Bill Text: GA HB386 | 2011-2012 | Regular Session | Introduced
Bill Title: Revenue and taxation; revenue structure; comprehensive revision
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2012-04-19 - Effective Date [HB386 Detail]
Download: Georgia-2011-HB386-Introduced.html
12 LC 34
3484S/AP
House
Bill 386 (AS PASSED HOUSE AND SENATE)
By:
Representatives Channell of the
116th,
O`Neal of the
146th,
Jones of the
46th,
and Peake of the
137th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Titles 2, 40, 44, and 48 of the Official Code of Georgia Annotated,
relating to agriculture, motor vehicles, property, and revenue and taxation,
respectively, so as to provide for the comprehensive revision of taxation of
motor vehicles; to change certain provisions regarding tag agents; to provide
for state and local title ad valorem tax fees as alternative ad valorem taxes;
to provide for definitions; to provide for continuation of tag, revalidation,
and registration fees; to provide for distribution of such state and local title
ad valorem tax fees; to exclude certain vehicles from certain fees; to change
certain provisions regarding classification of motor vehicles as a separate
class of property for ad valorem tax purposes; to provide for an exemption from
sales and use taxes only with respect to certain sales or purchases of certain
motor vehicles; to provide for certain reports; to provide for certain penalties
and sanctions; to provide for a study committee to review and report on such
state and local title ad valorem tax fees; to change the personal exemption for
married taxpayers filing an income tax return; to revise certain provisions
regarding the exclusion of retirement income from taxable net income; to revise
provisions relating to tax credits available to qualified donors of property for
conservation purposes; to provide a maximum tax credit amount; to provide for
additional requirements for donated conservation easements; to provide for
certification procedures; to modify transferability of tax credits; to change
certain provisions relating to the exemptions from sales and use tax for film
producers and film production companies; to provide for revision of taxation of
machinery and energy used in manufacturing and agriculture; to provide for the
repeal of certain exemptions from state sales and use tax; to provide for a new
exemption regarding the sale and use of machinery or equipment which is
necessary and integral to the manufacture of tangible personal property and the
sale, use, storage, or consumption of energy, industrial materials, or packaging
supplies; to provide for definitions; to provide for procedures, conditions, and
limitations; to provide for an exemption for sales to, or use by, a qualified
agriculture producer of agricultural production inputs, energy used in
agriculture, and agricultural machinery and equipment; to provide for
definitions; to provide for procedures, conditions, and limitations; to provide
for powers, duties, and authority of the Commissioner of Agriculture; to provide
for a local excise tax on energy used in manufacturing; to provide for a new
exemption for construction materials used in competitive projects of regional
significance for a limited period of time; to modify the exemption for jet fuel;
to revise the definition of dealer in order to expand the limits of nexus with
this state for purposes of collecting state sales and use tax; to provide for
sales tax exemptions for certain items on specified dates; to provide for
related matters; to provide for effective dates; to provide for applicability;
to provide that existing prosecutions shall not abate; to provide for
severability; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
PART
I
SECTION 1-1.
SECTION 1-1.
Title
40 of the Official Code of Georgia Annotated, relating to motor vehicles, is
amended by revising Code Section 40-2-23, relating to county tax collectors and
county tax commissioners' designation as tax agents, as follows:
"40-2-23.
(a)
The tax collectors of the various counties of this state and the tax
commissioners of those counties in which the duties of the tax collector are
performed by a tax commissioner shall be designated as tag agents of the
commissioner for the purpose of accepting applications for the registration of
vehicles. The commissioner is authorized to promulgate rules and regulations
for the purpose of delegating to such tag agents the custodial responsibility
for properly receiving, processing, issuing, and storing motor vehicle titles or
registrations, or both.
(b)
The state revenue commissioner is authorized to further designate each such tag
agent as a sales tax agent for the purpose of collecting sales and use tax with
respect to the casual sale or casual use of a motor vehicle. For purposes of
this Code section, 'casual sale' or 'casual use' means the sale of a motor
vehicle by a person who is not regularly or systematically engaged in making
retail sales of motor vehicles and the first use, consumption, distribution, or
storage for use or consumption of such motor vehicle purchased through a casual
sale. As personal compensation for services rendered to the Department of
Revenue with respect to the collection of such sales and use tax, each such
designated tag agent shall be authorized to retain from such collection a fee of
$200.00 per month. In any month in which an insufficient amount of such tax is
collected to pay such fee, the amount of any such unpaid fee may be deferred
until such month as sufficient collections are made. Such compensation shall be
in addition to any other compensation to which such tax collector or tax
commissioner is entitled.
(c)(b)
The duties and responsibilities of agents of the commissioner designated under
this Code section shall be a part of the official duties and responsibilities of
the county tax collectors and tax commissioners."
SECTION
1-2.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by revising Code Section 48-5-441, relating to classification of
motor vehicles and mobile homes as separate classes of tangible property for ad
valorem tax purposes, as follows:
"48-5-441.
(a)(1)
For the purposes of ad valorem taxation, motor vehicles
are
shall
be classified as a separate and distinct
class of tangible property. Such class of tangible property shall be divided
into two distinct and separate subclasses of tangible property with one subclass
including heavy-duty equipment motor vehicles as defined in Code
Section 48-5-505 and the other subclass including all other motor vehicles.
The procedures prescribed by this article for returning motor vehicles,
excluding heavy-duty equipment motor vehicles as defined in Code Section
48-5-505, for taxation, determining the applicable rates for taxation, and
collecting the ad valorem tax imposed on motor vehicles shall be
exclusive.
(2)
This subsection shall not apply to motor vehicles subject to Code Section
48-5-441.1.
(b)
For the purposes of ad valorem taxation, mobile homes
are
shall
be classified as a separate and distinct
class of tangible property. The procedures prescribed by this article for
returning mobile homes for taxation, determining the applicable rates for
taxation, and collecting the ad valorem tax imposed on mobile homes shall be
exclusive.
(c)(1)
For the purposes of ad valorem taxation, commercial vehicles
are
shall
be classified as a separate and distinct
class of tangible property. The procedures prescribed by this article for
returning commercial vehicles for taxation and for determining the valuation of
commercial vehicles shall be exclusive and as provided for in Code
Section 48-5-442.1. All other procedures prescribed by this article for
the taxation of motor vehicles shall be applicable to the taxation of commercial
vehicles.
(2)
This subsection shall not apply to motor vehicles subject to Code
Section 48-5-441.1."
SECTION
1-3.
Said
title is further amended by adding a new Code section to read as
follows:
"48-5-441.1.
In
accordance with Article VII, Section I, Paragraph III(b)(3) of the Georgia
Constitution, motor vehicles subject to the provisions of Code Section 48-5B-1
shall be classified as a separate and distinct class of tangible property for
the purposes of ad valorem
taxation."
SECTION
1-4.
Said
title is further amended by adding a new chapter to read as
follows:
"CHAPTER
5B
48-5B-1.
(a)
As used in this Code section, the term:
(1)
'Fair market value of the motor vehicle' means:
(A)
The average of the current fair market value and the current wholesale value of
a motor vehicle for a vehicle listed in the current motor vehicle ad valorem
assessment manual utilized by the state revenue commissioner in determining
taxable value of a motor vehicle under Code Section 48-5-442;
(B)
For a used motor vehicle which is not so listed in such current motor vehicle ad
valorem assessment manual, the value from the bill of sale or the value from a
reputable used car market guide designated by the commissioner, whichever is
greater; or
(C)
The fair market value determined by the state revenue commissioner from the bill
of sale of a new motor vehicle for which there is no value under subparagraph
(A) of this paragraph, less any rebate and before any reduction for the trade-in
value of another motor vehicle.
(2)
'Immediate family member' means spouse, parent, child, sibling, grandparent, or
grandchild.
(3)
'Loaner vehicle' means a motor vehicle owned by a dealer which is withdrawn
temporarily from dealer inventory for exclusive use as a courtesy vehicle loaned
at no charge for a period not to exceed 30 days within a calendar year to any
one customer whose motor vehicle is being serviced by such dealer.
(4)
'Rental charge' means the total value received by a rental motor vehicle concern
for the rental or lease for 31 or fewer consecutive days of a rental motor
vehicle, including the total cash and nonmonetary consideration for the rental
or lease, including, but not limited to, charges based on time or mileage and
charges for insurance coverage or collision damage waiver but excluding all
charges for motor fuel taxes or sales and use taxes.
(5)
'Rental motor vehicle' means a motor vehicle designed to carry ten or fewer
passengers and used primarily for the transportation of persons that is rented
or leased without a driver.
(6)
'Rental motor vehicle concern' means a person or legal entity which owns or
leases five or more rental motor vehicles and which regularly rents or leases
such vehicles to the public for value.
(7)
'Trade-in value' means the value of the motor vehicle as stated in the bill of
sale for a vehicle which has been traded in to the dealer in a transaction
involving the purchase of another vehicle from the dealer.
(b)(1)(A)
Except as otherwise provided in this subsection, any motor vehicle for which a
title is issued in this state on or after March 1, 2013, shall be exempt from
sales and use taxes to the extent provided under paragraph (92) of Code Section
48-8-3 and shall not be subject to the ad valorem tax as otherwise required
under Chapter 5 of Title 48. Any such motor vehicle shall be titled as
otherwise required under Title 40 but shall be subject to a state title fee and
a local title fee which shall be alternative ad valorem taxes as authorized by
Article VII, Section I, Paragraph III(b)(3) of the Georgia
Constitution.
(B)(i)
As used in this subparagraph, the term:
(II)
'Local base amount' means $1 billion.
(II)
'Local current collection amount' means the total amount of motor vehicle local
ad valorem tax proceeds collected under this Code section and Chapter 5 of this
title during the calendar year which immediately precedes the tax year in which
the title ad valorem tax adjustments are required to be made under this
subparagraph.
(III)
'Local target collection amount' means an amount equal to the local base amount
added to the product of 2 percent of the local base amount multiplied by the
number of years since 2012 with a maximum amount of $1.2 billion.
(IV)
'State base amount' means $535 million.
(V)
'State current collection amount' means the total amount of motor vehicle state
ad valorem tax proceeds collected under this Code section and Chapter 5 of this
title during the calendar year which immediately precedes the tax year in which
the state and local title ad valorem tax rate is to be reviewed for adjustment
under division (xiv) of this subparagraph. Notwithstanding the other
provisions of this subdivision to the contrary, the term 'state current
collection amount' for the 2014 calendar year for the purposes of the 2015
review under division (xiv) of this subparagraph shall be adjusted so that such
amount is equal to the amount of motor vehicle state ad valorem tax proceeds
that would have been collected under this Code section in 2014 if the combined
state and local title ad valorem tax rate was 7 percent of the fair market value
of the motor vehicle less any trade-in value plus the total amount of motor
vehicle state ad valorem tax proceeds collected under Chapter 5 of this title
during 2014.
(VI)
'State target collection amount' means an amount equal to the state base amount
added to the product of 2 percent of the state base amount multiplied by the
number of years since 2012.
(ii)
The combined state and local title ad valorem tax shall be at a rate equal
to:
(I)
For the period commencing March 1, 2013, through December 31, 2013, 6.5 percent
of the fair market value of the motor vehicle less any trade-in
value;
(II)
For the 2014 tax year, 6.75 percent of the fair market value of the motor
vehicle less any trade-in value; and
(III)
Except as provided in division (xiv) of this subparagraph, for the 2015 and
subsequent tax years, 7 percent of the fair market value of the motor vehicle
less any trade-in value.
(iii)
For the period commencing March 1, 2013, through December 31, 2013, the state
title ad valorem tax shall be at a rate equal to 57 percent of the tax rate
specified in division (ii) of this subparagraph, and the local title ad valorem
tax shall be at a rate equal to 43 percent of the tax rate specified in division
(ii) of this subparagraph.
(iv)
For the 2014 tax year, the state title ad valorem tax shall be at a rate equal
to 55 percent of the tax rate specified in division (ii) of this subparagraph,
and the local title ad valorem tax shall be at a rate equal to 45 percent of the
tax rate specified in division (ii) of this subparagraph.
(v)
For the 2015 tax year, the state title ad valorem tax shall be at a rate equal
to 55 percent of the tax rate specified in division (ii) of this subparagraph,
and the local title ad valorem tax shall be at a rate equal to 45 percent of the
tax rate specified in division (ii) of this subparagraph.
(vi)
For the 2016 tax year, except as otherwise provided in division (xiii) of this
subparagraph, the state title ad valorem tax shall be at a rate equal to 53.5
percent of the tax rate specified in division (ii) of this subparagraph, and the
local title ad valorem tax shall be at a rate equal to 46.5 percent of the tax
rate specified in division (ii) of this subparagraph.
(vii)
For the 2017 tax year, except as otherwise provided in divisions (xiii) and
(xiv) of this subparagraph, the state title ad valorem tax shall be at a rate
equal to 44 percent of the tax rate specified in division (ii) of this
subparagraph, and the local title ad valorem tax shall be at a rate equal to 56
percent of the tax rate specified in division (ii) of this
subparagraph.
(viii)
For the 2018 tax year, except as otherwise provided in division (xiii) of this
subparagraph, the state title ad valorem tax shall be at a rate equal to 40
percent of the tax rate specified in division (ii) of this subparagraph, and the
local title ad valorem tax shall be at a rate equal to 60 percent of the tax
rate specified in division (ii) of this subparagraph.
(ix)
For the 2019 tax year, except as otherwise provided in divisions (xiii) and
(xiv) of this subparagraph, the state title ad valorem tax shall be at a rate
equal to 36 percent of the tax rate specified in division (ii) of this
subparagraph, and the local title ad valorem tax shall be at a rate equal to 64
percent of the tax rate specified in division (ii) of this
subparagraph.
(x)
For the 2020 tax year, except as otherwise provided in division (xiii) of this
subparagraph, the state title ad valorem tax shall be at a rate equal to 34
percent of the tax rate specified in division (ii) of this subparagraph, and the
local title ad valorem tax shall be at a rate equal to 66 percent of the tax
rate specified in division (ii) of this subparagraph.
(xi)
For the 2021 tax year, except as otherwise provided in division (xiii) of this
subparagraph, the state title ad valorem tax shall be at a rate equal to 30
percent of the tax rate specified in division (ii) of this subparagraph, and the
local title ad valorem tax shall be at a rate equal to 70 percent of the tax
rate specified in division (ii) of this subparagraph.
(xii)
For the 2022 and all subsequent tax years, except as otherwise provided in
division (xiii) of this subparagraph for tax years 2022, 2023, and 2024 and
except as otherwise provided in division (xiv) of this subparagraph for tax year
2023, the state title ad valorem tax shall be at a rate equal to 28 percent of
the tax rate specified in division (ii) of this subparagraph, and the local
title ad valorem tax shall be at a rate equal to 72 percent of the tax rate
specified in division (ii) of this subparagraph.
