Bill Text: GA HB388 | 2011-2012 | Regular Session | Comm Sub
Bill Title: Revenue and taxation; revenue structure; comprehensive revision
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2011-04-14 - House Withdrawn, Recommitted [HB388 Detail]
Download: Georgia-2011-HB388-Comm_Sub.html
11 LC 18 0010S
The
Special Joint Committee on Georgia Revenue Structure offers the
following
substitute
to HB 388:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Titles 48, 2, 36, and 46 of the Official Code of Georgia Annotated,
relating respectively, to revenue and taxation, agriculture, local government,
and public utilities, so as to provide for comprehensive revision of personal
income taxes; to redefine taxable net income; to provide for a flat rate tax
structure; to change certain adjustments to income; to provide for procedures,
conditions, and limitations; to revise comprehensively certain provision
regarding low-income tax credits; to change and provide for sales and use tax
definitions; to change and provide for sales and use tax exemptions; to provide
for the comprehensive revision of exemptions from sales and use taxes; to
provide for the repeal of certain exemptions at various points in time; to
provide for the sales and use taxation of certain services; to provide for
conforming amendments; 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 qualified agriculture producer annual license fees; to provide for a new
exemption regarding the sale, use, storage, or consumption 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 that every
purchaser of certain tangible personal property which is or which is required to
be titled or registered by or in this state shall be liable for sales and use
tax on the purchase; to provide for requirements, procedures, conditions, and
limitations; to provide for consolidated and simplified state and local excise
taxes on communications services in lieu of certain other state or local taxes,
charges, or fees on such services; to provide for legislative findings and
intent; to provide for a short title; to provide for sales and use tax exemption
for certain products and services; to provide for comprehensive procedures,
conditions, and limitations; to provide for powers, duties, and authority of the
Department of Revenue and the state revenue commissioner; to amend certain
titles of the Official Code of Georgia Annotated so as to correct certain
cross-references and make conforming changes; to provide for effective dates; to
provide for applicability; to provide that certain provisions of this Act shall
not abate or affect prosecutions, punishments, penalties, administrative
proceedings or remedies, or civil actions related to certain violations; to
provide for related matters; 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
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by revising Code Section 48-7-20, relating to individual tax rates
and tables, as follows:
"48-7-20.
(a)
A tax is imposed upon every resident of this state with respect to the Georgia
taxable net income of the taxpayer as defined in Code Section 48-7-27. A tax is
imposed upon every nonresident with respect to such nonresident's Georgia
taxable net income not otherwise exempted which is received by the taxpayer from
services performed, property owned, proceeds of any lottery prize awarded by the
Georgia Lottery Corporation, or from business carried on in this state. Except
as otherwise provided in this chapter, the tax imposed by this subsection shall
be levied, collected, and paid annually.
(b)(1)
For taxable
years beginning prior to January 1, 2012:
(1)
The tax imposed pursuant to subsection (a) of this Code section shall be
computed in accordance with the following tables:
|
SINGLE
PERSON
|
|
|
If
Georgia Taxable
Net
Income Is:
|
The
Tax Is:
|
|
Not
over $750.00
|
1%
|
|
Over
$750.00 but not over $2,250.00
|
$7.50
plus 2% of amount over $750.00
|
|
Over
$2,250.00 but not over $3,750.00
|
$37.50
plus 3% of amount over $2,250.00
|
|
Over
$3,750.00 but not over $5,250.00
|
$82.50
plus 4% of amount over $3,750.00
|
|
Over
$5,250.00 but not over $7,000.00
|
$142.50
plus 5% of amount over $5,250.00
|
|
Over
$7,000.00
|
$230.00
plus 6% of amount over $7,000.00
|
|
MARRIED
PERSON FILING A SEPARATE RETURN
|
|
|
If
Georgia Taxable
Net
Income Is:
|
The
Tax Is:
|
|
Not
over $500.00
|
1%
|
|
Over
$500.00 but not over $1,500.00
|
$5.00
plus 2% of amount over $500.00
|
|
Over
$1,500.00 but not over $2,500.00
|
$25.00
plus 3% of amount over $1,500.00
|
|
Over
$2,500.00 but not over $3,500.00
|
$55.00
plus 4% of amount over $2,500.00
|
|
Over
$3,500.00 but not over $5,000.00
|
$95.00
plus 5% of amount over $3,500.00
|
|
Over
$5,000.00
|
$170.00
plus 6% of amount over $5,000.00
|
|
HEAD
OF HOUSEHOLD AND MARRIED PERSONS
FILING
A JOINT RETURN
|
|
|
If
Georgia Taxable
Net
Income Is:
|
The
Tax Is:
|
|
Not
over $1,000.00
|
1%
|
|
Over
$1,000.00 but not over $3,000.00
|
$10.00
plus 2% of amount over $1,000.00
|
|
Over
$3,000.00 but not over $5,000.00
|
$50.00
plus 3% of amount over $3,000.00
|
|
Over
$5,000.00 but not over $7,000.00
|
$110.00
plus 4% of amount over $5,000.00
|
|
Over
$7,000.00 but not over $10,000.00
|
$190.00
plus 5% of amount over $7,000.00
|
|
Over
$10,000.00
|
$340.00
plus 6% of amount over $10,000.00
|
(2)
To facilitate the computation of the tax by those taxpayers whose federal
adjusted gross income together with the adjustments set out in Code Section
48-7-27 for use in arriving at Georgia taxable net income is less than
$10,000.00, the commissioner may construct tax tables which may be used by the
taxpayers at their option. The tax shown to be due by the tables shall be
computed on the bases of the standard deduction and the tax rates specified in
paragraph (1) of this subsection. Insofar as practicable, the tables shall
produce a tax approximately equivalent to the tax imposed by paragraph (1) of
this subsection.
(c)
For taxable years beginning on or after January 1, 2012, and prior to January 1,
2013, the tax imposed pursuant to subsection (a) of this Code section shall be
the amount determined by multiplying the Georgia taxable net income of the
taxpayer by 4.6 percent.
(d)
For taxable years beginning on or after January 1, 2013, the tax imposed
pursuant to subsection (a) of this Code section shall be the amount determined
by multiplying the Georgia taxable net income of the taxpayer by 4.55
percent.
(c)(e)
The amount deducted and withheld by an employer from the wages of an employee
pursuant to Article 5 of this chapter, relating to current income tax payments,
shall be allowed the employee as a credit against the tax imposed by this Code
section. Amounts paid by an individual as estimated tax under Article 5 of this
chapter shall constitute payments on account of the tax imposed by this Code
section. The amount withheld or paid during any calendar year shall be allowed
as a credit or payment for the taxable year beginning in the calendar year in
which the amount is withheld or paid.
(d)(f)
The tax imposed by this Code section applies to the Georgia taxable net income
of estates and trusts, which shall be computed in the same manner as in the case
of a single individual. The tax shall be computed on the Georgia taxable net
income and shall be paid by the fiduciary."
SECTION
1-2.
Said
Title 48 is further amended by revising Code Section 48-7-26, relating to
personal exemptions, as follows:
"48-7-26.
(a)
As used in this Code section, the term 'dependent' shall have the same meaning
as in the Internal Revenue Code of 1986.
(b)(1)
An
exemption of $5,400.00 shall be allowed as a deduction in computing Georgia
taxable income of a taxpayer and spouse, but only if a joint return is
filed.
As used in
this subsection, the term 'Georgia adjusted gross income' means the federal
adjusted gross income of the taxpayer with the adjustments provided by this
chapter, except for the adjustment provided by this Code section, except for the
adjustment for itemized nonbusiness deductions provided by paragraph (1) of
subsection (b) of Code Section 48-7-27, and except for the adjustments to such
itemized nonbusiness deductions for any income taxes imposed by any tax
jurisdiction except the State of Georgia and for investment interest expense for
the production of income exempt from Georgia tax.
(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.
(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)
Commencing with the taxable year beginning January 1, 2003,
(2)
For taxable years beginning prior to January 1,
2012, 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.
(3)
For taxable years beginning on or after January 1, 2012, an exemption for each
dependent of a taxpayer shall be allowed as a deduction in computing Georgia
taxable income of the taxpayer as follows:
(A)
For a taxpayer whose Georgia adjusted gross income is not over $60,000.00, an
exemption of $5,300.00;
(B)
For a taxpayer whose Georgia adjusted gross income is over $60,000.00 but not
over $70,000.00, an exemption of $3,650.00;
(C)
For a taxpayer whose Georgia adjusted gross income is over $70,000.00 but not
over $200,000.00, an exemption of $2,000.00; or
(D)
For a taxpayer whose Georgia adjusted gross income is over $200,000.00, no
dependent exemption shall be allowed.
(c)
No exemption shall be allowed under this Code section for any dependent who has
made a joint return with such dependent's spouse for the taxable year beginning
in the calendar year in which the taxable year of the taxpayer
begins.
(d)
A deduction in lieu of a personal exemption deduction shall be allowed an estate
or a trust as follows:
(1)
An estate - $2,700.00; and
(2)
A trust - $1,350.00."
SECTION
1-3.
Said
Title 48 is further amended by revising Code Section 48-7-27, relating to
computation of Georgia taxable net income, as follows:
"48-7-27.
(a)
This Code
section shall apply to all taxable years beginning on or after January 1,
2012.
(b)
Georgia taxable net income of an individual shall be the taxpayer's federal
adjusted gross income, as defined in the United States Internal Revenue Code of
1986, less:
(1)
The
Either
the sum of all itemized nonbusiness
deductions used in computing federal taxable income if the taxpayer used
itemized nonbusiness deductions in computing federal taxable
income,
subject to the following limitations:
or, if the
taxpayer could not or did not itemize nonbusiness deductions, then a standard
deduction as provided for in the following subparagraphs:
(A)
In the case of a single taxpayer or a head of household, $2,300.00;
(B)
In the case of a married taxpayer filing a separate return,
$1,500.00;
(C)
In the case of a married couple filing a joint return, $3,000.00;
(D)
An additional deduction of $1,300.00 for the taxpayer if the taxpayer has
attained the age of 65 before the close of the taxpayer's taxable year. An
additional deduction of $1,300.00 for the spouse of the taxpayer shall be
allowed if a joint return is made by the taxpayer and the taxpayer's spouse and
the spouse has attained the age of 65 before the close of the taxable year;
and
(E)
An additional deduction of $1,300.00 for the taxpayer if the taxpayer is blind
at the close of the taxable year. An additional deduction of $1,300.00 for the
spouse of the taxpayer shall be allowed if a joint return is made by the
taxpayer and the taxpayer's spouse and the spouse is blind at the close of the
taxable year. For the purposes of this subparagraph, the determination of
whether the taxpayer or the spouse is blind shall be made at the close of the
taxable year except that, if either the taxpayer or the spouse dies during the
taxable year, the determination shall be made as of the time of the
death;
(A)(i)(I)
Taxpayers filing single or married filing separate whose Georgia adjusted gross
income does not exceed $37,500.00 may reduce their taxable income by claiming
the amount of all itemized nonbusiness deductions used in computing federal
taxable income or $15,000.00, whichever is less.
(II)
Taxpayers filing single or married filing separate whose Georgia adjusted gross
income exceeds $37,500.00 but does not exceed $80,000.00 may reduce their
taxable income by claiming the amount of all itemized nonbusiness deductions
used in computing federal taxable income or $8,500.00, whichever is less;
or
(ii)
For a taxpayer filing single or married filing separate whose Georgia adjusted
gross income exceeds the amount specified in subdivision (II) of division (i) of
this subparagraph, the authorized maximum deduction amounts shall be reduced
dollar for dollar as Georgia adjusted gross income increases above the limits
specified in subdivision (II) of division (i) of this subparagraph. As an
example of such dollar for dollar reduction, a taxpayer whose Georgia adjusted
gross income equals $80,001.00 may deduct the amount of itemized nonbusiness
deductions used in computing federal taxable income or $8,499.00, whichever is
less. A taxpayer whose Georgia adjusted gross income is $88,500.00 or more shall
not be authorized to claim and be allowed itemized nonbusiness
deductions.
(B)(i)(I)
Married taxpayers filing jointly or taxpayers filing head of household whose
Georgia adjusted gross income does not exceed $75,000.00 may reduce their
taxable income by claiming the amount of all itemized nonbusiness deductions
used in computing federal taxable income or $30,000.00, whichever is
less.
(II)
Married taxpayers filing jointly or taxpayers filing head of household whose
Georgia adjusted gross income exceeds $75,000.00 but does not exceed $160,000.00
may reduce their taxable income by claiming the amount of all itemized
nonbusiness deductions used in computing federal taxable income or $17,000.00,
whichever is less.
(ii)
For a married taxpayer filing jointly or taxpayers filing head of household
whose Georgia adjusted gross income exceeds the amount specified in subdivision
(II) of division (i) of this subparagraph, the authorized maximum deduction
amounts shall be reduced dollar for dollar as Georgia adjusted gross income
increases above the limits specified in subdivision (II) of division (i) of this
subparagraph. As an example of such dollar for dollar reduction, a married
taxpayer filing jointly whose Georgia adjusted gross income equals $160,001.00
may deduct the amount of itemized nonbusiness deductions used in computing
Georgia taxable income or $16,999.00, whichever is less. A married taxpayer
filing jointly whose Georgia adjusted gross income is $177,000.00 or more shall
not be authorized to claim and be allowed itemized nonbusiness
deductions.
(C)
The limitations of subparagraphs (A) and (B) of this paragraph shall not apply
to unreimbursed employee business expenses which exceed the 2 percent federal
adjusted gross income threshold in an amount that exceeds $2,500.00 which are
claimed by and allowed the taxpayer in computing federal taxable income;
provided, however, in no event shall the amount claimed and allowed for state
income tax purposes under this subparagraph exceed $8,000.00.
(D)
A taxpayer moving into the state or moving out of the state shall determine the
amount allowed as if such taxpayer was a resident of this state for the entire
year and then prorate the amount allowed as provided in Code Section
48-7-85.
(E)
A nonresident taxpayer shall determine the amount allowed as if such taxpayer
was a resident of this state for the entire year and then prorate, the amount
allowed pursuant to this paragraph and Code Section 48-7-30, as provided in Code
Section 48-7-30.
(F)
As used in this paragraph, the term 'Georgia adjusted gross income' means the
federal adjusted gross income of the taxpayer with the adjustments provided by
this chapter, except for the adjustment provided by Code Section 48-7-26, except
for the adjustment for itemized nonbusiness deductions provided by this
paragraph, and except for the adjustments to such itemized nonbusiness
deductions for any income taxes imposed by any tax jurisdiction except the State
of Georgia and for investment interest expense for the production of income
exempt from Georgia tax;
(2)
The exemptions provided for in Code Section 48-7-26 together with the
adjustments provided for in subsection
(b)
(c)
of this Code section;
(3)(A)
The amount of salary and wage expenses eliminated in computing the individual's
federal adjusted gross income because the individual has taken a federal jobs
tax credit which requires, as a condition to using the federal jobs tax credit,
the elimination of related salary and wage expenses.
