| HB 191 - Income tax; gradual reduction and abolishment |
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, 2009; and for other
purposes.
| House |
Action |
Senate |
| 1/26/99 |
Read 1st Time |
|
| 1/27/99 |
Read 2nd Time |
|
HB 191 LC 18 9198
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 2009; to provide for the collection of individual income
1- 8 taxes until such abolishment; 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 editorial
1-21 revision; to provide for other matters relative to the
1-22 foregoing; to provide for effective dates; to repeal
1-23 conflicting laws; and for other purposes.
1-24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-25 SECTION 1.
1-26 Title 48 of the Official Code of Georgia Annotated, relating
1-27 to revenue and taxation, is amended by striking in its
1-28 entirety paragraph (1) of subsection (b) of Code Section
1-29 48-7-20, relating to the income tax rate for individuals,
1-30 and inserting in lieu thereof a new paragraph (1) to read as
1-31 follows:
-1-
2- 1 "(b)(1) The tax imposed pursuant to subsection (a) of
2- 2 this Code section shall be computed in accordance with
2- 3 the following tables:
2- 4 (A) For the taxable year beginning on or after January
2- 5 1, 1999, and prior to January 1, 2000:
2- 6 SINGLE PERSON
2- 7 If Georgia Taxable
2- 8 Net Income Is: The Tax Is:
2- 9 Not over $750.00 ............. 1%
2-10 Over $750.00 but not over
2-11 $2,250.00 .................... $7.50 plus 2% of
2-12 Over $2,250.00 but not over
2-13 $3,750.00 .................... $37.50 plus 3% of
2-14 Over $3,750.00 but not over
2-15 $5,250.00 .................... $82.50 plus 4% of
2-16 Over $5,250.00 but not over
2-17 $7,000.00 .................... $142.50 plus 5% of
2-18 Over $7,000.00 ............... $230.00 plus 6% of
2-19 MARRIED PERSON FILING A SEPARATE RETURN
2-20 If Georgia Taxable
2-21 Net Income Is: The Tax Is:
2-22 Not over $500.00 ............. 1%
2-23 Over $500.00 but not over
2-24 $1,500.00 .................... $5.00 plus 2% of
2-25 Over $1,500.00 but not over
2-26 $2,500.00 .................... $25.00 plus 3% of
2-27 Over $2,500.00 but not over
2-28 $3,500.00 .................... $55.00 plus 4% of
-2-
3- 1 Over $3,500.00 but not over
3- 2 $5,000.00 .................... $95.00 plus 5% of
3- 3 Over $5,000.00 ............... $170.00 plus 6% of
3- 4 HEAD OF HOUSEHOLD AND MARRIED PERSONS
3- 5 FILING A JOINT RETURN
3- 6 If Georgia Taxable
3- 7 Net Income Is: The Tax Is:
3- 8 Not over $1,000.00 ........... 1%
3- 9 Over $1,000.00 but not over
3-10 $3,000.00 .................... $10.00 plus 2% of
3-11 Over $3,000.00 but not over
3-12 $5,000.00 .................... $50.00 plus 3% of
3-13 Over $5,000.00 but not over
3-14 $7,000.00 .................... $110.00 plus 4% of
3-15 Over $7,000.00 but not over
3-16 $10,000.00 ................... $190.00 plus 5% of
3-17 Over $10,000.00 .............. $340.00 plus 6% of
3-18 (B) For the taxable year beginning on or after January
3-19 1, 2000, and prior to January 1, 2001:
3-20 SINGLE PERSON
3-21 If Georgia Taxable
3-22 Net Income Is: The Tax Is:
3-23 Not over $750.00 ............. .9%
3-24 Over $750.00 but not over
3-25 $2,250.00 .................... $7.50 plus 1.8% of
3-26 Over $2,250.00 but not over
3-27 $3,750.00 .................... $37.50 plus 2.7% of
-3-
4- 1 Over $3,750.00 but not over
4- 2 $5,250.00 .................... $82.50 plus 3.6% of
4- 3 Over $5,250.00 but not over
4- 4 $7,000.00 .................... $142.50 plus 4.5% of
4- 5 Over $7,000.00 ............... $230.00 plus 5.4% of
4- 6 MARRIED PERSON FILING A SEPARATE RETURN
4- 7 If Georgia Taxable
4- 8 Net Income Is: The Tax Is:
4- 9 Not over $500.00 ............. .9%
4-10 Over $500.00 but not over
4-11 $1,500.00 .................... $5.00 plus 1.8% of
4-12 Over $1,500.00 but not over
4-13 $2,500.00 .................... $25.00 plus 2.7% of
4-14 Over $2,500.00 but not over
4-15 $3,500.00 .................... $55.00 plus 3.6% of
4-16 Over $3,500.00 but not over
4-17 $5,000.00 .................... $95.00 plus 4.5% of
4-18 Over $5,000.00 ............... $170.00 plus 5.4% of
4-19 HEAD OF HOUSEHOLD AND MARRIED PERSONS
4-20 FILING A JOINT RETURN
4-21 If Georgia Taxable
4-22 Net Income Is: The Tax Is:
4-23 Not over $1,000.00 ........... .9%
4-24 Over $1,000.00 but not over
4-25 $3,000.00 .................... $10.00 plus 1.8% of
4-26 Over $3,000.00 but not over
4-27 $5,000.00 .................... $50.00 plus 2.7% of
-4-
5- 1 Over $5,000.00 but not over
5- 2 $7,000.00 .................... $110.00 plus 3.6% of
5- 3 Over $7,000.00 but not over
5- 4 $10,000.00 ................... $190.00 plus 4.5% of
5- 5 Over $10,000.00 .............. $340.00 plus 5.4% of
5- 6 (C) For the taxable year beginning on or after January
5- 7 1, 2001, and prior to January 1, 2002:
5- 8 SINGLE PERSON
5- 9 If Georgia Taxable
5-10 Net Income Is: The Tax Is:
5-11 Not over $750.00 ............. .8%
5-12 Over $750.00 but not over
5-13 $2,250.00 .................... $7.50 plus 1.6% of
5-14 Over $2,250.00 but not over
5-15 $3,750.00 .................... $37.50 plus 2.4% of
5-16 Over $3,750.00 but not over
5-17 $5,250.00 .................... $82.50 plus 3.2% of
5-18 Over $5,250.00 but not over
5-19 $7,000.00 .................... $142.50 plus 4% of
5-20 Over $7,000.00 ............... $230.00 plus 4.8% of
5-21 MARRIED PERSON FILING A SEPARATE RETURN
5-22 If Georgia Taxable
5-23 Net Income Is: The Tax Is:
5-24 Not over $500.00 ............. .8%
5-25 Over $500.00 but not over
5-26 $1,500.00 .................... $5.00 plus 1.6% of
5-27 Over $1,500.00 but not over
5-28 $2,500.00 .................... $25.00 plus 2.4% of
-5-
6- 1 Over $2,500.00 but not over
6- 2 $3,500.00 .................... $55.00 plus 3.2% of
6- 3 Over $3,500.00 but not over
6- 4 $5,000.00 .................... $95.00 plus 4% of
6- 5 Over $5,000.00 ............... $170.00 plus 4.8% of
6- 6 HEAD OF HOUSEHOLD AND MARRIED PERSONS
6- 7 FILING A JOINT RETURN
6- 8 If Georgia Taxable
6- 9 Net Income Is: The Tax Is:
6-10 Not over $1,000.00 ........... .8%
6-11 Over $1,000.00 but not over
6-12 $3,000.00 .................... $10.00 plus 1.6% of
6-13 Over $3,000.00 but not over
6-14 $5,000.00 .................... $50.00 plus 2.4% of
6-15 Over $5,000.00 but not over
6-16 $7,000.00 .................... $110.00 plus 3.2% of
6-17 Over $7,000.00 but not over
6-18 $10,000.00 ................... $190.00 plus 4% of
6-19 Over $10,000.00 .............. $340.00 plus 4.8% of
6-20 (D) For the taxable year beginning on or after January
6-21 1, 2002, and prior to January 1, 2003:
6-22 SINGLE PERSON
6-23 If Georgia Taxable
6-24 Net Income Is: The Tax Is:
6-25 Not over $750.00 ............. .7%
6-26 Over $750.00 but not over
6-27 $2,250.00 .................... $7.50 plus 1.4% of
-6-
7- 1 Over $2,250.00 but not over
7- 2 $3,750.00 .................... $37.50 plus 2.1% of
7- 3 Over $3,750.00 but not over
7- 4 $5,250.00 .................... $82.50 plus 2.8% of
7- 5 Over $5,250.00 but not over
7- 6 $7,000.00 .................... $142.50 plus 3.5% of
7- 7 Over $7,000.00 ............... $230.00 plus 4.2% 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 ............. .7%
7-12 Over $500.00 but not over
7-13 $1,500.00 .................... $5.00 plus 1.4% of
7-14 Over $1,500.00 but not over
7-15 $2,500.00 .................... $25.00 plus 2.1% of
7-16 Over $2,500.00 but not over
7-17 $3,500.00 .................... $55.00 plus 2.8% of
7-18 Over $3,500.00 but not over
7-19 $5,000.00 .................... $95.00 plus 3.5% of
7-20 Over $5,000.00 ............... $170.00 plus 4.2% 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 ........... .7%
7-26 Over $1,000.00 but not over
7-27 $3,000.00 .................... $10.00 plus 1.4% of
-7-
8- 1 Over $3,000.00 but not over
8- 2 $5,000.00 .................... $50.00 plus 2.1% of
8- 3 Over $5,000.00 but not over
8- 4 $7,000.00 .................... $110.00 plus 2.8% of
8- 5 Over $7,000.00 but not over
8- 6 $10,000.00 ................... $190.00 plus 3.5% of
8- 7 Over $10,000.00 .............. $340.00 plus 4.2% of
8- 8 (E) For the taxable year beginning on or after January
8- 9 1, 2003, and prior to January 1, 2004:
8-10 SINGLE PERSON
8-11 If Georgia Taxable
8-12 Net Income Is: The Tax Is:
8-13 Not over $750.00 ............. .6%
8-14 Over $750.00 but not over
8-15 $2,250.00 .................... $7.50 plus 1.2% of
8-16 Over $2,250.00 but not over
8-17 $3,750.00 .................... $37.50 plus 1.8% of
8-18 Over $3,750.00 but not over
8-19 $5,250.00 .................... $82.50 plus 2.4% of
8-20 Over $5,250.00 but not over
8-21 $7,000.00 .................... $142.50 plus 3% of
8-22 Over $7,000.00 ............... $230.00 plus 3.6% of
8-23 MARRIED PERSON FILING A SEPARATE RETURN
8-24 If Georgia Taxable
8-25 Net Income Is: The Tax Is:
8-26 Not over $500.00 ............. .6%
8-27 Over $500.00 but not over
8-28 $1,500.00 .................... $5.00 plus 1.2% of
-8-
9- 1 Over $1,500.00 but not over
9- 2 $2,500.00 .................... $25.00 plus 1.8% of
9- 3 Over $2,500.00 but not over
9- 4 $3,500.00 .................... $55.00 plus 2.4% of
9- 5 Over $3,500.00 but not over
9- 6 $5,000.00 .................... $95.00 plus 3% of
9- 7 Over $5,000.00 ............... $170.00 plus 3.6% 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 ........... .6%
9-13 Over $1,000.00 but not over
9-14 $3,000.00 .................... $10.00 plus 1.2% of
9-15 Over $3,000.00 but not over
9-16 $5,000.00 ................... $50.00 plus 1.8% of
9-17 Over $5,000.00 but not over
9-18 $7,000.00 .................... $110.00 plus 2.4% of
9-19 Over $7,000.00 but not over
9-20 $10,000.00 ................... $190.00 plus 3% of
9-21 Over $10,000.00 .............. $340.00 plus 3.6% of
9-22 (F) For the taxable year beginning on or after January
9-23 1, 2004, and prior to January 1, 2005:
9-24 SINGLE PERSON
9-25 If Georgia Taxable
9-26 Net Income Is: The Tax Is:
9-27 Not over $750.00 ............. .5%
-9-
10- 1 Over $750.00 but not over
10- 2 $2,250.00 .................... $7.50 plus 1.0% of
10- 3 Over $2,250.00 but not over
10- 4 $3,750.00 .................... $37.50 plus 1.5% of
10- 5 Over $3,750.00 but not over
10- 6 $5,250.00 .................... $82.50 plus 2% of
10- 7 Over $5,250.00 but not over
10- 8 $7,000.00 .................... $142.50 plus 2.5% of
10- 9 Over $7,000.00 ............... $230.00 plus 3% of
10-10 MARRIED PERSON FILING A SEPARATE RETURN
10-11 If Georgia Taxable
10-12 Net Income Is: The Tax Is:
10-13 Not over $500.00 ............. .5%
10-14 Over $500.00 but not over
10-15 $1,500.00 .................... $5.00 plus 1.0% of
10-16 Over $1,500.00 but not over
10-17 $2,500.00 .................... $25.00 plus 1.5% of
10-18 Over $2,500.00 but not over
10-19 $3,500.00 .................... $55.00 plus 2% of
10-20 Over $3,500.00 but not over
10-21 $5,000.00 .................... $95.00 plus 2.5% of
10-22 Over $5,000.00 ............... $170.00 plus 3% of
10-23 HEAD OF HOUSEHOLD AND MARRIED PERSONS
10-24 FILING A JOINT RETURN
10-25 If Georgia Taxable
10-26 Net Income Is: The Tax Is:
10-27 Not over $1,000.00 ........... .5%
-10-
11- 1 Over $1,000.00 but not over
11- 2 $3,000.00 .................... $10.00 plus 1.0% of
11- 3 Over $3,000.00 but not over
11- 4 $5,000.00 .................... $50.00 plus 1.5% of
11- 5 Over $5,000.00 but not over
11- 6 $7,000.00 .................... $110.00 plus 2% of
11- 7 Over $7,000.00 but not over
11- 8 $10,000.00 ................... $190.00 plus 2.5% of
11- 9 Over $10,000.00 .............. $340.00 plus 3% of
11-10 (G) For the taxable year beginning on or after January
11-11 1, 2005, and prior to January 1, 2006:
11-12 SINGLE PERSON
11-13 If Georgia Taxable
11-14 Net Income Is: The Tax Is:
11-15 Not over $750.00 ............. .4%
11-16 Over $750.00 but not over
11-17 $2,250.00 ..................... $7.50 plus .8% of
11-18 Over $2,250.00 but not over
11-19 $3,750.00 .................... $37.50 plus 1.2% of
11-20 Over $3,750.00 but not over
11-21 $5,250.00 .................... $82.50 plus 1.6% of
11-22 Over $5,250.00 but not over
11-23 $7,000.00 .................... $142.50 plus 2% of
11-24 Over $7,000.00 ............... $230.00 plus 2.4% of
11-25 MARRIED PERSON FILING A SEPARATE RETURN
11-26 If Georgia Taxable
11-27 Net Income Is: The Tax Is:
11-28 Not over $500.00 ............. .4%
-11-
12- 1 Over $500.00 but not over
12- 2 $1,500.00 .................... $5.00 plus .8% of
12- 3 Over $1,500.00 but not over
12- 4 $2,500.00 .................... $25.00 plus 1.2% of
12- 5 Over $2,500.00 but not over
12- 6 $3,500.00 .................... $55.00 plus 1.6% of
12- 7 Over $3,500.00 but not over
12- 8 $5,000.00 .................... $95.00 plus 2% of
12- 9 Over $5,000.00 ............... $170.00 plus 2.4% of
12-10 HEAD OF HOUSEHOLD AND MARRIED PERSONS
12-11 FILING A JOINT RETURN
12-12 If Georgia Taxable
12-13 Net Income Is: The Tax Is:
12-14 Not over $1,000.00 ........... .4%
12-15 Over $1,000.00 but not over
12-16 $3,000.00 .................... $10.00 plus .8% of
12-17 Over $3,000.00 but not over
12-18 $5,000.00 .................... $50.00 plus 1.2% of
12-19 Over $5,000.00 but not over
12-20 $7,000.00 .................... $110.00 plus 1.6% of
12-21 Over $7,000.00 but not over
12-22 $10,000.00 ................... $190.00 plus 2% of
12-23 Over $10,000.00 .............. $340.00 plus 2.4% of
12-24 (H) For the taxable year beginning on or after January
12-25 1, 2006, and prior to January 1, 2007:
-12-
13- 1 SINGLE PERSON
13- 2 If Georgia Taxable
13- 3 Net Income Is: The Tax Is:
13- 4 Not over $750.00 ............. .3%
13- 5 Over $750.00 but not over
13- 6 $2,250.00 .................... $7.50 plus .6% of
13- 7 Over $2,250.00 but not over
13- 8 $3,750.00 .................... $37.50 plus .9% of
13- 9 Over $3,750.00 but not over
13-10 $5,250.00 .................... $82.50 plus 1.2% of
13-11 Over $5,250.00 but not over
13-12 $7,000.00 .................... $142.50 plus 1.5% of
13-13 Over $7,000.00 ............... $230.00 plus 1.8% of
13-14 MARRIED PERSON FILING A SEPARATE RETURN
13-15 If Georgia Taxable
13-16 Net Income Is: The Tax Is:
13-17 Not over $500.00 ............. .3%
13-18 Over $500.00 but not over
13-19 $1,500.00 .................... $5.00 plus .6% of
13-20 Over $1,500.00 but not over
13-21 $2,500.00 .................... $25.00 plus .9% of
13-22 Over $2,500.00 but not over
13-23 $3,500.00 .................... $55.00 plus 1.2% of
13-24 Over $3,500.00 but not over
13-25 $5,000.00 .................... $95.00 plus 1.5% of
13-26 Over $5,000.00 ............... $170.00 plus 1.8% of
-13-
14- 1 HEAD OF HOUSEHOLD AND MARRIED PERSONS
14- 2 FILING A JOINT RETURN
14- 3 If Georgia Taxable
14- 4 Net Income Is: The Tax Is:
14- 5 Not over $1,000.00 ........... .3%
14- 6 Over $1,000.00 but not over
14- 7 $3,000.00 .................... $10.00 plus .6% of
14- 8 Over $3,000.00 but not over
14- 9 $5,000.00 .................... $50.00 plus .9% of
14-10 Over $5,000.00 but not over
14-11 $7,000.00 .................... $110.00 plus 1.2% of
14-12 Over $7,000.00 but not over
14-13 $10,000.00 ................... $190.00 plus 1.5% of
14-14 Over $10,000.00 .............. $340.00 plus 1.8% of
14-15 (I) For the taxable year beginning on or after January
14-16 1, 2007, and prior to January 1, 2008:
14-17 SINGLE PERSON
14-18 If Georgia Taxable
14-19 Net Income Is: The Tax Is:
14-20 Not over $750.00 ............. .2%
14-21 Over $750.00 but not over
14-22 $2,250.00 .................... $7.50 plus .4% of
14-23 Over $2,250.00 but not over
14-24 $3,750.00 .................... $37.50 plus .6% of
14-25 Over $3,750.00 but not over
14-26 $5,250.00 .................... $82.50 plus .8% of
14-27 Over $5,250.00 but not over
14-28 $7,000.00 .................... $142.50 plus 1% of
-14-
15- 1 Over $7,000.00 ............... $230.00 plus 1.2% of
15- 2 MARRIED PERSON FILING A SEPARATE RETURN
15- 3 If Georgia Taxable
15- 4 Net Income Is: The Tax Is:
15- 5 Not over $500.00 ............. .2%
15- 6 Over $500.00 but not over
15- 7 $1,500.00 .................... $5.00 plus .4% of
15- 8 Over $1,500.00 but not over
15- 9 $2,500.00 .................... $25.00 plus .6% of
15-10 Over $2,500.00 but not over
15-11 $3,500.00 .................... $55.00 plus .8% of
15-12 Over $3,500.00 but not over
15-13 $5,000.00 .................... $95.00 plus 1% of
15-14 Over $5,000.00 ............... $170.00 plus 1.2% of
15-15 HEAD OF HOUSEHOLD AND MARRIED PERSONS
15-16 FILING A JOINT RETURN
15-17 If Georgia Taxable
15-18 Net Income Is: The Tax Is:
15-19 Not over $1,000.00 ........... .2%
15-20 Over $1,000.00 but not over
15-21 $3,000.00 .................... $10.00 plus .4% of
15-22 Over $3,000.00 but not over
15-23 $5,000.00 .................... $50.00 plus .6% of
15-24 Over $5,000.00 but not over
15-25 $7,000.00 .................... $110.00 plus .8% of
15-26 Over $7,000.00 but not over
15-27 $10,000.00 ................... $190.00 plus 1% of
-15-
16- 1 Over $10,000.00 .............. $340.00 plus 1.2% of
16- 2 (J) For the taxable year beginning on or after January
16- 3 1, 2008, and prior to January 1, 2009:
16- 4 SINGLE PERSON
16- 5 If Georgia Taxable
16- 6 Net Income Is: The Tax Is:
16- 7 Not over $750.00 ............. .1%
16- 8 Over $750.00 but not over
16- 9 $2,250.00 .................... $7.50 plus .2% of
16-10 Over $2,250.00 but not over
16-11 $3,750.00 .................... $37.50 plus .3% of
16-12 Over $3,750.00 but not over
16-13 $5,250.00 .................... $82.50 plus .4% of
16-14 Over $5,250.00 but not over
16-15 $7,000.00 .................... $142.50 plus .5% of
16-16 Over $7,000.00 ............... $230.00 plus .6% of
16-17 MARRIED PERSON FILING A SEPARATE RETURN
16-18 If Georgia Taxable
16-19 Net Income Is: The Tax Is:
16-20 Not over $500.00 ............. .1%
16-21 Over $500.00 but not over
16-22 $1,500.00 .................... $5.00 plus .2% of
16-23 Over $1,500.00 but not over
16-24 $2,500.00 .................... $25.00 plus .3% of
16-25 Over $2,500.00 but not over
16-26 $3,500.00 .................... $55.00 plus .4% of
16-27 Over $3,500.00 but not over
16-28 $5,000.00 .................... $95.00 plus .5% of
-16-
17- 1 Over $5,000.00 ............... $170.00 plus .6% of
17- 2 HEAD OF HOUSEHOLD AND MARRIED PERSONS
17- 3 FILING A JOINT RETURN
17- 4 If Georgia Taxable
17- 5 Net Income Is: The Tax Is:
17- 6 Not over $1,000.00 ........... .1%
17- 7 Over $1,000.00 but not over
17- 8 $3,000.00 .................... $10.00 plus .2% of
17- 9 Over $3,000.00 but not over
17-10 $5,000.00 .................... $50.00 plus .3% of
17-11 Over $5,000.00 but not over
17-12 $7,000.00 .................... $110.00 plus .4% of
17-13 Over $7,000.00 but not over
17-14 $10,000.00 ................... $190.00 plus .5% of
17-15 Over $10,000.00 ................ $340.00 plus .6 of
17-16 (K) For any taxable year beginning on or after January
17-17 1, 2009, and thereafter, there shall not be an
17-18 individual income tax and no individual returns are
17-19 required."
17-20 SECTION 2.
17-21 Said title is further amended by adding at the beginning of
17-22 Article 5 of Chapter 7, relating to current income tax
17-23 payment, a new Code Section 48-7-99 to read as follows:
17-24 "48-7-99.
17-25 The provisions of this article relating to the withholding
17-26 of taxes or estimated taxes applicable to individuals
17-27 shall not apply to taxable years beginning on or after
17-28 January 1, 2009."
-17-
18- 1 SECTION 1.
18- 2 Said title is further amended by striking in its entirety
18- 3 Chapter 7, relating to income taxes, and inserting in lieu
18- 4 thereof a new Chapter 7 to read as follows:
18- 5 48-7-1.
18- 6 Effective January 1, 2009, there shall not be an
18- 7 individual income tax or income tax on fiduciaries or
18- 8 partnerships in this state for taxable years beginning on
18- 9 or after January 1, 2009.
18-10 48-7-2.
18-11 As used in this chapter, the term:
18-12 (1) 'Corporation' includes, but is not limited to, all
18-13 associations, professional associations organized
18-14 pursuant to Chapter 10 of Title 14, and insurance
18-15 companies.
18-16 (2) 'Deficiency' means the amount by which the tax
18-17 imposed by this chapter or any prior law exceeds the
18-18 amount shown as the tax due by the corporation upon its
18-19 return or, if no amount is shown as the tax due by a
18-20 corporation upon its return or if no return is made by
18-21 the corporation, the amount determined by the
18-22 commissioner to be the correct amount of the tax.
18-23 (3) 'Fiscal year' means an accounting period of 12
18-24 months ending on the last day of any month other than
18-25 December. In the case of any taxpayer who has elected a
18-26 year consisting of 52 to 53 weeks for federal income tax
18-27 purposes, the term means the period so elected.
18-28 (4) 'Income tax day' means December 31 of each calendar
18-29 year.
18-30 (5) 'Paid,' for the purpose of the deductions under this
18-31 chapter, means 'paid or accrued' or 'paid or incurred.'
18-32 The terms 'paid or accrued,' 'paid or incurred,' and
18-33 'incurred' shall be construed according to the method of
18-34 accounting upon the basis of which the net income is
18-35 computed under this chapter.
18-36 (6) 'Received,' for the purpose of the computation of
18-37 the net income under this chapter, means 'received or
-18-
19- 1 accrued.' The term 'received or accrued' shall be
19- 2 construed according to the method of accounting upon the
19- 3 basis of which the net income is computed under this
19- 4 chapter.
19- 5 (7) 'Taxable year' means the calendar year or the fiscal
19- 6 year ending during the calendar year upon the basis of
19- 7 which the net income is computed under this chapter.
19- 8 (8) 'Taxpayer' means a corporation.
19- 9 48-7-3.
19-10 (a) It shall be unlawful for any person who is required
19-11 under this chapter to pay any tax, make any return, keep
19-12 any records, supply any information, or exhibit any books
19-13 or records for the purpose of computation, assessment, or
19-14 collection of any tax imposed by this chapter to fail to:
19-15 (1) Pay the tax;
19-16 (2) Make the return;
19-17 (3) Keep the records; or
19-18 (4) When requested to do so by the commissioner:
19-19 (A) Supply the information; or
19-20 (B) Exhibit the books or records.
19-21 (b) In addition to other penalties provided by law, any
19-22 person who violates subsection (a) of this Code section
19-23 shall be guilty of a misdemeanor.
19-24 48-7-4.
19-25 (a) With respect to any matter arising under this chapter,
19-26 it shall be unlawful for any person willfully to aid or
19-27 assist in, or procure, counsel, or advise the preparation
19-28 or presentation of, a false or fraudulent return,
19-29 affidavit, claim, or document, whether or not the falsity
19-30 or fraud is with the knowledge or consent of the person
19-31 authorized or required to present the return, affidavit,
19-32 claim, or document.
19-33 (b) Any person who violates subsection (a) of this Code
19-34 section shall be guilty of a misdemeanor and, upon
19-35 conviction thereof, shall be fined not more than $1,000.00
19-36 or imprisoned for not more than six months, or both, and
19-37 shall be required to pay the costs of prosecution.
-19-
20- 1 48-7-5.
20- 2 (a) It shall be unlawful for any person, with intent to
20- 3 evade the income tax imposed by this chapter, willfully to
20- 4 advise the preparation or presentation of a return with
20- 5 intentional disregard of rules and regulations of the
20- 6 commissioner.
