Bill Text: GA HB385 | 2011-2012 | Regular Session | Introduced
Bill Title: Revenue and taxation; revenue structure; comprehensive revision
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2011-03-01 - House Second Readers [HB385 Detail]
Download: Georgia-2011-HB385-Introduced.html
11 LC 18
9816
House
Bill 385
By:
Representatives Channell of the
116th
and O`Neal of the
146th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Titles 48, 2, 28, 33, 36, 46, and 50 of the Official Code of Georgia
Annotated, relating respectively, to revenue and taxation, agriculture, the
General Assembly, insurance, local government, public utilities, and state
government, so as to provide for comprehensive revision of the revenue structure
of the State of Georgia; to implement the recommendations of the 2010 Special
Council on Tax Reform and Fairness for Georgians as provided for and required by
Chapter 12 of the Title 28 of the Official Code of Georgia Annotated; to provide
for comprehensive revision of personal income taxes; to redefine taxable net
income; to provide for a flat rate tax structure; to eliminate adjustments to
income except for personal exemptions and standard deductions and retirement
income exclusions; to repeal certain income tax credits; to provide for
procedures, conditions, and limitations; to provide for comprehensive revision
of corporate income taxes; to reduce the rate of such income tax; to provide for
procedures, conditions, and limitations; to revise and change certain
adjustments to income; to repeal certain income tax credits; 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 and digital products; 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 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 a consolidated and simplified excise tax on
communications services in lieu of any 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 comprehensive procedures, conditions,
and limitations; to provide for powers, duties, and authority of the Department
of Revenue and the state revenue commissioner; to provide for the comprehensive
revision of motor fuel taxation; to provide for the rate of such taxation; to
provide for procedures, conditions, and limitations; to repeal the second motor
fuel tax; to provide for corresponding changes to sales and use taxes and motor
fuel taxes; to provide for powers, duties, and authority of the commissioner; to
change certain provisions regarding the excise tax on cigarettes; to provide for
annual adjustments with respect to such excise tax; to provide for powers,
duties, and authority of the commissioner; to reduce the rates of state and
local insurance premium taxes; to repeal Article 3 of Chapter 5 of Title 28,
relating to fiscal bills generally; to provide for the comprehensive regulation
of fiscal impact standards for general bills or general resolutions and for
nonfiscal revenue bills enacting or amending tax exemptions or tax credits; to
provide for a short title; to provide for legislative purposes and intent; to
provide for definitions; to provide for procedures, conditions, and limitations;
to provide for powers, duties, and authority of the General Assembly and the
state auditor; to provide for the creation and operation of the Economic
Development Trust Fund; to provide for voluntary programs and contracts
regarding collection of sales and use taxes; 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 and contingent effective
dates; to provide for automatic repeal of certain provisions of this Act under
certain circumstances; to provide for applicability; to provide that 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 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)(1)
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 applying any exclusions or
adjustments allowed pursuant to this chapter for that same taxable year to the
adjusted gross income reported on that individual's federal income tax return
for that taxable year and then multiplying that resulting amount by 5 percent
and reducing that amount by any credit allowed pursuant to Chapter 7A of this
title for that same taxable year.
(2)
For taxable years beginning on or after January 1, 2013, and prior to January 1,
2014, the tax imposed pursuant to subsection (a) of this Code section shall be
the amount determined by applying any exclusions or adjustments allowed pursuant
to this chapter for that same taxable year to the adjusted gross income reported
on that individual's federal income tax return for that taxable year and then
multiplying that resulting amount by 4.5 percent and reducing that amount by any
credit allowed pursuant to Chapter 7A of this title for that same taxable
year.
(3)
For all taxable years beginning on or after January 1, 2014, the tax imposed
pursuant to subsection (a) of this Code section shall be the amount determined
by applying any exclusions or adjustments allowed pursuant to this chapter for
that same taxable year to the adjusted gross income reported on that
individual's federal income tax return for the applicable taxable year and then
multiplying that resulting amount by 4 percent and reducing that amount by any
credit allowed pursuant to Chapter 7A of this title for that same taxable
year.
(c)(d)
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)(e)
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.
(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,
For taxable
years beginning on or after January 1,
2012, an exemption of
$3,000.00
$2,000.00
for each dependent of a taxpayer shall be allowed as a deduction in computing
Georgia taxable income of the taxpayer.
(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
$2,000.00;
and
(2)
A trust -
$1,350.00
$1,000.00."
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,
and shall apply only to nonbusiness income of individuals.
(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)
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 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;
(2)(1)
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)(2)(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)(3)(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)
(4)
of this subsection, and paragraph
(7)
(5)
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)(4)(A)
Retirement income otherwise included in Georgia taxable net income shall be
subject to an exclusion amount as follows:
(i)
For taxable years beginning on or after January 1, 1989, and prior to January 1,
1990, retirement income not to exceed an exclusion amount of $8,000.00 per year
received from any source;
(ii)
For taxable years beginning on or after January 1, 1990, and prior to January 1,
1994, retirement income not to exceed an exclusion amount of $10,000.00 per year
received from any source;
(iii)
For taxable years beginning on or after January 1, 1994, and prior to January 1,
1995, retirement income from any source not to exceed an exclusion amount of
$11,000.00;
(iv)
For taxable years beginning on or after January 1, 1995, and prior to
January 1, 1999, retirement income from any source not to exceed an
exclusion amount of $12,000.00;
(v)
For taxable years beginning on or after January 1, 1999, and prior to January 1,
2000, retirement income from any source not to exceed an exclusion amount of
$13,000.00;
(vi)
For taxable years beginning on or after January 1, 2000, and prior to January 1,
2001, retirement income not to exceed an exclusion amount of $13,500.00 per year
received from any source;
(vii)
For taxable years beginning on or after January 1, 2001, and prior to
January 1, 2002, retirement income from any source not to exceed an
exclusion amount of $14,000.00;
(viii)
For taxable years beginning on or after January 1, 2002, and prior to January 1,
2003, retirement income from any source not to exceed an exclusion amount of
$14,500.00;
(ix)
For taxable years beginning on or after January 1, 2003, and prior to January 1,
2006, retirement income from any source not to exceed an exclusion amount of
$15,000.00;
(x)
For taxable years beginning on or after January 1, 2006, and prior to January 1,
2007, retirement income from any source not to exceed an exclusion amount of
$25,000.00;
(xi)
For taxable years beginning on or after January 1, 2007, and prior to January 1,
2008, retirement income from any source not to exceed an exclusion amount of
$30,000.00;
(xii)
For taxable years beginning on or after January 1, 2008, and prior to January 1,
2012, retirement income from any source not to exceed an exclusion amount of
$35,000.00;
(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
$28,000.00;
(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
$21,000.00;
and
(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
$14,000.00;
(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
$7,000.00;
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
shall not be
excluded from Georgia taxable net
income.
(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
the
amount of an individual's earned income
specified in
this subparagraph. Earned income in
excess of
$4,000.00
such specified
amount,
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.:
(i)
For taxable years beginning on or after January 1, 2012, and prior to
January 1, 2013, the earned income amount shall not exceed
$3,200.00;
(ii)
For taxable years beginning on or after January 1, 2013, and prior to
January 1, 2014, the earned income amount shall not exceed
$2,400.00;
(iii)
For taxable years beginning on or after January 1, 2014, and prior to January 1,
2015, the earned income amount shall not exceed $1,600.00;
(iv)
For taxable years beginning on or after January 1, 2015, and prior to January 1,
2016, the earned income amount shall not exceed $800.00; and
(v)
For taxable years beginning on or after January 1, 2014, no earned income amount
shall be included as retirement income;
(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)(5)
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)(6)
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)(7)
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)(8)
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)
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)(9)
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)(10)
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)(11)
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)
(3)
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)
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)(8)(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)(9)
Georgia taxable income shall be adjusted as provided in Code
Section 48-7-28.3.
(12)(10)
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)(11)
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 Code Section 48-7-29, relating to tax
credit for rural physicians, and designating said Code section as
reserved.
SECTION
1-5.
Said
Title 48 is further amended by repealing Code Section 48-7-29.1, relating to
accessibility feature retrofit of homes tax credits.
SECTION
1-6.
Said
Title 48 is further amended by repealing Code Section 48-7-29.2, relating to tax
credits for qualified caregiving expenses.
SECTION
1-7.