(B)
The amount of mortgage interest eliminated from federal itemized deductions for
the purpose of computing mortgage interest credit on the federal
return;
(4)(A)
Income received from public pension or retirement funds, programs, or systems
the income from which is exempted by federal law or treaty when the income is
otherwise included in the taxpayer's federal adjusted gross income.
(B)
Except as specifically provided in subparagraph (A) of this paragraph,
paragraph (5) of this subsection, and paragraph (7) of this subsection,
for taxable
years beginning on or after January 1,
1989, no income from a public pension or
retirement fund, program, or system (including those pension or retirement
funds, programs, or systems provided for in Title 47) shall be exempt from
income taxation in this state, notwithstanding any provision of Title 47 or any
other provision of law to the contrary;
(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;
and
(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;.
(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;
(6)
A portion of the qualified payments to minority subcontractors, as provided in
Code Section 48-7-38;
(7)
Social security benefits and tier 1 railroad retirement benefits, to the extent
included in federal taxable income;
(8)
The amount of a dependent's unearned income included in federal adjusted gross
income of a parent's return;
(9)(8)
An amount equal to the amount of contributions to the Teachers Retirement System
of Georgia made by a taxpayer between July 1, 1987, and December 31, 1989, which
contributions were not subject to federal income taxation but were subject to
Georgia income taxation. The purpose of the exclusion provided for in this
paragraph is to allow a taxpayer a recovery adjustment for such amount after
commencement of distributions by such retirement system to such taxpayer and to
establish the same basis for federal and state income tax purposes;
(10)(9)
With respect to a taxpayer who is a self-employed individual treated as an
employee pursuant to Section 401(c)(1) of the Internal Revenue Code, an amount
equal to the amount paid by the taxpayer during the taxable year for insurance
which constitutes medical care for the taxpayer and the spouse and dependents of
the taxpayer which is not otherwise deductible by the taxpayer for federal
income tax purposes because the applicable percentage for that taxable year as
specified pursuant to Section 162(l) of the Internal Revenue Code is less than
100 percent;
(11)(10)
For taxable years beginning on or after January 1, 2002, and prior to January 1,
2007:
(A)
An amount equal to the amount of contributions by parents or guardians of a
designated beneficiary to a savings trust account established pursuant to
Article 11 of Chapter 3 of Title 20 on behalf of the designated beneficiary who
is claimed as a dependent on the Georgia income tax return of the beneficiary's
parents or guardians, but not exceeding $2,000.00 per beneficiary;
(B)
If the parents or guardians file joint returns, separate returns, or single
returns, the sum of contributions constituting deductions on their returns under
this paragraph shall not exceed $2,000.00 per beneficiary;
(C)
In order to claim the deduction for a taxable year:
(i)
Such parent or guardian must have claimed and been allowed itemized deductions
pursuant to Section 63(d) of the Internal Revenue Code of 1986 and paragraph (1)
of this subsection;
(ii)
The federal adjusted gross income for such taxable year cannot exceed
$100,000.00 for a joint return or $50,000.00 for a separate or single return
except as provided in subparagraph (D) of this paragraph; and
(iii)
Such parent or guardian must be the account owner of the designated
beneficiary's account;
(D)
The maximum deduction authorized by this paragraph for each beneficiary shall
decrease by $400.00 for each $1,000.00 of federal adjusted gross income over
$100,000.00 for a joint return or $50,000.00 for a separate or single return;
and
(E)
For purposes of this paragraph, contributions or payments for any such taxable
year may be made during or after such taxable year but on or before the deadline
for making contributions to an individual retirement account pursuant to Section
219(f)(3) of the Internal Revenue Code of 1986;
(11.1)(11)
For taxable years beginning on or after January 1, 2007:
(A)
An amount equal to the amount of contributions to a savings trust account
established pursuant to Article 11 of Chapter 3 of Title 20 on behalf of the
designated beneficiary, but not exceeding $2,000.00 per
beneficiary;
(B)
If the contributor files a separate return or single return, the sum of
contributions constituting deductions on the contributor's return under this
paragraph shall not exceed $2,000.00 per beneficiary;
(C)
If the contributor files a joint return, the sum of contributions constituting
deductions on the contributor's return under this paragraph shall not exceed
$2,000.00 per beneficiary; and
(D)
For purposes of this paragraph, contributions or payments for any such taxable
year may be made during or after such taxable year but on or before the deadline
for making contributions to an individual retirement account under federal law
for such taxable year;
(12)
Military income received by a member of the National Guard or any reserve
component of the armed services of the United States stationed in a combat zone
or stationed in defense of the borders of the United States pursuant to military
orders. The exclusion provided under this paragraph:
(A)
Shall apply with respect to each taxable year, or portion thereof, covered by
such military orders; and
(B)
Shall apply only with respect to such member of the National Guard or any
reserve component of the armed forces and only with respect to military income
earned during the period covered by such military
orders.;
(13)(A)
An amount equal to the actual amount expended for organ donation expenses not to
exceed the amount of $10,000.00 incurred in accordance with the 'National Organ
Procurement Act.'
(B)
In order to qualify for the exclusion under subparagraph (A) of this paragraph,
such taxpayer must, while living, donate all or part of such person's liver,
pancreas, kidney, intestine, lung, or bone marrow. In the taxable year in which
the donation is made, the taxpayer shall be entitled to claim the exclusion
provided in subparagraph (A) of this paragraph only with respect to unreimbursed
travel expenses, lodging expenses, and lost wages incurred as a direct result of
the organ donation;
(13.1)
An amount equal to 100 percent of the premium paid by the taxpayer during the
taxable year for high deductible health plans as defined by Section 223 of the
Internal Revenue Code to the extent the deduction has not been included in
federal adjusted gross income, as defined under the Internal Revenue Code of
1986, and the expenses have not been provided from a health reimbursement
arrangement and have not been included in itemized nonbusiness
deductions;
(14)
The deduction for school teachers provided and allowed by Section 62(a)(2)(D) of
the Internal Revenue Code of 1986 as enacted on or before January 1, 2005, to
the extent the deduction has not been included in federal adjusted gross income,
as defined under the Internal Revenue Code of 1986, and the expenses have not
been included in itemized nonbusiness deductions; and
(15)
The deduction provided and allowed by Section 179 of the Internal Revenue Code
of 1986 as enacted on or before January 1, 2005, to the extent the deduction has
not been included in federal adjusted gross income, as defined under the
Internal Revenue Code of 1986, and the expenses have not been included in
itemized nonbusiness deductions.
(b)(1)(c)(1)
There shall be added to the taxable income:
(A)
Dividend or interest income, to the extent that the dividend or interest income
is not included in gross income for federal income tax purposes, on obligations
of any state except this state or of political subdivisions except political
subdivisions of this state;
(B)
Interest or dividends on obligations of the United States or of any authority,
commission, instrumentality, territory, or possession of the United States which
by the laws of the United States are exempt from federal income taxes but not
from state income taxes; and
(C)
Income consisting of lump sum distributions from an annuity, pension plan, or
similar source which were removed from federal adjusted gross income for the
purposes of special federal tax computations or treatment.
(2)
There shall be subtracted from taxable income interest or dividends on
obligations of the United States and its territories and possessions or of any
authority, commission, or instrumentality of the United States to the extent
includable in gross income for federal income tax purposes but exempt from state
income taxes under the laws of the United States. Any amount subtracted under
this paragraph shall be reduced by any interest expenses directly or indirectly
attributable to the production of the interest or dividend income.
(3)
There shall be added to taxable income any income taxes imposed by any tax
jurisdiction except the State of Georgia to the extent deducted in determining
federal taxable income.
(4)
No portion of any deductions or losses including, but not limited to, net
operating losses, which occurred in a year in which the taxpayer was not subject
to taxation in this state, may be deducted in any tax year. When federal
adjusted gross income includes deductions or losses not allowed pursuant to this
paragraph, an adjustment deleting them shall be made under rules established by
the commissioner.
(5)
Income, losses, and deductions previously used in computing Georgia taxable
income shall not again be used in computing Georgia taxable income; and the
commissioner shall provide for needed adjustments by regulation.
(6)
Reserved.
(7)(6)
Except as otherwise provided in paragraph (4) of subsection
(a)
(b)
of this Code section, this chapter shall not be construed to repeal any tax
exemptions contained in other laws of this state not referred to in this Code
section. Those exemptions and the exemptions provided by federal law and treaty
shall be deducted on forms provided by the commissioner.
(8)(7)
All elections made by the taxpayer under the Internal Revenue Code of 1954 or
the Internal Revenue Code of 1986 shall also apply under this
article.
(9)(8)
If the taxpayer claims the tax credit provided for in subsection (d) of Code
Section 48-7-40.6 with respect to qualified child care property, Georgia taxable
income shall be increased by any depreciation deductions attributable to such
property to the extent such deductions are used in determining federal taxable
income.
(10)(A)(9)(A)
Except as otherwise provided in subparagraph (C) of this paragraph, the amount
of any qualified withdrawals from a savings trust account under Article 11 of
Chapter 3 of Title 20 shall not be subject to state income tax under this
chapter.
(B)
For withdrawals other than qualified withdrawals from such a savings trust
account, the proportion of earnings in the account balance at the time of the
withdrawal shall be applied to the total funds withdrawn to determine the
earnings portion to be included in the account owner's taxable net income in the
year of withdrawal.
(C)
For withdrawals other than qualified withdrawals from such a savings trust
account and for withdrawals from such a savings trust account which are rolled
over to a qualified tuition program other than the qualified tuition program
established under Article 11 of Chapter 3 of Title 20, the proportion of the
contributions in an account balance at the time of a withdrawal which previously
have been used to reduce taxable net income pursuant to subsection
(a)
(b)
of this Code section shall be applied to the nonearnings portion of the total
funds withdrawn to determine an amount to be included in the account owner's
taxable net income in the same taxable year.
(11)(10)
Georgia taxable income shall be adjusted as provided in Code
Section 48-7-28.3.
(12)(11)
Georgia taxable income shall be increased by the amount of the payments,
compensation, or other economic benefit disallowed by Code Section
48-7-21.1.
(13)(12)
Georgia taxable income shall be adjusted as provided in Code
Section 48-7-28.4.
(c)(d)
Georgia taxable income shall, if the taxpayer so elects, be adjusted with
respect to federal depreciation deductions as provided in Code Section
48-7-39.
(d)(1)(A)(e)(1)(A)
As used in this paragraph, the term 'individual' shall mean the same as is
defined in Code Section 48-1-2.
(B)
Georgia resident shareholders of Subchapter 'S' corporations may make an
adjustment to federal adjusted gross income for Subchapter 'S' corporation
income where another state does not recognize a Subchapter 'S'
corporation.
(C)
A Georgia individual resident who is a partner in a partnership, who is a member
of a limited liability company taxed as a partnership, or who is a single member
of a limited liability company which is disregarded for federal income tax
purposes may make an adjustment to federal adjusted gross income for the
entity's income taxed in another state which imposes on the entity a tax on or
measured by income.
(D)
Adjustments pursuant to this paragraph shall only be allowed for the portion of
the income on which such tax was actually paid by such Subchapter 'S'
corporation, partnership, or limited liability company. In multitiered
situations, the adjustment for such individual shall be determined by allocating
such income between the shareholders, partners, or members at each tier based
upon their profit/loss percentage.
(2)
Nonresident shareholders of a Georgia Subchapter 'S' corporation shall execute a
consent agreement to pay Georgia income tax on their portion of the corporate
income in order for such Subchapter 'S' corporation to be recognized for Georgia
purposes. A consent agreement for each shareholder shall be filed by the
corporation with its corporate tax return in the year in which the Subchapter
'S' corporation is first required to file a Georgia income tax return. For a
Subchapter 'S' corporation in existence prior to January 1, 2008, the consent
agreement shall be filed for each shareholder in the first Georgia tax return
filed for a year beginning on or after January 1, 2008. A consent agreement
shall also be filed in any subsequent year for any additional nonresident who
first becomes a shareholder of the Subchapter 'S' corporation in that year.
Shareholders of a federal Subchapter 'S' corporation which is not recognized for
Georgia purposes may make an adjustment to federal adjusted gross income in
order to avoid double taxation on this type of income. Adjustments shall not be
allowed unless tax was actually paid by such corporation."
SECTION
1-4.
Said
Title 48 is further amended by repealing and reserving Code Section 48-7A-2,
relating to the definition of dependent for low-income tax credit
purposes.
SECTION
1-5.
Said
Title 48 is further amended by revising Code Section 48-7A-3, relating to
low-income tax credits, as follows:
"48-7A-3.
(a)
Except as
otherwise provided in subsection (e) of this Code section,
each
Each
resident taxpayer who files an individual income tax return for a taxable year
and who is not claimed or is not otherwise eligible to be claimed as a dependent
by another taxpayer for federal or Georgia individual income tax purposes may
claim a tax credit against the resident taxpayer's individual income tax
liability for the taxable year for which the individual income tax return is
being filed as
provided in subsection (b) of this Code
section;
provided that:
(1)
A husband and wife filing a joint return shall each be deemed a dependent for
purposes of such joint return; and
(2)
A husband and wife filing separate returns for a taxable year for which a joint
return could have been filed by them shall claim only the tax credit to which
they would have been entitled had a joint return been
filed.
(b)(1)
For purposes of this subsection, the term Georgia adjusted gross income shall
have the same meaning as provided in paragraph (1) of subsection (b) of Code
Section 48-7-26.