(xiii)
Beginning in 2016, by not later than January 15 of each tax year through the
2022 tax year, the state revenue commissioner shall determine the local target
collection amount and the local current collection amount for the preceding
calendar year. If such local current collection amount is equal to or within 1
percent of the local target collection amount, then the state title ad valorem
tax rate and the local title ad valorem tax rate for such tax year shall remain
at the rate specified in this subparagraph for that year. If the local current
collection amount is more than 1 percent greater than the local target
collection amount, then the local title ad valorem tax rate for such tax year
shall be reduced automatically by operation of this division by such percentage
amount as may be necessary so that, if such rate had been in effect for the
calendar year under review, the local current collection amount would have
produced an amount equal to the local target collection amount, and the state
title ad valorem tax rate for such tax year shall be increased by an equal
amount to maintain the combined state and local title ad valorem tax rate at the
rate specified in division (ii) of this subparagraph. If the local current
collection amount is more than 1 percent less than the local target
collection amount, then the local title ad valorem tax rate for such tax year
shall be increased automatically by operation of this division by such
percentage amount as may be necessary so that, if such rate had been in effect
for the calendar year under review, the local current collection amount would
have produced an amount equal to the local target collection amount, and the
state title ad valorem tax rate for such tax year shall be reduced by an equal
amount to maintain the combined state and local title ad valorem tax rate at the
rate specified in division (ii) of this subparagraph. In the event of an
adjustment of such ad valorem tax rates, by not later than January 31 of
such tax year, the state revenue commissioner shall notify the tax commissioner
of each county in this state of the adjusted rate amounts. The effective date
of such adjusted rate amounts shall be January 1 of such tax year.
(xiv)
In tax years 2015, 2018, and 2022, by not later than July 1 of each such tax
year, the state revenue commissioner shall determine the state target collection
amount and the state current collection amount for the preceding calendar year.
If such state current collection amount is greater than, equal to, or within
1 percent of the state target collection amount after making the
adjustment, if any, required in division (xiii) of this subparagraph, then the
combined state and local title ad valorem tax rate provided in division (ii) of
this subparagraph shall remain at the rate specified in such division. If the
state current collection amount is more than 1 percent less than the state
target collection amount after making the adjustment, if any, required by
division (xiii) of this subparagraph, then the combined state and local title ad
valorem tax rate provided in division (ii) of this subparagraph shall be
increased automatically by operation of this division by such percentage amount
as may be necessary so that, if such rate had been in effect for the calendar
year under review, the state current collection amount would have produced an
amount equal to the state target collection amount, and the state title ad
valorem tax rate and the local title ad valorem tax rate for the tax year in
which such increase in the combined state and local title ad valorem tax rate
shall become effective shall be adjusted from the rates specified in this
subparagraph or division (xiii) of this subparagraph for such tax year such
that the proceeds from such increase in the combined state and local title ad
valorem tax rate shall be allocated in full to the state. In the event of an
adjustment of the combined state and local title ad valorem tax rate, by not
later than August 31 of such tax year, the state revenue commissioner shall
notify the tax commissioner of each county in this state of the adjusted
combined state and local title ad valorem tax rate for the next calendar year.
The effective date of such adjusted combined state and local title ad valorem
tax rate shall be January 1 of the next calendar year. Notwithstanding the
provisions of this division, the combined state and local title ad valorem tax
rate shall not exceed 9 percent.
(xv)
The state revenue commissioner shall promulgate such rules and regulations as
may be necessary and appropriate to implement and administer this Code section,
including, but not limited to, rules and regulations regarding appropriate
public notification of any changes in rate amounts and the effective date of
such changes and rules and regulations regarding appropriate enforcement and
compliance procedures and methods for the implementation and operation of this
Code section.
(C)
The application for title and the state and local title ad valorem tax fees
provided for in subparagraph (A) of this paragraph shall be paid to the tag
agent in the county in which the purchaser registers such motor vehicle and
shall be paid at the time the purchaser applies for a title and registers such
motor vehicle. A dealer of new or used motor vehicles may accept such
application for title and state and local title ad valorem tax fees on behalf of
the purchaser of a new or used motor vehicle for the purpose of delivering such
title application and state and local title ad valorem tax fees to the county
tag agent to obtain a tag and title for the purchaser of such motor
vehicle.
(D)
There shall be a penalty imposed on any person who, in the determination of the
commissioner, falsifies any information in any bill of sale used for purposes of
determining the fair market value of the motor vehicle. Such penalty shall not
exceed $2,500.00 as a state penalty and shall not exceed $2,500.00 as a local
penalty as determined by the commissioner. Such determination shall be made
within 60 days of the commissioner receiving information of a possible violation
of this paragraph.
(E)
A dealer of new or used motor vehicles that accepts an application for title and
state and local title ad valorem tax fees from a purchaser of a new or used
motor vehicle and does not transmit such application for title and state and
local title ad valorem tax fees to the county tag agent within 10 days following
the date of purchase shall be liable to the county tag agent for an amount equal
to 5 percent of the amount of such state and local title ad valorem tax fees.
An additional 5 percent penalty shall be imposed for each subsequent month the
payment is not transmitted.
(F)
A dealer of new or used motor vehicles that accepts an application for title and
state and local title ad valorem tax fees from a purchaser of a new or used
motor vehicle and converts such fees to his or her own use shall be guilty of
theft by conversion and, upon conviction, shall be punished as provided in Code
Section 16-8-12.
(2)
A person or entity acquiring a salvage title pursuant to subsection (b) of Code
Section 40-3-36 shall not be subject to the fee specified in paragraph (1)
of this subsection but shall be subject to a state title ad valorem tax fee in
an amount equal to 1 percent of the fair market value of the motor vehicle.
Such state title ad valorem tax fee shall be an alternative ad valorem tax as
authorized by Article VII, Section I, Paragraph III(b)(3) of the Georgia
Constitution.
(c)(1)
The amount of proceeds collected by tag agents each month as state and local
title ad valorem tax fees, state salvage title ad valorem tax fees,
administrative fees, penalties, and interest pursuant to subsection (b) of this
Code section shall be allocated and disbursed as provided in this
subsection.
(2)
For the 2013 tax year and in each subsequent tax year, the amount of such funds
shall be disbursed within 30 days following the end of each calendar month as
follows:
(A)
State title ad valorem tax fees, state salvage title ad valorem tax fees,
administrative fees, penalties, and interest shall be remitted to the state
revenue commissioner who shall deposit such proceeds in the general fund of the
state less an amount to be retained by the tag agent not to exceed 1 percent of
the total amount otherwise required to be remitted under this subparagraph to
defray the cost of administration. Such retained amount shall be remitted to
the collecting county's general fund. Failure by the tag agent to disburse
within such 30 day period shall result in a forfeiture of such administrative
fee plus interest on such amount at the rate specified in Code Section 48-2-40;
and
(B)
Local title ad valorem tax fees, administrative fees, penalties, and interest
shall be designated as local government ad valorem tax funds. The tag agent
shall then distribute the proceeds as specified in paragraph (3) of this
subsection.
(3)
The local title ad valorem tax fee proceeds required under this subsection shall
be distributed as follows:
(A)
The tag agent of the county shall within 30 days following the end of each
calendar month allocate and distribute to the county governing authority and to
municipal governing authorities, the board of education of the county school
district, and the board of education of any independent school district located
in such county an amount of those proceeds necessary to offset any reduction in
ad valorem tax on motor vehicles collected under Chapter 5 of Title 48 in the
taxing jurisdiction of each governing authority and school district from the
amount of ad valorem taxes on motor vehicles collected under Chapter 5 of Title
48 in each such governing authority and school district during the same calendar
month of 2012. This reduction shall be calculated by subtracting the amount of
ad valorem tax on motor vehicles collected under Chapter 5 of Title 48 in each
such taxing jurisdiction from the amount of ad valorem tax on motor vehicles
collected under Chapter 5 of Title 48 in that taxing jurisdiction in the same
calendar month of 2012. In the event that the local title ad valorem tax fee
proceeds are insufficient to fully offset such reduction in ad valorem taxes on
motor vehicles, the tag agent shall allocate a proportionate amount of the
proceeds to each governing authority and to the board of education of each such
school district, and any remaining shortfall shall be paid from the following
month's local title ad valorem tax fee proceeds. In the event that a shortfall
remains, the tag agent shall continue to first allocate local title ad valorem
tax fee proceeds to offset such shortfalls until the shortfall has been fully
repaid; and
(B)
Of the proceeds remaining following the allocation and distribution under
subparagraph (A) of this paragraph, the tag agent shall allocate and distribute
to the county governing authority and to municipal governing authorities, the
board of education of the county school district, and the board of education of
any independent school district located in such county the remaining amount of
those proceeds in the manner provided in this subparagraph. Such proceeds shall
be deposited in the general fund of such governing authority or board of
education and shall not be subject to any use or expenditure requirements
provided for under any of the following described local sales and use taxes but
shall be authorized to be expended in the same manner as authorized for the ad
valorem tax revenues on motor vehicles under Chapter 5 of Title 48 which
would otherwise have been collected for such governing authority or board of
education. Of such remaining proceeds:
(i)
An amount equal to one-third of such proceeds shall be distributed to the board
of education of the county school district and the board of education of each
independent school district located in such county in the same manner as
required for any local sales and use tax for educational purposes levied
pursuant to Part 2 of Article 3 of Chapter 8 of Title 48 currently in effect.
If such tax is not currently in effect, such proceeds shall be distributed to
such board or boards of education in the same manner as if such tax were in
effect;
(ii)(I)
Except as otherwise provided in this division, an amount equal to one-third of
such proceeds shall be distributed to the governing authority of the county and
the governing authority of each qualified municipality located in such county in
the same manner as specified under the distribution certificate for the joint
county and municipal sales and use tax under Article 2 of Chapter 8 of Title 48
currently in effect.
(II)
If such tax were never in effect, such proceeds shall be distributed to the
governing authority of the county and the governing authority of each qualified
municipality located in such county on a pro rata basis according to the ratio
of the population that each such municipality bears to the population of the
entire county.
(III)
If such tax is currently in effect as well as a local option sales and use tax
for educational purposes levied pursuant to a local constitutional amendment, an
amount equal to one-third of such proceeds shall be distributed in the same
manner as required under subdivision (I) of this division and an amount equal to
one-third of such proceeds shall be distributed to the board of education of the
county school district.
(IV)
If such tax is not currently in effect and a local option sales and use tax for
educational purposes levied pursuant to a local constitutional amendment is
currently in effect, such proceeds shall be distributed to the board of
education of the county school district and the board of education of any
independent school district in the same manner as required under that local
constitutional amendment.
(V)
If such tax is not currently in effect and a homestead option sales and use tax
under Article 2A of Chapter 8 of Title 48 is in effect, such proceeds shall be
distributed to the governing authority of the county, each qualified
municipality, and each existing municipality in the same proportion as otherwise
required under Code Section 48-8-104; and
(iii)(I)
An amount equal to one-third of such proceeds shall be distributed to the
governing authority of the county and the governing authority of each qualified
municipality located in such county in the same manner as specified under an
intergovernmental agreement or as otherwise required under the county special
purpose local option sales and use tax under Part 1 of Article 3 of Chapter 8 of
Title 48 currently in effect; provided, however, that this subdivision
shall not apply if subdivision (III) of division (ii) of this subparagraph is
applicable.
(II)
If such tax were in effect but expired and is not currently in effect, such
proceeds shall be distributed to the governing authority of the county and the
governing authority of each qualified municipality located in such county in the
same manner as if such tax were still in effect according to the
intergovernmental agreement or as otherwise required under the county special
purpose local sales and use tax under Part 1 of Article 3 of Chapter 8 of Title
48 for the 12 month period commencing at the expiration of such tax. If such
tax is not renewed prior to the expiration of such 12 month period, such amount
shall be distributed in accordance with subdivision (I) of division (ii) of this
subparagraph; provided, however, that if a tax under Article 2 of Chapter 8 of
Title 48 is not in effect, such amount shall be distributed in accordance with
subdivision (II) of division (ii) of this subparagraph.
(III)
If such tax is not currently in effect in a county in which a tax is levied for
purposes of a metropolitan area system of public transportation, as authorized
by the amendment to the Constitution set out at Ga. L. 1964, p. 1008; the
continuation of such amendment under Article XI, Section I, Paragraph IV(d) of
the Constitution; and the laws enacted pursuant to such constitutional
amendment, such proceeds shall be distributed to the governing body of the
authority created by local Act to operate such metropolitan area system of
public transportation.
(IV)
If such tax were never in effect, such proceeds shall be distributed in the same
manner as specified under the distribution certificate for the joint county and
municipal sales and use tax under Article 2 of Chapter 8 of Title 48 currently
in effect; provided, however, that if such tax under such article is not in
effect, such proceeds shall be distributed to the governing authority of the
county and the governing authority of each qualified municipality located in
such county on a pro rata basis according to the ratio of the population that
each such municipality bears to the population of the entire
county.
(d)(1)(A)
Upon the death of an owner of a motor vehicle which has not become subject to
paragraph (1) of subsection (b) of this Code section, the immediate family
member or immediate family members of such owner who receive such motor vehicle
pursuant to a will or under the rules of inheritance shall, subsequent to the
transfer of title of such motor vehicle, continue to be subject to ad valorem
tax under Chapter 5 of Title 48 and shall not be subject to the state and local
title ad valorem tax fees provided for in paragraph (1) of subsection (b)
of this Code section unless the immediate family member or immediate family
members make an affirmative written election to become subject to
paragraph (1) of subsection (b) of this Code section. In the event of such
election, such transfer shall be subject to the state and local title ad valorem
tax fees provided for in paragraph (1) of subsection (b) of this Code
section.
(B)
Upon the death of an owner of a motor vehicle which has become subject to
paragraph (1) of subsection (b) of this Code section, the immediate family
member or immediate family members of such owner who receive such motor vehicle
pursuant to a will or under the rules of inheritance shall be subject to a state
title ad valorem tax fee in an amount equal to one-quarter of 1 percent of the
fair market value of the motor vehicle and a local title ad valorem tax fee in
an amount equal to one-quarter of 1 percent of the fair market value of the
motor vehicle. Such title ad valorem tax fees shall be an alternative ad
valorem tax as authorized by Article VII, Section I, Paragraph III(b)(3) of the
Georgia Constitution.
(2)(A)
Upon the transfer from an immediate family member of a motor vehicle which has
not become subject to paragraph (1) of subsection (b) of this Code section, the
immediate family member or immediate family members who receive such motor
vehicle shall, subsequent to the transfer of title of such motor vehicle,
continue to be subject to ad valorem tax under Chapter 5 of Title 48 and shall
not be subject to the state and local title ad valorem tax fees provided for in
paragraph (1) of subsection (b) of this Code section unless the immediate family
member or immediate family members make an affirmative written election to
become subject to paragraph (1) of subsection (b) of this Code section. In the
event of such election, such transfer shall be subject to the state and local
title ad valorem tax fees provided for in paragraph (1) of subsection (b) of
this Code section.
(B)
Upon the transfer from an immediate family member of a motor vehicle which has
become subject to paragraph (1) of subsection (b) of this Code section, the
immediate family member who receives such motor vehicle shall transfer title of
such motor vehicle to such recipient family member and shall be subject to a
state title ad valorem tax fee in an amount equal to one-quarter of 1 percent of
the fair market value of the motor vehicle and a local title ad valorem tax fee
in an amount equal to one-quarter of 1 percent of the fair market value of the
motor vehicle. Such title ad valorem tax fees shall be an alternative ad
valorem tax as authorized by Article VII, Section I, Paragraph III(b)(3) of the
Georgia Constitution.
(C)
Any title transfer under this paragraph shall be accompanied by an affidavit of
the transferor and transferee that such persons are immediate family members to
one another. There shall be a penalty imposed on any person who, in the
determination of the state revenue commissioner, falsifies any material
information in such affidavit. Such penalty shall not exceed $2,500.00 as a
state penalty and shall not exceed $2,500.00 as a local penalty as determined by
the state revenue commissioner. Such determination shall be made within 60 days
of the state revenue commissioner receiving information of a possible violation
of this paragraph.
