07 LC
18 5933
House
Bill 176
By:
Representatives Scott of the
2nd,
Loudermilk of the
14th,
Neal of the
1st,
Setzler of the
35th,
Franklin of the
43rd,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating
to income taxes, so as to provide for a gradual reduction in the state income
tax rate for corporations over a period of years; to abolish the state income
tax for corporations effective for tax years beginning on or after January 1,
2010; to provide for the collection of income taxes prior to such abolishment;
to provide for an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
7 of Title 48 of the Official Code of Georgia Annotated, relating to income
taxes, is amended by revising subsection (a) of Code Section 48-7-21, relating
to taxation of corporations, as follows:
"(a)(1)(A)
For the taxable year beginning on or after January 1, 2007, and prior to January
1, 2008, every
Every
domestic corporation and every foreign corporation shall pay annually an income
tax equivalent to 6 percent of its Georgia taxable net income.
(B)
For the taxable year beginning on or after January 1, 2008, and prior to January
1, 2009, every domestic corporation and every foreign corporation shall pay
annually an income tax equivalent to 4 percent of its Georgia taxable net
income.
(C)
For the taxable year beginning on or after January 1, 2009, and prior to January
1, 2010, every domestic corporation and every foreign corporation shall pay
annually an income tax equivalent to 2 percent of its Georgia taxable net
income.
(D) For
any taxable year beginning on or after January 1, 2010, there shall not be a
corporate income tax and no corporate returns are required.
(2)
Georgia taxable net income of a corporation shall be the corporation´s
taxable income from property owned or from business done in this state. A
corporation´s taxable income from property owned or from business done in
this state shall consist of the corporation´s taxable income as defined in
the Internal Revenue Code of 1986, with the adjustments provided for in
subsection (b) of this Code section and allocated and apportioned as provided in
Code Section 48-7-31."
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laws and parts of laws in conflict with this Act are repealed.