not assessed, and shall cause the
10-12 aggregate assessments so fixed to be entered on a separate
10-13 intangible personal property tax digest of the county.
10-14 (b) At or before the time certification is made to local
10-15 officials, the commissioner shall notify the taxpayer of
10-16 the assessment. The taxpayer shall have 15 days within
10-17 which he may offer objections.
10-18 (c) The commissioner, in the event of an error, may make a
10-19 corrected certification. In no event shall such a
10-20 correction be made after the tax has become delinquent
10-21 under this article.
10-22 48-6-36. (Index)
10-23 Notwithstanding the fact that the assessment of all
10-24 intangible personal property is fixed by the commissioner,
10-25 the tax receiver or tax commissioner shall be entitled for
10-26 his services to his usual commissions as though he himself
10-27 made the assessment.
10-28 48-6-37. (Index)
10-29 The taxes on property imposed by this article at the rates
10-30 fixed in this article shall be collected by the tax
10-31 commissioners or tax collectors, subject to the provisions
10-32 of law as to remuneration of the tax commissioner or tax
10-33 collector and subject to all the remedies provided by law
10-34 for enforcement or collection of real and tangible
10-35 personal property taxes.
10-36 48-6-38. (Index)
10-37 In all applications to restrain or enjoin the collection
10-38 of any tax imposed by this article, the judge, should he
10-39 grant a restraining order or temporary injunction, shall
10-40 require the petitioner to give a good and sufficient bond
10-41 payable to the tax commissioner or tax collector in double
10-42 the amount of the tax the collection of which is sought to
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LC 18 6388
11- 1 be enjoined. The bond shall be approved by the clerk of
11- 2 superior court and shall be conditioned to pay the tax in
11- 3 the event the petitioner does not finally prevail in his
11- 4 effort to resist the payment of the tax. If the petitioner
11- 5 does not finally prevail, the tax commissioner or tax
11- 6 collector shall bring an action on the bond and shall
11- 7 distribute the amount recovered pursuant to Code Sections
11- 8 48-6-39, 48-6-40, and 48-6-41.
11- 9 48-6-39. (Index)
11-10 The tax commissioner or tax collector, on the basis of his
11-11 records and of certificates which shall be supplied by
11-12 each school district, municipality, and other tax district
11-13 in the county, shall distribute at least monthly the
11-14 revenue collected from each owner of intangible personal
11-15 property between the state and the various local tax
11-16 districts in the manner provided in this article. Each
11-17 year the millage rates used in the distributions of
11-18 revenue under this Code section shall be based upon the
11-19 immediately preceding year's millage rate of each
11-20 participating tax authority as provided in this article.
11-21 48-6-40. (Index)
11-22 Revenue derived from taxes on intangible personal property
11-23 shall be divided among the state and all other tax
11-24 jurisdictions and districts including, but not limited to,
11-25 county and municipal districts, which levy or cause to be
11-26 levied for their benefit a property tax on real and
11-27 tangible personal property having the same taxable situs
11-28 as the intangible personal property from which the revenue
11-29 is derived. The distribution shall be made according to
11-30 the proportion that the millage rate levied for the state
11-31 and each other tax jurisdiction or district respectively
11-32 bears to the total millage rate levied for all purposes
11-33 applicable to real and tangible personal property having
11-34 the same taxable situs as the intangible personal property
11-35 on which the intangible tax was collected. The revenue
11-36 distributed to municipalities having independent school
11-37 systems supported by taxes levied by the municipality
11-38 shall be divided between the municipality and the
11-39 independent school system according to the proportion that
11-40 the millage rate levied by the municipality for nonschool
11-41 purposes and the millage rate levied for school purposes
11-42 bear to the total millage rate levied by the municipality
11-43 for all purposes. The tax levied by this article shall be
11-44 deemed to be levied by the participating tax authorities
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12- 1 in the proportion that the millage rate of each
12- 2 participating tax authority bears to the aggregate millage
12- 3 rate of all the participating tax authorities.
12- 4 48-6-41. (Index)
12- 5 In the event any distribution or part of a distribution as
12- 6 provided in this article is adjudged to be invalid for any
12- 7 reason, such distribution or part of a distribution shall
12- 8 be paid into the general fund of the state in the same
12- 9 manner and for the same purposes as provided in this
12-10 article for the state's share of the revenues derived from
12-11 the tax imposed by this article.
12-12 48-6-42. (Index)
12-13 The schedules required by this article to be filed with
12-14 the commissioner shall be subject to hearings and appeals
12-15 in all respects as provided by law for income taxes.
12-16 48-6-43. (Index)
12-17 The intangible personal property tax digest, returns, and
12-18 related records shall be confidential and shall not be
12-19 subject to inspection by any person other than authorized
12-20 personnel of appropriate tax administrators. Nothing in
12-21 this Code section, however, shall prevent any disclosure
12-22 necessary or proper to the collection of any tax in any
12-23 administrative or court proceeding.
12-24 48-6-44. (Index)
12-25 (a) It shall be unlawful for any person willfully to
12-26 violate any provision of this article or willfully to fail
12-27 to do any act required of him by this article.
12-28 (b) Any person who violates subsection (a) of this Code
12-29 section shall be guilty of a misdemeanor.",
12-30 and inserting in its place the following:
"ARTICLE 2
RESERVED".
SECTION 2.
12-31 This Act shall become effective on December 31, 1995.
SECTION 3.
12-32 All laws and parts of laws in conflict with this Act are
12-33 repealed.
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Last Updated on 01/02/97