HB 2 - Income tax; taxable net income; exclude capital gains

First Reader Summary

A BILL to amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes, so as to provide that Georgia taxable net income of an individual taxpayer or a foreign corporation or domestic corporation shall not include income which is attributable directly to a capital gain; and for other purposes.

Page Numbers - 1/ 2

HB 2                                               LC 18 7715 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Chapter 7 of Title 48 of the Official Code of 
  1- 2  Georgia Annotated, relating to income taxes, so as to 
  1- 3  provide that Georgia taxable net income of an individual 
  1- 4  taxpayer or a foreign corporation or domestic corporation 
  1- 5  shall not include income which is attributable directly to a 
  1- 6  capital gain; to provide an effective date; to provide for 
  1- 7  applicability; to repeal conflicting laws; and for other 
  1- 8  purposes. 
 
  1- 9       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-10                           SECTION 1. 
 
  1-11  Chapter 7 of Title 48 of the Official Code of Georgia 
  1-12  Annotated, relating to income taxes, is amended by striking 
  1-13  subsection (e) of Code Section 48-7-27, relating to 
  1-14  computation of taxable net income of individuals, which 
  1-15  reads as follows: 
 
  1-16    "(e) Notwithstanding any other provision of this chapter 
  1-17    to the contrary, Georgia taxable net income shall, if the 
  1-18    taxpayer so elects, be adjusted in an amount equal to the 
  1-19    amount of any full or partial deduction or exclusion from 
  1-20    federal adjusted gross income for federal income tax 
  1-21    purposes with respect to capital gains.", 
 
  1-22  and inserting in its place a new subsection (e) to read as 
  1-23  follows: 
 
  1-24    "(e) Georgia taxable net income of a taxpayer shall not 
  1-25    include any income of such taxpayer which is attributable 
  1-26    directly to a capital gain." 
 
  1-27                           SECTION 2. 
 
  1-28  Said chapter is further amended by adding a new subsection 
  1-29  at the end of Code Section 48-7-31, relating to taxation of 
  1-30  corporations, to be designated subsection (f), to read as 
  1-31  follows: 
 
 
 
 
                                 -1- 
 
 
 
  2- 1    "(f) Georgia taxable net income of a foreign or domestic 
  2- 2    corporation shall not include any income of such 
  2- 3    corporation which is attributable directly to a capital 
  2- 4    gain." 
 
  2- 5                           SECTION 3. 
 
  2- 6  This Act shall become effective on January 1, 1998, and 
  2- 7  shall be applicable to all taxable years beginning on or 
  2- 8  after that date. 
 
  2- 9                           SECTION 4. 
 
  2-10  All laws and parts of laws in conflict with this Act are 
  2-11  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -2-