|
| 
|
|
| HB 8 - Income and sales taxes; amend provisions |
First Reader Summary
A BILL to amend Title 48 of the Official Code of Georgia
Annotated, relating to revenue and taxation, so as to provide for
a gradual reduction in the income tax rate for individuals over a
period of years; to abolish the individual income tax and the
income tax on fiduciaries and partnerships, effective for tax
years beginning on and after January 1, 2002; and for other
purposes.
| House
| Action
| Senate
|
| 1/15/97
| Read 1st Time
|
|
| 1/16/97
| Read 2nd Time
|
|
HB 8 LC 18 7721
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Title 48 of the Official Code of Georgia Annotated,
1- 2 relating to revenue and taxation, so as to provide for a
1- 3 gradual reduction in the income tax rate for individuals
1- 4 over a period of years; to abolish the individual income tax
1- 5 and the income tax on fiduciaries and partnerships,
1- 6 effective for tax years beginning on and after January 1,
1- 7 2002; to provide for the collection of individual income
1- 8 taxes for taxable year 2001; to repeal the provisions
1- 9 relating to a local income tax; to repeal provisions
1-10 relating to setoff debt collection; to repeal laws relating
1-11 to the individual income tax; to repeal certain provisions
1-12 relating to nongame wildlife conservation and wildlife
1-13 habitat acquisition programs; to repeal certain provisions
1-14 relating to liens for taxes; to repeal certain provisions
1-15 relating to the Home Delivered Meals, Transportation
1-16 Services for the Elderly, and Preschool Children with
1-17 Special Needs Fund; to conform other provisions of law; to
1-18 amend other provisions of the Code to change certain
1-19 references; to change certain Georgia income tax references
1-20 to federal income tax references; to provide for increases
1-21 in the rate of tax on the retail purchase, retail sale,
1-22 rental, storage, use, or consumption of certain tangible
1-23 property and on certain services; to provide for
1-24 applicability with respect to building and construction
1-25 materials and to certain services; to provide for
1-26 application of sales and use taxes with respect to certain
1-27 sales of motor fuels; to provide for conforming changes with
1-28 respect to imposition of taxes, collection from dealers,
1-29 disposition of certain excess taxes, compensation of dealers
1-30 for reporting and paying taxes, and payment of taxes by
1-31 certain contractors; to provide for editorial revision; to
1-32 provide for other matters relative to the foregoing; to
1-33 provide for effective dates; to repeal conflicting laws; and
1-34 for other purposes.
1-35 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
-1-
2- 1 SECTION 1.
2- 2 Title 48 of the Official Code of Georgia Annotated, relating
2- 3 to revenue and taxation, is amended by striking in its
2- 4 entirety paragraph (1) of subsection (b) of Code Section
2- 5 48-7-20, relating to the income tax rate for individuals,
2- 6 and inserting in lieu thereof a new paragraph (1) to read as
2- 7 follows:
2- 8 "(b)(1) The tax imposed pursuant to subsection (a) of
2- 9 this Code section shall be computed in accordance with
2-10 the following tables:
2-11 (A) For taxable year 1997:
2-12 SINGLE PERSON
2-13 If Georgia Taxable
2-14 Net Income Is: The Tax Is:
2-15 Not over $750.00 ............. 1%
2-16 Over $750.00 but not over
2-17 $2,250.00 .................... $7.50 plus 2% of amount
2-18 Over $2,250.00 but not
2-19 over $3,750.00 ............... $37.50 plus 3% of
2-20 Over $3,750.00 but not
2-21 over $5,250.00 ............... $82.50 plus 4% of
2-22 Over $5,250.00 but not
2-23 over $7,000.00 ............... $142.50 plus 5% of
2-24 Over $7,000.00 ............... $230.00 plus 6% of
2-25 MARRIED PERSON FILING A SEPARATE RETURN
2-26 If Georgia Taxable
2-27 Net Income Is: The Tax Is:
2-28 Not over $500.00 ............. 1%
2-29 Over $500.00 but not over
2-30 $1,500.00 .................... $5.00 plus 2% of amount
-2-
3- 1 Over $1,500.00 but not
3- 2 over $2,500.00 ............... $25.00 plus 3% of
3- 3 Over $2,500.00 but not
3- 4 over $3,500.00 ............... $55.00 plus 4% of
3- 5 Over $3,500.00 but not
3- 6 over $5,000.00 ............... $95.00 plus 5% of
3- 7 Over $5,000.00 ............... $170.00 plus 6% of
3- 8 HEAD OF HOUSEHOLD AND MARRIED PERSONS
3- 9 FILING A JOINT RETURN
3-10 If Georgia Taxable
3-11 Net Income Is: The Tax Is:
3-12 Not over $1,000.00 .......... 1%
3-13 Over $1,000.00 but not
3-14 over $3,000.00 .............. $10.00 plus 2% of amount
3-15 Over $3,000.00 but not
3-16 over $5,000.00 .............. $50.00 plus 3% of amount
3-17 Over $5,000.00 but not
3-18 over $7,000.00 .............. $110.00 plus 4% of
3-19 Over $7,000.00 but not
3-20 over $10,000.00 ............. $190.00 plus 5% of
3-21 Over $10,000.00 ............. $340.00 plus 6% of
3-22 (B) For taxable year 1998:
3-23 SINGLE PERSON
3-24 If Georgia Taxable
3-25 Net Income Is: The Tax Is:
3-26 Not over $750.00 ............. .8%
3-27 Over $750.00 but not over
3-28 $2,250.00 .................... $7.50 plus 1.6% of
-3-
4- 1 Over $2,250.00 but not
4- 2 over $3,750.00 ............... $37.50 plus 2.4% of
4- 3 Over $3,750.00 but not
4- 4 over $5,250.00 ............... $82.50 plus 3.2% of
4- 5 Over $5,250.00 but not
4- 6 over $7,000.00 ............... $142.50 plus 4% of
4- 7 Over $7,000.00 ............... $230.00 plus 4.8% of
4- 8 MARRIED PERSON FILING A SEPARATE RETURN
4- 9 If Georgia Taxable
4-10 Net Income Is: The Tax Is:
4-11 Not over $500.00 ............. .8%
4-12 Over $500.00 but not over
4-13 $1,500.00 .................... $5.00 plus 1.6% of
4-14 Over $1,500.00 but not
4-15 over $2,500.00 ............... $25.00 plus 2.4% of
4-16 Over $2,500.00 but not
4-17 over $3,500.00 ............... $55.00 plus 3.2% of
4-18 Over $3,500.00 but not
4-19 over $5,000.00 ............... $95.00 plus 4% of
4-20 Over $5,000.00 ............... $170.00 plus 4.8% of
4-21 HEAD OF HOUSEHOLD AND MARRIED PERSONS
4-22 FILING A JOINT RETURN
4-23 If Georgia Taxable
4-24 Net Income Is: The Tax Is:
4-25 Not over $1,000.00 .......... .8%
4-26 Over $1,000.00 but not
4-27 over $3,000.00 .............. $10.00 plus 1.6% of
-4-
5- 1 Over $3,000.00 but not
5- 2 over $5,000.00 .............. $50.00 plus 2.4% of
5- 3 Over $5,000.00 but not
5- 4 over $7,000.00 .............. $110.00 plus 3.2% of
5- 5 Over $7,000.00 but not
5- 6 over $10,000.00 ............. $190.00 plus 4% of
5- 7 Over $10,000.00 ............. $340.00 plus 4.8% of
5- 8 (C) For taxable year 1999:
5- 9 SINGLE PERSON
5-10 If Georgia Taxable
5-11 Net Income Is: The Tax Is:
5-12 Not over $750.00 ............. .6%
5-13 Over $750.00 but not over
5-14 $2,250.00 .................... $7.50 plus 1.2% of
5-15 Over $2,250.00 but not
5-16 over $3,750.00 ............... $37.50 plus 1.8% of
5-17 Over $3,750.00 but not
5-18 over $5,250.00 ............... $82.50 plus 2.4% of
5-19 Over $5,250.00 but not
5-20 over $7,000.00 ............... $142.50 plus 3% of
5-21 Over $7,000.00 ............... $230.00 plus 3.6% of
5-22 MARRIED PERSON FILING A SEPARATE RETURN
5-23 If Georgia Taxable
5-24 Net Income Is: The Tax Is:
5-25 Not over $500.00 ............. .6%
5-26 Over $500.00 but not over
5-27 $1,500.00 .................... $5.00 plus 1.2% of
-5-
6- 1 Over $1,500.00 but not
6- 2 over $2,500.00 ............... $25.00 plus 1.8% of
6- 3 Over $2,500.00 but not
6- 4 over $3,500.00 ............... $55.00 plus 2.4% of
6- 5 Over $3,500.00 but not
6- 6 over $5,000.00 ............... $95.00 plus 3% of
6- 7 Over $5,000.00 ............... $170.00 plus 3.6% of
6- 8 HEAD OF HOUSEHOLD AND MARRIED PERSONS
6- 9 FILING A JOINT RETURN
6-10 If Georgia Taxable
6-11 Net Income Is: The Tax Is:
6-12 Not over $1,000.00 .......... .6%
6-13 Over $1,000.00 but not
6-14 over $3,000.00 .............. $10.00 plus 1.2% of
6-15 Over $3,000.00 but not
6-16 over $5,000.00 .............. $50.00 plus 1.8% of
6-17 Over $5,000.00 but not
6-18 over $7,000.00 .............. $110.00 plus 2.4% of
6-19 Over $7,000.00 but not
6-20 over $10,000.00 ............. $190.00 plus 3% of
6-21 Over $10,000.00 ............. $340.00 plus 3.6% of
6-22 (D) For taxable year 2000:
6-23 SINGLE PERSON
6-24 If Georgia Taxable
6-25 Net Income Is: The Tax Is:
6-26 Not over $750.00 ............. .4%
6-27 Over $750.00 but not over
6-28 $2,250.00 .................... $7.50 plus .6% of
-6-
7- 1 Over $2,250.00 but not
7- 2 over $3,750.00 ............... $37.50 plus 1.2% of
7- 3 Over $3,750.00 but not
7- 4 over $5,250.00 ............... $82.50 plus 1.6% of
7- 5 Over $5,250.00 but not
7- 6 over $7,000.00 ............... $142.50 plus 2% of
7- 7 Over $7,000.00 ............... $230.00 plus 2.4% of
7- 8 MARRIED PERSON FILING A SEPARATE RETURN
7- 9 If Georgia Taxable
7-10 Net Income Is: The Tax Is:
7-11 Not over $500.00 ............. .4%
7-12 Over $500.00 but not over
7-13 $1,500.00 .................... $5.00 plus .8% of
7-14 Over $1,500.00 but not
7-15 over $2,500.00 ............... $25.00 plus 1.2% of
7-16 Over $2,500.00 but not
7-17 over $3,500.00 ............... $55.00 plus 1.6% of
7-18 Over $3,500.00 but not
7-19 over $5,000.00 ............... $95.00 plus 2% of
7-20 Over $5,000.00 ............... $170.00 plus 2.4% of
7-21 HEAD OF HOUSEHOLD AND MARRIED PERSONS
7-22 FILING A JOINT RETURN
7-23 If Georgia Taxable
7-24 Net Income Is: The Tax Is:
7-25 Not over $1,000.00 .......... .4%
7-26 Over $1,000.00 but not
7-27 over $3,000.00 .............. $10.00 plus .8% of
-7-
8- 1 Over $3,000.00 but not
8- 2 over $5,000.00 .............. $50.00 plus 1.2% of
8- 3 Over $5,000.00 but not
8- 4 over $7,000.00 .............. $110.00 plus 1.6% of
8- 5 Over $7,000.00 but not
8- 6 over $10,000.00 ............. $190.00 plus 2% of
8- 7 Over $10,000.00 ............. $340.00 plus 2.4% of
8- 8 (E) For taxable year 2001:
8- 9 SINGLE PERSON
8-10 If Georgia Taxable
8-11 Net Income Is: The Tax Is:
8-12 Not over $750.00 ............. .2%
8-13 Over $750.00 but not over
8-14 $2,250.00 .................... $7.50 plus .4% of
8-15 Over $2,250.00 but not
8-16 over $3,750.00 ............... $37.50 plus .6% of
8-17 Over $3,750.00 but not
8-18 over $5,250.00 ............... $82.50 plus .8% of
8-19 Over $5,250.00 but not
8-20 over $7,000.00 ............... $142.50 plus 1% of
8-21 Over $7,000.00 ............... $230.00 plus 1.2% of
8-22 MARRIED PERSON FILING A SEPARATE RETURN
8-23 If Georgia Taxable
8-24 Net Income Is: The Tax Is:
8-25 Not over $500.00 ............. .2%
8-26 Over $500.00 but not over
8-27 $1,500.00 .................... $5.00 plus .4% of
-8-
9- 1 Over $1,500.00 but not
9- 2 over $2,500.00 ............... $25.00 plus .6% of
9- 3 Over $2,500.00 but not
9- 4 over $3,500.00 ............... $55.00 plus .8% of
9- 5 Over $3,500.00 but not
9- 6 over $5,000.00 ............... $95.00 plus 1% of
9- 7 Over $5,000.00 ............... $170.00 plus 1.2% of
9- 8 HEAD OF HOUSEHOLD AND MARRIED PERSONS
9- 9 FILING A JOINT RETURN
9-10 If Georgia Taxable
9-11 Net Income Is: The Tax Is:
9-12 Not over $1,000.00 .......... .2%
9-13 Over $1,000.00 but not
9-14 over $3,000.00 .............. $10.00 plus .4% of
9-15 Over $3,000.00 but not
9-16 over $5,000.00 .............. $50.00 plus .6% of
9-17 Over $5,000.00 but not
9-18 over $7,000.00 .............. $110.00 plus .8% of
9-19 Over $7,000.00 but not
9-20 over $10,000.00 ............. $190.00 plus 1% of
9-21 Over $10,000.00 ............. $340.00 plus 1.2% of
9-22 (F) For taxable year 2002 and thereafter, there shall
9-23 not be an individual income tax and no individual
9-24 returns are required."
9-25 SECTION 2.
9-26 Said title is further amended by adding at the beginning of
9-27 Article 5 of Chapter 7, relating to current income tax
9-28 payment, a new Code Section 48-7-99 to read as follows:
-9-
10- 1 "48-7-99.
10- 2 The provisions of this article relating to the withholding
10- 3 of taxes or estimated taxes applicable to individuals
10- 4 shall not apply to taxable years beginning on or after
10- 5 January 1, 2002."
10- 6 SECTION 1.
10- 7 Said title is further amended by striking in its entirety
10- 8 Chapter 7, relating to income taxes, and inserting in lieu
10- 9 thereof a new Chapter 7 to read as follows:
10-10 48-7-1.
10-11 Effective January 1, 2002, there shall not be an
10-12 individual income tax or income tax on fiduciaries or
10-13 partnerships in this state for taxable years beginning on
10-14 or after January 1, 2002.
10-15 48-7-2.
10-16 As used in this chapter, the term:
10-17 (1) 'Corporation' includes, but is not limited to, all
10-18 associations, professional associations organized
10-19 pursuant to Chapter 10 of Title 14, and insurance
10-20 companies.
10-21 (2) 'Deficiency' means the amount by which the tax
10-22 imposed by this chapter or any prior law exceeds the
10-23 amount shown as the tax due by the corporation upon its
10-24 return or, if no amount is shown as the tax due by a
10-25 corporation upon its return or if no return is made by
10-26 the corporation, the amount determined by the
10-27 commissioner to be the correct amount of the tax.
10-28 (3) 'Fiscal year' means an accounting period of 12
10-29 months ending on the last day of any month other than
10-30 December. In the case of any taxpayer who has elected a
10-31 year consisting of 52 to 53 weeks for federal income tax
10-32 purposes, the term means the period so elected.
10-33 (4) 'Income tax day' means December 31 of each calendar
10-34 year.
10-35 (5) 'Paid,' for the purpose of the deductions under this
10-36 chapter, means 'paid or accrued' or 'paid or incurred.'
10-37 The terms 'paid or accrued,' 'paid or incurred,' and
-10-
11- 1 'incurred' shall be construed according to the method of
11- 2 accounting upon the basis of which the net income is
11- 3 computed under this chapter.
11- 4 (6) 'Received,' for the purpose of the computation of
11- 5 the net income under this chapter, means 'received or
11- 6 accrued.' The term 'received or accrued' shall be
11- 7 construed according to the method of accounting upon the
11- 8 basis of which the net income is computed under this
11- 9 chapter.
11-10 (7) 'Taxable year' means the calendar year or the fiscal
11-11 year ending during the calendar year upon the basis of
11-12 which the net income is computed under this chapter.
11-13 (8) 'Taxpayer' means a corporation.
11-14 48-7-3.
11-15 (a) It shall be unlawful for any person who is required
11-16 under this chapter to pay any tax, make any return, keep
11-17 any records, supply any information, or exhibit any books
11-18 or records for the purpose of computation, assessment, or
11-19 collection of any tax imposed by this chapter to fail to:
11-20 (1) Pay the tax;
11-21 (2) Make the return;
11-22 (3) Keep the records; or
11-23 (4) When requested to do so by the commissioner:
11-24 (A) Supply the information; or
11-25 (B) Exhibit the books or records.
11-26 (b) In addition to other penalties provided by law, any
11-27 person who violates subsection (a) of this Code section
11-28 shall be guilty of a misdemeanor.
11-29 48-7-4.
11-30 (a) With respect to any matter arising under this chapter,
11-31 it shall be unlawful for any person willfully to aid or
11-32 assist in, or procure, counsel, or advise the preparation
11-33 or presentation of, a false or fraudulent return,
11-34 affidavit, claim, or document, whether or not the falsity
11-35 or fraud is with the knowledge or consent of the person
11-36 authorized or required to present the return, affidavit,
11-37 claim, or document.
-11-
12- 1 (b) Any person who violates subsection (a) of this Code
12- 2 section shall be guilty of a misdemeanor and, upon
12- 3 conviction thereof, shall be fined not more than $1,000.00
12- 4 or imprisoned for not more than six months, or both, and
12- 5 shall be required to pay the costs of prosecution.
12- 6 48-7-5.
12- 7 (a) It shall be unlawful for any person, with intent to
12- 8 evade the income tax imposed by this chapter, willfully to
12- 9 advise the preparation or presentation of a return with
12-10 intentional disregard of rules and regulations of the
12-11 commissioner.
12-12 (b) Any person who violates subsection (a) of this Code
12-13 section shall be guilty of a misdemeanor and, upon
12-14 conviction thereof, shall be fined not less than $100.00
12-15 nor more than $500.00 or imprisoned for not more than six
12-16 months, or both.
12-17 48-7-6.
12-18 Any person who willfully evades or defeats or willfully
12-19 attempts to evade or defeat, in any manner, any income
12-20 tax, penalty, interest, or other amount in excess of
12-21 $3,000.00 imposed under this chapter, including but not
12-22 limited to failure to file a return or report, shall, in
12-23 addition to any other criminal or civil penalties provided
12-24 by law, be guilty of a felony and, upon conviction
12-25 thereof, shall be fined not more than $500,000.00 in the
12-26 case of a corporation or imprisoned not less than one nor
12-27 more than five years, or both. Conduct proscribed by this
12-28 Code section shall be subject to punishment under this
12-29 Code section notwithstanding the applicability to such
12-30 conduct of any other provision of law.
12-31 48-7-7.
12-32 (a) Every domestic corporation and every foreign
12-33 corporation shall pay annually an income tax equivalent to
12-34 6 percent of its Georgia taxable net income. Georgia
12-35 taxable net income of a corporation shall be the
12-36 corporation's taxable income from property owned or from
12-37 business done in this state. A corporation's taxable
12-38 income from property owned or from business done in this
12-39 state shall consist of the corporation's taxable income as
12-40 defined in the Internal Revenue Code of 1986, with the
12-41 adjustments provided for in subsection (b) of this Code
-12-
13- 1 section and allocated and apportioned as provided in Code
13- 2 Section 48-7-31.
13- 3 (b)(1)(A) When interest income is derived from
13- 4 obligations of any state or political subdivision
13- 5 except this state and political subdivisions of this
13- 6 state, the interest income shall be added to taxable
13- 7 income to the extent that the interest income is not
13- 8 included in gross income for federal income tax
13- 9 purposes. Interest or dividends on obligations of any
13-10 authority, commission, instrumentality, territory, or
13-11 possession of the United States which by the laws of
13-12 the United States are exempt from federal income tax
13-13 but not from state income tax shall also be added to
13-14 taxable income.
13-15 (B) There shall be subtracted from taxable income
13-16 interest or dividends on obligations of the United
13-17 States and its territories and possessions or of any
13-18 authority, commission, or instrumentality of the
13-19 United States to the extent such interest or dividends
13-20 are includable in gross income for federal income tax
13-21 purposes but exempt from state income taxes under the
13-22 laws of the United States. There shall also be
13-23 subtracted from taxable income any income derived from
13-24 the authorized activities of a domestic international
13-25 banking facility operating pursuant to the provisions
13-26 of Article 5A of Chapter 1 of Title 7, the 'Domestic
13-27 International Banking Facility Act,' and any income
13-28 arising from the conduct of a banking business with
13-29 persons or entities located outside the United States,
13-30 its territories, or possessions. Any amount
13-31 subtracted pursuant to this subparagraph shall be
13-32 reduced by any expenses directly attributable to the
13-33 production of the interest or dividend income.
13-34 (2) There shall be added to taxable income any taxes on,
13-35 or measured by, net income or net profits paid or
13-36 accrued within the taxable year imposed by the authority
13-37 of the United States or any foreign country, by any
13-38 state except the State of Georgia, or by any territory,
13-39 county, school district, municipality, or other tax
13-40 subdivision of any state, territory, or foreign country
13-41 to the extent such taxes are deducted in determining
13-42 federal taxable income.
13-43 (3) No portion of any deductions or losses which
13-44 occurred in a year in which the taxpayer was not subject
-13-
14- 1 to taxation in this state including, but not limited to,
14- 2 net operating losses may be deducted in any tax year.
14- 3 When the federal adjusted gross income or net income of
14- 4 a corporation includes such deductions or losses, an
14- 5 adjustment deleting them shall be made under rules
14- 6 established by the commissioner. The provisions of this
14- 7 subsection shall not prohibit the carry-over of any
14- 8 deductions or losses including, but not limited to, net
14- 9 operating losses of any taxpayer which were incurred in
14-10 a year or years in which the taxpayer was subject to
14-11 methods of taxation in this state other than the
14-12 corporate income tax.
14-13 (4) Income, losses, and deductions previously used in
14-14 computing Georgia taxable income shall not again be used
14-15 in computing Georgia taxable income. The commissioner
14-16 shall provide for needed adjustments by regulation.
14-17 (5) When on the sale or exchange of real or tangible
14-18 personal property located in this state gain or loss is
14-19 not recognized because the taxpayer receives or
14-20 purchases similar property, the nonrecognition shall be
14-21 allowed only when the property is replaced with property
14-22 located in this state.
14-23 (6) This article shall not be construed to repeal any
14-24 tax exemptions contained in other laws of this state not
14-25 referred to in this article. Those exemptions and the
14-26 exemptions provided for by federal law and treaty shall
14-27 be deducted on forms provided by the commissioner.
14-28 (7) All elections made by corporate taxpayers under the
14-29 Internal Revenue Code of 1954 or the Internal Revenue
14-30 Code of 1986 shall also apply under this article except
14-31 elections involving consolidated corporate returns and
14-32 Subchapter 'S' elections which shall be treated as
14-33 follows:
14-34 (A)(i) If two or more corporations file federal
14-35 income tax returns on a consolidated basis and all
14-36 of the corporations derive all of their income from
14-37 sources within this state, the corporations must
14-38 file consolidated returns for Georgia income tax
14-39 purposes. Affiliated corporations which file a
14-40 consolidated federal income tax return but which
14-41 derive income from sources outside this state must
14-42 file separate income tax returns with this state
14-43 unless they have prior approval or have been
-14-
15- 1 requested to file a consolidated return by the
15- 2 department.
15- 3 (ii) No depository financial institution shall be
15- 4 deprived of the benefit of any exemption, deduction,
15- 5 or credit authorized by this title as a consequence
15- 6 of its election to file otherwise lawful
15- 7 consolidated returns with its parent organization or
15- 8 any corporate subsidiaries with respect to any state
15- 9 or local tax levied against such depository
15-10 financial institution as a result of this title. As
15-11 used in this division, the term:
15-12 (I) 'Bank' means any financial institution
15-13 chartered under the laws of this state or under
15-14 the laws of the United States and domiciled in
15-15 this state which is authorized to receive deposits
15-16 in this state and which has a corporate structure
15-17 authorizing the issuance of capital stock.
15-18 (II) 'Depository financial institution' means a
15-19 'bank' or a 'savings and loan association.'
15-20 (III) 'Savings and loan association' means any
15-21 financial institution, other than a credit union,
15-22 chartered under the laws of this state or under
15-23 the laws of the United States and domiciled in
15-24 this state which is authorized to receive deposits
15-25 in this state and which has a mutual corporate
15-26 form;
15-27 (B) Subchapter 'S' elections apply only if all
15-28 stockholders are subject to tax in this state on their
15-29 portion of the corporate income. If all nonresident
15-30 stockholders pay the Georgia income tax on their
15-31 portion of the corporate income, the election shall be
15-32 allowed.
15-33 (8) There shall be subtracted from taxable income
15-34 dividends received by:
15-35 (A) A corporation from sources outside the United
15-36 States as defined in the Internal Revenue Code of
15-37 1986. For purposes of this subparagraph, dividends
15-38 received by a corporation from sources outside of the
15-39 United States shall include amounts treated as a
15-40 dividend and income deemed to have been received under
15-41 provisions of the Internal Revenue Code of 1986 by
15-42 such corporation if such amounts could have been
-15-
16- 1 subtracted from taxable income under this paragraph,
16- 2 had such amounts actually been received. Amounts to
16- 3 be subtracted under this subparagraph shall include
16- 4 the following, as defined by the Internal Revenue Code
16- 5 of 1986:
16- 6 (i) Qualified electing fund income;
16- 7 (ii) Subpart F income; and
16- 8 (iii) Income attributable to an increase in United
16- 9 States property by a controlled foreign corporation.
16-10 The amount subtracted under this subparagraph shall be
16-11 reduced by any expenses directly attributable to the
16-12 dividend income; and
16-13 (B) Corporations from affiliated corporations within
16-14 the United States, when the corporation receiving the
16-15 dividends is engaged in business in this state and is
16-16 subject to the payment of taxes under the income tax
16-17 laws of this state, to the extent that the dividends
16-18 have been included in net income under this Code
16-19 section. Dividends from affiliates shall be reduced
16-20 by any expenses directly attributable to the dividend
16-21 income.
16-22 (9) Where a corporation's salary and wage deductions are
16-23 reduced in computing federal taxable income because the
16-24 corporation has taken a federal jobs tax credit which
16-25 required, as a condition to using the federal jobs tax
16-26 credit, the elimination of salary and wage deductions,
16-27 the eliminated salary and wage deductions shall be
16-28 subtracted from taxable income.
16-29 (10) There shall be a dollar-for-dollar credit against
16-30 the state income tax liability of depository financial
16-31 institutions which shall be equal to the amount of
16-32 taxes, if any, paid by such taxpayers pursuant to Code
16-33 Section 48-6-93 and Code Section 48-6-95. If the
16-34 liability of any such institutions under the taxes
16-35 authorized by Code Section 48-6-93 and Code Section
16-36 48-6-95 exceeds the corporate income tax liability of
16-37 such institution for any year, the amount of any unused
16-38 credit under this Code section may be credited over a
16-39 period of five years from the tax year in which the
16-40 unused credit arose. If the assets of an institution
16-41 are acquired by another institution in a transaction
16-42 described in Section 381(a) of the Internal Revenue Code
-16-
17- 1 of 1986, the acquiring institution shall succeed to and
17- 2 take into account any unused credit of the distributor
17- 3 or transferor institution.
17- 4 (11) There shall be subtracted from taxable income a
17- 5 portion of qualified payments to minority
17- 6 subcontractors, as provided in Code Section 48-7-14.
17- 7 (12) Georgia taxable income shall, if the taxpayer so
17- 8 elects, be adjusted with respect to federal depreciation
17- 9 deductions as provided in Code Section 48-7-8.
17-10 48-7-8.
17-11 (a) With respect to property placed in service in taxable
17-12 years ending prior to the effective date of this Code
17-13 section, a taxpayer shall in such taxpayer's return for
17-14 the first taxable year ending on or after January 1, 1987,
17-15 elect to:
17-16 (1) Continue to depreciate or otherwise recover the cost
17-17 of such property according to the same method used for
17-18 Georgia income tax purposes for the taxable year in
17-19 which the property was placed in service; or
17-20 (2) Depreciate or otherwise recover the cost of such
17-21 property according to the method used for federal income
17-22 tax purposes for the taxable year in which the property
17-23 was placed in service.
17-24 The election required by this subsection shall be made for
17-25 a taxpayer's first taxable year ending on or after January
17-26 1, 1987, in such manner as may be specified by the
17-27 commissioner. If a return for such a taxable year has been
17-28 filed without such an election prior to or within 90 days
17-29 after the effective date of this Code section, the
17-30 taxpayer may file an amended return containing such an
17-31 election.
17-32 (b) The election provided for in subsection (a) of this
17-33 Code section shall apply to all property of the taxpayer
17-34 uniformly and shall be irrevocable and applicable to all
17-35 subsequent taxable years. Except as otherwise provided in
17-36 the last sentence of subsection (a) of this Code section,
17-37 if no such election is made, the taxpayer shall be deemed
17-38 to have elected the option afforded by paragraph (2) of
17-39 subsection (a) of this Code section. The General Assembly
17-40 recognizes and intends that if a taxpayer elects the
17-41 option afforded by paragraph (2) of subsection (a) of this
17-42 Code section then in certain cases the taxpayer may never
-17-
18- 1 fully depreciate or recover the cost of certain property
18- 2 for Georgia income tax purposes and in certain cases the
18- 3 taxpayer may be allowed to depreciate or recover more than
18- 4 the full cost of certain property for Georgia income tax
18- 5 purposes. Taxpayers electing the option afforded by
18- 6 paragraph (1) of subsection (a) of this Code section shall
18- 7 in determining Georgia taxable income make such
18- 8 adjustments to federal taxable income as are required to
18- 9 reflect the effect of such election. Any such election
18-10 shall apply both to determination of deductions for
18-11 depreciation or cost recovery of affected property and
18-12 also to determination of gain or loss on the sale or other
18-13 disposition of such property. The commissioner shall
18-14 specify the manner in which such adjustments shall be
18-15 made.
18-16 48-7-9.
18-17 (a) The tax imposed by this chapter shall apply to the
18-18 entire net income, as defined in this article, received by
18-19 every foreign or domestic corporation owning property or
18-20 doing business within this state. A corporation shall be
18-21 deemed to be doing business within this state if it
18-22 engages within this state in any activities or
18-23 transactions for the purpose of financial profit or gain
18-24 whether or not:
18-25 (1) The corporation qualifies to do business in this
18-26 state;
18-27 (2) The corporation maintains an office or place of
18-28 doing business within this state; or
18-29 (3) Any such activity or transaction is connected with
18-30 interstate or foreign commerce.
18-31 (b)(1) If the entire business income of the corporation
18-32 is derived from property owned or business done in this
18-33 state, the tax shall be imposed on the entire business
18-34 income.
18-35 (2) If the business income of the corporation is derived
18-36 in part from property owned or business done in this
18-37 state and in part from property owned or business done
18-38 outside this state, the tax shall be imposed only on
18-39 that portion of the business income which is reasonably
18-40 attributable to the property owned and business done
18-41 within this state, such portion to be determined as
-18-
19- 1 provided in subsections (c) and (d) of this Code
19- 2 section.
19- 3 (c)(1) Interest received on bonds held for investment
19- 4 and income received from other intangible property held
19- 5 for investment are not subject to apportionment. All
19- 6 expenses connected with such investment income shall be
19- 7 applied against the investment income. The net
19- 8 investment income from intangible property shall be
19- 9 allocated to this state if the situs of the corporation
19-10 is in this state or if the intangible property was
19-11 acquired as income from property held in this state or
19-12 as a result of business done in this state.
19-13 (2) Rentals received from real estate held purely for
19-14 investment purposes and not used in the operation of any
19-15 business are not subject to apportionment. All expenses
19-16 connected with such investment income shall be applied
19-17 against the investment income. The net investment income
19-18 from tangible property located in this state shall be
19-19 allocated to this state.