Said
Title 48 is further amended by repealing Code Section 48-7-29.3, relating to tax
credits for federal qualified transportation fringe benefits.
SECTION
1-8.
Said
Title 48 is further amended by repealing Code Section 48-7-29.4, relating to tax
credits for disaster assistance funds.
SECTION
1-9.
Said
Title 48 is further amended by repealing Code Section 48-7-29.5, relating to tax
credits for private driver education courses of minors.
SECTION
1-10.
Said
Title 48 is further amended by repealing Code Section 48-7-29.6, relating to tax
credits for qualified low-income buildings.
SECTION
1-11.
Said
Title 48 is further amended by repealing Code Section 48-7-29.7, relating to tax
credits for depository financial institutions.
SECTION
1-12.
Said
Title 48 is further amended by repealing Code Section 48-7-29.8, relating to tax
credits for rehabilitation of historic structures.
SECTION
1-13.
Said
Title 48 is further amended by repealing Code Section 48-7-29.9, relating to tax
credits for qualified life insurance premiums for National Guard and Air
National Guard members.
SECTION
1-14.
Said
Title 48 is further amended by repealing Code Section 48-7-29.10, relating to
tax credits for qualified child and dependent care expenses.
SECTION
1-15.
Said
Title 48 is further amended by repealing Code Section 48-7-29.11, relating to
tax credits for teleworking.
SECTION
1-16.
Said
Title 48 is further amended by repealing Code Section 48-7-29.12, relating to
tax credits for donation of real property.
SECTION
1-17.
Said
Title 48 is further amended by repealing Code Section 48-7-29.13, relating to
tax credits for qualified health insurance expenses.
SECTION
1-18.
Said
Title 48 is further amended by repealing Code Section 48-7-29.14, relating to
tax credits for clean energy property.
SECTION
1-19.
Said
Title 48 is further amended by repealing Code Section 48-7-29.15, relating to
tax credits for adoption of foster children.
SECTION
1-20.
Said
Title 48 is further amended by repealing Code Section 48-7-29.16, relating to
tax credits for qualified education.
SECTION
1-21
Said
Title 48 is further amended by repealing Code Section 48-7-29.17, relating to
tax credits for purchase of eligible single-family residences.
SECTION
1-22.
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
For all
taxable years beginning on or after January 1,
2012, 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
nonbusiness
income tax liability for the taxable year for which the individual income tax
return is being
filed;
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)
For all
taxable years beginning on or after January 1, 2012,
each
Each
taxpayer may claim a tax credit in the amount indicated for each 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
|
||||
|
Adjusted
Gross Income
|
Tax
Credit
|
|
|||
|
|
Single
|
Married
Filing
Joint
|
Head
of Household
|
Married
Filing Separate
|
|
|
Under
$750.00
|
$88.00
|
$88.00
|
$88.00
|
$88.00
|
|
|
$750.00
but not more than $999.00
|
$100.00
|
$100.00
|
$100.00
|
$100.00
|
|
|
$1,000.00
but not more than $1,999.00
|
$150.00
|
$150.00
|
$150.00
|
$150.00
|
|
|
$2,000.00
but not more than $2,999.00
|
$200.00
|
$200.00
|
$200.00
|
$200.00
|
|
|
$3,000.00
but not more than $3,999.00
|
$250.00
|
$250.00
|
$250.00
|
$250.00
|
|
|
$4,000.00
but not more than $4,999.00
|
$300.00
|
$300.00
|
$300.00
|
$295.00
|
|
|
$5,000.00
but not more than $5,999.00
|
$338.00
|
$350.00
|
$340.00
|
$325.00
|
|
|
$6,000.00
but not more than $6,999.00
|
$368.00
|
$400.00
|
$370.00
|
$345.00
|
|
|
$7,000.00
but not more than $7,999.00
|
$390.00
|
$450.00
|
$400.00
|
$355.00
|
|
|
$8,000.00
but not more than $8,999.00
|
$408.00
|
$494.00
|
$420.00
|
$355.00
|
|
|
$9,000.00
but not more than $9,999.00
|
$418.00
|
$528.00
|
$440.00
|
$350.00
|
|
|
$10,000.00
but not more than $10,999.00
|
$420.00
|
$558.00
|
$450.00
|
$340.00
|
|
|
$11,000.00
but not more than $11,999.00
|
$420.00
|
$582.00
|
$460.00
|
$330.00
|
|
|
$12,000.00
but not more than $12,999.00
|
$410.00
|
$602.00
|
$460.00
|
$320.00
|
|
|
$13,000.00
but not more than $13,999.00
|
$400.00
|
$616.00
|
$460.00
|
$310.00
|
|
|
$14,000.00
but not more than $14,999.00
|
$390.00
|
$626.00
|
$460.00
|
$300.00
|
|
|
$15,000.00
but not more than $15,999.00
|
$380.00
|
$630.00
|
$450.00
|
$290.00
|
|
|
$16,000.00
but not more than $16,999.00
|
$370.00
|
$630.00
|
$440.00
|
$280.00
|
|
|
$17,000.00
but not more than $17,999.00
|
$360.00
|
$630.00
|
$430.00
|
$270.00
|
|
|
$18,000.00
but not more than $18,999.00
|
$350.00
|
$624.00
|
$420.00
|
$260.00
|
|
|
$19,000.00
but not more than $19,999.00
|
$340.00
|
$614.00
|
$410.00
|
$250.00
|
|
|
$20,000.00
but not more than $20,999.00
|
$330.00
|
$604.00
|
$400.00
|
$240.00
|
|
|
$21,000.00
but not more than $21,999.00
|
$320.00
|
$594.00
|
$390.00
|
$230.00
|
|
|
$22,000.00
but not more than $22,999.00
|
$310.00
|
$584.00
|
$380.00
|
$220.00
|
|
|
$23,000.00
but not more than $23,999.00
|
$300.00
|
$574.00
|
$370.00
|
$210.00
|
|
|
$24,000.00
but not more than $24,999.00
|
$290.00
|
$564.00
|
$360.00
|
$200.00
|
|
|
$25,000.00
but not more than $25,999.00
|
$280.00
|
$554.00
|
$350.00
|
$190.00
|
|
|
$26,000.00
but not more than $26,999.00
|
$270.00
|
$544.00
|
$340.00
|
$180.00
|
|
|
$27,000.00
but not more than $27,999.00
|
$260.00
|
$534.00
|
$330.00
|
$170.00
|
|
|
$28,000.00
but not more than $28,999.00
|
$250.00
|
$524.00
|
$320.00
|
$160.00
|
|
|
$29,000.00
but not more than $29,999.00
|
$240.00
|
$514.00
|
$310.00
|
$150.00
|
|
|
$30,000.00
but not more than $30,999.00
|
$230.00
|
$504.00
|
$300.00
|
$140.00
|
|
|
$31,000.00
but not more than $31,999.00
|
$220.00
|
$494.00
|
$290.00
|
$130.00
|
|
|
$32,000.00
but not more than $32,999.00
|
$210.00
|
$484.00
|
$280.00
|
$120.00
|
|
|
$33,000.00
but not more than $33,999.00
|
$200.00
|
$474.00
|
$270.00
|
$110.00
|
|
|
$34,000.00
but not more than $34,999.00
|
$190.00
|
$464.00
|
$260.00
|
$100.00
|
|
|
$35,000.00
but not more than $35,999.00
|
$180.00
|
$454.00
|
$250.00
|
$90.00
|
|
|
$36,000.00
but not more than $36,999.00
|
$170.00
|
$444.00
|
$240.00
|
$80.00
|
|
|
$37,000.00
but not more than $37,999.00
|
$160.00
|
$434.00
|
$230.00
|
$70.00
|
|
|
$38,000.00
but not more than $38,999.00
|
$150.00
|
$424.00
|
$220.00
|
$60.00
|
|
|
$39,000.00