(2)
For all taxable years beginning on or after January 1, 2012, and prior to
January 1, 2013, each resident
Each
taxpayer may claim a tax credit in the amount indicated for each
Georgia
adjusted gross income bracket as shown in the schedule
below:
multiplied
by the number of dependents which the taxpayer is entitled to claim. Each
taxpayer 65 years of age or over may claim double the tax credit.
|
TAX
CREDIT SCHEDULE
|
|||||
|
Adjusted
Gross
Income Tax
Credit
|
|||||
|
Under
$6,000.00
|
$
26.00
|
||||
|
6,000.00
but not more than 7,999.00
|
20.00
|
||||
|
8,000.00
but not more than 9,999.00
|
14.00
|
||||
|
10,000.00
but not more than 14,999.00
|
8.00
|
||||
|
15,000.00
but not more than 19,999.00
|
5.00
|
||||
|
Georgia
Adjusted
Gross
Income
|
Tax
Credit
|
|
|||
|
|
Single
|
Married
Filing
Joint
|
Head
of Household
|
Married
Filing Separate
|
|
|
Under
$750.00
|
$35.00
|
$35.00
|
$35.00
|
$35.00
|
|
|
$750.00
but not more than $999.00
|
$46.00
|
$46.00
|
$46.00
|
$46.00
|
|
|
$1,000.00
but not more than $1,999.00
|
$92.00
|
$92.00
|
$92.00
|
$92.00
|
|
|
$2,000.00
but not more than $2,999.00
|
$138.00
|
$138.00
|
$138.00
|
$138.00
|
|
|
$3,000.00
but not more than $3,999.00
|
$184.00
|
$184.00
|
$184.00
|
$184.00
|
|
|
$4,000.00
but not more than $4,999.00
|
$230.00
|
$230.00
|
$230.00
|
$219.00
|
|
|
$5,000.00
but not more than $5,999.00
|
$264.00
|
$276.00
|
$266.00
|
$242.00
|
|
|
$6,000.00
but not more than $6,999.00
|
$290.00
|
$322.00
|
$292.00
|
$255.00
|
|
|
$7,000.00
but not more than $7,999.00
|
$308.00
|
$368.00
|
$318.00
|
$258.00
|
|
|
$8,000.00
but not more than $8,999.00
|
$322.00
|
$408.00
|
$334.00
|
$254.00
|
|
|
$9,000.00
but not more than $9,999.00
|
$328.00
|
$438.00
|
$350.00
|
$242.00
|
|
|
$10,000.00
but not more than $10,999.00
|
$326.00
|
$464.00
|
$356.00
|
$228.00
|
|
|
$11,000.00
but not more than $11,999.00
|
$322.00
|
$484.00
|
$362.00
|
$214.00
|
|
|
$12,000.00
but not more than $12,999.00
|
$308.00
|
$500.00
|
$358.00
|
$200.00
|
|
|
$13,000.00
but not more than $13,999.00
|
$294.00
|
$510.00
|
$354.00
|
$186.00
|
|
|
$14,000.00
but not more than $14,999.00
|
$280.00
|
$516.00
|
$350.00
|
$172.00
|
|
|
$15,000.00
but not more than $15,999.00
|
$266.00
|
$516.00
|
$336.00
|
$158.00
|
|
|
$16,000.00
but not more than $16,999.00
|
$252.00
|
$512.00
|
$322.00
|
$144.00
|
|
|
$17,000.00
but not more than $17,999.00
|
$238.00
|
$508.00
|
$308.00
|
$130.00
|
|
|
$18,000.00
but not more than $18,999.00
|
$224.00
|
$498.00
|
$294.00
|
$116.00
|
|
|
$19,000.00
but not more than $19,999.00
|
$210.00
|
$484.00
|
$280.00
|
$102.00
|
|
|
$20,000.00
but not more than $20,999.00
|
$196.00
|
$470.00
|
$266.00
|
$88.00
|
|
|
$21,000.00
but not more than $21,999.00
|
$182.00
|
$456.00
|
$252.00
|
$74.00
|
|
|
$22,000.00
but not more than $22,999.00
|
$168.00
|
$442.00
|
$238.00
|
$60.00
|
|
|
$23,000.00
but not more than $23,999.00
|
$154.00
|
$428.00
|
$224.00
|
$46.00
|
|
|
$24,000.00
but not more than $24,999.00
|
$140.00
|
$414.00
|
$210.00
|
$32.00
|
|
|
$25,000.00
but not more than $25,999.00
|
$126.00
|
$400.00
|
$196.00
|
$18.00
|
|
|
$26,000.00
but not more than $26,999.00
|
$112.00
|
$386.00
|
$182.00
|
$4.00
|
|
|
$27,000.00
but not more than $27,999.00
|
$98.00
|
$372.00
|
$168.00
|
0
|
|
|
$28,000.00
but not more than $28,999.00
|
$84.00
|
$358.00
|
$154.00
|
0
|
|
|
$29,000.00
but not more than $29,999.00
|
$70.00
|
$344.00
|
$140.00
|
0
|
|
|
$30,000.00
but not more than $30,999.00
|
$56.00
|
$330.00
|
$126.00
|
0
|
|
|
$31,000.00
but not more than $31,999.00
|
$42.00
|
$316.00
|
$112.00
|
0
|
|
|
$32,000.00
but not more than $32,999.00
|
$28.00
|
$302.00
|
$98.00
|
0
|
|
|
$33,000.00
but not more than $33,999.00
|
$14.00
|
$288.00
|
$84.00
|
0
|
|
|
$34,000.00
but not more than $34,999.00
|
0
|
$274.00
|
$70.00
|
0
|
|
|
$35,000.00
but not more than $35,999.00
|
0
|
$260.00
|
$56.00
|
0
|
|
|
$36,000.00
but not more than $36,999.00
|
0
|
$246.00
|
$42.00
|
0
|
|
|
$37,000.00
but not more than $37,999.00
|
0
|
$232.00
|
$28.00
|
0
|
|
|
$38,000.00
but not more than $38,999.00
|
0
|
$218.00
|
$14.00
|
0
|
|
|
$39,000.00
but not more than $39,999.00
|
0
|
$204.00
|
0
|
0
|
|
|
$40,000.00
but not more than $40,999.00
|
0
|
$190.00
|
0
|
0
|
|
|
$41,000.00
but not more than $41,999.00
|
0
|
$176.00
|
0
|
0
|
|
|
$42,000.00
but not more than $42,999.00
|
0
|
$162.00
|
0
|
0
|
|
|
$43,000.00
but not more than $43,999.00
|
0
|
$148.00
|
0
|
0
|
|
|
$44,000.00
but not more than $44,999.00
|
0
|
$134.00
|
0
|
0
|
|
|
$45,000.00
but not more than $45,999.00
|
0
|
$120.00
|
0
|
0
|
|
|
$46,000.00
but not more than $46,999.00
|
0
|
$106.00
|
0
|
0
|
|
|
$47,000.00
but not more than $47,999.00
|
0
|
$92.00
|
0
|
0
|
|
|
$48,000.00
but not more than $48,999.00
|
0
|
$78.00
|
0
|
0
|
|
|
$49,000.00
but not more than $49,999.00
|
0
|
$64.00
|
0
|
0
|
|
|
$50,000.00
but not more than $50,999.00
|
0
|
$50.00
|
0
|
0
|
|
|
$51,000.00
but not more than $51,999.00
|
0
|
$36.00
|
0
|
0
|
|
|
$52,000.00
but not more than $52,999.00
|
0
|
$22.00
|
0
|
0
|
|
|
$53,000.00
but not more than $53,999.00
|
0
|
$8.00
|
0
|
0
|
|
|
$54,000.00
or more
|
0
|
0
|
0
|
0
|
|
(3)
For all taxable years beginning on or after January 1, 2013, each resident
taxpayer may claim a tax credit in the amount indicated for each Georgia
adjusted gross income bracket as shown in the schedule below:
|
Georgia
Adjusted
Gross
Income
|
Tax
Credit
|
|||
|
|
Single
|
Married
Filing
Joint
|
Head
of Household
|
Married
Filing Separate
|
|
Under
$750.00
|
$34.00
|
$34.00
|
$34.00
|
$34.00
|
|
$750.00
but not more than $999.00
|
$46.00
|
$46.00
|
$46.00
|
$46.00
|
|
$1,000.00
but not more than $1,999.00
|
$91.00
|
$91.00
|
$91.00
|
$91.00
|
|
$2,000.00
but not more than $2,999.00
|
$137.00
|
$137.00
|
$137.00
|
$137.00
|
|
$3,000.00
but not more than $3,999.00
|
$182.00
|
$182.00
|
$182.00
|
$182.00
|
|
$4,000.00
but not more than $4,999.00
|
$228.00
|
$228.00
|
$228.00
|
$217.00
|
|
$5,000.00
but not more than $5,999.00
|
$261.00
|
$273.00
|
$263.00
|
$239.00
|
|
$6,000.00
but not more than $6,999.00
|
$286.00
|
$319.00
|
$289.00
|
$252.00
|
|
$7,000.00
but not more than $7,999.00
|
$304.00
|
$364.00
|
$314.00
|
$254.00
|
|
$8,000.00
but not more than $8,999.00
|
$317.00
|
$404.00
|
$330.00
|
$250.00
|
|
$9,000.00
but not more than $9,999.00
|
$323.00
|
$433.00
|
$345.00
|
$237.00
|
|
$10,000.00
but not more than $10,999.00
|
$321.00
|
$459.00
|
$351.00
|
$223.00
|
|
$11,000.00
but not more than $11,999.00
|
$316.00
|
$478.00
|
$356.00
|
$208.00
|
|
$12,000.00
but not more than $12,999.00
|
$302.00
|
$494.00
|
$352.00
|
$194.00
|
|
$13,000.00
but not more than $13,999.00
|
$287.00
|
$503.00
|
$347.00
|
$179.00
|
|
$14,000.00
but not more than $14,999.00
|
$273.00
|
$509.00
|
$343.00
|
$165.00
|
|
$15,000.00
but not more than $15,999.00
|
$258.00
|
$508.00
|
$328.00
|
$150.00
|
|
$16,000.00
but not more than $16,999.00
|
$244.00
|
$504.00
|
$314.00
|
$136.00
|
|
$17,000.00
but not more than $17,999.00
|
$229.00
|
$499.00
|
$299.00
|
$121.00
|
|
$18,000.00
but not more than $18,999.00
|
$215.00
|
$489.00
|
$285.00
|
$107.00
|
|
$19,000.00
but not more than $19,999.00
|
$200.00
|
$474.00
|
$270.00
|
$92.00
|
|
$20,000.00
but not more than $20,999.00
|
$186.00
|
$460.00
|
$256.00
|
$78.00
|
|
$21,000.00
but not more than $21,999.00
|
$171.00
|
$445.00
|
$241.00
|
$63.00
|
|
$22,000.00
but not more than $22,999.00
|
$157.00
|
$431.00
|
$227.00
|
$49.00
|
|
$23,000.00
but not more than $23,999.00
|
$142.00
|
$416.00
|
$212.00
|
$34.00
|
|
$24,000.00
but not more than $24,999.00
|
$128.00
|
$402.00
|
$198.00
|
$20.00
|
|
$25,000.00
but not more than $25,999.00
|
$113.00
|
$387.00
|
$183.00
|
$5.00
|
|
$26,000.00
but not more than $26,999.00
|
$99.00
|
$373.00
|
$169.00
|
0
|
|
$27,000.00
but not more than $27,999.00
|
$84.00
|
$358.00
|
$154.00
|
0
|
|
$28,000.00
but not more than $28,999.00
|
$70.00
|
$344.00
|
$140.00
|
0
|
|
$29,000.00
but not more than $29,999.00
|
$55.00
|
$329.00
|
$125.00
|
0
|
|
$30,000.00
but not more than $30,999.00
|
$41.00
|
$315.00
|
$111.00
|
0
|
|
$31,000.00
but not more than $31,999.00
|
$26.00
|
$300.00
|
$96.00
|
0
|
|
$32,000.00
but not more than $32,999.00
|
$12.00
|
$286.00
|
$82.00
|
0
|
|
$33,000.00
but not more than $33,999.00
|
0
|
$271.00
|
$67.00
|
0
|
|
$34,000.00
but not more than $34,999.00
|
0
|
$257.00
|
$53.00
|
0
|
|
$35,000.00
but not more than $35,999.00
|
0
|
$242.00
|
$38.00
|
0
|
|
$36,000.00
but not more than $36,999.00
|
0
|
$228.00
|
$24.00
|
0
|
|
$37,000.00
but not more than $37,999.00
|
0
|
$213.00
|
$9.00
|
0
|
|
$38,000.00
but not more than $38,999.00
|
0
|
$199.00
|
0
|
0
|
|
$39,000.00
but not more than $39,999.00
|
0
|
$184.00
|
0
|
0
|
|
$40,000.00
but not more than $40,999.00
|
0
|
$170.00
|
0
|
0
|
|
$41,000.00
but not more than $41,999.00
|
0
|
$155.00
|
0
|
0
|
|
$42,000.00
but not more than $42,999.00
|
0
|
$141.00
|
0
|
0
|
|
$43,000.00
but not more than $43,999.00
|
0
|
$126.00
|
0
|
0
|
|
$44,000.00
but not more than $44,999.00
|
0
|
$112.00
|
0
|
0
|
|
$45,000.00
but not more than $45,999.00
|
0
|
$97.00
|
0
|
0
|
|
$46,000.00
but not more than $46,999.00
|
0
|
$83.00
|
0
|
0
|
|
$47,000.00
but not more than $47,999.00
|
0
|
$68.00
|
0
|
0
|
|
$48,000.00
but not more than $48,999.00
|
0
|
$54.00
|
0
|
0
|
|
$49,000.00
but not more than $49,999.00
|
0
|
$39.00
|
0
|
0
|
|
$50,000.00
but not more than $50,999.00
|
0
|
$25.00
|
0
|
0
|
|
$51,000.00
but not more than $51,999.00
|
0
|
$10.00
|
0
|
0
|
|
$52,000.00
or more
|
0
|
0
|
0
|
0
|
(c)
The tax credit claimed by a resident taxpayer pursuant to this Code section
shall be deductible from the resident taxpayer's individual income tax
liability, if any, for the tax year in which it is properly claimed; provided,
however, that in no event shall the total amount of the tax credit under this
Code section for a taxable year exceed the taxpayer's income tax liability. Any
unused credit amount shall not be allowed to be carried forward to the
taxpayer's succeeding years' tax liability. No such credit shall be allowed the
taxpayer against prior years' tax liability.
(d)
All claims for a tax credit under this Code section, including any amended
claims, must be filed on or before the end of the twelfth month following the
close of the taxable year for which the credit may be claimed. Failure to
comply with this subsection shall constitute a waiver of the right to claim the
credit.
(e)
Any individual who receives a food stamp allotment for all or any part of a
taxable year shall not be entitled to claim a credit under this Code section for
that taxable year.
(e.1)(d)
Any individual incarcerated or confined in any city, county, municipal, state,
or federal penal or correctional institution for all or any part of a taxable
year shall not be entitled to claim a credit under this Code section for that
taxable year.
(f)(e)
The commissioner shall be authorized by rule and regulation to provide for the
proper administration of this Code section."
PART
II
SECTION 2-1.
SECTION 2-1.
Title 48 of the Official Code
of Georgia Annotated, relating to revenue and taxation, is amended in Code
Section 48-8-2, relating to definitions regarding sales and use tax, by adding a
new subparagraph in paragraph (8), to read as follows:
"(K.1)
Provides any services described under Code Section
48-8-2.1;"
SECTION
2-2.
Said Title 48 is further
amended in said Code section by adding a new subparagraph in paragraph (31), to
read as follows:
"(D.1)
Sales of or charges made for any services enumerated in Code Section
48-8-2.1;"
SECTION
2-3.