19-20 (3) Gains from the sale of tangible or intangible
19-21 property not held, owned, or used in connection with the
19-22 trade or business of the corporation nor held for sale
19-23 in the regular course of business shall be allocated to
19-24 this state if the property sold is real or tangible
19-25 personal property situated in this state or intangible
19-26 property having an actual situs or a business situs
19-27 within this state. Otherwise, the gains shall not be
19-28 allocated to this state.
19-29 (d) Net income of the classes described in subsection (c)
19-30 of this Code section having been separately allocated and
19-31 deducted, the remainder of the net business income shall
19-32 be apportioned as follows:
19-33 (1) Reserved;
19-34 (2) Where the net business income of the corporation is
19-35 derived principally from the manufacture, production, or
19-36 sale of tangible personal property, the portion of the
19-37 net income therefrom attributable to property owned or
19-38 business done within this state shall be taken to be the
19-39 portion arrived at by application of the following
19-40 formula:
19-41 (A) Property factor. The property factor is a
19-42 fraction, the numerator of which is the average value
-19-
20- 1 of the taxpayer's real and tangible personal property
20- 2 owned or rented and used in this state during the tax
20- 3 period and the denominator of which is the average
20- 4 value of all the taxpayer's real and tangible personal
20- 5 property owned or rented and used during the tax
20- 6 period. Property owned by the taxpayer is valued at
20- 7 its original cost. Property rented by the taxpayer is
20- 8 valued at eight times the net annual rental rate. Net
20- 9 annual rental rate is the annual rental rate paid by
20-10 the taxpayer less any annual rental rate received by
20-11 the taxpayer from subrentals. The average value of
20-12 property shall be determined by averaging the values
20-13 at the beginning and end of the tax period, except
20-14 that the commissioner may require the averaging of
20-15 monthly values during the tax period if such averaging
20-16 is reasonably required to reflect properly the average
20-17 value of the taxpayer's property;
20-18 (B) Payroll factor. The payroll factor is a fraction,
20-19 the numerator of which is the total amount paid in
20-20 this state during the tax period by the taxpayer for
20-21 compensation and the denominator of which is the total
20-22 compensation paid everywhere during the tax period.
20-23 The term 'compensation' means wages, salaries,
20-24 commissions, and any other form of remuneration paid
20-25 to employees for personal services. Payments made to
20-26 an independent contractor or any other person not
20-27 properly classified as an employee are excluded.
20-28 Compensation is paid in this state if:
20-29 (i) The employee's service is performed entirely
20-30 within this state;
20-31 (ii) The employee's service is performed both within
20-32 and outside this state and the service performed
20-33 outside this state is incidental to the employee's
20-34 service within this state; or
20-35 (iii) Some of the service is performed in this state
20-36 and either the base of operations or the place from
20-37 which the service is directed or controlled is in
20-38 this state or the base of operations or the place
20-39 from which the service is directed or controlled is
20-40 not in any state in which some part of the service
20-41 is performed but the employee's residence is in this
20-42 state;
-20-
21- 1 (C) Gross receipts factor. The gross receipts factor
21- 2 is a fraction, the numerator of which is the total
21- 3 gross receipts from business done within this state
21- 4 during the tax period and the denominator of which is
21- 5 the total gross receipts from business done everywhere
21- 6 during the tax period. For the purposes of this
21- 7 subparagraph, receipts shall be deemed to have been
21- 8 derived from business done within this state only if
21- 9 the receipts are received from products shipped to
21-10 customers in this state or products delivered within
21-11 this state to customers. In determining the gross
21-12 receipts within this state, receipts from sales
21-13 negotiated or effected through offices of the taxpayer
21-14 outside this state and delivered from storage in this
21-15 state to customers outside this state shall be
21-16 excluded; and
21-17 (D) Apportionment formula. The property factor, the
21-18 payroll factor, and the gross receipts factor shall be
21-19 separately determined and an apportionment fraction
21-20 shall be calculated using the following formula:
21-21 (i) The property factor shall represent 25 percent
21-22 of the fraction;
21-23 (ii) The payroll factor shall represent 25 percent
21-24 of the fraction; and
21-25 (iii) The gross receipts factor shall represent 50
21-26 percent of the fraction.
21-27 The net income of the corporation shall be apportioned
21-28 to this state according to such fraction;
21-29 (3) Except as otherwise provided in paragraph (3.1) of
21-30 this subsection, where the net business income is
21-31 derived principally from business other than the
21-32 manufacture, production, or sale of tangible personal
21-33 property, the net business income of the corporation
21-34 shall be arrived at by application of the following
21-35 three factor formula:
21-36 (A) Property factor. The property factor is a
21-37 fraction, the numerator of which is the average value
21-38 of the taxpayer's real and tangible personal property
21-39 owned or rented and used in this state during the tax
21-40 period and the denominator of which is the average
21-41 value of all the taxpayer's real and tangible personal
21-42 property owned or rented and used during the tax
-21-
22- 1 period. Property owned by the taxpayer is valued at
22- 2 its original cost. Property rented by the taxpayer is
22- 3 valued at eight times the net annual rental rate. Net
22- 4 annual rental rate is the annual rental rate paid by
22- 5 the taxpayer less any annual rental rate received by
22- 6 the taxpayer from subrentals. The average value of
22- 7 property shall be determined by averaging the values
22- 8 at the beginning and end of the tax period, except
22- 9 that the commissioner may require the averaging of
22-10 monthly values during the tax period if such averaging
22-11 is reasonably required to reflect properly the average
22-12 value of the taxpayer's property;
22-13 (B) Payroll factor. The payroll factor is a fraction,
22-14 the numerator of which is the total amount paid in
22-15 this state during the tax period by the taxpayer for
22-16 compensation and the denominator of which is the total
22-17 compensation paid everywhere during the tax period.
22-18 The term 'compensation' means wages, salaries,
22-19 commissions, and any other form of remuneration paid
22-20 to employees for personal services. Payments made to
22-21 an independent contractor or any other person not
22-22 properly classified as an employee are excluded.
22-23 Compensation is paid in this state if:
22-24 (i) The employee's service is performed entirely
22-25 within this state;
22-26 (ii) The employee's service is performed both within
22-27 and outside this state and the service performed
22-28 outside this state is incidental to the employee's
22-29 service within this state; or
22-30 (iii) Some of the service is performed in this state
22-31 and either the base of operations or the place from
22-32 which the service is directed or controlled is in
22-33 this state or the base of operations or the place
22-34 from which the service is directed or controlled is
22-35 not in any state in which some part of the service
22-36 is performed but the employee's residence is in this
22-37 state;
22-38 (C) Gross receipts factor. The gross receipts factor
22-39 is a fraction, the numerator of which is the total
22-40 gross receipts from business done within this state
22-41 during the tax period and the denominator of which is
22-42 the total gross receipts from business done everywhere
22-43 during the tax period. Gross receipts are in this
-22-
23- 1 state if the receipts are derived from customers
23- 2 within this state or if the receipts are otherwise
23- 3 attributable to this state's marketplace;
23- 4 (D) The property factor, payroll factor, and the gross
23- 5 receipts factor shall be separately determined and an
23- 6 apportionment fraction shall be calculated using the
23- 7 following formula:
23- 8 (i) The property factor shall represent 25 percent
23- 9 of the fraction;
23-10 (ii) The payroll factor shall represent 25 percent
23-11 of the fraction; and
23-12 (iii) The gross receipts factor shall represent 50
23-13 percent of the fraction.
23-14 The net income of the corporation shall be apportioned
23-15 to this state according to such fraction; and
23-16 (E) If the allocation and apportionment provisions
23-17 provided for in this paragraph do not fairly represent
23-18 the extent of the taxpayer's business activity in this
23-19 state, the taxpayer may petition the commissioner for,
23-20 or the commissioner may by regulation require, with
23-21 respect to all or any part of the taxpayer's business
23-22 activity, if reasonable:
23-23 (i) Separate accounting;
23-24 (ii) The exclusion of any one or more of the
23-25 factors;
23-26 (iii) The inclusion of one or more additional
23-27 factors that will fairly represent the taxpayer's
23-28 business activity within this state; or
23-29 (iv) The employment of any other method to
23-30 effectuate an equitable allocation and apportionment
23-31 of the taxpayer's income.
23-32 The denial of a petition under this paragraph shall be
23-33 appealable pursuant to either Code Section 48-2-59 or
23-34 50-13-12;
23-35 (3.1)(A) Except as otherwise provided in this
23-36 paragraph, all terms used in this paragraph shall have
23-37 the same meaning as such terms are defined in 49
23-38 U.S.C. Section 1301 and the United States Department
23-39 of Transportation's Uniform System of Accounts and
-23-
24- 1 Reports for Large Certificated Air Carriers, 14 C.F.R.
24- 2 Part 241, as now or hereafter amended.
24- 3 (B) Where the net business income of the corporation
24- 4 is derived principally from transporting passengers or
24- 5 cargo in revenue flight, the portion of the net income
24- 6 therefrom attributable to property owned or business
24- 7 done within this state shall be taken to be the
24- 8 portion arrived at by application of the following
24- 9 three factor formula:
24-10 (i) Revenue air miles factor. The revenue air miles
24-11 factor is a fraction, the numerator of which shall
24-12 be equal to the total, for each flight stage which
24-13 originates or terminates in this state, of revenue
24-14 passenger miles by aircraft type flown in this state
24-15 and revenue cargo ton miles by aircraft type flown
24-16 in this state and the denominator of which shall be
24-17 equal to the total, for all flight stages flown
24-18 everywhere, of total revenue passenger miles by
24-19 aircraft type and total revenue cargo ton miles by
24-20 aircraft type;
24-21 (ii) Tons handled factor. The tons handled factor is
24-22 a fraction, the numerator of which shall be equal to
24-23 the total of revenue passenger tons by aircraft type
24-24 handled in this state and revenue cargo tons by
24-25 aircraft type handled in this state and the
24-26 denominator of which shall be equal to the total of
24-27 revenue passenger tons by aircraft type flown
24-28 everywhere and revenue cargo tons by aircraft type
24-29 flown everywhere. For purposes of this division,
24-30 the term 'handled' means the product of 60 percent
24-31 multiplied by the revenue passenger tons flown on
24-32 each flight stage which originates in this state or
24-33 60 percent multiplied by the revenue cargo tons
24-34 flown on each flight stage which originates in this
24-35 state;
24-36 (iii) Originating revenue factor. The originating
24-37 revenue factor is a fraction, the numerator of which
24-38 shall be equal to the total of passenger and cargo
24-39 revenue by aircraft type which is attributable to
24-40 this state and the denominator of which shall be the
24-41 total of passenger and cargo revenue by aircraft
24-42 type everywhere. For purposes of this division,
24-43 passenger or cargo revenue which is attributable to
24-44 this state shall be equal to the product of
-24-
25- 1 passenger or cargo revenue everywhere by aircraft
25- 2 type multiplied by the ratio of revenue passenger
25- 3 miles or revenue cargo ton miles in this state to
25- 4 total revenue passenger miles everywhere or total
25- 5 revenue cargo ton miles everywhere for each aircraft
25- 6 type as separately determined in division (i) of
25- 7 this subparagraph. If records of total passenger
25- 8 revenue everywhere by aircraft type or total cargo
25- 9 revenue everywhere by aircraft type are not
25-10 maintained, then for purposes of this division,
25-11 total passenger revenue everywhere for all aircraft
25-12 types or total cargo revenue everywhere for all
25-13 aircraft types shall be allocated to each aircraft
25-14 type based on the ratio of total revenue passenger
25-15 miles everywhere for that aircraft type to all
25-16 aircraft types or total revenue cargo ton miles
25-17 everywhere for that aircraft type to all aircraft
25-18 types;
25-19 (iv) The revenue air miles factor, the tons handled
25-20 factor, and the originating revenue factor shall be
25-21 separately determined and an apportionment fraction
25-22 shall be calculated using the following formula:
25-23 (I) The revenue air miles factor shall represent
25-24 25 percent of the fraction;
25-25 (II) The tons handled factor shall represent 25
25-26 percent of the fraction; and
25-27 (III) The originating revenue factor shall
25-28 represent 50 percent of the fraction.
25-29 The net income of the corporation shall be
25-30 apportioned to this state according to such average
25-31 fraction; and
25-32 (4) For the purposes of this subsection, the term 'sale'
25-33 shall include, but not be limited to, an exchange, and
25-34 the term 'manufacture' shall include, but not be limited
25-35 to, the extraction and recovery of natural resources and
25-36 all processes of fabricating and curing.
25-37 (e) The net income of a domestic or foreign corporation
25-38 which is a subsidiary of another corporation or which is
25-39 closely affiliated with another corporation by stock
25-40 ownership shall be determined by eliminating all payments
25-41 to the parent corporation or affiliated corporation in
25-42 excess of fair value and by including fair compensation to
-25-
26- 1 the domestic business corporation for its commodities sold
26- 2 to or services performed for the parent corporation or
26- 3 affiliated corporation. For the purposes of determining
26- 4 net income as provided in this subsection, the
26- 5 commissioner may equitably determine the net income by
26- 6 reasonable rules of apportionment of the combined income
26- 7 of the subsidiary, its parent, and affiliates, or any
26- 8 combination of the subsidiary, its parent, and any one or
26- 9 more of its affiliates.
26-10 48-7-10.
26-11 (a) When the business of any corporation engaged in the
26-12 operation of a railroad, express service, telephone or
26-13 telegraph business, or other form of public service is
26-14 partly within and partly outside the state, the net income
26-15 of the corporation for the purpose of this chapter shall
26-16 be that amount ascertained by apportioning to the state
26-17 the sum of the net income of the corporation including,
26-18 but not limited to, dividend income that may legally be
26-19 taxed by the state (exclusive of income from tax-exempt
26-20 securities and without any deduction for federal and state
26-21 income taxes), as shown by the corporation's records kept
26-22 in accordance with the standard classification of accounts
26-23 prescribed by the Interstate Commerce Commission when the
26-24 standard classification of accounts includes in net income
26-25 rents from all sources; and when the standard
26-26 classification does not include all rents, then such rents
26-27 shall be included in net income in the proportion that the
26-28 total gross operating revenues from business done wholly
26-29 within the state plus the equal mileage proportion within
26-30 the state of all gross operating revenues from interstate
26-31 business of the company, wherever done, bear to the total
26-32 gross operating revenues from all business done by the
26-33 company. If any such corporation keeps its records of
26-34 operating revenues and operating expenses on a state basis
26-35 in accordance with the standard classification of accounts
26-36 prescribed by the Interstate Commerce Commission and in a
26-37 manner which includes in net income for the state the
26-38 effect of all intrastate and interstate business
26-39 applicable to the state, the state records may be used by
26-40 the taxpayer under the supervision of the commissioner in
26-41 reporting the net taxable income within the state.
26-42 (b) All other corporations engaged in the business of
26-43 operating a railroad, express service, telephone or
26-44 telegraph business, or other form of public service,
-26-
27- 1 whether or not the corporation is required to make reports
27- 2 to the Interstate Commerce Commission, shall keep records
27- 3 according to the standard classifications of accounting of
27- 4 the Interstate Commerce Commission. The net income of the
27- 5 corporation including, but not limited to, dividend income
27- 6 that can legally be taxed by the state (exclusive of
27- 7 tax-exempt securities and without any deduction for
27- 8 federal and state income taxes) shall be determined in
27- 9 accordance with such records. If any such corporation
27-10 keeps its records of operating revenues and operating
27-11 expenses on a state basis in accordance with the standard
27-12 classification of accounts prescribed by the Interstate
27-13 Commerce Commission and in a manner which includes in net
27-14 income for the state the effect of all intrastate and
27-15 interstate business applicable to the state, the state
27-16 records may, with the consent of the commissioner, be used
27-17 by the taxpayer in reporting the net taxable income within
27-18 the state.
27-19 48-7-11.
27-20 (a) The net income shall be computed upon the basis of the
27-21 taxpayer's annual accounting period in accordance with the
27-22 method of accounting regularly employed in keeping the
27-23 books of the taxpayer. If no such method of accounting has
27-24 been so employed or if the method employed does not
27-25 clearly reflect the income, the computation shall be made
27-26 in accordance with the method which, in the opinion of the
27-27 commissioner, clearly reflects the income. If the
27-28 taxpayer's annual accounting period is other than a fiscal
27-29 year or if the taxpayer has no annual accounting period or
27-30 does not keep books, the net income shall be computed on
27-31 the basis of the calendar year. A taxpayer utilizing a
27-32 fiscal year may return such taxpayer's net income under
27-33 this chapter on the basis of such taxpayer's fiscal year
27-34 with the approval of the commissioner and subject to such
27-35 rules and regulations as the commissioner may establish.
27-36 (b) With the approval of the commissioner and under such
27-37 regulations as the commissioner may prescribe, a taxpayer
27-38 may change his or her taxable year from fiscal year to
27-39 calendar year or otherwise. In the case of any such
27-40 change, the net income shall be computed upon the basis of
27-41 the new taxable year when approval is obtained from the
27-42 commissioner at least 30 days prior to the close of the
27-43 proposed taxable year.
-27-
28- 1 (c) The amount of all items of gross income shall be
28- 2 included in the gross income for the taxable year in which
28- 3 received by the taxpayer unless, under methods of
28- 4 accounting permitted by this Code section, any amounts of
28- 5 gross income are to be properly accounted for as of a
28- 6 different period.
28- 7 (d) The deductions and credits provided for in this
28- 8 chapter shall be taken for the taxable year in which 'paid
28- 9 or accrued' or 'paid or incurred' depending upon the
28-10 method of accounting on the basis of which the net income
28-11 is computed unless, in order to clearly reflect the
28-12 income, the deductions or credits should be taken as of a
28-13 different period.
28-14 (e) Whenever in the opinion of the commissioner it is
28-15 necessary in order to determine clearly the income of any
28-16 taxpayer, inventories shall be taken by the taxpayer on
28-17 the basis prescribed by the commissioner. Each such basis
28-18 shall conform as nearly as possible to the best accounting
28-19 practice in the particular trade or business which most
28-20 clearly reflects the income.
28-21 (f) If a return has been filed within the three years
28-22 immediately preceding the date of the taxpayer's death,
28-23 income and expenses of a taxpayer who dies during the
28-24 taxable year shall be computed on the same method of
28-25 accounting, whether cash or accrual, as was used by the
28-26 taxpayer in the preparation of the last income tax return
28-27 filed by the taxpayer with the commissioner. If no return
28-28 has been filed within the three-year period, the return of
28-29 a deceased taxpayer shall be prepared on the cash method
28-30 unless the commissioner certifies that the cash method,
28-31 because of particular circumstances, is not reasonable to
28-32 either the state or the heirs, legatees, or devisees
28-33 interested in the taxpayer's estate. If the commissioner
28-34 certifies that the cash method is unreasonable, the
28-35 commissioner may order the preparation of the return on
28-36 the accrual method.
28-37 48-7-12.
28-38 If any corporation employs in its books of account a
28-39 detailed allocation of receipts and expenditures which
28-40 reflects more clearly than the processes or formulas
28-41 prescribed by this chapter the income attributable to the
28-42 trade or business within this state, application for
28-43 permission to base its return upon the books of account
-28-
29- 1 shall be considered by the commissioner. The application
29- 2 shall be made at least 60 days prior to the last day on
29- 3 which the taxpayer's return is to be filed and shall be
29- 4 accompanied by a full and complete explanation of the
29- 5 method employed.
29- 6 48-7-13.
29- 7 If any corporation shows by any method of allocation other
29- 8 than the processes or formulas prescribed by this chapter
29- 9 that another method reflects more clearly the income
29-10 attributable to the trade or business within this state,
29-11 application for permission to base its return upon the
29-12 other method shall be considered by the commissioner. The
29-13 application shall be accompanied by a statement setting
29-14 forth in detail with full explanations the method the
29-15 taxpayer believes will more clearly reflect its income
29-16 from business within the state. If the commissioner
29-17 concludes that the method of allocation and apportionment
29-18 submitted by the taxpayer is in fact inapplicable and
29-19 inequitable, the commissioner shall reject the application
29-20 and shall so notify the taxpayer. Failure to receive the
29-21 commissioner's notice shall not operate to relieve the
29-22 taxpayer from liability for not filing the return on its
29-23 due date utilizing the allocation and apportionment method
29-24 prescribed by this chapter.
29-25 48-7-14.
29-26 (a) As used in this Code section, the term:
29-27 (1) 'Member of a minority' means an individual who is a
29-28 member of a race which comprises less than 50 percent of
29-29 the total population of the state.
29-30 (2) 'Minority subcontractor' means any business which is
29-31 owned by:
29-32 (A) An individual who is a member of a minority;
29-33 (B) A partnership in which a majority of the ownership
29-34 interest is owned by one or more members of a
29-35 minority; or
29-36 (C) A corporation organized under the laws of this
29-37 state in which a majority of the common stock is owned
29-38 by one or more members of a minority.
29-39 (3) 'State contract' means a contract for the purchase
29-40 by the state of goods, property, or services or for the
29-41 construction of any building or structure for the state,
-29-
30- 1 which contract is executed by any department, board,
30- 2 bureau, commission, or agency of state government, by
30- 3 any state authority, or by any officer, official,
30- 4 employee, or agent of any of the foregoing.
30- 5 (b) In computing Georgia taxable net income of a
30- 6 corporation, there shall be subtracted from federal
30- 7 taxable income or federal adjusted gross income 10 percent
30- 8 of the amount of qualified payments to minority
30- 9 subcontractors. A payment to a minority subcontractor
30-10 shall be a qualified payment if:
30-11 (1) The payment is for goods, personal property, or
30-12 services furnished by the minority subcontractor to the
30-13 taxpayer and delivered by the taxpayer to the state in
30-14 furtherance of a state contract to which the taxpayer is
30-15 a party; and the payment does not exceed the value of
30-16 the goods, property, or services to the taxpayer;
30-17 (2) The payment is made during the taxable year for
30-18 which the subtraction from federal taxable income or
30-19 federal adjusted gross income is claimed; and
30-20 (3) The payment is made to a subcontractor who at the
30-21 time of the payment is certified as a minority
30-22 contractor pursuant to subsection (d) of this Code
30-23 section.
30-24 (c) The total amount which may be subtracted under this
30-25 Code section from federal taxable income or federal
30-26 adjusted gross income of any taxpayer shall be limited to
30-27 $100,000.00 per taxable year.
30-28 (d) The commissioner of administrative services shall
30-29 certify individuals, partnerships, and corporations which
30-30 are within the definition of the term 'minority
30-31 subcontractor' specified in subsection (a) of this Code
30-32 section. The department may disclose to the commissioner
30-33 of administrative services the income tax returns of
30-34 taxpayers applying for certification as minority
30-35 subcontractors. The commissioner of administrative
30-36 services shall maintain and periodically revise a list of
30-37 certified minority subcontractors and shall make such list
30-38 available to the department and to the general public.
30-39 48-7-15.
30-40 (a) As used in this Code section, the term 'business
30-41 enterprise' means any business or the headquarters of any
30-42 such business which is engaged in manufacturing,
-30-
31- 1 warehousing and distribution, processing, tourism, and
31- 2 research and development industries. Such term shall not
31- 3 include retail businesses.
31- 4 (b)(1) Not later than December 31 of each year, using
31- 5 the most current data available from the Department of
31- 6 Labor and the United States Department of Commerce, the
31- 7 commissioner of community affairs shall rank and
31- 8 designate as less developed areas all 159 counties in
31- 9 this state using a combination of the following factors:
31-10 (A) Highest unemployment rate for the most recent 36
31-11 month period;
31-12 (B) Lowest per capita income for the most recent 36
31-13 month period;
31-14 (C) Highest percentage of residents whose incomes are
31-15 below the poverty level according to the most recent
31-16 data available; and
31-17 (D) Average weekly manufacturing wage according to the
31-18 most recent data available.
31-19 (2) Counties ranked and designated as the first through
31-20 fifty-third least developed counties shall be classified
31-21 as tier 1, counties ranked and designated as the
31-22 fifty-fourth through one hundred sixth least developed
31-23 counties shall be classified as tier 2, and counties
31-24 ranked and designated as the one hundred seventh through
31-25 one hundred fifty-ninth least developed counties shall
31-26 be classified as tier 3.
31-27 (c) The commissioner of community affairs shall be
31-28 authorized to include in the tier 2 designation provided
31-29 for in subsection (b) of this Code section any tier 3
31-30 county which, in the opinion of the commissioner of
31-31 community affairs, undergoes a sudden and severe period of
31-32 economic distress caused by the closing of one or more
31-33 business enterprises located in such county. No
31-34 designation made pursuant to this subsection shall operate
31-35 to displace or remove any other county previously
31-36 designated as a tier 2 county.
31-37 (c.1) The commissioner of community affairs shall be
31-38 authorized to include in the tier 1 designation provided
31-39 for in subsection (b) of this Code section any tier 2
31-40 county which, in the opinion of the commissioner of
31-41 community affairs, undergoes a sudden and severe period of
31-42 economic distress caused by the closing of one or more
-31-
32- 1 business enterprises located in such county. No
32- 2 designation made pursuant to this subsection shall operate
32- 3 to displace or remove any other county previously
32- 4 designated as a tier 1 county.
32- 5 (d) For business enterprises which plan a significant
32- 6 expansion in their labor forces, the commissioner of
32- 7 community affairs shall prescribe redesignation procedures
32- 8 to ensure that the business enterprises can claim credits
32- 9 in future years without regard to whether or not a
32-10 particular county is reclassified in a different tier.
32-11 (e) Business enterprises in counties designated by the
32-12 commissioner of community affairs as tier 1 counties shall
32-13 be allowed a job tax credit for taxes imposed under this
32-14 article equal to $2,500.00 annually, business enterprises
32-15 in counties designated by the commissioner of community
32-16 affairs as tier 2 counties shall be allowed a job tax
32-17 credit for taxes imposed under this article equal to
32-18 $1,500.00 annually, and business enterprises in counties
32-19 designated by the commissioner of community affairs as
32-20 tier 3 counties shall be allowed a job tax credit for
32-21 taxes imposed under this article equal to $500.00 annually
32-22 for each new full-time employee job for five years
32-23 beginning with years two through six after the creation of
32-24 the job. The number of new full-time jobs shall be
32-25 determined by comparing the monthly average number of
32-26 full-time employees subject to Georgia income tax
32-27 withholding for the taxable year with the corresponding
32-28 period of the prior taxable year. In tier 1 counties,
32-29 only those business enterprises that increase employment
32-30 by five or more shall be eligible for the credit. In tier
32-31 2 counties, only those business enterprises that increase
32-32 employment by 15 or more shall be eligible for the credit.
32-33 In tier 3 counties, only those business enterprises that
32-34 increase employment by 25 or more shall be eligible for
32-35 the credit. Credit shall not be allowed during a year if
32-36 the net employment increase falls below the number
32-37 required in such tier. Any credit received for years
32-38 prior to the year in which the net employment increase
32-39 falls below the number required in such tier shall not be
32-40 affected. The state revenue commissioner shall adjust the
32-41 credit allowed each year for net new employment
32-42 fluctuations above the minimum level of the number
32-43 required in such tier.
-32-
33- 1 (f) Tax credits for five years for the taxes imposed under
33- 2 this article shall be awarded for additional new full-time
33- 3 jobs created by business enterprises qualified under
33- 4 subsection (b) or (c) of this Code section. Additional new
33- 5 full-time jobs shall be determined by subtracting the
33- 6 highest total employment of the business enterprise during
33- 7 years two through six, or whatever portion of years two
33- 8 through six which has been completed, from the total
33- 9 increased employment. The state revenue commissioner
33-10 shall adjust the credit allowed in the event of employment
33-11 fluctuations during the additional five years of credit.
33-12 (g) The sale, merger, acquisition, or bankruptcy of any
33-13 business enterprise shall not create new eligibility in
33-14 any succeeding business entity, but any unused job tax
33-15 credit may be transferred and continued by any transferee
33-16 of the business enterprise. The commissioner of community
33-17 affairs shall determine whether or not qualifying net
33-18 increases or decreases have occurred and may require
33-19 reports, promulgate regulations, and hold hearings as
33-20 needed for substantiation and qualification.
33-21 (h) Any credit claimed under this Code section but not
33-22 used in any taxable year may be carried forward for ten
33-23 years from the close of the taxable year in which the
33-24 qualified jobs were established, but the credit
33-25 established by this Code section taken in any one taxable
33-26 year shall be limited to an amount not greater than 50
33-27 percent of the taxpayer's state income tax liability which
33-28 is attributable to income derived from operations in this
33-29 state for that taxable year.
33-30 (i) Notwithstanding any provision of this Code section to
33-31 the contrary, in counties designated as tier 1 counties
33-32 prior to January 1, 1994, job tax credits shall be allowed
33-33 as provided in this Code section, in addition to business
33-34 enterprises, to any business of any nature for jobs
33-35 created from January 1, 1993, through December 31, 1997.
33-36 48-7-16.
33-37 (a) As used in this Code section, the term 'business
33-38 enterprise' means any business or the headquarters of any
33-39 such business which is engaged in manufacturing,
33-40 warehousing and distribution, processing, tourism, and
33-41 research and development industries. Such term shall not
33-42 include retail businesses.
-33-
34- 1 (b) Not later than December 31 of each year, using the
34- 2 most current data available from the Department of Labor
34- 3 and the United States Department of Commerce, the
34- 4 commissioner of community affairs shall rank and designate
34- 5 as less developed areas the areas which are comprised of
34- 6 ten or more contiguous census tracts in this state using a
34- 7 combination of the following factors:
34- 8 (1) Highest unemployment rate for the most recent 36
34- 9 month period;
34-10 (2) Lowest per capita income for the most recent 36
34-11 month period; and
34-12 (3) Highest percentage of residents whose income is
34-13 below the poverty level according to the most recent
34-14 data available.
34-15 (c) The commissioner of community affairs shall be
34-16 authorized to include in the designation provided for in
34-17 subsection (b) of this Code section:
34-18 (1) Any area comprised of ten or more contiguous census
34-19 tracts which, in the opinion of the commissioner of
34-20 community affairs, undergoes a sudden and severe period
34-21 of economic distress caused by the closing of one or
34-22 more business enterprises located in such area; or
34-23 (2) Any area comprised of one or more contiguous census
34-24 tracts which, in the opinion of the commissioner of
34-25 community affairs, is or will be adversely impacted by
34-26 the loss of one or more jobs, businesses, or residences
34-27 as a result of an airport expansion, including noise
34-28 buy-outs, or the closing of a business enterprise which,
34-29 in the opinion of the commissioner of community affairs,
34-30 results or will result in a sudden and severe period of
34-31 economic distress.
34-32 No designation made pursuant to this subsection shall
34-33 operate to displace or remove any other area previously
34-34 designated as a less developed area.
34-35 (d) For business enterprises which plan a significant
34-36 expansion in their labor forces, the commissioner of
34-37 community affairs shall prescribe redesignation procedures
34-38 to ensure that the business enterprises can claim credits
34-39 in future years without regard to whether or not a
34-40 particular area is removed from the list of less developed
34-41 areas.
-34-
35- 1 (e) Business enterprises in areas designated by the
35- 2 commissioner of community affairs as less developed areas
35- 3 shall be allowed a job tax credit for taxes imposed under
35- 4 this article equal to $2,500.00 annually for each new
35- 5 full-time employee job for five years beginning with years
35- 6 two through six after the creation of the job. The number
35- 7 of new full-time jobs shall be determined by comparing the
35- 8 monthly average number of full-time employees subject to
35- 9 Georgia income tax withholding for the taxable year with
35-10 the corresponding period of the prior taxable year. Only
35-11 those business enterprises that increase employment by
35-12 five or more in a less developed area shall be eligible
35-13 for the credit. In addition, not less than 30 percent of
35-14 such new full-time jobs must be held by a resident of the
35-15 less developed area for which the credit is sought or
35-16 another such designated less developed area. Credit shall
35-17 not be allowed during a year if the net employment
35-18 increase falls below five. Any credit received for years
35-19 prior to the year in which the net employment increase
35-20 falls below five shall not be affected. The state revenue
35-21 commissioner shall adjust the credit allowed each year for
35-22 net new employment fluctuations above the minimum level of
35-23 five.
35-24 (f) Tax credits for five years for the taxes imposed under
35-25 this article shall be awarded for additional new full-time
35-26 jobs created by business enterprises qualified under
35-27 subsection (b) or (c) of this Code section. Additional new
35-28 full-time jobs shall be determined by subtracting the
35-29 highest total employment of the business enterprise during
35-30 years two through six, or whatever portion of years two
35-31 through six which has been completed, from the total
35-32 increased employment. The state revenue commissioner
35-33 shall adjust the credit allowed in the event of employment
35-34 fluctuations during the additional five years of credit.