but not more than $39,999.00
|
$140.00
|
$414.00
|
$210.00
|
0
|
|
|
$40,000.00
but not more than $40,999.00
|
$130.00
|
$404.00
|
$200.00
|
0
|
|
|
$41,000.00
but not more than $41,999.00
|
$120.00
|
$394.00
|
$190.00
|
0
|
|
|
$42,000.00
but not more than $42,999.00
|
$110.00
|
$384.00
|
$180.00
|
0
|
|
|
$43,000.00
but not more than $43,999.00
|
$100.00
|
$374.00
|
$170.00
|
0
|
|
|
$44,000.00
but not more than $44,999.00
|
$90.00
|
$364.00
|
$160.00
|
0
|
|
|
$45,000.00
but not more than $45,999.00
|
$80.00
|
$354.00
|
$150.00
|
0
|
|
|
$46,000.00
but not more than $46,999.00
|
$70.00
|
$344.00
|
$140.00
|
0
|
|
|
$47,000.00
but not more than $47,999.00
|
$60.00
|
$334.00
|
$130.00
|
0
|
|
|
$48,000.00
but not more than $48,999.00
|
0
|
$324.00
|
$120.00
|
0
|
|
|
$49,000.00
but not more than $49,999.00
|
0
|
$314.00
|
$110.00
|
0
|
|
|
$50,000.00
but not more than $50,999.00
|
0
|
$304.00
|
$100.00
|
0
|
|
|
$51,000.00
but not more than $51,999.00
|
0
|
$294.00
|
$90.00
|
0
|
|
|
$52,000.00
but not more than $52,999.00
|
0
|
$284.00
|
$80.00
|
0
|
|
|
$53,000.00
but not more than $53,999.00
|
0
|
$274.00
|
$70.00
|
0
|
|
|
$54,000.00
but not more than $54,999.00
|
0
|
$264.00
|
$60.00
|
0
|
|
|
$55,000.00
but not more than $55,999.00
|
0
|
$254.00
|
0
|
0
|
|
|
$56,000.00
but not more than $56,999.00
|
0
|
$244.00
|
0
|
0
|
|
|
$57,000.00
but not more than $57,999.00
|
0
|
$234.00
|
0
|
0
|
|
|
$58,000.00
but not more than $58,999.00
|
0
|
$224.00
|
0
|
0
|
|
|
$59,000.00
but not more than $59,999.00
|
0
|
$214.00
|
0
|
0
|
|
|
$60,000.00
but not more than $60,999.00
|
0
|
$204.00
|
0
|
0
|
|
|
$61,000.00
but not more than $61,999.00
|
0
|
$194.00
|
0
|
0
|
|
|
$62,000.00
but not more than $62,999.00
|
0
|
$184.00
|
0
|
0
|
|
|
$63,000.00
but not more than $63,999.00
|
0
|
$174.00
|
0
|
0
|
|
|
$64,000.00
but not more than $64,999.00
|
0
|
$164.00
|
0
|
0
|
|
|
$65,000.00
but not more than $65,999.00
|
0
|
$154.00
|
0
|
0
|
|
|
$66,000.00
but not more than $66,999.00
|
0
|
$144.00
|
0
|
0
|
|
|
$67,000.00
but not more than $67,999.00
|
0
|
$134.00
|
0
|
0
|
|
|
$68,000.00
but not more than $68,999.00
|
0
|
$124.00
|
0
|
0
|
|
|
$69,000.00
but not more than $69,999.00
|
0
|
$114.00
|
0
|
0
|
|
|
$70,000.00
but not more than $70,999.00
|
0
|
$104.00
|
0
|
0
|
|
|
$71,000.00
but not more than $71,999.00
|
0
|
$94.00
|
0
|
0
|
|
|
$72,000.00
but not more than $72,999.00
|
0
|
$84.00
|
0
|
0
|
|
|
$73,000.00
but not more than $73,999.00
|
0
|
$74.00
|
0
|
0
|
|
|
$74,000.00
but not more than $74,999.00
|
0
|
$64.00
|
0
|
0
|
|
|
$75,000.00
but not more than $75,999.00
|
0
|
$54.00
|
0
|
0
|
|
|
$76,000.00
or more
|
0
|
0
|
0
|
0
|
|
(b.1)
For taxable years beginning on or after January 1, 2013, and prior to January 1,
2014, each taxpayer may claim a tax credit in the amount indicated for each
adjusted gross income bracket as shown in the schedule below:
|
Adjusted
Gross Income
|
Tax
Credit
|
|||
|
|
Single
|
Married
Filing
Joint
|
Head
of Household
|
Married
Filing Separate
|
|
Under
$750.00
|
$84.00
|
$84.00
|
$84.00
|
$84.00
|
|
$750.00
but not more than $999.00
|
$95.00
|
$95.00
|
$95.00
|
$95.00
|
|
$1,000.00
but not more than $1,999.00
|
$140.00
|
$140.00
|
$140.00
|
$140.00
|
|
$2,000.00
but not more than $2,999.00
|
$185.00
|
$185.00
|
$185.00
|
$185.00
|
|
$3,000.00
but not more than $3,999.00
|
$230.00
|
$230.00
|
$230.00
|
$230.00
|
|
$4,000.00
but not more than $4,999.00
|
$275.00
|
$275.00
|
$275.00
|
$270.00
|
|
$5,000.00
but not more than $5,999.00
|
$308.00
|
$320.00
|
$310.00
|
$295.00
|
|
$6,000.00
but not more than $6,999.00
|
$333.00
|
$365.00
|
$335.00
|
$310.00
|
|
$7,000.00
but not more than $7,999.00
|
$350.00
|
$410.00
|
$360.00
|
$315.00
|
|
$8,000.00
but not more than $8,999.00
|
$363.00
|
$449.00
|
$375.00
|
$310.00
|
|
$9,000.00
but not more than $9,999.00
|
$368.00
|
$478.00
|
$390.00
|
$300.00
|
|
$10,000.00
but not more than $10,999.00
|
$365.00
|
$503.00
|
$395.00
|
$285.00
|
|
$11,000.00
but not more than $11,999.00
|
$360.00
|
$522.00
|
$400.00
|
$270.00
|
|
$12,000.00
but not more than $12,999.00
|
$345.00
|
$537.00
|
$395.00
|
$255.00
|
|
$13,000.00
but not more than $13,999.00
|
$330.00
|
$546.00
|
$390.00
|
$240.00
|
|
$14,000.00
but not more than $14,999.00
|
$315.00
|
$551.00
|
$385.00
|
$225.00
|
|
$15,000.00
but not more than $15,999.00
|
$300.00
|
$550.00
|
$370.00
|
$210.00
|
|
$16,000.00
but not more than $16,999.00
|
$285.00
|
$545.00
|
$355.00
|
$195.00
|
|
$17,000.00
but not more than $17,999.00
|
$270.00
|
$540.00
|
$340.00
|
$180.00
|
|
$18,000.00
but not more than $18,999.00
|
$255.00
|
$529.00
|
$325.00
|
$165.00
|
|
$19,000.00
but not more than $19,999.00
|
$240.00
|
$514.00
|
$310.00
|
$150.00
|
|
$20,000.00
but not more than $20,999.00
|
$225.00
|
$499.00
|
$295.00
|
$135.00
|
|
$21,000.00
but not more than $21,999.00
|
$210.00
|
$484.00
|
$280.00
|
$120.00
|
|
$22,000.00
but not more than $22,999.00
|
$195.00
|
$469.00
|
$265.00
|
$105.00
|
|
$23,000.00
but not more than $23,999.00
|
$180.00
|
$454.00
|
$250.00
|
$90.00
|
|
$24,000.00
but not more than $24,999.00
|
$165.00
|
$439.00
|
$235.00
|
$75.00
|
|
$25,000.00
but not more than $25,999.00
|
$150.00
|
$424.00
|
$220.00
|
$60.00
|
|
$26,000.00
but not more than $26,999.00
|
$135.00
|
$409.00
|
$205.00
|
0
|
|
$27,000.00
but not more than $27,999.00
|
$120.00
|
$394.00
|
$190.00
|
0
|
|
$28,000.00
but not more than $28,999.00
|
$105.00
|
$379.00
|
$175.00
|
0
|
|
$29,000.00
but not more than $29,999.00
|
$90.00
|
$364.00
|
$160.00
|
0
|
|
$30,000.00
but not more than $30,999.00
|
$75.00
|
$349.00
|
$145.00
|
0
|
|
$31,000.00
but not more than $31,999.00
|
$60.00
|
$334.00
|
$130.00
|
0
|
|
$32,000.00
but not more than $32,999.00
|
0
|
$319.00
|
$115.00
|
0
|
|
$33,000.00
but not more than $33,999.00
|
0
|
$304.00
|
$100.00
|
0
|
|
$34,000.00
but not more than $34,999.00
|
0
|
$289.00
|
$85.00
|
0
|
|
$35,000.00
but not more than $35,999.00
|
0
|
$274.00
|
$70.00
|
0
|
|
$36,000.00
but not more than $36,999.00
|
0
|
$259.00
|
$55.00
|
0
|
|
$37,000.00
but not more than $37,999.00
|
0
|
$244.00
|
0
|
0
|
|
$38,000.00
but not more than $38,999.00
|
0
|
$229.00
|
0
|
0
|
|
$39,000.00
but not more than $39,999.00
|
0
|
$214.00
|
0
|
0
|
|
$40,000.00
but not more than $40,999.00
|
0
|