(3)
Any individual who:
(A)
Is required by law to register a motor vehicle or motor vehicles in this state
which were registered in the state in which such person formerly resided;
and
(B)
Is required to file an application for a certificate of title under Code
Section 40-3-21 or 40-3-32
shall
only be required to pay state and local title ad valorem tax fees in the amount
of 50 percent of the amount which would otherwise be due and payable under this
subsection at the time of filing the application for a certificate of title, and
the remaining 50 percent shall be paid within 12 months.
(4)
The state and local title ad valorem tax fees provided for under this Code
section shall not apply to corrected titles, replacement titles under Code
Section 40-3-31, or titles reissued to the same owner pursuant to Code Sections
40-3-50 through 40-3-56.
(5)
Any motor vehicle subject to state and local title ad valorem tax fees under
paragraph (1) of subsection (b) of this Code section shall continue to be
subject to the title, license plate, revalidation decal, and registration
requirements and applicable fees as otherwise provided in Title 40 in the same
manner as motor vehicles which are not subject to state and local title ad
valorem tax fees under paragraph (1) of subsection (b) of this Code
section.
(6)
Motor vehicles owned or leased by or to the state or any county, consolidated
government, municipality, county or independent school district, or other
government entity in this state shall not be subject to the state and local
title ad valorem tax fees provided for under paragraph (1) of subsection (b) of
this Code section; provided, however, that such other government entity shall
not qualify for the exclusion under this paragraph unless it is exempt from ad
valorem tax and sales and use tax pursuant to general
law.
(7)(A)
Any motor vehicle which is exempt from sales and use tax pursuant to paragraph
(30) of Code Section 48-8-3 shall be exempt from state and local title ad
valorem tax fees under this subsection.
(B)
Any motor vehicle which is exempt from ad valorem taxation pursuant to Code
Section 48-5-478, 48-5-478.1, 48-5-478.2, or 48-5-478.3 shall be exempt from
state and local title ad valorem tax fees under paragraph (1) of subsection (b)
of this Code section.
(8)
There shall be a penalty imposed on the transfer of all or any part of the
interest in a business entity that includes primarily as an asset of such
business entity one or more motor vehicles, when, in the determination of the
state revenue commissioner, such transfer is done to evade the payment of state
and local title ad valorem tax fees under this subsection. Such penalty shall
not exceed $2,500.00 as a state penalty per motor vehicle and shall not exceed
$2,500.00 as a local penalty per motor vehicle, as determined by the state
revenue commissioner, plus the amount of the state and local title ad valorem
tax fees. Such determination shall be made within 60 days of the state revenue
commissioner receiving information that a transfer may be in violation of this
paragraph.
(9)
Any owner of any motor vehicle who fails to submit within 30 days of the date
such owner is required by law to register such vehicle in this state an
application for a first certificate of title under Code Section 40-3-21 or a
certificate of title under Code Section 40-3-32 shall be required to pay a
penalty in the amount of 10 percent of the state title ad valorem tax fees and
10 percent of the local title ad valorem tax fees required under this Code
section, plus interest at the rate of 1.0 percent per month, unless a temporary
permit has been issued by the tax commissioner. The tax commissioner shall
grant a temporary permit in the event the failure to timely apply for a first
certificate of title is due to the failure of a lienholder to comply with Code
Section 40-3-56, regarding release of a security interest or lien, and no
penalty or interest shall be assessed. Such penalty and interest shall be in
addition to the penalty and fee required under Code Section 40-3-21 or 40-3-32,
as applicable. A new or used motor vehicle dealer shall be responsible for
remitting state and local title ad valorem tax fees in the same manner as
otherwise required of an owner under this paragraph and shall be subject to the
same penalties and interest as an owner for noncompliance with the requirements
of this paragraph.
(10)
The owner of any motor vehicle purchased in this state for which a title was
issued in this state on or after January 1, 2012, and prior to March 1, 2013,
shall be authorized to opt in to the provisions of this subsection at any time
prior to January 1, 2014, upon compliance with the following
requirements:
(A)(i)
The total amount of state and local title ad valorem tax fees which would be due
from March 1, 2013, to December 31, 2013, if such vehicle had been titled in
2013 shall be determined; and
(ii)
The total amount of state and local sales and use tax and state and local ad
valorem tax under Chapter 5 of Title 48 which were due and paid in 2012 for that
motor vehicle and, if applicable, the total amount of such taxes which were due
and paid for that motor vehicle in 2013 shall be determined; and
(B)(i)
If the amount derived under division (i) of subparagraph (A) of this paragraph
is greater than the amount derived under division (ii) subparagraph (A) of this
paragraph, the owner shall remit the difference to the tag agent. Such
remittance shall be deemed local title ad valorem tax fee proceeds;
or
(ii)
If the amount derived under division (i) of subparagraph (A) of this paragraph
is less than the amount derived under division (ii) of subparagraph (A) of this
paragraph, no additional amount shall be due and payable by the
owner.
Upon
certification by the tag agent of compliance with the requirements of this
paragraph, such motor vehicle shall not be subject to ad valorem tax as
otherwise required under Chapter 5 of Title 48 in the same manner as otherwise
provided in paragraph (1) of subsection (b) of this Code section.
(11)(A)
In the case of rental motor vehicles owned by a rental motor vehicle concern,
the state title ad valorem tax fee shall be in an amount equal to .75 percent of
the fair market value of the motor vehicle, and the local title ad valorem tax
fee shall be in an amount equal to .75 percent of the fair market value of the
motor vehicle, but only if in the immediately prior calendar year the average
amount of sales and use tax attributable to the rental charge of each such
rental motor vehicle was at least $400.00 as certified by the state revenue
commissioner.
(B)
Such title ad valorem tax fees shall be an alternative ad valorem tax as
authorized by Article VII, Section I, Paragraph III(b)(3) of the Georgia
Constitution.
(12)
A loaner vehicle shall not be subject to state and local title ad valorem tax
fees under paragraph (1) of subsection (b) of this Code section for a period of
time not to exceed six months in a calendar year commencing on the date such
loaner vehicle is withdrawn temporarily from inventory. Immediately upon the
expiration of such six-month period, if the dealer does not return the loaner
vehicle to inventory for resale, the dealer shall be responsible for remitting
state and local title ad valorem tax fees in the same manner as otherwise
required of an owner under paragraph (9) of this subsection and shall be subject
to the same penalties and interest as an owner for noncompliance with the
requirements of paragraph (9) of this subsection.
(13)
Any motor vehicle which is donated to a nonprofit organization exempt from
taxation under Section 501(c)(3) of the Internal Revenue Code for the purpose of
being transferred to another person shall, when titled in the name of such
nonprofit organization, not be subject to state and local title ad valorem tax
fees under paragraph (1) of subsection (b) of this Code section but
shall be subject to state and local title ad valorem tax fees otherwise
applicable to salvage titles under paragraph (2) of subsection (b) of this Code
section.
(e)
The fair market value of any motor vehicle subject to this Code section shall be
appealable in the same manner as otherwise authorized for a motor vehicle
subject to ad valorem taxation under Code Section 48-5-450.
(f)
Beginning in 2014, on or before January 31 of each year, the department shall
provide a report to the chairpersons of the House Committee on Ways and Means
and the Senate Finance Committee showing the state and local title ad valorem
tax fee revenues collected pursuant to this chapter and the motor vehicle ad
valorem tax proceeds collected pursuant to Chapter 5 of this title during the
preceding calendar
year."
SECTION
1-5.
Said
title is further amended in Code Section 48-8-3, relating to exemptions from
sales and use tax, by replacing "; or" with a semicolon at the end of paragraph
(90), replacing the period at the end of paragraph (91) with "; or", and by
adding a new paragraph to read as follows:
"(92)
The sale or purchase of any motor vehicle titled in this state on or after March
1, 2013, pursuant to Code Section 48-5B-1. This exemption shall not apply to
leases or rentals of motor vehicles or to those sales and use taxes collected
pursuant to subsection (d) of Code Section
48-8-241."
PART
II
SECTION 2-1.
SECTION 2-1.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by revising subsection (b) of Code Section 48-7-26, relating to
personal exemptions from income taxes, as follows:
"(b)(1)
An exemption of
$5,400.00
$7,400.00
shall be allowed as a deduction in computing Georgia taxable income of a
taxpayer and spouse, but only if a joint return is filed.
If a taxpayer
and spouse file separate returns, $3,700.00 shall be allowed to each person as a
deduction in computing Georgia taxable income.
(2)
An exemption of $2,700.00 shall be allowed as a deduction in computing Georgia
taxable income for
each
taxpayer other than a taxpayer who files a joint
return
all taxpayers
other than taxpayers who qualify for the exemption provided for in paragraph (1)
of this subsection.
(3)(A)
For taxable years beginning on or after January 1, 1994, and prior to January 1,
1995, an exemption of $2,000.00 for each dependent of a taxpayer shall be
allowed as a deduction in computing Georgia taxable income of the
taxpayer.
(B)
For taxable years beginning on or after January 1, 1995, and prior to January 1,
1998, an exemption of $2,500.00 for each dependent of a taxpayer shall be
allowed as a deduction in computing Georgia taxable income of the
taxpayer.
(C)
For taxable years beginning on or after January 1, 1998, an exemption of
$2,700.00 for each dependent of a taxpayer shall be allowed as a deduction in
computing Georgia taxable income of the taxpayer.
(4)(3)
Commencing with the taxable year beginning January 1, 2003, an exemption of
$3,000.00 for each dependent of a taxpayer shall be allowed as a deduction in
computing Georgia taxable income of the taxpayer."
SECTION
2-2.
Said
title is further amended by revising paragraph (5) of subsection (a) of Code
Section 48-7-27, relating to the computation of taxable net income, as
follows:
"(5)(A)
Retirement income otherwise included in Georgia taxable net income shall be
subject to an exclusion amount as follows:
(i)
For taxable years beginning on or after January 1, 1989, and prior to January 1,
1990, retirement income not to exceed an exclusion amount of $8,000.00 per year
received from any source;
(ii)
For taxable years beginning on or after January 1, 1990, and prior to January 1,
1994, retirement income not to exceed an exclusion amount of $10,000.00 per year
received from any source;
(iii)
For taxable years beginning on or after January 1, 1994, and prior to January 1,
1995, retirement income from any source not to exceed an exclusion amount of
$11,000.00;
(iv)
For taxable years beginning on or after January 1, 1995, and prior to January 1,
1999, retirement income from any source not to exceed an exclusion amount of
$12,000.00;
(v)
For taxable years beginning on or after January 1, 1999, and prior to January 1,
2000, retirement income from any source not to exceed an exclusion amount of
$13,000.00;
(vi)
For taxable years beginning on or after January 1, 2000, and prior to January 1,
2001, retirement income not to exceed an exclusion amount of $13,500.00 per year
received from any source;
(vii)
For taxable years beginning on or after January 1, 2001, and prior to January 1,
2002, retirement income from any source not to exceed an exclusion amount of
$14,000.00;
(viii)
For taxable years beginning on or after January 1, 2002, and prior to January 1,
2003, retirement income from any source not to exceed an exclusion amount of
$14,500.00;
(ix)
For taxable years beginning on or after January 1, 2003, and prior to January 1,
2006, retirement income from any source not to exceed an exclusion amount of
$15,000.00;
(x)
For taxable years beginning on or after January 1, 2006, and prior to January 1,
2007, retirement income from any source not to exceed an exclusion amount of
$25,000.00;
(xi)
For taxable years beginning on or after January 1, 2007, and prior to January 1,
2008, retirement income from any source not to exceed an exclusion amount of
$30,000.00;
(xii)
For taxable years beginning on or after January 1, 2008, and prior to January 1,
2012, retirement income from any source not to exceed an exclusion amount of
$35,000.00;
and
(xiii)
For taxable years beginning on or after January 1, 2012,
and prior
to January 1, 2013, retirement income from
any source not to exceed an exclusion amount of $35,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (i) or (ii) of
subparagraph (D) of this paragraph or an amount of $65,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (iii) of subparagraph
(D) of this
paragraph;.
(xiv)
For taxable years beginning on or after January 1, 2013, and prior to January 1,
2014, retirement income from any source not to exceed an exclusion amount of
$35,000.00 for each taxpayer meeting the eligibility requirement set forth in
division (i) or (ii) of subparagraph (D) of this paragraph or an amount of
$100,000.00 for each taxpayer meeting the eligibility requirement set forth in
division (iii) of subparagraph (D) of this paragraph;
(xv)
For taxable years beginning on or after January 1, 2014, and prior to January 1,
2015, retirement income from any source not to exceed an exclusion amount of
$35,000.00 for each taxpayer meeting the eligibility requirement set forth in
division (i) or (ii) of subparagraph (D) of this paragraph or an amount of
$150,000.00 for each taxpayer meeting the eligibility requirement set forth in
division (iii) of subparagraph (D) of this paragraph;
(xvi)
For taxable years beginning on or after January 1, 2015, and prior to January 1,
2016, retirement income from any source not to exceed an exclusion amount of
$35,000.00 for each taxpayer meeting the eligibility requirement set forth in
division (i) or (ii) of subparagraph (D) of this paragraph or an amount of
$200,000.00 for each taxpayer meeting the eligibility requirement set forth in
division (iii) of subparagraph (D) of this paragraph; and
(xvii)
For taxable years beginning on or after January 1, 2016, retirement income from
any source not to exceed an exclusion amount of $35,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (i) or (ii) of
subparagraph (D) of this paragraph or an exclusion of all retirement income from
any source for each taxpayer meeting the eligibility requirement set forth in
division (iii) of subparagraph (D) of this paragraph.
(B)
In the case of a married couple filing jointly, each spouse shall if otherwise
qualified be individually entitled to exclude retirement income received by that
spouse up to the exclusion amount.
(C)
The exclusions provided for in this paragraph shall not apply to or affect and
shall be in addition to those adjustments to net income provided for under any
other paragraph of this subsection.
(D)
A taxpayer shall be eligible for the exclusions granted by this paragraph only
if the taxpayer:
(i)
Is 62 years of age or older but less than 65 years of age during any part of the
taxable year; or
(ii)
Is permanently and totally disabled in that the taxpayer has a medically
demonstrable disability which is permanent and which renders the taxpayer
incapable of performing any gainful occupation within the taxpayer's competence;
or
(iii)
Is 65 years of age or older during any part of the year.
(E)
For the purposes of this paragraph, retirement income shall include but not be
limited to interest income, dividend income, net income from rental property,
capital gains income, income from royalties, income from pensions and annuities,
and no more than $4,000.00 of an individual's earned income. Earned income in
excess of $4,000.00, including but not limited to net business income earned by
an individual from any trade or business carried on by such individual, wages,
salaries, tips, and other employer compensation, shall not be regarded as
retirement income. The receipt of earned income shall not diminish any
taxpayer's eligibility for the retirement income exclusions allowed by this
paragraph except to the extent of the express limitation provided in this
subparagraph.
(F)
The commissioner shall by regulation require proof of the eligibility of the
taxpayer for the exclusions allowed by this paragraph.