Said Title 48 is further
amended by adding a new Code section to read as follows:
"48-8-2.1.
(a)
As used in this Code section, the term 'motor vehicle' shall have the same
meaning as provided for in paragraph (33) of Code Section 40-1-1.
(b)
Services provided for under subparagraph (D.1) of paragraph (31) of Code Section
48-8-2 means motor vehicle maintenance, repair, or installation services on
motor vehicles used for personal use, including those made on:
(1)
Tires;
(2)
Audio equipment;
(3)
Video equipment;
(4)
Body work and painting;
(5)
Clutches or transmissions;
(6)
Drive shaft or rear-end work;
(7)
Brakes;
(8)
Steering or front-end work;
(9)
Engine cooling systems;
(10)
Motor tune-ups;
(11)
Oil change, lubrication, or oil filter;
(12)
Front-end alignment, wheel balancing, or wheel rotation;
(13)
Shock absorbers;
(14)
Batteries or miscellaneous equipment work;
(15)
Exhaust systems;
(16)
Electrical systems;
(17)
Engines;
(18)
Vehicle accessories or customizations; and
(19)
Vehicle cleaning or
detailing."
SECTION
2-4.
Said Title 48 is further
amended in Code Section 48-8-3, relating to exemptions from sales and use tax,
by revising paragraphs (23), (25), (26), (27), (28), (29), (29.1), (34), (34.3),
(35), (37), (49), (64), (77), (79), and (90) as follows:
"(23)
Fees or charges for services rendered by repairmen for which a separate charge
is made but
not including services for motor vehicle maintenance, repair, or installation
listed in Code Section
48-8-2.1;"
"(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.
This paragraph shall stand repealed in its entirety on January 1,
2012;
(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. This
paragraph shall stand repealed in its entirety on January 1,
2012;
(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.
This paragraph shall stand repealed in its entirety on January 1,
2012;
(28)
The sale of cattle, hogs, sheep, horses, poultry, or bees when sold for breeding
purposes.
This paragraph shall stand repealed in its entirety on January 1,
2012;
(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;
This
paragraph shall stand repealed in its entirety on January 1, 2012;
(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.
This paragraph shall stand repealed in its entirety on January 1,
2012;"
"(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;.
This
paragraph shall stand repealed in its entirety on January 1,
2012;"
"(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.
(C)
This paragraph shall stand repealed in its entirety on January 1,
2012;"
"(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;
(C)
This paragraph shall stand repealed in its entirety on January 1,
2012;"
"(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. This
paragraph shall stand repealed in its entirety on January 1,
2012;"
"(49)
Sales of liquefied petroleum gas or other fuel used in a structure in which
broilers, pullets, or other poultry are
raised. This
paragraph shall stand repealed in its entirety on January 1,
2012;"
"(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. This
paragraph shall stand repealed in its entirety on January 1,
2012;"
"(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. This
paragraph shall stand repealed in its entirety on January 1,
2012;"
"(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. This
paragraph shall stand repealed in its entirety on January 1,
2012;"
"(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.
This paragraph shall stand repealed in its entirety on January 1,
2015; or"
SECTION
2-5.
Said Title 48 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)
'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.
(7)
'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.
(8)
'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.
(9)
'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.
(10)
'Manufacturing plant' means any facility, site, or other area where a
manufacturer engages in the manufacture of tangible personal
property.
(11)
'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.
(12)
'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.
(13)
'Real property' means land, any buildings thereon, and any fixtures attached
thereto.
(14)
'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.
(15)
'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 sales and use taxes levied or imposed by this article shall not apply to 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.
(c)(1)
As used in this subsection, the term 'local sales and use tax' shall mean 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'; by or pursuant to any article of this chapter.
(2)
The sales and use taxes levied or imposed by this article shall not apply to the
sale, use, storage, or consumption of energy which is necessary and integral to
the manufacture of tangible personal property 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 shall be exempt from
an amount equal to 33 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 and shall be exempt from an amount equal to 33 percent of the total
amount of each local sales and use tax that would be collected at the rate of 1
percent on such sales, use, storage, or consumption;
(B)
For the period commencing January 1, 2014, and concluding at the last moment of
December 31, 2014, such sale, use, storage, or consumption shall be exempt from
an amount equal to 67 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 and shall be exempt from an amount equal to 67 percent of the total
amount of each local sales and use tax that would be collected at the rate of 1
percent on such sales, use, storage, or consumption; and
(C)
On or after January 1, 2015, such sale, use, storage, or consumption shall be
exempt from all state and local sales and use taxes.
(d)
The exemption 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 as 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 will 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 to manufacture tangible personal property to be used
for promotional use;
(12)
Machinery or equipment used in quarrying and mining activities, including
blasting, extraction, and crushing; and
(13)
Energy used at a manufacturing
plant."
SECTION
2-6.
Said Title 48 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; 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 harvestors, 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, eggs, 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; 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 byproducts; 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
that 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 for 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 applicants will be issued by the Commissioner of Agriculture an
agricultural sales and use tax exemption certificate which contains an exemption
number. To facilitate the use of the exemption certificate, a wallet-sized card
containing that same information will 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 program. 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 the
program."
SECTION
2-7.
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 48-8-3.2, 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 the program under Code Section 48-8-3.3. Any fees
collected pursuant to this Code section shall be retained pursuant to the
provisions of Code Section
45-12-92.1."
SECTION
2-8.
Title 48 of the Official Code
of Georgia Annotated, relating to revenue and taxation, is amended in Code
Section 48-8-30, relating to imposition of sales and use taxes, by adding a new
subsection to read as follows:
"(b.1)(1)
As used in this subsection, the term:
(A)
'Aircraft' means any aircraft which is required to be registered with the
Federal Aviation Administration.
(B)
'Immediate family member' means spouse, parent, child, or sibling.
(C)
'Motor vehicle' shall have the same meaning as provided in paragraph (33) of
Code Section 40-1-1.
(D)
'Vessel' shall have the same meaning as provided in paragraph (25) of Code
Section 52-7-3.
(2)
In the case of a transaction where the tax under this Code section is not levied
and collected under paragraph (1) of subsection (b) of this Code section, except
as provided in paragraph (3) of this subsection, every purchaser of tangible
personal property, including, but not limited to, a motor vehicle, vessel, and
aircraft which is or which is required to be titled or registered by or in this
state shall be liable for a tax on the purchase at the rate of 4 percent of the
sales price. Every such purchaser shall make a return and remit the tax using
such forms as prescribed by the commissioner at the time of applying for a title
or transfer of title or registration. Failure to make such return and remit
such tax shall be cause to deny the issuance of a title or registration for such
tangible personal property.
(3)
In the event of a transfer of ownership of tangible personal property which is
otherwise subject to the tax under paragraph (2) of this subsection from an
immediate family member to another immediate family member such transfer shall
be exempt from such tax.
(4)
With respect to motor vehicles, the tax under this Code section shall be
collected pursuant to Code Section 40-2-23.
(5)
With respect to vessels, the tax under this Code section shall be collected by
the Department of Natural Resources prior to the issuance of the certificate of
number required under Code Section 52-7-5. Proceeds so collected shall be
remitted monthly to the Department of Revenue.
(6)
With respect to aircraft, the tax under this Code section shall be collected by
the department prior to the issuance of the certificate of registration
following a transfer of
ownership."
PART
III
SECTION 3-1.
SECTION 3-1.
The General Assembly
recognizes that the communications industry has become increasingly competitive
and that the distinctions among the providers of the various types of
communications services have become blurred. The General Assembly desires to
treat similar services consistently under the tax laws of this state.
Accordingly, the General Assembly finds that it is no longer appropriate for the
providers of certain types of communications services to be required to pay a
myriad of local taxes, licenses, and fees while other communications service
providers are not required to pay some or all of such taxes, licenses, and fees.
The General Assembly finds, however, that it is in the best interests of the
state and its political subdivisions that the tax revenues available to such
political subdivisions not be diminished by the elimination of certain local
taxes, licenses, and fees imposed on communications service providers; and that
a state level communications services tax imposed equitably on communications
services is expected at a minimum to provide to each such political subdivision
comparable tax revenues to the local taxes, licenses, and fees that should be
eliminated. The General Assembly further finds that, in order to promote
investment in Georgia's communications infrastructure and since the
communications services sold will be taxed, the equipment purchased to provide
such communications services should be exempt from state and local sales tax.
The General Assembly further finds that a state-wide communications services tax
in lieu of other taxes on communications would promote simplicity, uniformity,
and efficiency in the administration of and compliance with the taxes on
communications services which is in the best interests of the
state.
SECTION
3-2.
This part of this Act shall
be known and may be cited as the "Georgia Communications Services Tax
Act."
SECTION
3-3.
Title 48 of the Official Code
of Georgia Annotated, relating to revenue and taxation, is amended in Code
Section 48-8-2, relating to definitions regarding sales and use tax, by revising
paragraphs (31), (34), and (39) and by adding new paragraphs to read as
follows:
"(4.1)
'Call center' means one or more locations that utilize telecommunications
services in one or more of the following activities: customer services,
soliciting sales, reactivating dormant accounts, conducting surveys or research,
fundraising, collection of receivables, receiving reservations, receiving
orders, or taking
orders."
"(5.1)
'Communications services' means telecommunications services, ancillary services,
and video programming
services."
"(11.1)
'Direct broadcast satellite service' means the distribution or broadcasting of
video programming or services by satellite directly to a subscriber's or
customer's receiving
equipment."
"(18.1)
'Mobile telecommunications service' has the same meaning given to such term in
Section 124(7) of the Mobile Telecommunications Sourcing Act, P.L.106-252,
4 U.S.C. 124(7)."
"(31)
'Retail sale' or a 'sale at retail' means any sale, lease, or rental for any
purpose other than for resale, sublease, or subrent. Sales for resale must be
made in strict compliance with the commissioner's rules and regulations. Any
dealer making a sale for resale which is not in strict compliance with the
commissioner's rules and regulations shall
himself
be liable for and shall pay the tax. The terms 'retail sale' or 'sale at
retail' include but are not limited to the following:
(A)
Except as otherwise provided in this chapter, the sale of natural or artificial
gas, oil, electricity, solid fuel, transportation,
local
telephone service
prepaid
calling service and prepaid wireless calling
service, alcoholic beverages, and tobacco
products, when made to any purchaser for purposes other than
resale. Sales
of communications services other than prepaid calling service and prepaid
wireless calling service shall not be 'retail sales' or 'sales at retail' for
purposes of this chapter and shall not be subject to the tax imposed by this
chapter;
(B)
The sale or charges for any room, lodging, or accommodation furnished to
transients by any hotel, inn, tourist camp, tourist cabin, or any other place in
which rooms, lodgings, or accommodations are regularly furnished to transients
for a consideration. This tax shall not apply to rooms, lodgings, or
accommodations supplied for a period of 90 continuous days or more;
(C)
Sales of tickets, fees, or charges made for admission to, or voluntary
contributions made to places of, amusement, sports, or
entertainment,
including, but not limited to:
(i)
Billiard and pool rooms;
(ii)
Bowling alleys;
(iii)
Amusement devices;
(iv)
Musical devices;
(v)
Theaters;
(vi)
Opera houses;
(vii)
Moving picture shows;
(viii)
Vaudeville;
(ix)
Amusement parks;
(x)
Athletic contests including, but not limited to, wrestling matches, prize
fights, boxing and wrestling exhibitions, football games, and baseball
games;
(xi)
Skating rinks;
(xii)
Race tracks;
(xiii)
Public bathing places;
(xiv)
Public dance halls; and
(xv)
Any other place at which any exhibition, display, amusement, or entertainment is
offered to the public or any other place where an admission fee is
charged;
(D)
Charges made for participation in games and amusement activities;
(E)
Sales of tangible personal property to persons for resale when there is a
likelihood that the state will lose tax funds due to the difficulty of policing
the business operations because:
(i)
Of the operation of the business;
(ii)
Of the very nature of the business;
(iii)
Of the turnover of so-called independent contractors;
(iv)
Of the lack of a place of business in which to display a certificate of
registration;
(v)
Of the lack of a place of business in which to keep records;
(vi)
Of the lack of adequate records;
(vii)
The persons are minors or transients;
(viii)
The persons are engaged in essentially service businesses; or
(ix)
Of any other reasonable reason.
The
commissioner may promulgate rules and regulations requiring vendors of persons
described in this subparagraph to collect the tax imposed by this article on the
retail price of the tangible personal property. The commissioner shall refuse
to issue certificates of registration and may revoke certificates of
registration issued in violation of his rules and regulations;
or
(F)
Charges,
which applied to sales of telephone service, made for local exchange telephone
service, except coin operated telephone service, except as otherwise provided in
subparagraph (G) of this paragraph; or
In the case of
a bundled transaction, including a transaction that includes any of the
following: telecommunication service, ancillary service, Internet access, or
audio or video programming service:
(G)(i)
If the price is attributable to products
or
services that are taxable and products
or
services that are nontaxable, the portion
of the price attributable to the nontaxable products
or
services may be subject to tax unless the
provider can identify by reasonable and verifiable standards such portion from
its books and records that are kept in the regular course of business for other
purposes, including, but not limited to, nontax purposes.
(ii)
If the price is attributable to products
or
services that are subject to tax at
different tax rates
or subject to
different taxes, the total price may be
treated as attributable to the products
or
services subject to tax at the
highest
tax
higher
rate or the
higher-rate tax unless the provider can
identify by reasonable and verifiable standards the portion of the price
attributable to the products subject to tax at the lower rate
or the
lower-rate tax from the provider's books
and records that are kept in the regular course of business for other purposes,
including, but not limited to, nontax purposes."
"(34)(A)
'Sales price' applies to the measure subject to
sales
tax and means the total amount of consideration, including cash, credit,
property, and services, for which personal property or services are sold,
leased, or rented, valued in money, whether received in money or otherwise
without any deduction for the following:
(i)
The seller's cost of the property sold;
(ii)
The cost of materials used, labor, or service cost, interest, losses, all costs
of transportation to the seller, all taxes imposed on the seller, and any other
expense of the seller;
(iii)
Charges by the seller for any services necessary to complete the sale, other
than delivery and installation charges;
(iv)
Delivery charges;
(v)
Installation charges; and
(vi)
Credit for any trade-in, except as otherwise provided in division (vii) of
subparagraph (B) of this paragraph.