$199.00
|
0
|
0
|
|
$41,000.00
but not more than $41,999.00
|
0
|
$184.00
|
0
|
0
|
|
$42,000.00
but not more than $42,999.00
|
0
|
$169.00
|
0
|
0
|
|
$43,000.00
but not more than $43,999.00
|
0
|
$154.00
|
0
|
0
|
|
$44,000.00
but not more than $44,999.00
|
0
|
$139.00
|
0
|
0
|
|
$45,000.00
but not more than $45,999.00
|
0
|
$124.00
|
0
|
0
|
|
$46,000.00
but not more than $46,999.00
|
0
|
$109.00
|
0
|
0
|
|
$47,000.00
but not more than $47,999.00
|
0
|
$94.00
|
0
|
0
|
|
$48,000.00
but not more than $48,999.00
|
0
|
$79.00
|
0
|
0
|
|
$49,000.00
but not more than $49,999.00
|
0
|
$64.00
|
0
|
0
|
|
$50,000.00
or more
|
0
|
0
|
0
|
0
|
(b.2)
For all taxable years beginning on or after January 1, 2014, each taxpayer may
claim a tax credit in the amount indicated for each adjusted gross income
bracket as shown in the schedule below:
|
Adjusted
Gross Income
|
Tax
Credit
|
|||
|
|
Single
|
Married
Filing
Joint
|
Head
of Household
|
Married
Filing Separate
|
|
Under
$750.00
|
$80.00
|
$80.00
|
$80.00
|
$80.00
|
|
$750.00
but not more than $999.00
|
$90.00
|
$90.00
|
$90.00
|
$90.00
|
|
$1,000.00
but not more than $1,999.00
|
$130.00
|
$130.00
|
$130.00
|
$130.00
|
|
$2,000.00
but not more than $2,999.00
|
$170.00
|
$170.00
|
$170.00
|
$170.00
|
|
$3,000.00
but not more than $3,999.00
|
$210.00
|
$210.00
|
$210.00
|
$210.00
|
|
$4,000.00
but not more than $4,999.00
|
$250.00
|
$250.00
|
$250.00
|
$245.00
|
|
$5,000.00
but not more than $5,999.00
|
$278.00
|
$290.00
|
$280.00
|
$265.00
|
|
$6,000.00
but not more than $6,999.00
|
$298.00
|
$330.00
|
$300.00
|
$275.00
|
|
$7,000.00
but not more than $7,999.00
|
$310.00
|
$370.00
|
$320.00
|
$275.00
|
|
$8,000.00
but not more than $8,999.00
|
$318.00
|
$404.00
|
$330.00
|
$265.00
|
|
$9,000.00
but not more than $9,999.00
|
$318.00
|
$428.00
|
$340.00
|
$250.00
|
|
$10,000.00
but not more than $10,999.00
|
$310.00
|
$448.00
|
$340.00
|
$230.00
|
|
$11,000.00
but not more than $11,999.00
|
$300.00
|
$462.00
|
$340.00
|
$210.00
|
|
$12,000.00
but not more than $12,999.00
|
$280.00
|
$472.00
|
$330.00
|
$190.00
|
|
$13,000.00
but not more than $13,999.00
|
$260.00
|
$476.00
|
$320.00
|
$170.00
|
|
$14,000.00
but not more than $14,999.00
|
$240.00
|
$476.00
|
$310.00
|
$150.00
|
|
$15,000.00
but not more than $15,999.00
|
$220.00
|
$470.00
|
$290.00
|
$130.00
|
|
$16,000.00
but not more than $16,999.00
|
$200.00
|
$460.00
|
$270.00
|
$110.00
|
|
$17,000.00
but not more than $17,999.00
|
$180.00
|
$450.00
|
$250.00
|
$90.00
|
|
$18,000.00
but not more than $18,999.00
|
$160.00
|
$434.00
|
$230.00
|
$70.00
|
|
$19,000.00
but not more than $19,999.00
|
$140.00
|
$414.00
|
$210.00
|
0
|
|
$20,000.00
but not more than $20,999.00
|
$120.00
|
$394.00
|
$190.00
|
0
|
|
$21,000.00
but not more than $21,999.00
|
$100.00
|
$374.00
|
$170.00
|
0
|
|
$22,000.00
but not more than $22,999.00
|
$80.00
|
$354.00
|
$150.00
|
0
|
|
$23,000.00
but not more than $23,999.00
|
$60.00
|
$334.00
|
$130.00
|
0
|
|
$24,000.00
but not more than $24,999.00
|
0
|
$314.00
|
$110.00
|
0
|
|
$25,000.00
but not more than $25,999.00
|
0
|
$294.00
|
$90.00
|
0
|
|
$26,000.00
but not more than $26,999.00
|
0
|
$274.00
|
$70.00
|
0
|
|
$27,000.00
but not more than $27,999.00
|
0
|
$254.00
|
0
|
0
|
|
$28,000.00
but not more than $28,999.00
|
0
|
$234.00
|
0
|
0
|
|
$29,000.00
but not more than $29,999.00
|
0
|
$214.00
|
0
|
0
|
|
$30,000.00
but not more than $30,999.00
|
0
|
$194.00
|
0
|
0
|
|
$31,000.00
but not more than $31,999.00
|
0
|
$174.00
|
0
|
0
|
|
$32,000.00
but not more than $32,999.00
|
0
|
$154.00
|
0
|
0
|
|
$33,000.00
but not more than $33,999.00
|
0
|
$134.00
|
0
|
0
|
|
$34,000.00
but not more than $34,999.00
|
0
|
$114.00
|
0
|
0
|
|
$35,000.00
but not more than $35,999.00
|
0
|
$94.00
|
0
|
0
|
|
$36,000.00
but not more than $36,999.00
|
0
|
$74.00
|
0
|
0
|
|
$37,000.00
but not more than $37,999.00
|
0
|
$54.00
|
0
|
0
|
|
$38,000.00
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)
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)
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 48-7-21, relating to taxation of corporations, by revising subsection
(a) as follows:
"(a)(1)(A)
For any taxable year beginning prior to January 1, 2012,
every
Every
domestic corporation and every foreign corporation shall pay annually an income
tax equivalent to 6 percent of its Georgia taxable net income.
(B)
For taxable years beginning on or after January 1, 2012, and prior to
January 1, 2013, every domestic corporation and every foreign
corporation shall pay annually an income tax equivalent to 5 percent of its
Georgia taxable net income.
(C)
For taxable years beginning on or after January 1, 2013, and prior to
January 1, 2014, every domestic corporation and every foreign
corporation shall pay annually an income tax equivalent to 4.5 percent of its
Georgia taxable net income.
(D)
For any taxable year beginning on or after January 1, 2014, every domestic
corporation and every foreign corporation shall pay annually an income tax
equivalent to 4 percent of its Georgia taxable net income.
(2)
Georgia taxable net income of a corporation shall be the corporation's taxable
income from property owned or from business done in this state. A corporation's
taxable income from property owned or from business done in this state shall
consist of the corporation's taxable income as defined in the Internal Revenue
Code of 1986, with the adjustments provided for in subsection (b) of this Code
section and allocated and apportioned as provided in Code Section
48-7-31."
SECTION
2-2.
Said Title 48 is further
amended by adding a new Code section to read as follows:
"48-7-27.1.
(a)
This Code section shall not apply to all taxable years beginning on or after
January 1, 2012, and shall apply only to business income.
(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)
A portion of the qualified payments to minority subcontractors, as provided in
Code Section 48-7-38; and
(2)
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."
SECTION
2-3.
Said Title 48 is further
amended by revising Code Section 48-7-28, relating to reciprocity, as
follows:
"48-7-28.
(a)
This Code section shall apply to all taxable years beginning on or after January
1, 2012, and shall apply only to business income.