35-35 (g) The sale, merger, acquisition, or bankruptcy of any
35-36 business enterprise shall not create new eligibility in
35-37 any succeeding business entity, but any unused job tax
35-38 credit may be transferred and continued by any transferee
35-39 of the business enterprise. The commissioner of community
35-40 affairs shall determine whether or not qualifying net
35-41 increases or decreases have occurred and may require
35-42 reports, promulgate regulations, and hold hearings as
35-43 needed for substantiation and qualification.
-35-
36- 1 (h) Any credit claimed under this Code section but not
36- 2 used in any taxable year may be carried forward for ten
36- 3 years from the close of the taxable year in which the
36- 4 qualified jobs were established, but the credit
36- 5 established by this Code section taken in any one taxable
36- 6 year shall be limited to an amount not greater than 50
36- 7 percent of the taxpayer's state income tax liability which
36- 8 is attributable to income derived from operations in this
36- 9 state for that taxable year.
36-10 48-7-17.
36-11 (a) As used in this Code section, the term:
36-12 (1) 'Product' means a marketable product or component of
36-13 a product which has an economic value to the wholesale
36-14 or retail consumer and is ready to be used without
36-15 further alteration of its form or a product or material
36-16 which is marketed as a prepared material or is a
36-17 component in the manufacturing and assembly of other
36-18 finished products.
36-19 (2) 'Qualified investment property' means all real and
36-20 personal property purchased or acquired by a taxpayer
36-21 for use in the construction of an additional
36-22 manufacturing facility to be located in this state or
36-23 the expansion of an existing manufacturing facility
36-24 located in this state, including, but not limited to,
36-25 amounts expended on land acquisition, improvements,
36-26 buildings, building improvements, and machinery and
36-27 equipment to be used in the manufacturing facility. The
36-28 department shall promulgate rules defining eligible
36-29 qualified investment property pursuant to this
36-30 paragraph.
36-31 (3) 'Recovered materials' means those materials,
36-32 including but not limited to such materials as aluminum,
36-33 oil, plastic, paper, paper products, scrap metal, iron,
36-34 glass, and rubber, which have known use, reuse, or
36-35 recycling potential; can be feasibly used, reused, or
36-36 recycled; and have been diverted or removed from the
36-37 solid waste stream for sale, use, reuse, or recycling,
36-38 whether or not requiring subsequent separation and
36-39 processing.
36-40 (4) 'Recycling' means any process by which materials
36-41 which would otherwise become solid waste are collected,
36-42 separated, or processed and reused or returned to use in
36-43 the form of raw materials or products.
-36-
37- 1 (5) 'Recycling machinery and equipment' means all
37- 2 tangible personal property used, directly or indirectly,
37- 3 to sort, store, prepare, convert, process, fabricate, or
37- 4 manufacture recovered materials into finished products
37- 5 which are composed of at least 25 percent recovered
37- 6 materials, such term including, but not being limited
37- 7 to, power generation and pollution control machinery and
37- 8 equipment.
37- 9 (6) 'Recycling manufacturing facility' means any
37-10 facility, including land, improvements to land,
37-11 buildings, building improvements, and any recycling
37-12 machinery and equipment used in the recycling process
37-13 resulting in the manufacture of finished products from
37-14 recovered materials, provided that up to 10 percent of
37-15 any building that is a component of a recycling facility
37-16 may be used for office space to house support staff for
37-17 the recycling operation.
37-18 (b) In the case of a taxpayer which has operated for the
37-19 immediately preceding three years an existing
37-20 manufacturing facility or manufacturing support facility
37-21 in this state in a tier 1 county designated pursuant to
37-22 Code Section 48-7-15, there shall be allowed a credit
37-23 against the tax imposed under this article in an amount
37-24 equal to 5 percent of the cost of all qualified investment
37-25 property purchased or acquired by the taxpayer in such
37-26 year, subject to the conditions and limitations set forth
37-27 in this Code section. In the event such qualified
37-28 investment property purchased or acquired by the taxpayer
37-29 in such year consists of recycling machinery or equipment,
37-30 a recycling manufacturing facility, pollution control or
37-31 prevention machinery or equipment, a pollution control or
37-32 prevention facility, or the conversion from defense to
37-33 domestic production, the amount of such credit shall be
37-34 equal to 8 percent.
37-35 (c) The credit granted under subsection (b) of this Code
37-36 section shall be subject to the following conditions and
37-37 limitations:
37-38 (1) In order to qualify as a basis for the credit, the
37-39 investment in qualified investment property must occur
37-40 no sooner than January 1, 1995. The credit may be taken
37-41 beginning with the tax year immediately following the
37-42 tax year in which the qualified investment property
37-43 having an aggregate cost in excess of $50,000.00 is
37-44 purchased or acquired by the taxpayer. For every year
-37-
38- 1 in which a taxpayer claims the credit, the taxpayer
38- 2 shall attach a schedule to the taxpayer's Georgia income
38- 3 tax return which will set forth the following
38- 4 information, as a minimum:
38- 5 (A) A description of the project;
38- 6 (B) The amount of qualified investment property
38- 7 acquired during the taxable year;
38- 8 (C) The amount of tax credit claimed for the taxable
38- 9 year;
38-10 (D) The amount of qualified investment property
38-11 acquired in prior taxable years;
38-12 (E) Any tax credit utilized by the taxpayer in prior
38-13 taxable years;
38-14 (F) The amount of tax credit carried over from prior
38-15 years;
38-16 (G) The amount of tax credit utilized by the taxpayer
38-17 in the current taxable year; and
38-18 (H) The amount of tax credit to be carried over to
38-19 subsequent tax years;
38-20 (2) Any credit claimed under this Code section but not
38-21 used in any taxable year may be carried forward for five
38-22 years from the close of the taxable year in which the
38-23 qualified investment property was acquired, provided
38-24 that such qualified investment property remains in
38-25 service. The credit established by this Code section
38-26 taken in any one taxable year shall be limited to an
38-27 amount not greater than 50 percent of the taxpayer's
38-28 state income tax liability which is attributable to
38-29 income derived from operations in this state for that
38-30 taxable year. The sale, merger, acquisition, or
38-31 bankruptcy of any taxpayer shall not create new
38-32 eligibility in any succeeding taxpayer, but any unused
38-33 credit may be transferred and continued by any
38-34 transferee of the taxpayer;
38-35 (3) In the initial year in which the taxpayer claims the
38-36 credit granted in subsection (b) of this Code section,
38-37 the taxpayer shall include in the description of the
38-38 project required by subparagraph (A) of paragraph (1) of
38-39 this subsection information which demonstrates that the
38-40 project includes the acquisition of qualified investment
-38-
39- 1 property having an aggregate cost in excess of
39- 2 $50,000.00;
39- 3 (4) Any lease for a period of five years or longer of
39- 4 any real or personal property used in a new or expanded
39- 5 manufacturing facility which would otherwise constitute
39- 6 qualified investment property shall be treated as the
39- 7 purchase or acquisition of qualified investment property
39- 8 by the lessee. The taxpayer may treat the full value of
39- 9 the leased property as qualified investment property in
39-10 the taxable year in which the lease becomes binding on
39-11 the lessor and the taxpayer if all other conditions of
39-12 this subsection have been met; and
39-13 (5) The utilization of the credit granted in subsection
39-14 (b) of this Code section shall have no effect on the
39-15 taxpayer's ability to claim depreciation for tax
39-16 purposes on the assets acquired by the taxpayer nor
39-17 shall the credit have any effect on the taxpayer's basis
39-18 in such assets for the purpose of depreciation.
39-19 (d)(1) Except as otherwise provided in paragraph (2) of
39-20 this subsection, no taxpayer shall be authorized to
39-21 claim on a tax return for a given project the credit
39-22 provided for in this Code section if such taxpayer
39-23 claims on such tax return any of the credits authorized
39-24 under Code Section 48-7-15 or 48-7-16.
39-25 (2) For taxable years beginning on or after January 1,
39-26 1995, and ending on or prior to December 31, 1998, a
39-27 taxpayer shall be authorized to claim on a tax return
39-28 for a given project the credit provided for in this Code
39-29 section and to claim, if otherwise qualified under Code
39-30 Section 48-7-15, the tax credit applicable to tier 1
39-31 counties under Code Section 48-7-15, subject to the
39-32 following limitations:
39-33 (A) Not less than 250 new full-time employee jobs must
39-34 be created in the first taxable year and maintained
39-35 through the end of the third taxable year in which the
39-36 taxpayer claims both credits as authorized under this
39-37 paragraph; and
39-38 (B) An otherwise qualified taxpayer shall not be
39-39 entitled to receive the additional tax credit
39-40 authorized under Code Section 36-62-5.1 in any taxable
39-41 year in which that taxpayer claims both of the tax
39-42 credits as authorized under this paragraph.
-39-
40- 1 48-7-18.
40- 2 (a) As used in this Code section, the term:
40- 3 (1) 'Product' means a marketable product or component of
40- 4 a product which has an economic value to the wholesale
40- 5 or retail consumer and is ready to be used without
40- 6 further alteration of its form or a product or material
40- 7 which is marketed as a prepared material or is a
40- 8 component in the manufacturing and assembly of other
40- 9 finished products.
40-10 (2) 'Qualified investment property' means all real and
40-11 personal property purchased or acquired by a taxpayer
40-12 for use in the construction of an additional
40-13 manufacturing facility to be located in this state or
40-14 the expansion of an existing manufacturing facility
40-15 located in this state, including, but not limited to,
40-16 amounts expended on land acquisition, improvements,
40-17 buildings, building improvements, and machinery and
40-18 equipment to be used in the manufacturing facility. The
40-19 department shall promulgate rules defining eligible
40-20 qualified investment property pursuant to this
40-21 paragraph.
40-22 (3) 'Recovered materials' means those materials,
40-23 including but not limited to such materials as aluminum,
40-24 oil, plastic, paper, paper products, scrap metal, iron,
40-25 glass, and rubber, which have known use, reuse, or
40-26 recycling potential; can be feasibly used, reused, or
40-27 recycled; and have been diverted or removed from the
40-28 solid waste stream for sale, use, reuse, or recycling,
40-29 whether or not requiring subsequent separation and
40-30 processing.
40-31 (4) 'Recycling' means any process by which materials
40-32 which would otherwise become solid waste are collected,
40-33 separated, or processed and reused or returned to use in
40-34 the form of raw materials or products.
40-35 (5) 'Recycling machinery and equipment' means all
40-36 tangible personal property used, directly or indirectly,
40-37 to sort, store, prepare, convert, process, fabricate, or
40-38 manufacture recovered materials into products which are
40-39 composed of at least 25 percent recovered materials,
40-40 such term including, but not being limited to, power
40-41 generation and pollution control machinery and
40-42 equipment.
-40-
41- 1 (6) 'Recycling manufacturing facility' means any
41- 2 facility, including land, improvements to land,
41- 3 buildings, building improvements, and any recycling
41- 4 machinery and equipment used in the recycling process
41- 5 resulting in the manufacture of products from recovered
41- 6 materials, provided that up to 10 percent of any
41- 7 building that is a component of a recycling facility may
41- 8 be used for office space to house support staff for the
41- 9 recycling operation.
41-10 (b) In the case of a taxpayer which has operated for the
41-11 immediately preceding three years an existing
41-12 manufacturing facility or manufacturing support facility
41-13 in this state in a tier 2 county designated pursuant to
41-14 Code Section 48-7-15, there shall be allowed a credit
41-15 against the tax imposed under Code Section 48-7-7 in an
41-16 amount equal to 3 percent of the cost of all qualified
41-17 investment property purchased or acquired by the taxpayer
41-18 in such year, subject to the conditions and limitations
41-19 set forth in this Code section. In the event such
41-20 qualified investment property purchased or acquired by the
41-21 taxpayer in such year consists of recycling machinery or
41-22 equipment, a recycling manufacturing facility, pollution
41-23 control or prevention machinery or equipment, a pollution
41-24 control or prevention facility, or the conversion from
41-25 defense to domestic production, the amount of such credit
41-26 shall be equal to 5 percent.
41-27 (c) The credit granted under subsection (b) of this Code
41-28 section shall be subject to the following conditions and
41-29 limitations:
41-30 (1) In order to qualify as a basis for the credit, the
41-31 investment in qualified investment property must occur
41-32 no sooner than January 1, 1995. The credit may be taken
41-33 beginning with the tax year immediately following the
41-34 tax year in which the qualified investment property
41-35 having an aggregate cost in excess of $50,000.00 is
41-36 purchased or acquired by the taxpayer. For every year
41-37 in which a taxpayer claims the credit, the taxpayer
41-38 shall attach a schedule to the taxpayer's Georgia income
41-39 tax return which will set forth the following
41-40 information, as a minimum:
41-41 (A) A description of the project;
41-42 (B) The amount of qualified investment property
41-43 acquired during the taxable year;
-41-
42- 1 (C) The amount of tax credit claimed for the taxable
42- 2 year;
42- 3 (D) The amount of qualified investment property
42- 4 acquired in prior taxable years;
42- 5 (E) Any tax credit utilized by the taxpayer in prior
42- 6 taxable years;
42- 7 (F) The amount of tax credit carried over from prior
42- 8 years;
42- 9 (G) The amount of tax credit utilized by the taxpayer
42-10 in the current taxable year; and
42-11 (H) The amount of tax credit to be carried over to
42-12 subsequent tax years;
42-13 (2) Any credit claimed under this Code section but not
42-14 used in any taxable year may be carried forward for five
42-15 years from the close of the taxable year in which the
42-16 qualified investment property was acquired, provided
42-17 that such qualified investment property remains in
42-18 service. The credit established by this Code section
42-19 taken in any one taxable year shall be limited to an
42-20 amount not greater than 50 percent of the taxpayer's
42-21 state income tax liability which is attributable to
42-22 income derived from operations in this state for that
42-23 taxable year. The sale, merger, acquisition, or
42-24 bankruptcy of any taxpayer shall not create new
42-25 eligibility in any succeeding taxpayer, but any unused
42-26 credit may be transferred and continued by any
42-27 transferee of the taxpayer;
42-28 (3) In the initial year in which the taxpayer claims the
42-29 credit granted in subsection (b) of this Code section,
42-30 the taxpayer shall include in the description of the
42-31 project required by subparagraph (A) of paragraph (1) of
42-32 this subsection information which demonstrates that the
42-33 project includes the acquisition of qualified investment
42-34 property having an aggregate cost in excess of
42-35 $50,000.00;
42-36 (4) Any lease for a period of five years or longer of
42-37 any real or personal property used in a new or expanded
42-38 manufacturing facility which would otherwise constitute
42-39 qualified investment property shall be treated as the
42-40 purchase or acquisition of qualified investment property
42-41 by the lessee. The taxpayer may treat the full value of
42-42 the leased property as qualified investment property in
-42-
43- 1 the taxable year in which the lease becomes binding on
43- 2 the lessor and the taxpayer if all other conditions of
43- 3 this subsection have been met; and
43- 4 (5) The utilization of the credit granted in subsection
43- 5 (b) of this Code section shall have no effect on the
43- 6 taxpayer's ability to claim depreciation for tax
43- 7 purposes on the assets acquired by the taxpayer nor
43- 8 shall the credit have any effect on the taxpayer's basis
43- 9 in such assets for the purpose of depreciation.
43-10 (d) No taxpayer shall be authorized to claim on a tax
43-11 return for a given project the credit provided for in this
43-12 Code section if such taxpayer claims on such tax return
43-13 any of the credits authorized under Code Section 48-7-15
43-14 or 48-7-16.
43-15 48-7-19.
43-16 (a) As used in this Code section, the term:
43-17 (1) 'Product' means a marketable product or component of
43-18 a product which has an economic value to the wholesale
43-19 or retail consumer and is ready to be used without
43-20 further alteration of its form or a product or material
43-21 which is marketed as a prepared material or is a
43-22 component in the manufacturing and assembly of other
43-23 finished products.
43-24 (2) 'Qualified investment property' means all real and
43-25 personal property purchased or acquired by a taxpayer
43-26 for use in the construction of an additional
43-27 manufacturing facility to be located in this state or
43-28 the expansion of an existing manufacturing facility
43-29 located in this state, including, but not limited to,
43-30 amounts expended on land acquisition, improvements,
43-31 buildings, building improvements, and machinery and
43-32 equipment to be used in the manufacturing facility. The
43-33 department shall promulgate rules defining eligible
43-34 qualified investment property pursuant to this
43-35 paragraph.
43-36 (3) 'Recovered materials' means those materials,
43-37 including but not limited to such materials as aluminum,
43-38 oil, plastic, paper, paper products, scrap metal, iron,
43-39 glass, and rubber, which have known use, reuse, or
43-40 recycling potential; can be feasibly used, reused, or
43-41 recycled; and have been diverted or removed from the
43-42 solid waste stream for sale, use, reuse, or recycling,
-43-
44- 1 whether or not requiring subsequent separation and
44- 2 processing.
44- 3 (4) 'Recycling' means any process by which materials
44- 4 which would otherwise become solid waste are collected,
44- 5 separated, or processed and reused or returned to use in
44- 6 the form of raw materials or products.
44- 7 (5) 'Recycling machinery and equipment' means all
44- 8 tangible personal property used, directly or indirectly,
44- 9 to sort, store, prepare, convert, process, fabricate, or
44-10 manufacture recovered materials into products which are
44-11 composed of at least 25 percent recovered materials,
44-12 such term including, but not being limited to, power
44-13 generation and pollution control machinery and
44-14 equipment.
44-15 (6) 'Recycling manufacturing facility' means any
44-16 facility, including land, improvements to land,
44-17 buildings, building improvements, and any recycling
44-18 machinery and equipment used in the recycling process
44-19 resulting in the manufacture of products from recovered
44-20 materials, provided that up to 10 percent of any
44-21 building that is a component of a recycling facility may
44-22 be used for office space to house support staff for the
44-23 recycling operation.
44-24 (b) In the case of a taxpayer which has operated for the
44-25 immediately preceding three years an existing
44-26 manufacturing facility or manufacturing support facility
44-27 in this state in a tier 3 county designated pursuant to
44-28 Code Section 48-7-15, there shall be allowed a credit
44-29 against the tax imposed under this article in an amount
44-30 equal to 1 percent of the cost of all qualified investment
44-31 property purchased or acquired by the taxpayer in such
44-32 year, subject to the conditions and limitations set forth
44-33 in this Code section. In the event such qualified
44-34 investment property purchased or acquired by the taxpayer
44-35 in such year consists of recycling machinery or equipment,
44-36 a recycling manufacturing facility, pollution control or
44-37 prevention machinery or equipment, a pollution control or
44-38 prevention facility, or the conversion from defense to
44-39 domestic production, the amount of such credit shall be
44-40 equal to 3 percent.
44-41 (c) The credit granted under subsection (b) of this Code
44-42 section shall be subject to the following conditions and
44-43 limitations:
-44-
45- 1 (1) In order to qualify as a basis for the credit, the
45- 2 investment in qualified investment property must occur
45- 3 no sooner than January 1, 1995. The credit may be taken
45- 4 beginning with the tax year immediately following the
45- 5 tax year in which the qualified investment property
45- 6 having an aggregate cost in excess of $50,000.00 is
45- 7 purchased or acquired by the taxpayer. For every year
45- 8 in which a taxpayer claims the credit, the taxpayer
45- 9 shall attach a schedule to the taxpayer's Georgia income
45-10 tax return which will set forth the following
45-11 information, as a minimum:
45-12 (A) A description of the project;
45-13 (B) The amount of qualified investment property
45-14 acquired during the taxable year;
45-15 (C) The amount of tax credit claimed for the taxable
45-16 year;
45-17 (D) The amount of qualified investment property
45-18 acquired in prior taxable years;
45-19 (E) Any tax credit utilized by the taxpayer in prior
45-20 taxable years;
45-21 (F) The amount of tax credit carried over from prior
45-22 years;
45-23 (G) The amount of tax credit utilized by the taxpayer
45-24 in the current taxable year; and
45-25 (H) The amount of tax credit to be carried over to
45-26 subsequent tax years;
45-27 (2) Any credit claimed under this Code section but not
45-28 used in any taxable year may be carried forward for five
45-29 years from the close of the taxable year in which the
45-30 qualified investment property was acquired, provided
45-31 that such qualified investment property remains in
45-32 service. The credit established by this Code section
45-33 taken in any one taxable year shall be limited to an
45-34 amount not greater than 50 percent of the taxpayer's
45-35 state income tax liability which is attributable to
45-36 income derived from operations in this state for that
45-37 taxable year. The sale, merger, acquisition, or
45-38 bankruptcy of any taxpayer shall not create new
45-39 eligibility in any succeeding taxpayer, but any unused
45-40 credit may be transferred and continued by any
45-41 transferee of the taxpayer;
-45-
46- 1 (3) In the initial year in which the taxpayer claims the
46- 2 credit granted in subsection (b) of this Code section,
46- 3 the taxpayer shall include in the description of the
46- 4 project required by subparagraph (A) of paragraph (1) of
46- 5 this subsection information which demonstrates that the
46- 6 project includes the acquisition of qualified investment
46- 7 property having an aggregate cost in excess of
46- 8 $50,000.00;
46- 9 (4) Any lease for a period of five years or longer of
46-10 any real or personal property used in a new or expanded
46-11 manufacturing facility which would otherwise constitute
46-12 qualified investment property shall be treated as the
46-13 purchase or acquisition of qualified investment property
46-14 by the lessee. The taxpayer may treat the full value of
46-15 the leased property as qualified investment property in
46-16 the taxable year in which the lease becomes binding on
46-17 the lessor and the taxpayer if all other conditions of
46-18 this subsection have been met; and
46-19 (5) The utilization of the credit granted in subsection
46-20 (b) of this Code section shall have no effect on the
46-21 taxpayer's ability to claim depreciation for tax
46-22 purposes on the assets acquired by the taxpayer nor
46-23 shall the credit have any effect on the taxpayer's basis
46-24 in such assets for the purpose of depreciation.
46-25 (d) No taxpayer shall be authorized to claim on a tax
46-26 return for a given project the credit provided for in this
46-27 Code section if such taxpayer claims on such tax return
46-28 any of the credits authorized under Code Section 48-7-15
46-29 or 48-7-16.
46-30 48-7-20.
46-31 (a) As used in this Code section, the term:
46-32 (1) 'Approved retraining' means employer provided or
46-33 employer sponsored retraining that meets the following
46-34 conditions:
46-35 (A) It enhances the functional skills of employees
46-36 otherwise unable to function effectively on the job
46-37 due to skill deficiencies or who would otherwise be
46-38 displaced because such skill deficiencies would
46-39 inhibit their utilization of new technology;
46-40 (B) It is approved and certified by the Department of
46-41 Technical and Adult Education; and
-46-
47- 1 (C) The employer does not require the employee to make
47- 2 any payment for the retraining, either directly or
47- 3 indirectly through use of forfeiture of leave time,
47- 4 vacation time, or other compensable time.
47- 5 (2) 'Cost of retraining' means direct instructional
47- 6 costs as defined by the Department of Technical and
47- 7 Adult Education including instructor salaries,
47- 8 materials, supplies, and textbooks but specifically
47- 9 excluding costs associated with renting or otherwise
47-10 securing space.
47-11 (3) 'Employee' means any employee resident in this state
47-12 who is employed for at least 25 hours a week, who has
47-13 been continuously employed by the employer for at least
47-14 16 consecutive weeks.
47-15 (4) 'Employer' means any employer upon whom an income
47-16 tax is imposed by this chapter.
47-17 (5) 'Employer provided' refers to approved retraining
47-18 offered on the premises of the employer or on premises
47-19 approved by the Department of Technical and Adult
47-20 Education by instructors hired by or employed by an
47-21 employer.
47-22 (6) 'Employer sponsored' refers to a contractual
47-23 arrangement with a school, university, college, or other
47-24 instructional facility which offers approved retraining
47-25 that is paid for by the employer.
47-26 (b) A tax credit shall be granted to an employer who
47-27 provides or sponsors an approved retraining program. The
47-28 amount of the tax credit shall be equal to one-half of the
47-29 costs of retraining per full-time employee, or $500.00 per
47-30 full-time employee, whichever is less, for each employee
47-31 who has successfully completed an approved retraining
47-32 program. No employer may receive a credit if the employer
47-33 requires that the employee reimburse or pay the employer
47-34 for the cost of retraining.
47-35 (c) The tax credit granted to any employer pursuant to
47-36 this Code section shall not exceed 50 percent of the
47-37 amount of the taxpayer's income tax liability for the
47-38 taxable year as computed without regard to this Code
47-39 section.
47-40 (d) To be eligible to claim the credit granted under this
47-41 Code section, the employer must certify to the department
47-42 the name of the employee, the course work successfully
-47-
48- 1 completed by such employee, the name of the provider of
48- 2 the approved retraining, and such other information as may
48- 3 be required by the department to ensure that credits are
48- 4 only granted to employers who provide or sponsor approved
48- 5 retraining pursuant to this Code section and that such
48- 6 credits are only granted to employers with respect to
48- 7 employees who successfully complete such approved
48- 8 retraining. The department shall adopt rules and
48- 9 regulations and forms to implement this credit program.
48-10 The department is expressly authorized and directed to
48-11 work with the Department of Technical and Adult Education
48-12 to ensure the proper granting of credits pursuant to this
48-13 Code section.
48-14 (e) The Department of Technical and Adult Education is
48-15 expressly authorized and directed to establish such
48-16 standards as it deems necessary and convenient in
48-17 approving employer provided and employer sponsored
48-18 retraining programs. In establishing such standards, the
48-19 Department of Technical and Adult Education shall
48-20 establish required hours of classroom instruction,
48-21 required courses, certification of teachers or
48-22 instructors, progressive levels of instruction, and
48-23 standardized measures of employee evaluation to determine
48-24 successful completion of a course of study.
48-25 48-7-21.
48-26 (a) As used in this Code section, the term:
48-27 (1) 'Cost of operation' means reasonable direct
48-28 operational costs incurred by an employer as a result of
48-29 providing employer provided or employer sponsored child
48-30 care facilities.
48-31 (2) 'Employer' means any employer upon whom an income
48-32 tax is imposed by this chapter.
48-33 (3) 'Employer provided' refers to child care offered on
48-34 the premises of the employer, provided that the facility
48-35 is in Georgia.
48-36 (4) 'Employer sponsored' refers to a contractual
48-37 arrangement with a child care facility that is paid for
48-38 by the employer.
48-39 (b) A tax credit shall be granted to an employer who
48-40 provides or sponsors child care for employees. The amount
48-41 of the tax credit shall be equal to one-half of the cost
-48-
49- 1 of operation to the employer less any amounts paid for by
49- 2 employees during a taxable year.
49- 3 (c) The tax credit granted to any employer pursuant to
49- 4 this Code section shall not exceed 50 percent of the
49- 5 amount of the taxpayer's income tax liability for the
49- 6 taxable year as computed without regard to this Code
49- 7 section. Any credit claimed under this Code section but
49- 8 not used in any taxable year may be carried forward for
49- 9 five years from the close of the taxable year in which the
49-10 cost of operation was incurred.
49-11 (d) To be eligible to claim the credit granted under this
49-12 Code section, the employer must certify to the department
49-13 the names of the employees, the name of the child care
49-14 provider, and such other information as may be required by
49-15 the department to ensure that credits are only granted to
49-16 employers who provide or sponsor approved child care
49-17 pursuant to this Code section. The department shall adopt
49-18 rules and regulations and forms to implement this credit
49-19 program.
49-20 48-7-22.
49-21 (a) As used in this Code section, the term:
49-22 (1) 'Approved basic skills education' means employer
49-23 provided or employer sponsored education that meets the
49-24 following conditions:
49-25 (A) It enhances reading, writing, or mathematical
49-26 skills up to and including the twelfth-grade level for
49-27 employees who are otherwise unable to function
49-28 effectively on the job due to deficiencies in those
49-29 areas or who would otherwise be displaced because such
49-30 skill deficiencies would inhibit their training for
49-31 new technology;
49-32 (B) It is approved and certified by the Department of
49-33 Technical and Adult Education; and
49-34 (C) The employer does not require the employee to make
49-35 any payment for the education, either directly or
49-36 indirectly through use of forfeiture of leave time,
49-37 vacation time, or other compensable time.
49-38 (2) 'Cost of education' means direct instructional costs
49-39 as defined by the Department of Technical and Adult
49-40 Education including instructor salaries, materials,
-49-
50- 1 supplies, and textbooks but specifically excluding costs
50- 2 associated with renting or otherwise securing space.
50- 3 (3) 'Employee' means any employee resident in this state
50- 4 who is employed for at least 24 hours a week and who has
50- 5 been continuously employed by the employer for at least
50- 6 16 consecutive weeks.
50- 7 (4) 'Employer' means any employer upon whom an income
50- 8 tax is imposed by this chapter.
50- 9 (5) 'Employer provided' refers to approved basic skills
50-10 education offered on the premises of the employer or on
50-11 premises approved by the Department of Technical and
50-12 Adult Education by instructors hired by or employed by
50-13 an employer.
50-14 (6) 'Employer sponsored' refers to a contractual
50-15 arrangement with a school, university, college, or other
50-16 instructional facility which offers approved basic
50-17 skills education that is paid for by the employer.
50-18 (b) A tax credit shall be granted to an employer who
50-19 provides or sponsors an approved basic skills education
50-20 program. The amount of the tax credit shall be equal to
50-21 one-third of the costs of education per full-time
50-22 equivalent student, or $150.00 per full-time equivalent
50-23 student, whichever is less, for each employee who has
50-24 successfully completed an approved basic skills education
50-25 program. No employer may receive a credit if the employer
50-26 requires that the employee reimburse or pay the employer
50-27 for the cost of education.
50-28 (c) The tax credit granted to any employer pursuant to
50-29 this Code section shall not exceed the amount of the
50-30 taxpayer's income tax liability for the taxable year as
50-31 computed without regard to this Code section.
50-32 (d) To be eligible to claim the credit granted under this
50-33 Code section, the employer must certify to the department
50-34 the name of the employee, the course work successfully
50-35 completed by such employee, the name of the approved basic
50-36 skills education provider, and such other information as
50-37 may be required by the department to ensure that credits
50-38 are only granted to employers who provide or sponsor
50-39 approved basic skills education pursuant to this Code
50-40 section and that such credits are only granted to
50-41 employers with respect to employees who successfully
50-42 complete such approved basic skills education. The
-50-
51- 1 department shall adopt rules and regulations and forms to
51- 2 implement this credit program. The department is
51- 3 expressly authorized and directed to work with the
51- 4 Department of Technical and Adult Education to ensure the
51- 5 proper granting of credits pursuant to this Code section.
51- 6 (e) The Department of Technical and Adult Education is
51- 7 expressly authorized and directed to establish such
51- 8 standards as it deems necessary and convenient in
51- 9 approving employer provided and employer sponsored basic
51-10 skills education programs. In establishing such
51-11 standards, the Department of Technical and Adult Education
51-12 shall establish required hours of classroom instruction,
51-13 required courses, certification of teachers or
51-14 instructors, and progressive levels of instruction and
51-15 standardized measures of employee evaluation to determine
51-16 successful completion of a course of study.
51-17 48-7-23.
51-18 (a) As used in this Code section, the term:
51-19 (1) 'Machinery and equipment' means all tangible
51-20 personal property used, directly or indirectly, to move,
51-21 sort, store, prepare, convert, process, fabricate, or
51-22 manufacture products.
51-23 (2) 'Product' means a marketable product or component of
51-24 a product which has an economic value to the wholesale
51-25 or retail consumer and is ready to be used without
51-26 further alteration of its form or a product or material
51-27 which is marketed as a prepared material or is a
51-28 component in the manufacturing and assembly of other
51-29 finished products.
51-30 (3) 'Qualified investment property' means all real and
51-31 personal property purchased or acquired by a taxpayer
51-32 for use in the construction of an additional
51-33 manufacturing facility to be located in this state or
51-34 the expansion of an existing manufacturing facility
51-35 located in this state, including, but not limited to,
51-36 amounts expended on land acquisition, improvements,
51-37 buildings, building improvements, and machinery and
51-38 equipment to be used exclusively in the manufacturing
51-39 facility. The department shall promulgate rules
51-40 defining eligible qualified investment property pursuant
51-41 to this paragraph.