(G)
The commissioner shall by regulation provide that for taxable years beginning on
or after January 1, 1989, and ending before October 1, 1990, penalty and
interest may be waived or reduced for any taxpayer whose estimated tax payments
and tax withholdings are less than 70 percent of such taxpayer's Georgia income
tax liability if the commissioner determines that such underpayment or
deficiency is due to an increase in net taxable income attributable directly to
amendments to this paragraph or paragraph (4) of this subsection enacted at the
1989 special session of the General Assembly and not due to willful neglect or
fraud;"
PART
III
SECTION 3-1.
SECTION 3-1.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by revising Code Section 48-7-29.12, relating to tax credits for
qualified donation of real property, carryover of credit, appraisals, transfer
of credit, and penalty, as follows:
"48-7-29.12.
(a)
As used in this Code section, the term:
(1)
'Conservation
easement' means a nonpossessory interest in real property imposing limitations
or affirmative obligations, the purposes of which are consistent with at least
two conservation purposes.
(2)
'Conservation purpose' means any of the following:
(A)
Water quality protection for wetlands, rivers, streams, or lakes;
(B)
Protection of wildlife habitat consistent with state wildlife conservation
policies;
(C)
Protection of outdoor recreation consistent with state outdoor recreation
policies;
(D)
Protection of prime agricultural or forestry lands; and
(E)
Protection of cultural sites, heritage corridors, or archeological and historic
resources.
(3)
'Donated property' means the real property of which a qualified donation is made
pursuant to this Code section.
(4)
'Eligible donor' means any person who owns an interest in a qualified
donation.
(5)
'Fair market value' means the value of the donated property
established
by a property appraisal or appraisals meeting the requirements of Section 170 of
Title 26 of the United States Code, to be submitted in such manner as the
commissioner may by regulation require
as determined
pursuant to subsections (c.1) and (c.2) of this Code
section.
(2)(6)
'Qualified donation' means the fee simple conveyance to the state; a county, a
municipality, or a consolidated government of this state;
to
the federal government; or a bona fide charitable nonprofit organization
qualified under the Internal Revenue Code
and, beginning
on January 1, 2014, accredited by the Land Trust Accreditation
Commission of 100 percent of all right,
title, and interest in the entire parcel of donated real property,
which
and
the donation is accepted by such state,
county, municipality, consolidated government, federal government, or bona fide
charitable nonprofit organization
for use in a
manner consistent with at least two conservation
purposes. Such term shall also include
the donation to and acceptance by the state; a county, a municipality, or a
consolidated government of this state;
to
the federal government; or a bona fide charitable nonprofit organization
qualified under the Internal Revenue Code
and, beginning
on January 1, 2014, accredited by the Land Trust Accreditation
Commission of
an interest
in real property which qualifies as a
conservation easement
under
paragraph (4) of Code Section 12-6A-2.
Any real property which is otherwise required to be dedicated pursuant to local
government regulations or ordinances or to increase building density levels
shall not be eligible as a qualified donation under this Code section. Any real
property which is used for or associated with the playing of golf or is planned
to be so used or associated shall not be eligible as a qualified donation under
this Code section.
(3)
'Eligible donor' means any person who owns an interest in a qualified
donation.
(4)(7)
'Related person' has the meaning provided by Code Section
48-7-28.3.
(5)(8)
'Substantial valuation misstatement' means a valuation such that the
claimed
value of any property
claimed on
any return of tax imposed under this chapter, or on any claim for refund of such
tax,
on the
appraisal as submitted to the State Properties
Commission is 150 percent or more of the
amount determined to be the correct amount of such valuation
pursuant to
subsections (c.1) and (c.2) of this Code
section.
(b)(1)
A taxpayer shall be allowed a state income tax credit against the tax imposed by
Code Section 48-7-20 or Code Section 48-7-21 for each qualified donation
of real
property for conservation purposes
under this
Code section.
(2)
Except as otherwise provided in paragraph (3) of this subsection and in
subsection (d) of this Code section, such credit shall be limited to an amount
not to exceed the lesser of $500,000.00, 25 percent of the fair market value of
the donated real property as fair market value is established for the year in
which the donation occurred, or 25 percent of the difference between the fair
market value and the amount paid to the donor if the donation is effected by a
sale of property for less than fair market value as established for the year in
which the donation occurred.
(3)
Except as otherwise provided in subsection (d) of this Code section, in the case
of a taxpayer whose net income is determined under Code Section 48-7-23, the
aggregate total credit allowed to all partners in a partnership shall be limited
to an amount not to exceed the lesser of
$1
million
$500,000.00,
25 percent of the fair market value of the donated real property as fair market
value is established for the year in which the donation occurred, or 25 percent
of the difference between the fair market value and the amount paid to the donor
if the donation is effected by a sale of property for less than fair market
value as established for the year in which the donation occurred.
(c)
No tax credit shall be allowed under this Code section unless the taxpayer files
with the taxpayer's income tax return
a copy of the
State Property Commission's determination
and a copy of a certification
issued
by the Department of Natural Resources that the donated property is suitable for
conservation
purposes.
and meets the
following additional requirements, where applicable:
(1)
Subdivision is prohibited for a donated property of less than 500 acres and
limited to one subdivision for a donated property of 500 acres or
more;
(2)
New construction on donated property of structures, roads, impoundments,
ditches, dumping, or any other activity that would harm the protected
conservation values of such donation is prohibited on such
property;
(3)
New construction on donated property within 150 feet of any perennial or
intermittent stream is prohibited;
(4)
A buffer of at least 100 feet on each side of any perennial streams on donated
property which ensures at least 75 percent tree canopy evenly distributed after
harvest is maintained and a buffer of at least 50 feet on each side of any
intermittent streams on donated property which ensures at least 75 percent tree
canopy evenly distributed after harvest is maintained;
(5)
Timber and agricultural activities undertaken on the donated property are
prohibited unless in accordance with best management practices published by the
State Forestry Commission or the Soil and Water Conservation Commission, as the
case may be;
(6)
New construction on donated property causing more than 1 percent of such
property's total surface area to be covered by impervious surfaces is
prohibited;
(7)
Mining on the property is prohibited; and
(8)
Planting on the donated property of non-native invasive species listed in
Category 1, Category 1 Alert, or Category 2 of the 'List of Non-Native Invasive
Plants in Georgia' developed by the Georgia Exotic Pest Council is
prohibited.
The
Board of Natural Resources shall promulgate any rules and regulations necessary
to implement and administer this subsection, including, but not limited to,
policies to guide the determination of whether or not donated property is
suitable for conservation purposes. A final determination by the Department of
Natural Resources with respect to the suitability of donated property for
conservation purposes shall be subject to review and appeal under Chapter 13 of
Title 50, the 'Georgia Administrative Procedure Act.'
(c.1)
For each application for certification, the Department of Natural Resources
shall require submission of an appraisal of the qualified donation by the
taxpayer along with a nonrefundable $5,000.00 application fee; provided,
however, that the nonrefundable application fee for property donated to the
state shall be 1 percent of the total value of the donation, unless such
donation is being made to qualify the state for a federal or state grant. The
appraisal required by this subsection shall be a full narrative appraisal and
include:
(1)
A certification page, as established by the Uniform Standards of Professional
Appraisal Practice, signed by the appraiser; and
(2)
An affidavit signed by the appraiser which includes a statement
specifying:
(A)
The value of the unencumbered property, the total value of the qualified
donation in gross, and an accompanying statement identifying the methods used to
determine such values;
(B)
Whether a subdivision analysis was used in the appraisal;
(C)
Whether the landowner or related persons own any other property, the value of
which is increased as a result of the donation; and
(D)
That the appraiser is certified pursuant to Chapter 39A of Title
43.
Appraisals
received by the Department of Natural Resources shall be forwarded to the State
Properties Commission for review. The State Properties Commission shall approve
the appraisal amount submitted or recommend a lower amount based on its review
and inform the Department of Natural Resources of its determination. The State
Properties Commission shall be authorized to promulgate any rules and
regulations necessary to administer the provisions of this subsection. Any
appraisal deemed to contain a substantial valuation misstatement shall be
submitted to the Georgia Real Estate Commission for further investigation and
disciplinary action. Upon receipt of the State Properties Commission's
determination, the Department of Natural Resources may proceed with the
certification process.
(c.2)
The Board of Natural Resources shall promulgate any rules and regulations
necessary to implement and administer subsections (c) and (c.1) of this Code
section. A final determination by the Department of Natural Resources or the
State Properties Commission shall be subject to review and appeal under Chapter
13 of Title 50, the 'Georgia Administrative Procedure Act.'
(d)(1)
In no event shall the total amount of any tax credit under this Code section for
a taxable year exceed the taxpayer's income tax liability. In no event shall
the total amount of the tax credit allowed to a taxpayer under subsection (b) of
this Code section exceed $250,000.00 with respect to tax liability determined
under Code Section 48-7-20 or $500,000.00 with respect to tax liability
determined under Code Section 48-7-21. Any unused tax credit shall be allowed
to be carried forward to apply to the taxpayer's succeeding ten years' tax
liability. However, the amount in excess of such annual dollar limits shall not
be eligible for carryover to the taxpayer's succeeding years' tax liability nor
shall such excess amount be claimed by or reallocated to any other taxpayer. No
such tax credit shall be allowed the taxpayer against prior years' tax
liability.
(2)
Only one qualified donation may be made with respect to any real property that
was, in the
year
five
years prior to donation, within the same
tax parcel of record, except that a subsequent donation may be made by a person
who is not a related person with respect to any prior eligible donors of any
portion of such tax parcel.
(d.1)
Any tax credits under this Code section earned by a taxpayer
in the taxable
years beginning on or after January 1,
2013, and previously claimed but not used
by such taxpayer against such taxpayer's income tax may be transferred or sold
in whole or in part by such taxpayer to another Georgia taxpayer, subject to the
following conditions:
(1)
The transferor may make only a single transfer or sale of tax credits earned in
a taxable year; however, the transfer or sale may involve one or more
transferees;
(1)(2)
The transferor shall submit to the department a written notification of any
transfer or sale of tax credits within 30 days after the transfer or sale of
such tax credits. The notification shall include such transferor's tax credit
balance prior to transfer, the remaining balance after transfer, all tax
identification numbers for each transferee, the date of transfer, the amount
transferred, and any other information required by the department;
(2)(3)
Failure to comply with this subsection shall result in the disallowance of the
tax credit until the taxpayer is in full compliance;
(3)(4)
In no event
shall the amount of the tax credit under this subsection claimed and allowed for
a taxable year exceed the transferee's income tax
liability. Any unused credit may be
carried forward to subsequent taxable years provided that the transfer or sale
of this tax credit does not extend the time in which such tax credit can be
used. The carry-forward period for tax credit that is transferred or sold shall
begin on the date on which the tax credit was originally earned;
and
(4)(5)
A transferee shall have only such rights to claim and use the tax credit that
were available to the transferor at the time of the transfer. To the extent
that such transferor did not have rights to claim and use the tax credit at the
time of the transfer, the department shall either disallow the tax credit
claimed by the transferee or recapture the tax credit from the transferee. The
transferee's recourse is against the transferor.
(e)(1)
Whenever:
(A)
Any person prepares an appraisal of the value of property and knows, or
reasonably should have known, that the appraisal would be used in connection
with a return or a claim for refund claiming a tax credit under this Code
section; and
(B)
The claimed value of the property
on a return
or claim for refund which is based on such
appraisal as
submitted to the State Properties
Commission results in a substantial
valuation misstatement with respect to such property for purposes of claiming a
tax credit under this Code section,
then
such person shall pay a penalty in the amount determined under paragraph (2) of
this subsection.
(2)
The amount of the penalty imposed under paragraph (1) of this subsection on any
person with respect to an appraisal shall be equal to the lesser
of:
(A)
The greater of:
(i)
Twenty-five percent of the difference between the amount of the tax credit
claimed on the taxpayer's return or claim for refund and the amount of the tax
credit to which the taxpayer is actually entitled, to the extent the difference
is attributable to the misstatement described in
subparagraph
(e)(1)(B) of this Code section
paragraph (1)
of this subsection; or
(ii)
One
Ten
thousand dollars; or
(B)
One hundred twenty-five percent of the gross income received by the person
described in
subparagraph
(e)(1)(A) of this Code section
paragraph (1)
of this subsection for the preparation of
the appraisal.
(3)
No penalty shall be imposed under paragraph (1) of this subsection if the person
establishes to the satisfaction of the commissioner that the value established
in the appraisal was more likely than not the proper value.
(4)
Except as otherwise provided, the penalty provided by this subsection shall be
in addition to any other penalties provided by law. The amount of any penalty
under this subsection shall be assessed within three years after the return or
claim for refund with respect to which the penalty is assessed was filed, and no
proceeding in court without assessment for the collection of such penalty shall
be begun after the expiration of such period. Any claim for refund of an
overpayment of the penalty assessed under this subsection shall be filed within
three years from the time the penalty was paid.
(f)
No credit
shall be allowed under this Code section with respect to any amount deducted
from taxable net income by the taxpayer as a charitable
contribution.
(g)
The commissioner shall promulgate any rules and regulations necessary to
implement and administer this Code section."
SECTION
3-2.
Title
44 of the Official Code of Georgia Annotated, relating to property, is amended
by adding a new subsection to Code Section 44-10-3, relating to the creation or
alteration of conservation easements, as follows:
"(f)
No county, municipality, or consolidated government shall hold a conservation
easement unless the encumbered real property lies at least partly within the
jurisdictional boundaries of such county, municipality, or consolidated
government."
PART
IV
SECTION 4-1.
SECTION 4-1.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by revising paragraph (73) of Code Section 48-8-3, relating to
exemptions from sales and use tax, as follows:
"(73)(A)
The sale or lease of production equipment or production services for use in this
state by a certified film producer or certified film production company for
qualified production activities.
(B)
As used in this paragraph, the term:
(i)
'Film producer' means any person engaged in the business of organizing and
supervising qualified production activities.
(ii)
'Film production company' means any company that employs one or more film
producers and whose goal is to engage in film production activity.
(iii)
'Production equipment' means items purchased or leased for use exclusively in
qualified production activities in Georgia, including, but not limited to,
cameras, camera supplies, camera accessories, lighting equipment, cables, wires,
generators, motion picture film and videotape stock, cranes, booms, dollies, and
teleprompters.
(iv)
'Production services' means services purchased for use exclusively in qualified
production activities in Georgia, including, but not limited to, digital or tape
editing, film processing, transfers of film to tape or digital format, sound
mixing, computer graphics services, special effects services, animation
services, and script production.
(v)
'Qualified production activities' means the production or post production of
film or video projects such as feature films, series, pilots, movies for
television, commercials, music videos, or sound recordings used in feature
films, series, pilots, or movies for television, for which the film producer or
film production company will be compensated and which are intended for
nation-wide commercial distribution.
(C)
Any person making a sale of production equipment or production services to a
film producer or film production company as specified in this paragraph shall
collect the tax imposed on the sale by this article unless the purchaser
furnishes such seller with a certificate issued by the commissioner certifying
that the purchaser is entitled to purchase the production equipment or
production services without paying the tax. As a condition precedent to the
issuance of the certificate, film producers and film production companies shall
submit an application to the commissioner for designation as a certified film
producer or certified film production company. Such application shall not be
valid without prior written approval by the Georgia Film and Videotape Office of
the Department of Economic Development
Reserved;"
PART
V
SECTION 5-1.