(b)
A resident individual who has an established business in another state, has
investment in property having a taxable situs in another state, or engages in
employment in another state may deduct from the tax due upon the entire net
income of the resident individual the tax paid upon the net income of the
business, investment, or employment in another state when the business,
investment, or employment is in a state that levies a tax upon net income. In no
case shall the credit permitted under this Code section exceed the tax which
would be payable to this state upon a like amount of taxable
income."
SECTION
2-4.
Said Title 48 is further
amended by revising Code Section 48-7-28.2, relating to employer social security
credits, as follows:
"48-7-28.2.
(a)
As used in this Code section, the term 'employer social security credit' means
the employer social security credit defined in Section 45B(a) of the Internal
Revenue Code of 1986, as amended.
(b)
This Code section shall apply to all taxable years beginning on or after January
1, 2012, and shall apply only to business income.
(b)(c)
If an employer elects to take an employer social security credit pursuant to
Section 38 of the Internal Revenue Code of 1986, as amended, the employer, in
calculating Georgia taxable net income, shall be allowed a deduction equal to
the employer social security credit."
SECTION
2-5.
Said Title 48 is further
amended by revising subsection (d) of Code Section 48-7-31.1, relating to income
allocation and proposal allocation, as follows:
"(d)
In evaluating proposals pursuant to subsection (a) of this Code section, the
panel shall not determine that a proposal has significant beneficial economic
effect on the region for which it is planned unless
two or more
of the following criteria are met:
(1)
The proposal creates new full-time jobs that meet the requirements contained in
Regulations 110-9-1-.01, 110-9-1-.02, and 110-9-1-.03 of the Department of
Community Affairs, relating to job tax credits, with average wages which are, as
determined by the Georgia Department of Labor for all jobs for the county in
question:
(A)
Twenty percent above such average wage for projects located in tier 1
counties;
(B)
Ten percent above such average wage for projects located in tier 2 counties;
or
(C)
Five percent above such average wage for projects located in tier 3 or tier 4
counties;
(2)
The project invests in qualified investment property, as defined in Regulation
560-7-8-.37 of the department, which is valued at over $10 million in tier 1
counties, over $35 million in tier 2 counties, and over $75 million in tier 3 or
tier 4 counties. Past investment will not be considered;
(3)
The proposal creates a minimum of 50 new full-time jobs that meet the
requirements contained in Regulations 110-9-1-.01, 110-9-1-.02, and 110-9-1-.03
of the Department of Community Affairs, relating to job tax credits, in a tier 1
county, 150 such jobs in a tier 2 county, or 300 such jobs in a tier 3 or tier 4
county; or
(4)
The
the
proposal demonstrates high growth potential based upon the prior year's Georgia
net taxable income growth of over 20 percent from the previous year, if the
company's Georgia net taxable income in each of the two preceding years also
grew by 20 percent or more."
SECTION
2-6.
Said Title 48 is further
amended by revising Code Section 48-7-38, relating to deductions for payments to
minority subcontractors, as follows:
"48-7-38.
(a)
As used in this Code section, the term:
(1)
'Member of a minority' means an individual who is:
(A)
Black;
(B)
Hispanic;
(C)
Asian-Pacific American;
(D)
Native American; or
(E)
Asian-Indian American.
(2)
'Minority subcontractor' means any business which is owned by:
(A)
An individual who is a member of a minority who reports as his or her personal
income for Georgia income tax purposes the income of such business;
(B)
A partnership in which a majority of the ownership interest is owned by one or
more members of a minority who report as their personal income for Georgia
income tax purposes more than 50 percent of the income of the partnership;
or
(C)
A corporation organized under the laws of this state in which a majority of the
common stock is owned by one or more members of a minority who report as their
personal income for Georgia income tax purposes more than 50 percent of the
distributed earnings of the corporation.
(3)
'State contract' means a contract for the purchase by the state of goods,
property, or services or for the construction of any building or structure for
the state, which contract is executed by any department, board, bureau,
commission, or agency of state government, by any state authority, or by any
officer, official, employee, or agent of any of the foregoing.
(b)
This Code section shall apply to all taxable years beginning on or after January
1, 2012, and shall apply only to business income.
(b)(c)
In computing Georgia taxable net income of a corporation, partnership, or
individual, there shall be subtracted from federal taxable income or federal
adjusted gross income 10 percent of the amount of qualified payments to minority
subcontractors. A payment to a minority subcontractor shall be a qualified
payment if:
(1)
The payment is for goods, personal property, or services furnished by the
minority subcontractor to the taxpayer and delivered by the taxpayer to the
state in furtherance of a state contract to which the taxpayer is a party; and
the payment does not exceed the value of the goods, property, or services to the
taxpayer;
(2)
The payment is made during the taxable year for which the subtraction from
federal taxable income or federal adjusted gross income is claimed;
and
(3)
The payment is made to a subcontractor who at the time of the payment is
certified as a minority
contractor
subcontractor
pursuant to subsection
(d)
(e)
of this Code section.
(c)(d)
The total amount which may be subtracted under this Code section from federal
taxable income or federal adjusted gross income of any taxpayer shall be limited
to $100,000.00 per taxable year.
(d)(e)
The commissioner of administrative services shall certify individuals,
partnerships, and corporations which are within the definition of the term
'minority subcontractor' specified in subsection (a) of this Code section. The
department may disclose to the commissioner of administrative services the
income tax returns of taxpayers applying for certification as minority
subcontractors. The commissioner of administrative services shall maintain and
periodically revise a list of certified minority subcontractors and shall make
such list available to the department and to the general public.
(e)(f)
Any individual, partnership, or corporation certified pursuant to subsection
(d)
(e)
of this Code section and any small business concern which is at least 51 percent
owned by one or more minorities, or, in the case of a publicly owned business,
at least 51 percent of all classes or types of the stock of which is owned by
one or more minorities, whose management and daily business operations are
controlled by one or more minorities, and which is authorized to do and is doing
business under the laws of this state paying all taxes duly assessed and
domiciled within this state shall be eligible for certification as a minority
business enterprise under Code Section 50-5-132; and, for purposes of such
certification pursuant to this subsection, 'minority' shall be defined as a
member of a minority. Such certification shall be subject to the provisions of
Code Section 50-5-133."
SECTION
2-7.
Said Title 48 is further
amended by repealing Code Section 48-7-40, relating to tax credits for business
enterprises in certain designated less developed areas.
SECTION
2-8.
Said Title 48 is further
amended by repealing Code Section 48-7-40.1, relating to tax credits for
business enterprises in less developed areas.
SECTION
2-9.
Said Title 48 is further
amended by repealing Code Section 48-7-40.2, relating to tax credits for
existing manufacturing and telecommunications facilities in tier 1
counties.
SECTION
2-10.
Said Title 48 is further
amended by repealing Code Section 48-7-40.3, relating to tax credits for
existing manufacturing and telecommunications facilities in tier 2
counties.
SECTION
2-11.
Said Title 48 is further
amended by repealing Code Section 48-7-40.4, relating to tax credits for
existing manufacturing and telecommunications facilities or manufacturing and
telecommunications support facilities in tier 3 or 4 counties.
SECTION
2-12.
Said Title 48 is further
amended by repealing Code Section 48-7-40.5, relating to tax credits for
employers providing approved retraining programs.
SECTION
2-13.
Said Title 48 is further
amended by repealing Code Section 48-7-40.6, relating to tax credits for
employers providing child care.
SECTION
2-14.
Said Title 48 is further
amended by repealing Code Section 48-7-40.7, relating to optional tax credits
for existing manufacturing and telecommunications facilities in tier 1
counties.
SECTION
2-15.
Said Title 48 is further
amended by repealing Code Section 48-7-40.8, relating to optional tax credits
for existing manufacturing and telecommunications facilities in tier 2
counties.
SECTION
2-16.
Said Title 48 is further
amended by repealing Code Section 48-7-40.9, relating to optional credits for
existing manufacturing and telecommunications facilities or manufacturing and
telecommunications support facilities in tier 3 or 4 counties.
SECTION
2-17.
Said Title 48 is further
amended by repealing Code Section 48-7-40.10, relating to tax credits for water
conservation facilities and qualified water conservation investment
property.
SECTION
2-18.
Said Title 48 is further
amended by repealing Code Section 48-7-40.11, relating to tax credits for shifts
from ground-water usage.
SECTION
2-19.