-51-
52- 1 (b) In the case of a taxpayer which has operated for the
52- 2 immediately preceding three years an existing
52- 3 manufacturing facility or manufacturing support facility
52- 4 and which first places in service during a taxable year
52- 5 qualified investment property in this state in a tier 1
52- 6 county designated pursuant to Code Section 48-7-15, there
52- 7 shall be allowed an optional credit against the tax
52- 8 imposed under this article for the ensuing ten taxable
52- 9 years following the taxable year the qualified investment
52-10 property was first placed in service, provided that such
52-11 qualified investment property remains in service. Such
52-12 optional credit shall be at the irrevocable election of
52-13 the taxpayer and shall be in lieu of the credit under Code
52-14 Section 48-7-17. No taxpayer who claims the credit under
52-15 Code Section 48-7-17 for any taxable year for a given
52-16 project shall be eligible to receive the credit under this
52-17 Code section with respect to the same project for any
52-18 taxable year. The aggregate amount of the credit allowed
52-19 under this Code section shall equal 10 percent of the cost
52-20 of all qualified investment property purchased or acquired
52-21 by the taxpayer and first placed in service during a
52-22 taxable year. The annual amount of such credit shall be
52-23 computed as follows:
52-24 (1) The taxable year in which such qualified investment
52-25 property is first placed in service shall be the base
52-26 year for purposes of calculating the credit provided for
52-27 by this Code section;
52-28 (2) The amount of tax owed by the taxpayer for the base
52-29 year and for each of the two immediately preceding
52-30 taxable years shall be determined without regard to any
52-31 credits and shall be added together and divided by
52-32 three. The resulting figure shall be the base year
52-33 average; and
52-34 (3) The credit available to the taxpayer to apply
52-35 against the tax liability of any year following the base
52-36 year but no later than the tenth year shall be the
52-37 lesser of the following amounts:
52-38 (A) Ninety percent of the excess of the tax of the
52-39 applicable year determined without regard to any
52-40 credits over the base year average; or
52-41 (B) The excess of the aggregate amount of the credit
52-42 allowed for the qualified investment property over the
-52-
53- 1 sum of the amounts of credit already used in the years
53- 2 following the base year.
53- 3 (c) The credit granted under subsection (b) of this Code
53- 4 section shall be subject to the following conditions and
53- 5 limitations:
53- 6 (1) In order to qualify as a basis for the credit, the
53- 7 qualified investment property must be first placed in
53- 8 service no sooner than January 1, 1996. The credit may
53- 9 only be taken with respect to qualified investment
53-10 property having an aggregate cost in excess of $5
53-11 million. For every year in which a taxpayer claims the
53-12 credit, the taxpayer shall attach a schedule to the
53-13 taxpayer's Georgia income tax return which will set
53-14 forth the following information, as a minimum:
53-15 (A) A description of the project;
53-16 (B) The amount of qualified investment property placed
53-17 in service during the taxable year;
53-18 (C) The base year average calculated under paragraph
53-19 (2) of subsection (b) of this Code section;
53-20 (D) The tax owed by the taxpayer for the current
53-21 taxable year determined without regard to any credits;
53-22 (E) The amount of the unused credit available at the
53-23 end of the prior tax year;
53-24 (F) The amount of tax credit utilized by the taxpayer
53-25 in the current taxable year; and
53-26 (G) The amount of tax credit remaining for subsequent
53-27 tax years;
53-28 (2) In the initial year in which the taxpayer claims the
53-29 credit granted in subsection (b) of this Code section,
53-30 the taxpayer shall include in the description of the
53-31 project required by subparagraph (A) of paragraph (1) of
53-32 this subsection information which demonstrates that the
53-33 project includes the placing in service of qualified
53-34 investment property having an aggregate cost in excess
53-35 of $5 million;
53-36 (3) Any lease for a period of five years or longer of
53-37 any real or personal property used in a new or expanded
53-38 manufacturing facility which would otherwise constitute
53-39 qualified investment property shall be treated as the
53-40 purchase or acquisition of qualified investment property
-53-
54- 1 by the lessee. The taxpayer may treat the full value of
54- 2 the leased property as qualified investment property in
54- 3 the taxable year in which the lease becomes binding on
54- 4 the lessor and the taxpayer if all other conditions of
54- 5 this subsection have been met; and
54- 6 (4) The utilization of the credit granted in subsection
54- 7 (b) of this Code section shall have no effect on the
54- 8 taxpayer's ability to claim depreciation for tax
54- 9 purposes on the assets acquired by the taxpayer nor
54-10 shall the credit have any effect on the taxpayer's basis
54-11 in such assets for the purpose of depreciation.
54-12 (d) No taxpayer shall be authorized to claim on a tax
54-13 return for a given project the credit provided for in this
54-14 Code section if such taxpayer claims on such tax return
54-15 any of the credits authorized under Code Section 48-7-15
54-16 or 48-7-16.
54-17 48-7-24.
54-18 (a) As used in this Code section, the term:
54-19 (1) 'Machinery and equipment' means all tangible
54-20 personal property used, directly or indirectly, to move,
54-21 sort, store, prepare, convert, process, fabricate, or
54-22 manufacture products.
54-23 (2) 'Product' means a marketable product or component of
54-24 a product which has an economic value to the wholesale
54-25 or retail consumer and is ready to be used without
54-26 further alteration of its form or a product or material
54-27 which is marketed as a prepared material or is a
54-28 component in the manufacturing and assembly of other
54-29 finished products.
54-30 (3) 'Qualified investment property' means all real and
54-31 personal property purchased or acquired by a taxpayer
54-32 for use in the construction of an additional
54-33 manufacturing facility to be located in this state or
54-34 the expansion of an existing manufacturing facility
54-35 located in this state, including, but not limited to,
54-36 amounts expended on land acquisition, improvements,
54-37 buildings, building improvements, and machinery and
54-38 equipment to be used exclusively in the manufacturing
54-39 facility. The department shall promulgate rules
54-40 defining eligible qualified investment property pursuant
54-41 to this paragraph.
-54-
55- 1 (b) In the case of a taxpayer which has operated for the
55- 2 immediately preceding three years an existing
55- 3 manufacturing facility or manufacturing support facility
55- 4 and which first places in service during a taxable year
55- 5 qualified investment property in this state in a tier 2
55- 6 county designated pursuant to Code Section 48-7-15, there
55- 7 shall be allowed an optional credit against the tax
55- 8 imposed under this article for the ensuing ten taxable
55- 9 years following the taxable year the qualified investment
55-10 property was first placed in service, provided that such
55-11 qualified investment property remains in service. Such
55-12 optional credit shall be at the irrevocable election of
55-13 the taxpayer and shall be in lieu of the credit under Code
55-14 Section 48-7-18. No taxpayer who claims the credit under
55-15 Code Section 48-7-18 for any taxable year for a given
55-16 project shall be eligible to receive the credit under this
55-17 Code section with respect to the same project for any
55-18 taxable year. The aggregate amount of the credit allowed
55-19 under this Code section shall equal 8 percent of the cost
55-20 of all qualified investment property purchased or acquired
55-21 by the taxpayer and first placed in service during a
55-22 taxable year. The annual amount of such credit shall be
55-23 computed as follows:
55-24 (1) The taxable year in which such qualified investment
55-25 property is first placed in service shall be the base
55-26 year for purposes of calculating the credit provided for
55-27 by this Code section;
55-28 (2) The amount of tax owed by the taxpayer for the base
55-29 year and for each of the two immediately preceding
55-30 taxable years shall be determined without regard to any
55-31 credits and shall be added together and divided by
55-32 three. The resulting figure shall be the base year
55-33 average; and
55-34 (3) The credit available to the taxpayer to apply
55-35 against the tax liability of any year following the base
55-36 year but no later than the tenth year shall be the
55-37 lesser of the following amounts:
55-38 (A) Ninety percent of the excess of the tax of the
55-39 applicable year determined without regard to any
55-40 credits over the base year average; or
55-41 (B) The excess of the aggregate amount of the credit
55-42 allowed for the qualified investment property over the
-55-
56- 1 sum of the amounts of credit already used in the years
56- 2 following the base year.
56- 3 (c) The credit granted under subsection (b) of this Code
56- 4 section shall be subject to the following conditions and
56- 5 limitations:
56- 6 (1) In order to qualify as a basis for the credit, the
56- 7 qualified investment property must be first placed in
56- 8 service no sooner than January 1, 1996. The credit may
56- 9 only be taken with respect to qualified investment
56-10 property having an aggregate cost in excess of $10
56-11 million. For every year in which a taxpayer claims the
56-12 credit, the taxpayer shall attach a schedule to the
56-13 taxpayer's Georgia income tax return which will set
56-14 forth the following information, as a minimum:
56-15 (A) A description of the project;
56-16 (B) The amount of qualified investment property placed
56-17 in service during the taxable year;
56-18 (C) The base year average calculated under paragraph
56-19 (2) of subsection (b) of this Code section;
56-20 (D) The tax owed by the taxpayer for the current
56-21 taxable year determined without regard to any credits;
56-22 (E) The amount of the unused credit available at the
56-23 end of the prior tax year;
56-24 (F) The amount of tax credit utilized by the taxpayer
56-25 in the current taxable year; and
56-26 (G) The amount of tax credit remaining for subsequent
56-27 tax years;
56-28 (2) In the initial year in which the taxpayer claims the
56-29 credit granted in subsection (b) of this Code section,
56-30 the taxpayer shall include in the description of the
56-31 project required by subparagraph (A) of paragraph (1) of
56-32 this subsection information which demonstrates that the
56-33 project includes the placing in service of qualified
56-34 investment property having an aggregate cost in excess
56-35 of $10 million;
56-36 (3) Any lease for a period of five years or longer of
56-37 any real or personal property used in a new or expanded
56-38 manufacturing facility which would otherwise constitute
56-39 qualified investment property shall be treated as the
56-40 purchase or acquisition of qualified investment property
-56-
57- 1 by the lessee. The taxpayer may treat the full value of
57- 2 the leased property as qualified investment property in
57- 3 the taxable year in which the lease becomes binding on
57- 4 the lessor and the taxpayer if all other conditions of
57- 5 this subsection have been met; and
57- 6 (4) The utilization of the credit granted in subsection
57- 7 (b) of this Code section shall have no effect on the
57- 8 taxpayer's ability to claim depreciation for tax
57- 9 purposes on the assets acquired by the taxpayer nor
57-10 shall the credit have any effect on the taxpayer's basis
57-11 in such assets for the purpose of depreciation.
57-12 (d) No taxpayer shall be authorized to claim on a tax
57-13 return for a given project the credit provided for in this
57-14 Code section if such taxpayer claims on such tax return
57-15 any of the credits authorized under Code Section 48-7-15
57-16 or 48-7-16.
57-17 48-7-25.
57-18 (a) As used in this Code section, the term:
57-19 (1) 'Machinery and equipment' means all tangible
57-20 personal property used, directly or indirectly, to move,
57-21 sort, store, prepare, convert, process, fabricate, or
57-22 manufacture products.
57-23 (2) 'Product' means a marketable product or component of
57-24 a product which has an economic value to the wholesale
57-25 or retail consumer and is ready to be used without
57-26 further alteration of its form or a product or material
57-27 which is marketed as a prepared material or is a
57-28 component in the manufacturing and assembly of other
57-29 finished products.
57-30 (3) 'Qualified investment property' means all real and
57-31 personal property purchased or acquired by a taxpayer
57-32 for use in the construction of an additional
57-33 manufacturing facility to be located in this state or
57-34 the expansion of an existing manufacturing facility
57-35 located in this state, including, but not limited to,
57-36 amounts expended on land acquisition, improvements,
57-37 buildings, building improvements, and machinery and
57-38 equipment to be used exclusively in the manufacturing
57-39 facility. The department shall promulgate rules
57-40 defining eligible qualified investment property pursuant
57-41 to this paragraph.
-57-
58- 1 (b) In the case of a taxpayer which has operated for the
58- 2 immediately preceding three years an existing
58- 3 manufacturing facility or manufacturing support facility
58- 4 and which first places in service during a taxable year
58- 5 qualified investment property in this state in a tier 3
58- 6 county designated pursuant to Code Section 48-7-15, there
58- 7 shall be allowed an optional credit against the tax
58- 8 imposed under this article for the ensuing ten taxable
58- 9 years following the taxable year the qualified investment
58-10 property was first placed in service, provided that such
58-11 qualified investment property remains in service. Such
58-12 optional credit shall be at the irrevocable election of
58-13 the taxpayer and shall be in lieu of the credit under Code
58-14 Section 48-7-19. No taxpayer who claims the credit under
58-15 Code Section 48-7-19 for any taxable year for a given
58-16 project shall be eligible to receive the credit under this
58-17 Code section with respect to the same project for any
58-18 taxable year. The aggregate amount of the credit allowed
58-19 under this Code section shall equal 6 percent of the cost
58-20 of all qualified investment property purchased or acquired
58-21 by the taxpayer and first placed in service during a
58-22 taxable year. The annual amount of such credit shall be
58-23 computed as follows:
58-24 (1) The taxable year in which such qualified investment
58-25 property is first placed in service shall be the base
58-26 year for purposes of calculating the credit provided for
58-27 by this Code section;
58-28 (2) The amount of tax owed by the taxpayer for the base
58-29 year and for each of the two immediately preceding
58-30 taxable years shall be determined without regard to any
58-31 credits and shall be added together and divided by
58-32 three. The resulting figure shall be the base year
58-33 average; and
58-34 (3) The credit available to the taxpayer to apply
58-35 against the tax liability of any year following the base
58-36 year but no later than the tenth year shall be the
58-37 lesser of the following amounts:
58-38 (A) Ninety percent of the excess of the tax of the
58-39 applicable year determined without regard to any
58-40 credits over the base year average; or
58-41 (B) The excess of the aggregate amount of the credit
58-42 allowed for the qualified investment property over the
-58-
59- 1 sum of the amounts of credit already used in the years
59- 2 following the base year.
59- 3 (c) The credit granted under subsection (b) of this Code
59- 4 section shall be subject to the following conditions and
59- 5 limitations:
59- 6 (1) In order to qualify as a basis for the credit, the
59- 7 qualified investment property must be first placed in
59- 8 service no sooner than January 1, 1996. The credit may
59- 9 only be taken with respect to qualified investment
59-10 property having an aggregate cost in excess of $20
59-11 million. For every year in which a taxpayer claims the
59-12 credit, the taxpayer shall attach a schedule to the
59-13 taxpayer's Georgia income tax return which will set
59-14 forth the following information, as a minimum:
59-15 (A) A description of the project;
59-16 (B) The amount of qualified investment property placed
59-17 in service during the taxable year;
59-18 (C) The base year average calculated under paragraph
59-19 (2) of subsection (b) of this Code section;
59-20 (D) The tax owed by the taxpayer for the current
59-21 taxable year determined without regard to any credits;
59-22 (E) The amount of unused tax credit available at the
59-23 end of the prior tax year;
59-24 (F) The amount of tax credit utilized by the taxpayer
59-25 in the current taxable year; and
59-26 (G) The amount of tax credit remaining for subsequent
59-27 tax years;
59-28 (2) In the initial year in which the taxpayer claims the
59-29 credit granted in subsection (b) of this Code section,
59-30 the taxpayer shall include in the description of the
59-31 project required by subparagraph (A) of paragraph (1) of
59-32 this subsection information which demonstrates that the
59-33 project includes the placing in service of qualified
59-34 investment property having an aggregate cost in excess
59-35 of $20 million;
59-36 (3) Any lease for a period of five years or longer of
59-37 any real or personal property used in a new or expanded
59-38 manufacturing facility which would otherwise constitute
59-39 qualified investment property shall be treated as the
59-40 purchase or acquisition of qualified investment property
-59-
60- 1 by the lessee. The taxpayer may treat the full value of
60- 2 the leased property as qualified investment property in
60- 3 the taxable year in which the lease becomes binding on
60- 4 the lessor and the taxpayer if all other conditions of
60- 5 this subsection have been met; and
60- 6 (4) The utilization of the credit granted in subsection
60- 7 (b) of this Code section shall have no effect on the
60- 8 taxpayer's ability to claim depreciation for tax
60- 9 purposes on the assets acquired by the taxpayer nor
60-10 shall the credit have any effect on the taxpayer's basis
60-11 in such assets for the purpose of depreciation.
60-12 (d) No taxpayer shall be authorized to claim on a tax
60-13 return for a given project the credit provided for in this
60-14 Code section if such taxpayer claims on such tax return
60-15 any of the credits authorized under Code Section 48-7-15
60-16 or 48-7-16.
60-17 48-7-26.
60-18 (a) As used in this Code section, the term:
60-19 (1) 'Machinery and equipment' means all tangible
60-20 personal property used directly in a minimum 10 percent
60-21 reduction in permit by relinquishment or transfer of
60-22 annual permitted water usage from existing permitted
60-23 ground-water sources.
60-24 (2) 'Qualified water conservation investment' means all
60-25 spending by a taxpayer for use in this state for the
60-26 modification of existing manufacturing processes, for
60-27 the construction of a new water conservation facility,
60-28 or for the expansion of an existing water conservation
60-29 facility provided that such modification, construction,
60-30 or expansion results in a minimum 10 percent reduction
60-31 in permit by relinquishment or transfer of annual
60-32 permitted water usage from existing permitted
60-33 ground-water sources and has been certified pursuant to
60-34 rules and regulations promulgated by the Department of
60-35 Natural Resources as necessary to promote its
60-36 ground-water management efforts for areas with a
60-37 multiyear record of consumption at, near, or above
60-38 sustainable use signaled by declines in ground-water
60-39 pressure, threats of salt-water intrusion, need to
60-40 develop alternate sources to accommodate economic growth
60-41 and development, or any other indication of growing
60-42 inadequacy of the existing resource.
-60-
61- 1 (3) 'Water conservation' means a minimum 10 percent
61- 2 reduction in permit by relinquishment or transfer of
61- 3 annual permitted water usage from existing permitted
61- 4 ground-water sources due to increased efficiencies or
61- 5 recycling of water which results in reduced ground-water
61- 6 usage, or a change from a ground-water source to a
61- 7 surface-water source or an alternate source.
61- 8 (4) 'Water conservation facility' means any facility,
61- 9 buildings, and machinery and equipment used in the water
61-10 conservation process resulting in a minimum 10 percent
61-11 reduction in permit by relinquishment or transfer of
61-12 annual permitted water usage from existing ground-water
61-13 sources, provided that up to 10 percent of any building
61-14 that is a component of a water conservation facility may
61-15 be used for office space to house support staff for the
61-16 operation.
61-17 (b) Any taxpayer who financially participates in qualified
61-18 water conservation investment in this state shall be
61-19 allowed a credit against the tax imposed under this
61-20 article in the taxable year following that in which the
61-21 modified manufacturing process or the new or expanded
61-22 water conservation facility has been placed in service and
61-23 in which the taxpayer has initiated a minimum 10 percent
61-24 reduction in permit by relinquishment or transfer of
61-25 annual permitted water usage from existing permitted
61-26 ground-water sources. This credit shall have a maximum
61-27 carry forward of ten years, provided that such property
61-28 remains in service, that the reduction in permit is
61-29 maintained, and that the property continues to be used by
61-30 the taxpayer. The amount of the credit allowed under this
61-31 Code section shall be a percentage of the taxpayer's
61-32 qualified water conservation investment. For projects of
61-33 $50,000.00 to $499,999.00, the credit for such taxpayer
61-34 shall be 10 percent; for projects of $500,000.00 to
61-35 $799,999.00, the credit shall be 8 percent; for projects
61-36 of $800,000.00 to $999,999.00, the credit shall be 6
61-37 percent; and for projects of $1 million or more, the
61-38 credit shall be 5 percent. The amount of the credit which
61-39 may be used in any tax year shall not exceed 50 percent of
61-40 that year's tax liability as determined without regard to
61-41 any other credits.
61-42 (c) The credit granted under subsection (b) of this Code
61-43 section shall be subject to the following conditions and
61-44 limitations:
-61-
62- 1 (1) In order to qualify as a basis for the credit, the
62- 2 modified manufacturing process or the new or expanded
62- 3 water conservation facility must not be placed in
62- 4 service before January 1, 1997. The credit may be only
62- 5 taken with respect to qualified water conservation
62- 6 investment in a project costing $50,000.00 or more. For
62- 7 every year in which the taxpayer claims the credit, the
62- 8 taxpayer shall attach a schedule to the taxpayer's
62- 9 income tax return setting forth as a minimum the
62-10 following information:
62-11 (A) The amounts, dates, and nature of the qualified
62-12 water conservation investments which have allowed a
62-13 modified manufacturing process or a new or expanded
62-14 water conservation facility to be placed in service in
62-15 the prior taxable year;
62-16 (B) The amount and date of reduction in permitted
62-17 ground-water usage occurring as a result of this
62-18 investment;
62-19 (C) The amount of tax credit claimed for these
62-20 investments for the current taxable year;
62-21 (D) The amounts of qualified water conservation
62-22 investment reported for tax years preceding the prior
62-23 taxable year;
62-24 (E) The amounts of tax credit which have been utilized
62-25 in prior taxable years;
62-26 (F) The amounts of tax credit which has been carried
62-27 over from prior years;
62-28 (G) The amounts of tax credit allowed under this Code
62-29 section being utilized by the taxpayer in the current
62-30 taxable year; and
62-31 (H) The amounts of tax credit to be carried over to
62-32 subsequent years;
62-33 (2) In the initial year in which the taxpayer claims the
62-34 credit granted in subsection (b) of this Code section,
62-35 the taxpayer shall include in the description of the
62-36 project required by subparagraph (A) of paragraph (1) of
62-37 this subsection information which demonstrates that the
62-38 project completed with the qualified water conservation
62-39 investment had an aggregate cost of $50,000.00 or more.
62-40 The taxpayer shall also include a copy of the
62-41 certification by the Department of Natural Resources
-62-
63- 1 under paragraph (2) of subsection (a) of this Code
63- 2 section;
63- 3 (3) Any lease for a period of five years or longer of
63- 4 any real or personal property resulting from qualified
63- 5 water conservation investment shall be treated as
63- 6 qualified water conservation investment by the lessee.
63- 7 The taxpayer may treat the full value of the leased
63- 8 property as qualified water conservation investment in
63- 9 the taxable year in which the lease becomes binding on
63-10 the lessor and the taxpayer if all other conditions of
63-11 this subsection have been met;
63-12 (4) The utilization of the credit granted in this Code
63-13 section shall have no effect on the taxpayer's ability
63-14 to claim depreciation for tax purposes on assets
63-15 acquired by the taxpayer, nor shall the credit have any
63-16 effect on the taxpayer's basis in such assets for the
63-17 purpose of depreciation; and
63-18 (5) If, after receiving approval for the water
63-19 conservation credit, the annual permit for water usage
63-20 from the same ground-water source is increased, any
63-21 unused credits will expire immediately.
63-22 48-7-27.
63-23 (a) As used in this Code section, the term:
63-24 (1) 'Qualified water conservation facility' means any
63-25 facility including buildings, machinery, and equipment
63-26 used in the water conservation process provided:
63-27 (A) The use of the facility results in reduced
63-28 ground-water usage or utilizes a surface-water source;
63-29 and
63-30 (B) The use of the facility has been certified by the
63-31 Department of Natural Resources as necessary to
63-32 promote its ground-water management efforts for areas
63-33 with a multiyear record of consumption at, near, or
63-34 above sustainable use signaled by declines in
63-35 ground-water pressure, threats of salt-water
63-36 intrusion, need to develop alternate sources to
63-37 accommodate economic growth and development, or any
63-38 other indication of growing inadequacy of the existing
63-39 resource.
63-40 (2) 'Shift from ground-water usage' means a minimum 10
63-41 percent transfer of annual permitted ground-water usage
-63-
64- 1 from ground-water sources due to the purchase of water
64- 2 from a qualified water conservation facility.
64- 3 (b) In the case of a taxpayer which first shifts from
64- 4 ground-water usage during a taxable year, there shall be
64- 5 allowed an annual credit against the tax imposed under
64- 6 this article starting in the fourth taxable year following
64- 7 the taxable year in which the the shift from ground-water
64- 8 usage occurs. The amount of the credit shall be computed
64- 9 as follows:
64-10 (1) The amount of the credit allowed under this Code
64-11 section shall be $.0001 per gallon of the total gallons
64-12 of relinquished and transferred annual ground-water
64-13 permit issued after July 1, 1996; and
64-14 (2) The amount of the credit which may be used in any
64-15 tax year shall not exceed 50 percent of that year's tax
64-16 liability as determined without regard to other credits.
64-17 (c) The credit granted under this Code section shall be
64-18 subject to the following conditions and limitations:
64-19 (1) For every year in which the taxpayer claims the
64-20 credit, the taxpayer shall attach a schedule to the
64-21 taxpayer's income tax return setting forth as a minimum
64-22 the following information:
64-23 (A) The ground-water usage permitted the taxpayer in
64-24 the first permit issued after July 1, 1996;
64-25 (B) The ground-water usage permitted the taxpayer in
64-26 the tax year four years earlier than the current tax
64-27 year;
64-28 (C) The ground-water usage permitted the taxpayer in
64-29 the current year; and
64-30 (D) The credit utilized by the taxpayer in the current
64-31 year;
64-32 (2) In the initial year in which the taxpayer claims the
64-33 credit granted in subsection (b) of this Code section,
64-34 the taxpayer shall include a copy of the certification
64-35 by the Department of Natural Resources under paragraph
64-36 (2) of subsection (a) of this Code section; and
64-37 (3) If, after receiving approval for the water
64-38 conservation credit, the annual permit for water usage
64-39 from the same ground-water source is increased,
-64-
65- 1 eligibility to use such credits shall expire
65- 2 immediately.
65- 3 48-7-28.
65- 4 Reserved.
65- 5 48-7-29.
65- 6 Every corporation subject to taxation under this chapter
65- 7 shall make a return stating specifically the items of its
65- 8 gross income and the deductions and credits allowed by
65- 9 this chapter. The income of two or more corporations shall
65-10 not be included in a single return except with the express
65-11 consent of the commissioner. When a receiver, trustee in
65-12 bankruptcy, or assignee is operating the property or
65-13 business of a corporation, the receiver, trustee, or
65-14 assignee shall make returns for the corporation in the
65-15 same manner and form as the corporation is required to
65-16 make returns. Any tax due on the basis of returns made by
65-17 a receiver, trustee, or assignee shall be collected in the
65-18 same manner as if collected from the corporation of whose
65-19 business or property he or she has custody and control.
65-20 48-7-30.
65-21 (a) Returns of corporations made on the basis of a
65-22 calendar year shall be filed on or before the fifteenth
65-23 day of March following the close of the calendar year, and
65-24 returns of corporations made on the basis of a fiscal year
65-25 shall be filed on or before the fifteenth day of the third
65-26 month following the close of the fiscal year. Returns
65-27 required for a taxable year relating to returns of DISC's
65-28 and former DISC's and FSC's shall be filed on or before
65-29 the fifteenth day of the ninth month following the close
65-30 of the taxable year. The commissioner may allow further
65-31 time for filing returns whenever in the commissioner's
65-32 judgment good cause exists for the extension. In case a
65-33 taxpayer is granted an extension of time to file a return,
65-34 the commissioner may require a tentative return to be
65-35 filed on or before the due date of the return for which
65-36 the extension is granted. A tentative return shall be made
65-37 on the usual form, shall be plainly marked 'tentative,'
65-38 shall state the estimated amount of the tax believed to be
65-39 due, and shall be properly signed by the taxpayer.
65-40 (b) Any taxpayer may file an estimated income tax return
65-41 within the taxpayer's taxable year in compliance with
-65-
66- 1 rules and regulations promulgated by the commissioner.
66- 2 Estimated returns shall be plainly marked 'estimated.'
66- 3 (c) In case of failure to file an income tax return on the
66- 4 date prescribed for the filing, such date to be determined
66- 5 with regard to any extension of time for filing, there
66- 6 shall be added to the amount of tax required to be shown
66- 7 on the return 5 percent of the amount of the tax if the
66- 8 failure is for not more than one month with an additional
66- 9 5 percent for each additional month or fraction of a month
66-10 during which the failure to file continues. No penalty
66-11 shall be assessed pursuant to this Code section which
66-12 exceeds in the aggregate 25 percent of the amount of the
66-13 tax. No penalty shall be assessed pursuant to this Code
66-14 section when it is shown that the failure is due to
66-15 reasonable cause and not due to willful neglect.
66-16 (d) For the purposes of this Code section, the amount of
66-17 tax required to be shown on the return shall be reduced by
66-18 the amount of any part of the tax which is paid on or
66-19 before the date prescribed for payment of the tax and by
66-20 the amount of any credit against the tax which may be
66-21 claimed on the return.
66-22 (e) With respect to any return, the amount of the addition
66-23 under subsection (a) of this Code section shall be reduced
66-24 by the amount of the addition under paragraph (1) of
66-25 subsection (a) of Code Section 48-7-42 for any month to
66-26 which an addition to tax applies under both subsection (a)
66-27 of this Code section and paragraph (1) of subsection (a)
66-28 of Code Section 48-7-42.
66-29 (f) No penalty due to late filing shall be incurred by a
66-30 taxpayer if the taxpayer attaches to his or her return a
66-31 copy of an approved extension of time within which to file
66-32 the taxpayer's federal income tax return which has been
66-33 granted by the Internal Revenue Service and also files a
66-34 state return within the period of time specified in the
66-35 extension. In such instances, the taxpayer need not apply
66-36 to the commissioner for an extension of time within which
66-37 to file the taxpayer's state return.
66-38 48-7-31.
66-39 (a) The following organizations shall be exempt from
66-40 taxation imposed by Code Section 48-7-7 unless the
66-41 exemption is denied under subsection (b) or (c) of this
66-42 Code section:
-66-
67- 1 (1) Those organizations described by Section 501(c),
67- 2 501(d), 501(e), 664, or 401 of the Internal Revenue Code
67- 3 of 1986. Organizations described in this paragraph shall
67- 4 be exempt from taxation for state purposes in the same
67- 5 manner and to the same extent as for federal purposes;
67- 6 and
67- 7 (2) Insurance companies which pay to the state a tax
67- 8 upon premium income.
67- 9 (b)(1) An organization requesting exemption under
67-10 paragraph (1) of subsection (a) of this Code section
67-11 shall file a written application with the commissioner.
67-12 The commissioner shall issue a determination letter or
67-13 ruling to an organization requesting the exemption and
67-14 shall either grant or disallow the requested exempt
67-15 status. Until a determination letter granting exempt
67-16 status is issued by the commissioner, no exempt status
67-17 shall exist. Those organizations which have an exempt
67-18 status in effect under Section 501(c), 501(d), 501(e),
67-19 664, or 401 of the Internal Revenue Code of 1986 on
67-20 January 1, 1987, shall retain the exempt status unless
67-21 revoked as provided by law. The commissioner may issue
67-22 rules governing the filing of written applications and
67-23 the issuance of determination letters.
67-24 (2)(A) The commissioner may revoke the exempt status
67-25 of any organization described in paragraph (1) of
67-26 subsection (a) of this Code section when:
67-27 (i) The Internal Revenue Service revokes the exempt
67-28 status of the organization;
67-29 (ii) The organization ceases to be organized or
67-30 operated in the manner in which it was organized or
67-31 operated at the time the exempt status was granted;
67-32 (iii) The organization engages in any prohibited
67-33 transaction as set forth in the Internal Revenue
67-34 Code of 1986; or
67-35 (iv) There is any material change in the character
67-36 or purpose of the organization or in the mode of
67-37 operation of the organization.
67-38 (B) Revocation of an exempt status shall revoke the
67-39 exempt status retroactively to the time of the
67-40 occurrence of the disqualifying event or events. All
67-41 exempt organizations shall immediately notify the
67-42 commissioner in writing of the occurrence of any of
-67-
68- 1 the disqualifying events described in subparagraph (A)
68- 2 of this paragraph or of receipt by the organization of
68- 3 a notice of intent to terminate its exempt status by
68- 4 the Internal Revenue Service. The statute of
68- 5 limitations governing the assessment of any taxes
68- 6 determined to be due this state due to the revocation
68- 7 of exempt status shall be tolled as of the date of the
68- 8 occurrence of the disqualifying event or events
68- 9 described in subparagraph (A) of this paragraph. The
68-10 commissioner at any time may require an organization
68-11 which is exempt from taxation to file an information
68-12 return stating the organization's gross income,
68-13 receipts, disbursements, accumulation of income, and
68-14 other data deemed necessary for the proper
68-15 administration of this Code section.