SECTION 5-1.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by revising paragraphs (25), (26), (27), (28), (29), (29.1), (34),
(34.3), (35), (37), (49), (64), (77), (79), and (90) of Code Section 48-8-3,
relating to exemptions from sales and use tax, as follows:
"(25)
The sale of
seed; fertilizers; insecticides; fungicides; rodenticides; herbicides;
defoliants; soil fumigants; plant growth regulating chemicals;
desiccants,
including, but not limited to, shavings and sawdust from wood, peanut hulls,
fuller's earth, straw, and hay; and feed for livestock, fish, or poultry when
used either directly in tilling the soil or in animal, fish, or poultry
husbandry
Reserved;
(26)
The sale to
persons engaged primarily in producing farm crops for sale of machinery and
equipment which is used exclusively for irrigation of farm crops including, but
not limited to, fruit, vegetable, and nut
crops
Reserved;
(27)
The sale of
sugar used as food for honeybees kept for the commercial production of honey,
beeswax, and honeybees when the commissioner's prior approval is
obtained
Reserved;
(28)
The sale of
cattle, hogs, sheep, horses, poultry, or bees when sold for breeding
purposes
Reserved;
(29)
The sale of
the following types of agricultural machinery:
(A)
Machinery and equipment for use on a farm in the production of poultry and eggs
for sale;
(B)
Machinery and equipment used in the hatching and breeding of poultry and the
breeding of livestock;
(C)
Machinery and equipment for use on a farm in the production, processing, and
storage of fluid milk for sale;
(D)
Machinery and equipment for use on a farm in the production of livestock for
sale;
(E)
Machinery and equipment which is used by a producer of poultry, eggs, fluid
milk, or livestock for sale for the purpose of harvesting farm crops to be used
on the farm by that producer as feed for poultry or livestock;
(F)
Machinery which is used directly in tilling the soil or in animal husbandry when
the machinery is incorporated for the first time into a new farm unit engaged in
tilling the soil or in animal husbandry in this state;
(G)
Machinery which is used directly in tilling the soil or in animal husbandry when
the machinery is incorporated as additional machinery for the first time into an
existing farm unit already engaged in tilling the soil or in animal husbandry in
this state;
(H)
Machinery which is used directly in tilling the soil or in animal husbandry when
the machinery is bought to replace machinery in an existing farm unit already
engaged in tilling the soil or in animal husbandry in this state;
(I)
Rubber-tired farm tractors and attachments to the tractors which are sold to
persons engaged primarily in producing farm crops for sale and which are used
exclusively in tilling, planting, cultivating, and harvesting farm crops, and
equipment used exclusively in harvesting farm crops or in processing onion crops
which are sold to persons engaged primarily in producing farm crops for sale.
For the purposes of this subparagraph, the term 'farm crops' includes only those
crops which are planted and harvested within a 12 month period; and
(J)
Pecan sprayers, pecan shakers, and other equipment used in harvesting pecans
which is sold to persons engaged in the growing, harvesting, and production of
pecans
Reserved;
(29.1)
The sale or
use of any off-road equipment and related attachments which are sold to or used
by persons engaged primarily in the growing or harvesting of timber and which
are used exclusively in site preparation, planting, cultivating, or harvesting
timber. Equipment used in harvesting shall include all off-road equipment and
related attachments used in every forestry procedure starting with the severing
of a tree from the ground until and including the point at which the tree or its
parts in any form has been loaded in the field in or on a truck or other vehicle
for transport to the place of use. Such off-road equipment shall include, but
not be limited to, skidders, feller bunchers, debarkers, delimbers, chip
harvesters, tub-grinders, woods cutters, chippers of all types, loaders of all
types, dozers, and motor graders and the related
attachments
Reserved;"
"(34)
The sale of
the following types of manufacturing machinery:
(A)
Machinery or equipment which is necessary and integral to the manufacture of
tangible personal property when the machinery or equipment is bought to replace
or upgrade machinery or equipment in a manufacturing plant presently existing in
this state and machinery or equipment components which are purchased to upgrade
machinery or equipment which is necessary and integral to the manufacture of
tangible personal property in a manufacturing plant;
(B)
Machinery or equipment which is necessary and integral to the manufacture of
tangible personal property when the machinery or equipment is used for the first
time in a new manufacturing plant located in this state;
(C)
Machinery or equipment which is necessary and integral to the manufacture of
tangible personal property when the machinery or equipment is used as additional
machinery or equipment for the first time in a manufacturing plant presently
existing in this state; and
(D)
Any person making a sale of machinery or equipment for the purpose specified in
subparagraph (B) of this paragraph shall collect the tax imposed on the sale by
this article unless the purchaser furnishes him with a certificate issued by the
commissioner certifying that the purchaser is entitled to purchase the machinery
or equipment without paying the tax. As a condition precedent to the issuance
of the certificate, the commissioner, at the commissioner's discretion, may
require a good and valid bond with a surety company authorized to do business in
this state as surety or may require legal securities, in an amount fixed by the
commissioner, conditioned upon payment by the purchaser of all taxes due under
this article in the event it should be determined that the sale fails to meet
the requirements of this subparagraph
Reserved;"
"(34.3)(A)
The sale or use of repair or replacement parts, machinery clothing or
replacement machinery clothing, molds or replacement molds, dies or replacement
dies, waxes, and tooling or replacement tooling for machinery which is necessary
and integral to the manufacture of tangible personal property in a manufacturing
plant presently existing in this state.
(B)
The commissioner shall promulgate rules and regulations to implement and
administer this paragraph
Reserved;"
"(35)(A)
The sale, use, storage, or consumption of:
(i)
Industrial materials for future processing, manufacture, or conversion into
articles of tangible personal property for resale when the industrial materials
become a component part of the finished product;
(ii)
Industrial materials other than machinery and machinery repair parts that are
coated upon or impregnated into the product at any stage of its processing,
manufacture, or conversion; or
(iii)
Materials, containers, labels, sacks, or bags used for packaging tangible
personal property for shipment or sale. To qualify for the packaging exemption,
the items shall be used solely for packaging and shall not be purchased for
reuse;
(B)
As used in this paragraph, the term 'industrial materials' does not include
natural or artificial gas, oil, gasoline, electricity, solid fuel, ice, or other
materials used for heat, light, power, or refrigeration in any phase of the
manufacturing, processing, or converting process
Reserved;"
"(37)
The sale of
machinery and equipment for use in combating air and water pollution and any
industrial material bought for further processing in the manufacture of tangible
personal property for sale or any part of the industrial material or by-product
thereof which becomes a wasteful product contributing to pollution problems and
which is used up in a recycling or burning process. Any person making a sale of
machinery and equipment for the purposes specified in this paragraph shall
collect a tax imposed on the sale by this article unless the purchaser furnishes
the person making the sale with a certificate issued by the commissioner
certifying that the purchaser is entitled to purchase the machinery, equipment,
or industrial material without paying the
tax
Reserved;"
"(49)
Sales of
liquefied petroleum gas or other fuel used in a structure in which broilers,
pullets, or other poultry are raised
Reserved;"
"(64)
The sale of
electricity or other fuel for the operation of an irrigation system which is
used on a farm exclusively for the irrigation of
crops
Reserved;"
"(77)
Sales of
liquefied petroleum gas or other fuel used in a structure in which plants,
seedlings, nursery stock, or floral products are raised primarily for the
purposes of making sales of such plants, seedlings, nursery stock, or floral
products for resale
Reserved;"
"(79)
The sale or
use of ice for chilling poultry or vegetables in processing for market and for
chilling poultry or vegetables in storage rooms, compartments, or delivery
trucks
Reserved;"
"(90)
The sale of
electricity to a manufacturer located in this state used directly in the
manufacture of a product if the direct cost of such electricity exceeds 50
percent of the cost of all materials, including electricity, used directly in
the product
Reserved;
or"
SECTION
5-2.
Said
title is further amended by adding a new Code section to read as
follows:
"48-8-3.2.
(a)
As used in this Code section, the term:
(1)
'Consumable supplies' means tangible personal property, other than machinery,
equipment, and industrial materials, that is consumed or expended during the
manufacture of tangible personal property. The term includes, but is not
limited to, water treatment chemicals for use in, on, or in conjunction with
machinery or equipment and items that are readily disposable. The term excludes
packaging supplies and energy.
(2)
'Energy' means natural or artificial gas, oil, gasoline, electricity, solid
fuel, wood, waste, ice, steam, water, and other materials necessary and integral
for heat, light, power, refrigeration, climate control, processing, or any other
use in any phase of the manufacture of tangible personal property. The term
excludes energy purchased by a manufacturer that is primarily engaged in
producing electricity for resale.
(3)
'Equipment' means tangible personal property, other than machinery, industrial
materials, and consumable supplies. The term includes durable devices and
apparatuses that are generally designed for long-term continuous or repetitive
use. Examples of equipment include, but are not limited to, machinery clothing,
cones, cores, pallets, hand tools, tooling, molds, dies, waxes, jigs, patterns,
conveyors, safety devices, and pollution control devices. The term includes
components and repair or replacement parts. The term excludes real
property.
(4)
'Fixtures' means tangible personal property that has been installed or attached
to land or to any building thereon and that is intended to remain permanently in
its place. A consideration for whether tangible property is a fixture is
whether its removal would cause significant damage to such property or to the
real property to which it is attached. Fixtures are classified as real
property. Examples of fixtures include, but are not limited to, plumbing,
lighting fixtures, slabs, and foundations.
(5)
'Industrial materials' means materials for future processing, manufacture, or
conversion into articles of tangible personal property for resale when the
industrial materials become a component part of the finished product. The term
also means materials that are coated upon or impregnated into the product at any
stage of its processing, manufacture, or conversion, even though such materials
do not remain a component part of the finished product for sale. The term
includes raw materials.
(6)
'Local sales and use tax' means any sales tax, use tax, or local sales and use
tax which is levied and imposed in an area consisting of less than the entire
state, however authorized, including, but not limited to, such taxes authorized
by or pursuant to constitutional amendment; by or pursuant to Section 25 of an
Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the
'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; and by or pursuant
to any article of this chapter.
(7)
'Machinery' means an assemblage of parts that transmits force, motion, and
energy one to the other in a predetermined manner to accomplish a specific
objective. The term includes a machine and all of its components, including,
but not limited to, belts, pulleys, shafts, gauges, gaskets, valves, hoses,
pipes, wires, blades, bearings, operational structures attached to the machine,
including stairways and catwalks, or other devices that are required to regulate
or control the machine, allow access to the machine, or enhance or alter its
productivity or functionality. The term includes repair or replacement parts.
The term excludes real property and consumable supplies.
(8)
'Machinery clothing' means felts, screen plates, wires, or any other items used
to carry, form, or dry work in process through the manufacture of tangible
personal property.
(9)
'Manufacture of tangible personal property,' used synonymously with the term
'manufacturing,' means a manufacturing operation, series of continuous
manufacturing operations, or series of integrated manufacturing operations
engaged in at a manufacturing plant or among manufacturing plants to change,
process, transform, or convert industrial materials by physical or chemical
means into articles of tangible personal property for sale, for promotional use,
or for further manufacturing that have a different form, configuration, utility,
composition, or character. The term includes, but is not limited to, the
storage, preparation, or treatment of industrial materials; assembly of finished
units of tangible personal property to form a new unit or units of tangible
personal property; movement of industrial materials and work in process from one
manufacturing operation to another; temporary storage between two points in a
continuous manufacturing operation; random and sample testing that occurs at a
manufacturing plant; and a packaging operation that occurs at a manufacturing
plant.
(10)
'Manufacturer' means a person or business, or a location of a person or
business, that is engaged in the manufacture of tangible personal property for
sale or further manufacturing. To be considered a manufacturer, the person or
business, or the location of a person or business, must be:
(A)
Classified as a manufacturer under the 2007 North American Industrial
Classification System Sectors 21, 31, 32, or 33, or North American Industrial
Classification System industry code 22111 or specific code 511110;
or
(B)
Generally regarded as being a manufacturer.
Businesses
that are primarily engaged in providing personal or professional services or in
the operation of retail outlets, generally including, but not limited to,
grocery stores, pharmacies, bakeries, or restaurants, are not considered
manufacturers.
(11)
'Manufacturing plant' means any facility, site, or other area where a
manufacturer engages in the manufacture of tangible personal
property.
(12)
'Packaging operation' means bagging, boxing, crating, canning, containerizing,
cutting, measuring, weighing, wrapping, labeling, palletizing, or other similar
processes necessary to prepare or package manufactured products in a manner
suitable for sale or delivery to customers as finished goods or suitable for the
transport of work in process at or among manufacturing plants for further
manufacturing, and the movement of such finished goods or work in process to a
storage or distribution area at a manufacturing plant.
(13)
'Packaging supplies' means materials, including, but not limited to, containers,
labels, sacks, boxes, wraps, fillers, cones, cores, pallets, or bags, used in a
packaging operation solely for packaging tangible personal
property.
(14)
'Real property' means land, any buildings thereon, and any fixtures attached
thereto.
(15)
'Repair or replacement part' means a part for any machinery or equipment that is
necessary and integral to the manufacture of tangible personal property. Repair
or replacement parts must be used to maintain, repair, restore, install, or
upgrade such machinery or equipment that is necessary and integral to the
manufacture of tangible personal property. Examples of repair and replacement
parts may include, but are not limited to, oils, greases, hydraulic fluids,
coolants, lubricants, machinery clothing, molds, dies, waxes, jigs, and other
interchangeable tooling.
(16)
'Substantial purpose' means the purpose for which an item of tangible personal
property is used more than one-third of the time of the total amount of time
that the item is in use; alternatively, instead of time, the purpose may be
measured in terms of other applicable criteria, including, but not limited to,
the number of items produced.
(b)
The sale, use, or storage of machinery or equipment which is necessary and
integral to the manufacture of tangible personal property and the sale, use,
storage, or consumption of industrial materials or packaging supplies shall be
exempt from all sales and use taxation.
(c)(1)
Except as otherwise provided in paragraph (4) of this subsection, the sale, use,
storage, or consumption of energy which is necessary and integral to the
manufacture of tangible personal property at a manufacturing plant in this state
shall be exempt from all sales and use taxation except for the sales and use tax
for educational purposes levied pursuant to Part 2 of Article 3 of this chapter
and Article VIII, Section VI, Paragraph IV of the Constitution and except for
local sales and use taxes for educational purposes authorized by or pursuant to
local constitutional amendment. This exemption shall be phased in over a
four-year period as follows:
(A)
For the period commencing January 1, 2013, and concluding at the last moment of
December 31, 2013, such sale, use, storage, or consumption of energy shall be
exempt from an amount equal to 25 percent of the total amount of state sales and
use tax that would be collected at the rate of 4 percent on such sale, use,
storage, or consumption of energy and shall be exempt from an amount equal to 25
percent of the total amount of each local sales and use tax that would be
collected at the rate of 1 percent on such sale, use, storage, or consumption of
energy;
(B)
For the period commencing January 1, 2014, and concluding at the last moment of
December 31, 2014, such sale, use, storage, or consumption of energy shall be
exempt from an amount equal to 50 percent of the total amount of state sales and
use tax that would be collected at the rate of 4 percent on such sale, use,
storage, or consumption of energy and shall be exempt from an amount equal to 50
percent of the total amount of each local sales and use tax that would be
collected at the rate of 1 percent on such sale, use, storage, or consumption of
energy;
(C)
For the period commencing January 1, 2015, and concluding at the last moment of
December 31, 2015, such sale, use, storage, or consumption of energy shall be
exempt from an amount equal to 75 percent of the total amount of state sales and
use tax that would be collected at the rate of 4 percent on such sale, use,
storage, or consumption of energy and shall be exempt from an amount equal to 75
percent of the total amount of each local sales and use tax that would be
collected at the rate of 1 percent on such sale, use, storage, or consumption of
energy; and
(D)
On or after January 1, 2016, such sale, use, storage, or consumption of energy
shall be fully exempt from such sales and use taxation.