20- 7 (b) Any person who violates subsection (a) of this Code
20- 8 section shall be guilty of a misdemeanor and, upon
20- 9 conviction thereof, shall be fined not less than $100.00
20-10 nor more than $500.00 or imprisoned for not more than six
20-11 months, or both.
20-12 48-7-6.
20-13 Any person who willfully evades or defeats or willfully
20-14 attempts to evade or defeat, in any manner, any income
20-15 tax, penalty, interest, or other amount in excess of
20-16 $3,000.00 imposed under this chapter, including but not
20-17 limited to failure to file a return or report, shall, in
20-18 addition to any other criminal or civil penalties provided
20-19 by law, be guilty of a felony and, upon conviction
20-20 thereof, shall be fined not more than $500,000.00 in the
20-21 case of a corporation or imprisoned not less than one nor
20-22 more than five years, or both. Conduct proscribed by this
20-23 Code section shall be subject to punishment under this
20-24 Code section notwithstanding the applicability to such
20-25 conduct of any other provision of law.
20-26 48-7-7.
20-27 (a) Every domestic corporation and every foreign
20-28 corporation shall pay annually an income tax equivalent to
20-29 6 percent of its Georgia taxable net income. Georgia
20-30 taxable net income of a corporation shall be the
20-31 corporation's taxable income from property owned or from
20-32 business done in this state. A corporation's taxable
20-33 income from property owned or from business done in this
20-34 state shall consist of the corporation's taxable income as
20-35 defined in the Internal Revenue Code of 1986, with the
20-36 adjustments provided for in subsection (b) of this Code
20-37 section and allocated and apportioned as provided in Code
20-38 Section 48-7-9.
20-39 (b)(1)(A) When interest income is derived from
20-40 obligations of any state or political subdivision
20-41 except this state and political subdivisions of this
20-42 state, the interest income shall be added to taxable
-20-
21- 1 income to the extent that the interest income is not
21- 2 included in gross income for federal income tax
21- 3 purposes. Interest or dividends on obligations of any
21- 4 authority, commission, instrumentality, territory, or
21- 5 possession of the United States which by the laws of
21- 6 the United States are exempt from federal income tax
21- 7 but not from state income tax shall also be added to
21- 8 taxable income.
21- 9 (B) There shall be subtracted from taxable income
21-10 interest or dividends on obligations of the United
21-11 States and its territories and possessions or of any
21-12 authority, commission, or instrumentality of the
21-13 United States to the extent such interest or dividends
21-14 are includable in gross income for federal income tax
21-15 purposes but exempt from state income taxes under the
21-16 laws of the United States. There shall also be
21-17 subtracted from taxable income any income derived from
21-18 the authorized activities of a domestic international
21-19 banking facility operating pursuant to the provisions
21-20 of Article 5A of Chapter 1 of Title 7, the 'Domestic
21-21 International Banking Facility Act,' and any income
21-22 arising from the conduct of a banking business with
21-23 persons or entities located outside the United States,
21-24 its territories, or possessions. Any amount
21-25 subtracted pursuant to this subparagraph shall be
21-26 reduced by any expenses directly attributable to the
21-27 production of the interest or dividend income.
21-28 (2) There shall be added to taxable income any taxes on,
21-29 or measured by, net income or net profits paid or
21-30 accrued within the taxable year imposed by the authority
21-31 of the United States or any foreign country, by any
21-32 state except the State of Georgia, or by any territory,
21-33 county, school district, municipality, or other tax
21-34 subdivision of any state, territory, or foreign country
21-35 to the extent such taxes are deducted in determining
21-36 federal taxable income.
21-37 (3) No portion of any deductions or losses which
21-38 occurred in a year in which the taxpayer was not subject
21-39 to taxation in this state including, but not limited to,
21-40 net operating losses may be deducted in any tax year.
21-41 When the federal adjusted gross income or net income of
21-42 a corporation includes such deductions or losses, an
21-43 adjustment deleting them shall be made under rules
21-44 established by the commissioner. The provisions of this
-21-
22- 1 subsection shall not prohibit the carry-over of any
22- 2 deductions or losses including, but not limited to, net
22- 3 operating losses of any taxpayer which were incurred in
22- 4 a year or years in which the taxpayer was subject to
22- 5 methods of taxation in this state other than the
22- 6 corporate income tax.
22- 7 (4) Income, losses, and deductions previously used in
22- 8 computing Georgia taxable income shall not again be used
22- 9 in computing Georgia taxable income. The commissioner
22-10 shall provide for needed adjustments by regulation.
22-11 (5) When on the sale or exchange of real or tangible
22-12 personal property located in this state gain or loss is
22-13 not recognized because the taxpayer receives or
22-14 purchases similar property, the nonrecognition shall be
22-15 allowed only when the property is replaced with property
22-16 located in this state.
22-17 (6) This chapter shall not be construed to repeal any
22-18 tax exemptions contained in other laws of this state not
22-19 referred to in this chapter. Those exemptions and the
22-20 exemptions provided for by federal law and treaty shall
22-21 be deducted on forms provided by the commissioner.
22-22 (7) All elections made by corporate taxpayers under the
22-23 Internal Revenue Code of 1954 or the Internal Revenue
22-24 Code of 1986 shall also apply under this chapter except
22-25 elections involving consolidated corporate returns and
22-26 Subchapter 'S' elections which shall be treated as
22-27 follows:
22-28 (A)(i) If two or more corporations file federal
22-29 income tax returns on a consolidated basis and all
22-30 of the corporations derive all of their income from
22-31 sources within this state, the corporations must
22-32 file consolidated returns for Georgia income tax
22-33 purposes. Affiliated corporations which file a
22-34 consolidated federal income tax return but which
22-35 derive income from sources outside this state must
22-36 file separate income tax returns with this state
22-37 unless they have prior approval or have been
22-38 requested to file a consolidated return by the
22-39 department.
22-40 (ii) No depository financial institution shall be
22-41 deprived of the benefit of any exemption, deduction,
22-42 or credit authorized by this title as a consequence
22-43 of its election to file otherwise lawful
-22-
23- 1 consolidated returns with its parent organization or
23- 2 any corporate subsidiaries with respect to any state
23- 3 or local tax levied against such depository
23- 4 financial institution as a result of this title. As
23- 5 used in this division, the term:
23- 6 (I) 'Bank' means any financial institution
23- 7 chartered under the laws of this state or under
23- 8 the laws of the United States and domiciled in
23- 9 this state which is authorized to receive deposits
23-10 in this state and which has a corporate structure
23-11 authorizing the issuance of capital stock.
23-12 (II) 'Depository financial institution' means a
23-13 'bank' or a 'savings and loan association.'
23-14 (III) 'Savings and loan association' means any
23-15 financial institution, other than a credit union,
23-16 chartered under the laws of this state or under
23-17 the laws of the United States and domiciled in
23-18 this state which is authorized to receive deposits
23-19 in this state and which has a mutual corporate
23-20 form; and
23-21 (B) Subchapter 'S' elections apply only if all
23-22 stockholders are subject to tax in this state on their
23-23 portion of the corporate income. If all nonresident
23-24 stockholders pay the Georgia income tax on their
23-25 portion of the corporate income, the election shall be
23-26 allowed.
23-27 (8) There shall be subtracted from taxable income
23-28 dividends received by:
23-29 (A) A corporation from sources outside the United
23-30 States as defined in the Internal Revenue Code of
23-31 1986. For purposes of this subparagraph, dividends
23-32 received by a corporation from sources outside of the
23-33 United States shall include amounts treated as a
23-34 dividend and income deemed to have been received under
23-35 provisions of the Internal Revenue Code of 1986 by
23-36 such corporation if such amounts could have been
23-37 subtracted from taxable income under this paragraph,
23-38 had such amounts actually been received. Amounts to
23-39 be subtracted under this subparagraph shall include
23-40 the following, as defined by the Internal Revenue Code
23-41 of 1986:
23-42 (i) Qualified electing fund income;
-23-
24- 1 (ii) Subpart F income; and
24- 2 (iii) Income attributable to an increase in United
24- 3 States property by a controlled foreign corporation.
24- 4 The amount subtracted under this subparagraph shall be
24- 5 reduced by any expenses directly attributable to the
24- 6 dividend income; and
24- 7 (B) Corporations from affiliated corporations within
24- 8 the United States, when the corporation receiving the
24- 9 dividends is engaged in business in this state and is
24-10 subject to the payment of taxes under the income tax
24-11 laws of this state, to the extent that the dividends
24-12 have been included in net income under this Code
24-13 section. Dividends from affiliates shall be reduced
24-14 by any expenses directly attributable to the dividend
24-15 income.
24-16 (9) Where a corporation's salary and wage deductions are
24-17 reduced in computing federal taxable income because the
24-18 corporation has taken a federal jobs tax credit which
24-19 required, as a condition to using the federal jobs tax
24-20 credit, the elimination of salary and wage deductions,
24-21 the eliminated salary and wage deductions shall be
24-22 subtracted from taxable income.
24-23 (10) There shall be a dollar-for-dollar credit against
24-24 the state income tax liability of depository financial
24-25 institutions which shall be equal to the amount of
24-26 taxes, if any, paid by such taxpayers pursuant to Code
24-27 Section 48-6-93 and Code Section 48-6-95. If the
24-28 liability of any such institutions under the taxes
24-29 authorized by Code Section 48-6-93 and Code Section
24-30 48-6-95 exceeds the corporate income tax liability of
24-31 such institution for any year, the amount of any unused
24-32 credit under this Code section may be credited over a
24-33 period of five years from the tax year in which the
24-34 unused credit arose. If the assets of an institution
24-35 are acquired by another institution in a transaction
24-36 described in Section 381(a) of the Internal Revenue Code
24-37 of 1986, the acquiring institution shall succeed to and
24-38 take into account any unused credit of the distributor
24-39 or transferor institution.
24-40 (11) There shall be subtracted from taxable income a
24-41 portion of qualified payments to minority
24-42 subcontractors, as provided in Code Section 48-7-14.
-24-
25- 1 (12) Georgia taxable income shall, if the taxpayer so
25- 2 elects, be adjusted with respect to federal depreciation
25- 3 deductions as provided in Code Section 48-7-8.
25- 4 48-7-8.
25- 5 (a) With respect to property placed in service in taxable
25- 6 years ending prior to the effective date of this Code
25- 7 section, a taxpayer shall in such taxpayer's return for
25- 8 the first taxable year ending on or after January 1, 1987,
25- 9 elect to:
25-10 (1) Continue to depreciate or otherwise recover the cost
25-11 of such property according to the same method used for
25-12 Georgia income tax purposes for the taxable year in
25-13 which the property was placed in service; or
25-14 (2) Depreciate or otherwise recover the cost of such
25-15 property according to the method used for federal income
25-16 tax purposes for the taxable year in which the property
25-17 was placed in service.
25-18 The election required by this subsection shall be made for
25-19 a taxpayer's first taxable year ending on or after January
25-20 1, 1987, in such manner as may be specified by the
25-21 commissioner. If a return for such a taxable year has been
25-22 filed without such an election prior to or within 90 days
25-23 after the effective date of this Code section, the
25-24 taxpayer may file an amended return containing such an
25-25 election.
25-26 (b) The election provided for in subsection (a) of this
25-27 Code section shall apply to all property of the taxpayer
25-28 uniformly and shall be irrevocable and applicable to all
25-29 subsequent taxable years. Except as otherwise provided in
25-30 the last sentence of subsection (a) of this Code section,
25-31 if no such election is made, the taxpayer shall be deemed
25-32 to have elected the option afforded by paragraph (2) of
25-33 subsection (a) of this Code section. The General Assembly
25-34 recognizes and intends that if a taxpayer elects the
25-35 option afforded by paragraph (2) of subsection (a) of this
25-36 Code section then in certain cases the taxpayer may never
25-37 fully depreciate or recover the cost of certain property
25-38 for Georgia income tax purposes and in certain cases the
25-39 taxpayer may be allowed to depreciate or recover more than
25-40 the full cost of certain property for Georgia income tax
25-41 purposes. Taxpayers electing the option afforded by
25-42 paragraph (1) of subsection (a) of this Code section shall
25-43 in determining Georgia taxable income make such
-25-
26- 1 adjustments to federal taxable income as are required to
26- 2 reflect the effect of such election. Any such election
26- 3 shall apply both to determination of deductions for
26- 4 depreciation or cost recovery of affected property and
26- 5 also to determination of gain or loss on the sale or other
26- 6 disposition of such property. The commissioner shall
26- 7 specify the manner in which such adjustments shall be
26- 8 made.
26- 9 48-7-9.
26-10 (a) The tax imposed by this chapter shall apply to the
26-11 entire net income, as defined in this chapter, received by
26-12 every foreign or domestic corporation owning property or
26-13 doing business within this state. A corporation shall be
26-14 deemed to be doing business within this state if it
26-15 engages within this state in any activities or
26-16 transactions for the purpose of financial profit or gain
26-17 whether or not:
26-18 (1) The corporation qualifies to do business in this
26-19 state;
26-20 (2) The corporation maintains an office or place of
26-21 doing business within this state; or
26-22 (3) Any such activity or transaction is connected with
26-23 interstate or foreign commerce.
26-24 (b)(1) If the entire business income of the corporation
26-25 is derived from property owned or business done in this
26-26 state, the tax shall be imposed on the entire business
26-27 income.
26-28 (2) If the business income of the corporation is derived
26-29 in part from property owned or business done in this
26-30 state and in part from property owned or business done
26-31 outside this state, the tax shall be imposed only on
26-32 that portion of the business income which is reasonably
26-33 attributable to the property owned and business done
26-34 within this state, such portion to be determined as
26-35 provided in subsections (c) and (d) of this Code
26-36 section.
26-37 (c)(1) Interest received on bonds held for investment
26-38 and income received from other intangible property held
26-39 for investment are not subject to apportionment. All
26-40 expenses connected with such investment income shall be
26-41 applied against the investment income. The net
26-42 investment income from intangible property shall be
-26-
27- 1 allocated to this state if the situs of the corporation
27- 2 is in this state or if the intangible property was
27- 3 acquired as income from property held in this state or
27- 4 as a result of business done in this state.
27- 5 (2) Rentals received from real estate held purely for
27- 6 investment purposes and not used in the operation of any
27- 7 business are not subject to apportionment. All expenses
27- 8 connected with such investment income shall be applied
27- 9 against the investment income. The net investment income
27-10 from tangible property located in this state shall be
27-11 allocated to this state.
27-12 (3) Gains from the sale of tangible or intangible
27-13 property not held, owned, or used in connection with the
27-14 trade or business of the corporation nor held for sale
27-15 in the regular course of business shall be allocated to
27-16 this state if the property sold is real or tangible
27-17 personal property situated in this state or intangible
27-18 property having an actual situs or a business situs
27-19 within this state. Otherwise, the gains shall not be
27-20 allocated to this state.
27-21 (d) Net income of the classes described in subsection (c)
27-22 of this Code section having been separately allocated and
27-23 deducted, the remainder of the net business income shall
27-24 be apportioned as follows:
27-25 (1) For purposes of paragraphs (2) and (3) of this
27-26 subsection, the commissioner may enter into an agreement
27-27 with the taxpayer establishing the allocation and
27-28 apportionment of the taxpayer's income for a limited
27-29 period, provided that the following conditions are met:
27-30 (A) The taxpayer is planning a new facility in the
27-31 State of Georgia or an expansion of an existing
27-32 facility;
27-33 (B) The taxpayer submits a proposal asking the
27-34 commissioner to enter into a contract under this
27-35 paragraph requesting a different allocation and
27-36 apportionment method and stating the reasons for such
27-37 proposal; and
27-38 (C) Following the commissioner's referral of the
27-39 proposal to a panel composed of the commissioner of
27-40 community affairs, the commissioner of industry,
27-41 trade, and tourism, and the director of the Office of
-27-
28- 1 Planning and Budget, said panel, after reviewing the
28- 2 proposal, certifies that:
28- 3 (i) The new facility or expansion will have a
28- 4 significant beneficial economic effect on the region
28- 5 for which it is planned; and
28- 6 (ii) The benefits to the public from the new
28- 7 facility or expansion exceed its costs to the
28- 8 public;
28- 9 (2) Where the net business income of the corporation is
28-10 derived principally from the manufacture, production, or
28-11 sale of tangible personal property, the portion of the
28-12 net income therefrom attributable to property owned or
28-13 business done within this state shall be taken to be the
28-14 portion arrived at by application of the following
28-15 formula:
28-16 (A) Property factor. The property factor is a
28-17 fraction, the numerator of which is the average value
28-18 of the taxpayer's real and tangible personal property
28-19 owned or rented and used in this state during the tax
28-20 period and the denominator of which is the average
28-21 value of all the taxpayer's real and tangible personal
28-22 property owned or rented and used during the tax
28-23 period;
28-24 (i) Property owned by the taxpayer is valued at its
28-25 original cost. Property rented by the taxpayer is
28-26 valued at eight times the net annual rental rate.
28-27 Net annual rental rate is the annual rental rate
28-28 paid by the taxpayer less any annual rental rate
28-29 received by the taxpayer from subrentals;
28-30 (ii) The average value of property shall be
28-31 determined by averaging the values at the beginning
28-32 and end of the tax period, except that the
28-33 commissioner may require the averaging of monthly
28-34 values during the tax period if such averaging is
28-35 reasonably required to reflect properly the average
28-36 value of the taxpayer's property;
28-37 (B) Payroll factor. The payroll factor is a fraction,
28-38 the numerator of which is the total amount paid in
28-39 this state during the tax period by the taxpayer for
28-40 compensation and the denominator of which is the total
28-41 compensation paid everywhere during the tax period.
28-42 The term 'compensation' means wages, salaries,
-28-
29- 1 commissions, and any other form of remuneration paid
29- 2 to employees for personal services. Payments made to
29- 3 an independent contractor or any other person not
29- 4 properly classified as an employee are excluded.
29- 5 Compensation is paid in this state if:
29- 6 (i) The employee's service is performed entirely
29- 7 within this state;
29- 8 (ii) The employee's service is performed both within
29- 9 and outside this state and the service performed
29-10 outside this state is incidental to the employee's
29-11 service within this state; or
29-12 (iii) Some of the service is performed in this state
29-13 and either the base of operations or the place from
29-14 which the service is directed or controlled is in
29-15 this state or the base of operations or the place
29-16 from which the service is directed or controlled is
29-17 not in any state in which some part of the service
29-18 is performed but the employee's residence is in this
29-19 state;
29-20 (C) Gross receipts factor. The gross receipts factor
29-21 is a fraction, the numerator of which is the total
29-22 gross receipts from business done within this state
29-23 during the tax period and the denominator of which is
29-24 the total gross receipts from business done everywhere
29-25 during the tax period. For the purposes of this
29-26 subparagraph, receipts shall be deemed to have been
29-27 derived from business done within this state only if
29-28 the receipts are received from products shipped to
29-29 customers in this state or products delivered within
29-30 this state to customers. In determining the gross
29-31 receipts within this state, receipts from sales
29-32 negotiated or effected through offices of the taxpayer
29-33 outside this state and delivered from storage in this
29-34 state to customers outside this state shall be
29-35 excluded;
29-36 (D) Apportionment formula. The property factor, the
29-37 payroll factor, and the gross receipts factor shall be
29-38 separately determined and an apportionment fraction
29-39 shall be calculated using the following formula:
29-40 (i) The property factor shall represent 25 percent
29-41 of the fraction;
-29-
30- 1 (ii) The payroll factor shall represent 25 percent
30- 2 of the fraction; and
30- 3 (iii) The gross receipts factor shall represent 50
30- 4 percent of the fraction.
30- 5 The net income of the corporation shall be apportioned
30- 6 to this state according to such fraction;
30- 7 (3) Except as otherwise provided in paragraph (3.1) or
30- 8 (3.2) of this subsection, where the net business income
30- 9 is derived principally from business other than the
30-10 manufacture, production, or sale of tangible personal
30-11 property, the net business income of the corporation
30-12 shall be arrived at by application of the following
30-13 three factor formula:
30-14 (A) Property factor. The property factor is a
30-15 fraction, the numerator of which is the average value
30-16 of the taxpayer's real and tangible personal property
30-17 owned or rented and used in this state during the tax
30-18 period and the denominator of which is the average
30-19 value of all the taxpayer's real and tangible personal
30-20 property owned or rented and used during the tax
30-21 period;
30-22 (i) Property owned by the taxpayer is valued at its
30-23 original cost. Property rented by the taxpayer is
30-24 valued at eight times the net annual rental rate.
30-25 Net annual rental rate is the annual rental rate
30-26 paid by the taxpayer less any annual rental rate
30-27 received by the taxpayer from subrentals;
30-28 (ii) The average value of property shall be
30-29 determined by averaging the values at the beginning
30-30 and end of the tax period, except that the
30-31 commissioner may require the averaging of monthly
30-32 values during the tax period if such averaging is
30-33 reasonably required to reflect properly the average
30-34 value of the taxpayer's property;
30-35 (B) Payroll factor. The payroll factor is a fraction,
30-36 the numerator of which is the total amount paid in
30-37 this state during the tax period by the taxpayer for
30-38 compensation and the denominator of which is the total
30-39 compensation paid everywhere during the tax period.
30-40 The term 'compensation' means wages, salaries,
30-41 commissions, and any other form of remuneration paid
30-42 to employees for personal services. Payments made to
-30-
31- 1 an independent contractor or any other person not
31- 2 properly classified as an employee are excluded.
31- 3 Compensation is paid in this state if:
31- 4 (i) The employee's service is performed entirely
31- 5 within this state;
31- 6 (ii) The employee's service is performed both within
31- 7 and outside this state and the service performed
31- 8 outside this state is incidental to the employee's
31- 9 service within this state; or
31-10 (iii) Some of the service is performed in this state
31-11 and either the base of operations or the place from
31-12 which the service is directed or controlled is in
31-13 this state or the base of operations or the place
31-14 from which the service is directed or controlled is
31-15 not in any state in which some part of the service
31-16 is performed but the employee's residence is in this
31-17 state;
31-18 (C) Gross receipts factor. The gross receipts factor
31-19 is a fraction, the numerator of which is the total
31-20 gross receipts from business done within this state
31-21 during the tax period and the denominator of which is
31-22 the total gross receipts from business done everywhere
31-23 during the tax period. Gross receipts are in this
31-24 state if the receipts are derived from customers
31-25 within this state or if the receipts are otherwise
31-26 attributable to this state's marketplace;
31-27 (D) Apportionment formula. The property factor,
31-28 payroll factor, and the gross receipts factor shall be
31-29 separately determined and an apportionment fraction
31-30 shall be calculated using the following formula:
31-31 (i) The property factor shall represent 25 percent
31-32 of the fraction;
31-33 (ii) The payroll factor shall represent 25 percent
31-34 of the fraction; and
31-35 (iii) The gross receipts factor shall represent 50
31-36 percent of the fraction.
31-37 The net income of the corporation shall be apportioned
31-38 to this state according to such fraction;
31-39 (E) If the allocation and apportionment provisions
31-40 provided for in this paragraph do not fairly represent
31-41 the extent of the taxpayer's business activity in this
-31-
32- 1 state, the taxpayer may petition the commissioner for,
32- 2 or the commissioner may by regulation require, with
32- 3 respect to all or any part of the taxpayer's business
32- 4 activity, if reasonable:
32- 5 (i) Separate accounting;
32- 6 (ii) The exclusion of any one or more of the
32- 7 factors;
32- 8 (iii) The inclusion of one or more additional
32- 9 factors that will fairly represent the taxpayer's
32-10 business activity within this state; or
32-11 (iv) The employment of any other method to
32-12 effectuate an equitable allocation and apportionment
32-13 of the taxpayer's income.
32-14 The denial of a petition under this paragraph shall be
32-15 appealable pursuant to either Code Section 48-2-59 or
32-16 50-13-12;
32-17 (3.1)(A) Except as otherwise provided in this
32-18 paragraph, all terms used in this paragraph shall have
32-19 the same meaning as such terms are defined in 49
32-20 U.S.C. Section 1301 and the United States Department
32-21 of Transportation's Uniform System of Accounts and
32-22 Reports for Large Certificated Air Carriers, 14 C.F.R.
32-23 Part 241, as now or hereafter amended.
32-24 (B) Where the net business income of the corporation
32-25 is derived principally from transporting passengers or
32-26 cargo in revenue flight, the portion of the net income
32-27 therefrom attributable to property owned or business
32-28 done within this state shall be taken to be the
32-29 portion arrived at by application of the following
32-30 three factor formula:
32-31 (i) Revenue air miles factor. The revenue air miles
32-32 factor is a fraction, the numerator of which shall
32-33 be equal to the total, for each flight stage which
32-34 originates or terminates in this state, of revenue
32-35 passenger miles by aircraft type flown in this state
32-36 and revenue cargo ton miles by aircraft type flown
32-37 in this state and the denominator of which shall be
32-38 equal to the total, for all flight stages flown
32-39 everywhere, of total revenue passenger miles by
32-40 aircraft type and total revenue cargo ton miles by
32-41 aircraft type;
-32-
33- 1 (ii) Tons handled factor. The tons handled factor is
33- 2 a fraction, the numerator of which shall be equal to
33- 3 the total of revenue passenger tons by aircraft type
33- 4 handled in this state and revenue cargo tons by
33- 5 aircraft type handled in this state and the
33- 6 denominator of which shall be equal to the total of
33- 7 revenue passenger tons by aircraft type flown
33- 8 everywhere and revenue cargo tons by aircraft type
33- 9 flown everywhere. For purposes of this division,
33-10 the term 'handled' means the product of 60 percent
33-11 multiplied by the revenue passenger tons flown on
33-12 each flight stage which originates in this state or
33-13 60 percent multiplied by the revenue cargo tons
33-14 flown on each flight stage which originates in this
33-15 state;
33-16 (iii) Originating revenue factor. The originating
33-17 revenue factor is a fraction, the numerator of which
33-18 shall be equal to the total of passenger and cargo
33-19 revenue by aircraft type which is attributable to
33-20 this state and the denominator of which shall be the
33-21 total of passenger and cargo revenue by aircraft
33-22 type everywhere. For purposes of this division,
33-23 passenger or cargo revenue which is attributable to
33-24 this state shall be equal to the product of
33-25 passenger or cargo revenue everywhere by aircraft
33-26 type multiplied by the ratio of revenue passenger
33-27 miles or revenue cargo ton miles in this state to
33-28 total revenue passenger miles everywhere or total
33-29 revenue cargo ton miles everywhere for each aircraft
33-30 type as separately determined in division (i) of
33-31 this subparagraph. If records of total passenger
33-32 revenue everywhere by aircraft type or total cargo
33-33 revenue everywhere by aircraft type are not
33-34 maintained, then for purposes of this division,
33-35 total passenger revenue everywhere for all aircraft
33-36 types or total cargo revenue everywhere for all
33-37 aircraft types shall be allocated to each aircraft
33-38 type based on the ratio of total revenue passenger
33-39 miles everywhere for that aircraft type to all
33-40 aircraft types or total revenue cargo ton miles
33-41 everywhere for that aircraft type to all aircraft
33-42 types;
33-43 (iv) The revenue air miles factor, the tons handled
33-44 factor, and the originating revenue factor shall be
-33-
34- 1 separately determined and an apportionment fraction
34- 2 shall be calculated using the following formula:
34- 3 (I) The revenue air miles factor shall represent
34- 4 25 percent of the fraction;
34- 5 (II) The tons handled factor shall represent 25
34- 6 percent of the fraction; and
34- 7 (III) The originating revenue factor shall
34- 8 represent 50 percent of the fraction.