68-16 (c)(1) A tax is imposed on income of an organization
68-17 exempted pursuant to paragraph (1) of subsection (a) of
68-18 this Code section when the income is derived from trade
68-19 or business which is not related to exempt purposes of
68-20 organizations described in paragraph (1) of subsection
68-21 (a) of this Code section. This income shall be referred
68-22 to as unrelated business income and shall be the income
68-23 which is defined in Section 512 of the Internal Revenue
68-24 Code of 1986. The tax imposed on unrelated business
68-25 income shall be at the rate provided in Code Section
68-26 48-7-7.
68-27 (2) If an organization is exempt under Section 501(c)(4)
68-28 of the United States Internal Revenue Code of 1986, if
68-29 the organization makes payments of death benefits as a
68-30 result of the death of a member of the organization, and
68-31 if payments have been made by the organization for at
68-32 least five years prior to January 1, 1977, the payments
68-33 shall be deductible from the unrelated business income
68-34 tax which might be owed by the organization. The payment
68-35 of such death benefits shall not operate to generate a
68-36 rebate or a refund. If the amount of death benefits paid
68-37 within the taxable year exceeds the unrelated business
68-38 income tax owed for the same taxable year, the excess
68-39 may be carried forward for a period of five years.
68-40 48-7-32.
68-41 (a) When the commissioner has reason to believe that any
68-42 taxpayer conducts his or her trade or business so as to
68-43 distort directly or indirectly the taxpayer's true net
68-44 income or the net income properly attributable to this
-68-
69- 1 state, whether by the arbitrary shifting of income,
69- 2 through price fixing, charges for service, or otherwise,
69- 3 as a result of which the net income is arbitrarily
69- 4 assigned to one or another unit in a group of taxpayers
69- 5 conducting business under a substantially common control,
69- 6 the commissioner may require the facts as the commissioner
69- 7 deems necessary for the proper computation of the entire
69- 8 net income and the net income properly attributable to
69- 9 this state. In determining the computation, the
69-10 commissioner shall consider the fair profit which would
69-11 normally arise from the conduct of the trade or business.
69-12 (b)(1) The commissioner may determine the amount of
69-13 taxable income of any one or more corporations for a
69-14 calendar or fiscal year when a corporation:
69-15 (A) Subject to taxation under this chapter conducts
69-16 its business in such manner as to benefit either
69-17 directly or indirectly the members or stockholders of
69-18 the corporation or any person interested in the
69-19 business of the corporation by selling its products or
69-20 the goods or commodities in which it deals at less
69-21 than the fair price which might be obtained for the
69-22 goods or commodities;
69-23 (B) A substantial portion of whose capital stock is
69-24 directly or indirectly owned by another corporation
69-25 acquires and disposes of the products of the
69-26 corporation so owning a substantial portion of its
69-27 stock in such a manner as to create a loss or improper
69-28 net income for either of the corporations; or
69-29 (C) Directly or indirectly owning a substantial
69-30 portion of the stock of another corporation acquires
69-31 and disposes of the products of the corporation of
69-32 which it so owns a substantial portion of the stock in
69-33 such a manner as to create a loss or improper net
69-34 income for either of the corporations.
69-35 (2) In the commissioner's determination, the
69-36 commissioner shall consider the reasonable profits
69-37 which, but for the arrangement or understanding, might
69-38 or could have been obtained by the corporation or
69-39 corporations subject to taxation under this chapter from
69-40 dealing in such products, goods, or commodities.
-69-
70- 1 48-7-33.
70- 2 Whenever in the opinion of the commissioner it is
70- 3 necessary to examine any copy of the federal income tax
70- 4 returns of any taxpayer in order to audit properly the
70- 5 state returns of the taxpayer, the commissioner shall have
70- 6 the right to examine the federal returns and all
70- 7 statements, inventories, and schedules in support of the
70- 8 returns.
70- 9 48-7-34.
70-10 (a) Except in accordance with proper judicial order or as
70-11 otherwise provided by law, it is unlawful for the
70-12 commissioner, other officer, employee, or agent, or any
70-13 former officer, employee, or agent to divulge or make
70-14 known in any manner the amount of income or any
70-15 particulars set forth or disclosed in any report or return
70-16 required under the law of this state or any return or
70-17 return information required by the Internal Revenue Code
70-18 when the information or return is received from the
70-19 Internal Revenue Service or submitted by the taxpayer as
70-20 provided by the laws of this state. Nothing contained in
70-21 this Code section shall be construed to prohibit the
70-22 publication of statistics so presented as to prevent the
70-23 identification of particular reports or returns and the
70-24 items thereof, or the inspection by the Attorney General
70-25 or other legal representative of the state, or use as
70-26 evidence, of the report or return of a taxpayer in the
70-27 event of any action or proceeding involving any tax
70-28 liability of the taxpayer. Reports and returns shall be
70-29 preserved for three years and thereafter until the
70-30 commissioner orders them to be destroyed.
70-31 (b) The commissioner may permit the commissioner of
70-32 internal revenue of the United States, the proper officer
70-33 of any state imposing an income tax similar to that
70-34 imposed by this chapter, or the authorized representative
70-35 of either such officer to inspect the income tax returns
70-36 of any taxpayer, or may furnish to the officer or the
70-37 officer's authorized representative an abstract of the
70-38 return of income of any taxpayer or supply the officer or
70-39 the officer's authorized representative with information
70-40 concerning any item of income contained in any return or
70-41 disclosed by the report of any investigation of the income
70-42 or return of income of any taxpayer. The permission shall
70-43 be granted or the information shall be furnished to the
70-44 officer or the officer's representative only if:
-70-
71- 1 (1) The request is only for state tax information
71- 2 including federal tax information required by the state
71- 3 to be filed by the taxpayer with the taxpayer's state
71- 4 return;
71- 5 (2) The requested information will be used solely for
71- 6 tax purposes;
71- 7 (3) The requesting state has a confidentiality statute
71- 8 which complies with the requirements of Section
71- 9 6103(p)(8) of the Internal Revenue Code; and
71-10 (4) The statutes of the United States or of such other
71-11 state, as the case may be, grant substantially similar
71-12 privileges to the proper officer of this state charged
71-13 with the administration of this chapter.
71-14 (c) The commissioner may permit the disclosure of
71-15 inventories, depreciable assets, accumulated depreciation,
71-16 and book value of depreciable assets to local tax
71-17 authorities in this state to be used solely for ad valorem
71-18 tax purposes, provided that the furnishing of the
71-19 information is not prohibited by Section 6103 of the
71-20 Internal Revenue Code; and provided, further, that the
71-21 furnishing of the information to the local tax authorities
71-22 shall not be deemed to change the confidential character
71-23 of the information, and any persons receiving the
71-24 information pursuant to this subsection shall be subject
71-25 to Code Section 48-7-35, relating to the sanctions to be
71-26 imposed for the unauthorized disclosure of confidential
71-27 material.
71-28 (d) This Code section shall not be construed to prohibit
71-29 persons or groups of persons other than employees of the
71-30 department from having access to tax information where
71-31 necessary for data processing operations and maintenance
71-32 of data processing equipment, provided the persons or
71-33 groups of persons have obtained prior approval from the
71-34 commissioner and are subject to the direct security
71-35 control of department personnel during all periods of
71-36 access. Any person who divulges or makes known any tax
71-37 information obtained under this subsection shall be
71-38 subject to the same civil and criminal penalties as those
71-39 provided for divulgence of information by employees of the
71-40 department.
71-41 (e) Notwithstanding any other law, this Code section shall
71-42 remain in full force and effect unless specific reference
71-43 is made in such other law to this Code section and to the
-71-
72- 1 disclosure of income tax information contained in any
72- 2 report or return required under this Code section.
72- 3 48-7-35.
72- 4 (a) It shall be unlawful for any person to violate any
72- 5 provision of Code Section 48-7-34 when the violation
72- 6 involves the divulging of information concerning income
72- 7 taxes.
72- 8 (b) Any person who violates subsection (a) of this Code
72- 9 section shall be guilty of a misdemeanor.
72-10 (c) In addition to the penalty provided in subsection (b)
72-11 of this Code section, if the offender is an officer or
72-12 employee of the state, the offender shall be dismissed
72-13 from office and shall be incapable of holding any public
72-14 office in this state for a period of five years after such
72-15 dismissal.
72-16 48-7-36.
72-17 The total amount of tax imposed by this chapter on
72-18 corporations shall be paid to the commissioner on or
72-19 before March 15, following the close of the calendar year.
72-20 If the return of a corporation is made on the basis of a
72-21 fiscal year, the tax shall be paid to the commissioner on
72-22 or before the fifteenth day of the third month following
72-23 the close of the fiscal year.
72-24 48-7-37.
72-25 (a) If any amount of tax imposed by this chapter is not
72-26 paid on or before the last date prescribed for payment,
72-27 interest on the payment at the rate specified in Code
72-28 Section 48-2-40 shall be paid for the period from the last
72-29 date prescribed for payment to the date paid.
72-30 (b) The last date prescribed for payment of the tax shall
72-31 be determined without regard to any:
72-32 (1) Extension of time for payment; or
72-33 (2) Notice and demand for payment issued by reason of
72-34 jeopardy prior to the last date otherwise prescribed for
72-35 the payment.
72-36 (c) If the amount of any tax imposed by this chapter is
72-37 reduced by reason of a carry back of a net operating loss,
72-38 the reduction in tax shall not affect the computation of
72-39 interest under this Code section for the period ending
-72-
73- 1 with the last day of the taxable year in which the net
73- 2 operating loss arises.
73- 3 (d) Except as otherwise specifically provided by law:
73- 4 (1) Interest prescribed under this Code section shall be
73- 5 paid upon notice and demand and shall be assessed,
73- 6 collected, and paid in the same manner as the tax. Any
73- 7 reference to the tax imposed by this chapter shall be
73- 8 deemed also to refer to interest imposed by this Code
73- 9 section on the tax;
73-10 (2) No interest under this Code section shall be imposed
73-11 on the interest provided by this Code section;
73-12 (3) Interest shall be imposed under subsection (a) of
73-13 this Code section on any assessable penalty, additional
73-14 amount, or addition to the tax only if the assessable
73-15 penalty, additional amount, or addition to the tax is
73-16 not paid within ten days from the date of notice and
73-17 demand for the payment. Interest shall be imposed only
73-18 for the period from the date of the notice and demand to
73-19 the date of payment; and
73-20 (4) If notice and demand are made for the payment of any
73-21 amount and if the amount is paid within ten days after
73-22 the date of the notice and demand, interest under this
73-23 Code section on the amount so paid shall not be imposed
73-24 for the period after the date of the notice and demand.
73-25 (e) Interest prescribed under this Code section may be
73-26 assessed and collected at any time during the period
73-27 within which the tax to which the interest relates may be
73-28 collected.
73-29 48-7-38.
73-30 (a) Except as otherwise provided in this Code section, the
73-31 amount of income tax imposed by this chapter shall be
73-32 assessed within the time periods specified in Code Section
73-33 48-2-49.
73-34 (b)(1) In the case of income received by a corporation,
73-35 the tax shall be assessed within three years after the
73-36 return is filed, and any proceeding in court without
73-37 assessment for the collection of the tax shall begin
73-38 within 18 months after written request for the
73-39 commencement of the proceeding (filed after the return
73-40 is made) by the corporation. No such proceeding shall
73-41 begin after the expiration of three years from the date
-73-
74- 1 the return is filed. This paragraph shall not apply in
74- 2 the case of a corporation unless:
74- 3 (A) The written request notifies the commissioner that
74- 4 the corporation contemplates dissolution at or before
74- 5 the expiration of the 18 month period;
74- 6 (B) The dissolution is begun in good faith before the
74- 7 expiration of the 18 month period; and
74- 8 (C) The dissolution is completed.
74- 9 (2) If the taxpayer omits from gross income an amount
74-10 properly includable in gross income which exceeds 25
74-11 percent of the amount of gross income less business
74-12 expenses stated in the return, the tax may be assessed
74-13 or a proceeding in court for the collection of the tax
74-14 may begin without assessment at any time within six
74-15 years after the return is filed.
74-16 (3) If the taxpayer omits from gross income an amount
74-17 properly includable in gross income as an amount
74-18 distributed in liquidation of a corporation, the tax may
74-19 be assessed or a proceeding in court for the collection
74-20 of the tax may begin without assessment at any time
74-21 within five years after the return is filed.
74-22 (c) When the assessment of any income tax has been made
74-23 within the period of limitation properly applicable to the
74-24 assessment, the tax may be collected by execution. The
74-25 general provisions for tax executions as contained in
74-26 Chapter 3 of this title shall apply to executions pursuant
74-27 to this subsection.
74-28 (d)(1) When a taxpayer's amount of net income for any
74-29 year under this chapter as returned to the United States
74-30 Department of the Treasury is changed or corrected by
74-31 the commissioner of internal revenue or other officer of
74-32 the United States of competent authority, the taxpayer,
74-33 within 180 days after final determination of the changed
74-34 or corrected net income, shall make a return to the
74-35 commissioner of the changed or corrected income, and the
74-36 commissioner shall make assessment or the taxpayer shall
74-37 claim a refund based on the change or correction within
74-38 one year from the date the return required by this
74-39 paragraph is filed. If the taxpayer does not make the
74-40 return reflecting the changed or corrected net income
74-41 and the commissioner receives from the United States
74-42 government or one of its agents a report reflecting the
-74-
75- 1 changed or corrected net income, the commissioner shall
75- 2 make assessment for taxes due based on the change or
75- 3 correction within five years from the date the report
75- 4 from the United States government or its agent is
75- 5 actually received.
75- 6 (2) In the event the taxpayer fails to notify the
75- 7 commissioner of the final determination of the
75- 8 taxpayer's United States income taxes, the commissioner
75- 9 shall proceed to determine, upon evidence brought to the
75-10 commissioner's attention or otherwise acquired, the
75-11 corrected income of the taxpayer for the fiscal or
75-12 calendar year. If additional tax is determined to be
75-13 due, the tax shall be assessed and collected. If it is
75-14 determined that there has been an overpayment of tax for
75-15 the year, the taxpayer, by the failure to notify the
75-16 commissioner as required in paragraph (1) of this
75-17 subsection, shall forfeit the taxpayer's right to any
75-18 refund due by reason of the change or correction. A
75-19 taxpayer who so fails to notify the commissioner,
75-20 however, shall be entitled to equitable recoupment of 90
75-21 percent of any overpayment so determined against any
75-22 additional tax liability so determined, the remaining 10
75-23 percent of the overpayment being totally forfeited as a
75-24 penalty for failure to make a return as required by
75-25 paragraph (1) of this subsection.
75-26 48-7-39.
75-27 Whenever any corporation has been dissolved or the assets
75-28 of the corporation for any reason have passed entirely
75-29 from the control of the corporation into the possession of
75-30 its former stockholders or other persons without the
75-31 payment of income taxes due the state, the commissioner
75-32 shall have the right to bring action against any or all
75-33 persons possessing the assets for the collection of any
75-34 income taxes that may be due the state up to the value of
75-35 the assets. If the assets have come into the possession of
75-36 more than one person, each person shall have the right to
75-37 prorate the amount of the tax according to the value of
75-38 the assets coming into each person's possession.
75-39 48-7-40.
75-40 No action for the purpose of restraining the assessment or
75-41 collection of any tax under this chapter shall be
75-42 maintained in any court.
-75-
76- 1 48-7-41.
76- 2 Whenever the commissioner in the commissioner's discretion
76- 3 determines that a person is not liable for the tax for an
76- 4 entire year because of moving into the state or moving out
76- 5 of the state, the commissioner may prorate the amount of
76- 6 the tax due the state and also may require the taxpayer to
76- 7 prorate any exemptions on the basis of the time spent
76- 8 within the state. The commissioner in the commissioner's
76- 9 reasonable discretion shall be the sole judge as to when
76-10 this Code section shall apply.
76-11 48-7-42.
76-12 (a)(1) In case of failure to pay:
76-13 (A) The amount shown as tax on a return on or before
76-14 the date prescribed for payment of the tax, such date
76-15 to be determined with regard to any extension of time
76-16 for payment, there shall be added to the amount of tax
76-17 required to be shown on the return one-half of 1
76-18 percent of the amount of the tax if the failure is for
76-19 not more than one month and with an additional
76-20 one-half of 1 percent for each additional month or
76-21 fraction of a month during which the failure
76-22 continues. For the purposes of this subparagraph, the
76-23 amount of tax shown on the return shall be reduced,
76-24 for the purpose of computing the addition for any
76-25 month, by the amount of any part of the tax which is
76-26 paid on or before the beginning of the month and by
76-27 the amount of any credit against the tax which is
76-28 claimed on the return;
76-29 (B) Any amount in respect of any tax required to be
76-30 shown on a return which is not so shown within ten
76-31 days of the date of the notice and demand for the
76-32 payment, the amount of tax stated in the notice and
76-33 demand shall be increased by one-half of 1 percent of
76-34 the amount of the tax if the failure is for not more
76-35 than one month and by an additional one-half of 1
76-36 percent for each additional month or fraction of a
76-37 month during which the failure continues. For the
76-38 purposes of this subparagraph, the amount of tax
76-39 stated in the notice and demand shall be reduced, for
76-40 the purpose of computing the addition for any month,
76-41 by the amount of any part of the tax which is paid
76-42 before the beginning of the month.
-76-
77- 1 (2) No penalty shall be assessed pursuant to this
77- 2 subsection which exceeds in the aggregate 25 percent of
77- 3 the amount of the tax or when it is shown that the
77- 4 failure is due to reasonable cause and not due to
77- 5 willful neglect.
77- 6 (b) With respect to any return, the maximum amount of the
77- 7 addition permitted under subparagraph (a)(1)(B) of this
77- 8 Code section shall be reduced by the amount of the
77- 9 addition under subsection (c) of Code Section 48-7-30
77-10 which is attributable to the tax for which the notice and
77-11 demand are made and which is not paid within ten days of
77-12 such notice and demand.
77-13 (c) If the amount required to be shown as tax on a return
77-14 is less than the amount shown as tax on the return,
77-15 subparagraph (a)(1)(A) of this Code section shall be
77-16 applied by substituting the lower amount.
77-17 (d) For purposes of subsections (e) and (f) of this Code
77-18 section, the term 'underpayment' means a deficiency as
77-19 defined in Code Section 48-7-2.
77-20 (e) If any part of any underpayment of tax required to be
77-21 shown on a return is due to a negligent or intentional
77-22 disregard of rules and regulations, but without intent to
77-23 defraud, an amount equal to 5 percent of the underpayment
77-24 shall be added to the tax.
77-25 (f) If any part of any underpayment of tax required to be
77-26 shown on a return is due to fraud, an amount equal to 50
77-27 percent of the underpayment shall be added to the tax.
77-28 This amount shall be in lieu of any amount determined
77-29 under subsection (e) of this Code section. If any penalty
77-30 is assessed under this subsection for an underpayment of
77-31 tax which is required to be shown on a return, no penalty
77-32 under Code Section 48-7-30 or subsection (a) of this Code
77-33 section shall be assessed with respect to the same
77-34 underpayment.
77-35 48-7-43.
77-36 (a) As used in this Code section, the term 'estimated tax'
77-37 means the amount which the corporation estimates as the
77-38 amount of income tax imposed by Code Section 48-7-7 less
77-39 the amount which the corporation estimates as the sum of
77-40 credits allowable by law against the tax.
77-41 (b) In general, every domestic and foreign corporation
77-42 subject to taxation under Code Section 48-7-7 shall pay
-77-
78- 1 estimated tax for the taxable year if its net income for
78- 2 the taxable year as defined in Code Section 48-7-9 can
78- 3 reasonably be expected to exceed $25,000.00.
78- 4 48-7-44.
78- 5 If the requirements of Code Section 48-7-43 are first met
78- 6 as shown in the left-hand column of the following table,
78- 7 then the estimated tax shall be due as shown in the
78- 8 remaining columns:
78- 9 Before the first day of
78-10 the fourth month of the
78-11 taxable year 25 25 25 25
78-12 After the last day of
78-13 the third month and
78-14 before the first day of
78-15 the sixth month of the
78-16 taxable year 33 1/3 33 1/3 33 1/3
78-17 After the last day of
78-18 the fifth month and
78-19 before the first day of
78-20 the ninth month of the
78-21 taxable year 50 50
78-22 After the last day of
78-23 the eighth month and
78-24 before the first day of
78-25 the twelfth month of
78-26 the taxable year 100
78-27 48-7-45.
78-28 (a) The amount of estimated tax paid under this chapter
78-29 for any taxable year shall be allowed as a credit to the
78-30 taxpayer against the taxpayer's income tax liability under
78-31 Code Section 48-7-7 for the taxable year.
-78-
79- 1 (b) To the extent that the estimated tax credit, together
79- 2 with other credits allowed by law, is in excess of the
79- 3 taxpayer's income tax liability for a taxable year as
79- 4 shown on an income tax return filed by the taxpayer for
79- 5 that year, the overpayment shall be considered as taxes
79- 6 erroneously paid and shall be credited or refunded as
79- 7 provided in this subsection. The overpayment shall be
79- 8 credited to the taxpayer's estimated income tax liability
79- 9 for the succeeding taxable year unless the taxpayer claims
79-10 a refund for the overpayment. The commissioner may
79-11 consider any final return showing an overpayment as a
79-12 claim for refund per se. An overpayment shall bear no
79-13 interest if credit is given for the overpayment. Amounts
79-14 refunded as overpayments shall bear interest at the rate
79-15 of 9 percent per annum but only after 90 days from the
79-16 filing date of the final return showing the overpayment or
79-17 90 days from the due date of the final return, whichever
79-18 is later.
79-19 48-7-46.
79-20 The commissioner may disregard a fractional part of a
79-21 dollar in the allowance of any amount as a credit or
79-22 refund or in the assessment or collection of any amount as
79-23 a deficiency or underpayment.
79-24 48-7-47.
79-25 In the administration and enforcement of this chapter with
79-26 respect to a taxpayer whose income may be subject to the
79-27 current income tax payment laws of two or more tax
79-28 jurisdictions, including this state, the commissioner may
79-29 make reciprocal arrangements with the tax authorities of
79-30 the other jurisdictions for the relief of the taxpayer
79-31 from the multiple burden imposed by the operation of
79-32 several current income tax payment laws."
79-33 SECTION 1.
79-34 Code Section 2-7-154 of the Official Code of Georgia
79-35 Annotated, relating to the powers of the Commissioner of
79-36 Agriculture with respect to boll weevil eradication, is
79-37 amended by striking in its entirety subparagraph (A) of
79-38 paragraph (8) and inserting in lieu thereof a new
79-39 subparagraph (A) to read as follows:
79-40 "(A) The Commissioner shall adopt rules and
79-41 regulations defining the criteria to be used in
-79-
80- 1 determining financial hardship; provided, however,
80- 2 that no exemption shall be granted to any cotton
80- 3 grower who, after the amount of assessments and
80- 4 penalties otherwise due has been subtracted from his
80- 5 or her federal taxable net income, as defined in Code
80- 6 Section 48-7-27 the United States Internal Revenue
80- 7 Code of 1986, has a net income exceeding $15,000.00
80- 8 for the year in which he or she seeks an exemption;".
80- 9 SECTION 2.
80-10 Chapter 3 of Title 12 of the Official Code of Georgia
80-11 Annotated, relating to parks, historic areas, memorials, and
80-12 recreation, is amended by striking in its entirety Article
80-13 8, relating to nongame wildlife conservation and wildlife
80-14 habitat acquisition programs, and inserting in lieu thereof
80-15 the following:
80-16 12-3-600 through 12-3-602.
80-17 Reserved."
80-18 SECTION 3.
80-19 Part 2 of Article 2 of Chapter 12 of Title 16 of the
80-20 Official Code of Georgia Annotated, relating to bingo, is
80-21 amended by striking in its entirety Code Section 16-12-55,
80-22 relating to certification of tax exempt status of an
80-23 organization, and inserting in lieu thereof a new Code
80-24 Section 16-12-55 to read as follows:
80-25 "16-12-55.
80-26 The director shall upon the request of any prosecuting
80-27 attorney or his or her designee certify the status of any
80-28 organization as to that organization's exemption from
80-29 payment of state income taxes as a nonprofit organization.
80-30 The director shall also upon request issue a certificate
80-31 indicating whether any particular organization holds a
80-32 currently valid license to operate a bingo game. Such
80-33 certificates properly executed shall be admissible in
80-34 evidence in any prosecution and Code Section 48-7-60
80-35 48-7-34, relative to the disclosure of income tax
80-36 information, shall not apply to the furnishing of such
80-37 certificate."
-80-
81- 1 SECTION 4.
81- 2 Chapter 15 of Title 17 of the Official Code of Georgia
81- 3 Annotated, relating to victim compensation, is amended by
81- 4 striking in its entirety Code Section 17-15-8, relating to
81- 5 required findings and amount of award, and inserting in lieu
81- 6 thereof a new Code Section 17-15-8 to read as follows:
81- 7 "17-15-8.
81- 8 (a) No award may be made unless the board or director
81- 9 finds that:
81-10 (1) A crime was committed;
81-11 (2) The crime directly resulted in physical injury,
81-12 financial hardship, or death of the victim;
81-13 (3) Police records show that the crime was promptly
81-14 reported to the proper authorities. In no case may an
81-15 award be made where the police records show that such
81-16 report was made more than 72 hours after the occurrence
81-17 of such crime unless the board, for good cause shown,
81-18 finds the delay to have been justified; and
81-19 (4) The applicant has pursued restitution rights against
81-20 any person who committed the crime unless the board or
81-21 director determines that such action would not be
81-22 feasible.
81-23 The board, upon finding that any claimant or award
81-24 recipient has not fully cooperated with all law
81-25 enforcement agencies, may deny, reduce, or withdraw any
81-26 award.
81-27 (b) Any award made pursuant to this chapter may be in an
81-28 amount not exceeding actual expenses, including
81-29 indebtedness reasonably incurred for medical expenses,
81-30 loss of wages, funeral expenses, mental health counseling,
81-31 or support for dependents of a deceased victim necessary
81-32 as a direct result of the injury or hardship upon which
81-33 the claim is based.
81-34 (c)(1) Notwithstanding any other provisions of this
81-35 chapter, no award made under the provisions of this
81-36 chapter shall exceed $1,000.00 in the aggregate;
81-37 provided, however, with respect to any claim filed with
81-38 the board as a result of a crime occurring on or after
81-39 July 1, 1994, no award made under the provisions of this
81-40 chapter payable to a victim and to all other claimants
81-41 sustaining economic loss because of injury to or death
-81-
82- 1 of such victim shall exceed $5,000.00 in the aggregate;
82- 2 provided, however, with respect to any claim filed with
82- 3 the board as a result of a crime occurring on or after
82- 4 July 1, 1995, no award made under the provisions of this
82- 5 chapter payable to a victim and to all other claimants
82- 6 sustaining economic loss because of injury to or death
82- 7 of such victim shall exceed $10,000.00 in the aggregate.
82- 8 (2) No award under this chapter for the following losses
82- 9 shall exceed the maximum amount authorized:
82-10 Category Maximum Award
82-11 Lost Wages $ 5,000.00
82-12 Funeral Expenses 3,000.00
82-13 Financial Hardship or Loss of Support 5,000.00
82-14 Medical 5,000.00
82-15 Counseling 2,500.00
82-16 (d) In determining the amount of an award, the director
82-17 and board shall determine whether because of his or her
82-18 conduct the victim of such crime contributed to the
82-19 infliction of his or her injury or financial hardship, and
82-20 the director and board may reduce the amount of the award
82-21 or reject the claim altogether in accordance with such
82-22 determination.
82-23 (e) The director and board may reject an application for
82-24 an award when the claimant has failed to cooperate in the
82-25 verification of the information contained in the
82-26 application.
82-27 (f) Any award made pursuant to this chapter may be reduced
82-28 by or set off by the amount of any payments received or to
82-29 be received as a result of the injury:
82-30 (1) From or on behalf of the person who committed the
82-31 crime; or
82-32 (2) From any other private or public source, including
82-33 an award of workers' compensation pursuant to the laws
82-34 of this state,
82-35 provided that private sources shall not include
82-36 contributions received from family members or persons or
82-37 private organizations making charitable donations to a
82-38 victim.
82-39 (g) No award made pursuant to this chapter is subject to
82-40 garnishment, execution, or attachment other than for
-82-
83- 1 expenses resulting from the injury which is the basis for
83- 2 the claim. (h) An award made pursuant to this chapter shall not
83- 4 constitute a payment which is treated as ordinary income
83- 5 under either the provisions of Chapter 7 of Title 48 or,
83- 6 to the extent lawful, under the United States Internal
83- 7 Revenue Code.
83- 8 (i)(h) Notwithstanding any other provisions of this
83- 9 chapter to the contrary, no awards from state funds shall
83-10 be paid prior to July 1, 1989.
83-11 (j)(i) In any case where a crime results in death, the
83-12 spouse, children, parents, or siblings of such deceased
83-13 victim may be considered eligible for an award for the
83-14 cost of psychological counseling which is deemed necessary
83-15 as a direct result of said criminal incident. The maximum
83-16 award for said counseling expenses shall not exceed
83-17 $2,500.00 in the aggregate."
83-18 SECTION 5.
83-19 Code Section 19-11-9 of the Official Code of Georgia
83-20 Annotated, relating to the location of absent parents by the
83-21 Department of Human Resources, is amended by striking
83-22 subsection (c) in its entirety and inserting in lieu thereof
83-23 a new subsection (c) to read as follows:
83-24 "(c) In order to carry out the responsibilities imposed
83-25 under this article, the department may request information
83-26 and assistance from any governmental department, board,
83-27 commission, bureau, or agency in locating the absent
83-28 parents of children for whom the department has assignment
83-29 of child support rights. The commissioner of human
83-30 resources or his or her duly authorized representative
83-31 shall be entitled to have access to all pertinent
83-32 information which is within the custody of any
83-33 governmental department, board, commission, bureau, or
83-34 agency including, but not limited to, income tax
83-35 information contained in any report or return required
83-36 under Articles 1 through 6 of Chapter 7 of Title 48 by the
83-37 Department of Revenue, including information from federal
83-38 income tax returns required to be included as a part of
83-39 any state report or return, which information but for this
83-40 Code section would not be subject to disclosure pursuant
83-41 to Code Section 48-7-60 and which is relative to such
83-42 parents' location, income, or property, provided that any
83-43 tax information secured from the federal government by the
-83-
84- 1 Department of Revenue, pursuant to the express provisions
84- 2 of Section 6103 of the Internal Revenue Code, may not be
84- 3 disclosed by that department pursuant to this subsection.
84- 4 Any person receiving any tax information or tax returns
84- 5 under the authority granted in this subsection shall be
84- 6 considered either an officer or employee as those terms
84- 7 are used in subsection (a) of Code Section 48-7-60; and,
84- 8 as such an officer or employee, any person receiving any
84- 9 tax information or returns under the authority of this
84-10 Code section shall be subject to Code Section 48-7-61,
84-11 relating to the sanctions to be imposed for the
84-12 unauthorized disclosure of confidential material."
84-13 SECTION 6.
84-14 Code Section 36-62-5.1 of the Official Code of Georgia
84-15 Annotated, relating to joint development authorities, is
84-16 amended by striking subsection (e) in its entirety and
84-17 inserting in lieu thereof a new subsection (e) to read as
84-18 follows:
84-19 "(e) A joint authority created by two or more contiguous
84-20 counties pursuant to this Code section must be an active,
84-21 bona fide joint authority; must have a board of directors;
84-22 must meet at least quarterly; and must develop an
84-23 operational business plan. A county may belong to only
84-24 one such joint authority. A business enterprise as
84-25 defined under subsection (a) of Code Section 48-7-40
84-26 located within the jurisdiction of a joint authority
84-27 established by two or more contiguous counties will
84-28 qualify for an additional $500.00 tax credit for each new
84-29 full-time employee position created. The $500.00 job tax
84-30 credit authorized by this subsection shall be subject to
84-31 all the conditions and limitations specified under Code
84-32 Section 48-7-40 48-7-15, as amended."
84-33 SECTION 7.
