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HB 1349 - Income tax overpayments; interest on refunds

Jennings, Paul (63rd)	Buck, III, Thomas B (135th)	Smith, Paul E (12th)
Scarlett, Stephen G (174th)	Jamieson, Mary Jeanette (22nd)	Kaye, Mitchell (37th)

Status Summary	HC:	W&M	SC:	F&PU	FR:	02/07/00	LA:	04/27/00	Signed by Governor

First Reader Summary

A BILL to amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, so as to change the rate of interest paid with respect to certain refunds; to change the rate of interest with respect to income tax overpayments; to change the rate of interest paid with respect to certain estimated income tax overpayments; and for other purposes.

HB 1349                                            LC 18 0136 
 
 
 
 
 
 
                        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 change the rate 
  1- 3  of interest paid with respect to certain refunds; to change 
  1- 4  the rate of interest with respect to income tax 
  1- 5  overpayments; to change the rate of interest paid with 
  1- 6  respect to certain estimated income tax overpayments; to 
  1- 7  provide an effective date; to repeal conflicting laws; and 
  1- 8  for other purposes. 
 
  1- 9       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-10                           SECTION 1. 
 
  1-11  Title 48 of the Official Code of Georgia Annotated, relating 
  1-12  to revenue and taxation, is amended by striking subsection 
  1-13  (a) of Code Section 48-2-35, relating to refunds, and 
  1-14  inserting in its place a new subsection (a) to read as 
  1-15  follows: 
 
  1-16    "(a) A taxpayer shall be refunded any and all taxes or 
  1-17    fees which are determined to have been erroneously or 
  1-18    illegally assessed and collected from him such taxpayer 
  1-19    under the laws of this state, whether paid voluntarily or 
  1-20    involuntarily, and shall be refunded interest on the 
  1-21    amount of the taxes or fees at the rate of 9 percent per 
  1-22    annum of 1 percent per month from the date of payment of 
  1-23    the tax or fee to the commissioner.  For the purposes of 
  1-24    this Code section, any period of less than one month shall 
  1-25    be considered to be one month.  Refunds shall be drawn 
  1-26    from the treasury on warrants of the Governor issued upon 
  1-27    itemized requisitions showing in each instance the person 
  1-28    to whom the refund is to be made, the amount of the 
  1-29    refund, and the reason for the refund." 
 
  1-30                           SECTION 2. 
 
  1-31  Said title is further amended by striking paragraph (1) of 
  1-32  subsection (b) of Code Section 48-7-112, relating to 
  1-33  employee refunds and credits with respect to income tax 
 
 
 
                                 -1- 
 
 
 
  2- 1  withholdings, and inserting in its place a new paragraph (1) 
  2- 2  to read as follows: 
 
  2- 3      "(1) To the extent that the credit provided in 
  2- 4      subsection (a) of this Code section together with other 
  2- 5      credits allowed by law is in excess of the employee's 
  2- 6      income tax liability for the taxable year as shown on an 
  2- 7      income tax return filed by the employee for that year, 
  2- 8      the overpayment shall be considered as taxes erroneously 
  2- 9      paid and shall be credited or refunded as provided in 
  2-10      this Code section.  An overpayment shall be credited to 
  2-11      the person's estimated income tax liability for the 
  2-12      succeeding taxable year unless the person claims a 
  2-13      refund for the overpayment.  The commissioner may 
  2-14      consider any final return showing an overpayment as a 
  2-15      claim for refund per se.  An overpayment shall bear no 
  2-16      interest if credit is given for the overpayment. 
  2-17      Amounts refunded as overpayments shall bear interest at 
  2-18      the rate of 9 percent per annum provided in Code Section 
  2-19      48-2-35 but only after 90 days from the filing date of 
  2-20      the final return showing the overpayment or from the due 
  2-21      date of the final return, whichever is later." 
 
  2-22                           SECTION 3. 
 
  2-23  Said title is further amended by striking subsection (b) of 
  2-24  Code Section 48-7-121, relating to estimated income tax 
  2-25  credits or refunds, and inserting in its place a new 
  2-26  subsection (b) to read as follows: 
 
  2-27    "(b) To the extent that the estimated tax credit, together 
  2-28    with other credits allowed by law, is in excess of the 
  2-29    taxpayer's income tax liability for a taxable year as 
  2-30    shown on an income tax return filed by the taxpayer for 
  2-31    that year, the overpayment shall be considered as taxes 
  2-32    erroneously paid and shall be credited or refunded as 
  2-33    provided in this subsection. The overpayment shall be 
  2-34    credited to the taxpayer's estimated income tax liability 
  2-35    for the succeeding taxable year unless the taxpayer claims 
  2-36    a refund for the overpayment. The commissioner may 
  2-37    consider any final return showing an overpayment as a 
  2-38    claim for refund per se.  An overpayment shall bear no 
  2-39    interest if credit is given for the overpayment.  Amounts 
  2-40    refunded as overpayments shall bear interest at the rate 
  2-41    of 9 percent per annum provided in Code Section 48-2-35 
  2-42    but only after 90 days from the filing date of the final 
  2-43    return showing the overpayment or 90 days from the due 
  2-44    date of the final return, whichever is later." 
 
 
                                 -2- 
 
 
 
  3- 1                           SECTION 4. 
 
  3- 2  This Act shall become effective on January 1, 2001. 
 
  3- 3                           SECTION 5. 
 
  3- 4  All laws and parts of laws in conflict with this Act are 
  3- 5  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -3-