34- 9 The net income of the corporation shall be
34-10 apportioned to this state according to such average
34-11 fraction;
34-12 (3.2)(A) As used in this paragraph, the term:
34-13 (i) 'Credit card data processing and related
34-14 services' shall include, but not be limited to, the
34-15 provision of infrastructure services for bank credit
34-16 card and private label card issuers, such as new
34-17 account application processing, international and
34-18 domestic clearing, statement preparation,
34-19 point-of-sale authorization processing, card
34-20 embossing, and other related processing services for
34-21 managing cardholder accounts.
34-22 (ii) 'Customer' means the banks and institutions to
34-23 whom credit card data processing and related
34-24 services are provided.
34-25 (iii) 'Gross receipts factor' means a fraction, the
34-26 numerator of which is the total gross receipts from
34-27 the taxpayer's customers during the tax period, if
34-28 the principal office of the customer's credit card
34-29 operation is in this state or if the principal
34-30 office of the taxpayer's customer is in this state,
34-31 and the denominator of which is the total gross
34-32 receipts from all of the taxpayer's customers during
34-33 the tax period.
34-34 (B) Where more than 60 percent of the total gross
34-35 receipts of a corporation are derived from the
34-36 provision of credit card data processing and related
34-37 services to banks and other institutions, the portion
34-38 of the net income attributable to business done in
34-39 this state shall be determined by multiplying the
34-40 corporation's net income by the gross receipts factor
-34-
35- 1 in division (iii) of subparagraph (A) of this
35- 2 paragraph;
35- 3 (4) For the purposes of this subsection, the term 'sale'
35- 4 shall include, but not be limited to, an exchange, and
35- 5 the term 'manufacture' shall include, but not be limited
35- 6 to, the extraction and recovery of natural resources and
35- 7 all processes of fabricating and curing.
35- 8 (e) The net income of a domestic or foreign corporation
35- 9 which is a subsidiary of another corporation or which is
35-10 closely affiliated with another corporation by stock
35-11 ownership shall be determined by eliminating all payments
35-12 to the parent corporation or affiliated corporation in
35-13 excess of fair value and by including fair compensation to
35-14 the domestic business corporation for its commodities sold
35-15 to or services performed for the parent corporation or
35-16 affiliated corporation. For the purposes of determining
35-17 net income as provided in this subsection, the
35-18 commissioner may equitably determine the net income by
35-19 reasonable rules of apportionment of the combined income
35-20 of the subsidiary, its parent, and affiliates, or any
35-21 combination of the subsidiary, its parent, and any one or
35-22 more of its affiliates.
35-23 48-7-10.
35-24 (a) When the business of any corporation engaged in the
35-25 operation of a railroad, express service, telephone or
35-26 telegraph business, or other form of public service is
35-27 partly within and partly outside the state, the net income
35-28 of the corporation for the purpose of this chapter shall
35-29 be that amount ascertained by apportioning to the state
35-30 the sum of the net income of the corporation including,
35-31 but not limited to, dividend income that may legally be
35-32 taxed by the state (exclusive of income from tax-exempt
35-33 securities and without any deduction for federal and state
35-34 income taxes), as shown by the corporation's records kept
35-35 in accordance with the standard classification of accounts
35-36 prescribed by the Interstate Commerce Commission when the
35-37 standard classification of accounts includes in net income
35-38 rents from all sources; and when the standard
35-39 classification does not include all rents, then such rents
35-40 shall be included in net income in the proportion that the
35-41 total gross operating revenues from business done wholly
35-42 within the state plus the equal mileage proportion within
35-43 the state of all gross operating revenues from interstate
35-44 business of the company, wherever done, bear to the total
-35-
36- 1 gross operating revenues from all business done by the
36- 2 company. If any such corporation keeps its records of
36- 3 operating revenues and operating expenses on a state basis
36- 4 in accordance with the standard classification of accounts
36- 5 prescribed by the Interstate Commerce Commission and in a
36- 6 manner which includes in net income for the state the
36- 7 effect of all intrastate and interstate business
36- 8 applicable to the state, the state records may be used by
36- 9 the taxpayer under the supervision of the commissioner in
36-10 reporting the net taxable income within the state.
36-11 (b) All other corporations engaged in the business of
36-12 operating a railroad, express service, telephone or
36-13 telegraph business, or other form of public service,
36-14 whether or not the corporation is required to make reports
36-15 to the Interstate Commerce Commission, shall keep records
36-16 according to the standard classifications of accounting of
36-17 the Interstate Commerce Commission. The net income of the
36-18 corporation including, but not limited to, dividend income
36-19 that can legally be taxed by the state (exclusive of
36-20 tax-exempt securities and without any deduction for
36-21 federal and state income taxes) shall be determined in
36-22 accordance with such records. If any such corporation
36-23 keeps its records of operating revenues and operating
36-24 expenses on a state basis in accordance with the standard
36-25 classification of accounts prescribed by the Interstate
36-26 Commerce Commission and in a manner which includes in net
36-27 income for the state the effect of all intrastate and
36-28 interstate business applicable to the state, the state
36-29 records may, with the consent of the commissioner, be used
36-30 by the taxpayer in reporting the net taxable income within
36-31 the state.
36-32 48-7-11.
36-33 (a) The net income shall be computed upon the basis of the
36-34 taxpayer's annual accounting period in accordance with the
36-35 method of accounting regularly employed in keeping the
36-36 books of the taxpayer. If no such method of accounting has
36-37 been so employed or if the method employed does not
36-38 clearly reflect the income, the computation shall be made
36-39 in accordance with the method which, in the opinion of the
36-40 commissioner, clearly reflects the income. If the
36-41 taxpayer's annual accounting period is other than a fiscal
36-42 year or if the taxpayer has no annual accounting period or
36-43 does not keep books, the net income shall be computed on
36-44 the basis of the calendar year. A taxpayer utilizing a
-36-
37- 1 fiscal year may return such taxpayer's net income under
37- 2 this chapter on the basis of such taxpayer's fiscal year
37- 3 with the approval of the commissioner and subject to such
37- 4 rules and regulations as the commissioner may establish.
37- 5 (b) With the approval of the commissioner and under such
37- 6 regulations as the commissioner may prescribe, a taxpayer
37- 7 may change his or her taxable year from fiscal year to
37- 8 calendar year or otherwise. In the case of any such
37- 9 change, the net income shall be computed upon the basis of
37-10 the new taxable year when approval is obtained from the
37-11 commissioner at least 30 days prior to the close of the
37-12 proposed taxable year.
37-13 (c) The amount of all items of gross income shall be
37-14 included in the gross income for the taxable year in which
37-15 received by the taxpayer unless, under methods of
37-16 accounting permitted by this Code section, any amounts of
37-17 gross income are to be properly accounted for as of a
37-18 different period.
37-19 (d) The deductions and credits provided for in this
37-20 chapter shall be taken for the taxable year in which 'paid
37-21 or accrued' or 'paid or incurred' depending upon the
37-22 method of accounting on the basis of which the net income
37-23 is computed unless, in order to clearly reflect the
37-24 income, the deductions or credits should be taken as of a
37-25 different period.
37-26 (e) Whenever in the opinion of the commissioner it is
37-27 necessary in order to determine clearly the income of any
37-28 taxpayer, inventories shall be taken by the taxpayer on
37-29 the basis prescribed by the commissioner. Each such basis
37-30 shall conform as nearly as possible to the best accounting
37-31 practice in the particular trade or business which most
37-32 clearly reflects the income.
37-33 (f) If a return has been filed within the three years
37-34 immediately preceding the date of the taxpayer's death,
37-35 income and expenses of a taxpayer who dies during the
37-36 taxable year shall be computed on the same method of
37-37 accounting, whether cash or accrual, as was used by the
37-38 taxpayer in the preparation of the last income tax return
37-39 filed by the taxpayer with the commissioner. If no return
37-40 has been filed within the three-year period, the return of
37-41 a deceased taxpayer shall be prepared on the cash method
37-42 unless the commissioner certifies that the cash method,
37-43 because of particular circumstances, is not reasonable to
-37-
38- 1 either the state or the heirs, legatees, or devisees
38- 2 interested in the taxpayer's estate. If the commissioner
38- 3 certifies that the cash method is unreasonable, the
38- 4 commissioner may order the preparation of the return on
38- 5 the accrual method.
38- 6 48-7-12.
38- 7 If any corporation employs in its books of account a
38- 8 detailed allocation of receipts and expenditures which
38- 9 reflects more clearly than the processes or formulas
38-10 prescribed by this chapter the income attributable to the
38-11 trade or business within this state, application for
38-12 permission to base its return upon the books of account
38-13 shall be considered by the commissioner. The application
38-14 shall be made at least 60 days prior to the last day on
38-15 which the taxpayer's return is to be filed and shall be
38-16 accompanied by a full and complete explanation of the
38-17 method employed.
38-18 48-7-13.
38-19 If any corporation shows by any method of allocation other
38-20 than the processes or formulas prescribed by this chapter
38-21 that another method reflects more clearly the income
38-22 attributable to the trade or business within this state,
38-23 application for permission to base its return upon the
38-24 other method shall be considered by the commissioner. The
38-25 application shall be accompanied by a statement setting
38-26 forth in detail with full explanations the method the
38-27 taxpayer believes will more clearly reflect its income
38-28 from business within the state. If the commissioner
38-29 concludes that the method of allocation and apportionment
38-30 submitted by the taxpayer is in fact inapplicable and
38-31 inequitable, the commissioner shall reject the application
38-32 and shall so notify the taxpayer. Failure to receive the
38-33 commissioner's notice shall not operate to relieve the
38-34 taxpayer from liability for not filing the return on its
38-35 due date utilizing the allocation and apportionment method
38-36 prescribed by this chapter.
38-37 48-7-14.
38-38 (a) As used in this Code section, the term:
38-39 (1) 'Member of a minority' means an individual who is a
38-40 member of a race which comprises less than 50 percent of
38-41 the total population of the state.
-38-
39- 1 (2) 'Minority subcontractor' means any business which is
39- 2 owned by:
39- 3 (A) An individual who is a member of a minority;
39- 4 (B) A partnership in which a majority of the ownership
39- 5 interest is owned by one or more members of a
39- 6 minority; or
39- 7 (C) A corporation organized under the laws of this
39- 8 state in which a majority of the common stock is owned
39- 9 by one or more members of a minority.
39-10 (3) 'State contract' means a contract for the purchase
39-11 by the state of goods, property, or services or for the
39-12 construction of any building or structure for the state,
39-13 which contract is executed by any department, board,
39-14 bureau, commission, or agency of state government, by
39-15 any state authority, or by any officer, official,
39-16 employee, or agent of any of the foregoing.
39-17 (b) In computing Georgia taxable net income of a
39-18 corporation, there shall be subtracted from federal
39-19 taxable income or federal adjusted gross income 10 percent
39-20 of the amount of qualified payments to minority
39-21 subcontractors. A payment to a minority subcontractor
39-22 shall be a qualified payment if:
39-23 (1) The payment is for goods, personal property, or
39-24 services furnished by the minority subcontractor to the
39-25 taxpayer and delivered by the taxpayer to the state in
39-26 furtherance of a state contract to which the taxpayer is
39-27 a party; and the payment does not exceed the value of
39-28 the goods, property, or services to the taxpayer;
39-29 (2) The payment is made during the taxable year for
39-30 which the subtraction from federal taxable income or
39-31 federal adjusted gross income is claimed; and
39-32 (3) The payment is made to a subcontractor who at the
39-33 time of the payment is certified as a minority
39-34 contractor pursuant to subsection (d) of this Code
39-35 section.
39-36 (c) The total amount which may be subtracted under this
39-37 Code section from federal taxable income or federal
39-38 adjusted gross income of any taxpayer shall be limited to
39-39 $100,000.00 per taxable year.
39-40 (d) The commissioner of administrative services shall
39-41 certify individuals, partnerships, and corporations which
-39-
40- 1 are within the definition of the term 'minority
40- 2 subcontractor' specified in subsection (a) of this Code
40- 3 section. The department may disclose to the commissioner
40- 4 of administrative services the income tax returns of
40- 5 taxpayers applying for certification as minority
40- 6 subcontractors. The commissioner of administrative
40- 7 services shall maintain and periodically revise a list of
40- 8 certified minority subcontractors and shall make such list
40- 9 available to the department and to the general public.
40-10 48-7-15.
40-11 (a) As used in this Code section, the term 'business
40-12 enterprise' means any business or the headquarters of any
40-13 such business which is engaged in manufacturing,
40-14 warehousing and distribution, processing,
40-15 telecommunications, tourism, and research and development
40-16 industries. Such term shall not include retail
40-17 businesses.
40-18 (b)(1) Not later than December 31 of each year, using
40-19 the most current data available from the Department of
40-20 Labor and the United States Department of Commerce, the
40-21 commissioner of community affairs shall rank and
40-22 designate as less developed areas all 159 counties in
40-23 this state using a combination of the following factors:
40-24 (A) Highest unemployment rate for the most recent 36
40-25 month period;
40-26 (B) Lowest per capita income for the most recent 36
40-27 month period;
40-28 (C) Highest percentage of residents whose incomes are
40-29 below the poverty level according to the most recent
40-30 data available; and
40-31 (D) Average weekly manufacturing wage according to the
40-32 most recent data available.
40-33 (2) Counties ranked and designated as the first through
40-34 fifty-third least developed counties shall be classified
40-35 as tier 1, counties ranked and designated as the
40-36 fifty-fourth through one hundred sixth least developed
40-37 counties shall be classified as tier 2, and counties
40-38 ranked and designated as the one hundred seventh through
40-39 one hundred fifty-ninth least developed counties shall
40-40 be classified as tier 3.
-40-
41- 1 (c) The commissioner of community affairs shall be
41- 2 authorized to include in the tier 2 designation provided
41- 3 for in subsection (b) of this Code section any tier 3
41- 4 county which, in the opinion of the commissioner of
41- 5 community affairs, undergoes a sudden and severe period of
41- 6 economic distress caused by the closing of one or more
41- 7 business enterprises located in such county. No
41- 8 designation made pursuant to this subsection shall operate
41- 9 to displace or remove any other county previously
41-10 designated as a tier 2 county.
41-11 (c.1) The commissioner of community affairs shall be
41-12 authorized to include in the tier 1 designation provided
41-13 for in subsection (b) of this Code section any tier 2
41-14 county which, in the opinion of the commissioner of
41-15 community affairs, undergoes a sudden and severe period of
41-16 economic distress caused by the closing of one or more
41-17 business enterprises located in such county. No
41-18 designation made pursuant to this subsection shall operate
41-19 to displace or remove any other county previously
41-20 designated as a tier 1 county.
41-21 (d) For business enterprises which plan a significant
41-22 expansion in their labor forces, the commissioner of
41-23 community affairs shall prescribe redesignation procedures
41-24 to ensure that the business enterprises can claim credits
41-25 in future years without regard to whether or not a
41-26 particular county is reclassified in a different tier.
41-27 (e) Business enterprises in counties designated by the
41-28 commissioner of community affairs as tier 1 counties shall
41-29 be allowed a job tax credit for taxes imposed under this
41-30 chapter equal to $2,500.00 annually, business enterprises
41-31 in counties designated by the commissioner of community
41-32 affairs as tier 2 counties shall be allowed a job tax
41-33 credit for taxes imposed under this chapter equal to
41-34 $1,500.00 annually, and business enterprises in counties
41-35 designated by the commissioner of community affairs as
41-36 tier 3 counties shall be allowed a job tax credit for
41-37 taxes imposed under this chapter equal to $500.00 annually
41-38 for each new full-time employee job for five years
41-39 beginning with years two through six after the creation of
41-40 the job. The number of new full-time jobs shall be
41-41 determined by comparing the monthly average number of
41-42 full-time employees for the taxable year with the
41-43 corresponding period of the prior taxable year. In tier 1
41-44 counties, only those business enterprises that increase
-41-
42- 1 employment by five or more shall be eligible for the
42- 2 credit. In tier 2 counties, only those business
42- 3 enterprises that increase employment by 15 or more shall
42- 4 be eligible for the credit. In tier 3 counties, only
42- 5 those business enterprises that increase employment by 25
42- 6 or more shall be eligible for the credit. Credit shall
42- 7 not be allowed during a year if the net employment
42- 8 increase falls below the number required in such tier.
42- 9 Any credit received for years prior to the year in which
42-10 the net employment increase falls below the number
42-11 required in such tier shall not be affected. The state
42-12 revenue commissioner shall adjust the credit allowed each
42-13 year for net new employment fluctuations above the minimum
42-14 level of the number required in such tier.
42-15 (f) Tax credits for five years for the taxes imposed under
42-16 this chapter shall be awarded for additional new full-time
42-17 jobs created by business enterprises qualified under
42-18 subsection (b) or (c) of this Code section. Additional
42-19 new full-time jobs shall be determined by subtracting the
42-20 highest total employment of the business enterprise during
42-21 years two through six, or whatever portion of years two
42-22 through six which has been completed, from the total
42-23 increased employment. The state revenue commissioner
42-24 shall adjust the credit allowed in the event of employment
42-25 fluctuations during the additional five years of credit.
42-26 (g) The sale, merger, acquisition, or bankruptcy of any
42-27 business enterprise shall not create new eligibility in
42-28 any succeeding business entity, but any unused job tax
42-29 credit may be transferred and continued by any transferee
42-30 of the business enterprise. The commissioner of community
42-31 affairs shall determine whether or not qualifying net
42-32 increases or decreases have occurred and may require
42-33 reports, promulgate regulations, and hold hearings as
42-34 needed for substantiation and qualification.
42-35 (h) Any credit claimed under this Code section but not
42-36 used in any taxable year may be carried forward for ten
42-37 years from the close of the taxable year in which the
42-38 qualified jobs were established, but the credit
42-39 established by this Code section taken in any one taxable
42-40 year shall be limited to an amount not greater than 50
42-41 percent of the taxpayer's state income tax liability which
42-42 is attributable to income derived from operations in this
42-43 state for that taxable year.
-42-
43- 1 (i) Notwithstanding any provision of this Code section to
43- 2 the contrary, in counties recognized and designated as the
43- 3 first through fortieth least developed counties in the
43- 4 tier 1 designation, job tax credits shall be allowed as
43- 5 provided in this Code section, in addition to business
43- 6 enterprises, to any business of any nature.
43- 7 48-7-16.
43- 8 (a) As used in this Code section, the term 'business
43- 9 enterprise' means any business or the headquarters of any
43-10 such business which is engaged in manufacturing,
43-11 warehousing and distribution, processing,
43-12 telecommunications, tourism, and research and development
43-13 industries. Such term shall not include retail
43-14 businesses.
43-15 (b) Not later than December 31 of each year, using the
43-16 most current data available from the Department of Labor
43-17 and the United States Department of Commerce, the
43-18 commissioner of community affairs shall rank and designate
43-19 as less developed areas the areas which are comprised of
43-20 ten or more contiguous census tracts in this state using a
43-21 combination of the following factors:
43-22 (1) Highest unemployment rate for the most recent 36
43-23 month period;
43-24 (2) Lowest per capita income for the most recent 36
43-25 month period; and
43-26 (3) Highest percentage of residents whose income is
43-27 below the poverty level according to the most recent
43-28 data available.
43-29 (c) The commissioner of community affairs shall be
43-30 authorized to include in the designation provided for in
43-31 subsection (b) of this Code section:
43-32 (1) Any area comprised of ten or more contiguous census
43-33 tracts which, in the opinion of the commissioner of
43-34 community affairs, undergoes a sudden and severe period
43-35 of economic distress caused by the closing of one or
43-36 more business enterprises located in such area; or
43-37 (2) Any area comprised of one or more contiguous census
43-38 tracts which, in the opinion of the commissioner of
43-39 community affairs, is or will be adversely impacted by
43-40 the loss of one or more jobs, businesses, or residences
43-41 as a result of an airport expansion, including noise
-43-
44- 1 buy-outs, or the closing of a business enterprise which,
44- 2 in the opinion of the commissioner of community affairs,
44- 3 results or will result in a sudden and severe period of
44- 4 economic distress.
44- 5 No designation made pursuant to this subsection shall
44- 6 operate to displace or remove any other area previously
44- 7 designated as a less developed area.
44- 8 (d) For business enterprises which plan a significant
44- 9 expansion in their labor forces, the commissioner of
44-10 community affairs shall prescribe redesignation procedures
44-11 to ensure that the business enterprises can claim credits
44-12 in future years without regard to whether or not a
44-13 particular area is removed from the list of less developed
44-14 areas.
44-15 (e) Business enterprises in areas designated by the
44-16 commissioner of community affairs as less developed areas
44-17 shall be allowed a job tax credit for taxes imposed under
44-18 this chapter equal to $2,500.00 annually for each new
44-19 full-time employee job for five years beginning with years
44-20 two through six after the creation of the job. The number
44-21 of new full-time jobs shall be determined by comparing the
44-22 monthly average number of full-time employees for the
44-23 taxable year with the corresponding period of the prior
44-24 taxable year. Only those business enterprises that
44-25 increase employment by five or more in a less developed
44-26 area shall be eligible for the credit. In addition, not
44-27 less than 30 percent of such new full-time jobs must be
44-28 held by a resident of the less developed area for which
44-29 the credit is sought or another such designated less
44-30 developed area. Credit shall not be allowed during a year
44-31 if the net employment increase falls below five. Any
44-32 credit received for years prior to the year in which the
44-33 net employment increase falls below five shall not be
44-34 affected. The state revenue commissioner shall adjust the
44-35 credit allowed each year for net new employment
44-36 fluctuations above the minimum level of five.
44-37 (f) Tax credits for five years for the taxes imposed under
44-38 this chapter shall be awarded for additional new full-time
44-39 jobs created by business enterprises qualified under
44-40 subsection (b) or (c) of this Code section. Additional
44-41 new full-time jobs shall be determined by subtracting the
44-42 highest total employment of the business enterprise during
44-43 years two through six, or whatever portion of years two
44-44 through six which has been completed, from the total
-44-
45- 1 increased employment. The state revenue commissioner
45- 2 shall adjust the credit allowed in the event of employment
45- 3 fluctuations during the additional five years of credit.
45- 4 (g) The sale, merger, acquisition, or bankruptcy of any
45- 5 business enterprise shall not create new eligibility in
45- 6 any succeeding business entity, but any unused job tax
45- 7 credit may be transferred and continued by any transferee
45- 8 of the business enterprise. The commissioner of community
45- 9 affairs shall determine whether or not qualifying net
45-10 increases or decreases have occurred and may require
45-11 reports, promulgate regulations, and hold hearings as
45-12 needed for substantiation and qualification.
45-13 (h) Any credit claimed under this Code section but not
45-14 used in any taxable year may be carried forward for ten
45-15 years from the close of the taxable year in which the
45-16 qualified jobs were established, but the credit
45-17 established by this Code section taken in any one taxable
45-18 year shall be limited to an amount not greater than 50
45-19 percent of the taxpayer's state income tax liability which
45-20 is attributable to income derived from operations in this
45-21 state for that taxable year.
45-22 48-7-17.
45-23 (a) As used in this Code section, the term:
45-24 (1) 'Product' means a marketable product or component of
45-25 a product which has an economic value to the wholesale
45-26 or retail consumer and is ready to be used without
45-27 further alteration of its form or a product or material
45-28 which is marketed as a prepared material or is a
45-29 component in the manufacturing and assembly of other
45-30 finished products.
45-31 (2) 'Qualified investment property' means all real and
45-32 personal property purchased or acquired by a taxpayer
45-33 for use in the construction of an additional
45-34 manufacturing or telecommunications facility to be
45-35 located in this state or the expansion of an existing
45-36 manufacturing or telecommunications facility located in
45-37 this state, including, but not limited to, amounts
45-38 expended on land acquisition, improvements, buildings,
45-39 building improvements, and machinery and equipment to be
45-40 used in the manufacturing or telecommunications
45-41 facility. The department shall promulgate rules
45-42 defining eligible manufacturing facilities,
-45-
46- 1 telecommunications facilities, and qualified investment
46- 2 property pursuant to this paragraph.
46- 3 (3) 'Recovered materials' means those materials,
46- 4 including but not limited to such materials as aluminum,
46- 5 oil, plastic, paper, paper products, scrap metal, iron,
46- 6 glass, and rubber, which have known use, reuse, or
46- 7 recycling potential; can be feasibly used, reused, or
46- 8 recycled; and have been diverted or removed from the
46- 9 solid waste stream for sale, use, reuse, or recycling,
46-10 whether or not requiring subsequent separation and
46-11 processing.
46-12 (4) 'Recycling' means any process by which materials
46-13 which would otherwise become solid waste are collected,
46-14 separated, or processed and reused or returned to use in
46-15 the form of raw materials or products.
46-16 (5) 'Recycling machinery and equipment' means all
46-17 tangible personal property used, directly or indirectly,
46-18 to sort, store, prepare, convert, process, fabricate, or
46-19 manufacture recovered materials into finished products
46-20 which are composed of at least 25 percent recovered
46-21 materials, such term including, but not being limited
46-22 to, power generation and pollution control machinery and
46-23 equipment.
46-24 (6) 'Recycling manufacturing facility' means any
46-25 facility, including land, improvements to land,
46-26 buildings, building improvements, and any recycling
46-27 machinery and equipment used in the recycling process
46-28 resulting in the manufacture of finished products from
46-29 recovered materials, provided that up to 10 percent of
46-30 any building that is a component of a recycling facility
46-31 may be used for office space to house support staff for
46-32 the recycling operation.
46-33 (b) In the case of a taxpayer which has operated for the
46-34 immediately preceding three years an existing
46-35 manufacturing or telecommunications facility or
46-36 manufacturing or telecommunications support facility in
46-37 this state in a tier 1 county designated pursuant to Code
46-38 Section 48-7-15, there shall be allowed a credit against
46-39 the tax imposed under this chapter in an amount equal to 5
46-40 percent of the cost of all qualified investment property
46-41 purchased or acquired by the taxpayer in such year,
46-42 subject to the conditions and limitations set forth in
46-43 this Code section. In the event such qualified investment
-46-
47- 1 property purchased or acquired by the taxpayer in such
47- 2 year consists of recycling machinery or equipment, a
47- 3 recycling manufacturing facility, pollution control or
47- 4 prevention machinery or equipment, a pollution control or
47- 5 prevention facility, or the conversion from defense to
47- 6 domestic production, the amount of such credit shall be
47- 7 equal to 8 percent.