84-34 Chapter 9 of Title 37 of the Official Code of Georgia
84-35 Annotated, relating to payment of expenses for support,
84-36 treatment, and care of patients in state institutions
84-37 generally, is amended by striking in its entirety paragraph
84-38 (3) of Code Section 37-9-2, relating to definitions
84-39 applicable under said chapter, and inserting in lieu thereof
84-40 a new paragraph (3) to read as follows:
84-41 "(3) 'Income' 'Income,' except for patients who are
84-42 residents of other states, means that amount determined
84-43 by adding to the gross federal taxable income as now or
-84-
85- 1 hereafter defined in the United States Internal Revenue
85- 2 Code of 1986 Georgia income tax laws, minus deductions
85- 3 and personal exemptions as authorized by such income tax
85- 4 laws, the items listed in this paragraph, if such items
85- 5 are not already included in gross federal taxable income
85- 6 as defined above. For a patient who is a resident of
85- 7 another state, 'income' means the same as above except
85- 8 no deductions will be made for any deductions or
85- 9 personal exemptions as authorized by Georgia income tax
85-10 laws. The following items are to be added,
85-11 respectively:
85-12 (A) Any amounts received by or on behalf of the person
85-13 liable for cost of care from accident insurance or
85-14 workers' compensation for total or partial incapacity
85-15 to work, plus the amount of any damages received by or
85-16 on behalf of the person liable for cost of care,
85-17 whether by suit or agreement, on account of such
85-18 injuries or sickness;
85-19 (B) The net income from property acquired by gift,
85-20 bequest, devise, or descent;
85-21 (C) Interest upon obligations of the United States
85-22 government or of this state or of a political
85-23 subdivision thereof;
85-24 (D) The net income from individual holdings of stock
85-25 in banks and trust companies incorporated under the
85-26 banking laws of this state or of the United States;
85-27 (E) Retirement income, social security benefits,
85-28 veterans' benefits, and any other benefits that could
85-29 be applied for the support of the patient; and
85-30 (F) The net income from any other assets, including
85-31 but not limited to personal property, real property,
85-32 or mixed property, and any other property or estate
85-33 wherever located and in whatever form, inclusive of
85-34 any assets sold or transferred within a period of 90
85-35 days prior to the date services were first rendered to
85-36 the patient by a hospital."
85-37 SECTION 8.
85-38 Chapter 9 of Title 37 of the Official Code of Georgia
85-39 Annotated, relating to payment of expenses for support,
85-40 treatment, and care of patients in state institutions
85-41 generally, is amended by striking in its entirety
85-42 subparagraph (F) of paragraph (5) of Code Section 37-9-2,
-85-
86- 1 relating to definitions applicable under said chapter, and
86- 2 inserting in lieu thereof a new subparagraph (F) to read as
86- 3 follows:
86- 4 "(F) A stepparent or any other person residing with
86- 5 and providing support of a patient under 18 years of
86- 6 age who has not been legally adopted by such
86- 7 individual, with maximum liability limited to the
86- 8 amount such stepparent or other individual is
86- 9 authorized by Georgia federal income tax laws under
86-10 the United States Internal Revenue Code of 1986 to
86-11 claim as a standard deduction and personal exemption
86-12 for the patient; provided, however, that this
86-13 limitation shall not apply to liability pursuant to
86-14 other provisions of this chapter regarding hospital,
86-15 health, and other medical insurance, program, or plan
86-16 benefits or subrogation rights."
86-17 SECTION 9.
86-18 Chapter 9 of Title 37 of the Official Code of Georgia
86-19 Annotated, relating to payment of expenses for support,
86-20 treatment, and care of patients in state institutions
86-21 generally, is amended by striking in its entirety Code
86-22 Section 37-9-7, relating to authority of the Department of
86-23 Human Resources to inquire into and determine income and
86-24 assets, and inserting in lieu thereof a new Code Section
86-25 37-9-7 to read as follows:
86-26 "37-9-7.
86-27 (a) The department, through its duly authorized agents,
86-28 shall have the authority to investigate or otherwise
86-29 determine the income and assets of the patient or his the
86-30 patient's estate and when necessary the income and assets
86-31 of all other persons liable for the cost of care of such
86-32 patient in order to determine ability to pay cost of care.
86-33 All persons liable for cost of care must provide signed
86-34 consent forms necessary to authorize and conduct an
86-35 investigation to determine the income and assets of such
86-36 persons in order to determine ability to pay cost of care.
86-37 The department shall further have the authority to
86-38 contract with any person, firm, or corporation which it
86-39 finds necessary to provide the information appropriate to
86-40 the carrying out of its duties under this chapter.
86-41 (b) The department shall require declarations to be filed
86-42 by the patient or other persons liable for cost of care
86-43 necessary to determine the assessments required by this
-86-
87- 1 chapter and shall prescribe the form and content thereof.
87- 2 All such declarations are to be regarded as essential to
87- 3 carrying out the public policy of this state; and any
87- 4 person who knowingly falsifies such declarations shall be
87- 5 charged as for false swearing. Failure by the patient or
87- 6 other persons liable for cost of care to (1) provide
87- 7 information required by such declarations or (2) provide
87- 8 signature of consent for the department to conduct an
87- 9 investigation authorized by subsection (a) of this Code
87-10 section shall create a rebuttable presumption that the
87-11 patient or other persons liable for cost of care consent
87-12 to and agree with the assessment of the full cost of care,
87-13 and the declaration shall contain on its face,
87-14 conspicuously and in clear language, a statement to that
87-15 effect. (c) The department, through its duly authorized agents,
87-17 shall have access to Georgia income tax records for the
87-18 purpose of obtaining necessary information to enforce this
87-19 chapter. Upon the request of the department or its duly
87-20 authorized agents, the state revenue commissioner and his
87-21 agents or employees shall disclose such income tax
87-22 information contained in any report or return required
87-23 under Georgia law as may be necessary to enforce the
87-24 provisions of this chapter. Any tax information secured
87-25 from the federal government by the Department of Revenue
87-26 pursuant to express provisions of Section 6103 of the
87-27 Internal Revenue Code may not be disclosed by the
87-28 Department of Revenue pursuant to this subsection. Any
87-29 person receiving any tax information or tax returns under
87-30 the authority of this subsection shall be considered
87-31 either an officer or employee as those terms are used in
87-32 subsection (a) of Code Section 48-7-60; and as such an
87-33 officer or employee, any person receiving any tax
87-34 information or returns under the authority of this
87-35 subsection shall be subject to Code Section 48-7-61.
87-36 (d)(c) Any evidence, records, or other information
87-37 obtained by the department or its duly authorized agents
87-38 pursuant to the authority of this Code section shall be
87-39 confidential and shall be used by the department or its
87-40 agents only for the purposes of enforcing this chapter and
87-41 shall not be released for any purpose other than a hearing
87-42 provided for by this chapter.
87-43 (e)(d) The department shall develop procedures to ensure
87-44 that persons with no other documentation or evidence may
-87-
88- 1 sign an affidavit attesting to their indigent financial
88- 2 status."
88- 3 SECTION 10.
88- 4 Article 1 of Chapter 13 of Title 44 of the Official Code of
88- 5 Georgia Annotated, relating to constitutional exemptions
88- 6 from levy and sale of property, is amended by striking in
88- 7 its entirety Code Section 44-13-1.1, relating to the
88- 8 definition of the term "dependent," and inserting in lieu
88- 9 thereof a new Code Section 44-13-1.1 to read as follows:
88-10 "44-13-1.1.
88-11 As used in this article, the term 'dependent' means a
88-12 person whom the debtor may claim as a dependent for
88-13 federal income tax purposes pursuant to Code Section
88-14 48-7-26 the United States Internal Revenue Code of 1986."
88-15 SECTION 11.
88-16 Article 1 of Chapter 13 of Title 44 of the Official Code of
88-17 Georgia Annotated, relating to constitutional exemptions
88-18 from levy and sale of property, is amended by striking in
88-19 its entirety Code Section 44-13-20, relating to reversion of
88-20 property set apart for spouse, children, or dependents, and
88-21 inserting in lieu thereof a new Code Section 44-13-20 to
88-22 read as follows:
88-23 "44-13-20.
88-24 Property set apart pursuant to Code Section 44-13-2 for a
88-25 spouse, for a spouse and minor children, for minor
88-26 children alone, or for dependents of a debtor (1) upon the
88-27 death of the spouse or the spouse's remarriage, when set
88-28 apart to the spouse alone, (2) upon the attaining of the
88-29 age of majority by the minor children or their marriage
88-30 during minority, when set apart for the minor children,
88-31 (3) upon the death or remarriage of the spouse and the
88-32 attaining of the age of majority by the minor children or
88-33 the marriage of the minor children, when set apart to the
88-34 spouse and minor children, and (4) upon a former dependent
88-35 person's no longer being eligible to be claimed by the
88-36 debtor as a dependent for federal income tax purposes
88-37 pursuant to Code Section 48-7-26 the United States
88-38 Internal Revenue Code of 1986, shall revert to the estate
88-39 from which it was set apart unless it was sold or
88-40 reinvested pursuant to this article, in which case this
88-41 Code section shall apply to and follow all the
-88-
89- 1 reinvestments unless the fee simple has been sold as
89- 2 provided in this article."
89- 3 SECTION 12.
89- 4 Article 2 of Chapter 2 of Title 48 of the Official Code of
89- 5 Georgia Annotated, relating to the administration of the
89- 6 Department of Revenue and certain tax laws, is amended by
89- 7 striking in its entirety Code Section 48-2-56, relating to
89- 8 liens for taxes and their priority, and inserting in lieu
89- 9 thereof a new Code Section 48-2-56 to read as follows:
89-10 "48-2-56.
89-11 (a) Except as otherwise provided in this Code section,
89-12 liens for all taxes due the state or any county or
89-13 municipality in the state shall arise as of the time the
89-14 taxes become due and unpaid and all tax liens shall cover
89-15 all property in which the taxpayer has any interest from
89-16 the date the lien arises until such taxes are paid.
89-17 (b) Except as otherwise provided in this Code section,
89-18 liens for taxes are superior to all other liens and shall
89-19 be paid before any other debt, lien, or claim of any kind.
89-20 Liens for taxes shall rank among themselves as follows:
89-21 (1) Taxes due the state;
89-22 (2) Taxes due counties of the state;
89-23 (3) Taxes due school and other special tax districts of
89-24 the state; and
89-25 (4) Taxes due municipal corporations of the state.
89-26 (c) The lien for taxes imposed by Article 1 of Chapter 9
89-27 of this title, relating to motor fuel taxes, shall not
89-28 have priority as against:
89-29 (1) Any bona fide mortgagee, holder, or transferee of a
89-30 deed to secure debt; or
89-31 (2) Any pledgee, judgment creditor, or purchaser of or
89-32 from persons liable for the tax imposed by Article 1 of
89-33 Chapter 9 of this title
89-34 where the rights of such mortgagee, holder, or transferee
89-35 of a deed to secure debt, pledgee, judgment creditor, or
89-36 purchaser have attached prior to the time notice of the
89-37 lien has been filed by the commissioner in the office of
89-38 the superior court of the county in which the principal
89-39 place of business is located or in the county where
-89-
90- 1 property of the person liable for payment of the motor
90- 2 fuel tax is located.
90- 3 (d)(1) Liens for any ad valorem taxes shall cover the
90- 4 property of taxpayers liable to tax from the time fixed
90- 5 by law for valuation of the property in each year until
90- 6 such taxes are paid and shall cover the property of tax
90- 7 collectors or tax commissioners and their sureties from
90- 8 the time of giving bond until all the taxes for which
90- 9 they are responsible are paid.
90-10 (2) The lien for any ad valorem tax shall not be
90-11 superior to the title and operation of a security deed
90-12 when the tax represents an assessment upon property of
90-13 the taxpayer other than property specifically covered by
90-14 the title and operation of the security deed.
90-15 (3) When real property located within this state is
90-16 transferred between the date on which any ad valorem tax
90-17 lien on the property vests and the date on which the tax
90-18 evidenced by the tax lien becomes due and payable, the
90-19 ad valorem tax lien on the transferred property shall
90-20 not extend to cover any other real property of the
90-21 transferor.
90-22 (e) The lien for taxes imposed by the provisions of
90-23 Article 2 of Chapter 7 of this title, relating to certain
90-24 income taxes, shall:
90-25 (1) Arise and cover all property of the taxpayer as of
90-26 the time a tax execution for these taxes is entered upon
90-27 the general execution docket; and
90-28 (2) Not be superior to the lien of a prior recorded
90-29 instrument securing a bona fide debt.
90-30 Before the lien provided for in this subsection shall
90-31 attach to real property it shall be recorded in the county
90-32 where the real property is located. (f) The lien for taxes imposed by the provisions of
90-34 Article 5 of Chapter 7 of this title, relating to
90-35 withholding taxes, shall: (1) Arise and attach to all property of the defaulting
90-37 employer or other person required to deduct and withhold
90-38 on the date of the assessment of the taxes by operation
90-39 of law or by action of the commissioner; (2) Not be superior to the lien of a prior recorded
90-41 instrument securing a bona fide debt; and (3) Not be superior to the lien of a subsequent bona
91- 2 fide purchaser or lender for value recorded prior to the
91- 3 time the execution for the tax has been entered on the
91- 4 general execution docket in the office of the superior
91- 5 court of the county in which the property affected is
91- 6 located. Before the lien provided for in this subsection shall
91- 8 attach to real property it shall be recorded in the county
91- 9 where the real property is located.
91-10 (g)(f)(1) The lien of a specific or occupation tax shall
91-11 not be superior to the title and operation of a security
91-12 deed recorded prior to the time the execution for the
91-13 tax has been entered on the general execution docket in
91-14 the office of the clerk of the superior court of the
91-15 county in which the affected property is located.
91-16 (2) As used in this subsection, the term 'specific or
91-17 occupation tax' means all state, county, and municipal
91-18 taxes and all state licenses and fees except:
91-19 (A) The taxes imposed by Article 1 of Chapter 9 of
91-20 this title;
91-21 (B) Ad valorem taxes; and
91-22 (C) The taxes imposed by Article 2 of Chapter 7 of
91-23 this title.; and (D) The taxes imposed by Article 5 of Chapter 7 of
91-25 this title.
91-26 The term includes, but is not limited to, sales and use
91-27 taxes, corporate net worth taxes, estate taxes,
91-28 real-estate transfer taxes, taxes on financial
91-29 institutions, alcohol and tobacco taxes, road taxes on
91-30 motor carriers, excise taxes, license fees, tax
91-31 liabilities of corporate officers and business
91-32 successors, and tax collections of a person who is a
91-33 dealer under Chapter 8 of this title relating to sales
91-34 and use taxation.
91-35 (h)(g) Liens for taxes existing prior to July 1, 1983,
91-36 shall not be changed by this Code section. On and after
91-37 July 1, 1983, this Code section shall govern the time of
91-38 creation of all tax liens and the priority of all tax
91-39 liens."
-91-
92- 1 SECTION 13.
92- 2 Code Section 48-6-93 of the Official Code of Georgia
92- 3 Annotated, relating to the local business license tax for
92- 4 depository financial institutions, is amended by striking
92- 5 subsection (e) in its entirety and inserting in lieu thereof
92- 6 a new subsection (e) to read as follows:
92- 7 "(e) Any tax paid by a depository financial institution
92- 8 pursuant to this Code section and Code Section 48-6-95
92- 9 shall be credited dollar for dollar against any state
92-10 corporate income tax liability of such institution for the
92-11 tax year during which any business and occupation tax
92-12 authorized by this Code section is paid. Such credit
92-13 shall be subject to the provisions contained in paragraph
92-14 (10) of subsection (b) of Code Section 48-7-21 48-7-7."
92-15 SECTION 14.
92-16 Code Section 48-11-14 of the Official Code of Georgia
92-17 Annotated, relating to registration, reports, and tax
92-18 payments of persons acquiring cigars and cigarettes subject
92-19 to tax under Code Section 48-11-13, is amended by striking
92-20 subsection (d) in its entirety and inserting in lieu thereof
92-21 a new subsection (d) to read as follows:
92-22 "(d) Except as otherwise provided in this Code section,
92-23 the sanctions and penalties set forth in Code Sections
92-24 48-11-15, 48-11-17, 48-11-18, and 48-11-20 through
92-25 48-11-24 and in Code Sections 48-7-2 48-7-3, 48-10-16, and
92-26 48-13-38 shall be imposed where applicable for any
92-27 violations of this chapter by consumers."
92-28 SECTION 15.
92-29 Chapter 1 of Title 49 of the Official Code of Georgia
92-30 Annotated, relating to general provisions applicable to
92-31 social services, is amended by striking in its entirety Code
92-32 Section 49-1-9, relating to the Home Delivered Meals,
92-33 Transportation Services for the Elderly, and Preschool
92-34 Children with Special Needs Fund, and inserting in lieu
92-35 thereof the following:
92-36 "49-1-9.
92-37 Reserved."
92-38 SECTION 16.
92-39 Code Section 50-27-3 of the Official Code of Georgia
92-40 Annotated, relating to definitions applicable to the
-92-
93- 1 "Georgia Lottery for Education Act," is amended by striking
93- 2 paragraph (13) in its entirety and inserting in lieu thereof
93- 3 a new paragraph (13) to read as follows:
93- 4 "(13) 'Minority business' means any business which is
93- 5 owned by:
93- 6 (A) An individual who is a member of a minority who
93- 7 reports as his or her personal income for Georgia
93- 8 federal income tax purposes the income of such
93- 9 business;
93-10 (B) A partnership in which a majority of the ownership
93-11 interest is owned by one or more members of a minority
93-12 who report as their personal income for Georgia
93-13 federal income tax purposes more than 50 percent of
93-14 the income of the partnership; or
93-15 (C) A corporation organized under the laws of this
93-16 state in which a majority of the common stock is owned
93-17 by one or more members of a minority who report as
93-18 their personal income for Georgia federal income tax
93-19 purposes more than 50 percent of the distributed
93-20 earnings of the corporation."
93-21 SECTION 1.
93-22 Chapter 8 of Title 48 of the Official Code of Georgia
93-23 Annotated, relating to sales and use taxation, is amended by
93-24 adding a new Code section immediately following Code Section
93-25 48-8-1, to be designated Code Section 48-8-1.1, to read as
93-26 follows:
93-27 "48-8-1.1.
93-28 (a) As used in this Code section, the term 'building and
93-29 construction materials' means all building and
93-30 construction materials, supplies, fixtures, or equipment,
93-31 any combination of such items, and any other leased or
93-32 purchased articles when the materials, supplies, fixtures,
93-33 equipment, or articles are to be utilized or consumed
93-34 during construction or are to be incorporated into
93-35 construction work pursuant to a bona fide written
93-36 construction contract.
93-37 (b) The increased rate of state sales and use taxation
93-38 from 4 percent to 4.5 percent shall not apply with respect
93-39 to the sale or use of building and construction materials
93-40 when the contract pursuant to which the materials are
-93-
94- 1 purchased or used was advertised for bid prior to January
94- 2 1, 1998, and the contract was entered into as a result of
94- 3 a bid actually submitted in response to the advertisement
94- 4 prior to January 1, 1998; provided, however, that any such
94- 5 sale or use shall remain fully taxable at the prior rate
94- 6 of taxation.
94- 7 (c) With respect to services which are regularly billed on
94- 8 a monthly basis, the increased rate of state sales and use
94- 9 taxation from 4 percent to 4.5 percent shall apply to
94-10 services billed on or after January 1, 1998; provided,
94-11 however, that any such services billed prior to such date
94-12 shall remain fully taxable at the prior rate of taxation."
94-13 SECTION 2.
94-14 Said chapter is further amended by striking subsections (a)
94-15 and (b) of Code Section 48-8-3.1, relating to sales tax
94-16 exemptions as applied to motor fuels, in their entirety and
94-17 inserting in their respective places new subsections (a) and
94-18 (b) to read as follows:
94-19 "(a) Except as provided in subsection (b) of this Code
94-20 section, sales of motor fuels as defined in paragraph (9)
94-21 of Code Section 48-9-2 shall be exempt from the first 3
94-22 percent of the sales and use taxes levied or imposed by
94-23 this article and shall be subject to the remaining 1 1.5
94-24 percent of the sales and use taxes levied or imposed by
94-25 this article.
94-26 (b) Sales of motor fuel other than gasoline which motor
94-27 fuel other than gasoline is purchased for purposes other
94-28 than propelling motor vehicles on public highways as
94-29 defined in Article 1 of Chapter 9 of this title shall be
94-30 fully subject to the 4 4.5 percent sales and use taxes
94-31 levied or imposed by this article unless otherwise
94-32 specifically exempted by this article."
94-33 SECTION 3.
94-34 Said chapter is further amended by striking Code Section
94-35 48-8-30, relating to the rate and imposition of the state
94-36 sales and use tax, in its entirety and inserting in its
94-37 place a new Code Section 48-8-30 to read as follows:
94-38 "48-8-30.
94-39 (a) There is levied and imposed a tax on the retail
94-40 purchase, retail sale, rental, storage, use, or
-94-
95- 1 consumption of tangible personal property and on the
95- 2 services described in this article.
95- 3 (b)(1) Every purchaser of tangible personal property at
95- 4 retail in this state shall be liable for a tax on the
95- 5 purchase at the rate of 4 4.5 percent of the sales price
95- 6 of the purchase. The tax shall be paid by the purchaser
95- 7 to the retailer making the sale, as provided in this
95- 8 article. The retailer shall remit the tax to the
95- 9 commissioner as provided in this article and, when
95-10 received by the commissioner, the tax shall be a credit
95-11 against the tax imposed on the retailer. Every person
95-12 making a sale or sales of tangible personal property at
95-13 retail in this state shall be a retailer and a dealer
95-14 and shall be liable for a tax on the sale at the rate of
95-15 4 4.5 percent of the gross sale or gross sales, or the
95-16 amount of taxes collected by him that person from his
95-17 the purchaser or purchasers, whichever is greater.
95-18 (2) No retail sale shall be taxable to the retailer or
95-19 dealer which is not taxable to the purchaser at retail.
95-20 (c) Upon the first instance of use, consumption,
95-21 distribution, or storage within this state of tangible
95-22 personal property purchased at retail outside this state,
95-23 the owner or user of the property shall be a dealer and
95-24 shall be liable for a tax at the rate of 4 4.5 percent of
95-25 the cost price or fair market value of the property,
95-26 whichever is the lesser. This subsection shall not be
95-27 construed to require a duplication in the payment of the
95-28 tax. The tax imposed by this subsection shall be subject
95-29 to the credit otherwise granted by this article for like
95-30 taxes previously paid in another state.
95-31 (c.1)(1) Every purchaser of tangible personal property
95-32 at retail outside this state from a dealer, as defined
95-33 in subparagraph (H) of paragraph (3) of Code Section
95-34 48-8-2, when such property is to be used, consumed,
95-35 distributed, or stored within this state, shall be
95-36 liable for a tax on the purchase at the rate of 4 4.5
95-37 percent of the sales price of the purchase. It shall be
95-38 prima-facie evidence that such property is to be used,
95-39 consumed, distributed, or stored within this state if
95-40 that property is delivered in this state to the
95-41 purchaser or agent thereof. The tax shall be paid by
95-42 the purchaser to the retailer making the sale, as
95-43 provided in this article. The retailer shall remit the
95-44 tax to the commissioner as provided in this article and,
-95-
96- 1 when received by the commissioner, the tax shall be a
96- 2 credit against the tax imposed on the retailer. Every
96- 3 person who is a dealer, as defined in subparagraph (H)
96- 4 of paragraph (3) of Code Section 48-8-2 and who makes
96- 5 any sale of tangible personal property at retail outside
96- 6 this state which property is to be delivered in this
96- 7 state to a purchaser or purchaser's agent shall be a
96- 8 retailer and a dealer for purposes of this article and
96- 9 shall be liable for a tax on the sale at the rate of 4
96-10 4.5 percent of such gross sales or the amount of tax as
96-11 collected by that person from purchasers having their
96-12 purchases delivered in this state, whichever is greater.
96-13 (2) No retail sale shall be taxable to the retailer or
96-14 dealer which is not taxable to the purchaser at retail.
96-15 The tax imposed by this subsection shall be subject to
96-16 the credit otherwise granted by this article for like
96-17 taxes previously paid in another state. This subsection
96-18 shall not be construed to require a duplication in the
96-19 payment of the tax.
96-20 (d)(1) Every person to whom tangible personal property
96-21 in the state is leased or rented shall be liable for a
96-22 tax on the lease or rental at the rate of 4 4.5 percent
96-23 of the gross lease or rental charge. The tax shall be
96-24 paid to the person who leases or rents the property by
96-25 the person to whom the property is leased or rented. A
96-26 person who leases or rents property to others as a
96-27 dealer under this article shall remit the tax to the
96-28 commissioner as provided in this article. When received
96-29 by the commissioner, the tax shall be a credit against
96-30 the tax imposed on the person who leases or rents the
96-31 property to others. Every person who leases or rents
96-32 tangible personal property in this state to others shall
96-33 be a dealer and shall be liable for a tax on the lease
96-34 or rental at the rate of 4 4.5 percent of the gross
96-35 lease or rental proceeds, or the amount of taxes
96-36 collected by him that person from persons to whom he
96-37 that person leases or rents tangible personal property,
96-38 whichever is greater.
96-39 (2) No lease or rental shall be taxable to the person
96-40 who leases or rents tangible property to another which
96-41 is not taxable to the person to whom the property is
96-42 leased or rented.
96-43 (3) The lessee of both taxable and exempt property in
96-44 this state under a single lease agreement containing a
-96-
97- 1 lease period of ten years or more shall have the option
97- 2 to discharge in full all sales and use taxes imposed by
97- 3 this article relating to the tangible personal property
97- 4 by paying in a lump sum 4 4.5 percent of the fair market
97- 5 value of the tangible personal property at the date of
97- 6 inception of the lease agreement in the same manner and
97- 7 under the same conditions applicable to sales of the
97- 8 tangible personal property.
97- 9 (e) Upon the first instance of use within this state of
97-10 tangible personal property leased or rented outside this
97-11 state, the person to whom the property is leased or rented
97-12 shall be a dealer and shall be liable for a tax at the
97-13 rate of 4 4.5 percent of the rental charge paid to the
97-14 person who leased or rented the property, subject to the
97-15 credit authorized for like taxes previously paid in
97-16 another state.
97-17 (e.1)(1) Every person who leases, as lessor, or rents
97-18 tangible personal property outside this state for use
97-19 within this state shall be liable for a tax at the rate
97-20 of 4 4.5 percent of the rental charge paid for that
97-21 lease or rental if that person is a dealer, as defined
97-22 in subparagraph (H) of paragraph (3) of Code Section
97-23 48-8-2 and title to that property remains in that
97-24 person. It shall be prima-facie evidence that such
97-25 property is to be used within this state if that
97-26 property is delivered in this state to the lessee or
97-27 renter of such property, or to the agent of either. The
97-28 tax shall be paid by the lessee or renter and payment of
97-29 the tax shall be made to the lessor or person receiving
97-30 rental payments for that property, which person shall be
97-31 the dealer for purposes of this article. The dealer
97-32 shall remit the tax to the commissioner as provided in
97-33 this article and, when received by the commissioner, the
97-34 tax shall be a credit against the tax imposed on the
97-35 dealer. Every person who is a dealer, as defined in
97-36 subparagraph (H) of paragraph (3) of Code Section 48-8-2
97-37 and who leases or rents tangible personal property
97-38 outside this state to be delivered in this state to the
97-39 lessee, renter, or agent of either shall be a dealer and
97-40 shall be liable as such for a tax on the lease or rental
97-41 at the rate of 4 4.5 percent of the gross proceeds from
97-42 such leases or rentals or the amount of taxes collected
97-43 by that dealer for leases or rentals of tangible
97-44 personal property delivered in this state, whichever is
97-45 greater.
-97-
98- 1 (2) No lease or rental shall be taxable to the dealer
98- 2 which is not taxable to the lessee or renter. The tax
98- 3 imposed by this subsection shall be subject to the
98- 4 credit granted by this article for like taxes previously
98- 5 paid in another state. This subsection shall not be
98- 6 construed to require a duplication in the payment of the
98- 7 tax.
98- 8 (f)(1) Every person purchasing or receiving any service
98- 9 within this state, the purchase of which is a retail
98-10 sale, shall be liable for tax on the purchase at the
98-11 rate of 4 4.5 percent of the gross charge or charges
98-12 made for the purchase. The tax shall be paid by the
98-13 person purchasing or receiving the service to the person
98-14 furnishing the service. The person furnishing the
98-15 service, as a dealer under this article, shall remit the
98-16 tax to the commissioner as provided in this article;
98-17 and, when received by the commissioner, the tax shall be
98-18 a credit against the tax imposed on the person
98-19 furnishing the service. Every person furnishing a
98-20 service, the purchase of which is a retail sale, shall
98-21 be a dealer and shall be liable for a tax on the sale at
98-22 the rate of 4 4.5 percent of the gross charge or charges
98-23 made for furnishing the service, or the amount of taxes
98-24 collected by him that person from the person to whom the
98-25 service is furnished, whichever is greater.
98-26 (2) No sale of services shall be taxable to the person
98-27 furnishing the service which is not taxable to the
98-28 purchaser of the service.
98-29 (g) Whenever a purchaser of tangible personal property
98-30 under subsection (b) or (c.1) of this Code section, a
98-31 lessee or renter of the property under subsection (d) or
98-32 (e.1) of this Code section, or a purchaser of tangible
98-33 services under subsection (f) of this Code section does
98-34 not pay the tax imposed upon him such person to the
98-35 retailer, lessor, or dealer who rents involved in the
98-36 taxable transaction, the purchaser, lessee, or renter
98-37 shall be a dealer himself and the commissioner, whenever
98-38 he or she has reason to believe that a purchaser or lessee
98-39 has not so paid the tax, may assess and collect the tax
98-40 directly against and from the purchaser, lessee, or
98-41 renter, unless the purchaser, lessee, or renter shows that
98-42 the retailer, lessor, or dealer who rents involved in the
98-43 transaction has nevertheless remitted to the commissioner
98-44 the tax imposed on the transaction. If payment is
-98-
99- 1 received directly from the purchaser, it shall not be
99- 2 collected a second time from the retailer, lessor, or
99- 3 dealer who rents involved.
99- 4 (h) The tax imposed by this Code section shall be
99- 5 collected from the dealer and paid at the time and in the
99- 6 manner provided in this article. Any person engaging or
99- 7 continuing in business as a retailer and wholesaler or
99- 8 jobber shall pay the tax imposed on the gross proceeds of
99- 9 retail sales of the business at the rate specified when
99-10 proper books are kept showing separately the gross
99-11 proceeds of sales for each business. If the records are
99-12 not kept separately, the tax shall be paid as a retailer
99-13 or dealer on the gross sales of the business. For the
99-14 purpose of this Code section, all sales through any one
99-15 vending machine shall be treated as a single sale. The
99-16 gross proceeds for reporting vending sales shall be
99-17 treated as if the tax is included in the sale and the
99-18 taxable proceeds shall be net of the tax included in the
99-19 sale.
99-20 (i) The tax levied by this Code section is in addition to
99-21 all other taxes, whether levied in the form of excise,
99-22 license, or privilege taxes, and shall be in addition to
99-23 all other fees and taxes levied."
99-24 SECTION 4.
99-25 Said chapter is further amended by striking Code Section
99-26 48-8-32, relating to collection of the tax from dealers, in
99-27 its entirety and inserting in its place a new Code Section
99-28 48-8-32 to read as follows:
99-29 "48-8-32.
99-30 The tax at the rate of 4 4.5 percent of the retail sales
99-31 price at the time of sale or 4 4.5 percent of the cost
99-32 price at the time of purchase, as the case may be, shall
99-33 be collectable from all persons engaged as dealers in the
99-34 sale at retail, or in the use, consumption, distribution,
99-35 or storage for use or consumption in this state of
99-36 tangible personal property."
99-37 SECTION 5.
99-38 Said chapter is further amended by striking Code Section
99-39 48-8-43, relating to the disposition of certain excess
99-40 taxes, in its entirety and inserting in its place a new Code
99-41 Section 48-8-43 to read as follows:
-99-
100- 1 "48-8-43.
100- 2 When the tax collected for any period is in excess of 4
100- 3 4.5 percent, the total tax collected shall be paid over to
100- 4 the commissioner less the compensation to be allowed the
100- 5 dealer."
100- 6 SECTION 6.
100- 7 Said chapter is further amended by striking subsection (d)
100- 8 of Code Section 48-8-63, relating to the payment of the tax
100- 9 by certain contractors, in its entirety and inserting in its
100-10 place a new subsection (d) to read as follows:
100-11 "(d)(1) Any person who subcontracts with a general or
100-12 prime contractor shall be liable under this article as a
100-13 general or prime contractor. The general or prime
100-14 contractor shall withhold up to 4 4.5 percent of the
100-15 payments due the subcontractor arising out of the
100-16 contract entered into between the general and prime
100-17 contractor in satisfaction of any sales or use taxes
100-18 owed this state.