(B)
'Sales price' shall not include:
(i)
Discounts, including cash, term, or coupons that are not reimbursed by a third
party that are allowed by a seller and taken by a purchaser on a
sale;
(ii)
Interest, financing, and carrying charges from credit extended on the sale of
personal property or services, if the amount is separately stated on the
invoice, bill of sale or similar document given to the purchaser;
(iii)
Any taxes legally imposed directly on the consumer that are separately stated on
the invoice, bill of sale, or similar document given to the
purchaser;
(iv)
Installation charges if they are separately stated on the invoice, billing, or
similar document given to the purchaser;
(v)
Charges by the seller for any services necessary to complete the sale if they
are separately stated on the invoice, billing, or similar document given to the
purchaser;
(vi)
Telecommunications nonrecurring charges if they are separately stated on the
invoice, billing, or similar document; and
(vii)
Credit for any motor vehicle trade-in.
(C)
'Sales price' shall include consideration received by the seller from third
parties if:
(i)
The seller actually receives consideration from a party other than the purchaser
and the consideration is directly related to a price reduction or discount on
the sale;
(ii)
The seller has an obligation to pass the price reduction or discount through to
the purchaser;
(iii)
The amount of the consideration attributable to the sale is fixed and
determinable by the seller at the time of the sale of the item to the purchaser;
and
(iv)
One of the following criteria is met:
(I)
The purchaser presents a coupon, certificate, or other documentation to the
seller to claim a price reduction or discount where the coupon, certificate, or
documentation is authorized, distributed, or granted by a third party with the
understanding that the third party will reimburse any seller to whom the coupon,
certificate, or documentation is presented;
(II)
The purchaser identifies himself or herself to the seller as a member of a group
or organization entitled to a price reduction or discount; provided, however,
that a 'preferred customer' card that is available to any patron shall not
constitute membership in such a group; or
(III)
The price reduction or discount is identified as a third party price reduction
or discount on the invoice received by the purchaser or on a coupon,
certificate, or other documentation presented by the
purchaser."
"(39)
'Telecommunications service' means the electronic transmission, conveyance, or
routing of voice, data, audio, video, or any other information or signals to a
point, or between or among points. The term 'telecommunications service'
includes such transmission, conveyance, or routing in which computer processing
applications are used to act on the form,
code,
or protocol of the content for purposes of transmission,
conveyance,
or routing without regard to whether such service is referred to as voice over
Internet protocol services or is classified by the Federal Communications
Commission as enhanced or value added. 'Telecommunications service' shall not
include:
(A)
Data processing and information services that allow data to be generated,
acquired, stored, processed, or retrieved and delivered by an electronic
transmission to a purchaser where such purchaser's primary purpose for the
underlying transaction is the processed data or information;
(B)
Installation or maintenance of wiring or equipment on a customer's
premises;
(C)
Tangible personal property;
(D)
Advertising,
including,
but not limited
to,
directory advertising;
(E)
Billing and collection services provided to third parties;
(F)
Internet access service;
(G)
Radio and
television audio and video
Video
programming
services,
regardless of the medium, including the furnishing of transmission, conveyance
and routing of such services by the programming service provider. Radio and
television audio and video programming services shall include but not be limited
to cable service as defined in 47 USC 522(6) and audio and video programming
services delivered by commercial mobile radio service providers, as defined in
47 CFR 20.3
service;
(H)
Ancillary services; or
(I)
Digital products delivered electronically,
including,
but not limited
to,
software, music, video, reading materials, or ring tones."
"(42.1)
'Video programming service' means the sale, offering, transmission, conveyance,
or routing of audio or video programming services for purchase by subscribers or
customers, regardless of the medium, technology, or method of display, including
the furnishing of transmission, conveyance, and routing of such programming by
the programming service provider. Such term shall include, but not be limited
to:
(A)
Cable service, as defined in Section 602(6) of the Communications Act of 1934(47
U.S.C. 522(6));
(B)
Interactive on-demand service, as defined in Section 602(12) of such Act
(47 U.S.C. 522(12));
(C)
The provision of video programming by a multichannel video programming
distributor, as defined in paragraphs (20) and (13) of Section 602 of such Act
(47 U.S.C. 522); and
(D)
The distribution of audio or video programming by providers of 'mobile service,'
as defined in Section 20.3 of Title 47 of the Code of Federal Regulations, when
such services are offered for purchase by subscribers or customers of such
service."
SECTION
3-4.
Said Title 48 is further
amended in Code Section 48-8-3, relating to exemptions from sales and use taxes,
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 of any products or services purchased by a communications services
provider for further commercial broadcast, rebroadcast, transmission, or
retransmission, in whole or in part, to another person as such product or as a
communications service."
SECTION
3-5.
Said Title 48 is further
amended in Code Section 48-8-32, relating to collectability and rates of sales
and use tax, as follows:
"48-8-32.
The
tax at the rate of 4 percent of the retail sales price at the time of sale or 4
percent of the purchase price at the time of purchase, as the case may be, shall
be collectable from all persons engaged as dealers in the sale at retail, or in
the use, consumption, distribution, or storage for use or consumption in this
state of tangible personal
property,
prepaid calling service, and prepaid wireless calling
service."
SECTION
3-6.
Said Title 48 is further
amended in Code Section 48-8-39, relating to the effect of certain use of sales
tax certificates, by revising subsection (a) as follows:
"(a)
If a purchaser who gives a certificate stating that property is purchased for
resale makes any use of the property other than retention, demonstration, or
display while holding it for sale in the regular course of business, the use
shall be deemed a retail sale by the purchaser as of the time the property is
first used by
him
the
purchaser, and the purchase price of the
property to
him
the
purchaser shall be deemed the gross
receipts from the retail sale. If the sole use of the property other than
retention, demonstration, or display in the regular course of business is the
rental of the property while holding it for sale or the transportation of
persons for hire while holding the property for sale, the purchaser may elect to
include in
his
the
purchaser's gross receipts either the
amount of the rental charged or the total amount of the charges made by
him
the
purchaser for the transportation rather
than the cost of the property to
him
the purchaser.
If the sole use of the property by a purchaser, other than retention,
demonstration, or display in the regular course of business, is the transfer of
such property, either free of charge or at a sale price not exceeding the
purchase price of the property, to another person in conjunction with such other
person entering into a contract to purchase communications services subject to
the tax imposed under Chapter 18 of this title, then such use shall be treated
as a retail sale to such other person for no consideration, in the case of a
transfer that is free of charge, or for the sale price collected with respect to
such transfer."
SECTION
3-7.
Said Title 48 is further
amended in Code Section 48-8-42, relating to credit for taxes paid in other
states, by adding a new subsection to read as follows:
"(c)
Any communications services provider that erroneously but in good faith pays the
tax imposed by Chapter 18 of this title on an item of tangible personal property
or a service subject to the tax imposed by this chapter shall be allowed a
credit against the tax imposed by this chapter to the extent of the amount of
such tax paid."
SECTION
3-8.
Said Title 48 is further
amended by repealing subsection (e) of Code Section 48-8-77, relating to
sourcing of local telecommunications services.
SECTION
3-9.
Said Title 48 is further
amended by adding a new Code Section to read as follows:
"48-8-78.
(a)
As used in this chapter and Chapter 18 of this title, the term:
(1)
'Air-to-ground radiotelephone service' means a radio service, as that term is
defined in 47 C.F.R. 22.99, in which common carriers are authorized to offer and
provide radio telecommunications services for hire to subscribers in an
aircraft.
(2)
'Call-by-call basis' means any method of charging for telecommunications
services where the price is measured by individual calls.
(3)
'Communications channel' means a physical or virtual path of communications over
which signals are transmitted between or among customer channel termination
points.
(4)
'Customer' means the person or entity that contracts with the seller of
telecommunications services. If the end user of the telecommunications service
is not the contracting party, the end user of the telecommunications service is
the customer of the telecommunications service but only for the purpose of
sourcing sales of telecommunications services. Customer does not include a
reseller of telecommunications service or for mobile telecommunications service
of a serving carrier under an agreement to serve the customer outside the home
service provider's licensed service area.
(5)
'Customer channel termination point' means, in the context of a private
communications service, the location where the customer either inputs or
receives communications.
(6)
'End user' means the person who utilizes the telecommunications service. In the
case of an entity, end user means the individual who utilizes the service on
behalf of the entity.
(7)
'Home service provider' has the same meaning given to such term in Section
124(5) of the Mobile Telecommunications Sourcing Act, P.L. 106-252, 4 U.S.C.
124(5).
(8)
'Postpaid calling service' means a telecommunications service obtained by making
a payment on a call-by-call basis either through the use of a credit card or
payment mechanism such as a bank card, travel card, credit card, or debit card,
or by charge made to a telephone number which is not associated with the
origination or termination of the telecommunications service. A postpaid
calling service includes a telecommunications service, except a prepaid wireless
calling service, that would be a prepaid calling service, except that the right
provided is not exclusively to access telecommunications services.
(9)
'Private communication service' means a telecommunications service that entitles
the customer to exclusive or priority use of a communications channel or group
of channels between or among termination points, regardless of the manner in
which such channel or channels are connected, and includes switching capacity,
extension lines, stations, and any other associated services that are provided
in connection with the use of such channel or channels.
(10)
'Service address' means:
(A)
The location of the telecommunications equipment to which a customer's call is
charged and from which the call originates or terminates, regardless of where
the call is billed or paid;
(B)
If the location under subparagraph (A) of this paragraph is not known, 'service
address' means the origination point of the signal of the telecommunications
service first identified by either the seller's telecommunications system or, in
information received by the seller from its service provider, where the system
used to transport such signal is not that of the seller; or
(C)
If the locations under both subparagraphs (A) and (B) of this paragraph are not
known, 'service address' means the location of the customer's place of primary
use.
(b)
The provisions of this Code section are solely for the purposes of sourcing
communications services, the taxability of which is governed by this chapter
with respect to prepaid calling services and prepaid wireless calling service
and Chapter 18 of this title with respect to all other communications
services.
(c)
The following sourcing rules shall apply to telecommunications
services:
(1)
Except as otherwise provided in paragraph (4) of this subsection,
telecommunications services sold on a call-by-call basis shall be sourced to
this state if either of the following occurs:
(A)
The call both originates and terminates in this state; or
(B)
The call either originates in this state or terminates in this state, and the
service address associated with the call is located in this state;
(2)
Except as otherwise provided in paragraph (4) of this subsection,
telecommunications services sold on a basis other than a call-by-call basis
shall be sourced to this state if the telecommunications service is charged to a
customer whose place of primary use is in this state;
(3)
Except as otherwise provided in paragraph (4) of this subsection, mobile
telecommunications services provided by a customer's home service provider shall
be sourced to this state if the customer's place of primary use is in this
state; and
(4)
Notwithstanding the provisions of paragraphs (1), (2), and (3) of this
subsection, the following rules shall apply:
(A)
Air-to-ground radio telephone services shall be sourced to this state if the
customer's place of primary use is located in this state;
(B)
Postpaid calling services shall be sourced to this state if the origination
point of the telecommunications signal is located in this state, as first
identified by either of the following:
(i)
The seller's telecommunications system; or
(ii)
Information received by the seller from its service provider, where the system
used to transport such signals is not that of the seller;
(C)
Private communications services shall be sourced to this state under the
following rules:
(i)
Service for a separate charge related to a customer channel termination point
shall be sourced to this state if the customer channel termination point is
located in this state;
(ii)
Service for a separate charge for the use of a channel that is exclusively
between two channel termination points located in this state shall be sourced to
this state; and
(iii)
Where channel termination points of a channel are located both within and
outside this state:
(I)
Fifty percent of any separate charge for a segment of a channel between two such
channel termination points; and
(II)
To the extent that the charge for any segment or segments of a channel is not
separately billed, an amount equal to the total charge for such channel segment
or segments multiplied by a fraction, the numerator of which is the number of
channel termination points located in this state and the denominator of which is
the total number of channel termination points; and
(D)
A sale of prepaid calling service or a sale of a prepaid wireless calling
service shall be sourced in accordance with subsection (b) of Code Section
48-8-77; provided, however, that in the case of a sale of prepaid wireless
calling service, the rule provided in subparagraph (b)(1)(E) of Code Section
48-8-77 shall include as an option the location associated with the mobile
telephone number.
(d)
All communications services other than telecommunications services shall be
sourced to the customer's place of primary use if located in this
state."
SECTION
3-10.
Said Title 48 is further
amended by adding a new chapter to read as follows:
"CHAPTER
18
48-18-1.
(a)
Except as otherwise provided in this Code section, there is imposed on the sales
price, as defined in paragraph (34) of Code Section 48-8-2, paid for the retail
purchase of communications services, as defined in paragraph (5.1) of Code
Section 48-8-2, that are sourced to this state under Code Section 48-8-78 the
following:
(1)
A state tax on direct broadcast satellite service at the rate of 7
percent;
(2)
A state tax on communications services other than direct broadcast satellite
service at a rate of 3.5 percent; and
(3)
A local tax on communications services other than direct broadcast satellite
service at the rate of 3.5 percent.
(b)
It is the intent of the legislature that a total combined state and local tax
rate of 7 percent shall be imposed on all communications services throughout the
state.
(c)
The tax imposed by this chapter shall be paid by the person paying for such
communications services and shall be collected from such person by the retailer
and remitted to the department pursuant to Code Section 48-18-5.
(d)
No sale of communications services shall be taxable to the person furnishing the
communications services which is not taxable to the purchaser of the
communications services.
(e)
The sales price paid for the retail purchase of communications services shall
not include amounts paid for or attributable to:
(1)
Communications services which are resold, used as a component part of, or
integrated into a communications service provided to the ultimate retail
purchaser who originates or terminates the taxable end-to-end communication,
including, but not limited to, carrier access charges, right of access charges,
interconnection charges paid by the providers of mobile telecommunications
services or other communications services, charges paid by cable or video
service providers for the transmission of video or other programming by another
communications service provider over facilities owned or operated by such other
communications service provider, charges for the sale of unbundled network
elements, and charges for use of intercompany facilities;
(2)
Coin operated telephone service;
(3)
Communications services provided to any person or entity exempt from the tax
imposed by Chapter 8 of this title;
(4)
Discounts, bad debts, taxes, or any other deduction to the extent allowed as a
deduction under Chapter 8 of this title;
(5)
Prepaid calling service, prepaid wireless calling service, tangible personal
property, or services subject to tax pursuant to Chapter 8 of this title;
or
(6)
Communications services or transactions among entities under 50 percent or
greater, direct or indirect, common control.
(f)
A retailer of communications services may combine the taxes due under this
chapter and Chapter 8 of this title as a single line item on the retailer's
invoice to a purchaser of communications services.
48-18-2.
(a)
Notwithstanding any provision of law to the contrary, with respect to sales of
telecommunications services to any person for use in the operation of one or
more call centers, the state tax imposed by this chapter shall not exceed
$12,500.00 per calendar year and the local tax imposed by this chapter shall not
exceed $12,500.00 per calendar year.