47- 8 (c) The credit granted under subsection (b) of this Code
47- 9 section shall be subject to the following conditions and
47-10 limitations:
47-11 (1) In order to qualify as a basis for the credit, the
47-12 investment in qualified investment property must occur
47-13 no sooner than January 1, 1995. The credit may be taken
47-14 beginning with the tax year immediately following the
47-15 tax year in which the qualified investment property
47-16 having an aggregate cost in excess of $50,000.00 is
47-17 purchased or acquired by the taxpayer. For every year
47-18 in which a taxpayer claims the credit, the taxpayer
47-19 shall attach a schedule to the taxpayer's Georgia income
47-20 tax return which will set forth the following
47-21 information, as a minimum:
47-22 (A) A description of the project;
47-23 (B) The amount of qualified investment property
47-24 acquired during the taxable year;
47-25 (C) The amount of tax credit claimed for the taxable
47-26 year;
47-27 (D) The amount of qualified investment property
47-28 acquired in prior taxable years;
47-29 (E) Any tax credit utilized by the taxpayer in prior
47-30 taxable years;
47-31 (F) The amount of tax credit carried over from prior
47-32 years;
47-33 (G) The amount of tax credit utilized by the taxpayer
47-34 in the current taxable year; and
47-35 (H) The amount of tax credit to be carried over to
47-36 subsequent tax years;
47-37 (2) Any credit claimed under this Code section but not
47-38 used in any taxable year may be carried forward for ten
47-39 years from the close of the taxable year in which the
47-40 qualified investment property was acquired, provided
-47-
48- 1 that such qualified investment property remains in
48- 2 service. The credit established by this Code section
48- 3 taken in any one taxable year shall be limited to an
48- 4 amount not greater than 50 percent of the taxpayer's
48- 5 state income tax liability which is attributable to
48- 6 income derived from operations in this state for that
48- 7 taxable year. The sale, merger, acquisition, or
48- 8 bankruptcy of any taxpayer shall not create new
48- 9 eligibility in any succeeding taxpayer, but any unused
48-10 credit may be transferred and continued by any
48-11 transferee of the taxpayer;
48-12 (3) In the initial year in which the taxpayer claims the
48-13 credit granted in subsection (b) of this Code section,
48-14 the taxpayer shall include in the description of the
48-15 project required by subparagraph (A) of paragraph (1) of
48-16 this subsection information which demonstrates that the
48-17 project includes the acquisition of qualified investment
48-18 property having an aggregate cost in excess of
48-19 $50,000.00;
48-20 (4) Any lease for a period of five years or longer of
48-21 any real or personal property used in a new or expanded
48-22 manufacturing or telecommunications facility which would
48-23 otherwise constitute qualified investment property shall
48-24 be treated as the purchase or acquisition of qualified
48-25 investment property by the lessee. The taxpayer may
48-26 treat the full value of the leased property as qualified
48-27 investment property in the taxable year in which the
48-28 lease becomes binding on the lessor and the taxpayer if
48-29 all other conditions of this subsection have been met;
48-30 and
48-31 (5) The utilization of the credit granted in subsection
48-32 (b) of this Code section shall have no effect on the
48-33 taxpayer's ability to claim depreciation for tax
48-34 purposes on the assets acquired by the taxpayer, nor
48-35 shall the credit have any effect on the taxpayer's basis
48-36 in such assets for the purpose of depreciation.
48-37 (d)(1) Except as otherwise provided in paragraph (2) of
48-38 this subsection, no taxpayer shall be authorized to
48-39 claim on a tax return for a given project the credit
48-40 provided for in this Code section if such taxpayer
48-41 claims on such tax return any of the credits authorized
48-42 under Code Section 48-7-15 or 48-7-16.
-48-
49- 1 (2) For taxable years beginning on or after January 1,
49- 2 1995, and ending on or prior to December 31, 1998, a
49- 3 taxpayer shall be authorized to claim on a tax return
49- 4 for a given project the credit provided for in this Code
49- 5 section and to claim, if otherwise qualified under Code
49- 6 Section 48-7-15, the tax credit applicable to tier 1
49- 7 counties under Code Section 48-7-15, subject to the
49- 8 following limitations:
49- 9 (A) Not less than 250 new full-time employee jobs must
49-10 be created in the first taxable year and maintained
49-11 through the end of the third taxable year in which the
49-12 taxpayer claims both credits as authorized under this
49-13 paragraph; and
49-14 (B) An otherwise qualified taxpayer shall not be
49-15 entitled to receive the additional tax credit
49-16 authorized under Code Section 36-62-5.1 in any taxable
49-17 year in which that taxpayer claims both of the tax
49-18 credits as authorized under this paragraph.
49-19 48-7-18.
49-20 (a) As used in this Code section, the term:
49-21 (1) 'Product' means a marketable product or component of
49-22 a product which has an economic value to the wholesale
49-23 or retail consumer and is ready to be used without
49-24 further alteration of its form or a product or material
49-25 which is marketed as a prepared material or is a
49-26 component in the manufacturing and assembly of other
49-27 finished products.
49-28 (2) 'Qualified investment property' means all real and
49-29 personal property purchased or acquired by a taxpayer
49-30 for use in the construction of an additional
49-31 manufacturing or telecommunications facility to be
49-32 located in this state or the expansion of an existing
49-33 manufacturing or telecommunications facility located in
49-34 this state, including, but not limited to, amounts
49-35 expended on land acquisition, improvements, buildings,
49-36 building improvements, and machinery and equipment to be
49-37 used in the manufacturing or telecommunications
49-38 facility. The department shall promulgate rules
49-39 defining eligible manufacturing facilities,
49-40 telecommunications facilities, and qualified investment
49-41 property pursuant to this paragraph.
-49-
50- 1 (3) 'Recovered materials' means those materials,
50- 2 including but not limited to such materials as aluminum,
50- 3 oil, plastic, paper, paper products, scrap metal, iron,
50- 4 glass, and rubber, which have known use, reuse, or
50- 5 recycling potential; can be feasibly used, reused, or
50- 6 recycled; and have been diverted or removed from the
50- 7 solid waste stream for sale, use, reuse, or recycling,
50- 8 whether or not requiring subsequent separation and
50- 9 processing.
50-10 (4) 'Recycling' means any process by which materials
50-11 which would otherwise become solid waste are collected,
50-12 separated, or processed and reused or returned to use in
50-13 the form of raw materials or products.
50-14 (5) 'Recycling machinery and equipment' means all
50-15 tangible personal property used, directly or indirectly,
50-16 to sort, store, prepare, convert, process, fabricate, or
50-17 manufacture recovered materials into products which are
50-18 composed of at least 25 percent recovered materials,
50-19 such term including, but not being limited to, power
50-20 generation and pollution control machinery and
50-21 equipment.
50-22 (6) 'Recycling manufacturing facility' means any
50-23 facility, including land, improvements to land,
50-24 buildings, building improvements, and any recycling
50-25 machinery and equipment used in the recycling process
50-26 resulting in the manufacture of products from recovered
50-27 materials, provided that up to 10 percent of any
50-28 building that is a component of a recycling facility may
50-29 be used for office space to house support staff for the
50-30 recycling operation.
50-31 (b) In the case of a taxpayer which has operated for the
50-32 immediately preceding three years an existing
50-33 manufacturing or telecommunications facility or
50-34 manufacturing or telecommunications support facility in
50-35 this state in a tier 2 county designated pursuant to Code
50-36 Section 48-7-15, there shall be allowed a credit against
50-37 the tax imposed under this chapter in an amount equal to 3
50-38 percent of the cost of all qualified investment property
50-39 purchased or acquired by the taxpayer in such year,
50-40 subject to the conditions and limitations set forth in
50-41 this Code section. In the event such qualified investment
50-42 property purchased or acquired by the taxpayer in such
50-43 year consists of recycling machinery or equipment, a
50-44 recycling manufacturing facility, pollution control or
-50-
51- 1 prevention machinery or equipment, a pollution control or
51- 2 prevention facility, or the conversion from defense to
51- 3 domestic production, the amount of such credit shall be
51- 4 equal to 5 percent.
51- 5 (c) The credit granted under subsection (b) of this Code
51- 6 section shall be subject to the following conditions and
51- 7 limitations:
51- 8 (1) In order to qualify as a basis for the credit, the
51- 9 investment in qualified investment property must occur
51-10 no sooner than January 1, 1995. The credit may be taken
51-11 beginning with the tax year immediately following the
51-12 tax year in which the qualified investment property
51-13 having an aggregate cost in excess of $50,000.00 is
51-14 purchased or acquired by the taxpayer. For every year
51-15 in which a taxpayer claims the credit, the taxpayer
51-16 shall attach a schedule to the taxpayer's Georgia income
51-17 tax return which will set forth the following
51-18 information, as a minimum:
51-19 (A) A description of the project;
51-20 (B) The amount of qualified investment property
51-21 acquired during the taxable year;
51-22 (C) The amount of tax credit claimed for the taxable
51-23 year;
51-24 (D) The amount of qualified investment property
51-25 acquired in prior taxable years;
51-26 (E) Any tax credit utilized by the taxpayer in prior
51-27 taxable years;
51-28 (F) The amount of tax credit carried over from prior
51-29 years;
51-30 (G) The amount of tax credit utilized by the taxpayer
51-31 in the current taxable year; and
51-32 (H) The amount of tax credit to be carried over to
51-33 subsequent tax years;
51-34 (2) Any credit claimed under this Code section but not
51-35 used in any taxable year may be carried forward for ten
51-36 years from the close of the taxable year in which the
51-37 qualified investment property was acquired, provided
51-38 that such qualified investment property remains in
51-39 service. The credit established by this Code section
51-40 taken in any one taxable year shall be limited to an
-51-
52- 1 amount not greater than 50 percent of the taxpayer's
52- 2 state income tax liability which is attributable to
52- 3 income derived from operations in this state for that
52- 4 taxable year. The sale, merger, acquisition, or
52- 5 bankruptcy of any taxpayer shall not create new
52- 6 eligibility in any succeeding taxpayer, but any unused
52- 7 credit may be transferred and continued by any
52- 8 transferee of the taxpayer;
52- 9 (3) In the initial year in which the taxpayer claims the
52-10 credit granted in subsection (b) of this Code section,
52-11 the taxpayer shall include in the description of the
52-12 project required by subparagraph (A) of paragraph (1) of
52-13 this subsection information which demonstrates that the
52-14 project includes the acquisition of qualified investment
52-15 property having an aggregate cost in excess of
52-16 $50,000.00;
52-17 (4) Any lease for a period of five years or longer of
52-18 any real or personal property used in a new or expanded
52-19 manufacturing or telecommunications facility which would
52-20 otherwise constitute qualified investment property shall
52-21 be treated as the purchase or acquisition of qualified
52-22 investment property by the lessee. The taxpayer may
52-23 treat the full value of the leased property as qualified
52-24 investment property in the taxable year in which the
52-25 lease becomes binding on the lessor and the taxpayer if
52-26 all other conditions of this subsection have been met;
52-27 and
52-28 (5) The utilization of the credit granted in subsection
52-29 (b) of this Code section shall have no effect on the
52-30 taxpayer's ability to claim depreciation for tax
52-31 purposes on the assets acquired by the taxpayer, nor
52-32 shall the credit have any effect on the taxpayer's basis
52-33 in such assets for the purpose of depreciation.
52-34 (d) No taxpayer shall be authorized to claim on a tax
52-35 return for a given project the credit provided for in this
52-36 Code section if such taxpayer claims on such tax return
52-37 any of the credits authorized under Code Section 48-7-15
52-38 or 48-7-16.
52-39 48-7-19.
52-40 (a) As used in this Code section, the term:
52-41 (1) 'Product' means a marketable product or component of
52-42 a product which has an economic value to the wholesale
-52-
53- 1 or retail consumer and is ready to be used without
53- 2 further alteration of its form or a product or material
53- 3 which is marketed as a prepared material or is a
53- 4 component in the manufacturing and assembly of other
53- 5 finished products.
53- 6 (2) 'Qualified investment property' means all real and
53- 7 personal property purchased or acquired by a taxpayer
53- 8 for use in the construction of an additional
53- 9 manufacturing or telecommunications facility to be
53-10 located in this state or the expansion of an existing
53-11 manufacturing or telecommunications facility located in
53-12 this state, including, but not limited to, amounts
53-13 expended on land acquisition, improvements, buildings,
53-14 building improvements, and machinery and equipment to be
53-15 used in the manufacturing or telecommunications
53-16 facility. The department shall promulgate rules
53-17 defining eligible manufacturing facilities,
53-18 telecommunications facilities, and qualified investment
53-19 property pursuant to this paragraph.
53-20 (3) 'Recovered materials' means those materials,
53-21 including but not limited to such materials as aluminum,
53-22 oil, plastic, paper, paper products, scrap metal, iron,
53-23 glass, and rubber, which have known use, reuse, or
53-24 recycling potential; can be feasibly used, reused, or
53-25 recycled; and have been diverted or removed from the
53-26 solid waste stream for sale, use, reuse, or recycling,
53-27 whether or not requiring subsequent separation and
53-28 processing.
53-29 (4) 'Recycling' means any process by which materials
53-30 which would otherwise become solid waste are collected,
53-31 separated, or processed and reused or returned to use in
53-32 the form of raw materials or products.
53-33 (5) 'Recycling machinery and equipment' means all
53-34 tangible personal property used, directly or indirectly,
53-35 to sort, store, prepare, convert, process, fabricate, or
53-36 manufacture recovered materials into products which are
53-37 composed of at least 25 percent recovered materials,
53-38 such term including, but not being limited to, power
53-39 generation and pollution control machinery and
53-40 equipment.
53-41 (6) 'Recycling manufacturing facility' means any
53-42 facility, including land, improvements to land,
53-43 buildings, building improvements, and any recycling
-53-
54- 1 machinery and equipment used in the recycling process
54- 2 resulting in the manufacture of products from recovered
54- 3 materials, provided that up to 10 percent of any
54- 4 building that is a component of a recycling facility may
54- 5 be used for office space to house support staff for the
54- 6 recycling operation.
54- 7 (b) In the case of a taxpayer which has operated for the
54- 8 immediately preceding three years an existing
54- 9 manufacturing or telecommunications facility or
54-10 manufacturing or telecommunications support facility in
54-11 this state in a tier 3 county designated pursuant to Code
54-12 Section 48-7-15, there shall be allowed a credit against
54-13 the tax imposed under this chapter in an amount equal to 1
54-14 percent of the cost of all qualified investment property
54-15 purchased or acquired by the taxpayer in such year,
54-16 subject to the conditions and limitations set forth in
54-17 this Code section. In the event such qualified investment
54-18 property purchased or acquired by the taxpayer in such
54-19 year consists of recycling machinery or equipment, a
54-20 recycling manufacturing facility, pollution control or
54-21 prevention machinery or equipment, a pollution control or
54-22 prevention facility, or the conversion from defense to
54-23 domestic production, the amount of such credit shall be
54-24 equal to 3 percent.
54-25 (c) The credit granted under subsection (b) of this Code
54-26 section shall be subject to the following conditions and
54-27 limitations:
54-28 (1) In order to qualify as a basis for the credit, the
54-29 investment in qualified investment property must occur
54-30 no sooner than January 1, 1995. The credit may be taken
54-31 beginning with the tax year immediately following the
54-32 tax year in which the qualified investment property
54-33 having an aggregate cost in excess of $50,000.00 is
54-34 purchased or acquired by the taxpayer. For every year
54-35 in which a taxpayer claims the credit, the taxpayer
54-36 shall attach a schedule to the taxpayer's Georgia income
54-37 tax return which will set forth the following
54-38 information, as a minimum:
54-39 (A) A description of the project;
54-40 (B) The amount of qualified investment property
54-41 acquired during the taxable year;
54-42 (C) The amount of tax credit claimed for the taxable
54-43 year;
-54-
55- 1 (D) The amount of qualified investment property
55- 2 acquired in prior taxable years;
55- 3 (E) Any tax credit utilized by the taxpayer in prior
55- 4 taxable years;
55- 5 (F) The amount of tax credit carried over from prior
55- 6 years;
55- 7 (G) The amount of tax credit utilized by the taxpayer
55- 8 in the current taxable year; and
55- 9 (H) The amount of tax credit to be carried over to
55-10 subsequent tax years;
55-11 (2) Any credit claimed under this Code section but not
55-12 used in any taxable year may be carried forward for ten
55-13 years from the close of the taxable year in which the
55-14 qualified investment property was acquired, provided
55-15 that such qualified investment property remains in
55-16 service. The credit established by this Code section
55-17 taken in any one taxable year shall be limited to an
55-18 amount not greater than 50 percent of the taxpayer's
55-19 state income tax liability which is attributable to
55-20 income derived from operations in this state for that
55-21 taxable year. The sale, merger, acquisition, or
55-22 bankruptcy of any taxpayer shall not create new
55-23 eligibility in any succeeding taxpayer, but any unused
55-24 credit may be transferred and continued by any
55-25 transferee of the taxpayer;
55-26 (3) In the initial year in which the taxpayer claims the
55-27 credit granted in subsection (b) of this Code section,
55-28 the taxpayer shall include in the description of the
55-29 project required by subparagraph (A) of paragraph (1) of
55-30 this subsection information which demonstrates that the
55-31 project includes the acquisition of qualified investment
55-32 property having an aggregate cost in excess of
55-33 $50,000.00;
55-34 (4) Any lease for a period of five years or longer of
55-35 any real or personal property used in a new or expanded
55-36 manufacturing or telecommunications facility which would
55-37 otherwise constitute qualified investment property shall
55-38 be treated as the purchase or acquisition of qualified
55-39 investment property by the lessee. The taxpayer may
55-40 treat the full value of the leased property as qualified
55-41 investment property in the taxable year in which the
55-42 lease becomes binding on the lessor and the taxpayer if
-55-
56- 1 all other conditions of this subsection have been met;
56- 2 and
56- 3 (5) The utilization of the credit granted in subsection
56- 4 (b) of this Code section shall have no effect on the
56- 5 taxpayer's ability to claim depreciation for tax
56- 6 purposes on the assets acquired by the taxpayer nor
56- 7 shall the credit have any effect on the taxpayer's basis
56- 8 in such assets for the purpose of depreciation.
56- 9 (d) No taxpayer shall be authorized to claim on a tax
56-10 return for a given project the credit provided for in this
56-11 Code section if such taxpayer claims on such tax return
56-12 any of the credits authorized under Code Section 48-7-15
56-13 or 48-7-16.
56-14 48-7-20.
56-15 (a) As used in this Code section, the term:
56-16 (1) 'Approved retraining' means employer provided or
56-17 employer sponsored retraining that meets the following
56-18 conditions:
56-19 (A) It enhances the functional skills of employees
56-20 otherwise unable to function effectively on the job
56-21 due to skill deficiencies or who would otherwise be
56-22 displaced because such skill deficiencies would
56-23 inhibit their utilization of new technology;
56-24 (B) It is approved and certified by the Department of
56-25 Technical and Adult Education; and
56-26 (C) The employer does not require the employee to make
56-27 any payment for the retraining, either directly or
56-28 indirectly through use of forfeiture of leave time,
56-29 vacation time, or other compensable time.
56-30 (2) 'Cost of retraining' means direct instructional
56-31 costs as defined by the Department of Technical and
56-32 Adult Education including instructor salaries,
56-33 materials, supplies, and textbooks but specifically
56-34 excluding costs associated with renting or otherwise
56-35 securing space.
56-36 (3) 'Employee' means any employee resident in this state
56-37 who is employed for at least 25 hours a week, who has
56-38 been continuously employed by the employer for at least
56-39 16 consecutive weeks.
-56-
57- 1 (4) 'Employer' means any employer upon whom an income
57- 2 tax is imposed by this chapter.
57- 3 (5) 'Employer provided' refers to approved retraining
57- 4 offered on the premises of the employer or on premises
57- 5 approved by the Department of Technical and Adult
57- 6 Education by instructors hired by or employed by an
57- 7 employer.
57- 8 (6) 'Employer sponsored' refers to a contractual
57- 9 arrangement with a school, university, college, or other
57-10 instructional facility which offers approved retraining
57-11 that is paid for by the employer.
57-12 (b) A tax credit shall be granted to an employer who
57-13 provides or sponsors an approved retraining program. The
57-14 amount of the tax credit shall be equal to one-half of the
57-15 costs of retraining per full-time employee, or $500.00 per
57-16 full-time employee, whichever is less, for each employee
57-17 who has successfully completed an approved retraining
57-18 program. No employer may receive a credit if the employer
57-19 requires that the employee reimburse or pay the employer
57-20 for the cost of retraining.
57-21 (c) Any tax credit claimed under this Code section for any
57-22 taxable year beginning on or after January 1, 1998, but
57-23 not used for any such taxable year may be carried forward
57-24 for ten years from the close of the taxable year in which
57-25 the tax credit was granted. The tax credit granted to any
57-26 employer pursuant to this Code section shall not exceed 50
57-27 percent of the amount of the taxpayer's income tax
57-28 liability for the taxable year as computed without regard
57-29 to this Code section.
57-30 (d) To be eligible to claim the credit granted under this
57-31 Code section, the employer must certify to the department
57-32 the name of the employee, the course work successfully
57-33 completed by such employee, the name of the provider of
57-34 the approved retraining, and such other information as may
57-35 be required by the department to ensure that credits are
57-36 only granted to employers who provide or sponsor approved
57-37 retraining pursuant to this Code section and that such
57-38 credits are only granted to employers with respect to
57-39 employees who successfully complete such approved
57-40 retraining. The department shall adopt rules and
57-41 regulations and forms to implement this credit program.
57-42 The department is expressly authorized and directed to
57-43 work with the Department of Technical and Adult Education
-57-
58- 1 to ensure the proper granting of credits pursuant to this
58- 2 Code section.
58- 3 (e) The Department of Technical and Adult Education is
58- 4 expressly authorized and directed to establish such
58- 5 standards as it deems necessary and convenient in
58- 6 approving employer provided and employer sponsored
58- 7 retraining programs. In establishing such standards, the
58- 8 Department of Technical and Adult Education shall
58- 9 establish required hours of classroom instruction,
58-10 required courses, certification of teachers or
58-11 instructors, progressive levels of instruction, and
58-12 standardized measures of employee evaluation to determine
58-13 successful completion of a course of study.
58-14 48-7-21.
58-15 (a) As used in this Code section, the term:
58-16 (1) 'Cost of operation' means reasonable direct
58-17 operational costs incurred by an employer as a result of
58-18 providing employer provided or employer sponsored child
58-19 care facilities.
58-20 (2) 'Employer' means any employer upon whom an income
58-21 tax is imposed by this chapter.
58-22 (3) 'Employer provided' refers to child care offered on
58-23 the premises of the employer, provided that the facility
58-24 is in Georgia.
58-25 (4) 'Employer sponsored' refers to a contractual
58-26 arrangement with a child care facility that is paid for
58-27 by the employer.
58-28 (b) A tax credit shall be granted to an employer who
58-29 provides or sponsors child care for employees. The amount
58-30 of the tax credit shall be equal to one-half of the cost
58-31 of operation to the employer less any amounts paid for by
58-32 employees during a taxable year.
58-33 (c) The tax credit granted to any employer pursuant to
58-34 this Code section shall not exceed 50 percent of the
58-35 amount of the taxpayer's income tax liability for the
58-36 taxable year as computed without regard to this Code
58-37 section. Any credit claimed under this Code section but
58-38 not used in any taxable year may be carried forward for
58-39 five years from the close of the taxable year in which the
58-40 cost of operation was incurred.
-58-
59- 1 (d) To be eligible to claim the credit granted under this
59- 2 Code section, the employer must certify to the department
59- 3 the names of the employees, the name of the child care
59- 4 provider, and such other information as may be required by
59- 5 the department to ensure that credits are only granted to
59- 6 employers who provide or sponsor approved child care
59- 7 pursuant to this Code section. The department shall adopt
59- 8 rules and regulations and forms to implement this credit
59- 9 program.
59-10 48-7-22.
59-11 (a) As used in this Code section, the term:
59-12 (1) 'Approved basic skills education' means employer
59-13 provided or employer sponsored education that meets the
59-14 following conditions:
59-15 (A) It enhances reading, writing, or mathematical
59-16 skills up to and including the twelfth-grade level for
59-17 employees who are otherwise unable to function
59-18 effectively on the job due to deficiencies in those
59-19 areas or who would otherwise be displaced because such
59-20 skill deficiencies would inhibit their training for
59-21 new technology;
59-22 (B) It is approved and certified by the Department of
59-23 Technical and Adult Education; and
59-24 (C) The employer does not require the employee to make
59-25 any payment for the education, either directly or
59-26 indirectly through use of forfeiture of leave time,
59-27 vacation time, or other compensable time.
59-28 (2) 'Cost of education' means direct instructional costs
59-29 as defined by the Department of Technical and Adult
59-30 Education including instructor salaries, materials,
59-31 supplies, and textbooks but specifically excluding costs
59-32 associated with renting or otherwise securing space.
59-33 (3) 'Employee' means any employee resident in this state
59-34 who is employed for at least 24 hours a week and who has
59-35 been continuously employed by the employer for at least
59-36 16 consecutive weeks.
59-37 (4) 'Employer' means any employer upon whom an income
59-38 tax is imposed by this chapter.
59-39 (5) 'Employer provided' refers to approved basic skills
59-40 education offered on the premises of the employer or on
59-41 premises approved by the Department of Technical and
-59-
60- 1 Adult Education by instructors hired by or employed by
60- 2 an employer.
60- 3 (6) 'Employer sponsored' refers to a contractual
60- 4 arrangement with a school, university, college, or other
60- 5 instructional facility which offers approved basic
60- 6 skills education that is paid for by the employer.
60- 7 (b) A tax credit shall be granted to an employer who
60- 8 provides or sponsors an approved basic skills education
60- 9 program. The amount of the tax credit shall be equal to
60-10 one-third of the costs of education per full-time
60-11 equivalent student, or $150.00 per full-time equivalent
60-12 student, whichever is less, for each employee who has
60-13 successfully completed an approved basic skills education
60-14 program. No employer may receive a credit if the employer
60-15 requires that the employee reimburse or pay the employer
60-16 for the cost of education.
60-17 (c) The tax credit granted to any employer pursuant to
60-18 this Code section shall not exceed the amount of the
60-19 taxpayer's income tax liability for the taxable year as
60-20 computed without regard to this Code section.
60-21 (d) To be eligible to claim the credit granted under this
60-22 Code section, the employer must certify to the department
60-23 the name of the employee, the course work successfully
60-24 completed by such employee, the name of the approved basic
60-25 skills education provider, and such other information as
60-26 may be required by the department to ensure that credits
60-27 are only granted to employers who provide or sponsor
60-28 approved basic skills education pursuant to this Code
60-29 section and that such credits are only granted to
60-30 employers with respect to employees who successfully
60-31 complete such approved basic skills education. The
60-32 department shall adopt rules and regulations and forms to
60-33 implement this credit program. The department is
60-34 expressly authorized and directed to work with the
60-35 Department of Technical and Adult Education to ensure the
60-36 proper granting of credits pursuant to this Code section.
60-37 (e) The Department of Technical and Adult Education is
60-38 expressly authorized and directed to establish such
60-39 standards as it deems necessary and convenient in
60-40 approving employer provided and employer sponsored basic
60-41 skills education programs. In establishing such
60-42 standards, the Department of Technical and Adult Education
60-43 shall establish required hours of classroom instruction,
-60-
61- 1 required courses, certification of teachers or
61- 2 instructors, and progressive levels of instruction and
61- 3 standardized measures of employee evaluation to determine
61- 4 successful completion of a course of study.
61- 5 48-7-23.
61- 6 (a) As used in this Code section, the term:
61- 7 (1) 'Machinery and equipment' means all tangible
61- 8 personal property used, directly or indirectly, to move,
61- 9 sort, store, prepare, convert, process, fabricate, or
61-10 manufacture products.