100-19 (2) The prime or general contractor shall withhold
100-20 payments as provided in paragraph (1) of this subsection
100-21 until the subcontractor furnishes him such contractor
100-22 with a certificate issued by the commissioner showing
100-23 that all sales taxes accruing by reason of the contract
100-24 between the subcontractor and the general or prime
100-25 contractor have been paid and satisfied. If the prime or
100-26 general contractor for any reason fails to withhold up
100-27 to 4 4.5 percent of the payments due the subcontractor
100-28 under their contract, he such contractor shall become
100-29 liable for any sales or use taxes due or owed this state
100-30 by the subcontractor."
100-31 SECTION 1.
100-32 Chapter 8 of Title 48 of the Official Code of Georgia
100-33 Annotated, relating to sales and use taxation, is amended by
100-34 striking Code Section 48-8-1.1, relating to applicability of
100-35 the increased rate of state sales and use tax, and inserting
100-36 in its place a new Code Section 48-8-1.1 to read as follows:
100-37 "48-8-1.1.
100-38 (a) As used in this Code section, the term 'building and
100-39 construction materials' means all building and
100-40 construction materials, supplies, fixtures, or equipment,
-100-
101- 1 any combination of such items, and any other leased or
101- 2 purchased articles when the materials, supplies, fixtures,
101- 3 equipment, or articles are to be utilized or consumed
101- 4 during construction or are to be incorporated into
101- 5 construction work pursuant to a bona fide written
101- 6 construction contract.
101- 7 (b) The increased rate of state sales and use taxation
101- 8 from 4 4.5 percent to 4.5 5 percent shall not apply with
101- 9 respect to the sale or use of building and construction
101-10 materials when the contract pursuant to which the
101-11 materials are purchased or used was advertised for bid
101-12 prior to January 1, 1998 1999, and the contract was
101-13 entered into as a result of a bid actually submitted in
101-14 response to the advertisement prior to January 1, 1998
101-15 1999; provided, however, that any such sale or use shall
101-16 remain fully taxable at the prior rate of taxation.
101-17 (c) With respect to services which are regularly billed on
101-18 a monthly basis, the increased rate of state sales and use
101-19 taxation from 4 4.5 percent to 4.5 5 percent shall apply
101-20 to services billed on or after January 1, 1998 1999;
101-21 provided, however, that any such services billed prior to
101-22 such date shall remain fully taxable at the prior rate of
101-23 taxation."
101-24 SECTION 2.
101-25 Said chapter is further amended by striking subsections (a)
101-26 and (b) of Code Section 48-8-3.1, relating to sales tax
101-27 exemptions as applied to motor fuels, in their entirety and
101-28 inserting in their respective places new subsections (a) and
101-29 (b) to read as follows:
101-30 "(a) Except as provided in subsection (b) of this Code
101-31 section, sales of motor fuels as defined in paragraph (9)
101-32 of Code Section 48-9-2 shall be exempt from the first 3
101-33 percent of the sales and use taxes levied or imposed by
101-34 this article and shall be subject to the remaining 1.5 2
101-35 percent of the sales and use taxes levied or imposed by
101-36 this article.
101-37 (b) Sales of motor fuel other than gasoline which motor
101-38 fuel other than gasoline is purchased for purposes other
101-39 than propelling motor vehicles on public highways as
101-40 defined in Article 1 of Chapter 9 of this title shall be
101-41 fully subject to the 4.5 5 percent sales and use taxes
101-42 levied or imposed by this article unless otherwise
101-43 specifically exempted by this article."
-101-
102- 1 SECTION 3.
102- 2 Said chapter is further amended by striking Code Section
102- 3 48-8-30, relating to the rate and imposition of the state
102- 4 sales and use tax, in its entirety and inserting in its
102- 5 place a new Code Section 48-8-30 to read as follows:
102- 6 "48-8-30.
102- 7 (a) There is levied and imposed a tax on the retail
102- 8 purchase, retail sale, rental, storage, use, or
102- 9 consumption of tangible personal property and on the
102-10 services described in this article.
102-11 (b)(1) Every purchaser of tangible personal property at
102-12 retail in this state shall be liable for a tax on the
102-13 purchase at the rate of 4.5 5 percent of the sales price
102-14 of the purchase. The tax shall be paid by the purchaser
102-15 to the retailer making the sale, as provided in this
102-16 article. The retailer shall remit the tax to the
102-17 commissioner as provided in this article and, when
102-18 received by the commissioner, the tax shall be a credit
102-19 against the tax imposed on the retailer. Every person
102-20 making a sale or sales of tangible personal property at
102-21 retail in this state shall be a retailer and a dealer
102-22 and shall be liable for a tax on the sale at the rate of
102-23 4.5 5 percent of the gross sale or gross sales, or the
102-24 amount of taxes collected by him that person from his
102-25 the purchaser or purchasers, whichever is greater.
102-26 (2) No retail sale shall be taxable to the retailer or
102-27 dealer which is not taxable to the purchaser at retail.
102-28 (c) Upon the first instance of use, consumption,
102-29 distribution, or storage within this state of tangible
102-30 personal property purchased at retail outside this state,
102-31 the owner or user of the property shall be a dealer and
102-32 shall be liable for a tax at the rate of 4.5 5 percent of
102-33 the cost price or fair market value of the property,
102-34 whichever is the lesser. This subsection shall not be
102-35 construed to require a duplication in the payment of the
102-36 tax. The tax imposed by this subsection shall be subject
102-37 to the credit otherwise granted by this article for like
102-38 taxes previously paid in another state.
102-39 (c.1)(1) Every purchaser of tangible personal property
102-40 at retail outside this state from a dealer, as defined
102-41 in subparagraph (H) of paragraph (3) of Code Section
102-42 48-8-2, when such property is to be used, consumed,
-102-
103- 1 distributed, or stored within this state, shall be
103- 2 liable for a tax on the purchase at the rate of 4.5 5
103- 3 percent of the sales price of the purchase. It shall be
103- 4 prima-facie evidence that such property is to be used,
103- 5 consumed, distributed, or stored within this state if
103- 6 that property is delivered in this state to the
103- 7 purchaser or agent thereof. The tax shall be paid by
103- 8 the purchaser to the retailer making the sale, as
103- 9 provided in this article. The retailer shall remit the
103-10 tax to the commissioner as provided in this article and,
103-11 when received by the commissioner, the tax shall be a
103-12 credit against the tax imposed on the retailer. Every
103-13 person who is a dealer, as defined in subparagraph (H)
103-14 of paragraph (3) of Code Section 48-8-2 and who makes
103-15 any sale of tangible personal property at retail outside
103-16 this state which property is to be delivered in this
103-17 state to a purchaser or purchaser's agent shall be a
103-18 retailer and a dealer for purposes of this article and
103-19 shall be liable for a tax on the sale at the rate of 4.5
103-20 5 percent of such gross sales or the amount of tax as
103-21 collected by that person from purchasers having their
103-22 purchases delivered in this state, whichever is greater.
103-23 (2) No retail sale shall be taxable to the retailer or
103-24 dealer which is not taxable to the purchaser at retail.
103-25 The tax imposed by this subsection shall be subject to
103-26 the credit otherwise granted by this article for like
103-27 taxes previously paid in another state. This subsection
103-28 shall not be construed to require a duplication in the
103-29 payment of the tax.
103-30 (d)(1) Every person to whom tangible personal property
103-31 in the state is leased or rented shall be liable for a
103-32 tax on the lease or rental at the rate of 4.5 5 percent
103-33 of the gross lease or rental charge. The tax shall be
103-34 paid to the person who leases or rents the property by
103-35 the person to whom the property is leased or rented. A
103-36 person who leases or rents property to others as a
103-37 dealer under this article shall remit the tax to the
103-38 commissioner as provided in this article. When received
103-39 by the commissioner, the tax shall be a credit against
103-40 the tax imposed on the person who leases or rents the
103-41 property to others. Every person who leases or rents
103-42 tangible personal property in this state to others shall
103-43 be a dealer and shall be liable for a tax on the lease
103-44 or rental at the rate of 4.5 5 percent of the gross
103-45 lease or rental proceeds, or the amount of taxes
-103-
104- 1 collected by him that person from persons to whom he
104- 2 that person leases or rents tangible personal property,
104- 3 whichever is greater.
104- 4 (2) No lease or rental shall be taxable to the person
104- 5 who leases or rents tangible property to another which
104- 6 is not taxable to the person to whom the property is
104- 7 leased or rented.
104- 8 (3) The lessee of both taxable and exempt property in
104- 9 this state under a single lease agreement containing a
104-10 lease period of ten years or more shall have the option
104-11 to discharge in full all sales and use taxes imposed by
104-12 this article relating to the tangible personal property
104-13 by paying in a lump sum 4.5 5 percent of the fair market
104-14 value of the tangible personal property at the date of
104-15 inception of the lease agreement in the same manner and
104-16 under the same conditions applicable to sales of the
104-17 tangible personal property.
104-18 (e) Upon the first instance of use within this state of
104-19 tangible personal property leased or rented outside this
104-20 state, the person to whom the property is leased or rented
104-21 shall be a dealer and shall be liable for a tax at the
104-22 rate of 4.5 5 percent of the rental charge paid to the
104-23 person who leased or rented the property, subject to the
104-24 credit authorized for like taxes previously paid in
104-25 another state.
104-26 (e.1)(1) Every person who leases, as lessor, or rents
104-27 tangible personal property outside this state for use
104-28 within this state shall be liable for a tax at the rate
104-29 of 4.5 5 percent of the rental charge paid for that
104-30 lease or rental if that person is a dealer, as defined
104-31 in subparagraph (H) of paragraph (3) of Code Section
104-32 48-8-2 and title to that property remains in that
104-33 person. It shall be prima-facie evidence that such
104-34 property is to be used within this state if that
104-35 property is delivered in this state to the lessee or
104-36 renter of such property, or to the agent of either. The
104-37 tax shall be paid by the lessee or renter and payment of
104-38 the tax shall be made to the lessor or person receiving
104-39 rental payments for that property, which person shall be
104-40 the dealer for purposes of this article. The dealer
104-41 shall remit the tax to the commissioner as provided in
104-42 this article and, when received by the commissioner, the
104-43 tax shall be a credit against the tax imposed on the
104-44 dealer. Every person who is a dealer, as defined in
-104-
105- 1 subparagraph (H) of paragraph (3) of Code Section 48-8-2
105- 2 and who leases or rents tangible personal property
105- 3 outside this state to be delivered in this state to the
105- 4 lessee, renter, or agent of either shall be a dealer and
105- 5 shall be liable as such for a tax on the lease or rental
105- 6 at the rate of 4.5 5 percent of the gross proceeds from
105- 7 such leases or rentals or the amount of taxes collected
105- 8 by that dealer for leases or rentals of tangible
105- 9 personal property delivered in this state, whichever is
105-10 greater.
105-11 (2) No lease or rental shall be taxable to the dealer
105-12 which is not taxable to the lessee or renter. The tax
105-13 imposed by this subsection shall be subject to the
105-14 credit granted by this article for like taxes previously
105-15 paid in another state. This subsection shall not be
105-16 construed to require a duplication in the payment of the
105-17 tax.
105-18 (f)(1) Every person purchasing or receiving any service
105-19 within this state, the purchase of which is a retail
105-20 sale, shall be liable for tax on the purchase at the
105-21 rate of 4.5 5 percent of the gross charge or charges
105-22 made for the purchase. The tax shall be paid by the
105-23 person purchasing or receiving the service to the person
105-24 furnishing the service. The person furnishing the
105-25 service, as a dealer under this article, shall remit the
105-26 tax to the commissioner as provided in this article;
105-27 and, when received by the commissioner, the tax shall be
105-28 a credit against the tax imposed on the person
105-29 furnishing the service. Every person furnishing a
105-30 service, the purchase of which is a retail sale, shall
105-31 be a dealer and shall be liable for a tax on the sale at
105-32 the rate of 4.5 5 percent of the gross charge or charges
105-33 made for furnishing the service, or the amount of taxes
105-34 collected by him that person from the person to whom the
105-35 service is furnished, whichever is greater.
105-36 (2) No sale of services shall be taxable to the person
105-37 furnishing the service which is not taxable to the
105-38 purchaser of the service.
105-39 (g) Whenever a purchaser of tangible personal property
105-40 under subsection (b) or (c.1) of this Code section, a
105-41 lessee or renter of the property under subsection (d) or
105-42 (e.1) of this Code section, or a purchaser of tangible
105-43 services under subsection (f) of this Code section does
105-44 not pay the tax imposed upon him such person to the
-105-
106- 1 retailer, lessor, or dealer who rents involved in the
106- 2 taxable transaction, the purchaser, lessee, or renter
106- 3 shall be a dealer himself and the commissioner, whenever
106- 4 he or she has reason to believe that a purchaser or lessee
106- 5 has not so paid the tax, may assess and collect the tax
106- 6 directly against and from the purchaser, lessee, or
106- 7 renter, unless the purchaser, lessee, or renter shows that
106- 8 the retailer, lessor, or dealer who rents involved in the
106- 9 transaction has nevertheless remitted to the commissioner
106-10 the tax imposed on the transaction. If payment is
106-11 received directly from the purchaser, it shall not be
106-12 collected a second time from the retailer, lessor, or
106-13 dealer who rents involved.
106-14 (h) The tax imposed by this Code section shall be
106-15 collected from the dealer and paid at the time and in the
106-16 manner provided in this article. Any person engaging or
106-17 continuing in business as a retailer and wholesaler or
106-18 jobber shall pay the tax imposed on the gross proceeds of
106-19 retail sales of the business at the rate specified when
106-20 proper books are kept showing separately the gross
106-21 proceeds of sales for each business. If the records are
106-22 not kept separately, the tax shall be paid as a retailer
106-23 or dealer on the gross sales of the business. For the
106-24 purpose of this Code section, all sales through any one
106-25 vending machine shall be treated as a single sale. The
106-26 gross proceeds for reporting vending sales shall be
106-27 treated as if the tax is included in the sale and the
106-28 taxable proceeds shall be net of the tax included in the
106-29 sale.
106-30 (i) The tax levied by this Code section is in addition to
106-31 all other taxes, whether levied in the form of excise,
106-32 license, or privilege taxes, and shall be in addition to
106-33 all other fees and taxes levied."
106-34 SECTION 4.
106-35 Said chapter is further amended by striking Code Section
106-36 48-8-32, relating to collection of the tax from dealers, in
106-37 its entirety and inserting in its place a new Code Section
106-38 48-8-32 to read as follows:
106-39 "48-8-32.
106-40 The tax at the rate of 4.5 5 percent of the retail sales
106-41 price at the time of sale or 4.5 5 percent of the cost
106-42 price at the time of purchase, as the case may be, shall
106-43 be collectable from all persons engaged as dealers in the
-106-
107- 1 sale at retail, or in the use, consumption, distribution,
107- 2 or storage for use or consumption in this state of
107- 3 tangible personal property."
107- 4 SECTION 5.
107- 5 Said chapter is further amended by striking Code Section
107- 6 48-8-43, relating to the disposition of certain excess
107- 7 taxes, in its entirety and inserting in its place a new Code
107- 8 Section 48-8-43 to read as follows:
107- 9 "48-8-43.
107-10 When the tax collected for any period is in excess of 4.5
107-11 5 percent, the total tax collected shall be paid over to
107-12 the commissioner less the compensation to be allowed the
107-13 dealer."
107-14 SECTION 6.
107-15 Said chapter is further amended by striking subsection (d)
107-16 of Code Section 48-8-63, relating to the payment of the tax
107-17 by certain contractors, in its entirety and inserting in its
107-18 place a new subsection (d) to read as follows:
107-19 "(d)(1) Any person who subcontracts with a general or
107-20 prime contractor shall be liable under this article as a
107-21 general or prime contractor. The general or prime
107-22 contractor shall withhold up to 4.5 5 percent of the
107-23 payments due the subcontractor arising out of the
107-24 contract entered into between the general and prime
107-25 contractor in satisfaction of any sales or use taxes
107-26 owed this state.
107-27 (2) The prime or general contractor shall withhold
107-28 payments as provided in paragraph (1) of this subsection
107-29 until the subcontractor furnishes him such contractor
107-30 with a certificate issued by the commissioner showing
107-31 that all sales taxes accruing by reason of the contract
107-32 between the subcontractor and the general or prime
107-33 contractor have been paid and satisfied. If the prime or
107-34 general contractor for any reason fails to withhold up
107-35 to 4.5 5 percent of the payments due the subcontractor
107-36 under their contract, he such contractor shall become
107-37 liable for any sales or use taxes due or owed this state
107-38 by the subcontractor."
-107-
108- 1 SECTION 1.
108- 2 Chapter 8 of Title 48 of the Official Code of Georgia
108- 3 Annotated, relating to sales and use taxation, is amended by
108- 4 striking Code Section 48-8-1.1, relating to applicability of
108- 5 increased rate of state sales and use tax, and inserting in
108- 6 its place a new Code Section 48-8-8.1 to read as follows:
108- 7 "48-8-1.1.
108- 8 (a) As used in this Code section, the term 'building and
108- 9 construction materials' means all building and
108-10 construction materials, supplies, fixtures, or equipment,
108-11 any combination of such items, and any other leased or
108-12 purchased articles when the materials, supplies, fixtures,
108-13 equipment, or articles are to be utilized or consumed
108-14 during construction or are to be incorporated into
108-15 construction work pursuant to a bona fide written
108-16 construction contract.
108-17 (b) The increased rate of state sales and use taxation
108-18 from 4.5 5 percent to 5 5.5 percent shall not apply with
108-19 respect to the sale or use of building and construction
108-20 materials when the contract pursuant to which the
108-21 materials are purchased or used was advertised for bid
108-22 prior to January 1, 1999 2000, and the contract was
108-23 entered into as a result of a bid actually submitted in
108-24 response to the advertisement prior to January 1, 1999
108-25 2000; provided, however, that any such sale or use shall
108-26 remain fully taxable at the prior rate of taxation.
108-27 (c) With respect to services which are regularly billed on
108-28 a monthly basis, the increased rate of state sales and use
108-29 taxation from 4.5 5 percent to 5 5.5 percent shall apply
108-30 to services billed on or after January 1, 1999 2000;
108-31 provided, however, that any such services billed prior to
108-32 such date shall remain fully taxable at the prior rate of
108-33 taxation."
108-34 SECTION 2.
108-35 Said chapter is further amended by striking subsections (a)
108-36 and (b) of Code Section 48-8-3.1, relating to sales tax
108-37 exemptions as applied to motor fuels, in their entirety and
108-38 inserting in their respective places new subsections (a) and
108-39 (b) to read as follows:
-108-
109- 1 "(a) Except as provided in subsection (b) of this Code
109- 2 section, sales of motor fuels as defined in paragraph (9)
109- 3 of Code Section 48-9-2 shall be exempt from the first 3
109- 4 percent of the sales and use taxes levied or imposed by
109- 5 this article and shall be subject to the remaining 2 2.5
109- 6 percent of the sales and use taxes levied or imposed by
109- 7 this article.
109- 8 (b) Sales of motor fuel other than gasoline which motor
109- 9 fuel other than gasoline is purchased for purposes other
109-10 than propelling motor vehicles on public highways as
109-11 defined in Article 1 of Chapter 9 of this title shall be
109-12 fully subject to the 5 5.5 percent sales and use taxes
109-13 levied or imposed by this article unless otherwise
109-14 specifically exempted by this article."
109-15 SECTION 3.
109-16 Said chapter is further amended by striking Code Section
109-17 48-8-30, relating to the rate and imposition of the state
109-18 sales and use tax, in its entirety and inserting in its
109-19 place a new Code Section 48-8-30 to read as follows:
109-20 "48-8-30.
109-21 (a) There is levied and imposed a tax on the retail
109-22 purchase, retail sale, rental, storage, use, or
109-23 consumption of tangible personal property and on the
109-24 services described in this article.
109-25 (b)(1) Every purchaser of tangible personal property at
109-26 retail in this state shall be liable for a tax on the
109-27 purchase at the rate of 5 5.5 percent of the sales price
109-28 of the purchase. The tax shall be paid by the purchaser
109-29 to the retailer making the sale, as provided in this
109-30 article. The retailer shall remit the tax to the
109-31 commissioner as provided in this article and, when
109-32 received by the commissioner, the tax shall be a credit
109-33 against the tax imposed on the retailer. Every person
109-34 making a sale or sales of tangible personal property at
109-35 retail in this state shall be a retailer and a dealer
109-36 and shall be liable for a tax on the sale at the rate of
109-37 5 5.5 percent of the gross sale or gross sales, or the
109-38 amount of taxes collected by him that person from his
109-39 the purchaser or purchasers, whichever is greater.
109-40 (2) No retail sale shall be taxable to the retailer or
109-41 dealer which is not taxable to the purchaser at retail.
-109-
110- 1 (c) Upon the first instance of use, consumption,
110- 2 distribution, or storage within this state of tangible
110- 3 personal property purchased at retail outside this state,
110- 4 the owner or user of the property shall be a dealer and
110- 5 shall be liable for a tax at the rate of 5 5.5 percent of
110- 6 the cost price or fair market value of the property,
110- 7 whichever is the lesser. This subsection shall not be
110- 8 construed to require a duplication in the payment of the
110- 9 tax. The tax imposed by this subsection shall be subject
110-10 to the credit otherwise granted by this article for like
110-11 taxes previously paid in another state.
110-12 (c.1)(1) Every purchaser of tangible personal property
110-13 at retail outside this state from a dealer, as defined
110-14 in subparagraph (H) of paragraph (3) of Code Section
110-15 48-8-2, when such property is to be used, consumed,
110-16 distributed, or stored within this state, shall be
110-17 liable for a tax on the purchase at the rate of 5 5.5
110-18 percent of the sales price of the purchase. It shall be
110-19 prima-facie evidence that such property is to be used,
110-20 consumed, distributed, or stored within this state if
110-21 that property is delivered in this state to the
110-22 purchaser or agent thereof. The tax shall be paid by
110-23 the purchaser to the retailer making the sale, as
110-24 provided in this article. The retailer shall remit the
110-25 tax to the commissioner as provided in this article and,
110-26 when received by the commissioner, the tax shall be a
110-27 credit against the tax imposed on the retailer. Every
110-28 person who is a dealer, as defined in subparagraph (H)
110-29 of paragraph (3) of Code Section 48-8-2 and who makes
110-30 any sale of tangible personal property at retail outside
110-31 this state which property is to be delivered in this
110-32 state to a purchaser or purchaser's agent shall be a
110-33 retailer and a dealer for purposes of this article and
110-34 shall be liable for a tax on the sale at the rate of 5
110-35 5.5 percent of such gross sales or the amount of tax as
110-36 collected by that person from purchasers having their
110-37 purchases delivered in this state, whichever is greater.
110-38 (2) No retail sale shall be taxable to the retailer or
110-39 dealer which is not taxable to the purchaser at retail.
110-40 The tax imposed by this subsection shall be subject to
110-41 the credit otherwise granted by this article for like
110-42 taxes previously paid in another state. This subsection
110-43 shall not be construed to require a duplication in the
110-44 payment of the tax.
-110-
111- 1 (d)(1) Every person to whom tangible personal property
111- 2 in the state is leased or rented shall be liable for a
111- 3 tax on the lease or rental at the rate of 5 5.5 percent
111- 4 of the gross lease or rental charge. The tax shall be
111- 5 paid to the person who leases or rents the property by
111- 6 the person to whom the property is leased or rented. A
111- 7 person who leases or rents property to others as a
111- 8 dealer under this article shall remit the tax to the
111- 9 commissioner as provided in this article. When received
111-10 by the commissioner, the tax shall be a credit against
111-11 the tax imposed on the person who leases or rents the
111-12 property to others. Every person who leases or rents
111-13 tangible personal property in this state to others shall
111-14 be a dealer and shall be liable for a tax on the lease
111-15 or rental at the rate of 5 5.5 percent of the gross
111-16 lease or rental proceeds, or the amount of taxes
111-17 collected by him that person from persons to whom he
111-18 that person leases or rents tangible personal property,
111-19 whichever is greater.
111-20 (2) No lease or rental shall be taxable to the person
111-21 who leases or rents tangible property to another which
111-22 is not taxable to the person to whom the property is
111-23 leased or rented.
111-24 (3) The lessee of both taxable and exempt property in
111-25 this state under a single lease agreement containing a
111-26 lease period of ten years or more shall have the option
111-27 to discharge in full all sales and use taxes imposed by
111-28 this article relating to the tangible personal property
111-29 by paying in a lump sum 5 5.5 percent of the fair market
111-30 value of the tangible personal property at the date of
111-31 inception of the lease agreement in the same manner and
111-32 under the same conditions applicable to sales of the
111-33 tangible personal property.
111-34 (e) Upon the first instance of use within this state of
111-35 tangible personal property leased or rented outside this
111-36 state, the person to whom the property is leased or rented
111-37 shall be a dealer and shall be liable for a tax at the
111-38 rate of 5 5.5 percent of the rental charge paid to the
111-39 person who leased or rented the property, subject to the
111-40 credit authorized for like taxes previously paid in
111-41 another state.
111-42 (e.1)(1) Every person who leases, as lessor, or rents
111-43 tangible personal property outside this state for use
111-44 within this state shall be liable for a tax at the rate
-111-
112- 1 of 5 5.5 percent of the rental charge paid for that
112- 2 lease or rental if that person is a dealer, as defined
112- 3 in subparagraph (H) of paragraph (3) of Code Section
112- 4 48-8-2 and title to that property remains in that
112- 5 person. It shall be prima-facie evidence that such
112- 6 property is to be used within this state if that
112- 7 property is delivered in this state to the lessee or
112- 8 renter of such property, or to the agent of either. The
112- 9 tax shall be paid by the lessee or renter and payment of
112-10 the tax shall be made to the lessor or person receiving
112-11 rental payments for that property, which person shall be
112-12 the dealer for purposes of this article. The dealer
112-13 shall remit the tax to the commissioner as provided in
112-14 this article and, when received by the commissioner, the
112-15 tax shall be a credit against the tax imposed on the
112-16 dealer. Every person who is a dealer, as defined in
112-17 subparagraph (H) of paragraph (3) of Code Section 48-8-2
112-18 and who leases or rents tangible personal property
112-19 outside this state to be delivered in this state to the
112-20 lessee, renter, or agent of either shall be a dealer and
112-21 shall be liable as such for a tax on the lease or rental
112-22 at the rate of 5 5.5 percent of the gross proceeds from
112-23 such leases or rentals or the amount of taxes collected
112-24 by that dealer for leases or rentals of tangible
112-25 personal property delivered in this state, whichever is
112-26 greater.
112-27 (2) No lease or rental shall be taxable to the dealer
112-28 which is not taxable to the lessee or renter. The tax
112-29 imposed by this subsection shall be subject to the
112-30 credit granted by this article for like taxes previously
112-31 paid in another state. This subsection shall not be
112-32 construed to require a duplication in the payment of the
112-33 tax.
112-34 (f)(1) Every person purchasing or receiving any service
112-35 within this state, the purchase of which is a retail
112-36 sale, shall be liable for tax on the purchase at the
112-37 rate of 5 5.5 percent of the gross charge or charges
112-38 made for the purchase. The tax shall be paid by the
112-39 person purchasing or receiving the service to the person
112-40 furnishing the service. The person furnishing the
112-41 service, as a dealer under this article, shall remit the
112-42 tax to the commissioner as provided in this article;
112-43 and, when received by the commissioner, the tax shall be
112-44 a credit against the tax imposed on the person
112-45 furnishing the service. Every person furnishing a
-112-
113- 1 service, the purchase of which is a retail sale, shall
113- 2 be a dealer and shall be liable for a tax on the sale at
113- 3 the rate of 5 5.5 percent of the gross charge or charges
113- 4 made for furnishing the service, or the amount of taxes
113- 5 collected by him that person from the person to whom the
113- 6 service is furnished, whichever is greater.
113- 7 (2) No sale of services shall be taxable to the person
113- 8 furnishing the service which is not taxable to the
113- 9 purchaser of the service.
113-10 (g) Whenever a purchaser of tangible personal property
113-11 under subsection (b) or (c.1) of this Code section, a
113-12 lessee or renter of the property under subsection (d) or
113-13 (e.1) of this Code section, or a purchaser of tangible
113-14 services under subsection (f) of this Code section does
113-15 not pay the tax imposed upon him such person to the
113-16 retailer, lessor, or dealer who rents involved in the
113-17 taxable transaction, the purchaser, lessee, or renter
113-18 shall be a dealer himself and the commissioner, whenever
113-19 he or she has reason to believe that a purchaser or lessee
113-20 has not so paid the tax, may assess and collect the tax
113-21 directly against and from the purchaser, lessee, or
113-22 renter, unless the purchaser, lessee, or renter shows that
113-23 the retailer, lessor, or dealer who rents involved in the
113-24 transaction has nevertheless remitted to the commissioner
113-25 the tax imposed on the transaction. If payment is
113-26 received directly from the purchaser, it shall not be
113-27 collected a second time from the retailer, lessor, or
113-28 dealer who rents involved.
113-29 (h) The tax imposed by this Code section shall be
113-30 collected from the dealer and paid at the time and in the
113-31 manner provided in this article. Any person engaging or
113-32 continuing in business as a retailer and wholesaler or
113-33 jobber shall pay the tax imposed on the gross proceeds of
113-34 retail sales of the business at the rate specified when
113-35 proper books are kept showing separately the gross
113-36 proceeds of sales for each business. If the records are
113-37 not kept separately, the tax shall be paid as a retailer
113-38 or dealer on the gross sales of the business. For the
113-39 purpose of this Code section, all sales through any one
113-40 vending machine shall be treated as a single sale. The
113-41 gross proceeds for reporting vending sales shall be
113-42 treated as if the tax is included in the sale and the
113-43 taxable proceeds shall be net of the tax included in the
113-44 sale.
-113-
114- 1 (i) The tax levied by this Code section is in addition to
114- 2 all other taxes, whether levied in the form of excise,
114- 3 license, or privilege taxes, and shall be in addition to
114- 4 all other fees and taxes levied."
114- 5 SECTION 4.
114- 6 Said chapter is further amended by striking Code Section
114- 7 48-8-32, relating to collection of the tax from dealers, in
114- 8 its entirety and inserting in its place a new Code Section
114- 9 48-8-32 to read as follows:
114-10 "48-8-32.
114-11 The tax at the rate of 5 5.5 percent of the retail sales
114-12 price at the time of sale or 5 5.5 percent of the cost
114-13 price at the time of purchase, as the case may be, shall
114-14 be collectable from all persons engaged as dealers in the
114-15 sale at retail, or in the use, consumption, distribution,
114-16 or storage for use or consumption in this state of
114-17 tangible personal property."
114-18 SECTION 5.
114-19 Said chapter is further amended by striking Code Section
114-20 48-8-43, relating to the disposition of certain excess
114-21 taxes, in its entirety and inserting in its place a new Code
114-22 Section 48-8-43 to read as follows:
114-23 "48-8-43.
114-24 When the tax collected for any period is in excess of 5
114-25 5.5 percent, the total tax collected shall be paid over to
114-26 the commissioner less the compensation to be allowed the
114-27 dealer."
114-28 SECTION 6.
114-29 Said chapter is further amended by striking subsection (d)
114-30 of Code Section 48-8-63, relating to the payment of the tax
114-31 by certain contractors, in its entirety and inserting in its
114-32 place a new subsection (d) to read as follows:
114-33 "(d)(1) Any person who subcontracts with a general or
114-34 prime contractor shall be liable under this article as a
114-35 general or prime contractor. The general or prime
114-36 contractor shall withhold up to 5 5.5 percent of the
114-37 payments due the subcontractor arising out of the
114-38 contract entered into between the general and prime
114-39 contractor in satisfaction of any sales or use taxes
114-40 owed this state.
-114-
115- 1 (2) The prime or general contractor shall withhold
115- 2 payments as provided in paragraph (1) of this subsection
115- 3 until the subcontractor furnishes him such contractor
115- 4 with a certificate issued by the commissioner showing
115- 5 that all sales taxes accruing by reason of the contract
115- 6 between the subcontractor and the general or prime
115- 7 contractor have been paid and satisfied. If the prime or
115- 8 general contractor for any reason fails to withhold up
115- 9 to 5 5.5 percent of the payments due the subcontractor
115-10 under their contract, he such contractor shall become
115-11 liable for any sales or use taxes due or owed this state
115-12 by the subcontractor."
115-13 SECTION 1.