(b)
The limitation set forth in subsection (a) of this Code section shall apply only
to holders of a direct payment number issued by the department. In order to
obtain such direct payment number, the applicant shall establish that the
applicant satisfies the criteria for a call center as defined in paragraph (4.1)
of Code Section 48-8-2.
(c)
The department shall not issue any refunds of taxes paid prior to receiving a
direct payment number.
(d)
All entities wholly owned by the same person or entity shall be considered a
single person.
48-18-3.
(a)
To prevent multistate taxation of a communications service subject to taxation
under this chapter, any taxpayer, upon proof that such taxpayer has paid a tax
in another state on such service, shall be allowed a credit against the tax
imposed by this chapter to the extent of the amount of such tax paid in such
other state.
(b)
Any communications services provider that erroneously but in good faith pays the
tax imposed by Chapter 8 of this title on the provision of communications
services shall be allowed credit against the tax imposed by this chapter to the
extent of the amount of such tax paid.
48-18-4.
All
procedural and administrative provisions of Chapters 2 and 8 of this title,
including those which set forth the limitations periods and procedures for
assessment, collection, refunds, and credits, and those which fix penalties and
interest for nonpayment of tax and for noncompliance with the provisions of this
title, and all other requirements and duties imposed upon the taxpayer, shall
apply to all taxpayers liable for the communications services tax imposed under
the provisions of this chapter and to all providers of communications services
required to collect and remit such taxes. In addition, all definitions,
sourcing rules, customer remedy rules, and bundled transaction rules, which have
been enacted in compliance with the Streamlined Sales Tax Agreement and codified
in Chapter 8 of this title, shall apply to the communications services tax
imposed under the provisions of this chapter. The commissioner shall exercise
all power and authority and perform all duties with respect to persons obligated
under this chapter as are provided in Chapters 2 and 8, except where there is a
conflict, in which case, the provisions of this chapter shall control. The
commissioner may from time to time make such rules and regulations not
inconsistent with this chapter as may be deemed necessary to carry out its
provisions.
48-18-5.
(a)
A communications services provider shall be permitted to deduct and retain 2
percent of total communications services taxes that are collected and remitted
by the provider on a timely basis to the department.
(b)
The tax imposed by Code Section 48-18-1, including any penalties or interest
attributable to the nonpayment of such taxes or for noncompliance with the
provisions of this chapter, shall be collected by the department and shall be
accounted for separately from all other taxes. One percent of the amounts
collected shall be paid into the general fund of the state treasury in order to
defray the costs of administration.
(c)(1)
The remaining amounts collected pursuant to paragraphs (1) and (2) of subsection
(a) of Code Section 48-18-1 shall be credited in the same manner as the state
sales and use taxes collected pursuant to Article 1 of Chapter 8 of this
title.
(2)
The remaining amounts collected pursuant to paragraph (3) of subsection (a) of
Code Section 48-18-1 shall be distributed as follows:
(A)
Each municipality or county that has complied with the requirements of
subsection (e) of this Code section shall receive an amount equal to the
average monthly revenues that were received from communications services
providers during 2010 by such municipality or county pursuant to taxes, charges,
and fees, other than local option sales taxes prohibited by Code Section
48-18-6, which were validly imposed and in effect during that time. All or part
of the proceeds received by a county pursuant to this subparagraph may be
expended for services provided within the unincorporated area of the county
including within any special district created by a county for the provision of
services in all or parts of the unincorporated area of the county;
(B)
The amount remaining after the distributions required by subparagraph (A) of
this paragraph shall be distributed as follows:
(i)
Each municipality that has complied with the requirements of subsection (e) of
this Code section shall receive an amount equal to such remaining amount
multiplied by a fraction, the numerator of which is the population in such
municipality and the denominator of which is the total population of this state,
using the most recent annual estimates of the population of cities and counties
in Georgia as prepared by the United States Bureau of the Census;
and
(ii)
Each county that has complied with the requirements of subsection (e) of this
Code section shall receive an amount equal to such remaining amount multiplied
by a fraction, the numerator of which is the sum of the population within the
unincorporated areas of such county and the denominator of which is the total
population of this state, using the most recent annual estimates of the
population of cities and counties in Georgia as prepared by the United States
Bureau of the Census.
(d)(1)
Each county and municipality that received in 2010 taxes, charges, or fees,
other than local option sales taxes prohibited by Code Section 48-18-6, which
were validly imposed and in effect during that time shall report the amounts of
such taxes, charges, or fees received in 2010 to the department by January 31,
2012.
(2)
Each communications services provider that paid in 2010 such taxes, charges, or
fees, other than local option sales taxes prohibited by Code Section 48-8-6
shall report the amounts of such taxes, charges, or fees paid in 2010 to the
department by January 31, 2012.
(3)
The department shall be charged with reviewing such data from all political
subdivisions and communications services providers to ensure accuracy and to
reconcile the data based on the best information available.
(e)
Each county and municipality shall impose by ordinance or resolution a local tax
on communications services other than direct broadcast satellite service
pursuant to paragraph (3) of subsection (a) of Code Section 48-18-1 under the
following conditions:
(1)
On or before December 31 of the year prior to enactment, the county or
municipality shall file with the department a certified copy of the pertinent
parts of all ordinances, resolutions, and amendments thereto which levy the 3.5
percent tax on communications services other than direct broadcast satellite
services;
(2)
Such ordinance shall have an effective date of January 1 of the following
year;
(3)
The filing required by this subsection shall be a condition to the imposition of
the local tax pursuant to paragraph (3) of subsection (a) of Code Section
48-18-1 by a county or a municipality; and
(4)
If a county or municipality does not file with the department a certified copy
of the pertinent parts of all ordinances, resolutions, or amendments thereto
which levy the 3.5 percent tax on communications services other than direct
broadcast satellite services as required in paragraph (1) of this subsection, or
if a county or municipality does not provide the department with the amount of
taxes, charges, or fees received in 2010, as required in paragraph (1) of
subsection (d) of this Code section, the department shall upon receipt of such
information distribute such funds on the first day of the next succeeding
calendar quarter.
(f)
Other than for purposes of collecting and remitting certain enhanced 9-1-1
charges, providers of communications services shall not be required to identify,
report, or source communications services or communications services tax on the
county or municipal level.
48-18-6.
(a)(1)
For purposes of this subsection, the term 'providers of communications services'
shall include parties providing infrastructure directly involved in the
transmission, receipt, or processing of radio waves or electrical signals used
in the provision or provisioning of communications services. Infrastructure
shall include, but not be limited to, towers, poles, and other structures of
whatever kind to which are attached antennas or other equipment for the
transmission or receipt of radio waves or electrical signals, as well as
fixtures necessary to affix antennas or other equipment to such towers, poles,
or structures. Infrastructure shall not include residences or commercial or
industrial buildings. Parties providing infrastructure are considered
providers of communications services only to the extent of their provision or
provisioning of such infrastructure.
(2)
Except as provided in paragraph (4) of this subsection, no county, municipality,
or other political subdivision of this state shall:
(A)
Levy any tax, charge, fee, or other imposition on or with respect to
communications services, or collect any such tax, charge, fee, or other
imposition, from providers of communications services;
(B)
Require any provider of communications services, including, but not limited to,
cable service providers or video service providers, to enter into or extend the
term of a franchise or other agreement which requires the payment of a tax,
charge, fee, or other imposition; or
(C)
Adopt or enforce any provision of any ordinance or agreement to the extent that
such provision obligates a provider of communications services to pay to the
county and municipality a tax, charge, fee, or other imposition.
(3)
For purposes of this subsection, a tax, charge, fee or other imposition includes
any amount or in-kind payment of property or services which is required by
ordinance or agreement to be paid or furnished to a political subdivision by or
through a provider of communications services in its capacity as a provider of
communications services, regardless of whether such tax, charge, fee, or in-kind
payment of property or services is:
(A)
Designated as a franchise fee, excise tax, sales tax, services tax, user fee,
occupancy fee, occupational or business license tax or fee, subscriber charge,
tower fee, base station fee, or otherwise;
(B)
Measured by the amounts charged or received for services, the type of equipment
or facilities deployed, or otherwise;
(C)
Intended as compensation for the use of public rights of way, the right to
conduct business, or otherwise; or
(D)
Permitted or required to be separately stated on the customer's
bill.
(4)
This subsection shall not apply to:
(A)
Ad valorem taxes levied pursuant to Chapter 5 of this title;
(B)
Emergency telephone surcharges pursuant to Chapter 5 of Title 46;
(C)
Amounts charged for the rental or other use of property owned by a public body
which is not in the public rights of way to a provider of communications
services for any purpose, including, but not limited to, the placement or
attachment of equipment used in the provision of communications
services;
(D)
Amounts charged for the rental of space on a utility pole or tower owned by a
political subdivision of this state, whether in the public right of way or not,
for the attachment of equipment used in the provision of communications
services;
(E)
Permit fees generally imposed and applicable to a majority of all other
businesses, which are not related to placing or maintaining facilities in or on
public roads or rights of way;
(F)
Taxes, charges, and fees which are ordinary and generally applicable which are
validly levied and required to be paid by a person in a capacity other than its
capacity as a provider of communications services. Such taxes, charges, and
fees include, by way of example, and are not limited to, taxes, charges, and
fees for water, sewer, electricity, sanitation, police, fire, or other such
services, or any special district, community improvement district, or similar
such district services, or any taxes, fees, or assessments imposed to pay bonded
indebtedness;
(G)
Taxes imposed pursuant to paragraph (3) of subsection (a) of Code Section
48-18-1;
(H)
Zoning, construction, and similar application fees, provided such fees do not
exceed the lower of either the actual direct cost incurred by the county or
municipality in the review of such applications or the amount generally imposed
by the county or municipality for zoning, construction, and similar
applications;
(I)(i)
Sales and use taxes on the sale to or use by a provider of equipment used in the
business of providing communications services in this state.
(ii)
For purposes of this subparagraph, the term 'equipment used in the business of
providing communications services' means all equipment, machinery, software, or
other infrastructure that is used in whole or in part in producing,
broadcasting, or distributing programs; sending, receiving, storing,
transmitting, retransmitting, amplifying, switching, or routing voice, data, or
video communications; or which is used in monitoring, testing, maintaining,
enabling, or facilitating such equipment, machinery, software, or other
infrastructure. Such term includes, but is not limited to, wires, cables,
antennas, poles, switches, routers, amplifiers, rectifiers, repeaters,
receivers, multiplexers, duplexers, transmitters, power equipment, backup power
equipment, diagnostic equipment, storage devices, modems, and other general
central office equipment, such as channel cards, frames, and cabinets;
and
(J)
Any civil penalties or fines, any criminal penalties or fines, or
both.
(5)
This subsection shall not preempt the provisions of Code Section 25-9-6 or
25-9-13 and shall not be construed to prohibit a municipality or county from
seeking to recover the actual direct cost of repairing damage to public streets
caused by a communications service provider's installation or repair of its
facilities.
(b)
In establishing guidelines and conditions for placing, constructing, repairing,
or maintaining communications lines or facilities over, on, under, through, or
along any public highways, public roads, public streets, or other public places
or rights of way, neither the state nor any agency or political subdivision
thereof shall discriminate between or among communications services providers in
violation of Section 253(c) of the Communications Act of 1934, 47 U.S.C. Section
253(c)."
SECTION
3-11.
Title 36 of the Official Code
of Georgia Annotated, relating to local government, is amended in Code Section
36-76-2, relating to definitions regarding expedited franchising of cable and
video services, by revising paragraphs (1) and (8) as follows:
"(1)
'Advertising
and home shopping services revenues' means the amount of a cable service
provider or video service provider's nonsubscriber revenues from advertising
disseminated through cable service or video service and home shopping services.
The amount of such revenues that are allocable to a municipality or county shall
be equal to the total amount of the cable service provider or video service
provider's revenue received from such advertising and home shopping services
multiplied by the ratio of the number of such provider's subscribers located in
such municipality or in the unincorporated area of such county to the total
number of such provider's subscribers. Such ratio shall be based on the number
of such provider's subscribers as of January 1 of the current year, except that
in the first year in which services are provided, such ratio shall be computed
as of the earliest practical date
Reserved."
"(8)
'Gross
revenues' means all revenues received from subscribers for the provision of
cable service or video service, including franchise fees for cable service
providers and video service providers, and advertising and home shopping
services revenues and shall be determined in accordance with generally accepted
accounting principles. Gross revenues shall not include:
(A)
Amounts billed and collected as a line item on the subscriber's bill to recover
any taxes, surcharges, or governmental fees that are imposed on or with respect
to the services provided or measured by the charges, receipts, or payments
therefor; provided, however, that for purposes of this Code section, such tax,
surcharge, or governmental fee shall not include any ad valorem taxes, net
income taxes, or generally applicable business or occupation taxes not measured
exclusively as a percentage of the charges, receipts, or payments for
services;
(B)
Any revenue, such as bad debt, not actually received, even if
billed;
(C)
Any revenue received by any affiliate or any other person in exchange for
supplying goods or services used by the provider to provide cable service or
video programming;
(D)
Any amounts attributable to refunds, rebates, or discounts;
(E)
Any revenue from services provided over the network that are associated with or
classified as noncable or nonvideo services under federal law, including,
without limitation, revenues received from telecommunications services,
information services other than cable service or video service, Internet access
services, or directory or Internet advertising revenue, including, without
limitation, yellow pages, white pages, banner advertisements, and electronic
publishing advertising. Where the sale of any such noncable or nonvideo service
is bundled with the sale of one or more cable services or video services and
sold for a single nonitemized price, the term 'gross revenues' shall include
only those revenues that are attributable to cable service or video service
based on the provider's books and records; such revenues shall be allocated in a
manner consistent with generally accepted accounting principles;
(F)
Any revenue from late fees not initially booked as revenues, returned check
fees, or interest;
(G)
Any revenue from sales or rental of property, except such property as the
subscriber shall be required to buy or rent exclusively from the cable service
provider or video service provider to receive cable service or video
service;
(H)
Any revenue received from providing or maintaining inside wiring;
(I)
Any revenue from sales for resale with respect to which the purchaser shall be
required to pay a franchise fee, provided the purchaser certifies in writing
that it shall resell the service and pay a franchise fee with respect thereto;
or
(J)
Any amounts attributable to a reimbursement of costs including, but not limited
to, the reimbursements by programmers of marketing costs incurred for the
promotion or introduction of video
programming
Reserved."
SECTION
3-12.