(2)(A)
Any person making a sale of items qualifying for exemption under paragraph (1)
of this subsection shall be relieved of the burden of proving such qualification
if the person making the sale receives a certificate from the purchaser
certifying that the purchase is exempt under this subsection.
(B)
Any person who qualifies for the exemption under paragraph (1) of this
subsection shall notify and certify to the person making the qualified sale that
such exemption is applicable to the sale.
(3)
With respect to services which are regularly billed on a monthly basis, the
exemption under paragraph (1) of this subsection shall become effective with
respect to and the exemption shall apply to services billed on or after the
effective date of this Code section.
(4)
If a competitive project of regional significance under paragraph (92) of Code
Section 48-8-3 is started in a county or municipality, it shall not be subject
to the phase-in period contained in subparagraphs (A), (B), and (C) of paragraph
(1) of this subsection, but such project shall receive the full exemption
provided for in subparagraph (D) of paragraph (1) of this subsection
notwithstanding the January 1, 2016, limitation in that
subparagraph.
(d)
The exemptions under this Code section shall be applied as follows:
(1)
The manufacture of tangible personal property commences as industrial materials
are received at a manufacturing plant and concludes once the packaging operation
is complete and the tangible personal property is ready for sale or shipment,
regardless of whether the manufacture of tangible personal property occurs at
one or more separate manufacturing plants;
(2)
For machinery or equipment that has multiple purposes, some purposes necessary
and integral to the manufacture of tangible personal property and some purposes
not necessary and integral to the manufacture of tangible personal property, the
substantial purpose of such machinery or equipment will prevail for purposes of
determining the eligibility for exemption. The commissioner shall consider any
reasonable methodology for measuring the substantial purpose of machinery or
equipment for which the substantial purpose is not readily
identifiable;
(3)
For leased machinery or equipment that did not qualify for an exemption at the
date of lease inception and subsequently qualifies for the exemption under this
Code section, the exemption shall apply to all lease payments made subsequent to
such qualification;
(4)
Miscellaneous spare parts for which the ultimate use of the spare parts is
unknown at the time of purchase are eligible for the exemption as repair or
replacement parts. However, use tax must be accrued and remitted if spare parts
are withdrawn from the inventory of spare parts and used for any purpose other
than to maintain, repair, restore, install, or upgrade machinery or equipment
that is necessary and integral to the manufacture of tangible personal property;
and
(5)
Energy necessary and integral to the manufacture of tangible personal property
includes energy used to operate machinery or equipment, to create conditions
necessary for the manufacture of tangible personal property, or to perform an
actual part of the manufacture of tangible personal properly; energy used in
administrative or other ancillary activities that are located and performed at
the manufacturing plant so long as such activities primarily benefit such
manufacture of tangible personal property; energy used in related operations
that convey, transport, handle, or store raw materials or finished goods at the
manufacturing plant; energy used for heating, cooling, ventilation,
illumination, fire safety or prevention, and personal comfort and convenience of
the manufacturer's employees at the manufacturing plant; and energy used for any
other purpose at a manufacturing plant.
(e)
Examples that qualify as necessary and integral to the manufacture of tangible
personal property include, but are not limited to:
(1)
Machinery or equipment used to convey or transport industrial materials, work in
process, consumable supplies, or packaging materials at or among manufacturing
plants or to convey and transport finished goods to a distribution or storage
point at the manufacturing plant. Specific examples may include, but are not
limited to, forklifts, conveyors, cranes, hoists, and pallet jacks;
(2)
Machinery or equipment used to gather, arrange, sort, mix, measure, blend, heat,
cool, clean, or otherwise treat, prepare, or store industrial materials for
further manufacturing;
(3)
Machinery or equipment used to control, regulate, heat, cool, or produce energy
for other machinery or equipment that is necessary and integral to the
manufacture of tangible personal property. Specific examples may include, but
are not limited to, boilers, chillers, condensers, water towers, dehumidifiers,
humidifiers, heat exchangers, generators, transformers, motor control centers,
solar panels, air dryers, and air compressors;
(4)
Testing and quality control machinery or equipment located at a manufacturing
plant used to test the quality of industrial materials, work in process, or
finished goods;
(5)
Starters, switches, circuit breakers, transformers, wiring, piping, and other
electrical components, including associated cable trays, conduit, and
insulation, located between a motor control center and exempt machinery or
equipment or between separate units of exempt machinery or
equipment;
(6)
Machinery or equipment used to maintain, clean, or repair exempt machinery or
equipment;
(7)
Machinery or equipment used to provide safety for the employees working at a
manufacturing plant, including, but not limited to, safety machinery and
equipment required by federal or state law, gloves, ear plugs, face masks,
protective eyewear, hard hats or helmets, or breathing apparatuses, regardless
of whether the items would otherwise be considered consumable
supplies;
(8)
Machinery or equipment used to condition air or water to produce conditions
necessary for the manufacture of tangible personal property, including pollution
control machinery or equipment and water treatment systems;
(9)
Pollution control, sanitizing, sterilizing, or recycling machinery or
equipment;
(10)
Industrial materials bought for further processing in the manufacture of
tangible personal property for sale or further processing or any part of the
industrial material or by-product thereof which becomes a wasteful product
contributing to pollution problems and which is used up in a recycling or
burning process;
(11)
Machinery or equipment used in quarrying and mining activities, including
blasting, extraction, and crushing; and
(12)
Energy used at a manufacturing
plant."
SECTION
5-3.
Said
title is further amended by adding a new Code section to read as
follows:
"48-8-3.3.
(a)
As used in this Code section, the term:
(1)(A)
'Agricultural machinery and equipment' means machinery and equipment used in the
production of agricultural products, including, but not limited to, machinery
and equipment used in the production of poultry and eggs for sale, including,
but not limited to, equipment used in the cleaning or maintenance of poultry
houses and the surrounding premises; in hatching and breeding of poultry and the
breeding of livestock and equine; in production, processing, and storage of
fluid milk for sale; in drying, ripening, cooking, further processing, or
storage of agricultural products, including, but not limited to, orchard crops;
in production of livestock and equine for sale; by a producer of poultry, eggs,
fluid milk, equine, or livestock for sale; for the purpose of harvesting
agricultural products to be used on the farm by that producer as feed for
poultry, equine, or livestock; directly in tilling the soil or in animal
husbandry when the machinery is incorporated for the first time or as additional
machinery for the first time into a new or an existing farm unit engaged in
tilling the soil or in animal husbandry in this state; directly in tilling the
soil or in animal husbandry when the machinery is bought to replace machinery in
an existing farm unit already engaged in tilling the soil or in animal husbandry
in this state; machinery and equipment used exclusively for irrigation of
agricultural products, including, but not limited to, fruit, vegetable, and nut
crops; and machinery and equipment used to cool agricultural products in storage
facilities.
(B)
'Agricultural machinery and equipment' also means farm tractors and attachments
to the tractors; off-road vehicles used primarily in the production of nursery
and horticultural crops; self-propelled fertilizer or chemical application
equipment sold to persons engaged primarily in producing agricultural products
for sale and which are used exclusively in tilling, planting, cultivating, and
harvesting agricultural products, including, but not limited to, growing,
harvesting, or processing onions, peaches, blackberries, blueberries, or other
orchard crops, nursery, and other horticultural crops; devices and containers
used in the transport and shipment of agricultural products; aircraft
exclusively used for spraying agricultural crops; pecan sprayers, pecan shakers,
and other equipment used in harvesting pecans sold to persons engaged in the
growing, harvesting, and production of pecans; and off-road equipment and
related attachments which are sold to or used by persons engaged primarily in
the growing or harvesting of timber and which are used exclusively in site
preparation, planting, cultivating, or harvesting timber. Equipment used in
harvesting shall include all off-road equipment and related attachments used in
every forestry procedure starting with the severing of a tree from the ground
until and including the point at which the tree or its parts in any form has
been loaded in the field in or on a truck or other vehicle for transport to the
place of use. Such off-road equipment shall include, but not be limited to,
skidders, feller bunchers, debarkers, delimbers, chip harvesters, tub-grinders,
woods cutters, chippers of all types, loaders of all types, dozers, mid-motor
graders, and the related attachments; grain bins and attachments to grain bins;
any repair, replacement, or component parts installed on agricultural machinery
and equipment; trailers used to transport agricultural products; all-terrain
vehicles and multipassenger rough-terrain vehicles; and any other off-road
vehicles used directly and principally in the production of agricultural or
horticultural products.
(2)
'Agricultural operations' or 'agricultural products' means raising, growing,
harvesting, or storing of crops; feeding, breeding, or managing livestock,
equine, or poultry; producing or storing feed for use in the production of
livestock, including, but not limited to, cattle, calves, swine, hogs, goats,
sheep, equine, and rabbits, or for use in the production of poultry, including,
but not limited to, chickens, hens, ratites, and turkeys; producing plants,
trees, Christmas trees, fowl, equine, or animals; or the production of
aquacultural, horticultural, viticultural, silvicultural, grass sod, dairy,
livestock, poultry, egg, and apiarian products. Agricultural products are
considered grown in this state if such products are grown, produced, or
processed in this state, whether or not such products are composed of
constituent products grown or produced outside this state.
(3)
'Agricultural production inputs' means seed; seedlings; plants grown from seed,
cuttings, or liners; fertilizers; insecticides; livestock and poultry feeds,
drugs, and instruments used for the administration of such drugs; fencing
products and materials used to produce agricultural products; fungicides;
rodenticides; herbicides; defoliants; soil fumigants; plant growth regulating
chemicals; desiccants, including, but not limited to, shavings and sawdust from
wood, peanut hulls, fuller's earth, straw, and hay; feed for animals, including,
but not limited to, livestock, fish, equine, hogs, or poultry; sugar used as
food for honeybees kept for the commercial production of honey, beeswax, and
honeybees; cattle, hogs, sheep, equine, poultry, or bees when sold for breeding
purposes; ice or other refrigerants, including, but not limited to, nitrogen,
carbon dioxide, ammonia, and propylene glycol used in the processing for market
or the chilling of agricultural products in storage facilities, rooms,
compartments, or delivery trucks; materials, containers, crates, boxes, labels,
sacks, bags, or bottles used for packaging agricultural products when the
product is either sold in the containers, sacks, bags, or bottles directly to
the consumer or when such use is incidental to the sale of the product for
resale; and containers, plastic, canvas, and other fabrics used in the care and
raising of agricultural products or canvas used in covering feed bins, silos,
greenhouses, and other similar storage structures.
(4)
'Energy used in agriculture' means fuels used for agricultural purposes,
including, but not limited to, off-road diesel, propane, butane, electricity,
natural gas, wood, wood products, or wood by-products; liquefied petroleum gas
or other fuel used in structures in which broilers, pullets, or other poultry
are raised, in which swine are raised, in which dairy animals are raised or
milked or where dairy products are stored on a farm, in which agricultural
products are stored, and in which plants, seedlings, nursery stock, or floral
products are raised primarily for the purposes of making sales of such plants,
seedlings, nursery stock, or floral products for resale; electricity or other
fuel for the operation of an irrigation system which is used on a farm
exclusively for the irrigation of agricultural products; and electricity or
other fuel used in the drying, cooking, or further processing of raw
agricultural products, including, but not limited to, food processing of raw
agricultural products.
(5)
'Qualified agriculture producer' includes producers of agricultural products who
meet one of the following criteria:
(A)
The person or entity is the owner or lessee of agricultural land or other real
property from which $2,500.00 or more of agricultural products were produced and
sold during the year, including payments from government sources;
(B)
The person or entity is in the business of providing for-hire custom
agricultural services, including, but not limited to, plowing, planting,
harvesting, growing, animal husbandry or the maintenance of livestock, raising
or substantially modifying agricultural products, or the maintenance of
agricultural land from which $2,500.00 or more of such services were provided
during the year;
(C)
The person or entity is the owner of land that qualifies for taxation under the
qualifications of bona fide conservation use property as defined in Code Section
48-5-7.4 or qualifies for taxation under the provisions of the Georgia Forest
Land Protection Act as defined in Code Section 48-5-7.7;
(D)
The person or entity is in the business of producing long-term agricultural
products from which there might not be annual income, including, but not limited
to, timber, pulpwood, orchard crops, pecans, and horticultural or other
multiyear agricultural or farm products. Applicants must demonstrate that
sufficient volumes of such long-term agricultural products will be produced
which have the capacity to generate at least $2,500.00 in sales annually in the
future; or
(E)
The person or entity must establish, to the satisfaction of the Commissioner of
Agriculture, that the person or entity is actively engaged in the production of
agricultural products and has or will have created sufficient volumes to
generate at least $2,500.00 in sales annually.
(b)
The sales and use taxes levied or imposed by this article shall not apply to
sales to, or use by, a qualified agriculture producer of agricultural production
inputs, energy used in agriculture, and agricultural machinery and
equipment.
(c)
The Commissioner of Agriculture, at his or her discretion, may use one or both
of the following criteria as a tool to determine eligibility under this Code
section:
(1)
Business activity on IRS schedule F (Profit or Loss from Farming);
or
(2)
Farm rental activity on IRS form 4835 (Farm Rental Income and Expenses) or
schedule E (Supplemental Income and Loss).
(d)
Qualified agricultural producers that meet the criteria provided for in
paragraph (5) of subsection (a) of this Code section must apply to the
Commissioner of Agriculture to request an agricultural sales and use tax
exemption certificate that contains an exemption number. To facilitate the use
of the exemption certificate, a wallet-sized card containing that same
information shall also be issued by the Commissioner of
Agriculture.
(e)
The Commissioner of Agriculture is authorized to promulgate rules and
regulations governing the issuance of agricultural exemption certificates and
the administration of this Code section. The Commissioner of Agriculture is
authorized to establish an oversight board and direct staff and is authorized to
charge annual fees of not less than $15.00 nor more than $25.00 per year in
accordance with Code Section 2-1-5, but in no event shall the total amount of
the proceeds from such fees exceed the cost of administering this Code
section."
SECTION
5-4.
Said
title is further amended by adding a new article at the end of Chapter 13,
relating to specific, business, and occupation taxes, to read as
follows:
"ARTICLE
6
48-13-110.
As
used in this article, the term:
(1)
'Dealer' has the same meaning as in Code Section 48-8-2.
(2)
'Energy' has the same meaning as in Code Section 48-8-3.2.
(3)
'Local sales and use tax' means any of the following:
(A)
The county special purpose local option sales and use tax under Part 1 of
Article 3 of Chapter 8 of this title;
(B)
The joint county and municipal sales and use tax under Article 2 of Chapter 8 of
this title;
(C)
The homestead option sales and use tax under Article 2A of Chapter 8 of this
title;
(D)
The tax levied for purposes of a metropolitan area system of public
transportation, as authorized by the amendment to the Constitution set out at
Ga. L. 1964, p. 1008; the continuation of such amendment under Article XI,
Section I, Paragraph IV(d) of the Constitution; and the laws enacted pursuant to
such constitutional amendment; or
(E)
The water and sewer projects and costs tax pursuant to Article 4 of Chapter 8 of
this title.