115-14 Chapter 8 of Title 48 of the Official Code of Georgia
115-15 Annotated, relating to sales and use taxation, is amended by
115-16 striking Code Section 48-8-1.1, relating to applicability of
115-17 increased state sales and use tax, and inserting in its
115-18 place a new Code Section 48-8-1.1 to read as follows:
115-19 "48-8-1.1.
115-20 (a) As used in this Code section, the term 'building and
115-21 construction materials' means all building and
115-22 construction materials, supplies, fixtures, or equipment,
115-23 any combination of such items, and any other leased or
115-24 purchased articles when the materials, supplies, fixtures,
115-25 equipment, or articles are to be utilized or consumed
115-26 during construction or are to be incorporated into
115-27 construction work pursuant to a bona fide written
115-28 construction contract.
115-29 (b) The increased rate of state sales and use taxation
115-30 from 5 5.5 percent to 5.5 6 percent shall not apply with
115-31 respect to the sale or use of building and construction
115-32 materials when the contract pursuant to which the
115-33 materials are purchased or used was advertised for bid
115-34 prior to January 1, 2000 2001, and the contract was
115-35 entered into as a result of a bid actually submitted in
115-36 response to the advertisement prior to January 1, 2000
115-37 2001; provided, however, that any such sale or use shall
115-38 remain fully taxable at the prior rate of taxation.
115-39 (c) With respect to services which are regularly billed on
115-40 a monthly basis, the increased rate of state sales and use
115-41 taxation from 5 5.5 percent to 5.5 6 percent shall apply
-115-
116- 1 to services billed on or after January 1, 2000 2001;
116- 2 provided, however, that any such services billed prior to
116- 3 such date shall remain fully taxable at the prior rate of
116- 4 taxation."
116- 5 SECTION 2.
116- 6 Said chapter is further amended by striking subsections (a)
116- 7 and (b) of Code Section 48-8-3.1, relating to sales tax
116- 8 exemptions as applied to motor fuels, in their entirety and
116- 9 inserting in their respective places new subsections (a) and
116-10 (b) to read as follows:
116-11 "(a) Except as provided in subsection (b) of this Code
116-12 section, sales of motor fuels as defined in paragraph (9)
116-13 of Code Section 48-9-2 shall be exempt from the first 3
116-14 percent of the sales and use taxes levied or imposed by
116-15 this article and shall be subject to the remaining 2.5 3
116-16 percent of the sales and use taxes levied or imposed by
116-17 this article.
116-18 (b) Sales of motor fuel other than gasoline which motor
116-19 fuel other than gasoline is purchased for purposes other
116-20 than propelling motor vehicles on public highways as
116-21 defined in Article 1 of Chapter 9 of this title shall be
116-22 fully subject to the 5.5 6 percent sales and use taxes
116-23 levied or imposed by this article unless otherwise
116-24 specifically exempted by this article."
116-25 SECTION 3.
116-26 Said chapter is further amended by striking Code Section
116-27 48-8-30, relating to the rate and imposition of the state
116-28 sales and use tax, in its entirety and inserting in its
116-29 place a new Code Section 48-8-30 to read as follows:
116-30 "48-8-30.
116-31 (a) There is levied and imposed a tax on the retail
116-32 purchase, retail sale, rental, storage, use, or
116-33 consumption of tangible personal property and on the
116-34 services described in this article.
116-35 (b)(1) Every purchaser of tangible personal property at
116-36 retail in this state shall be liable for a tax on the
116-37 purchase at the rate of 5.5 6 percent of the sales price
116-38 of the purchase. The tax shall be paid by the purchaser
116-39 to the retailer making the sale, as provided in this
116-40 article. The retailer shall remit the tax to the
116-41 commissioner as provided in this article and, when
-116-
117- 1 received by the commissioner, the tax shall be a credit
117- 2 against the tax imposed on the retailer. Every person
117- 3 making a sale or sales of tangible personal property at
117- 4 retail in this state shall be a retailer and a dealer
117- 5 and shall be liable for a tax on the sale at the rate of
117- 6 5.5 6 percent of the gross sale or gross sales, or the
117- 7 amount of taxes collected by him that person from his
117- 8 the purchaser or purchasers, whichever is greater.
117- 9 (2) No retail sale shall be taxable to the retailer or
117-10 dealer which is not taxable to the purchaser at retail.
117-11 (c) Upon the first instance of use, consumption,
117-12 distribution, or storage within this state of tangible
117-13 personal property purchased at retail outside this state,
117-14 the owner or user of the property shall be a dealer and
117-15 shall be liable for a tax at the rate of 5.5 6 percent of
117-16 the cost price or fair market value of the property,
117-17 whichever is the lesser. This subsection shall not be
117-18 construed to require a duplication in the payment of the
117-19 tax. The tax imposed by this subsection shall be subject
117-20 to the credit otherwise granted by this article for like
117-21 taxes previously paid in another state.
117-22 (c.1)(1) Every purchaser of tangible personal property
117-23 at retail outside this state from a dealer, as defined
117-24 in subparagraph (H) of paragraph (3) of Code Section
117-25 48-8-2, when such property is to be used, consumed,
117-26 distributed, or stored within this state, shall be
117-27 liable for a tax on the purchase at the rate of 5.5 6
117-28 percent of the sales price of the purchase. It shall be
117-29 prima-facie evidence that such property is to be used,
117-30 consumed, distributed, or stored within this state if
117-31 that property is delivered in this state to the
117-32 purchaser or agent thereof. The tax shall be paid by
117-33 the purchaser to the retailer making the sale, as
117-34 provided in this article. The retailer shall remit the
117-35 tax to the commissioner as provided in this article and,
117-36 when received by the commissioner, the tax shall be a
117-37 credit against the tax imposed on the retailer. Every
117-38 person who is a dealer, as defined in subparagraph (H)
117-39 of paragraph (3) of Code Section 48-8-2 and who makes
117-40 any sale of tangible personal property at retail outside
117-41 this state which property is to be delivered in this
117-42 state to a purchaser or purchaser's agent shall be a
117-43 retailer and a dealer for purposes of this article and
117-44 shall be liable for a tax on the sale at the rate of 5.5
-117-
118- 1 6 percent of such gross sales or the amount of tax as
118- 2 collected by that person from purchasers having their
118- 3 purchases delivered in this state, whichever is greater.
118- 4 (2) No retail sale shall be taxable to the retailer or
118- 5 dealer which is not taxable to the purchaser at retail.
118- 6 The tax imposed by this subsection shall be subject to
118- 7 the credit otherwise granted by this article for like
118- 8 taxes previously paid in another state. This subsection
118- 9 shall not be construed to require a duplication in the
118-10 payment of the tax.
118-11 (d)(1) Every person to whom tangible personal property
118-12 in the state is leased or rented shall be liable for a
118-13 tax on the lease or rental at the rate of 5.5 6 percent
118-14 of the gross lease or rental charge. The tax shall be
118-15 paid to the person who leases or rents the property by
118-16 the person to whom the property is leased or rented. A
118-17 person who leases or rents property to others as a
118-18 dealer under this article shall remit the tax to the
118-19 commissioner as provided in this article. When received
118-20 by the commissioner, the tax shall be a credit against
118-21 the tax imposed on the person who leases or rents the
118-22 property to others. Every person who leases or rents
118-23 tangible personal property in this state to others shall
118-24 be a dealer and shall be liable for a tax on the lease
118-25 or rental at the rate of 5.5 6 percent of the gross
118-26 lease or rental proceeds, or the amount of taxes
118-27 collected by him that person from persons to whom he
118-28 that person leases or rents tangible personal property,
118-29 whichever is greater.
118-30 (2) No lease or rental shall be taxable to the person
118-31 who leases or rents tangible property to another which
118-32 is not taxable to the person to whom the property is
118-33 leased or rented.
118-34 (3) The lessee of both taxable and exempt property in
118-35 this state under a single lease agreement containing a
118-36 lease period of ten years or more shall have the option
118-37 to discharge in full all sales and use taxes imposed by
118-38 this article relating to the tangible personal property
118-39 by paying in a lump sum 5.5 6 percent of the fair market
118-40 value of the tangible personal property at the date of
118-41 inception of the lease agreement in the same manner and
118-42 under the same conditions applicable to sales of the
118-43 tangible personal property.
-118-
119- 1 (e) Upon the first instance of use within this state of
119- 2 tangible personal property leased or rented outside this
119- 3 state, the person to whom the property is leased or rented
119- 4 shall be a dealer and shall be liable for a tax at the
119- 5 rate of 5.5 6 percent of the rental charge paid to the
119- 6 person who leased or rented the property, subject to the
119- 7 credit authorized for like taxes previously paid in
119- 8 another state.
119- 9 (e.1)(1) Every person who leases, as lessor, or rents
119-10 tangible personal property outside this state for use
119-11 within this state shall be liable for a tax at the rate
119-12 of 5.5 6 percent of the rental charge paid for that
119-13 lease or rental if that person is a dealer, as defined
119-14 in subparagraph (H) of paragraph (3) of Code Section
119-15 48-8-2 and title to that property remains in that
119-16 person. It shall be prima-facie evidence that such
119-17 property is to be used within this state if that
119-18 property is delivered in this state to the lessee or
119-19 renter of such property, or to the agent of either. The
119-20 tax shall be paid by the lessee or renter and payment of
119-21 the tax shall be made to the lessor or person receiving
119-22 rental payments for that property, which person shall be
119-23 the dealer for purposes of this article. The dealer
119-24 shall remit the tax to the commissioner as provided in
119-25 this article and, when received by the commissioner, the
119-26 tax shall be a credit against the tax imposed on the
119-27 dealer. Every person who is a dealer, as defined in
119-28 subparagraph (H) of paragraph (3) of Code Section 48-8-2
119-29 and who leases or rents tangible personal property
119-30 outside this state to be delivered in this state to the
119-31 lessee, renter, or agent of either shall be a dealer and
119-32 shall be liable as such for a tax on the lease or rental
119-33 at the rate of 5.5 6 percent of the gross proceeds from
119-34 such leases or rentals or the amount of taxes collected
119-35 by that dealer for leases or rentals of tangible
119-36 personal property delivered in this state, whichever is
119-37 greater.
119-38 (2) No lease or rental shall be taxable to the dealer
119-39 which is not taxable to the lessee or renter. The tax
119-40 imposed by this subsection shall be subject to the
119-41 credit granted by this article for like taxes previously
119-42 paid in another state. This subsection shall not be
119-43 construed to require a duplication in the payment of the
119-44 tax.
-119-
120- 1 (f)(1) Every person purchasing or receiving any service
120- 2 within this state, the purchase of which is a retail
120- 3 sale, shall be liable for tax on the purchase at the
120- 4 rate of 5.5 6 percent of the gross charge or charges
120- 5 made for the purchase. The tax shall be paid by the
120- 6 person purchasing or receiving the service to the person
120- 7 furnishing the service. The person furnishing the
120- 8 service, as a dealer under this article, shall remit the
120- 9 tax to the commissioner as provided in this article;
120-10 and, when received by the commissioner, the tax shall be
120-11 a credit against the tax imposed on the person
120-12 furnishing the service. Every person furnishing a
120-13 service, the purchase of which is a retail sale, shall
120-14 be a dealer and shall be liable for a tax on the sale at
120-15 the rate of 5.5 6 percent of the gross charge or charges
120-16 made for furnishing the service, or the amount of taxes
120-17 collected by him that person from the person to whom the
120-18 service is furnished, whichever is greater.
120-19 (2) No sale of services shall be taxable to the person
120-20 furnishing the service which is not taxable to the
120-21 purchaser of the service.
120-22 (g) Whenever a purchaser of tangible personal property
120-23 under subsection (b) or (c.1) of this Code section, a
120-24 lessee or renter of the property under subsection (d) or
120-25 (e.1) of this Code section, or a purchaser of tangible
120-26 services under subsection (f) of this Code section does
120-27 not pay the tax imposed upon him such person to the
120-28 retailer, lessor, or dealer who rents involved in the
120-29 taxable transaction, the purchaser, lessee, or renter
120-30 shall be a dealer himself and the commissioner, whenever
120-31 he or she has reason to believe that a purchaser or lessee
120-32 has not so paid the tax, may assess and collect the tax
120-33 directly against and from the purchaser, lessee, or
120-34 renter, unless the purchaser, lessee, or renter shows that
120-35 the retailer, lessor, or dealer who rents involved in the
120-36 transaction has nevertheless remitted to the commissioner
120-37 the tax imposed on the transaction. If payment is
120-38 received directly from the purchaser, it shall not be
120-39 collected a second time from the retailer, lessor, or
120-40 dealer who rents involved.
120-41 (h) The tax imposed by this Code section shall be
120-42 collected from the dealer and paid at the time and in the
120-43 manner provided in this article. Any person engaging or
120-44 continuing in business as a retailer and wholesaler or
-120-
121- 1 jobber shall pay the tax imposed on the gross proceeds of
121- 2 retail sales of the business at the rate specified when
121- 3 proper books are kept showing separately the gross
121- 4 proceeds of sales for each business. If the records are
121- 5 not kept separately, the tax shall be paid as a retailer
121- 6 or dealer on the gross sales of the business. For the
121- 7 purpose of this Code section, all sales through any one
121- 8 vending machine shall be treated as a single sale. The
121- 9 gross proceeds for reporting vending sales shall be
121-10 treated as if the tax is included in the sale and the
121-11 taxable proceeds shall be net of the tax included in the
121-12 sale.
121-13 (i) The tax levied by this Code section is in addition to
121-14 all other taxes, whether levied in the form of excise,
121-15 license, or privilege taxes, and shall be in addition to
121-16 all other fees and taxes levied."
121-17 SECTION 4.
121-18 Said chapter is further amended by striking Code Section
121-19 48-8-32, relating to collection of the tax from dealers, in
121-20 its entirety and inserting in its place a new Code Section
121-21 48-8-32 to read as follows:
121-22 "48-8-32.
121-23 The tax at the rate of 5.5 6 percent of the retail sales
121-24 price at the time of sale or 5.5 6 percent of the cost
121-25 price at the time of purchase, as the case may be, shall
121-26 be collectable from all persons engaged as dealers in the
121-27 sale at retail, or in the use, consumption, distribution,
121-28 or storage for use or consumption in this state of
121-29 tangible personal property."
121-30 SECTION 5.
121-31 Said chapter is further amended by striking Code Section
121-32 48-8-43, relating to the disposition of certain excess
121-33 taxes, in its entirety and inserting in its place a new Code
121-34 Section 48-8-43 to read as follows:
121-35 "48-8-43.
121-36 When the tax collected for any period is in excess of 5.5
121-37 6 percent, the total tax collected shall be paid over to
121-38 the commissioner less the compensation to be allowed the
121-39 dealer."
-121-
122- 1 SECTION 6.
122- 2 Said chapter is further amended by striking subsection (d)
122- 3 of Code Section 48-8-63, relating to the payment of the tax
122- 4 by certain contractors, in its entirety and inserting in its
122- 5 place a new subsection (d) to read as follows:
122- 6 "(d)(1) Any person who subcontracts with a general or
122- 7 prime contractor shall be liable under this article as a
122- 8 general or prime contractor. The general or prime
122- 9 contractor shall withhold up to 5.5 6 percent of the
122-10 payments due the subcontractor arising out of the
122-11 contract entered into between the general and prime
122-12 contractor in satisfaction of any sales or use taxes
122-13 owed this state.
122-14 (2) The prime or general contractor shall withhold
122-15 payments as provided in paragraph (1) of this subsection
122-16 until the subcontractor furnishes him such contractor
122-17 with a certificate issued by the commissioner showing
122-18 that all sales taxes accruing by reason of the contract
122-19 between the subcontractor and the general or prime
122-20 contractor have been paid and satisfied. If the prime or
122-21 general contractor for any reason fails to withhold up
122-22 to 5.5 6 percent of the payments due the subcontractor
122-23 under their contract, he such contractor shall become
122-24 liable for any sales or use taxes due or owed this state
122-25 by the subcontractor."
122-26 SECTION 1.
122-27 Chapter 8 of Title 48 of the Official Code of Georgia
122-28 Annotated, relating to sales and use taxation, is amended by
122-29 striking Code Section 48-8-1.1, relating to applicability of
122-30 the increased state sales and use tax, and inserting in its
122-31 place a new Code Section 48-8-1.1, to read as follows:
122-32 "48-8-1.1.
122-33 (a) As used in this Code section, the term 'building and
122-34 construction materials' means all building and
122-35 construction materials, supplies, fixtures, or equipment,
122-36 any combination of such items, and any other leased or
122-37 purchased articles when the materials, supplies, fixtures,
122-38 equipment, or articles are to be utilized or consumed
122-39 during construction or are to be incorporated into
122-40 construction work pursuant to a bona fide written
122-41 construction contract.
-122-
123- 1 (b) The increased rate of state sales and use taxation
123- 2 from 5.5 6 percent to 6 6.5 percent shall not apply with
123- 3 respect to the sale or use of building and construction
123- 4 materials when the contract pursuant to which the
123- 5 materials are purchased or used was advertised for bid
123- 6 prior to January 1, 2001 2002, and the contract was
123- 7 entered into as a result of a bid actually submitted in
123- 8 response to the advertisement prior to January 1, 2001
123- 9 2002; provided, however, that any such sale or use shall
123-10 remain fully taxable at the prior rate of taxation.
123-11 (c) With respect to services which are regularly billed on
123-12 a monthly basis, the increased rate of state sales and use
123-13 taxation from 5.5 6 percent to 6 6.5 percent shall apply
123-14 to services billed on or after January 1, 2001 2002;
123-15 provided, however, that any such services billed prior to
123-16 such date shall remain fully taxable at the prior rate of
123-17 taxation."
123-18 SECTION 2.
123-19 Said chapter is further amended by striking subsections (a)
123-20 and (b) of Code Section 48-8-3.1, relating to sales tax
123-21 exemptions as applied to motor fuels, in their entirety and
123-22 inserting in their respective places new subsections (a) and
123-23 (b) to read as follows:
123-24 "(a) Except as provided in subsection (b) of this Code
123-25 section, sales of motor fuels as defined in paragraph (9)
123-26 of Code Section 48-9-2 shall be exempt from the first 3
123-27 percent of the sales and use taxes levied or imposed by
123-28 this article and shall be subject to the remaining 3 3.5
123-29 percent of the sales and use taxes levied or imposed by
123-30 this article.
123-31 (b) Sales of motor fuel other than gasoline which motor
123-32 fuel other than gasoline is purchased for purposes other
123-33 than propelling motor vehicles on public highways as
123-34 defined in Article 1 of Chapter 9 of this title shall be
123-35 fully subject to the 6 6.5 percent sales and use taxes
123-36 levied or imposed by this article unless otherwise
123-37 specifically exempted by this article."
123-38 SECTION 3.
123-39 Said chapter is further amended by striking Code Section
123-40 48-8-30, relating to the rate and imposition of the state
123-41 sales and use tax, in its entirety and inserting in its
123-42 place a new Code Section 48-8-30 to read as follows:
-123-
124- 1 "48-8-30.
124- 2 (a) There is levied and imposed a tax on the retail
124- 3 purchase, retail sale, rental, storage, use, or
124- 4 consumption of tangible personal property and on the
124- 5 services described in this article.
124- 6 (b)(1) Every purchaser of tangible personal property at
124- 7 retail in this state shall be liable for a tax on the
124- 8 purchase at the rate of 6 6.5 percent of the sales price
124- 9 of the purchase. The tax shall be paid by the purchaser
124-10 to the retailer making the sale, as provided in this
124-11 article. The retailer shall remit the tax to the
124-12 commissioner as provided in this article and, when
124-13 received by the commissioner, the tax shall be a credit
124-14 against the tax imposed on the retailer. Every person
124-15 making a sale or sales of tangible personal property at
124-16 retail in this state shall be a retailer and a dealer
124-17 and shall be liable for a tax on the sale at the rate of
124-18 6 6.5 percent of the gross sale or gross sales, or the
124-19 amount of taxes collected by him that person from his
124-20 the purchaser or purchasers, whichever is greater.
124-21 (2) No retail sale shall be taxable to the retailer or
124-22 dealer which is not taxable to the purchaser at retail.
124-23 (c) Upon the first instance of use, consumption,
124-24 distribution, or storage within this state of tangible
124-25 personal property purchased at retail outside this state,
124-26 the owner or user of the property shall be a dealer and
124-27 shall be liable for a tax at the rate of 6 6.5 percent of
124-28 the cost price or fair market value of the property,
124-29 whichever is the lesser. This subsection shall not be
124-30 construed to require a duplication in the payment of the
124-31 tax. The tax imposed by this subsection shall be subject
124-32 to the credit otherwise granted by this article for like
124-33 taxes previously paid in another state.
124-34 (c.1)(1) Every purchaser of tangible personal property
124-35 at retail outside this state from a dealer, as defined
124-36 in subparagraph (H) of paragraph (3) of Code Section
124-37 48-8-2, when such property is to be used, consumed,
124-38 distributed, or stored within this state, shall be
124-39 liable for a tax on the purchase at the rate of 6 6.5
124-40 percent of the sales price of the purchase. It shall be
124-41 prima-facie evidence that such property is to be used,
124-42 consumed, distributed, or stored within this state if
124-43 that property is delivered in this state to the
-124-
125- 1 purchaser or agent thereof. The tax shall be paid by
125- 2 the purchaser to the retailer making the sale, as
125- 3 provided in this article. The retailer shall remit the
125- 4 tax to the commissioner as provided in this article and,
125- 5 when received by the commissioner, the tax shall be a
125- 6 credit against the tax imposed on the retailer. Every
125- 7 person who is a dealer, as defined in subparagraph (H)
125- 8 of paragraph (3) of Code Section 48-8-2 and who makes
125- 9 any sale of tangible personal property at retail outside
125-10 this state which property is to be delivered in this
125-11 state to a purchaser or purchaser's agent shall be a
125-12 retailer and a dealer for purposes of this article and
125-13 shall be liable for a tax on the sale at the rate of 6
125-14 6.5 percent of such gross sales or the amount of tax as
125-15 collected by that person from purchasers having their
125-16 purchases delivered in this state, whichever is greater.
125-17 (2) No retail sale shall be taxable to the retailer or
125-18 dealer which is not taxable to the purchaser at retail.
125-19 The tax imposed by this subsection shall be subject to
125-20 the credit otherwise granted by this article for like
125-21 taxes previously paid in another state. This subsection
125-22 shall not be construed to require a duplication in the
125-23 payment of the tax.
125-24 (d)(1) Every person to whom tangible personal property
125-25 in the state is leased or rented shall be liable for a
125-26 tax on the lease or rental at the rate of 6 6.5 percent
125-27 of the gross lease or rental charge. The tax shall be
125-28 paid to the person who leases or rents the property by
125-29 the person to whom the property is leased or rented. A
125-30 person who leases or rents property to others as a
125-31 dealer under this article shall remit the tax to the
125-32 commissioner as provided in this article. When received
125-33 by the commissioner, the tax shall be a credit against
125-34 the tax imposed on the person who leases or rents the
125-35 property to others. Every person who leases or rents
125-36 tangible personal property in this state to others shall
125-37 be a dealer and shall be liable for a tax on the lease
125-38 or rental at the rate of 6 6.5 percent of the gross
125-39 lease or rental proceeds, or the amount of taxes
125-40 collected by him that person from persons to whom he
125-41 that person leases or rents tangible personal property,
125-42 whichever is greater.
125-43 (2) No lease or rental shall be taxable to the person
125-44 who leases or rents tangible property to another which
-125-
126- 1 is not taxable to the person to whom the property is
126- 2 leased or rented.
126- 3 (3) The lessee of both taxable and exempt property in
126- 4 this state under a single lease agreement containing a
126- 5 lease period of ten years or more shall have the option
126- 6 to discharge in full all sales and use taxes imposed by
126- 7 this article relating to the tangible personal property
126- 8 by paying in a lump sum 6 6.5 percent of the fair market
126- 9 value of the tangible personal property at the date of
126-10 inception of the lease agreement in the same manner and
126-11 under the same conditions applicable to sales of the
126-12 tangible personal property.
126-13 (e) Upon the first instance of use within this state of
126-14 tangible personal property leased or rented outside this
126-15 state, the person to whom the property is leased or rented
126-16 shall be a dealer and shall be liable for a tax at the
126-17 rate of 6 6.5 percent of the rental charge paid to the
126-18 person who leased or rented the property, subject to the
126-19 credit authorized for like taxes previously paid in
126-20 another state.
126-21 (e.1)(1) Every person who leases, as lessor, or rents
126-22 tangible personal property outside this state for use
126-23 within this state shall be liable for a tax at the rate
126-24 of 6 6.5 percent of the rental charge paid for that
126-25 lease or rental if that person is a dealer, as defined
126-26 in subparagraph (H) of paragraph (3) of Code Section
126-27 48-8-2 and title to that property remains in that
126-28 person. It shall be prima-facie evidence that such
126-29 property is to be used within this state if that
126-30 property is delivered in this state to the lessee or
126-31 renter of such property, or to the agent of either. The
126-32 tax shall be paid by the lessee or renter and payment of
126-33 the tax shall be made to the lessor or person receiving
126-34 rental payments for that property, which person shall be
126-35 the dealer for purposes of this article. The dealer
126-36 shall remit the tax to the commissioner as provided in
126-37 this article and, when received by the commissioner, the
126-38 tax shall be a credit against the tax imposed on the
126-39 dealer. Every person who is a dealer, as defined in
126-40 subparagraph (H) of paragraph (3) of Code Section 48-8-2
126-41 and who leases or rents tangible personal property
126-42 outside this state to be delivered in this state to the
126-43 lessee, renter, or agent of either shall be a dealer and
126-44 shall be liable as such for a tax on the lease or rental
-126-
127- 1 at the rate of 6 6.5 percent of the gross proceeds from
127- 2 such leases or rentals or the amount of taxes collected
127- 3 by that dealer for leases or rentals of tangible
127- 4 personal property delivered in this state, whichever is
127- 5 greater.
127- 6 (2) No lease or rental shall be taxable to the dealer
127- 7 which is not taxable to the lessee or renter. The tax
127- 8 imposed by this subsection shall be subject to the
127- 9 credit granted by this article for like taxes previously
127-10 paid in another state. This subsection shall not be
127-11 construed to require a duplication in the payment of the
127-12 tax.
127-13 (f)(1) Every person purchasing or receiving any service
127-14 within this state, the purchase of which is a retail
127-15 sale, shall be liable for tax on the purchase at the
127-16 rate of 6 6.5 percent of the gross charge or charges
127-17 made for the purchase. The tax shall be paid by the
127-18 person purchasing or receiving the service to the person
127-19 furnishing the service. The person furnishing the
127-20 service, as a dealer under this article, shall remit the
127-21 tax to the commissioner as provided in this article;
127-22 and, when received by the commissioner, the tax shall be
127-23 a credit against the tax imposed on the person
127-24 furnishing the service. Every person furnishing a
127-25 service, the purchase of which is a retail sale, shall
127-26 be a dealer and shall be liable for a tax on the sale at
127-27 the rate of 6 6.5 percent of the gross charge or charges
127-28 made for furnishing the service, or the amount of taxes
127-29 collected by him that person from the person to whom the
127-30 service is furnished, whichever is greater.
127-31 (2) No sale of services shall be taxable to the person
127-32 furnishing the service which is not taxable to the
127-33 purchaser of the service.
127-34 (g) Whenever a purchaser of tangible personal property
127-35 under subsection (b) or (c.1) of this Code section, a
127-36 lessee or renter of the property under subsection (d) or
127-37 (e.1) of this Code section, or a purchaser of tangible
127-38 services under subsection (f) of this Code section does
127-39 not pay the tax imposed upon him such person to the
127-40 retailer, lessor, or dealer who rents involved in the
127-41 taxable transaction, the purchaser, lessee, or renter
127-42 shall be a dealer himself and the commissioner, whenever
127-43 he or she has reason to believe that a purchaser or lessee
127-44 has not so paid the tax, may assess and collect the tax
-127-
128- 1 directly against and from the purchaser, lessee, or
128- 2 renter, unless the purchaser, lessee, or renter shows that
128- 3 the retailer, lessor, or dealer who rents involved in the
128- 4 transaction has nevertheless remitted to the commissioner
128- 5 the tax imposed on the transaction. If payment is
128- 6 received directly from the purchaser, it shall not be
128- 7 collected a second time from the retailer, lessor, or
128- 8 dealer who rents involved.
128- 9 (h) The tax imposed by this Code section shall be
128-10 collected from the dealer and paid at the time and in the
128-11 manner provided in this article. Any person engaging or
128-12 continuing in business as a retailer and wholesaler or
128-13 jobber shall pay the tax imposed on the gross proceeds of
128-14 retail sales of the business at the rate specified when
128-15 proper books are kept showing separately the gross
128-16 proceeds of sales for each business. If the records are
128-17 not kept separately, the tax shall be paid as a retailer
128-18 or dealer on the gross sales of the business. For the
128-19 purpose of this Code section, all sales through any one
128-20 vending machine shall be treated as a single sale. The
128-21 gross proceeds for reporting vending sales shall be
128-22 treated as if the tax is included in the sale and the
128-23 taxable proceeds shall be net of the tax included in the
128-24 sale.
128-25 (i) The tax levied by this Code section is in addition to
128-26 all other taxes, whether levied in the form of excise,
128-27 license, or privilege taxes, and shall be in addition to
128-28 all other fees and taxes levied."
128-29 SECTION 4.
128-30 Said chapter is further amended by striking Code Section
128-31 48-8-32, relating to collection of the tax from dealers, in
128-32 its entirety and inserting in its place a new Code Section
128-33 48-8-32 to read as follows:
128-34 "48-8-32.
128-35 The tax at the rate of 6 6.5 percent of the retail sales
128-36 price at the time of sale or 6 6.5 percent of the cost
128-37 price at the time of purchase, as the case may be, shall
128-38 be collectable from all persons engaged as dealers in the
128-39 sale at retail, or in the use, consumption, distribution,
128-40 or storage for use or consumption in this state of
128-41 tangible personal property."
-128-
129- 1 SECTION 5.
129- 2 Said chapter is further amended by striking Code Section
129- 3 48-8-43, relating to the disposition of certain excess
129- 4 taxes, in its entirety and inserting in its place a new Code
129- 5 Section 48-8-43 to read as follows:
129- 6 "48-8-43.
129- 7 When the tax collected for any period is in excess of 6
129- 8 6.5 percent, the total tax collected shall be paid over to
129- 9 the commissioner less the compensation to be allowed the
129-10 dealer."
129-11 SECTION 6.
129-12 Said chapter is further amended by striking subsection (d)
129-13 of Code Section 48-8-63, relating to the payment of the tax
129-14 by certain contractors, in its entirety and inserting in its
129-15 place a new subsection (d) to read as follows:
129-16 "(d)(1) Any person who subcontracts with a general or
129-17 prime contractor shall be liable under this article as a
129-18 general or prime contractor. The general or prime
129-19 contractor shall withhold up to 6 6.5 percent of the
129-20 payments due the subcontractor arising out of the
129-21 contract entered into between the general and prime
129-22 contractor in satisfaction of any sales or use taxes
129-23 owed this state.
129-24 (2) The prime or general contractor shall withhold
129-25 payments as provided in paragraph (1) of this subsection
129-26 until the subcontractor furnishes him such contractor
129-27 with a certificate issued by the commissioner showing
129-28 that all sales taxes accruing by reason of the contract
129-29 between the subcontractor and the general or prime
129-30 contractor have been paid and satisfied. If the prime or
129-31 general contractor for any reason fails to withhold up
129-32 to 6 6.5 percent of the payments due the subcontractor
129-33 under their contract, he such contractor shall become
129-34 liable for any sales or use taxes due or owed this state
129-35 by the subcontractor."
129-36 SECTION 1.
129-37 (a) Part I of this Act, this part, and Part X of this Act
129-38 shall become effective upon their approval by the Governor
129-39 or upon their becoming law without such approval.
-129-
130- 1 (b) Parts II and III of this Act shall become effective on
130- 2 January 1, 2002.
130- 3 (c) Part IV of this Act shall become effective on January 1,
130- 4 1998.
130- 5 (d) Part V of this Act shall become effective on January 1,
130- 6 1999.
130- 7 (e) Part VI of this Act shall become effective on January 1,
130- 8 2000.
130- 9 (f) Part VII of this Act shall become effective on January
130-10 1, 2001.
130-11 (g) Part VIII of this Act shall become effective on January
130-12 1, 2002.
130-13 SECTION 1.
130-14 All laws and parts of laws in conflict with this Act are
130-15 repealed.
-130-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98