61-11 (2) 'Product' means a marketable product or component of
61-12 a product which has an economic value to the wholesale
61-13 or retail consumer and is ready to be used without
61-14 further alteration of its form or a product or material
61-15 which is marketed as a prepared material or is a
61-16 component in the manufacturing and assembly of other
61-17 finished products.
61-18 (3) 'Qualified investment property' means all real and
61-19 personal property purchased or acquired by a taxpayer
61-20 for use in the construction of an additional
61-21 manufacturing or telecommunications facility to be
61-22 located in this state or the expansion of an existing
61-23 manufacturing or telecommunications facility located in
61-24 this state, including, but not limited to, amounts
61-25 expended on land acquisition, improvements, buildings,
61-26 building improvements, and machinery and equipment to be
61-27 used exclusively in the manufacturing or
61-28 telecommunications facility. The department shall
61-29 promulgate rules defining eligible manufacturing
61-30 facilities, telecommunications facilities, and qualified
61-31 investment property pursuant to this paragraph.
61-32 (b) In the case of a taxpayer which has operated for the
61-33 immediately preceding three years an existing
61-34 manufacturing or telecommunications facility or
61-35 manufacturing or telecommunications support facility and
61-36 which first places in service during a taxable year
61-37 qualified investment property in this state in a tier 1
61-38 county designated pursuant to Code Section 48-7-15, there
61-39 shall be allowed an optional credit against the tax
61-40 imposed under this chapter for the ensuing ten taxable
61-41 years following the taxable year the qualified investment
61-42 property was first placed in service, provided that such
61-43 qualified investment property remains in service. Such
-61-
62- 1 optional credit shall be at the irrevocable election of
62- 2 the taxpayer and shall be in lieu of the credit under Code
62- 3 Section 48-7-17. No taxpayer who claims the credit under
62- 4 Code Section 48-7-17 for any taxable year for a given
62- 5 project shall be eligible to receive the credit under this
62- 6 Code section with respect to the same project for any
62- 7 taxable year. The aggregate amount of the credit allowed
62- 8 under this Code section shall equal 10 percent of the cost
62- 9 of all qualified investment property purchased or acquired
62-10 by the taxpayer and first placed in service during a
62-11 taxable year. The annual amount of such credit shall be
62-12 computed as follows:
62-13 (1) The taxable year in which such qualified investment
62-14 property is first placed in service shall be the base
62-15 year for purposes of calculating the credit provided for
62-16 by this Code section;
62-17 (2) The amount of tax owed by the taxpayer for the base
62-18 year and for each of the two immediately preceding
62-19 taxable years shall be determined without regard to any
62-20 credits and shall be added together and divided by
62-21 three. The resulting figure shall be the base year
62-22 average; and
62-23 (3) The credit available to the taxpayer to apply
62-24 against the tax liability of any year following the base
62-25 year but no later than the tenth year shall be the
62-26 lesser of the following amounts:
62-27 (A) Ninety percent of the excess of the tax of the
62-28 applicable year determined without regard to any
62-29 credits over the base year average; or
62-30 (B) The excess of the aggregate amount of the credit
62-31 allowed for the qualified investment property over the
62-32 sum of the amounts of credit already used in the years
62-33 following the base year.
62-34 (c) The credit granted under subsection (b) of this Code
62-35 section shall be subject to the following conditions and
62-36 limitations:
62-37 (1) In order to qualify as a basis for the credit, the
62-38 qualified investment property must be first placed in
62-39 service no sooner than January 1, 1996. The credit may
62-40 only be taken with respect to qualified investment
62-41 property having an aggregate cost in excess of $5
62-42 million. For every year in which a taxpayer claims the
-62-
63- 1 credit, the taxpayer shall attach a schedule to the
63- 2 taxpayer's Georgia income tax return which will set
63- 3 forth the following information, as a minimum:
63- 4 (A) A description of the project;
63- 5 (B) The amount of qualified investment property placed
63- 6 in service during the taxable year;
63- 7 (C) The base year average calculated under paragraph
63- 8 (2) of subsection (b) of this Code section;
63- 9 (D) The tax owed by the taxpayer for the current
63-10 taxable year determined without regard to any credits;
63-11 (E) The amount of the unused credit available at the
63-12 end of the prior tax year;
63-13 (F) The amount of tax credit utilized by the taxpayer
63-14 in the current taxable year; and
63-15 (G) The amount of tax credit remaining for subsequent
63-16 tax years;
63-17 (2) In the initial year in which the taxpayer claims the
63-18 credit granted in subsection (b) of this Code section,
63-19 the taxpayer shall include in the description of the
63-20 project required by subparagraph (A) of paragraph (1) of
63-21 this subsection information which demonstrates that the
63-22 project includes the placing in service of qualified
63-23 investment property having an aggregate cost in excess
63-24 of $5 million;
63-25 (3) Any lease for a period of five years or longer of
63-26 any real or personal property used in a new or expanded
63-27 manufacturing or telecommunications facility which would
63-28 otherwise constitute qualified investment property shall
63-29 be treated as the purchase or acquisition of qualified
63-30 investment property by the lessee. The taxpayer may
63-31 treat the full value of the leased property as qualified
63-32 investment property in the taxable year in which the
63-33 lease becomes binding on the lessor and the taxpayer if
63-34 all other conditions of this subsection have been met;
63-35 and
63-36 (4) The utilization of the credit granted in subsection
63-37 (b) of this Code section shall have no effect on the
63-38 taxpayer's ability to claim depreciation for tax
63-39 purposes on the assets acquired by the taxpayer nor
63-40 shall the credit have any effect on the taxpayer's basis
63-41 in such assets for the purpose of depreciation.
-63-
64- 1 (d) No taxpayer shall be authorized to claim on a tax
64- 2 return for a given project the credit provided for in this
64- 3 Code section if such taxpayer claims on such tax return
64- 4 any of the credits authorized under Code Section 48-7-15
64- 5 or 48-7-16.
64- 6 48-7-24.
64- 7 (a) As used in this Code section, the term:
64- 8 (1) 'Machinery and equipment' means all tangible
64- 9 personal property used, directly or indirectly, to move,
64-10 sort, store, prepare, convert, process, fabricate, or
64-11 manufacture products.
64-12 (2) 'Product' means a marketable product or component of
64-13 a product which has an economic value to the wholesale
64-14 or retail consumer and is ready to be used without
64-15 further alteration of its form or a product or material
64-16 which is marketed as a prepared material or is a
64-17 component in the manufacturing and assembly of other
64-18 finished products.
64-19 (3) 'Qualified investment property' means all real and
64-20 personal property purchased or acquired by a taxpayer
64-21 for use in the construction of an additional
64-22 manufacturing or telecommunications facility to be
64-23 located in this state or the expansion of an existing
64-24 manufacturing or telecommunications facility located in
64-25 this state, including, but not limited to, amounts
64-26 expended on land acquisition, improvements, buildings,
64-27 building improvements, and machinery and equipment to be
64-28 used exclusively in the manufacturing or
64-29 telecommunications facility. The department shall
64-30 promulgate rules defining eligible manufacturing
64-31 facilities, telecommunications facilities, and qualified
64-32 investment property pursuant to this paragraph.
64-33 (b) In the case of a taxpayer which has operated for the
64-34 immediately preceding three years an existing
64-35 manufacturing or telecommunications facility or
64-36 manufacturing or telecommunications support facility and
64-37 which first places in service during a taxable year
64-38 qualified investment property in this state in a tier 2
64-39 county designated pursuant to Code Section 48-7-15, there
64-40 shall be allowed an optional credit against the tax
64-41 imposed under this chapter for the ensuing ten taxable
64-42 years following the taxable year the qualified investment
64-43 property was first placed in service, provided that such
-64-
65- 1 qualified investment property remains in service. Such
65- 2 optional credit shall be at the irrevocable election of
65- 3 the taxpayer and shall be in lieu of the credit under Code
65- 4 Section 48-7-18. No taxpayer who claims the credit under
65- 5 Code Section 48-7-18 for any taxable year for a given
65- 6 project shall be eligible to receive the credit under this
65- 7 Code section with respect to the same project for any
65- 8 taxable year. The aggregate amount of the credit allowed
65- 9 under this Code section shall equal 8 percent of the cost
65-10 of all qualified investment property purchased or acquired
65-11 by the taxpayer and first placed in service during a
65-12 taxable year. The annual amount of such credit shall be
65-13 computed as follows:
65-14 (1) The taxable year in which such qualified investment
65-15 property is first placed in service shall be the base
65-16 year for purposes of calculating the credit provided for
65-17 by this Code section;
65-18 (2) The amount of tax owed by the taxpayer for the base
65-19 year and for each of the two immediately preceding
65-20 taxable years shall be determined without regard to any
65-21 credits and shall be added together and divided by
65-22 three. The resulting figure shall be the base year
65-23 average; and
65-24 (3) The credit available to the taxpayer to apply
65-25 against the tax liability of any year following the base
65-26 year but no later than the tenth year shall be the
65-27 lesser of the following amounts:
65-28 (A) Ninety percent of the excess of the tax of the
65-29 applicable year determined without regard to any
65-30 credits over the base year average; or
65-31 (B) The excess of the aggregate amount of the credit
65-32 allowed for the qualified investment property over the
65-33 sum of the amounts of credit already used in the years
65-34 following the base year.
65-35 (c) The credit granted under subsection (b) of this Code
65-36 section shall be subject to the following conditions and
65-37 limitations:
65-38 (1) In order to qualify as a basis for the credit, the
65-39 qualified investment property must be first placed in
65-40 service no sooner than January 1, 1996. The credit may
65-41 only be taken with respect to qualified investment
65-42 property having an aggregate cost in excess of $10
-65-
66- 1 million. For every year in which a taxpayer claims the
66- 2 credit, the taxpayer shall attach a schedule to the
66- 3 taxpayer's Georgia income tax return which will set
66- 4 forth the following information, as a minimum:
66- 5 (A) A description of the project;
66- 6 (B) The amount of qualified investment property placed
66- 7 in service during the taxable year;
66- 8 (C) The base year average calculated under paragraph
66- 9 (2) of subsection (b) of this Code section;
66-10 (D) The tax owed by the taxpayer for the current
66-11 taxable year determined without regard to any credits;
66-12 (E) The amount of the unused credit available at the
66-13 end of the prior tax year;
66-14 (F) The amount of tax credit utilized by the taxpayer
66-15 in the current taxable year; and
66-16 (G) The amount of tax credit remaining for subsequent
66-17 tax years;
66-18 (2) In the initial year in which the taxpayer claims the
66-19 credit granted in subsection (b) of this Code section,
66-20 the taxpayer shall include in the description of the
66-21 project required by subparagraph (A) of paragraph (1) of
66-22 this subsection information which demonstrates that the
66-23 project includes the placing in service of qualified
66-24 investment property having an aggregate cost in excess
66-25 of $10 million;
66-26 (3) Any lease for a period of five years or longer of
66-27 any real or personal property used in a new or expanded
66-28 manufacturing or telecommunications facility which would
66-29 otherwise constitute qualified investment property shall
66-30 be treated as the purchase or acquisition of qualified
66-31 investment property by the lessee. The taxpayer may
66-32 treat the full value of the leased property as qualified
66-33 investment property in the taxable year in which the
66-34 lease becomes binding on the lessor and the taxpayer if
66-35 all other conditions of this subsection have been met;
66-36 and
66-37 (4) The utilization of the credit granted in subsection
66-38 (b) of this Code section shall have no effect on the
66-39 taxpayer's ability to claim depreciation for tax
66-40 purposes on the assets acquired by the taxpayer nor
-66-
67- 1 shall the credit have any effect on the taxpayer's basis
67- 2 in such assets for the purpose of depreciation.
67- 3 (d) No taxpayer shall be authorized to claim on a tax
67- 4 return for a given project the credit provided for in this
67- 5 Code section if such taxpayer claims on such tax return
67- 6 any of the credits authorized under Code Section 48-7-15
67- 7 or 48-7-16.
67- 8 48-7-25.
67- 9 (a) As used in this Code section, the term:
67-10 (1) 'Machinery and equipment' means all tangible
67-11 personal property used, directly or indirectly, to move,
67-12 sort, store, prepare, convert, process, fabricate, or
67-13 manufacture products.
67-14 (2) 'Product' means a marketable product or component of
67-15 a product which has an economic value to the wholesale
67-16 or retail consumer and is ready to be used without
67-17 further alteration of its form or a product or material
67-18 which is marketed as a prepared material or is a
67-19 component in the manufacturing and assembly of other
67-20 finished products.
67-21 (3) 'Qualified investment property' means all real and
67-22 personal property purchased or acquired by a taxpayer
67-23 for use in the construction of an additional
67-24 manufacturing or telecommunications facility to be
67-25 located in this state or the expansion of an existing
67-26 manufacturing or telecommunications facility located in
67-27 this state, including, but not limited to, amounts
67-28 expended on land acquisition, improvements, buildings,
67-29 building improvements, and machinery and equipment to be
67-30 used exclusively in the manufacturing or
67-31 telecommunications facility. The department shall
67-32 promulgate rules defining eligible manufacturing
67-33 facilities, telecommunications facilities, and qualified
67-34 investment property pursuant to this paragraph.
67-35 (b) In the case of a taxpayer which has operated for the
67-36 immediately preceding three years an existing
67-37 manufacturing or telecommunications facility or
67-38 manufacturing or telecommunications support facility and
67-39 which first places in service during a taxable year
67-40 qualified investment property in this state in a tier 3
67-41 county designated pursuant to Code Section 48-7-15, there
67-42 shall be allowed an optional credit against the tax
-67-
68- 1 imposed under this chapter for the ensuing ten taxable
68- 2 years following the taxable year the qualified investment
68- 3 property was first placed in service, provided that such
68- 4 qualified investment property remains in service. Such
68- 5 optional credit shall be at the irrevocable election of
68- 6 the taxpayer and shall be in lieu of the credit under Code
68- 7 Section 48-7-19. No taxpayer who claims the credit under
68- 8 Code Section 48-7-19 for any taxable year for a given
68- 9 project shall be eligible to receive the credit under this
68-10 Code section with respect to the same project for any
68-11 taxable year. The aggregate amount of the credit allowed
68-12 under this Code section shall equal 6 percent of the cost
68-13 of all qualified investment property purchased or acquired
68-14 by the taxpayer and first placed in service during a
68-15 taxable year. The annual amount of such credit shall be
68-16 computed as follows:
68-17 (1) The taxable year in which such qualified investment
68-18 property is first placed in service shall be the base
68-19 year for purposes of calculating the credit provided for
68-20 by this Code section;
68-21 (2) The amount of tax owed by the taxpayer for the base
68-22 year and for each of the two immediately preceding
68-23 taxable years shall be determined without regard to any
68-24 credits and shall be added together and divided by
68-25 three. The resulting figure shall be the base year
68-26 average; and
68-27 (3) The credit available to the taxpayer to apply
68-28 against the tax liability of any year following the base
68-29 year but no later than the tenth year shall be the
68-30 lesser of the following amounts:
68-31 (A) Ninety percent of the excess of the tax of the
68-32 applicable year determined without regard to any
68-33 credits over the base year average; or
68-34 (B) The excess of the aggregate amount of the credit
68-35 allowed for the qualified investment property over the
68-36 sum of the amounts of credit already used in the years
68-37 following the base year.
68-38 (c) The credit granted under subsection (b) of this Code
68-39 section shall be subject to the following conditions and
68-40 limitations:
68-41 (1) In order to qualify as a basis for the credit, the
68-42 qualified investment property must be first placed in
-68-
69- 1 service no sooner than January 1, 1996. The credit may
69- 2 only be taken with respect to qualified investment
69- 3 property having an aggregate cost in excess of $20
69- 4 million. For every year in which a taxpayer claims the
69- 5 credit, the taxpayer shall attach a schedule to the
69- 6 taxpayer's Georgia income tax return which will set
69- 7 forth the following information, as a minimum:
69- 8 (A) A description of the project;
69- 9 (B) The amount of qualified investment property placed
69-10 in service during the taxable year;
69-11 (C) The base year average calculated under paragraph
69-12 (2) of subsection (b) of this Code section;
69-13 (D) The tax owed by the taxpayer for the current
69-14 taxable year determined without regard to any credits;
69-15 (E) The amount of unused tax credit available at the
69-16 end of the prior tax year;
69-17 (F) The amount of tax credit utilized by the taxpayer
69-18 in the current taxable year; and
69-19 (G) The amount of tax credit remaining for subsequent
69-20 tax years;
69-21 (2) In the initial year in which the taxpayer claims the
69-22 credit granted in subsection (b) of this Code section,
69-23 the taxpayer shall include in the description of the
69-24 project required by subparagraph (A) of paragraph (1) of
69-25 this subsection information which demonstrates that the
69-26 project includes the placing in service of qualified
69-27 investment property having an aggregate cost in excess
69-28 of $20 million;
69-29 (3) Any lease for a period of five years or longer of
69-30 any real or personal property used in a new or expanded
69-31 manufacturing or telecommunications facility which would
69-32 otherwise constitute qualified investment property shall
69-33 be treated as the purchase or acquisition of qualified
69-34 investment property by the lessee. The taxpayer may
69-35 treat the full value of the leased property as qualified
69-36 investment property in the taxable year in which the
69-37 lease becomes binding on the lessor and the taxpayer if
69-38 all other conditions of this subsection have been met;
69-39 and
69-40 (4) The utilization of the credit granted in subsection
69-41 (b) of this Code section shall have no effect on the
-69-
70- 1 taxpayer's ability to claim depreciation for tax
70- 2 purposes on the assets acquired by the taxpayer, nor
70- 3 shall the credit have any effect on the taxpayer's basis
70- 4 in such assets for the purpose of depreciation.
70- 5 (d) No taxpayer shall be authorized to claim on a tax
70- 6 return for a given project the credit provided for in this
70- 7 Code section if such taxpayer claims on such tax return
70- 8 any of the credits authorized under Code Section 48-7-15
70- 9 or 48-7-16.
70-10 48-7-26.
70-11 (a) As used in this Code section, the term:
70-12 (1) 'Machinery and equipment' means all tangible
70-13 personal property used directly in a minimum 10 percent
70-14 reduction in permit by relinquishment or transfer of
70-15 annual permitted water usage from existing permitted
70-16 ground-water sources.
70-17 (2) 'Qualified water conservation investment' means all
70-18 spending by a taxpayer for use in this state for the
70-19 modification of existing manufacturing processes, for
70-20 the construction of a new water conservation facility,
70-21 or for the expansion of an existing water conservation
70-22 facility provided that such modification, construction,
70-23 or expansion results in a minimum 10 percent reduction
70-24 in permit by relinquishment or transfer of annual
70-25 permitted water usage from existing permitted
70-26 ground-water sources and has been certified pursuant to
70-27 rules and regulations promulgated by the Department of
70-28 Natural Resources as necessary to promote its
70-29 ground-water management efforts for areas with a
70-30 multiyear record of consumption at, near, or above
70-31 sustainable use signaled by declines in ground-water
70-32 pressure, threats of salt-water intrusion, need to
70-33 develop alternate sources to accommodate economic growth
70-34 and development, or any other indication of growing
70-35 inadequacy of the existing resource.
70-36 (3) 'Water conservation' means a minimum 10 percent
70-37 reduction in permit by relinquishment or transfer of
70-38 annual permitted water usage from existing permitted
70-39 ground-water sources due to increased efficiencies or
70-40 recycling of water which results in reduced ground-water
70-41 usage, or a change from a ground-water source to a
70-42 surface-water source or an alternate source.
-70-
71- 1 (4) 'Water conservation facility' means any facility,
71- 2 buildings, and machinery and equipment used in the water
71- 3 conservation process resulting in a minimum 10 percent
71- 4 reduction in permit by relinquishment or transfer of
71- 5 annual permitted water usage from existing ground-water
71- 6 sources, provided that up to 10 percent of any building
71- 7 that is a component of a water conservation facility may
71- 8 be used for office space to house support staff for the
71- 9 operation.
71-10 (b) Any taxpayer who financially participates in qualified
71-11 water conservation investment in this state shall be
71-12 allowed a credit against the tax imposed under this
71-13 chapter in the taxable year following that in which the
71-14 modified manufacturing process or the new or expanded
71-15 water conservation facility has been placed in service and
71-16 in which the taxpayer has initiated a minimum 10 percent
71-17 reduction in permit by relinquishment or transfer of
71-18 annual permitted water usage from existing permitted
71-19 ground-water sources. This credit shall have a maximum
71-20 carry forward of ten years, provided that such property
71-21 remains in service, that the reduction in permit is
71-22 maintained, and that the property continues to be used by
71-23 the taxpayer. The amount of the credit allowed under this
71-24 Code section shall be a percentage of the taxpayer's
71-25 qualified water conservation investment. For projects of
71-26 $50,000.00 to $499,999.00, the credit for such taxpayer
71-27 shall be 10 percent; for projects of $500,000.00 to
71-28 $799,999.00, the credit shall be 8 percent; for projects
71-29 of $800,000.00 to $999,999.00, the credit shall be 6
71-30 percent; and for projects of $1 million or more, the
71-31 credit shall be 5 percent. The amount of the credit which
71-32 may be used in any tax year shall not exceed 50 percent of
71-33 that year's tax liability as determined without regard to
71-34 any other credits.
71-35 (c) The credit granted under subsection (b) of this Code
71-36 section shall be subject to the following conditions and
71-37 limitations:
71-38 (1) In order to qualify as a basis for the credit, the
71-39 modified manufacturing process or the new or expanded
71-40 water conservation facility must not be placed in
71-41 service before January 1, 1997. The credit may be only
71-42 taken with respect to qualified water conservation
71-43 investment in a project costing $50,000.00 or more. For
71-44 every year in which the taxpayer claims the credit, the
-71-
72- 1 taxpayer shall attach a schedule to the taxpayer's
72- 2 income tax return setting forth as a minimum the
72- 3 following information:
72- 4 (A) The amounts, dates, and nature of the qualified
72- 5 water conservation investments which have allowed a
72- 6 modified manufacturing process or a new or expanded
72- 7 water conservation facility to be placed in service in
72- 8 the prior taxable year;
72- 9 (B) The amount and date of reduction in permitted
72-10 ground-water usage occurring as a result of this
72-11 investment;
72-12 (C) The amount of tax credit claimed for these
72-13 investments for the current taxable year;
72-14 (D) The amounts of qualified water conservation
72-15 investment reported for tax years preceding the prior
72-16 taxable year;
72-17 (E) The amounts of tax credit which have been utilized
72-18 in prior taxable years;
72-19 (F) The amounts of tax credit which has been carried
72-20 over from prior years;
72-21 (G) The amounts of tax credit allowed under this Code
72-22 section being utilized by the taxpayer in the current
72-23 taxable year; and
72-24 (H) The amounts of tax credit to be carried over to
72-25 subsequent years;
72-26 (2) In the initial year in which the taxpayer claims the
72-27 credit granted in subsection (b) of this Code section,
72-28 the taxpayer shall include in the description of the
72-29 project required by subparagraph (A) of paragraph (1) of
72-30 this subsection information which demonstrates that the
72-31 project completed with the qualified water conservation
72-32 investment had an aggregate cost of $50,000.00 or more.
72-33 The taxpayer shall also include a copy of the
72-34 certification by the Department of Natural Resources
72-35 under paragraph (2) of subsection (a) of this Code
72-36 section;
72-37 (3) Any lease for a period of five years or longer of
72-38 any real or personal property resulting from qualified
72-39 water conservation investment shall be treated as
72-40 qualified water conservation investment by the lessee.
72-41 The taxpayer may treat the full value of the leased
-72-
73- 1 property as qualified water conservation investment in
73- 2 the taxable year in which the lease becomes binding on
73- 3 the lessor and the taxpayer if all other conditions of
73- 4 this subsection have been met;
73- 5 (4) The utilization of the credit granted in this Code
73- 6 section shall have no effect on the taxpayer's ability
73- 7 to claim depreciation for tax purposes on assets
73- 8 acquired by the taxpayer, nor shall the credit have any
73- 9 effect on the taxpayer's basis in such assets for the
73-10 purpose of depreciation; and
73-11 (5) If, after receiving approval for the water
73-12 conservation credit, the annual permit for water usage
73-13 from the same ground-water source is increased, any
73-14 unused credits will expire immediately.
73-15 48-7-27.
73-16 (a) As used in this Code section, the term:
73-17 (1) 'Qualified water conservation facility' means any
73-18 facility including buildings, machinery, and equipment
73-19 used in the water conservation process provided:
73-20 (A) The use of the facility results in reduced
73-21 ground-water usage or utilizes a surface-water source;
73-22 and
73-23 (B) The use of the facility has been certified by the
73-24 Department of Natural Resources as necessary to
73-25 promote its ground-water management efforts for areas
73-26 with a multiyear record of consumption at, near, or
73-27 above sustainable use signaled by declines in
73-28 ground-water pressure, threats of salt-water
73-29 intrusion, need to develop alternate sources to
73-30 accommodate economic growth and development, or any
73-31 other indication of growing inadequacy of the existing
73-32 resource.
73-33 (2) 'Shift from ground-water usage' means a minimum 10
73-34 percent transfer of annual permitted ground-water usage
73-35 from ground-water sources due to the purchase of water
73-36 from a qualified water conservation facility.
73-37 (b) In the case of a taxpayer which first shifts from
73-38 ground-water usage during a taxable year, there shall be
73-39 allowed an annual credit against the tax imposed under
73-40 this chapter starting in the fourth taxable year following
73-41 the taxable year in which the the shift from ground-water
-73-
74- 1 usage occurs. The amount of the credit shall be computed
74- 2 as follows:
74- 3 (1) The amount of the credit allowed under this Code
74- 4 section shall be $.0001 per gallon of the total gallons
74- 5 of relinquished and transferred annual ground-water
74- 6 permit issued after July 1, 1996; and
74- 7 (2) The amount of the credit which may be used in any
74- 8 tax year shall not exceed 50 percent of that year's tax
74- 9 liability as determined without regard to other credits.
74-10 (c) The credit granted under this Code section shall be
74-11 subject to the following conditions and limitations:
74-12 (1) For every year in which the taxpayer claims the
74-13 credit, the taxpayer shall attach a schedule to the
74-14 taxpayer's income tax return setting forth as a minimum
74-15 the following information:
74-16 (A) The ground-water usage permitted the taxpayer in
74-17 the first permit issued after July 1, 1996;
74-18 (B) The ground-water usage permitted the taxpayer in
74-19 the tax year four years earlier than the current tax
74-20 year;
74-21 (C) The ground-water usage permitted the taxpayer in
74-22 the current year; and
74-23 (D) The credit utilized by the taxpayer in the current
74-24 year;
74-25 (2) In the initial year in which the taxpayer claims the
74-26 credit granted in subsection (b) of this Code section,
74-27 the taxpayer shall include a copy of the certification
74-28 by the Department of Natural Resources under paragraph
74-29 (2) of subsection (a) of this Code section; and
74-30 (3) If, after receiving approval for the water
74-31 conservation credit, the annual permit for water usage
74-32 from the same ground-water source is increased,
74-33 eligibility to use such credits shall expire
74-34 immediately.
74-35 48-7-28.