Said Title 36 is further
amended by revising subsection (c) and paragraphs (4) and (8) of subsection (g)
of Code Section 36-76-4, relating to PEG support, as follows:
"(c)
The application for a state franchise shall consist of an affidavit signed by an
officer or general partner of the applicant that contains each of the
following:
(1)
An affirmative declaration that the applicant shall comply with all applicable
federal and state laws and regulations, including municipal and county
ordinances and regulations regarding the placement and maintenance of facilities
in the public right of way that are generally applicable to all users of the
public right of way and specifically including Chapter 9 of Title 25, the
'Georgia Utility Facility Protection Act';
(2)
A description of the applicant's service area, which description shall be
sufficiently detailed so as to allow a local government to respond to subscriber
inquiries, including the name of each municipal or county governing authority
within the service area. For the purposes of this paragraph, an applicant may,
in lieu of or as
a
supplement to a written description, provide a map on 8 1/2 by 11 inch paper
that is clear and legible and that fairly depicts the service area by making
reference to the municipal or county governing authority to be served. If the
geographical area is less than an entire municipality or county, the map shall
describe the boundaries of the geographic area to be served in clear and concise
terms;
(3)
The location of the applicant's principal place of business, the name or names
of the principal executive officer or officers of the applicant, information
concerning payment locations or addresses, and general information concerning
equipment returns; and
(4)
Certification that the applicant is authorized to conduct business in the State
of Georgia and that the applicant possesses satisfactory financial and technical
capability to provide cable service or video service and a description of such
capabilities. Such certification shall not be required from an incumbent
service provider or any cable service provider or video service provider that
has wireline facilities located in the public right of way as of January 1,
2008;
and
(5)
Notice to the affected local governing authority of its right to designate a
franchise fee pursuant to Code Section
36-76-6."
"(4)
An
incumbent service provider that elects to terminate a franchise under this
subsection shall continue to provide PEG access support, as such existed on
January 1, 2007, under the same terms as the terminated local franchise had it
not been terminated until the local franchise would have expired under its own
terms
Reserved."
"(8)
Each holder of a state franchise shall have the obligation to provide access to
the same number of PEG channels pursuant to Code Section 36-76-8
and the
additional PEG support cash payments specified in this paragraph for PEG access
facilities in a service area as the
incumbent service provider with the most subscribers in such service area as of
January 1, 2007, which obligation shall continue until the local franchise
would have expired under its own terms
as
specified in paragraph (4) of this
subsection; provided, however, that if a
local franchise would have expired before July 1, 2012, the holder of a state
franchise shall continue to provide access to the same number of PEG channels
until July 1, 2012, as provided in paragraph (5) of this subsection.
To the
extent such incumbent service provider provides PEG access support during said
period in the form of periodic payments to the municipal or county governing
authority equal to a percentage of gross revenue or a prescribed per subscriber
amount, the state franchise holder shall be obligated to make the same periodic
payments to the governing authority at the same time and equal to the same
percentage of gross revenue or prescribed per subscriber amount. To the extent
such incumbent service provider provides PEG access support to the applicable
governing authority during said period in the form of a lump sum payment that
remains unsatisfied as of January 1, 2008, the holder of a state franchise shall
be obligated to provide a lump sum payment to said authority based on its
proportion of the total number of cable service and video service subscribers of
all service providers in such service area. No payments shall be due under this
paragraph until the municipality or county notifies the respective providers, in
writing, of the percentage of gross revenues, the per subscriber amount, or the
lump sum payment amount and the expiration date of the local franchise obtaining
such obligations. The holder of a state franchise may designate that portion of
the subscriber's bill attributable to any fee imposed pursuant to this paragraph
as a separate item on the bill and recover such amount from the
subscriber."
SECTION
3-13.
Said Title 36 is further
amended by revising Code Section 36-76-6, relating to franchise fees, as
follows:
"36-76-6.
(a)(1)
The holder of a state franchise, whether a cable service provider or a video
service provider, shall pay to each affected local governing authority which
complies with this Code section a franchise fee which shall not exceed the
maximum percentage rate permitted in 47 U.S.C. Section 542(b) of such holder's
gross revenues received from the provision of cable service or video service to
subscribers located within such holder's service area.
(2)
Each affected local governing authority or its authorized designee shall provide
written notice to the Secretary of State and each applicant for or holder of a
state franchise with a service area located within that affected local governing
authority's jurisdiction of the franchise fee rate that applies to the applicant
for or holder of such state franchise. The applicant for or holder of a state
franchise shall start assessing the franchise fee within 15 days of receipt of
written notice from the affected local governing authority or its authorized
designee and shall not be required to pay such franchise fee until the
expiration of 15 days after receipt of such written notice. Any incumbent
service provider who obtains a state franchise under paragraph (1) of subsection
(g) of Code Section 36-76-4 shall pay its existing franchise fee during the 15
day period after receipt of written notice of the new fee. The franchise fee
rate shall be uniformly applicable to all cable service providers and video
service providers that obtain a state franchise within the affected local
governing authority. For purposes of this Code section, an authorized designee
is an agent authorized by charter or other act of the affected local governing
authority.
(3)
Any affected local governing authority may change the franchise fee applicable
to holders of a state franchise once every two years. The affected local
governing authority or its authorized designee shall provide written notice to
the Secretary of State and the applicants for or holders of a state franchise
with a service area within that affected local governing authority's
jurisdiction of the new franchise fee rate. The holder of a state franchise
shall start assessing the new franchise fee within 45 days of receipt of written
notice of the change from the affected local governing authority or its
authorized designee. The franchise fee rate shall be uniformly applicable to
all cable service providers and video service providers that obtain a state
franchise within the affected local governing authority's
jurisdiction.
(b)
Such franchise fee shall be paid directly to each affected local governing
authority within 30 days after the last day of each calendar quarter. Such
payment shall be considered complete if accompanied by a statement showing, for
the quarter covered by the payment:
(1)
The aggregate amount of the state franchise holder's gross revenues,
specifically identifying subscriber and advertising and home shopping services
revenues under this chapter insofar as the franchise holder's existing billing
systems include such capability, attributable to such municipality or
unincorporated areas of the county; and
(2)
The amount of the franchise fee payment due to such municipality or
county.
In
the event that franchise fees are not paid on or before the dates specified
above, then the affected local governing authority shall provide written notice
to the franchise holder giving the cable service provider or video service
provider 15 days from the date of the franchise holder's receipt of such notice
to cure any such nonpayment. In the event franchise fees are not remitted to
the affected local government authority postmarked on or before the expiration
of the 15 day cure period, then the holder of the state franchise shall pay
interest thereon at a rate of 1 percent per month to the affected local
governing authority. If the 15 day cure period expires on Saturday, Sunday, or
a legal holiday, the due date shall be the next business day. Moreover, the
franchise holder shall not be assessed interest on late payments if franchise
payments were submitted in error to a neighboring local governing
authority.
(c)
Each affected local governing authority may, no more than once annually, audit
the business records of the state franchise holder to the extent necessary to
ensure payment in accordance with this Code section. For purposes of this
subsection, an audit shall be defined as a comprehensive review of the records
of the holder of a state franchise. Once any audited period of a state
franchise holder has been the subject of a requested audit, such audited period
of such state franchise holder shall not again be the subject of any audit. In
the event of a dispute concerning the amount of the franchise fee due to an
affected local governing authority under this Code section, an action may be
brought in a court of competent jurisdiction by an affected local governing
authority seeking to recover an additional amount alleged to be due or by a
state franchise holder seeking a refund of an alleged overpayment; provided,
however, that any such action shall be brought within three years following the
end of the quarter to which the disputed amount relates. Such time period may
be extended by written agreement between the state issued franchise holder and
such affected local governing authority. Each party shall bear the party's own
costs incurred in connection with any such examination or dispute. In the event
that an affected local governing authority files an action to recover alleged
underpayments of franchise fees and a court of competent jurisdiction determines
the cable service provider or video service provider has underpaid franchise
fees due for any 12 month period by 10 percent or more, the cable service
provider or video service provider may be required to pay the affected local
governing authority its reasonable costs associated with the audit along with
any franchise fee underpayments; provided, however, late payments shall not
apply.
(d)
The statements made pursuant to subsection (b) of this Code section and any
records or information furnished or disclosed by a cable service provider or
video service provider to an affected local governing authority pursuant to
subsection (c) of this Code section shall be exempt from public inspection under
Code Section 50-18-70.
(e)
No acceptance of any payment shall be construed as a release or as an accord and
satisfaction of any claim an affected local governing authority may have for
further or additional sums payable as a franchise fee.
(f)
Any amounts overpaid by the holder of a state franchise shall be deducted from
future franchise payments.
(g)
The holder of a state franchise may designate that portion of a subscriber's
bill attributable to any franchise fee imposed pursuant to this Code section as
a separate item on the bill and recover such amount from the subscriber;
provided, however, that such separate listing shall be referred to as a
'franchise' or a 'franchise fee.'
(h)
No affected local governing authority shall levy any additional tax, license,
fee, surcharge, or other assessment on a cable service provider or video service
provider for or with respect to the use of any public right of way other than
the franchise fee authorized by this Code section. Nor shall an affected local
governing authority levy any other tax, license, fee, or assessment on a cable
service provider or video service provider or its subscribers that is not
generally imposed and applicable to a majority of all other businesses. The
franchise fee authorized by this Code section shall be in lieu of any permit
fee, encroachment fee, degradation fee, or other fee that could otherwise be
assessed on a state issued franchise holder for the holder's occupation or work
within the public right of way; provided, however, that nothing in this Code
section shall restrict the right of any municipal or county governing authority
to impose ad valorem taxes, sales taxes, or other taxes lawfully imposed on a
majority of all other businesses within such municipality or
county
Reserved."
SECTION
3-14.
Said Title 36 is further
amended in Code Section 36-76-10, relating to limitations on requirements for
state franchise holders, by revising paragraph (4) as follows:
"(4)
The enactment and enforcement of lawful and reasonable laws and rules and
municipal or county ordinances and regulations concerning excavation,
permitting, bonding requirements, indemnification requirements, and placement
and maintenance of facilities in any public right of way that are generally
applicable to all users of any public right of
way, except
to the extent specifically precluded by subsection (h) of Code Section
36-76-6; and"
SECTION
3-15.
Title 46 of the Official Code
of Georgia Annotated, relating to public utilities, is amended by revising Code
Section 46-5-1, relating to due compensation provisions, as
follows:
"46-5-1.
(a)(1)
Any telegraph or telephone company chartered by the laws of this or any other
state shall have the right to construct, maintain, and operate its lines and
facilities upon, under, along, and over the public roads and highways and rights
of way of this state with the approval of the county or municipal authorities in
charge of such roads, highways, and rights of way. The approval of such
municipal authorities shall be limited to the process set forth in paragraph (3)
of subsection (b) of this Code section, and the approval of the county shall be
limited to the permitting process set forth in subsection (c) of this Code
section.
Upon making
due compensation, as defined for municipal authorities in paragraph (9) of
subsection (b) of this Code section and as provided for counties in subsection
(c) of this Code section, a
A
telegraph or telephone company shall have the right to construct, maintain, and
operate its lines through or over any lands of this state; on, along, and upon
the right of way and structures of any railroads; and, where necessary, under or
over any private lands; and, to that end, a telegraph or telephone company may
have and exercise the right of eminent domain.
(2)
Notwithstanding any other law, a municipal authority or county shall
not:
(A)
Require any telegraph or telephone company to apply for or enter into an
individual license, franchise, or other agreement with such municipal authority
or county; or
(B)
Impose any occupational license tax or fee as a condition of placing or
maintaining lines and facilities in its public roads and highways or rights of
way, except as specifically set forth in this Code section.
(3)
A county or municipal authority shall not impose any occupational license, tax,
fee, regulation, obligation, or requirement upon the provision of the services
described in paragraphs (1) and (2) of Code Section
46-5-221,
including any occupational license, tax, fee, regulation, obligation, or
requirement specifically set forth in any part of this chapter other than Part
4.
(4)
Whenever a telegraph or telephone company exercises its powers under paragraph
(1) of this subsection, the posts, arms, insulators, and other fixtures of its
lines shall be erected, placed, and maintained so as not to obstruct or
interfere with the ordinary use of such railroads or public roads and highways,
or with the convenience of any landowners, more than may be unavoidable. Any
lines constructed by a telegraph or telephone company on the right of way of any
railroad company shall be subject to relocation so as to conform to any uses and
needs of such railroad company for railroad purposes. Such fixtures, posts, and
wires shall be erected at such distances from the tracks of said railroads as
will prevent any and all damage to said railroad companies by the falling of
said fixtures, posts, or wires upon said railroad tracks; and such telegraph or
telephone companies shall be liable to said railroad companies for all damages
resulting from a failure to comply with this Code section.
(5)
No county or municipal authority shall impose upon a telegraph or telephone
company any build-out requirements on network construction or service
deployment, and, to the extent that a telegraph or telephone company has elected
alternative regulation pursuant to Code Section 46-5-165, such company may
satisfy its obligations pursuant to paragraph (2) of Code Section 46-5-169 by
providing communications service, at the company's option, through any
affiliated companies and through the use of any technology or service
arrangement; provided, however, that such company shall remain subject to its
obligations as set forth in paragraphs (4) and (5) of Code Section
46-5-169.
(b)(1)
Except as set forth in paragraph (6) of this subsection, any telegraph or
telephone company that places or seeks to place lines and facilities in the
public roads and highways or rights of way of a municipal authority shall
provide to such municipal authority the following information:
(A)
The name, address, and telephone number of a principal office and local agent of
such telegraph or telephone company;
(B)
Proof of certification from the Georgia Public Service Commission of such
telegraph or telephone company to provide telecommunications services in this
state;
(C)
Proof of insurance or self-insurance of such telegraph or telephone company
adequate to defend and cover claims of third parties and of municipal
authorities;
(D)
A description of the telegraph or telephone company's service area, which
description shall be sufficiently detailed so as to allow a municipal authority
to respond to subscriber inquiries. For the purposes of this paragraph, a
telegraph or telephone company may, in lieu of or as supplement to a written
description, provide a map on 8 1/2 by 11 inch paper that is clear and legible
and that fairly depicts the service area within the boundaries of the municipal
authority. If such service area is less than the boundaries of an entire
municipal authority, the map shall describe the boundaries of the geographic
area to be served in clear and concise terms;
(E)
A description of the services to be provided;
(F)
An affirmative declaration that the telegraph or telephone company shall comply
with all applicable federal, state, and local laws and regulations, including
municipal ordinances and regulations, regarding the placement and maintenance of
facilities in the public rights of way that are reasonable, nondiscriminatory,
and applicable to all users of the public rights of way, including the
requirements of Chapter 9 of Title 25, the 'Georgia Utility Facility Protection
Act'; and
(G)
A statement in bold type at the top of the application as follows: 'Pursuant to
paragraph (2) of subsection (b) of Code Section 46-5-1 of the Official Code of
Georgia Annotated, the municipal authority shall notify the applicant of any
deficiencies in this application within 15 business days of receipt of this
application.'
