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03 LC 22 4934/AP
House Bill 93 (AS PASSED HOUSE
AND SENATE)
By: Representatives Buck of the 112th and Royal of the 140th
By: Representatives Buck of the 112th and Royal of the 140th
A BILL TO BE
ENTITLED
AN ACT
AN ACT
To amend Code Section 48-13-5 of the Official Code of
Georgia Annotated, relating to definitions relative to occupation taxes and
regulatory fees, so as to revise the definition of gross receipts to exclude
interorganizational sales or transfers between or among certain parent
corporations, their wholly owned subsidiaries, and certain corporations
partially owned by such parents or subsidiaries; to provide an effective date;
to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION 1.
Code Section 48-13-5 of the Official Code of Georgia
Annotated, relating to definitions relative to occupation taxes and regulatory
fees, is amended by striking paragraph (2) and inserting in lieu thereof the
following:
"(2)(A) 'Gross receipts' means total revenue of the business or practitioner for the period, including without being limited to the following:
(i) Total income without deduction for the cost of goods sold or expenses incurred;
(ii) Gain from trading in stocks, bonds, capital assets, or instruments of indebtedness;
(iii) Proceeds from commissions on the sale of property, goods, or services;
(iv) Proceeds from fees charged for services rendered; and
(v) Proceeds from rent, interest, royalty, or dividend income.
(B) Gross receipts shall not include the following:
(i) Sales, use, or excise taxes;
(ii) Sales returns, allowances, and discounts;
"(2)(A) 'Gross receipts' means total revenue of the business or practitioner for the period, including without being limited to the following:
(i) Total income without deduction for the cost of goods sold or expenses incurred;
(ii) Gain from trading in stocks, bonds, capital assets, or instruments of indebtedness;
(iii) Proceeds from commissions on the sale of property, goods, or services;
(iv) Proceeds from fees charged for services rendered; and
(v) Proceeds from rent, interest, royalty, or dividend income.
(B) Gross receipts shall not include the following:
(i) Sales, use, or excise taxes;
(ii) Sales returns, allowances, and discounts;
(iii) Interorganizational sales or transfers between or
among the units of a parent-subsidiary controlled group of corporations, as
defined by 26 U.S.C. Section 1563(a)(1), between or among the units of a
brother-sister controlled group of corporations, as defined by 26 U.S.C. Section
1563(a)(2), between or among a parent corporation, wholly owned subsidiaries
of such parent corporation, and any corporation in which such parent corporation
or one or more of its wholly owned subsidiaries owns stock possessing at least
30 percent of the total value of shares of all classes of stock of such
partially owned corporation, or between or among wholly owned partnerships
or other wholly owned entities;
(iv) Payments made to a subcontractor or an independent agent for services which contributed to the gross receipts in issue;
(v) Governmental and foundation grants, charitable contributions, or the interest income derived from such funds, received by a nonprofit organization which employs salaried practitioners otherwise covered by this chapter, if such funds constitute 80 percent or more of the organization´s receipts; and
(vi) Proceeds from sales of goods or services which are delivered to or received by customers who are outside the state at the time of delivery or receipt."
(iv) Payments made to a subcontractor or an independent agent for services which contributed to the gross receipts in issue;
(v) Governmental and foundation grants, charitable contributions, or the interest income derived from such funds, received by a nonprofit organization which employs salaried practitioners otherwise covered by this chapter, if such funds constitute 80 percent or more of the organization´s receipts; and
(vi) Proceeds from sales of goods or services which are delivered to or received by customers who are outside the state at the time of delivery or receipt."
SECTION 2.
This Act shall become effective upon its approval by the
Governor or upon its becoming law without such approval.
SECTION 3.
All laws and parts of laws in conflict with this Act are
repealed.