74-36 (a) As used in this Code section, the term:
74-37 (1) 'Base amount' means the product of a business
74-38 enterprise's Georgia taxable net income in the current
74-39 taxable year and the average of the ratios of its
-74-
75- 1 aggregate qualified research expenses to Georgia taxable
75- 2 net income for the preceding three taxable years or
75- 3 0.300, whichever is less.
75- 4 (2) 'Business enterprise' means any business or the
75- 5 headquarters of any such business which is engaged in
75- 6 manufacturing, warehousing and distribution, processing,
75- 7 telecommunications, tourism, and research and
75- 8 development industries. Such term shall not include
75- 9 retail businesses.
75-10 (3) 'Qualified research expenses' means qualified
75-11 research expenses for any business enterprise as that
75-12 term is defined in Section 41 of the Internal Revenue
75-13 Code of 1986, as amended, except that all wages paid and
75-14 all purchases of services and supplies must be for
75-15 research conducted within the State of Georgia.
75-16 (b) A tax credit is allowed a business enterprise which
75-17 has qualified research expenses in Georgia in a taxable
75-18 year exceeding a base amount, provided that the business
75-19 enterprise for the same taxable year claims and is allowed
75-20 a research credit under Section 41 of the Internal Revenue
75-21 Code of 1986, as amended.
75-22 (c) The tax credit provided in subsection (b) of this Code
75-23 section shall be 10 percent of the excess over the base
75-24 amount referred to in said subsection.
75-25 (d) Any unused credit claimed under this Code section may
75-26 be carried forward ten years from the close of the taxable
75-27 year in which the qualified research expenses were made.
75-28 The credit taken in any one taxable year shall not exceed
75-29 50 percent of the business enterprise's remaining Georgia
75-30 net income tax liability after all other credits have been
75-31 applied.
75-32 48-7-28.1
75-33 (a) As used in this Code section, the term 'business
75-34 enterprise' means any business or the headquarters of any
75-35 such business which is engaged in manufacturing,
75-36 warehousing and distribution, processing,
75-37 telecommunications, tourism, and research and development
75-38 industries. Such term shall not include retail
75-39 businesses.
75-40 (b) A tax credit is allowed a business enterprise having a
75-41 Georgia net taxable income in the current taxable year
75-42 which is 20 percent or more above that of the preceding
-75-
76- 1 taxable year, if such business enterprise's Georgia net
76- 2 taxable income in each of the two taxable years preceding
76- 3 the current taxable year also was 20 percent or more above
76- 4 each respective preceding taxable year.
76- 5 (c) The tax credit provided in subsection (b) of this Code
76- 6 section shall be the excess over 20 percent of the
76- 7 percentage growth in the business enterprise's Georgia net
76- 8 taxable income in the current taxable year, provided that
76- 9 the tax credit shall not exceed 50 percent of the business
76-10 enterprise's Georgia net income tax liability after all
76-11 other credits have been applied for the current taxable
76-12 year and shall not be allowed if the total Georgia income
76-13 tax liability before application of the credit exceeds
76-14 $1.5 million.
76-15 (d) The tax credit provided in subsection (b) of this Code
76-16 section may not be carried backward or forward.
76-17 48-7-28.2.
76-18 Notwithstanding any provision to the contrary of Code
76-19 Sections 48-7-15 and 48-7-16, business enterprises may
76-20 make a one-time election to calculate new full-time jobs
76-21 on a calendar year rather than a taxable year basis for
76-22 all jobs created during calendar year 1994 and thereafter
76-23 as compared against the preceding calendar year. Such
76-24 one-time election may be made by claiming job tax credits
76-25 in connection with any 1995 state income tax return or
76-26 amended return that is filed after April 29, 1997. Such
76-27 election will not change the taxable year of the business
76-28 enterprise.
76-29 48-7-28.3.
76-30 (a) As used in this Code section, the term:
76-31 (1) 'Base year port traffic' means the total amount of
76-32 net tons, containers, or twenty-foot equivalent units
76-33 (TEU's), of product actually transported by way of a
76-34 waterborne ship or vehicle through a port facility
76-35 during the period from January 1, 1997, through December
76-36 31, 1997; provided, however, that in the event the total
76-37 amount actually transported during such period was not
76-38 at least 75 net tons, five containers, or ten
76-39 twenty-foot equivalent units (TEU's), then 'base year
76-40 port traffic' means 75 net tons, five containers, or ten
76-41 twenty-foot equivalent units (TEU's).
-76-
77- 1 (2) 'Business enterprise' means any business or the
77- 2 headquarters of any such business which is engaged in
77- 3 manufacturing, warehousing and distribution, processing,
77- 4 telecommunications, tourism, and research and
77- 5 development industries but shall not include retail
77- 6 businesses.
77- 7 (3) 'Port facility' means any privately owned or
77- 8 publicly owned facility located within this state
77- 9 through which product is transported by way of a
77-10 waterborne ship or vehicle to or from destinations
77-11 outside this state.
77-12 (4) 'Port traffic' means the total amount of net tons,
77-13 containers, or twenty-foot equivalent units (TEU's) of
77-14 product transported by way of a waterborne ship or
77-15 vehicle through a port facility.
77-16 (5) 'Product' means a marketable product or component of
77-17 a product which has an economic value to the wholesale
77-18 or retail consumer and is ready to be used without
77-19 further alteration of its form or a product or material
77-20 which is marketed as a prepared material or is a
77-21 component in the manufacturing and assembly of other
77-22 finished products.
77-23 (6) 'Qualified investment property' means all real and
77-24 personal property purchased or acquired by a taxpayer
77-25 for use in the construction of an additional
77-26 manufacturing or telecommunications facility to be
77-27 located in this state or in the expansion of an existing
77-28 manufacturing or telecommunications facility located in
77-29 this state, including, but not limited to, moneys
77-30 expended on land acquisition, improvements, buildings,
77-31 building improvements, and machinery and equipment to be
77-32 used in the manufacturing or telecommunications
77-33 facility. The department shall promulgate rules
77-34 defining eligible manufacturing facilities,
77-35 telecommunications facilities, and qualified investment
77-36 property pursuant to this Code section.
77-37 (b)(1) In the case of any business enterprise which has
77-38 increased its port traffic of products during the
77-39 previous 12 month period by more than 10 percent above
77-40 its base year port traffic and is qualified to claim a
77-41 job tax credit under Code Section 48-7-15 for jobs added
77-42 at any time between January 1, 1998, and July 1, 2002,
-77-
78- 1 there shall be allowed a credit against the tax imposed
78- 2 under this chapter as follows:
78- 3 (A) Business enterprises in counties designated by the
78- 4 commissioner of community affairs as tier 1 counties
78- 5 shall be allowed a job tax credit for taxes imposed
78- 6 under this chapter equal to $3,500.00 annually;
78- 7 (B) Business enterprises in counties designated by the
78- 8 commissioner of community affairs as tier 2 counties
78- 9 shall be allowed a job tax credit for taxes imposed
78-10 under this chapter equal to $3,000.00 annually; and
78-11 (C) Business enterprises in counties designated by the
78-12 commissioner of community affairs as tier 3 counties
78-13 shall be allowed a job tax credit for taxes imposed
78-14 under this chapter equal to $2,500.00.
78-15 (2) The tax credit described in this subsection shall be
78-16 allowed subject to the conditions and limitations set
78-17 forth in Code Section 48-7-15 and shall be in lieu of
78-18 and not in addition to the credit allowed under Code
78-19 Section 48-7-15; provided, however, such credit shall
78-20 not be allowed during a year if the port traffic does
78-21 not remain above the minimum level established in this
78-22 Code section.
78-23 (c) In the case of any business enterprise which has
78-24 increased its port traffic of products during the previous
78-25 12 month period by more than 10 percent above its base
78-26 year port traffic and is qualified to claim a tax credit
78-27 under Code Section 48-7-17, 48-7-18, 48-7-19, 48-7-23,
78-28 48-7-24, or 48-7-25 upon qualified investment property
78-29 added at any time between January 1, 1998, and July 1,
78-30 2002, there shall be allowed a credit against the tax
78-31 imposed under this chapter in an amount equal to the
78-32 applicable percentage amount otherwise allowed under Code
78-33 Section 48-7-17 or 48-7-23 to business enterprises for the
78-34 cost of such property. The tax credit described in this
78-35 subsection shall be allowed subject to the conditions and
78-36 limitations set forth in Code Section 48-7-17 or 48-7-23,
78-37 as applicable, except that such property may be placed in
78-38 service in any county without regard to its tier
78-39 designation. Such credit shall also be in lieu of and not
78-40 in addition to the credit authorized under Code Sections
78-41 48-7-17, 48-7-18, 48-7-19, 48-7-23, 48-7-24, and 48-7-25.
78-42 (d) No business enterprise shall be authorized to claim
78-43 the credits provided for in both subsections (b) and (c)
-78-
79- 1 of this Code section on a tax return for any taxable year
79- 2 unless such business enterprise has increased its port
79- 3 traffic of products during the previous 12 month period by
79- 4 more than 20 percent above its base year port traffic, has
79- 5 increased employment by 400 or more no sooner than January
79- 6 1, 1998, and has purchased or acquired qualified
79- 7 investment property having an aggregate cost in excess of
79- 8 $20 million no sooner than January 1, 1998.
79- 9 (e) The credit granted under this Code section shall be
79-10 subject to the following conditions and limitations:
79-11 (1) For every year in which a taxpayer claims the
79-12 credit, the taxpayer shall attach a schedule to the
79-13 taxpayer's state income tax return which shall set forth
79-14 the following information, as a minimum, in addition to
79-15 the information required under Code Sections 48-7-15 and
79-16 48-7-17 or 48-7-23:
79-17 (A) A description of how the base year port traffic
79-18 and the increase in port traffic was determined;
79-19 (B) The amount of the base year port traffic;
79-20 (C) The amount of the increase in port traffic for the
79-21 taxable year, including information which demonstrates
79-22 an increase in port traffic in excess of the minimum
79-23 amount required to claim the tax credit under this
79-24 Code section;
79-25 (D) Any tax credit utilized by the taxpayer in prior
79-26 years;
79-27 (E) The amount of tax credit carried over from prior
79-28 years;
79-29 (F) The amount of tax credit utilized by the taxpayer
79-30 in the current taxable year; and
79-31 (G) The amount of tax credit to be carried over to
79-32 subsequent tax years.
79-33 (2)(A) Any tax credit claimed under subsection (b) of
79-34 this Code section but not used in any taxable year may
79-35 be carried forward for ten years from the close of the
79-36 taxable year in which the qualified jobs were
79-37 established, provided that the increase in port
79-38 traffic remains above the minimum levels established
79-39 in Code Section 48-7-15 and this Code section,
79-40 respectively.
-79-
80- 1 (B) Any tax credit claimed under subsection (c) of
80- 2 this Code section in lieu of Code Section 48-7-17,
80- 3 48-7-18, or 48-7-19 but not used in any taxable year
80- 4 may be carried forward for ten years from the close of
80- 5 the taxable year in which the qualified investment
80- 6 property was acquired, provided that the increase in
80- 7 port traffic remains above the minimum level
80- 8 established in this Code section and the qualified
80- 9 investment property remains in service.
80-10 (3)(A) Any tax credit claimed under subsection (c) of
80-11 this Code section in lieu of Code Section 48-7-23,
80-12 48-7-24, or 48-7-25 shall be allowed for the ensuing
80-13 ten taxable years following the taxable year the
80-14 qualified investment property was first placed in
80-15 service, provided that the increase in port traffic
80-16 remains above the minimum level established in this
80-17 Code section and the qualified investment property
80-18 remains in service.
80-19 (B) The tax credit established by this Code section in
80-20 lieu of Code Section 48-7-15, 48-7-17, 48-7-18, or
80-21 48-7-19 and taken in any one taxable year shall be
80-22 limited to an amount not greater than 50 percent of
80-23 the taxpayer's state income tax liability which is
80-24 attributable to income derived from operations in this
80-25 state for that taxable year.
80-26 (C) The sale, merger, acquisition, or bankruptcy of
80-27 any taxpayer shall not create new eligibility for any
80-28 succeeding taxpayer, but any unused credit may be
80-29 transferred and continued by any transferee of the
80-30 taxpayer.
80-31 48-7-28.4.
80-32 (a) As used in this Code section, the term:
80-33 (1) 'Alternative fuel' means methanol, denatured
80-34 ethanol, and other alcohols; mixtures containing 85
80-35 percent or more by volume of methanol, denatured
80-36 ethanol, and other alcohols with gasoline or other
80-37 fuels; natural gas; liquefied petroleum gas; hydrogen;
80-38 coal derived liquid fuels; fuels other than alcohol
80-39 derived from biological materials; and electricity,
80-40 including electricity from solar energy.
-80-
81- 1 (2) 'Conventionally fueled vehicle' means a motor
81- 2 vehicle which is fueled solely by a petroleum based fuel
81- 3 such as gasoline or diesel.
81- 4 (3) 'Converted vehicle' means a motor vehicle that is
81- 5 retrofitted so that it is fueled solely by an
81- 6 alternative fuel and which meets the emission standards
81- 7 set forth for that class of low-emission vehicles as
81- 8 defined under rules and regulations of the Board of
81- 9 Natural Resources applicable to clean fueled fleets, as
81-10 amended, when operating on such alternative fuel.
81-11 (4) 'Covered area' means a geographic area designated by
81-12 the United States Environmental Protection Agency in the
81-13 Code of Federal Regulations as an area which has not
81-14 attained or maintained the National Ambient Air Quality
81-15 Standard for ozone in accordance with the federal Clean
81-16 Air Act, as amended, or any county adjacent to a covered
81-17 area.
81-18 (5) 'Fleet operator' means a person who operates a fleet
81-19 of ten or more motor vehicles and that fleet is operated
81-20 in a single covered area, even if the fleet motor
81-21 vehicles are garaged outside a covered area.
81-22 (6) 'Low-emission vehicle' means a motor vehicle which
81-23 is fueled solely by an alternative fuel and which meets
81-24 emission standards as defined under rules and
81-25 regulations of the Board of Natural Resources applicable
81-26 to clean fueled fleets, as amended, when operating on
81-27 such alternative fuel.
81-28 (7) 'Motor vehicle' means any self-propelled vehicle
81-29 designed for transporting persons or property on a
81-30 street or highway that is registered by the Motor
81-31 Vehicle Division of the Department of Revenue.
81-32 (b) A tax credit is allowed against the tax imposed under
81-33 this chapter to a taxpayer for the purchase or lease of a
81-34 new low-emission vehicle that is registered in a covered
81-35 area. The amount of the credit shall be $1,500.00 per new
81-36 low-emission vehicle.
81-37 (c) A tax credit is allowed against the tax imposed under
81-38 this chapter to a taxpayer for the conversion of a
81-39 conventionally fueled vehicle to a converted vehicle that
81-40 is registered in a covered area. The amount of the credit
81-41 shall be equal to the cost of conversion, not to exceed
81-42 $1,500.00 per converted vehicle.
-81-
82- 1 (d) The credits granted under this Code section shall be
82- 2 subject to the following conditions and limitations:
82- 3 (1) All claims for any credit provided by subsection (b)
82- 4 of this Code section shall be:
82- 5 (A) Accompanied by a certification issued by the
82- 6 automobile dealership where the new low-emission
82- 7 vehicle was purchased or leased; and
82- 8 (B) Made only by a taxpayer who is the ultimate
82- 9 purchaser or lessee of a new low-emission vehicle at
82-10 retail;
82-11 (2) In order to qualify for a tax credit in a particular
82-12 calendar year for the lease of a new low-emission
82-13 vehicle under subsection (b) of this Code section, the
82-14 lease must be in effect prior to or on the last day of
82-15 the calendar year in which the credit is claimed;
82-16 (3) All claims for any credit provided by subsection (c)
82-17 of this Code section must be accompanied by a
82-18 certification issued by the Environmental Protection
82-19 Division of the Department of Natural Resources;
82-20 (4) Motor vehicles subject to the requirements imposed
82-21 upon fleet operators by the federal Clean Air Act, 42
82-22 U.S.C. Section 7401, et seq., as amended, and applicable
82-23 federal regulations are not eligible for any tax credit
82-24 under this Code section;
82-25 (5) Any credit claimed under this Code section but not
82-26 used in any taxable year may be carried forward for
82-27 three years from the close of the taxable year in which
82-28 a new low-emission vehicle was purchased or leased or a
82-29 conventionally fueled vehicle was changed into a
82-30 converted vehicle, provided that the applicable
82-31 certification required in paragraph (1) or (3) of this
82-32 subsection accompanies any such claim; and
82-33 (6) In no event shall the amount of any tax credit
82-34 provided in this Code section exceed the taxpayer's
82-35 income tax liability.
82-36 (e) The state revenue commissioner shall be authorized to
82-37 adopt rules and regulations to provide for the
82-38 administration of any tax credit provided by this Code
82-39 section.
82-40 (f) The Board of Natural Resources shall be authorized to
82-41 adopt rules and regulations to provide for:
-82-
83- 1 (1) The specific standards and requirements for
83- 2 low-emission and converted vehicles which shall be
83- 3 consistent with the terms of this Code section;
83- 4 (2) An approved certification form which shall be issued
83- 5 by an automobile dealership which certifies the purchase
83- 6 or lease of a new low-emission vehicle that is qualified
83- 7 for a tax credit provided by this Code section; and
83- 8 (3) The certification of any converted vehicle that is
83- 9 qualified to claim a tax credit provided by this Code
83-10 section.
83-11 48-7-29.
83-12 Every corporation subject to taxation under this chapter
83-13 shall make a return stating specifically the items of its
83-14 gross income and the deductions and credits allowed by
83-15 this chapter. The income of two or more corporations shall
83-16 not be included in a single return except with the express
83-17 consent of the commissioner. When a receiver, trustee in
83-18 bankruptcy, or assignee is operating the property or
83-19 business of a corporation, the receiver, trustee, or
83-20 assignee shall make returns for the corporation in the
83-21 same manner and form as the corporation is required to
83-22 make returns. Any tax due on the basis of returns made by
83-23 a receiver, trustee, or assignee shall be collected in the
83-24 same manner as if collected from the corporation of whose
83-25 business or property he or she has custody and control.
83-26 48-7-30.
83-27 (a) Returns of corporations made on the basis of a
83-28 calendar year shall be filed on or before the fifteenth
83-29 day of March following the close of the calendar year, and
83-30 returns of corporations made on the basis of a fiscal year
83-31 shall be filed on or before the fifteenth day of the third
83-32 month following the close of the fiscal year. Returns
83-33 required for a taxable year relating to returns of
83-34 domestic international sales corporations and former
83-35 domestic international sales corporations and foreign
83-36 sales corporations shall be filed on or before the
83-37 fifteenth day of the ninth month following the close of
83-38 the taxable year. The commissioner may allow further time
83-39 for filing returns whenever in the commissioner's judgment
83-40 good cause exists for the extension. In case a taxpayer
83-41 is granted an extension of time to file a return, the
83-42 commissioner may require a tentative return to be filed on
83-43 or before the due date of the return for which the
-83-
84- 1 extension is granted. A tentative return shall be made on
84- 2 the usual form, shall be plainly marked 'tentative,' shall
84- 3 state the estimated amount of the tax believed to be due,
84- 4 and shall be properly signed by the taxpayer.
84- 5 (b) Any taxpayer may file an estimated income tax return
84- 6 within the taxpayer's taxable year in compliance with
84- 7 rules and regulations promulgated by the commissioner.
84- 8 Estimated returns shall be plainly marked 'estimated.'
84- 9 (c) In case of failure to file an income tax return on the
84-10 date prescribed for the filing, such date to be determined
84-11 with regard to any extension of time for filing, there
84-12 shall be added to the amount of tax required to be shown
84-13 on the return 5 percent of the amount of the tax if the
84-14 failure is for not more than one month with an additional
84-15 5 percent for each additional month or fraction of a month
84-16 during which the failure to file continues. No penalty
84-17 shall be assessed pursuant to this Code section which
84-18 exceeds in the aggregate 25 percent of the amount of the
84-19 tax. No penalty shall be assessed pursuant to this Code
84-20 section when it is shown that the failure is due to
84-21 reasonable cause and not due to willful neglect.
84-22 (d) For the purposes of this Code section, the amount of
84-23 tax required to be shown on the return shall be reduced by
84-24 the amount of any part of the tax which is paid on or
84-25 before the date prescribed for payment of the tax and by
84-26 the amount of any credit against the tax which may be
84-27 claimed on the return.
84-28 (e) With respect to any return, the amount of the addition
84-29 under subsection (a) of this Code section shall be reduced
84-30 by the amount of the addition under paragraph (1) of
84-31 subsection (a) of Code Section 48-7-42 for any month to
84-32 which an addition to tax applies under both subsection (a)
84-33 of this Code section and paragraph (1) of subsection (a)
84-34 of Code Section 48-7-42.
84-35 (f) No penalty due to late filing shall be incurred by a
84-36 taxpayer if the taxpayer attaches to his or her return a
84-37 copy of an approved extension of time within which to file
84-38 the taxpayer's federal income tax return which has been
84-39 granted by the Internal Revenue Service and also files a
84-40 state return within the period of time specified in the
84-41 extension. In such instances, the taxpayer need not apply
84-42 to the commissioner for an extension of time within which
84-43 to file the taxpayer's state return.
-84-
85- 1 48-7-31.
85- 2 (a) The following organizations shall be exempt from
85- 3 taxation imposed by Code Section 48-7-7 unless the
85- 4 exemption is denied under subsection (b) or (c) of this
85- 5 Code section:
85- 6 (1) Those organizations described by Section 501(c),
85- 7 501(d), 501(e), 664, or 401 of the Internal Revenue Code
85- 8 of 1986. Organizations described in this paragraph shall
85- 9 be exempt from taxation for state purposes in the same
85-10 manner and to the same extent as for federal purposes;
85-11 and
85-12 (2) Insurance companies which pay to the state a tax
85-13 upon premium income.
85-14 (b)(1) An organization requesting exemption under
85-15 paragraph (1) of subsection (a) of this Code section
85-16 shall file a written application with the commissioner.
85-17 The commissioner shall issue a determination letter or
85-18 ruling to an organization requesting the exemption and
85-19 shall either grant or disallow the requested exempt
85-20 status. Until a determination letter granting exempt
85-21 status is issued by the commissioner, no exempt status
85-22 shall exist. Those organizations which have an exempt
85-23 status in effect under Section 501(c), 501(d), 501(e),
85-24 664, or 401 of the Internal Revenue Code of 1986 on
85-25 January 1, 1987, shall retain the exempt status unless
85-26 revoked as provided by law. The commissioner may issue
85-27 rules governing the filing of written applications and
85-28 the issuance of determination letters.
85-29 (2)(A) The commissioner may revoke the exempt status
85-30 of any organization described in paragraph (1) of
85-31 subsection (a) of this Code section when:
85-32 (i) The Internal Revenue Service revokes the exempt
85-33 status of the organization;
85-34 (ii) The organization ceases to be organized or
85-35 operated in the manner in which it was organized or
85-36 operated at the time the exempt status was granted;
85-37 (iii) The organization engages in any prohibited
85-38 transaction as set forth in the Internal Revenue
85-39 Code of 1986; or
-85-
86- 1 (iv) There is any material change in the character
86- 2 or purpose of the organization or in the mode of
86- 3 operation of the organization.
86- 4 (B) Revocation of an exempt status shall revoke the
86- 5 exempt status retroactively to the time of the
86- 6 occurrence of the disqualifying event or events. All
86- 7 exempt organizations shall immediately notify the
86- 8 commissioner in writing of the occurrence of any of
86- 9 the disqualifying events described in subparagraph (A)
86-10 of this paragraph or of receipt by the organization of
86-11 a notice of intent to terminate its exempt status by
86-12 the Internal Revenue Service. The statute of
86-13 limitations governing the assessment of any taxes
86-14 determined to be due this state due to the revocation
86-15 of exempt status shall be tolled as of the date of the
86-16 occurrence of the disqualifying event or events
86-17 described in subparagraph (A) of this paragraph. The
86-18 commissioner at any time may require an organization
86-19 which is exempt from taxation to file an information
86-20 return stating the organization's gross income,
86-21 receipts, disbursements, accumulation of income, and
86-22 other data deemed necessary for the proper
86-23 administration of this Code section.
86-24 (c)(1) A tax is imposed on income of an organization
86-25 exempted pursuant to paragraph (1) of subsection (a) of
86-26 this Code section when the income is derived from trade
86-27 or business which is not related to exempt purposes of
86-28 organizations described in paragraph (1) of subsection
86-29 (a) of this Code section. This income shall be referred
86-30 to as unrelated business income and shall be the income
86-31 which is defined in Section 512 of the Internal Revenue
86-32 Code of 1986. The tax imposed on unrelated business
86-33 income shall be at the rate provided in Code Section
86-34 48-7-7.
86-35 (2) If an organization is exempt under Section 501(c)(4)
86-36 of the United States Internal Revenue Code of 1986, if
86-37 the organization makes payments of death benefits as a
86-38 result of the death of a member of the organization, and
86-39 if payments have been made by the organization for at
86-40 least five years prior to January 1, 1977, the payments
86-41 shall be deductible from the unrelated business income
86-42 tax which might be owed by the organization. The payment
86-43 of such death benefits shall not operate to generate a
86-44 rebate or a refund. If the amount of death benefits paid
-86-
87- 1 within the taxable year exceeds the unrelated business
87- 2 income tax owed for the same taxable year, the excess
87- 3 may be carried forward for a period of five years.
87- 4 48-7-32.
87- 5 (a) When the commissioner has reason to believe that any
87- 6 taxpayer conducts his or her trade or business so as to
87- 7 distort directly or indirectly the taxpayer's true net
87- 8 income or the net income properly attributable to this
87- 9 state, whether by the arbitrary shifting of income,
87-10 through price fixing, charges for service, or otherwise,
87-11 as a result of which the net income is arbitrarily
87-12 assigned to one or another unit in a group of taxpayers
87-13 conducting business under a substantially common control,
87-14 the commissioner may require the facts as the commissioner
87-15 deems necessary for the proper computation of the entire
87-16 net income and the net income properly attributable to
87-17 this state. In determining the computation, the
87-18 commissioner shall consider the fair profit which would
87-19 normally arise from the conduct of the trade or business.
87-20 (b)(1) The commissioner may determine the amount of
87-21 taxable income of any one or more corporations for a
87-22 calendar or fiscal year when a corporation:
87-23 (A) Subject to taxation under this chapter conducts
87-24 its business in such manner as to benefit either
87-25 directly or indirectly the members or stockholders of
87-26 the corporation or any person interested in the
87-27 business of the corporation by selling its products or
87-28 the goods or commodities in which it deals at less
87-29 than the fair price which might be obtained for the
87-30 goods or commodities;
87-31 (B) A substantial portion of whose capital stock is
87-32 directly or indirectly owned by another corporation
87-33 acquires and disposes of the products of the
87-34 corporation so owning a substantial portion of its
87-35 stock in such a manner as to create a loss or improper
87-36 net income for either of the corporations; or
87-37 (C) Directly or indirectly owning a substantial
87-38 portion of the stock of another corporation acquires
87-39 and disposes of the products of the corporation of
87-40 which it so owns a substantial portion of the stock in
87-41 such a manner as to create a loss or improper net
87-42 income for either of the corporations.