(2)
If an application is incomplete, the municipal authority shall notify the
telegraph or telephone company within 15 business days of the receipt of such
application; such notice shall specifically identify all application
deficiencies. If no such notification is given within 15 business days of the
receipt of an application, such application shall be deemed
complete.
(3)
Within 60 calendar days of the receipt of a completed application, the municipal
authority may adopt such application by adoption of a resolution or ordinance or
by notification to the telegraph or telephone company. The failure of a
municipal authority to adopt an application within 60 calendar days of the
receipt of a completed application shall constitute final adoption of such
application.
(4)
If it modifies its service area or provisioned services identified in the
original application, the telegraph or telephone company shall notify the
municipal authority of changes to the service area or the services provided.
Such notice shall be given at least 20 days prior to the effective date of such
change. Such notification shall contain a geographic description of the new
service area or areas and new services to be provided within the jurisdiction of
the affected municipal authority, if any. The municipal authority shall provide
to all telegraph and telephone companies located in its rights of way written
notice of annexations and changes in municipal corporate boundaries which, for
the purposes of this Code section, shall become effective 30 days following
receipt.
(5)
An application adopted pursuant to this Code section may be terminated by a
telegraph or telephone company by submitting a notice of termination to the
affected municipal authority. For purposes of this Code section, such notice
shall identify the telegraph or telephone company, the affected service area,
and the effective date of such termination, which shall not be less than 60
calendar days from the date of filing the notice of termination.
(6)
Any telegraph or telephone company that has previously obtained permits for the
placement of its facilities, has specified the name of such telegraph or
telephone company in such permit application, has previously placed its
facilities in any public right of way, and has paid and continues to pay any
applicable municipal authority's
occupational
license taxes, permit fees,
franchise
fees, except as set forth in paragraph (8)
of this subsection, or, if applicable, county permit fees shall be deemed to
have complied with this Code section without any further action on the part of
such telegraph or telephone company except as set forth in paragraphs
(8), (9),
(11), and
(17)
(10)
of this subsection.
(7)
Any telegraph or telephone company that has placed lines and facilities in the
public roads and highways or rights of way of a municipal authority without
first obtaining permits or otherwise notifying the appropriate municipal
authority of its presence in the public roads and highways or rights of way
shall provide the information required by paragraph (1) of this subsection, if
applicable, to such municipal authority on or before October 1, 2008. As of
October 1, 2008, if any telegraph or telephone company, other than those who
meet the requirements of paragraph (6) of this subsection, has failed or fails
to provide the information required by paragraph (1) of this subsection to the
municipal authority in which its lines or facilities are located, such municipal
authority shall provide written notice to such telegraph or telephone company
giving that company 15 calendar days from the date of receipt of such notice to
comply with subsection (b) of this Code section. In the event the 15 calendar
day cure period expires without compliance, such municipal authority may
petition the Georgia Public Service Commission which shall, after an opportunity
for a hearing, order the appropriate relief.
(8)(A)
In the event any telegraph or telephone company has an existing, valid municipal
franchise agreement as of January 1, 2008, the terms and conditions of such
existing franchise
agreement,
with the exception of any imposition of taxes, charges, or fees prohibited
pursuant to Code Section 48-18-6, shall
only remain effective and enforceable until the expiration of the existing
agreement or December 31, 2012, whichever shall first occur.
(B)
In the event any telegraph or telephone company is paying an existing
occupational license tax or fee, based on actual recurring local services
revenues, as of January 1, 2008, such payment shall be considered the payment of
due compensation without further action on the part of the municipal authority.
In the event that the rate of such existing tax or fee exceeds 3 percent of
actual recurring local service revenues, that rate shall remain effective until
December 31, 2012; thereafter, the payment by such telegraph or telephone
company at the rate of 3 percent shall be considered the payment of due
compensation without further action on the part of the municipal
authority.
(9)
As used in this Code section, 'due compensation' for a municipal authority means
an amount equal to no more than 3 percent of actual recurring local service
revenues received by such company from its retail, end user customers located
within the boundaries of such municipal authority. 'Actual recurring local
service revenues' means those revenues customarily included in the Uniform
System of Accounts as prescribed by the Federal Communications Commission for
Class 'A' and 'B' companies; provided, however, that only the local service
portion of the following accounts shall be included:
(A)
Basic local service revenue, as defined in 47 C.F.R. 32.5000;
(B)
Basic area revenue, as defined in 47 C.F.R. 32.5001;
(C)
Optional extended area revenue, as defined in 47 C.F.R. 32.5002;
(D)
Public telephone revenue, as defined in 47 C.F.R. 32.5010;
(E)
Local private line revenue, as defined in 47 C.F.R. 35.5040; provided, however,
that the portion of such accounts attributable to audio and video program
transmission service where both terminals of the private line are within the
corporate limits of the municipal authority shall not be included;
(F)
Other local exchange revenue, as defined in 47 C.F.R. 32.5060;
(G)
Local exchange service, as defined in 47 C.F.R. 32.5069;
(H)
Network access revenue, as defined in 47 C.F.R. 32.5080;
(I)
Directory revenue, as defined in 47 C.F.R. 32.5320; provided, however, that the
portion of such accounts attributable to revenue derived from listings in
portion of directories not considered white pages shall not be
included;
(J)
Nonregulated operating revenue, as defined in 47 C.F.R. 32.5280; provided,
however, that the portion of such accounts attributable to revenues derived from
private lines shall not be included; and
(K)
Uncollectible revenue, as defined in 47 C.F.R. 32.5300.
Any
charge imposed by a municipal authority shall be assessed in a nondiscriminatory
and competitively neutral manner.
(10)
Any due compensation paid to municipal authorities pursuant to paragraph (9) of
this subsection shall be in lieu of any other permit fee, encroachment fee,
degradation fee, disruption fee, business license tax, occupational license tax,
occupational license fee, or other fee otherwise permitted pursuant to the
provisions of subparagraph (A) of paragraph (7) of Code Section 36-34-2 or Code
Section 32-4-92 et seq. or any other provision of law regardless of
nomenclature.
(11)
A telegraph or telephone company with facilities in the public rights of way of
a municipal authority shall begin assessing due compensation, as defined in
subsection (a) of this Code section, on subscribers on the date that service
commences unless such company is currently paying a municipal authority's
occupational license tax. Such due compensation shall be paid directly to each
affected municipal authority within 30 calendar days after the last day of each
calendar quarter. In the event that due compensation is not paid on or before 30
calendar days after the last day of each calendar quarter, the affected
municipal authority shall provide written notice to such telegraph or telephone
company, giving such company 15 calendar days from the date such company
receives such notice to cure any such nonpayment. In the event the due
compensation remitted to the affected municipal authority is not postmarked on
or before the expiration of the 15 day cure period, such company shall pay
interest thereon at a rate of 1 percent per month to the affected municipal
authority. If the 15 day cure period expires on a Saturday, a Sunday, or a
state legal holiday, the due date shall be the next business day. A telegraph or
telephone company shall not be assessed any interest on late payments if due
compensation was submitted in error to a neighboring municipal
authority.
(12)
Each municipal authority may, no more than once annually, audit the business
records of a telegraph or telephone company to the extent necessary to ensure
payment in accordance with this Code section. As used in this Code section,
'audit' means a comprehensive review of the records of a company which is
reasonably related to the calculation and payment of due compensation. Once any
audited period of a company has been the subject of a requested audit, such
audited period of such company shall not again be the subject of any audit. In
the event of a dispute concerning the amount of due compensation due to an
affected municipal authority under this Code section, an action may be brought
in a court of competent jurisdiction by an affected municipal authority seeking
to recover an additional amount alleged to be due or by a company seeking a
refund of an alleged overpayment; provided, however, that any such action shall
be brought within three years following the end of the quarter to which the
disputed amount relates, although such time period may be extended by written
agreement between the company and such affected municipal authority. Each party
shall bear the party's own costs incurred in connection with any dispute. The
auditing municipal authority shall bear the cost of the audit; provided,
however, that if an affected municipal authority files an action to recover
alleged underpayments of due compensation and a court of competent jurisdiction
determines the company has underpaid due compensation due for any 12 month
period by 10 percent or more, such company shall be required to pay such
municipal authority's reasonable costs associated with such audit along with any
due compensation underpayments; provided, further, that late payments shall not
apply. All undisputed amounts due to a municipal authority resulting from an
audit shall be paid to the municipal authority within 45 days, or interest shall
accrue.
(13)(9)
The information provided pursuant to paragraph (1) of this subsection
and any
records or information furnished or disclosed by a telegraph or telephone
company to an affected municipal authority pursuant to paragraph (12) of this
subsection shall be exempt from public
inspection under Code Section 50-18-70. It shall be the duty of such telegraph
or telephone company to mark all such documents as exempt from Code Section
50-18-70, et seq., and the telegraph or telephone company shall defend,
indemnify, and hold harmless any municipal authority and any municipal officer
or employee in any request for, or in any action seeking, access to such
records.
(14)
No acceptance of any payment shall be construed as a release or as an accord and
satisfaction of any claim an affected municipal authority may have for further
or additional sums payable as due compensation.
(15)
Any amounts overpaid by a company as due compensation shall be deducted from
future due compensation owed.
(16)
A telegraph or telephone company paying due compensation pursuant to this Code
section may designate that portion of a subscriber's bill attributable to such
charge as a separate line item of the bill and recover such amount from the
subscriber.
(17)(10)
Nothing in this Code section shall affect the authority of a municipal authority
to require telegraph or telephone companies accessing the public roads and
highways and rights of way of a municipal authority to obtain permits and
otherwise comply with the reasonable regulations established pursuant to
paragraph (10) of subsection (a) of Code Section 32-4-92.
(18)
If a telegraph or telephone company does not have retail, end user customers
located within the boundaries of a municipal authority, then the payment by such
company at the same rates that such payments were being made as of January 1,
2008, to a municipal authority for the use of its rights of way shall be
considered the payment of due compensation; provided, however, that at the
expiration date of any existing agreement for use of such municipal rights of
way or December 31, 2012, whichever is earlier, the payment at rates in
accordance with the rates set by regulations promulgated by the Department of
Transportation shall be considered the payment of due compensation. Provided,
further, that if a telegraph or telephone company begins providing service after
January 1, 2008, and such telegraph or telephone company does not have retail,
end user customers located within the boundaries of a municipal authority, the
payment by such company at rates in accordance with the rates set by regulations
promulgated by the Department of Transportation to a municipal authority for the
use of its rights of way shall be considered the payment of due
compensation.
(19)
Nothing in this Code section shall be construed to affect any franchise fee
payments which were in dispute on or before January 1, 2008.
(c)
If a telegraph or telephone company accesses the public roads and highways and
rights of way of a county and such county requires such telegraph or telephone
company to pay due compensation, such due compensation shall be limited to an
administrative cost recoupment fee which shall not exceed such county's direct,
actual costs incurred in its permitting process, including issuing and
processing permits, plan reviews, physical
inspection,
and direct administrative costs; and such costs shall be demonstrable and shall
be equitable among applicable users of such county's roads and highways or
rights of way. Permit fees shall not include the costs of highway or rights of
way acquisition or any general administrative, management, or maintenance costs
of the roads and highways or rights of way and shall not be imposed for any
activity that does not require the physical disturbance of such public roads and
highways or rights of way or does not impair access to or full use of such
public roads and highways or rights of way. Nothing in this Code section shall
affect the authority of a county to require a telegraph or telephone company to
comply with reasonable regulations for construction of telephone lines and
facilities in public highways or rights of way pursuant to the provisions of
paragraph (6) of Code Section 32-4-42."
PART
IV
SECTION 4-1.
SECTION 4-1.
Title 48 of the Official Code
of Georgia Annotated, relating to revenue and taxation, is amended in Code
Section 48-7-1, relating to definitions regarding income taxes, by revising
subparagraph (D) of paragraph (11) as follows:
"(D)
Every individual who is not a resident of this state for income tax purposes and
who makes a withdrawal as provided for in paragraph
(10)
(9)
of subsection
(b)
(c)
of Code Section 48-7-27; and"
SECTION
4-2.
Said Title 48 is further
amended in Code Section 48-7-30, relating to taxation of nonresident income, by
revising subsection (a) as follows:
"(a)
The tax imposed by this chapter shall apply to the entire net income of a
taxable nonresident derived from employment, trade, business, professional, or
other activity for financial gain or profit performed or carried on within this
state including, but not limited to, the rental of real or personal property
located within this state or for use within this state, the sale, exchange, or
other disposition of tangible or intangible property having a situs in this
state, the receipt of proceeds of any lottery prize awarded by the Georgia
Lottery Corporation, and withdrawals of contributions to a savings trust account
under Article 11 of Chapter 3 of Title 20 which are required to be included in
taxable net income as provided in subparagraph
(b)(10)(C)
(c)(9)(C)
of Code Section 48-7-27."
SECTION
4-3.
Said Title 48 is further
amended in Code Section 48-7-30, relating to taxation of nonresident income, by
revising paragraph (2) of subsection (d) as follows:
"(2)
Expenses allowable to a taxable nonresident as provided in paragraph (1) of this
subsection shall be allowable only to the extent that the expenses are
attributable to the production of income allocable to and taxable by this state.
As to allowable deductions essentially personal in nature, such as contributions
to charitable organizations, alimony, medical expenses,
the
optional standard deduction, personal
exemptions, and credits for dependents,
the taxable nonresident shall be allowed deductions for such deductions
essentially personal in nature in the ratio that the gross income allocated to
this state bears to the total gross income of the taxable nonresident computed
as if the taxable nonresident were a resident of this state. The commissioner
may accept total federal gross income as the equivalent of total Georgia gross
income for purposes of this allocation."
PART
V
SECTION 5-1.
SECTION 5-1.
Except as otherwise provided
in this part, this Act shall become effective upon this Act's approval by the
Governor or upon its becoming law without such approval.
SECTION
5-2.
(a)
Part I of this Act shall become effective January 1, 2012, and shall be
applicable to all taxable years beginning on or after January 1,
2012.
(b)
Tax, penalty, and interest liabilities and refund eligibility for prior taxable
years shall not be affected by the passage of Part I of this Act and shall
continue to be governed by the provisions of general law as it existed
immediately prior to January 1, 2012.
(c)
Part I of 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 January 1, 2012.
SECTION
5-3.
Part II of this Act shall
become effective on January 1, 2012.
SECTION
5-4.
Part III of this Act shall
become effective on January 1, 2012. With respect to communications services
which are regularly billed on a monthly basis, the excise taxation provisions of
Part III of this Act shall become effective on the first regular billing period
coinciding with or following January 1, 2012.
SECTION
5-5.
Part IV of this Act shall
become effective on January 1, 2012, and shall be applicable to all taxable
years beginning on or after that date.
PART
VI
SECTION 6-1.
SECTION 6-1.
All laws and parts of laws in
conflict with this Act are repealed.