(4)
'Purchaser' means any person who purchases energy and who would have been liable
for sales and use tax on such energy but for the exemption provided for in Code
Section 48-8-3.2.
48-13-111.
Pursuant
to the authority granted by Article IX, Section II, Paragraph VI of the
Constitution, there are created within this state 159 special districts. One
such district shall exist within the geographical boundaries of each county, and
the territory of each district shall include all of the territory within the
county except territory located within the boundaries of any municipality that
imposes an excise tax on energy under this article.
48-13-112.
(a)(1)
Within the territorial limits of the special district located within the county,
each county in this state may levy and collect an excise tax upon the sale or
use of energy when such sale or use would have constituted a taxable event for
purposes of sales and use tax under Article 1 of Chapter 8 of this title but for
the exemption in Code Section 48-8-3.2.
(2)
The governing authority of each municipality in this state may, subject to the
conditions of Code Section 48-13-115, levy and collect an excise tax upon the
sale or use of energy when such sale or use would have constituted a taxable
event for purposes of sales and use tax under Article 1 of Chapter 8 of this
title but for the exemption in Code Section 48-8-3.2.
(3)
The excise tax levied pursuant to this article shall be phased in over a
four-year period as follows:
(A)
For the period commencing January 1, 2013, and concluding at the last moment of
December 31, 2013, such excise tax shall be at a rate equivalent to 25 percent
of the total amount of local sales and use tax in effect in such special
district that would be collected on the sale, use, storage, or consumption of
energy but for the exemption in Code Section 48-8-3.2;
(B)
For the period commencing January 1, 2014, and concluding at the last moment of
December 31, 2014, such excise tax shall be at a rate equivalent to 50 percent
of the total amount of local sales and use tax in effect in such special
district that would be collected on the sale, use, storage, or consumption of
energy but for the exemption in Code Section 48-8-3.2;
(C)
For the period commencing January 1, 2015, and concluding at the last moment of
December 31, 2015, such excise tax shall be at a rate equivalent to 75 percent
of the total amount of local sales and use tax in effect in such special
district that would be collected on the sale, use, storage, or consumption of
energy but for the exemption in Code Section 48-8-3.2; and
(D)
On or after January 1, 2016, such excise tax shall be at a rate equivalent to
100 percent of the total amount of local sales and use tax in effect in such
special district that would be collected on the sale, use, storage, or
consumption of energy but for the exemption in Code Section
48-8-3.2.
(b)
Any county or municipality which imposes the excise tax under this article
during the phase-in period provided for in this Code section shall levy such
excise tax at the amount provided for under the applicable year of the phase in.
Any county or municipality which imposes such excise tax on or after January 1,
2016, shall impose it at the rate specified under subparagraph (a)(3)(D) of this
Code section.
(c)
The excise tax levied pursuant to this article shall be imposed only at the time
that sales and use tax on the sale or use of such energy would have been due and
payable under Code Section 48-8-30 but for the exemption in Code Section
48-8-3.2. The excise tax shall be due and payable in the same manner as would
be otherwise required under Article 1 of Chapter 8 of this title except as
otherwise provided under this article. The excise tax shall be a debt of the
purchaser of energy until it is paid and shall be recoverable at law in the same
manner as authorized for the recovery of other debts. The dealer collecting the
excise tax shall remit the excise tax to the governing authority imposing the
excise tax. Every dealer subject to an excise tax levied as provided in this
article shall be liable for the excise tax at the applicable rate on the charges
actually collected or the amount of excise taxes collected from the purchasers,
whichever is greater.
(d)
A county or municipality levying an excise tax as provided in this subsection
shall only levy such excise tax initially by ordinance and at the equivalent
rate as determined under paragraph (3) of subsection (a) of this Code section.
Following such initial imposition, on or after January 1, 2016, the rate of the
tax under this article shall be controlled by the maximum amount of local sales
and use tax in effect in the special district, but in no event more than 2
percent; however, this 2 percent limitation shall not apply in a municipality
that levies a water and sewer projects and costs tax pursuant to Article 4 of
Chapter 8 of this title, in which case there shall be a 3 percent limitation.
In the event the total rate of local sales and use taxes in effect in the
special district decreases from 2 percent to 1 percent, the rate of the excise
tax under this article shall likewise be reduced at the same time such local
sales and use tax rate reduction becomes effective. In the event the total rate
of local sales and use taxes in effect in the special district increases from 1
percent to 2 percent, the rate of the excise tax under this article shall
likewise be increased at the same time such local sales and use tax rate
increase becomes effective.
(e)
An excise tax under this article shall not be levied or collected by a county or
municipality outside the territorial limits of the special district located
within the county.
48-13-113.
Prior
to the adoption of the ordinance levying an excise tax under this article, the
county governing authority within a special district shall meet and confer with
each of the municipalities within the special district. Any county that desires
to have an excise tax under this article levied within the special district
shall deliver or mail a written notice to the mayor or chief elected official in
each municipality located within the special district. If the governing
authority of such county does not deliver or mail such notice within 30 days of
the date of the written request of the mayor or chief elected official of a
municipality within the special district, then such mayor or chief elected
official shall deliver or mail a written notice to the mayor or chief elected
official in each municipality located within the special district and to the
county governing authority. Such notice shall contain the date, time, place,
and purpose of a meeting at which the governing authorities of the county and of
each municipality are to discuss whether or not the excise tax should levied be
within the special district. The notice shall be delivered or mailed at least
ten days prior to the date of the meeting. The meeting shall be held at least
30 days prior to the adoption of any ordinance levying an excise tax under this
article.
48-13-114.
(a)(1)
Following the meeting required under Code Section 48-13-113, the governing
authority of the county within the special district shall enter into an
intergovernmental agreement with the governing authority of each municipality
wishing to participate in such excise tax that provides for the distribution of
the proceeds as provided in subsection (c) of this Code section. Following the
execution of such agreement, the governing authority of such county shall be
authorized to adopt an ordinance levying the excise tax.
(2)
If a municipality elects not to participate in such excise tax by not signing
such agreement, then such municipality shall not receive any proceeds from the
excise tax. In such event, any proportionate share that would have been
distributed to such municipality under an applicable local sales and use tax as
provided in subsection (c) of this Code section shall instead be distributed to
the general fund of the county.
(b)
The excise tax proceeds shall be allocated and distributed by the county
governing authority at the end of each calendar month. Of such excise tax
proceeds, an amount equal to 1 percent of the proceeds collected by the county
shall be paid into the general fund of the county to defray the costs of
collection and administration. The remainder of the proceeds shall be
distributed in accordance with the intergovernmental agreement as provided in
subsection (c) of this Code section.
(c)
The excise tax proceeds shall be allocated and distributed by the county
governing authority within 30 days following the end of each calendar month in
the manner provided in this subsection. Such proceeds shall not be subject to
any use or expenditure requirements provided for under any of the local sales
and use taxes but shall be authorized to be expended in the same manner as
otherwise would have been required under such local sales and use taxes or may
be expended for any lawful purpose. Of such excise tax proceeds:
(1)
If two such local sales and use taxes are in effect in the special district, an
amount equal to one-half of the proceeds of the excise tax shall be distributed
to the county general fund and the general fund of each participating
municipality located in such county according to the same proportionate share as
specified under the distribution provisions of the first local sales and use tax
and an amount equal to one-half of the proceeds of the excise tax shall be
distributed to the county general fund and the general fund of each
participating municipality located in such county according to the same
proportionate share as specified under the distribution provisions of the second
local sales and use tax; or
(2)
If only one such local sales and use tax is in effect in the special district,
then the proceeds of the excise tax shall be distributed to the county general
fund and the general fund of each participating municipality located in such
county according to the same proportionate share as specified under the
distribution provisions of the local sales and use tax.
48-13-115.
Following
the meeting required under Code Section 48-13-113, if the governing authority of
the county within the special district refuses to enter into an
intergovernmental agreement with the governing authority of each municipality
wishing to participate in such excise tax during the period commencing on
January 1, 2013, and concluding on December 31, 2013, then the governing
authority of each municipality wishing to levy the excise tax shall be
authorized to adopt an ordinance levying the excise tax within the corporate
limits of such municipality. If a county elects not to participate in such
excise tax by not signing such agreement, then the county shall not receive any
proceeds from the excise tax. The proceeds of such excise tax shall be
deposited in the general fund of each municipality. If a county determines,
subsequent to December 31, 2013, to commence proceedings for the imposition of
the excise tax under this article, then proceedings for such imposition shall
commence in the same manner as otherwise provided under Code Section 48-13-113.
In that event, the excise tax levied by such municipality shall cease on the day
immediately prior to the day the new tax levied by the county commences. If
such municipality elects not to participate, its current excise tax under this
article shall still terminate on the date specified in this Code section and it
shall not receive any proceeds under the county levy.
48-13-116.
(a)(1)
An excise tax imposed under this article shall become effective on the first day
of the next succeeding calendar quarter which begins more than 80 days after the
adoption date of the ordinance.
(2)
If services are regularly billed on a monthly basis, however, the excise tax
shall become effective with respect to and the tax shall apply to services
billed on or after the effective date specified in paragraph (1) of this
subsection.
(b)
The excise tax shall cease to be imposed on the first day of the next succeeding
calendar quarter which begins more than 80 days after the adoption date of an
ordinance terminating the excise tax.
(c)
At any time no more than a single 2 percent excise tax under this article may be
imposed within a special district or a municipality.
(d)
Following the termination of an excise tax under this article, the governing
authority of a county within a special district or the mayor or chief elected
official of a municipality in the special district in which an excise tax
authorized by this article is in effect may initiate proceedings for the
reimposition of a tax under this article in the same manner as provided in this
article for initial imposition of such tax.
48-13-117.
The
manner of payment and collection of the excise tax and all other procedures
related to the tax, including, but not limited to, periodic auditing of dealers
collecting and remitting the excise tax under this article, shall be as provided
by each county and municipality electing to exercise the powers conferred by
this article.
48-13-118.
As
a part of the audit report required under Code Section 36-81-7, the auditor
shall include, in a separate schedule, a report of the revenues pertaining to
the excise tax under this
article."
SECTION
5-5.
Said
title is further amended by revising paragraphs (90) and (91) and enacting a new
paragraph in Code Section 48-8-3, relating to exemptions from sales and use tax,
as follows:
"(90)
The sale of electricity to a manufacturer located in this state used directly in
the manufacture of a product if the direct cost of such electricity exceeds 50
percent of the cost of all materials, including electricity, used directly in
the product;
or
(91)
The sale of prewritten software which has been delivered to the purchaser
electronically or by means of load and
leave;
or
(92)(A)
For the period commencing January 1, 2012, until June 30, 2014, sales of
tangible personal property used for and in the construction of a competitive
project of regional significance.
(B)
The exemption provided in subparagraph (A) of this paragraph shall apply to
purchases made during the entire time of construction of the competitive project
of regional significance so long as such project meets the definition of a
'competitive project of regional significance' within the period commencing
January 1, 2012, until June 30, 2014.
(C)
The department shall not be required to pay interest on any refund claims filed
for local sales and use taxes paid on purchases made prior to the implementation
of this paragraph.
(D)
As used in this paragraph, the term 'competitive project of regional
significance' means the location or expansion of some or all of a business
enterprise's operations in this state where the commissioner of economic
development determines that the project would have a significant regional
impact. The commissioner of economic development shall promulgate regulations
in accordance with the provisions of this paragraph outlining the guidelines to
be applied in making such
determination."
SECTION
5-6.
Said
title is further amended by revising paragraph (33.1) of Code Section 48-8-3,
relating to exemptions from sales and use taxes, as follows:
"(33.1)(A)
The sale or use of jet fuel to or by a qualifying airline at a qualifying
airport, to the extent provided in subparagraphs (B) and (C) of this
paragraph.
(B)(i)
For the period of time beginning July 1, 2011, and ending June 30, 2012, the
sale or use of jet fuel to or by a qualifying airline at a qualifying airport
shall be exempt from state sales and use tax until the aggregate state sales and
use tax liability of the taxpayer during such period with respect to jet fuel
exceeds $20 million, computed as if the exemption provided in this division was
not in effect during such period. Thereafter during such period, the exemption
provided by this division shall not apply to the sale or use of jet fuel to or
by the qualifying airline.
For purposes
of this division, the terms 'qualifying airline' and 'qualifying airport' shall
have the same meanings as those terms were defined under the prior provisions of
this paragraph as it existed immediately prior to July 1, 2012.
(ii)
For the period of time beginning July 1, 2012,
and ending
June 30, 2013, the sale or use of jet fuel
to or by a qualifying airline at a qualifying airport shall be exempt from
1 percent of
the 4 percent state sales and use tax
until the
aggregate state sales and use tax liability of the taxpayer during such period
with respect to jet fuel exceeds $10 million, computed as if the exemption
provided in this division was not in effect during such period. Thereafter
during such period, the sale or use of jet fuel to or by the qualifying airline
shall be subject to state sales and use
tax.
(iii)
The exemptions provided in divisions (i) and (ii) of this subparagraph shall not
apply to any purchases of jet fuel occurring on or after July 1,
2013.
(C)
The sale or use of jet fuel to or by a qualifying airline at a qualifying
airport shall be exempt at all times from the sales or use tax levied and
imposed as authorized pursuant to Part 1 of Article 3 of this chapter.
For purposes
of this subparagraph, a 'qualifying airport' shall mean any airport in the state
that has had more than 750,000 takeoffs and landings during a calendar year; and
a 'qualifying airline,' in addition to the requirements of subparagraph (E) of
this paragraph, shall mean, for the 12 month period immediately preceding the
applicable period specified in division (i) of subparagraph (B) of this
paragraph had, or would have had in the absence of any exemption during such 12
month period, state sales and use tax liability on jet fuel of more than $15
million.
(D)
Except as provided for in subparagraph (C) of this paragraph, this exemption
shall not apply to any other local sales and use tax levied or imposed at
anytime
any
time in any area consisting of less than
the entire state, however authorized, including, but not limited to, such taxes
authorized by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga.
L. 1965, p. 2243), as amended, the 'Metropolitan Atlanta Rapid Transit Authority
Act of 1965,' or such taxes as authorized by or pursuant to Part 2 of
Article 3 or Article 2, 2A, or 4 of this chapter.
(E)
For purposes of
this
paragraph
division (ii)
of subparagraph (B) of this paragraph and
paragraph (2) of subsection (d) of Code Section 48-8-241, a 'qualifying airline'
shall mean any person
which: (i)
Is
is
authorized by the Federal Aviation Administration or appropriate agency of the
United States to operate as an air carrier under an air carrier operating
certificate and which provides regularly scheduled flights for the
transportation of passengers or cargo for
hire;
and.
(ii)
For the 12 month period immediately preceding the applicable period specified in
division (i) or (ii) of subparagraph (B) of this paragraph had, or would have
had in the absence of any exemption during such 12 month period, state sales and
use tax liability on jet fuel of more than $15 million.
(F)
For
purposes of this paragraph and paragraph (2) of subsection (d) of Code Section
48-8-241, a 'qualifying airport' shall mean any airport in the state that has
had more than 750,000 takeoffs and landings during a calendar
year.
For purposes
of division (ii) of subparagraph (B) of this paragraph and paragraph (2) of
subsection (d) of Code Section 48-8-241, the term 'qualifying airport' means a
certificated air carrier airport in Georgia.
(G)
The commissioner shall adopt rules and regulations to carry out the provisions
of this
paragraph.;"
SECTION
5-7.