-87-
88- 1 (2) In the commissioner's determination, the
88- 2 commissioner shall consider the reasonable profits
88- 3 which, but for the arrangement or understanding, might
88- 4 or could have been obtained by the corporation or
88- 5 corporations subject to taxation under this chapter from
88- 6 dealing in such products, goods, or commodities.
88- 7 48-7-33.
88- 8 Whenever in the opinion of the commissioner it is
88- 9 necessary to examine any copy of the federal income tax
88-10 returns of any taxpayer in order to audit properly the
88-11 state returns of the taxpayer, the commissioner shall have
88-12 the right to examine the federal returns and all
88-13 statements, inventories, and schedules in support of the
88-14 returns.
88-15 48-7-34.
88-16 (a) Except in accordance with proper judicial order or as
88-17 otherwise provided by law, it is unlawful for the
88-18 commissioner, other officer, employee, or agent, or any
88-19 former officer, employee, or agent to divulge or make
88-20 known in any manner the amount of income or any
88-21 particulars set forth or disclosed in any report or return
88-22 required under the law of this state or any return or
88-23 return information required by the Internal Revenue Code
88-24 when the information or return is received from the
88-25 Internal Revenue Service or submitted by the taxpayer as
88-26 provided by the laws of this state. Nothing contained in
88-27 this Code section shall be construed to prohibit the
88-28 publication of statistics so presented as to prevent the
88-29 identification of particular reports or returns and the
88-30 items thereof, or the inspection by the Attorney General
88-31 or other legal representative of the state, or use as
88-32 evidence, of the report or return of a taxpayer in the
88-33 event of any action or proceeding involving any tax
88-34 liability of the taxpayer. Reports and returns shall be
88-35 preserved for three years and thereafter until the
88-36 commissioner orders them to be destroyed.
88-37 (b) The commissioner may permit the commissioner of
88-38 internal revenue of the United States, the proper officer
88-39 of any state imposing an income tax similar to that
88-40 imposed by this chapter, or the authorized representative
88-41 of either such officer to inspect the income tax returns
88-42 of any taxpayer, or may furnish to the officer or the
88-43 officer's authorized representative an abstract of the
-88-
89- 1 return of income of any taxpayer or supply the officer or
89- 2 the officer's authorized representative with information
89- 3 concerning any item of income contained in any return or
89- 4 disclosed by the report of any investigation of the income
89- 5 or return of income of any taxpayer. The permission shall
89- 6 be granted or the information shall be furnished to the
89- 7 officer or the officer's representative only if:
89- 8 (1) The request is only for state tax information
89- 9 including federal tax information required by the state
89-10 to be filed by the taxpayer with the taxpayer's state
89-11 return;
89-12 (2) The requested information will be used solely for
89-13 tax purposes;
89-14 (3) The requesting state has a confidentiality statute
89-15 which complies with the requirements of Section
89-16 6103(p)(8) of the Internal Revenue Code; and
89-17 (4) The statutes of the United States or of such other
89-18 state, as the case may be, grant substantially similar
89-19 privileges to the proper officer of this state charged
89-20 with the administration of this chapter.
89-21 (c) The commissioner may permit the disclosure of
89-22 inventories, depreciable assets, accumulated depreciation,
89-23 and book value of depreciable assets to local tax
89-24 authorities in this state to be used solely for ad valorem
89-25 tax purposes, provided that the furnishing of the
89-26 information is not prohibited by Section 6103 of the
89-27 Internal Revenue Code; and provided, further, that the
89-28 furnishing of the information to the local tax authorities
89-29 shall not be deemed to change the confidential character
89-30 of the information, and any persons receiving the
89-31 information pursuant to this subsection shall be subject
89-32 to Code Section 48-7-35, relating to the sanctions to be
89-33 imposed for the unauthorized disclosure of confidential
89-34 material.
89-35 (d) This Code section shall not be construed to prohibit
89-36 persons or groups of persons other than employees of the
89-37 department from having access to tax information where
89-38 necessary for data processing operations and maintenance
89-39 of data processing equipment, provided the persons or
89-40 groups of persons have obtained prior approval from the
89-41 commissioner and are subject to the direct security
89-42 control of department personnel during all periods of
89-43 access. Any person who divulges or makes known any tax
-89-
90- 1 information obtained under this subsection shall be
90- 2 subject to the same civil and criminal penalties as those
90- 3 provided for divulgence of information by employees of the
90- 4 department.
90- 5 (e) Notwithstanding any other law, this Code section shall
90- 6 remain in full force and effect unless specific reference
90- 7 is made in such other law to this Code section and to the
90- 8 disclosure of income tax information contained in any
90- 9 report or return required under this Code section.
90-10 48-7-35.
90-11 (a) It shall be unlawful for any person to violate any
90-12 provision of Code Section 48-7-34 when the violation
90-13 involves the divulging of information concerning income
90-14 taxes.
90-15 (b) Any person who violates subsection (a) of this Code
90-16 section shall be guilty of a misdemeanor.
90-17 (c) In addition to the penalty provided in subsection (b)
90-18 of this Code section, if the offender is an officer or
90-19 employee of the state, the offender shall be dismissed
90-20 from office and shall be incapable of holding any public
90-21 office in this state for a period of five years after such
90-22 dismissal.
90-23 48-7-36.
90-24 The total amount of tax imposed by this chapter on
90-25 corporations shall be paid to the commissioner on or
90-26 before March 15, following the close of the calendar year.
90-27 If the return of a corporation is made on the basis of a
90-28 fiscal year, the tax shall be paid to the commissioner on
90-29 or before the fifteenth day of the third month following
90-30 the close of the fiscal year.
90-31 48-7-37.
90-32 (a) If any amount of tax imposed by this chapter is not
90-33 paid on or before the last date prescribed for payment,
90-34 interest on the payment at the rate specified in Code
90-35 Section 48-2-40 shall be paid for the period from the last
90-36 date prescribed for payment to the date paid.
90-37 (b) The last date prescribed for payment of the tax shall
90-38 be determined without regard to any:
90-39 (1) Extension of time for payment; or
-90-
91- 1 (2) Notice and demand for payment issued by reason of
91- 2 jeopardy prior to the last date otherwise prescribed for
91- 3 the payment.
91- 4 (c) If the amount of any tax imposed by this chapter is
91- 5 reduced by reason of a carry back of a net operating loss,
91- 6 the reduction in tax shall not affect the computation of
91- 7 interest under this Code section for the period ending
91- 8 with the last day of the taxable year in which the net
91- 9 operating loss arises.
91-10 (d) Except as otherwise specifically provided by law:
91-11 (1) Interest prescribed under this Code section shall be
91-12 paid upon notice and demand and shall be assessed,
91-13 collected, and paid in the same manner as the tax. Any
91-14 reference to the tax imposed by this chapter shall be
91-15 deemed also to refer to interest imposed by this Code
91-16 section on the tax;
91-17 (2) No interest under this Code section shall be imposed
91-18 on the interest provided by this Code section;
91-19 (3) Interest shall be imposed under subsection (a) of
91-20 this Code section on any assessable penalty, additional
91-21 amount, or addition to the tax only if the assessable
91-22 penalty, additional amount, or addition to the tax is
91-23 not paid within ten days from the date of notice and
91-24 demand for the payment. Interest shall be imposed only
91-25 for the period from the date of the notice and demand to
91-26 the date of payment; and
91-27 (4) If notice and demand are made for the payment of any
91-28 amount and if the amount is paid within ten days after
91-29 the date of the notice and demand, interest under this
91-30 Code section on the amount so paid shall not be imposed
91-31 for the period after the date of the notice and demand.
91-32 (e) Interest prescribed under this Code section may be
91-33 assessed and collected at any time during the period
91-34 within which the tax to which the interest relates may be
91-35 collected.
91-36 48-7-38.
91-37 (a) Except as otherwise provided in this Code section, the
91-38 amount of income tax imposed by this chapter shall be
91-39 assessed within the time periods specified in Code Section
91-40 48-2-49.
-91-
92- 1 (b)(1) In the case of income received by a corporation,
92- 2 the tax shall be assessed within three years after the
92- 3 return is filed, and any proceeding in court without
92- 4 assessment for the collection of the tax shall begin
92- 5 within 18 months after written request for the
92- 6 commencement of the proceeding (filed after the return
92- 7 is made) by the corporation. No such proceeding shall
92- 8 begin after the expiration of three years from the date
92- 9 the return is filed. This paragraph shall not apply in
92-10 the case of a corporation unless:
92-11 (A) The written request notifies the commissioner that
92-12 the corporation contemplates dissolution at or before
92-13 the expiration of the 18 month period;
92-14 (B) The dissolution is begun in good faith before the
92-15 expiration of the 18 month period; and
92-16 (C) The dissolution is completed.
92-17 (2) If the taxpayer omits from gross income an amount
92-18 properly includable in gross income which exceeds 25
92-19 percent of the amount of gross income less business
92-20 expenses stated in the return, the tax may be assessed
92-21 or a proceeding in court for the collection of the tax
92-22 may begin without assessment at any time within six
92-23 years after the return is filed.
92-24 (3) If the taxpayer omits from gross income an amount
92-25 properly includable in gross income as an amount
92-26 distributed in liquidation of a corporation, the tax may
92-27 be assessed or a proceeding in court for the collection
92-28 of the tax may begin without assessment at any time
92-29 within five years after the return is filed.
92-30 (c) When the assessment of any income tax has been made
92-31 within the period of limitation properly applicable to the
92-32 assessment, the tax may be collected by execution,
92-33 provided that the commissioner may transmit such execution
92-34 electronically. The general provisions for tax executions
92-35 as contained in Chapter 3 of this title shall apply to
92-36 executions pursuant to this subsection.
92-37 (d)(1) When a taxpayer's amount of net income for any
92-38 year under this chapter as returned to the United States
92-39 Department of the Treasury is changed or corrected by
92-40 the commissioner of internal revenue or other officer of
92-41 the United States of competent authority, the taxpayer,
92-42 within 180 days after final determination of the changed
-92-
93- 1 or corrected net income, shall make a return to the
93- 2 commissioner of the changed or corrected income, and the
93- 3 commissioner shall make assessment or the taxpayer shall
93- 4 claim a refund based on the change or correction within
93- 5 one year from the date the return required by this
93- 6 paragraph is filed. If the taxpayer does not make the
93- 7 return reflecting the changed or corrected net income
93- 8 and the commissioner receives from the United States
93- 9 government or one of its agents a report reflecting the
93-10 changed or corrected net income, the commissioner shall
93-11 make assessment for taxes due based on the change or
93-12 correction within five years from the date the report
93-13 from the United States government or its agent is
93-14 actually received.
93-15 (2) In the event the taxpayer fails to notify the
93-16 commissioner of the final determination of the
93-17 taxpayer's United States income taxes, the commissioner
93-18 shall proceed to determine, upon evidence brought to the
93-19 commissioner's attention or otherwise acquired, the
93-20 corrected income of the taxpayer for the fiscal or
93-21 calendar year. If additional tax is determined to be
93-22 due, the tax shall be assessed and collected. If it is
93-23 determined that there has been an overpayment of tax for
93-24 the year, the taxpayer, by the failure to notify the
93-25 commissioner as required in paragraph (1) of this
93-26 subsection, shall forfeit the taxpayer's right to any
93-27 refund due by reason of the change or correction. A
93-28 taxpayer who so fails to notify the commissioner,
93-29 however, shall be entitled to equitable recoupment of 90
93-30 percent of any overpayment so determined against any
93-31 additional tax liability so determined, the remaining 10
93-32 percent of the overpayment being totally forfeited as a
93-33 penalty for failure to make a return as required by
93-34 paragraph (1) of this subsection.
93-35 48-7-39.
93-36 Whenever any corporation has been dissolved or the assets
93-37 of the corporation for any reason have passed entirely
93-38 from the control of the corporation into the possession of
93-39 its former stockholders or other persons without the
93-40 payment of income taxes due the state, the commissioner
93-41 shall have the right to bring action against any or all
93-42 persons possessing the assets for the collection of any
93-43 income taxes that may be due the state up to the value of
93-44 the assets. If the assets have come into the possession of
-93-
94- 1 more than one person, each person shall have the right to
94- 2 prorate the amount of the tax according to the value of
94- 3 the assets coming into each person's possession.
94- 4 48-7-40.
94- 5 No action for the purpose of restraining the assessment or
94- 6 collection of any tax under this chapter shall be
94- 7 maintained in any court.
94- 8 48-7-41.
94- 9 Whenever the commissioner in the commissioner's discretion
94-10 determines that a person is not liable for the tax for an
94-11 entire year because of moving into the state or moving out
94-12 of the state, the commissioner may prorate the amount of
94-13 the tax due the state and also may require the taxpayer to
94-14 prorate any exemptions on the basis of the time spent
94-15 within the state. The commissioner in the commissioner's
94-16 reasonable discretion shall be the sole judge as to when
94-17 this Code section shall apply.
94-18 48-7-42.
94-19 (a)(1) In case of failure to pay:
94-20 (A) The amount shown as tax on a return on or before
94-21 the date prescribed for payment of the tax, such date
94-22 to be determined with regard to any extension of time
94-23 for payment, there shall be added to the amount of tax
94-24 required to be shown on the return one-half of 1
94-25 percent of the amount of the tax if the failure is for
94-26 not more than one month and with an additional
94-27 one-half of 1 percent for each additional month or
94-28 fraction of a month during which the failure
94-29 continues. For the purposes of this subparagraph, the
94-30 amount of tax shown on the return shall be reduced,
94-31 for the purpose of computing the addition for any
94-32 month, by the amount of any part of the tax which is
94-33 paid on or before the beginning of the month and by
94-34 the amount of any credit against the tax which is
94-35 claimed on the return;
94-36 (B) Any amount in respect of any tax required to be
94-37 shown on a return which is not so shown within ten
94-38 days of the date of the notice and demand for the
94-39 payment, the amount of tax stated in the notice and
94-40 demand shall be increased by one-half of 1 percent of
94-41 the amount of the tax if the failure is for not more
94-42 than one month and by an additional one-half of 1
-94-
95- 1 percent for each additional month or fraction of a
95- 2 month during which the failure continues. For the
95- 3 purposes of this subparagraph, the amount of tax
95- 4 stated in the notice and demand shall be reduced, for
95- 5 the purpose of computing the addition for any month,
95- 6 by the amount of any part of the tax which is paid
95- 7 before the beginning of the month.
95- 8 (2) No penalty shall be assessed pursuant to this
95- 9 subsection which exceeds in the aggregate 25 percent of
95-10 the amount of the tax or when it is shown that the
95-11 failure is due to reasonable cause and not due to
95-12 willful neglect.
95-13 (b) With respect to any return, the maximum amount of the
95-14 addition permitted under subparagraph (a)(1)(B) of this
95-15 Code section shall be reduced by the amount of the
95-16 addition under subsection (c) of Code Section 48-7-30
95-17 which is attributable to the tax for which the notice and
95-18 demand are made and which is not paid within ten days of
95-19 such notice and demand.
95-20 (c) If the amount required to be shown as tax on a return
95-21 is less than the amount shown as tax on the return,
95-22 subparagraph (a)(1)(A) of this Code section shall be
95-23 applied by substituting the lower amount.
95-24 (d) For purposes of subsections (e) and (f) of this Code
95-25 section, the term 'underpayment' means a deficiency as
95-26 defined in Code Section 48-7-2.
95-27 (e) If any part of any underpayment of tax required to be
95-28 shown on a return is due to a negligent or intentional
95-29 disregard of rules and regulations, but without intent to
95-30 defraud, an amount equal to 5 percent of the underpayment
95-31 shall be added to the tax.
95-32 (f) If any part of any underpayment of tax required to be
95-33 shown on a return is due to fraud, an amount equal to 50
95-34 percent of the underpayment shall be added to the tax.
95-35 This amount shall be in lieu of any amount determined
95-36 under subsection (e) of this Code section. If any penalty
95-37 is assessed under this subsection for an underpayment of
95-38 tax which is required to be shown on a return, no penalty
95-39 under Code Section 48-7-30 or subsection (a) of this Code
95-40 section shall be assessed with respect to the same
95-41 underpayment.
-95-
96- 1 48-7-43.
96- 2 (a) As used in this Code section, the term 'estimated tax'
96- 3 means the amount which the corporation estimates as the
96- 4 amount of income tax imposed by Code Section 48-7-7 less
96- 5 the amount which the corporation estimates as the sum of
96- 6 credits allowable by law against the tax.
96- 7 (b) In general, every domestic and foreign corporation
96- 8 subject to taxation under Code Section 48-7-7 shall pay
96- 9 estimated tax for the taxable year if its net income for
96-10 the taxable year as defined in Code Section 48-7-9 can
96-11 reasonably be expected to exceed $25,000.00.
96-12 48-7-44.
96-13 If the requirements of Code Section 48-7-43 are first met
96-14 as shown in the left-hand column of the following table,
96-15 then the estimated tax shall be due as shown in the
96-16 remaining columns:
96-17 Before the first day of
96-18 the fourth month of the
96-19 taxable year 25 25 25 25
96-20 After the last day of
96-21 the third month and
96-22 before the first day of
96-23 the sixth month of the
96-24 taxable year 33 1/3 33 1/3 33 1/3
96-25 After the last day of
96-26 the fifth month and
96-27 before the first day of
96-28 the ninth month of the
96-29 taxable year 50 50
-96-
97- 1 After the last day of
97- 2 the eighth month and
97- 3 before the first day of
97- 4 the twelfth month of
97- 5 the taxable year 100
97- 6 48-7-45.
97- 7 (a) The amount of estimated tax paid under this chapter
97- 8 for any taxable year shall be allowed as a credit to the
97- 9 taxpayer against the taxpayer's income tax liability under
97-10 Code Section 48-7-7 for the taxable year.
97-11 (b) To the extent that the estimated tax credit, together
97-12 with other credits allowed by law, is in excess of the
97-13 taxpayer's income tax liability for a taxable year as
97-14 shown on an income tax return filed by the taxpayer for
97-15 that year, the overpayment shall be considered as taxes
97-16 erroneously paid and shall be credited or refunded as
97-17 provided in this subsection. The overpayment shall be
97-18 credited to the taxpayer's estimated income tax liability
97-19 for the succeeding taxable year unless the taxpayer claims
97-20 a refund for the overpayment. The commissioner may
97-21 consider any final return showing an overpayment as a
97-22 claim for refund per se. An overpayment shall bear no
97-23 interest if credit is given for the overpayment. Amounts
97-24 refunded as overpayments shall bear interest at the rate
97-25 of 9 percent per annum but only after 90 days from the
97-26 filing date of the final return showing the overpayment or
97-27 90 days from the due date of the final return, whichever
97-28 is later.
97-29 48-7-46.
97-30 The commissioner may disregard a fractional part of a
97-31 dollar in the allowance of any amount as a credit or
97-32 refund or in the assessment or collection of any amount as
97-33 a deficiency or underpayment.
97-34 48-7-47.
97-35 In the administration and enforcement of this chapter with
97-36 respect to a taxpayer whose income may be subject to the
97-37 current income tax payment laws of two or more tax
97-38 jurisdictions, including this state, the commissioner may
97-39 make reciprocal arrangements with the tax authorities of
97-40 the other jurisdictions for the relief of the taxpayer
97-41 from the multiple burden imposed by the operation of
97-42 several current income tax payment laws."
-97-
98- 1 SECTION 1.
98- 2 Code Section 2-7-154 of the Official Code of Georgia
98- 3 Annotated, relating to the powers of the Commissioner of
98- 4 Agriculture with respect to boll weevil eradication, is
98- 5 amended by striking in its entirety subparagraph (A) of
98- 6 paragraph (8) and inserting in lieu thereof a new
98- 7 subparagraph (A) to read as follows:
98- 8 "(A) The Commissioner shall adopt rules and
98- 9 regulations defining the criteria to be used in
98-10 determining financial hardship; provided, however,
98-11 that no exemption shall be granted to any cotton
98-12 grower who, after the amount of assessments and
98-13 penalties otherwise due has been subtracted from his
98-14 or her federal taxable net income, as defined in Code
98-15 Section 48-7-27 the United States Internal Revenue
98-16 Code of 1986, has a net income exceeding $15,000.00
98-17 for the year in which he or she seeks an exemption;".
98-18 SECTION 2.
98-19 Chapter 3 of Title 12 of the Official Code of Georgia
98-20 Annotated, relating to parks, historic areas, memorials, and
98-21 recreation, is amended by striking in its entirety Article
98-22 8, relating to nongame wildlife conservation and wildlife
98-23 habitat acquisition programs, and inserting in lieu thereof
98-24 the following:
98-25 12-3-600 through 12-3-602.
98-26 Reserved."
98-27 SECTION 3.
98-28 Code Section 16-12-22.1 of the Official Code of Georgia
98-29 Annotated, relating to raffles operated by nonprofit,
98-30 tax-exempt organizations, is amended by striking subsection
98-31 (f) and inserting in its place a new subsection (f) to read
98-32 as follows:
98-33 "(f) The sheriff shall, upon the request of any
98-34 prosecuting attorney or such prosecuting attorney's
98-35 designee, certify the status of any organization as to
98-36 that organization's exemption from payment of state income
98-37 taxes as a nonprofit organization. The sheriff shall also
98-38 upon request issue a certificate indicating whether any
-98-
99- 1 particular organization holds a currently valid license to
99- 2 operate a raffle. Such certificates properly executed
99- 3 shall be admissible in evidence in any prosecution, and
99- 4 Code Section 48-7-60 48-7-34, relative to the disclosure
99- 5 of income tax information, shall not apply to the
99- 6 furnishing of such certificate."
99- 7 SECTION 4.
99- 8 Part 2 of Article 2 of Chapter 12 of Title 16 of the
99- 9 Official Code of Georgia Annotated, relating to bingo, is
99-10 amended by striking in its entirety Code Section 16-12-55,
99-11 relating to certification of tax exempt status of an
99-12 organization, and inserting in lieu thereof a new Code
99-13 Section 16-12-55 to read as follows:
99-14 "16-12-55.
99-15 The director shall upon the request of any prosecuting
99-16 attorney or his or her designee certify the status of any
99-17 organization as to that organization's exemption from
99-18 payment of state income taxes as a nonprofit organization.
99-19 The director shall also upon request issue a certificate
99-20 indicating whether any particular organization holds a
99-21 currently valid license to operate a bingo game. Such
99-22 certificates properly executed shall be admissible in
99-23 evidence in any prosecution and Code Section 48-7-60
99-24 48-7-34, relative to the disclosure of income tax
99-25 information, shall not apply to the furnishing of such
99-26 certificate."
99-27 SECTION 5.
99-28 Chapter 15 of Title 17 of the Official Code of Georgia
99-29 Annotated, relating to victim compensation, is amended by
99-30 striking in its entirety Code Section 17-15-8, relating to
99-31 required findings and amount of award, and inserting in lieu
99-32 thereof a new Code Section 17-15-8 to read as follows:
99-33 "17-15-8.
99-34 (a) No award may be made unless the board or director
99-35 finds that:
99-36 (1) A crime was committed;
99-37 (2) The crime directly resulted in the victim's physical
99-38 injury, financial hardship as a result of the victim's
99-39 physical injury, or the victim's death;
-99-
100- 1 (3) Police records show that the crime was promptly
100- 2 reported to the proper authorities. In no case may an
100- 3 award be made where the police records show that such
100- 4 report was made more than 72 hours after the occurrence
100- 5 of such crime unless the board, for good cause shown,
100- 6 finds the delay to have been justified; and
100- 7 (4) The applicant has pursued restitution rights against
100- 8 any person who committed the crime unless the board or
100- 9 director determines that such action would not be
100-10 feasible.
100-11 The board, upon finding that any claimant or award
100-12 recipient has not fully cooperated with all law
100-13 enforcement agencies, may deny, reduce, or withdraw any
100-14 award.
100-15 (b) Any award made pursuant to this chapter may be in an
100-16 amount not exceeding actual expenses, including
100-17 indebtedness reasonably incurred for medical expenses,
100-18 loss of wages, funeral expenses, mental health counseling,
100-19 or support for dependents of a deceased victim necessary
100-20 as a direct result of the injury or hardship upon which
100-21 the claim is based.
100-22 (c)(1) Notwithstanding any other provisions of this
100-23 chapter, no award made under the provisions of this
100-24 chapter shall exceed $1,000.00 in the aggregate;
100-25 provided, however, with respect to any claim filed with
100-26 the board as a result of a crime occurring on or after
100-27 July 1, 1994, no award made under the provisions of this
100-28 chapter payable to a victim and to all other claimants
100-29 sustaining economic loss because of injury to or death
100-30 of such victim shall exceed $5,000.00 in the aggregate;
100-31 provided, however, with respect to any claim filed with
100-32 the board as a result of a crime occurring on or after
100-33 July 1, 1995, no award made under the provisions of this
100-34 chapter payable to a victim and to all other claimants
100-35 sustaining economic loss because of injury to or death
100-36 of such victim shall exceed $10,000.00 in the aggregate.
100-37 (2) No award under this chapter for the following losses
100-38 shall exceed the maximum amount authorized:
-100-
101- 1 Category Maximum Award
101- 2 Lost Wages $ 5,000.00
101- 3 Funeral Expenses 3,000.00
101- 4 Financial Hardship or Loss of Support 5,000.00
101- 5 Medical 5,000.00
101- 6 Counseling 2,500.00
101- 7 (d) In determining the amount of an award, the director
101- 8 and board shall determine whether because of his or her
101- 9 conduct the victim of such crime contributed to the
101-10 infliction of his or her injury or financial hardship, and
101-11 the director and board may reduce the amount of the award
101-12 or reject the claim altogether in accordance with such
101-13 determination.
101-14 (e) The director and board may reject an application for
101-15 an award when the claimant has failed to cooperate in the
101-16 verification of the information contained in the
101-17 application.
101-18 (f) Any award made pursuant to this chapter may be reduced
101-19 by or set off by the amount of any payments received or to
101-20 be received as a result of the injury:
101-21 (1) From or on behalf of the person who committed the
101-22 crime; or
101-23 (2) From any other private or public source, including
101-24 an award of workers' compensation pursuant to the laws
101-25 of this state,
101-26 provided that private sources shall not include
101-27 contributions received from family members or persons or
101-28 private organizations making charitable donations to a
101-29 victim.
101-30 (g) No award made pursuant to this chapter is subject to
101-31 garnishment, execution, or attachment other than for
101-32 expenses resulting from the injury which is the basis for
101-33 the claim. (h) An award made pursuant to this chapter shall not
101-35 constitute a payment which is treated as ordinary income
101-36 under either the provisions of Chapter 7 of Title 48 or,
101-37 to the extent lawful, under the United States Internal
101-38 Revenue Code.
101-39 (i)(h) Notwithstanding any other provisions of this
101-40 chapter to the contrary, no awards from state funds shall
101-41 be paid prior to July 1, 1989.
-101-
102- 1 (j)(i) In any case where a crime results in death, the
102- 2 spouse, children, parents, or siblings of such deceased
102- 3 victim may be considered eligible for an award for the
102- 4 cost of psychological counseling which is deemed necessary
102- 5 as a direct result of said criminal incident. The maximum
102- 6 award for said counseling expenses shall not exceed
102- 7 $2,500.00 in the aggregate."
102- 8 SECTION 6.