Said Title 48 is further
amended by repealing Code Section 48-7-40.12, relating to tax credits for
qualified research expenses.
SECTION
2-20.
Said Title 48 is further
amended by repealing Code Section 48-8-40.13 which is reserved.
SECTION
2-21.
Said Title 48 is further
amended by repealing Code Section 48-7-40.14, relating to calculation of new
full-time jobs for tax credit purposes.
SECTION
2-22.
Said Title 48 is further
amended by repealing Code Section 48-7-40.15, relating to alternative tax
credits for base year port traffic increases.
SECTION
2-23.
Said Title 48 is further
amended by repealing Code Section 48-7-40.15A, relating to additional job tax
credits based on increases in port traffic.
SECTION
2-24.
Said Title 48 is further
amended by repealing Code Section 48-7-40.16, relating to income tax credits for
low-emission vehicles.
SECTION
2-25.
Said Title 48 is further
amended by repealing Code Section 48-7-40.17, relating to tax credits for
establishing new quality jobs or relocating quality jobs.
SECTION
2-26.
Said Title 48 is further
amended by repealing Code Section 48-7-40.18, relating to tax credits for
establishing or relocating headquarters to this state.
SECTION
2-27.
Said Title 48 is further
amended by repealing Code Section 48-7-40.19, relating to tax credits for diesel
particulate emission reduction technology equipment.
SECTION
2-28.
Said Title 48 is further
amended by repealing Code Section 48-7-40.20, relating to tax credits for
manufacture of cigarettes for export.
SECTION
2-29.
Said Title 48 is further
amended by repealing Code Section 48-7-40.21, relating to tax credits for
business enterprises undergoing qualified expansion.
SECTION
2-30.
Said Title 48 is further
amended by repealing Code Section 48-7-40.22, relating to tax credits for lease
or purchase of vehicles for employee transportation.
SECTION
2-31.
Said Title 48 is further
amended by repealing Code Section 48-7-40.23, relating to election of calendar
year for basis of new job calculation for tax credits purposes.
SECTION
2-32.
Said Title 48 is further
amended by repealing Code Section 48-7-40.24, relating to conditions for taking
job tax credits by business enterprises.
SECTION
2-33.
Said Title 48 is further
amended by repealing Code Section 48-7-40.25, relating to conditions for taking
existing manufacturing facility tax credits by business
enterprises.
SECTION
2-34.
Said Title 48 is further
amended by repealing Code Section 48-7-40.26, relating to tax credits for film,
video, or digital production.
SECTION
2-35.
Said Title 48 is further
amended by repealing Code Section 48-7-40.27, relating to tax credits for
qualified businesses.
SECTION
2-36.
Said Title 48 is further
amended by repealing Code Section 48-7-40.28, relating to limitations on tax
credits for qualified investment.
SECTION
2-37.
Said Title 48 is further
amended by repealing Code Section 48-7-40.29, relating to tax credits for
qualified equipment reducing business or domestic energy or water
usage.
SECTION
2-38.
Said Title 48 is further
amended by repealing Code Section 48-7-40.30, relating to tax credits for
qualified business.
SECTION
2-39.
Said Title 48 is further
amended by repealing Code Section 48-7-41, relating to tax credits for basic
skills education programs.
SECTION
2-40.
Said Title 48 is further
amended by repealing Code Section 48-7-42, relating to assignment of corporate
income tax credits.
PART
III
SECTION 3-1.
SECTION 3-1.
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
3-2.
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
3-3.
Said Title 48 is further
amended by adding a new Code section to read as follows:
"48-8-2.1.
(a)
Services provided for under subparagraph (D.1) of paragraph (31) of Code Section
48-8-2 means the following:
(1)
Clothing services, including:
(A)
Shoe repair and other shoe services;
(B)
Repair, alteration, and tailoring for clothing and accessories;
(C)
Watch or jewelry repair;
(D)
Clothing storage; and
(E)
Laundry and dry cleaning;
(2)
Household services, including:
(A)
Garbage and trash pickup;
(B)
Septic cleaning;
(C)
Water softening;
(D)
Household appliance and equipment service contracts;
(E)
Housekeeping services;
(F)
Gardening or lawn care services, including, but not limited to, tree pruning and
removal;
(G)
Household appliance and equipment repair;
(H)
Other household services and small repair jobs around the house;
(I)
Home security system service fees; and
(J)
Installation charges for home electronics;
(3)
Membership services, including:
(A)
Global positioning services;
(B)
Golf courses, country clubs, and other social organizations, health clubs,
swimming pools, and fitness and weight loss centers;
(C)
Credit card membership fees;
(D)
Shopping club membership; and
(E)
Direct or online dating services;
(4)
Automotive maintenance, repair, and equipment installation services,
including:
(A)
Tire purchases and mounting;
(B)
Audio equipment and installation;
(C)
Video equipment and installation;
(D)
Body work and painting;
(E)
Clutch or transmission work;
(F)
Drive shaft or rear-end work;
(G)
Brake work;
(H)
Steering or front-end work;
(I)
Engine cooling system work;
(J)
Motor tune-up;
(K)
Oil change, lubrication, and oil filter;
(L)
Front-end alignment, wheel balancing, and wheel rotation;
(M)
Shock absorber replacement;
(N)
Battery purchase and installation, tire repair, miscellaneous
repairs;
(O)
Exhaust system work;
(P)
Electrical system work;
(Q)
Engine repair or replacement;
(R)
Vehicle accessories and customization;
(S)
Vehicle cleaning and detailing services;
(T)
Auto repair service policies;
(U)
Towing charges; and
(V)
Automobile service clubs.
(5)
Residential moving, storage and freight express;
(6)
Professional photography fees;
(7)
Pet services, including, but not limited to, boarding, training, and
grooming;
(8)
Veterinarian expenses for pets;
(9)
Haircuts, styling, coloring, and other related services; and
(10)
Safe deposit box rental.
(b)(1)
As used in this subsection, the term:
(A)
'Digital code' means a code that gives a purchaser of the code a right to
receive a digital product. A digital code may be obtained electronically or by
tangible means. Such term shall not include a gift certificate or a gift
card.
(B)
'Digital product' means an intangible product delivered electronically,
including any of the following specified digital products:
(i)
Ring tone which means a digitized sound file that is downloaded onto a device
and that may be used to alert the customer with respect to
communication;
(ii)
Digital audio-visual works which means a series of related images which, when
shown in succession, impart an impression of motion, together with accompanying
sounds, if any;
(iii)
Digital audio works which means works that result from the fixation of a series
of musical, spoken, or other sounds, including ring tones; or
(iv)
Digital books which means works that are generally recognized in the ordinary
and usual sense as books.
(2)
Sales and use tax under subparagraph (D.1) of paragraph (31) of Code Section
48-8-2 shall be applied to the sale or use of either a digital product or a
digital code used to obtain a digital
product."
SECTION
3-4.
Said Title 48 is further
amended by revising Code Section 48-8-3, relating to exemptions from sales and
use tax, as follows:
"48-8-3.
The
sales and use taxes levied or imposed by this article shall not apply
to:
(1)
Sales to the United States government, this state, any county or municipality of
this state, or any bona fide department of such governments when paid for
directly to the seller by warrant on appropriated government funds;
(2)
Transactions in which tangible personal property is furnished by the United
States government or by a county or municipality of this state to any person who
contracts to perform services for the governmental entity for the installation,
repair, or extension of any public water, gas, or sewage system of the
governmental entity when the tangible personal property is installed for general
distribution purposes, notwithstanding Code Section 48-8-63 or any other
provision of this article. No exemption is granted with respect to tangible
personal property installed to serve a particular property site;
(3)
The federal retailers' excise tax if the tax is billed to the consumer
separately from the selling price of the product or from the tax imposed by
Article 1 of Chapter 9 of this title relating to motor fuel taxes;
(4)
Sales by counties and municipalities arising out of their operation of any
public transit facility and sales by public transit authorities or charges by
counties, municipalities, or public transit authorities for the transportation
of passengers upon their
conveyances;.
This paragraph shall stand repealed in its entirety on July 1,
2011;
(5)(A)
Fares and charges, except charges for charter and sightseeing service, collected
by an urban transit system for the transportation of passengers.
(B)
As used in this paragraph, the term:
(i)
'Public transit system primarily urban in character' shall include a transit
system operated by any entity which provides passenger transportation services
by means of motor vehicles having passenger-carrying capacity within or between
standard metropolitan areas and urban areas, as those terms are defined in Code
Section 32-2-3, of this state.
