HB 69 - Intangible tax; depository insti- tutions; local business tax

First Reader Summary

A BILL to amend Article 4 of Chapter 6 of Title 48 of the Official Code of Georgia Annotated, relating to intangible taxation of financial institutions, so as to change certain provisions regarding local business license taxes on depository financial institutions; and for other purposes.

Page Numbers - 1/ 2/ 3/ 4

Code Sections - 48-6-93/ 48-6-93

HB 69                                              LC 18 7753 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 4 of Chapter 6 of Title 48 of the Official 
  1- 2  Code of Georgia Annotated, relating to intangible taxation 
  1- 3  of financial institutions, so as to change certain 
  1- 4  provisions regarding local business license taxes on 
  1- 5  depository financial institutions; to repeal conflicting 
  1- 6  laws; and for other purposes. 
 
  1- 7       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 8                           SECTION 1. 
 
  1- 9  Article 4 of Chapter 6 of Title 48 of the Official Code of 
  1-10  Georgia Annotated, relating to intangible taxation of 
  1-11  financial institutions, is amended by striking Code Section 
  1-12  48-6-93, relating to local business license tax on 
  1-13  depository financial institutions, which reads as follows: 
 
  1-14    "48-6-93. 
 
  1-15    (a) Municipalities and counties may each levy and collect 
  1-16    a business license tax from depository financial 
  1-17    institutions having an office located within their 
  1-18    respective jurisdiction at a rate not to exceed 0.25 
  1-19    percent of the Georgia gross receipts, as defined and 
  1-20    allocated in Code Section 48-6-95 and this Code section, 
  1-21    of said depository financial institutions.  Municipalities 
  1-22    and counties may provide that the minimum annual amount of 
  1-23    such levy upon any depository financial institution shall 
  1-24    be not more than $1,000.00. 
 
  1-25    (b) Reserved. 
 
  1-26    (c) Every depository financial institution subject to the 
  1-27    tax authorized by this Code section shall file a return of 
  1-28    its gross receipts with each applicable jurisdiction 
  1-29    levying such tax by March 1 of the year following the year 
  1-30    in which such gross receipts are measured.  Said return 
  1-31    shall be in the manner and in the form prescribed by the 
  1-32    commissioner based on the allocation method set forth in 
  1-33    subsection (d) of this Code section.  The return shall 
 
 
 
                                 -1- 
 
 
 
  2- 1    provide the information necessary to determine the portion 
  2- 2    of the taxpayer's Georgia gross receipts to be allocated 
  2- 3    to each taxing jurisdiction in which such institution has 
  2- 4    an office.  Each taxing jurisdiction which has enacted a 
  2- 5    business license tax pursuant to subsection (a) of this 
  2- 6    Code section shall assess and collect said tax based upon 
  2- 7    the information provided in the returns. 
 
  2- 8    (d) A depository financial institution's Georgia gross 
  2- 9    receipts shall be allocated among each taxing jurisdiction 
  2-10    in which such institution has an office as of December 31 
  2-11    of the year in which gross receipts are measured, as 
  2-12    follows: 
 
  2-13      (1) Each jurisdiction shall be assigned the gross 
  2-14      receipts attributable to the offices located within such 
  2-15      jurisdiction; and 
 
  2-16      (2) In determining the amount of 'gross receipts' 
  2-17      attributable to each office, 20 percent of the 
  2-18      institution's Georgia gross receipts shall be 
  2-19      attributable to that institution's principal Georgia 
  2-20      office, which for this purpose shall be the Georgia 
  2-21      office to which the greatest amount of deposits by value 
  2-22      are attributable.  The remaining 80 percent of Georgia 
  2-23      gross receipts shall be attributable to the 
  2-24      institution's other Georgia offices, pro rata according 
  2-25      to the number of such offices.  The term 'office' as 
  2-26      used in this Code section means a place of business of a 
  2-27      depository financial institution at which the 
  2-28      institution accepts deposits but shall not include 
  2-29      unmanned automatic teller machines, point-of-sale 
  2-30      terminals, or other similar unmanned electronic 
  2-31      facilities at which deposits may be accepted.  If there 
  2-32      are fewer than five offices in addition to the principal 
  2-33      Georgia office, the amount of gross receipts 
  2-34      attributable to each such office shall be determined by 
  2-35      dividing the Georgia gross receipts by the aggregate 
  2-36      number of such offices. 
 
  2-37    (e) Any tax paid by a depository financial institution 
  2-38    pursuant to this Code section and Code Section 48-6-95 
  2-39    shall be credited dollar for dollar against any state 
  2-40    corporate income tax liability of such institution for the 
  2-41    tax year during which any business and occupation tax 
  2-42    authorized by this Code section is paid.  Such credit 
  2-43    shall be subject to the provisions contained in paragraph 
  2-44    (10) of subsection (b) of Code Section 48-7-21. 
 