102- 9 Code Section 19-11-9 of the Official Code of Georgia
102-10 Annotated, relating to the location of absent parents by the
102-11 Department of Human Resources, is amended by striking
102-12 subsection (c) in its entirety and inserting in lieu thereof
102-13 a new subsection (c) to read as follows:
102-14 "(c) In order to carry out the responsibilities imposed
102-15 under this article, the department may request information
102-16 and assistance from any governmental department, board,
102-17 commission, bureau, or agency in locating the absent
102-18 parents of children for whom the department has assignment
102-19 of child support rights. The commissioner of human
102-20 resources or his or her duly authorized representative
102-21 shall be entitled to have access to all pertinent
102-22 information which is within the custody of any
102-23 governmental department, board, commission, bureau, or
102-24 agency including, but not limited to, income tax
102-25 information contained in any report or return required
102-26 under Articles 1 through 6 of Chapter 7 of Title 48 by the
102-27 Department of Revenue, including information from federal
102-28 income tax returns required to be included as a part of
102-29 any state report or return, which information but for this
102-30 Code section would not be subject to disclosure pursuant
102-31 to Code Section 48-7-60 and which is relative to such
102-32 parents' location, income, or property, provided that any
102-33 tax information secured from the federal government by the
102-34 Department of Revenue, pursuant to the express provisions
102-35 of Section 6103 of the Internal Revenue Code, may not be
102-36 disclosed by that department pursuant to this subsection.
102-37 Any person receiving any tax information or tax returns
102-38 under the authority granted in this subsection shall be
102-39 considered either an officer or employee as those terms
102-40 are used in subsection (a) of Code Section 48-7-60; and,
102-41 as such an officer or employee, any person receiving any
102-42 tax information or returns under the authority of this
102-43 Code section shall be subject to Code Section 48-7-61,
-102-
103- 1 relating to the sanctions to be imposed for the
103- 2 unauthorized disclosure of confidential material."
103- 3 SECTION 7.
103- 4 Chapter 4 of Title 22 of the Official Code of Georgia
103- 5 Annotated, relating to relocation assistance, is amended by
103- 6 striking Code Section 22-4-13, relating to status of
103- 7 relocation assistance payments, and inserting in its place a
103- 8 new Code Section 22-4-13 to read as follows:
103- 9 "22-4-13.
103-10 No payment received by a displaced person under this
103-11 chapter shall be considered as income or resources for the
103-12 purpose of determining the eligibility or extent of
103-13 eligibility of any person for assistance under any state
103-14 law or for the purposes of the state's personal income tax
103-15 law, corporation tax law, or other tax laws. These
103-16 payments shall not be considered as income or resources of
103-17 any recipient of public assistance, and the payment shall
103-18 not be deducted from the amount of aid to which the
103-19 recipient would otherwise be entitled."
103-20 SECTION 8.
103-21 Code Section 26-2-21 of the Official Code of Georgia
103-22 Annotated, relating to definitions regarding adulteration
103-23 and misbranding of food, is amended by striking subparagraph
103-24 (A) of paragraph (5) and inserting in its place a new
103-25 subparagraph (A) to read as follows:
103-26 "(A) Is sponsored by a political subdivision of this
103-27 state or by an organization exempt from taxes under
103-28 paragraph (1) of subsection (a) of Code Section
103-29 48-7-25 48-7-31 or under Section 501(d) or paragraphs
103-30 (1) through (8) or paragraph (10) of Section 501(c) of
103-31 the Internal Revenue Code, as that code is defined in
103-32 Code Section 48-1-2;".
103-33 SECTION 9.
103-34 Code Section 26-2-370 of the Official Code of Georgia
103-35 Annotated, relating to definitions regarding food service
103-36 establishments, is amended by striking subparagraph (A) of
103-37 paragraph (1) and inserting in its place a new subparagraph
103-38 (A) to read as follows:
103-39 "(A) Is sponsored by a political subdivision of this
103-40 state or by an organization exempt from taxes under
103-41 paragraph (1) of subsection (a) of Code Section
-103-
104- 1 48-7-25 48-7-31 or under Section 501(d) or paragraphs
104- 2 (1) through (8) or paragraph (10) of Section 501(c) of
104- 3 the Internal Revenue Code, as that code is defined in
104- 4 Code Section 48-1-2;".
104- 5 SECTION 10.
104- 6 Code Section 26-2-390 of the Official Code of Georgia
104- 7 Annotated, relating to definitions regarding nonprofit food
104- 8 sales and food service, is amended by striking paragraph (2)
104- 9 and inserting in its place a new paragraph (2) to read as
104-10 follows:
104-11 "(2) 'Organization' means an organization exempt from
104-12 taxes under paragraph (1) of subsection (a) of Code
104-13 Section 48-7-25 48-7-31 or under Section 501(d) or
104-14 paragraphs (1) through (8) or paragraph (10) of Section
104-15 501(c) of the Internal Revenue Code, as that code is
104-16 defined in Code Section 48-1-2."
104-17 SECTION 11.
104-18 Code Section 36-62-5.1 of the Official Code of Georgia
104-19 Annotated, relating to joint development authorities, is
104-20 amended by striking subsection (e) in its entirety and
104-21 inserting in lieu thereof a new subsection (e) to read as
104-22 follows:
104-23 "(e) A joint authority created by two or more contiguous
104-24 counties pursuant to this Code section must be an active,
104-25 bona fide joint authority; must have a board of directors;
104-26 must meet at least quarterly; and must develop an
104-27 operational business plan. A county may belong to only
104-28 one such joint authority. A business enterprise as
104-29 defined under subsection (a) of Code Section 48-7-40
104-30 48-7-15 located within the jurisdiction of a joint
104-31 authority established by two or more contiguous counties
104-32 will qualify for an additional $500.00 tax credit for each
104-33 new full-time employee position created. The $500.00 job
104-34 tax credit authorized by this subsection shall be subject
104-35 to all the conditions and limitations specified under Code
104-36 Section 48-7-40 48-7-15, as amended."
104-37 SECTION 12.
104-38 Chapter 9 of Title 37 of the Official Code of Georgia
104-39 Annotated, relating to payment of expenses for support,
104-40 treatment, and care of patients in state institutions
104-41 generally, is amended by striking in its entirety paragraph
104-42 (3) of Code Section 37-9-2, relating to definitions
-104-
105- 1 applicable under said chapter, and inserting in lieu thereof
105- 2 a new paragraph (3) to read as follows:
105- 3 "(3) 'Income' 'Income,' except for patients who are
105- 4 residents of other states, means that amount determined
105- 5 by adding to the gross federal taxable income as now or
105- 6 hereafter defined in the United States Internal Revenue
105- 7 Code of 1986 Georgia income tax laws, minus deductions
105- 8 and personal exemptions as authorized by such income tax
105- 9 laws, the items listed in this paragraph, if such items
105-10 are not already included in gross federal taxable income
105-11 as defined above. For a patient who is a resident of
105-12 another state, 'income' means the same as above except
105-13 no deductions will be made for any deductions or
105-14 personal exemptions as authorized by Georgia income tax
105-15 laws. The following items are to be added,
105-16 respectively:
105-17 (A) Any amounts received by or on behalf of the person
105-18 liable for cost of care from accident insurance or
105-19 workers' compensation for total or partial incapacity
105-20 to work, plus the amount of any damages received by or
105-21 on behalf of the person liable for cost of care,
105-22 whether by suit or agreement, on account of such
105-23 injuries or sickness;
105-24 (B) The net income from property acquired by gift,
105-25 bequest, devise, or descent;
105-26 (C) Interest upon obligations of the United States
105-27 government or of this state or of a political
105-28 subdivision thereof;
105-29 (D) The net income from individual holdings of stock
105-30 in banks and trust companies incorporated under the
105-31 banking laws of this state or of the United States;
105-32 (E) Retirement income, social security benefits,
105-33 veterans' benefits, and any other benefits that could
105-34 be applied for the support of the patient; and
105-35 (F) The net income from any other assets, including
105-36 but not limited to personal property, real property,
105-37 or mixed property, and any other property or estate
105-38 wherever located and in whatever form, inclusive of
105-39 any assets sold or transferred within a period of 90
105-40 days prior to the date services were first rendered to
105-41 the patient by a hospital."
-105-
106- 1 SECTION 13.
106- 2 Chapter 9 of Title 37 of the Official Code of Georgia
106- 3 Annotated, relating to payment of expenses for support,
106- 4 treatment, and care of patients in state institutions
106- 5 generally, is amended by striking in its entirety
106- 6 subparagraph (F) of paragraph (5) of Code Section 37-9-2,
106- 7 relating to definitions applicable under said chapter, and
106- 8 inserting in lieu thereof a new subparagraph (F) to read as
106- 9 follows:
106-10 "(F) A stepparent or any other person residing with
106-11 and providing support of a patient under 18 years of
106-12 age who has not been legally adopted by such
106-13 individual, with maximum liability limited to the
106-14 amount such stepparent or other individual is
106-15 authorized by Georgia federal income tax laws under
106-16 the United States Internal Revenue Code of 1986 to
106-17 claim as a standard deduction and personal exemption
106-18 for the patient; provided, however, that this
106-19 limitation shall not apply to liability pursuant to
106-20 other provisions of this chapter regarding hospital,
106-21 health, and other medical insurance, program, or plan
106-22 benefits or subrogation rights."
106-23 SECTION 14.
106-24 Chapter 9 of Title 37 of the Official Code of Georgia
106-25 Annotated, relating to payment of expenses for support,
106-26 treatment, and care of patients in state institutions
106-27 generally, is amended by striking in its entirety Code
106-28 Section 37-9-7, relating to authority of the Department of
106-29 Human Resources to inquire into and determine income and
106-30 assets, and inserting in lieu thereof a new Code Section
106-31 37-9-7 to read as follows:
106-32 "37-9-7.
106-33 (a) The department, through its duly authorized agents,
106-34 shall have the authority to investigate or otherwise
106-35 determine the income and assets of the patient or his the
106-36 patient's estate and when necessary the income and assets
106-37 of all other persons liable for the cost of care of such
106-38 patient in order to determine ability to pay cost of care.
106-39 All persons liable for cost of care must provide signed
106-40 consent forms necessary to authorize and conduct an
106-41 investigation to determine the income and assets of such
106-42 persons in order to determine ability to pay cost of care.
106-43 The department shall further have the authority to
-106-
107- 1 contract with any person, firm, or corporation which it
107- 2 finds necessary to provide the information appropriate to
107- 3 the carrying out of its duties under this chapter.
107- 4 (b) The department shall require declarations to be filed
107- 5 by the patient or other persons liable for cost of care
107- 6 necessary to determine the assessments required by this
107- 7 chapter and shall prescribe the form and content thereof.
107- 8 All such declarations are to be regarded as essential to
107- 9 carrying out the public policy of this state; and any
107-10 person who knowingly falsifies such declarations shall be
107-11 charged as for false swearing. Failure by the patient or
107-12 other persons liable for cost of care to (1) provide
107-13 information required by such declarations or (2) provide
107-14 signature of consent for the department to conduct an
107-15 investigation authorized by subsection (a) of this Code
107-16 section shall create a rebuttable presumption that the
107-17 patient or other persons liable for cost of care consent
107-18 to and agree with the assessment of the full cost of care,
107-19 and the declaration shall contain on its face,
107-20 conspicuously and in clear language, a statement to that
107-21 effect. (c) The department, through its duly authorized agents,
107-23 shall have access to Georgia income tax records for the
107-24 purpose of obtaining necessary information to enforce this
107-25 chapter. Upon the request of the department or its duly
107-26 authorized agents, the state revenue commissioner and his
107-27 agents or employees shall disclose such income tax
107-28 information contained in any report or return required
107-29 under Georgia law as may be necessary to enforce the
107-30 provisions of this chapter. Any tax information secured
107-31 from the federal government by the Department of Revenue
107-32 pursuant to express provisions of Section 6103 of the
107-33 Internal Revenue Code may not be disclosed by the
107-34 Department of Revenue pursuant to this subsection. Any
107-35 person receiving any tax information or tax returns under
107-36 the authority of this subsection shall be considered
107-37 either an officer or employee as those terms are used in
107-38 subsection (a) of Code Section 48-7-60; and as such an
107-39 officer or employee, any person receiving any tax
107-40 information or returns under the authority of this
107-41 subsection shall be subject to Code Section 48-7-61.
107-42 (d)(c) Any evidence, records, or other information
107-43 obtained by the department or its duly authorized agents
107-44 pursuant to the authority of this Code section shall be
-107-
108- 1 confidential and shall be used by the department or its
108- 2 agents only for the purposes of enforcing this chapter and
108- 3 shall not be released for any purpose other than a hearing
108- 4 provided for by this chapter.
108- 5 (e)(d) The department shall develop procedures to ensure
108- 6 that persons with no other documentation or evidence may
108- 7 sign an affidavit attesting to their indigent financial
108- 8 status."
108- 9 SECTION 15.
108-10 Code Section 43-8A-21 of the Official Code of Georgia
108-11 Annotated, relating to powers and duties of the State Boxing
108-12 Commission, is amended by striking subsection (g) and
108-13 inserting in its place a new subsection (g) to read as
108-14 follows:
108-15 "(g) The commission shall be authorized to engage in
108-16 activities which promote amateur boxing in this state and
108-17 to contract with any nonprofit organization which is
108-18 exempted from the taxation of income pursuant to Code
108-19 Section 48-7-25 48-7-31 for the provision of services
108-20 related to the promotion of amateur boxing in this state."
108-21 SECTION 16.
108-22 Article 1 of Chapter 13 of Title 44 of the Official Code of
108-23 Georgia Annotated, relating to constitutional exemptions
108-24 from levy and sale of property, is amended by striking in
108-25 its entirety Code Section 44-13-1.1, relating to the
108-26 definition of the term "dependent," and inserting in lieu
108-27 thereof a new Code Section 44-13-1.1 to read as follows:
108-28 "44-13-1.1.
108-29 As used in this article, the term 'dependent' means a
108-30 person whom the debtor may claim as a dependent for
108-31 federal income tax purposes pursuant to Code Section
108-32 48-7-26 the United States Internal Revenue Code of 1986."
108-33 SECTION 17.
108-34 Article 1 of Chapter 13 of Title 44 of the Official Code of
108-35 Georgia Annotated, relating to constitutional exemptions
108-36 from levy and sale of property, is amended by striking in
108-37 its entirety Code Section 44-13-20, relating to reversion of
108-38 property set apart for spouse, children, or dependents, and
108-39 inserting in lieu thereof a new Code Section 44-13-20 to
108-40 read as follows:
-108-
109- 1 "44-13-20.
109- 2 Property set apart pursuant to Code Section 44-13-2 for a
109- 3 spouse, for a spouse and minor children, for minor
109- 4 children alone, or for dependents of a debtor (1) upon the
109- 5 death of the spouse or the spouse's remarriage, when set
109- 6 apart to the spouse alone, (2) upon the attaining of the
109- 7 age of majority by the minor children or their marriage
109- 8 during minority, when set apart for the minor children,
109- 9 (3) upon the death or remarriage of the spouse and the
109-10 attaining of the age of majority by the minor children or
109-11 the marriage of the minor children, when set apart to the
109-12 spouse and minor children, and (4) upon a former dependent
109-13 person's no longer being eligible to be claimed by the
109-14 debtor as a dependent for federal income tax purposes
109-15 pursuant to Code Section 48-7-26 the United States
109-16 Internal Revenue Code of 1986, shall revert to the estate
109-17 from which it was set apart unless it was sold or
109-18 reinvested pursuant to this article, in which case this
109-19 Code section shall apply to and follow all the
109-20 reinvestments unless the fee simple has been sold as
109-21 provided in this article."
109-22 SECTION 18.
109-23 Code Section 44-13-100 of the Official Code of Georgia
109-24 Annotated, relating to exemptions for purposes of bankruptcy
109-25 and intestate insolvent estates, is amended by striking
109-26 subparagraph (a)(2.1)(B) and inserting in its place a new
109-27 subparagraph (a)(2.1)(B) to read as follows:
109-28 "(B) Which is: (i) maintained by a nonprofit
109-29 corporation which is qualified as an exempt
109-30 organization under Code Section 48-7-25 48-7-31 for
109-31 its officers or employees or both; and (ii)
109-32 financially supported in whole or in part by funds of
109-33 the nonprofit corporation;".
109-34 SECTION 19.
109-35 Code Section 45-20-51 of the Official Code of Georgia
109-36 Annotated, relating to definitions regarding certain
109-37 voluntary deductions, is amended by striking subparagraph
109-38 (B) of paragraph (2) and inserting in its place a new
109-39 subparagraph (B) to read as follows:
109-40 "(B) Exempt from taxation under Code Section 48-7-25
109-41 48-7-31;".
-109-
110- 1 SECTION 20.
110- 2 Article 2 of Chapter 2 of Title 48 of the Official Code of
110- 3 Georgia Annotated, relating to the administration of the
110- 4 Department of Revenue and certain tax laws, is amended by
110- 5 striking in its entirety Code Section 48-2-56, relating to
110- 6 liens for taxes and their priority, and inserting in lieu
110- 7 thereof a new Code Section 48-2-56 to read as follows:
110- 8 "48-2-56.
110- 9 (a) Except as otherwise provided in this Code section,
110-10 liens for all taxes due the state or any county or
110-11 municipality in the state shall arise as of the time the
110-12 taxes become due and unpaid and all tax liens shall cover
110-13 all property in which the taxpayer has any interest from
110-14 the date the lien arises until such taxes are paid.
110-15 (b) Except as otherwise provided in this Code section,
110-16 liens for taxes are superior to all other liens and shall
110-17 be paid before any other debt, lien, or claim of any kind.
110-18 Liens for taxes shall rank among themselves as follows:
110-19 (1) Taxes due the state;
110-20 (2) Taxes due counties of the state;
110-21 (3) Taxes due school and other special tax districts of
110-22 the state; and
110-23 (4) Taxes due municipal corporations of the state.
110-24 (c) The lien for taxes imposed by Article 1 of Chapter 9
110-25 of this title, relating to motor fuel taxes, shall not
110-26 have priority as against:
110-27 (1) Any bona fide mortgagee, holder, or transferee of a
110-28 deed to secure debt; or
110-29 (2) Any pledgee, judgment creditor, or purchaser of or
110-30 from persons liable for the tax imposed by Article 1 of
110-31 Chapter 9 of this title
110-32 where the rights of such mortgagee, holder, or transferee
110-33 of a deed to secure debt, pledgee, judgment creditor, or
110-34 purchaser have attached prior to the time notice of the
110-35 lien has been filed by the commissioner in the office of
110-36 the superior court of the county in which the principal
110-37 place of business is located or in the county where
110-38 property of the person liable for payment of the motor
110-39 fuel tax is located.
-110-
111- 1 (d)(1) Liens for any ad valorem taxes shall cover the
111- 2 property of taxpayers liable to tax from the time fixed
111- 3 by law for valuation of the property in each year until
111- 4 such taxes are paid and shall cover the property of tax
111- 5 collectors or tax commissioners and their sureties from
111- 6 the time of giving bond until all the taxes for which
111- 7 they are responsible are paid.
111- 8 (2) The lien for any ad valorem tax shall not be
111- 9 superior to the title and operation of a security deed
111-10 when the tax represents an assessment upon property of
111-11 the taxpayer other than property specifically covered by
111-12 the title and operation of the security deed.
111-13 (3) When real property located within this state is
111-14 transferred between the date on which any ad valorem tax
111-15 lien on the property vests and the date on which the tax
111-16 evidenced by the tax lien becomes due and payable, the
111-17 ad valorem tax lien on the transferred property shall
111-18 not extend to cover any other real property of the
111-19 transferor.
111-20 (e) The lien for taxes imposed by the provisions of
111-21 Article 2 of Chapter 7 of this title, relating to certain
111-22 income taxes, shall:
111-23 (1) Arise and cover all property of the taxpayer as of
111-24 the time a tax execution for these taxes is entered upon
111-25 the general execution docket; and
111-26 (2) Not be superior to the lien of a prior recorded
111-27 instrument securing a bona fide debt.
111-28 Before the lien provided for in this subsection shall
111-29 attach to real property it shall be recorded in the county
111-30 where the real property is located. (f) The lien for taxes imposed by the provisions of
111-32 Article 5 of Chapter 7 of this title, relating to
111-33 withholding taxes, shall: (1) Arise and attach to all property of the defaulting
111-35 employer or other person required to deduct and withhold
111-36 on the date of the assessment of the taxes by operation
111-37 of law or by action of the commissioner; (2) Not be superior to the lien of a prior recorded
111-39 instrument securing a bona fide debt; and (3) Not be superior to the lien of a subsequent bona
111-41 fide purchaser or lender for value recorded prior to the
-111-
112- 1 time the execution for the tax has been entered on the
112- 2 general execution docket in the office of the superior
112- 3 court of the county in which the property affected is
112- 4 located. Before the lien provided for in this subsection shall
112- 6 attach to real property it shall be recorded in the county
112- 7 where the real property is located.
112- 8 (g)(f)(1) The lien of a specific or occupation tax shall
112- 9 not be superior to the title and operation of a security
112-10 deed recorded prior to the time the execution for the
112-11 tax has been entered on the general execution docket in
112-12 the office of the clerk of the superior court of the
112-13 county in which the affected property is located.
112-14 (2) As used in this subsection, the term 'specific or
112-15 occupation tax' means all state, county, and municipal
112-16 taxes and all state licenses and fees except:
112-17 (A) The taxes imposed by Article 1 of Chapter 9 of
112-18 this title;
112-19 (B) Ad valorem taxes; and
112-20 (C) The taxes imposed by Article 2 of Chapter 7 of
112-21 this title.; and (D) The taxes imposed by Article 5 of Chapter 7 of
112-23 this title.
112-24 The term includes, but is not limited to, sales and use
112-25 taxes, corporate net worth taxes, estate taxes,
112-26 real-estate transfer taxes, taxes on financial
112-27 institutions, alcohol and tobacco taxes, road taxes on
112-28 motor carriers, excise taxes, license fees, tax
112-29 liabilities of corporate officers and business
112-30 successors, and tax collections of a person who is a
112-31 dealer under Chapter 8 of this title relating to sales
112-32 and use taxation.
112-33 (h)(g) Liens for taxes existing prior to July 1, 1983,
112-34 shall not be changed by this Code section. On and after
112-35 July 1, 1983, this Code section shall govern the time of
112-36 creation of all tax liens and the priority of all tax
112-37 liens."
112-38 SECTION 21.
112-39 Code Section 48-5-41 of the Official Code of Georgia
112-40 Annotated, relating to property exempt from taxation, is
-112-
113- 1 amended by striking subparagraphs (a)(12)(A) and (a)(13)(A)
113- 2 and inserting in their place new subparagraphs (a)(12)(A)
113- 3 and (a)(13)(A) to read as follows:
113- 4 "(12)(A) Property of a nonprofit home for the aged
113- 5 used in connection with its operation when the home
113- 6 for the aged has no stockholders and no income or
113- 7 profit which is distributed to or for the benefit of
113- 8 any private person and when the home is qualified as
113- 9 an exempt organization under the United States
113-10 Internal Revenue Code, Section 501(c)(3), as amended,
113-11 and Code Section 48-7-25 48-7-31, and is subject to
113-12 the laws of this state regulating nonprofit and
113-13 charitable corporations;"
113-14 "(13)(A) All property of any nonprofit home for the
113-15 mentally disabled used in connection with its
113-16 operation when the home for the mentally disabled has
113-17 no stockholders and no income or profit which is
113-18 distributed to or for the benefit of any private
113-19 person and when the home is qualified as an exempt
113-20 organization under the United States Internal Revenue
113-21 Code of 1954, Section 501(c)(3), as amended, and Code
113-22 Section 48-7-25 48-7-31, and is subject to the laws of
113-23 this state regulating nonprofit and charitable
113-24 corporations."
113-25 SECTION 22.
113-26 Code Section 48-6-93 of the Official Code of Georgia
113-27 Annotated, relating to the local business license tax for
113-28 depository financial institutions, is amended by striking
113-29 subsection (e) in its entirety and inserting in lieu thereof
113-30 a new subsection (e) to read as follows:
113-31 "(e) Any tax paid by a depository financial institution
113-32 pursuant to this Code section and Code Section 48-6-95
113-33 shall be credited dollar for dollar against any state
113-34 corporate income tax liability of such institution for the
113-35 tax year during which any business and occupation tax
113-36 authorized by this Code section is paid. Such credit
113-37 shall be subject to the provisions contained in paragraph
113-38 (10) of subsection (b) of Code Section 48-7-21 48-7-7."
113-39 SECTION 23.
113-40 Code Section 48-11-14 of the Official Code of Georgia
113-41 Annotated, relating to registration, reports, and tax
113-42 payments of persons acquiring cigars and cigarettes subject
-113-
114- 1 to tax under Code Section 48-11-13, is amended by striking
114- 2 subsection (d) in its entirety and inserting in lieu thereof
114- 3 a new subsection (d) to read as follows:
114- 4 "(d) Except as otherwise provided in this Code section,
114- 5 the sanctions and penalties set forth in Code Sections
114- 6 48-11-15, 48-11-17, 48-11-18, and 48-11-20 through
114- 7 48-11-24 and in Code Sections 48-7-2 48-7-3, 48-10-16, and
114- 8 48-13-38 shall be imposed where applicable for any
114- 9 violations of this chapter by consumers."
114-10 SECTION 24.
114-11 Chapter 1 of Title 49 of the Official Code of Georgia
114-12 Annotated, relating to general provisions applicable to
114-13 social services, is amended by striking in its entirety Code
114-14 Section 49-1-9, relating to the Home Delivered Meals,
114-15 Transportation Services for the Elderly, and Preschool
114-16 Children with Special Needs Fund, and inserting in lieu
114-17 thereof the following:
114-18 "49-1-9.
114-19 Reserved."
114-20 SECTION 25.
114-21 Code Section 50-27-3 of the Official Code of Georgia
114-22 Annotated, relating to definitions applicable to the
114-23 "Georgia Lottery for Education Act," is amended by striking
114-24 paragraph (13) in its entirety and inserting in lieu thereof
114-25 a new paragraph (13) to read as follows:
114-26 "(13) 'Minority business' means any business which is
114-27 owned by:
114-28 (A) An individual who is a member of a minority who
114-29 reports as his or her personal income for Georgia
114-30 federal income tax purposes the income of such
114-31 business;
114-32 (B) A partnership in which a majority of the ownership
114-33 interest is owned by one or more members of a minority
114-34 who report as their personal income for Georgia
114-35 federal income tax purposes more than 50 percent of
114-36 the income of the partnership; or
114-37 (C) A corporation organized under the laws of this
114-38 state in which a majority of the common stock is owned
114-39 by one or more members of a minority who report as
114-40 their personal income for Georgia federal income tax
-114-
115- 1 purposes more than 50 percent of the distributed
115- 2 earnings of the corporation."
115- 3 SECTION 1.
115- 4 (a) Part 1 of this Act, this part, and Part 5 of this Act
115- 5 shall become effective upon their approval by the Governor
115- 6 or upon their becoming law without such approval.
115- 7 (b) Parts 2 and 3 of this Act shall become effective on
115- 8 January 1, 2009.
115- 9 SECTION 1.
115-10 All laws and parts of laws in conflict with this Act are
115-11 repealed.
-115-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 02/24/99