(ii)
'Urban transit system' means a public transit system primarily urban in
character which is operated by a street railroad company or a motor common
carrier, is subject to the jurisdiction of the Public Service Commission, and
whose fares and charges are regulated by the Public Service Commission, or is
operated pursuant to a franchise contract with a municipality of this state so
that its fares and charges are regulated by or are subject to the approval of
the municipality. An urban transit system certificate shall be issued by the
Public Service Commission, or by the municipality which has regulatory
authority, upon an affirmative showing that the applicant operates an urban
transit system. The certificate shall be obtained and filed with the
commissioner and shall continue in effect so long as the holder of such
certificate qualifies as an urban transit system. Any urban transit system
certificate granted prior to January 1, 2002, shall be deemed valid as of the
date it was
issued;.
(C)
This paragraph shall stand repealed in its entirety on July 1,
2011;
(6)
Sales to any hospital authority created by Article 4 of Chapter 7 of Title
31. This
paragraph shall stand repealed in its entirety on July 1,
2011;
(6.1)
Sales to any housing authority created by Article 1 of Chapter 3 of Title 8, the
'Housing Authorities
Law.'
This paragraph
shall stand repealed in its entirety on July 1,
2011;
(6.2)
Sales to any local government authority created on or after January 1, 1980, by
local law, which authority has as its principal purpose or one of its principal
purposes the construction, ownership, or operation of a coliseum and related
facilities to be used for athletic contests, games, meetings, trade fairs,
expositions, political conventions, agricultural events, theatrical and musical
performances, conventions, or other public entertainments or any combination of
such purposes.
This paragraph shall stand repealed in its entirety on July 1,
2011;
(6.3)
Sales to any agricultural commodities commission created by and regulated
pursuant to Chapter 8 of Title 2;
(7)
Sales of tangible personal property and services to a nonprofit licensed nursing
home, nonprofit licensed in-patient hospice, or a nonprofit general or mental
hospital used exclusively by such nursing home, in-patient hospice, or hospital
in performing a general nursing home, in-patient hospice, hospital, or mental
hospital treatment function in this state when such nursing home, in-patient
hospice, or hospital is a tax exempt organization under the Internal Revenue
Code and obtains an exemption determination letter from the
commissioner.
This paragraph shall stand repealed in its entirety on July 1,
2012;
(7.05)(A)
For the period commencing on July 1, 2008, and ending on June 30, 2010, sales of
tangible personal property to a nonprofit health center in this state which has
been established under the authority of and is receiving funds pursuant to the
United States Public Health Service Act, 42 U. S. C. Section 254b if such health
clinic obtains an exemption determination letter from the
commissioner.
(B)(i)
For the purposes of this paragraph, 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 Article 2, 2A, 3, or 4 of this
chapter.
(ii)
The exemption provided for in subparagraph (A) of this paragraph shall not apply
to any local sales and use tax levied or imposed at any time.
(7.1)
Sales of tangible personal property and services to a nonprofit organization,
the primary function of which is the provision of services to mentally retarded
persons, when such organization is a tax exempt organization under the Internal
Revenue Code and obtains an exemption determination letter from the
commissioner.
This paragraph shall stand repealed in its entirety on July 1,
2012;
(7.2)
Sales of tangible personal property or services to any chapter of the Georgia
State Society of the Daughters of the American Revolution which is tax exempt
under Section 501(c)(3) of the Internal Revenue Code and obtains an exemption
determination letter from the
commissioner.
This paragraph shall stand repealed in its entirety on July 1,
2014;
(7.3)
For the period commencing July 1, 2008, and ending June 30, 2010, sales of
tangible personal property and services to a nonprofit volunteer health clinic
which primarily treats indigent persons with incomes below 200 percent of the
federal poverty level and which property and services are used exclusively by
such volunteer health clinic in performing a general treatment function in this
state when such volunteer health clinic is a tax exempt organization under the
Internal Revenue Code and obtains an exemption determination letter from the
commissioner;
(8)
Sales of tangible personal property and services to the University System of
Georgia and its educational
units. This
paragraph shall stand repealed in its entirety on July 1,
2013;
(9)
Sales of tangible personal property and services to be used exclusively for
educational purposes by those private colleges and universities in this state
whose academic credits are accepted as equivalents by the University System of
Georgia and its educational
units. This
paragraph shall stand repealed in its entirety on July 1,
2013;
(10)
Sales of tangible personal property and services to be used exclusively for
educational purposes by those bona fide private elementary and secondary schools
which have been approved by the commissioner as organizations eligible to
receive tax deductible contributions if application for exemption is made to the
department and proof of the exemption is
established.
This paragraph shall stand repealed in its entirety on July 1,
2013;
(11)
Sales of tangible personal property or services to, and the purchase of tangible
personal property or services by, any educational or cultural institute
which:
(A)
Is tax exempt under Section 501(c)(3) of the Internal Revenue Code;
(B)
Furnishes at least 50 percent of its programs through universities and other
institutions of higher education in support of their educational
programs;
(C)
Is paid for by government funds of a foreign country; and
(D)
Is an instrumentality, agency, department, or branch of a foreign government
operating through a permanent location in this
state.
This
paragraph shall stand repealed in its entirety on July 1,
2014;
(12)
School lunches sold and served to pupils and employees of public
schools. This
paragraph shall stand repealed in its entirety on July 1,
2013;
(13)
Sales of prepared food and food and food ingredients consumed by pupils and
employees of bona fide private elementary and secondary schools which have been
approved by the commissioner as organizations eligible to receive tax deductible
contributions when application for exemption is made to the department and proof
of the exemption is
established.
This paragraph shall stand repealed in its entirety on July 1,
2013;
(14)
Sales of objects of art and of anthropological, archeological, geological,
horticultural, or zoological objects or artifacts and other similar tangible
personal property to or for the use by any museum or organization which is tax
exempt under Section 501(c)(3) of the Internal Revenue Code of such tangible
personal property for display or exhibition in a museum within this state when
the museum is open to the public and has been approved by the commissioner as an
organization eligible to receive tax deductible
contributions.
This paragraph shall stand repealed in its entirety on
July 1, 2014;
(15)
Sales:
(A)
Of any religious paper in this state when the paper is owned and operated by
religious institutions or denominations and no part of the net profit from the
operation of the institution or denomination inures to the benefit of any
private person;
(B)
By religious institutions or denominations when:
(i)
The sale results from a specific charitable fundraising activity;
(ii)
The number of days upon which the fundraising activity occurs does not exceed 30
in any calendar year;
(iii)
No part of the gross sales or net profits from the sales inures to the benefit
of any private person; and
(iv)
The gross sales or net profits from the sales are used for the purely charitable
purposes of:
(I)
Relief to the aged;
(II)
Church related youth activities;
(III)
Religious instruction or worship; or
(IV)
Construction or repair of church buildings or
facilities.
This
paragraph shall stand repealed in its entirety on July 1,
2014;
(15.1)(16)
Sales of pipe organs or steeple bells to any church which is qualified as an
exempt religious organization under Section 501(c)(3) of the Internal Revenue
Code of 1986, as
amended. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(16)
The sale or use of Holy Bibles, testaments, and similar books commonly
recognized as being Holy Scripture regardless of by or to whom
sold;
(17)
The sale of fuel and supplies for use or consumption aboard ships plying the
high seas either in intercoastal trade between ports in this state and ports in
other states of the United States or its possessions or in foreign commerce
between ports in this state and ports of foreign countries;
(18)
Charges made for the transportation of tangible personal property including, but
not limited to, charges for accessorial services such as refrigeration,
switching, storage, and demurrage made in connection with interstate and
intrastate transportation of the property;
(19)
All tangible personal property purchased outside of this state by persons who at
the time of purchase are not domiciled in this state but who subsequently become
domiciled in this state and bring the property into this state for the first
time as a result of the change of domicile, if the property is not brought into
this state for use in a trade, business, or profession;
(20)
The sale of water delivered to consumers through water mains, lines, or
pipes. This
paragraph shall stand repealed in its entirety on July 1,
2011;
(21)
Sales, transfers, or exchanges of tangible personal property made as a result of
a business reorganization when the owners, partners, or stockholders of the
business being reorganized maintain the same proportionate interest or share in
the newly formed business reorganization;
(22)
Professional,
or
insurance,
or personal service transactions which
involve sales as inconsequential elements for which no separate charges are
made;
(23)
Fees or charges for services rendered by repairmen for which a separate charge
is made. This
paragraph shall stand repealed in its entirety on January 1,
2012;
(24)
The rental of videotape or motion picture film to any person who charges an
admission fee to view such film or videotape;
(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)(30)
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;
(30)(31)
The sale of a vehicle to a service-connected disabled veteran when the veteran
received a grant from the United States Department of Veterans Affairs to
purchase and specially adapt the vehicle to his
disability.