 
                                 -2- 
 
 
 
  3- 1    (f) Except as authorized by this Code section, no 
  3- 2    municipality or county shall levy any form of business 
  3- 3    license tax, fee, franchise, or occupation tax on any 
  3- 4    depository financial institution.", 
 
  3- 5  and inserting in its place a new Code Section 48-6-93 to 
  3- 6  read as follows: 
 
  3- 7    "48-6-93. 
 
  3- 8    (a) Municipalities and counties may each levy and collect 
  3- 9    a business license tax from depository financial 
  3-10    institutions having an office located within their 
  3-11    respective jurisdiction at a rate not to exceed 0.25 
  3-12    percent of the Georgia gross receipts, as defined and 
  3-13    allocated in Code Section 48-6-95 and this Code section, 
  3-14    of said depository financial institutions.  Municipalities 
  3-15    and counties may provide that the minimum annual amount of 
  3-16    such levy upon any depository financial institution shall 
  3-17    be not more than $1,000.00. 
 
  3-18    (b) Reserved. 
 
  3-19    (c) Every depository financial institution subject to the 
  3-20    tax authorized by this Code section shall file a return of 
  3-21    its gross receipts with each applicable jurisdiction 
  3-22    levying such tax by March 1 of the year following the year 
  3-23    in which such gross receipts are measured.  Said return 
  3-24    shall be in the manner and in the form prescribed by the 
  3-25    commissioner based on the allocation method set forth in 
  3-26    subsection (d) of this Code section.  The return shall 
  3-27    provide the information necessary to determine the portion 
  3-28    of the taxpayer's Georgia gross receipts to be allocated 
  3-29    to each taxing jurisdiction in which such institution has 
  3-30    an office.  Each taxing jurisdiction which has enacted a 
  3-31    business license tax pursuant to subsection (a) of this 
  3-32    Code section shall assess and collect said tax based upon 
  3-33    the information provided in the returns. 
 
  3-34    (d) A depository financial institution's Georgia gross 
  3-35    receipts shall be allocated among each taxing jurisdiction 
  3-36    in which such institution has an office as of December 31 
  3-37    of the year in which gross receipts are measured, as 
  3-38    follows: 
 
  3-39      (1) Each jurisdiction shall be assigned the gross 
  3-40      receipts attributable to the offices located within such 
  3-41      jurisdiction; and 
 
 
 
 
                                 -3- 
 
 
 
  4- 1      (2) In determining the amount of 'gross receipts' 
  4- 2      attributable to each office, 20 percent of the 
  4- 3      institution's Georgia gross receipts shall be 
  4- 4      attributable to that institution's principal Georgia 
  4- 5      office, which for this purpose shall be the Georgia 
  4- 6      office to which the greatest amount of deposits by value 
  4- 7      are attributable.  The remaining 80 percent of Georgia 
  4- 8      gross receipts shall be attributable to the 
  4- 9      institution's other Georgia offices, pro rata according 
  4-10      to the number of such offices.  The term 'office' as 
  4-11      used in this Code section means a place of business of a 
  4-12      depository financial institution at which the 
  4-13      institution accepts deposits but shall not include 
  4-14      unmanned automatic teller machines, point-of-sale 
  4-15      terminals, or other similar unmanned electronic 
  4-16      facilities at which deposits may be accepted.  If there 
  4-17      are fewer than five offices in addition to the principal 
  4-18      Georgia office, the amount of gross receipts 
  4-19      attributable to each such office shall be determined by 
  4-20      dividing the Georgia gross receipts by the aggregate 
  4-21      number of such offices. 
 
  4-22    (e) Any tax paid by a depository financial institution 
  4-23    pursuant to this Code section and Code Section 48-6-95 
  4-24    shall be credited dollar for dollar against any state 
  4-25    corporate income tax liability of such institution for the 
  4-26    tax year during which any business and occupation tax 
  4-27    authorized by this Code section is paid.  Such credit 
  4-28    shall be subject to the provisions contained in paragraph 
  4-29    (10) of subsection (b) of Code Section 48-7-21. 
 
  4-30    (f) Except as authorized by this Code section, no 
  4-31    municipality or county shall levy any form of business 
  4-32    license tax, fee, franchise, or occupation tax on any 
  4-33    depository financial institution." 
 
  4-34                           SECTION 2. 
 
  4-35  All laws and parts of laws in conflict with this Act are 
  4-36  repealed. 
 
 
 
 
 
 
 
 
 
 
                                 -4-