Title
2 of the Official Code of Georgia Annotated, relating to agriculture, is amended
by revising Code Section 2-1-5, relating to certain agricultural annual license
fees, as follows:
"2-1-5.
(a)
An individual conducting business as a grain dealer, commercial feed dealer, and
grain warehouseman shall pay an annual license fee in an amount not less than
$1,500.00 nor more than $3,000.00. Any fees collected pursuant to this Code
section shall be retained pursuant to the provisions of Code Section
45-12-92.1.
(b)
A qualified agriculture producer, as defined in Code Section 48-8-3.3, shall pay
an annual license fee in an amount not less than $15.00 nor more than $25.00,
but in no event shall the total amount of the proceeds from such fees exceed the
cost of administering Code Section
48-8-3.3."
PART
VI
SECTION 6-1.
SECTION 6-1.
Part
1 of Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia
Annotated, relating to sales and use taxes, is amended by revising paragraph (8)
of Code Section 48-8-2, relating to definitions regarding the state sales and
use tax, as follows:
"(8)
'Dealer' means every person who:
(A)
Has sold at retail, used, consumed, distributed, or stored for use or
consumption in this state tangible personal property and who cannot prove that
the tax levied by this article has been paid on the sale at retail or on the
use, consumption, distribution, or storage of the tangible personal
property;
(B)
Imports or causes to be imported tangible personal property from any state or
foreign country for sale at retail, or for use, consumption, distribution, or
storage for use or consumption in this state;
(C)
Is the lessee or renter of tangible personal property and who pays to the owner
of the property a consideration for the use or possession of the property
in this
state without acquiring title to the
property;
(D)
Leases or rents tangible personal property for a consideration, permitting the
use or possession of the property
in this
state without transferring title to the
property;
(E)
Maintains or
has
utilizes
within this
state,
indirectly or by a subsidiary, an office,
distribution center, salesroom or sales office, warehouse, service enterprise,
or any other place of
business,
whether owned by such person or any other person, other than a common carrier
acting in its capacity as
such;
(F)
Manufactures or produces tangible personal property for sale at retail or for
use, consumption, distribution, or storage for use or consumption in this
state;
(G)
Sells at retail, offers for sale at retail, or has in his possession for sale at
retail, or for use, consumption, distribution, or storage for use or consumption
in this state tangible personal property;
(H)
Solicits business by an agent, employee, representative, or any other
person;
(I)
Engages in the regular or systematic solicitation of a consumer market in this
state, unless the dealer's only activity in this state is:
(i)
Advertising or solicitation by:
(I)
Direct mail, catalogs, periodicals, or advertising fliers;
(II)
Means of print, radio, or television media; or
(III)
Telephone, computer, the Internet, cable, microwave, or other communication
system;
or
(ii)
The delivery of tangible personal property within this state solely by common
carrier or United States
mail;
or
(iii)
To engage in convention and trade show activities as described in Section
513(d)(3)(A) of the Internal Revenue Code, so long as such activities are the
dealer's sole physical presence in this state and the dealer, including any of
its representatives, agents, salespersons, canvassers, independent contractors,
or solicitors, does not engage in those convention and trade show activities for
more than five days, in whole or in part, in this state during any 12 month
period and did not derive more than $100,000.00 of net income from those
activities in this state during the prior calendar year. A retailer engaging in
convention and trade show activities, as described in Section 513(d)(3)(A) of
the Internal Revenue Code, is a retailer engaged in business in this state and
liable for collection of the applicable sales or use tax with respect to any
sale of tangible personal property occurring at the convention and trade show
activities and with respect to any sale of tangible personal property made
pursuant to an order taken at or during those convention and trade show
activities.
The
exceptions provided in divisions
(i) and
(ii)
(i), (ii), and
(iii) of this subparagraph shall not apply
to any requirements under Code Section 48-8-14;
(J)
Is an affiliate that sells at retail, offers for sale at retail in this state,
or engages in the regular or systematic solicitation of a consumer market in
this state through a related dealer located in this state unless:
(i)
The in-state dealer to which the affiliate is related does not engage in any of
the following activities on behalf of the affiliate:
(I)
Advertising;
(II)
Marketing;
(III)
Sales; or
(IV)
Other services; and
(ii)
The in-state dealer to which the affiliate is related accepts the return of
tangible personal property sold by the affiliate and also accepts the return of
tangible personal property sold by any person or dealer that is not an affiliate
on the same terms and conditions as an affiliate's return;
As
used in this subparagraph, the term 'affiliate' means any person that is related
directly or indirectly through one or more intermediaries, controls, is
controlled by, is under common control with, or is subject to the control of a
dealer described in subparagraphs (A) through (I) of this paragraph or in this
subparagraph;
(K)(i)
Makes sales of tangible personal property or services that are taxable under
this chapter if a related member, as defined in Code Section 48-7-28.3, other
than a common carrier acting in its capacity as such, that has substantial nexus
in this state:
(I)
Sells a similar line of products as the person and does so under the same or a
similar business name; or
(II)
Uses trademarks, service marks, or trade names in this state that are the same
or substantially similar to those used by the person.
(ii)
The presumption that a person described in this subparagraph qualifies as a
dealer in this state may be rebutted by showing that the person does not have a
physical presence in this state and that any in-state activities conducted on
its behalf are not significantly associated with the person's ability to
establish and maintain a market in this state;
(L)(i)
Makes sales of tangible personal property or services that are taxable under
this chapter if any other person, other than a common carrier acting in its
capacity as such, who has a substantial nexus in this state:
(I)
Delivers, installs, assembles, or performs maintenance services for the person's
customers within this state;
(II)
Facilitates the person's delivery of property to customers in this state by
allowing the person's customers to pick up property sold by the person at an
office, distribution facility, warehouse, storage place, or similar place of
business maintained by the person in this state; or
(III)
Conducts any other activities in this state that are significantly associated
with the person's ability to establish and maintain a market in this state for
the person's sales.
(ii)
The presumption that a person described in this subparagraph qualifies as a
dealer in this state may be rebutted by showing that the person does not have a
physical presence in this state and that any in-state activities conducted on
its behalf are not significantly associated with the person's ability to
establish and maintain a market in this state;
(M)(i)
Enters into an agreement with one or more other persons who are residents of
this state under which the resident, for a commission or other consideration,
based on completed sales, directly or indirectly refers potential customers,
whether by a link on an Internet website, an in-person oral presentation,
telemarketing, or otherwise, to the person, if the cumulative gross receipts
from sales by the person to customers in this state who are referred to the
person by all residents with this type of an agreement with the person is in
excess of $50,000.00 during the preceding 12 months.
(ii)
The presumption that a person described in this subparagraph is a dealer in this
state may be rebutted by submitting proof that the residents with whom the
person has an agreement did not engage in any activity within this state that
was significantly associated with the person's ability to establish or maintain
the person's market in the state during the preceding 12 months. Such proof may
consist of sworn written statements from all of the residents with whom the
person has an agreement stating that they did not engage in any solicitation in
this state on behalf of the person during the preceding year, provided that such
statements were provided and obtained in good faith. This subparagraph shall
take effect 90 days after the effective date of this Act and shall apply to
sales made, uses occurring, and services rendered on or after the effective date
of this subparagraph without regard to the date the person and the resident
entered into the agreement described in this subparagraph;
(N)
Notwithstanding any of the provisions contained in this paragraph, with respect
to a person that is not a resident or domiciliary of Georgia, that does not
engage in any other business or activity in Georgia, and that has contracted
with a commercial printer for printing to be conducted in Georgia, such person
shall not be deemed a 'dealer' in Georgia merely because such
person:
(i)
Owns tangible or intangible property which is located at the Georgia premises of
a commercial printer for use by such printer in performing services for the
owner;
(ii)
Makes sales and distributions of printed material produced at and shipped or
distributed from the Georgia premises of the commercial printer;
(iii)
Performs activities of any kind at the Georgia premises of the commercial
printer which are directly related to the services provided by the commercial
printer; or
(iv)
Has printing, including any printing related activities, and distribution
related activities performed by the commercial printer in Georgia for or on its
behalf,
nor
shall such person, absent any contact with Georgia other than with or through
the use of the commercial printer or the use of the United States Postal Service
or a common carrier, have an obligation to collect sales or use tax from any of
its customers located in Georgia based upon the activities described in
divisions (i) through (iv) of this subparagraph. In no event described in this
subparagraph shall such person be considered to have a fixed place of business
in Georgia at either the commercial printer's premises or at any place where the
commercial printer performs services on behalf of that person;
(O)
Any ruling, agreement, or contract, whether written or oral and whether express
or implied, between a person and this state's executive branch or any other
state agency or department stating, agreeing, or ruling that such person is not
a dealer required to collect sales and use tax in this state despite the
presence of a warehouse, distribution center, or fulfillment center in this
state that is owned or operated by the person or a related member shall be null
and void unless it is specifically approved by a majority vote of each body of
the General Assembly. For purposes of this subparagraph, the term 'related
member' has the same meaning as in Code Section 48-7-28.3;
(L)(P)
Each dealer shall collect the tax imposed by this article from the purchaser,
lessee, or renter, as applicable, and no action seeking either legal or
equitable relief on a sale, lease, rental, or other transaction may be had in
this state by the dealer unless the dealer has fully complied with this article;
or
(M)(Q)
The commissioner shall promulgate such rules and regulations necessary to
administer this paragraph, including other such information, applications,
forms, or statements as the commissioner may reasonably
require."
SECTION
6-2.
Said
part is further amended by revising paragraphs (75) and (82) of Code Section
48-8-3, relating to exemptions from sales and use taxes, as
follows:
"(75)(A)
The sale of any covered item. The exemption provided by this paragraph shall
apply only to sales occurring during
a period
commencing
periods:
(i)
Commencing at 12:01 A.M. on
July 30,
2009
August 10,
2012, and concluding at 12:00 Midnight on
August 2,
2009
August 11,
2012; and
(ii)
Commencing at 12:01 A.M. on August 9, 2013, and concluding at 12:00 Midnight on
August 10, 2013.
(B)
As used in this paragraph, the term 'covered item' shall mean:
(i)
Articles of clothing and footwear with a sales price of $100.00 or less per
article of clothing or pair of footwear, excluding accessories such as jewelry,
handbags, umbrellas, eyewear, watches, and watchbands;
(ii)
A single purchase, with a sales price
$1,500.00
of
$1,000.00 or less, of personal computers
and personal computer related accessories purchased for noncommercial home or
personal use, including personal computer base units and keyboards, personal
digital assistants, handheld computers, monitors, other peripheral devices,
modems for Internet and network access, and nonrecreational software, whether or
not they are to be utilized in association with the personal computer base unit.
Computer and computer related accessories shall not include furniture and any
systems, devices, software, or peripherals designed or intended primarily for
recreational use; and
(iii)
Noncommercial purchases of general school supplies to be utilized in the
classroom or in classroom related activities, such as homework, up to a sales
price of $20.00 per item including pens, pencils, notebooks, paper, book bags,
calculators, dictionaries, thesauruses, and children's books and books listed on
approved school reading lists for pre-kindergarten through twelfth
grade.
(C)
The exemption provided by this paragraph shall not apply to rentals, sales in a
theme park, entertainment complex, public lodging establishment, restaurant, or
airport or to purchases for trade, business, or resale.
(D)
The commissioner shall promulgate any rules and regulations necessary to
implement and administer this paragraph including but not be limited to a list
of those articles and items qualifying for the exemption pursuant to this
paragraph;"
"(82)(A)
Purchase of energy efficient products or water efficient products with a sales
price of $1,500.00 or less per product purchased for noncommercial home or
personal use. The exemption provided by this paragraph shall apply only to
sales occurring during
a period
commencing
periods:
(i)
Commencing at 12:01 A.M. on
October 1,
2009
October 5,
2012, and concluding at 12:00 Midnight on
October 4,
2009
October 7,
2012; and
(ii)
Commencing at 12:01 A.M. on October 4, 2013, and concluding at 12:00 Midnight on
October 6, 2013.
(B)
As used in this paragraph, the term:
(i)
'Energy efficient product' means any energy efficient product for noncommercial
home or personal use consisting of any dishwasher, clothes washer, air
conditioner, ceiling fan, fluorescent light bulb, dehumidifier, programmable
thermostat, refrigerator, door, or window which has been designated by the
United States Environmental Protection Agency and the United States Department
of Energy as meeting or exceeding each such agency's energy saving efficiency
requirements or which have been designated as meeting or exceeding such
requirements under each such agency's Energy Star program.
(ii)
'Water efficient product' means any product used for the conservation or
efficient use of water which has been designated by the United States
Environmental Protection Agency as meeting or exceeding such agency's water
saving efficiency requirements or which has been designated as meeting or
exceeding such requirements under such agency's Water Sense
program.
(C)
The exemption provided for in subparagraph (A) of this paragraph shall not apply
to purchases of energy efficient products or water efficient products purchased
for trade, business, or resale.
(D)
The commissioner shall promulgate any rules and regulations necessary to
implement and administer this paragraph;"
PART
VII
SECTION 7-1.
SECTION 7-1.
(a)
This part, paragraph (4) of subsection (c) of Code Section 48-8-3.2 contained in
Section 5-2, and Section 6-2 of this Act shall become effective upon approval by
the Governor or upon becoming law without such
approval.
(b) Section 5-5 of this Act shall become effective on January 1, 2012.
(c) Section 6-1 of this Act shall become effective on October 1, 2012.
(d) Part IV and Section 5-6 of this Act shall become effective on July 1, 2012.
(e) Parts II and III of this Act shall become effective on January 1, 2013, and shall be applicable to all taxable years beginning on or after January 1, 2013.
(f) Part I of this Act shall become effective March 1, 2013.
(g) The remaining portions of this Act shall become effective on January 1, 2013.
(h) Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by the passage of this Act and shall continue to be governed by the provisions of general law as it existed immediately prior to the effective date of the relevant portion of this Act.
(i) This Act shall not abate any prosecution, punishment, penalty, administrative proceedings or remedies, or civil action related to any violation of law committed prior to the effective date of the relevant portion of this Act.
(b) Section 5-5 of this Act shall become effective on January 1, 2012.
(c) Section 6-1 of this Act shall become effective on October 1, 2012.
(d) Part IV and Section 5-6 of this Act shall become effective on July 1, 2012.
(e) Parts II and III of this Act shall become effective on January 1, 2013, and shall be applicable to all taxable years beginning on or after January 1, 2013.
(f) Part I of this Act shall become effective March 1, 2013.
(g) The remaining portions of this Act shall become effective on January 1, 2013.
(h) Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by the passage of this Act and shall continue to be governed by the provisions of general law as it existed immediately prior to the effective date of the relevant portion of this Act.
(i) This Act shall not abate any prosecution, punishment, penalty, administrative proceedings or remedies, or civil action related to any violation of law committed prior to the effective date of the relevant portion of this Act.
SECTION
7-2.
In
the event any section, subsection, sentence, clause, or phrase of this Act shall
be declared or adjudged invalid or unconstitutional, such adjudication shall in
no manner affect the other sections, subsections, sentences, clauses, or phrases
of this Act, which shall remain of full force and effect as if the section,
subsection, sentence, clause, or phrase so declared or adjudged invalid or
unconstitutional were not originally a part hereof. The General Assembly
declares that it would have passed the remaining parts of this Act if it had
known that such part or parts hereof would be declared or adjudged invalid or
unconstitutional.
SECTION
7-3.
All
laws and parts of laws in conflict with this Act are repealed.