This paragraph shall stand repealed in its entirety on July 1,
2012;
(31)(32)
The sale of tangible personal property manufactured
or
assembled in this state for export when
delivery is taken outside this state;
(32)(33)
Aircraft, watercraft, motor vehicles, and other transportation equipment
manufactured
or
assembled in this state when sold by the
manufacturer
or
assembler for use exclusively outside this
state and when possession is taken from the manufacturer
or
assembler by the purchaser within this
state for the sole purpose of removing the property from this state under its
own power when the equipment does not lend itself more reasonably to removal by
other means;
(33)(A)(34)(A)
The sale of aircraft, watercraft, railroad locomotives and rolling stock, motor
vehicles, and major components of each, which will be used principally to cross
the borders of this state in the service of transporting passengers or cargo by
common carriers and by carriers who hold common carrier and contract carrier
authority in interstate or foreign commerce under authority granted by the
United States government. Replacement parts installed by carriers in such
aircraft, watercraft, railroad locomotives and rolling stock, and motor vehicles
which become an integral part of the craft, equipment, or vehicle shall also be
exempt from all taxes under this article;
(B)
In lieu of any tax under this article which would apply to the purchase, sale,
use, storage, or consumption of the tangible personal property described in this
paragraph but for this exemption, the tax under this article shall apply with
respect to all fuel purchased and delivered within this state by or to any
common carrier and with respect to all fuel purchased outside this state and
stored in this state irrespective, in either case, of the place of its
subsequent use;
(33.1)(A)(35)(A)
The sale or use of jet fuel to or by a qualifying airline at a qualifying
airport, to the extent provided in subparagraphs (B), (C), and (D) of this
paragraph.
(B)
The sale or use of jet fuel to or by a qualifying airline at a qualifying
airport shall be exempt from the first 1.80 percent of the 4 percent state sales
and use tax imposed by this chapter and shall be subject to the remaining 2.20
percent of the 4 percent state sales and use tax imposed by this
chapter.
(C)
The sale or use of jet fuel to or by a qualifying airline at a qualifying
airport shall also be exempt from the sales or use tax levied and imposed as
authorized pursuant to Part 1 of Article 3 of this chapter.
(D)
Except as provided for in subparagraph (C) of this paragraph, this exemption
shall not apply to any other local sales and use tax levied or imposed at
anytime
any
time in any area consisting of less than
the entire state, however authorized, including, but not limited to, such taxes
authorized by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga.
L. 1965, p. 2243), as amended, the 'Metropolitan Atlanta Rapid Transit Authority
Act of 1965,' or such taxes as authorized by or pursuant to Part 2 of Article 3
or Article 2, 2A, or 4 of this chapter.
(E)
For purposes of this paragraph, a 'qualifying airline' shall mean any person
which is authorized by the Federal Aviation Administration or appropriate agency
of the United States to operate as an air carrier under an air carrier operating
certificate and which provides regularly scheduled flights for the
transportation of passengers or cargo for hire.
(F)
For purposes of this paragraph, a 'qualifying airport' shall mean any airport in
the state that has had more than 750,000 takeoffs and landings during a calendar
year.
(G)
The commissioner shall adopt rules and regulations to carry out the provisions
of this paragraph.
(H)
The exemption provided for in this paragraph shall apply only as to transactions
occurring on or after July 1, 2009, and prior to July 1,
2011
2014. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(34)(36)
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 July 1, 2011;
(34.1)(A)(37)(A)
The sale of primary material handling equipment which is used for the handling
and movement of tangible personal property and racking systems used for the
conveyance and storage of tangible personal property in a warehouse or
distribution facility located in this state when such equipment is either part
of an expansion worth $5 million or more of an existing warehouse or
distribution facility or part of the construction of a new warehouse or
distribution facility where the total value of all real and personal property
purchased or acquired by the taxpayer for use in the warehouse or distribution
facility is worth $5 million or more.
(B)
In order to qualify for the exemption provided for in subparagraph (A) of this
paragraph, a warehouse or distribution facility may not make retail sales from
such facility to the general public if the total of the retail sales equals or
exceeds 15 percent of the total revenues of the warehouse or distribution
facility. If retail sales are made to the general public by a warehouse or
distribution facility and at any time the total of the retail sales equals or
exceeds 15 percent of the total revenues of the facility, the taxpayer will be
disqualified from receiving such exemption as of the date such 15 percent
limitation is met or exceeded. The taxpayer may be required to repay any tax
benefits received under subparagraph (A) of this paragraph on or after that date
plus penalty and interest as may be allowed by law;
(34.2)(A)(38)(A)
The sale or use of machinery or equipment, or both, which is used in the
remanufacture of aircraft engines or aircraft engine parts or components in a
remanufacturing facility located in this state. For purposes of this paragraph,
'remanufacture of aircraft engines or aircraft engine parts or components' means
the substantial overhauling or rebuilding of aircraft engines or aircraft engine
parts or components.
(B)
Any person making a sale of machinery or equipment, or both, for the
remanufacture of aircraft engines or aircraft engine parts or components shall
collect the tax imposed on the sale by this article unless the purchaser
furnishes a certificate issued by the commissioner certifying that the purchaser
is entitled to purchase the machinery or equipment without paying the
tax;
(34.3)(A)(39)(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 July 1,
2011;
(34.4)(A)(40)(A)
Notwithstanding any provision of Code Section 48-8-63 to the contrary, sales of
tangible personal property to, or used in or for the construction of, an
alternative fuel facility primarily dedicated to the production and processing
of ethanol, biodiesel, butanol, and their by-products, when such fuels are
derived from biomass materials such as agricultural products, or from animal
fats, or the wastes of such products or fats.
(B)
As used in this paragraph, the term:
(i)
'Alternative fuel facility' means any facility located in this state which is
primarily dedicated to the production and processing of ethanol, biodiesel,
butanol, and their by-products for sale.
(ii)
'Used in or for the construction' means any tangible personal property
incorporated into a new alternative fuel facility that loses its character of
tangible personal property. Such term does not mean tangible personal property
that is temporary in nature, leased or rented, tools, or other items not
incorporated into the facility.
(C)
Any person making a sale of tangible personal property for the purpose specified
in this paragraph shall collect the tax imposed on this sale unless the
purchaser furnishes an exemption certificate issued by the commissioner
certifying that the purchaser is entitled to purchase the tangible personal
property without payment of tax.
(D)
Any corporation, partnership, limited liability company, or any other entity or
person that qualifies for this exemption must conduct at least a majority of its
business with entities or persons with which it has no affiliation.
(E)
The exemption provided for under subparagraph (A) of this paragraph shall not
apply to sales of tangible personal property that occur after the production and
processing of biodiesel, ethanol, butanol, and their by-products has begun at
the alternative fuel facility.
(F)
The exemption provided for under subparagraph (A) of this paragraph shall apply
only to sales occurring during the period July 1, 2007, through June 30,
2012.
(G)
The commissioner shall promulgate any rules and regulations necessary to
implement and administer this
paragraph.
(H)
This paragraph shall stand repealed in its entirety on July 1,
2012;
(35)(A)(41)(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 July 1,
2011;
(36)(A)(42)(A)
The sale of machinery and equipment and any repair, replacement, or component
parts for such machinery and equipment which is used for the primary purpose of
reducing or eliminating air or water
pollution;.
(B)
Any person making a sale of machinery and equipment or repair, replacement, or
component parts for such machinery and equipment for the purposes specified in
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 and
equipment or repair, replacement, or component parts for such machinery and
equipment without paying the
tax.
(C)
This paragraph shall stand repealed in its entirety on July 1,
2014;
(36.1)(A)(43)(A)
The sale of machinery and equipment which is incorporated into any qualified
water conservation facility and used for water conservation.
(B)
As used in this paragraph, the term:
(i)
'Qualified water conservation facility' means any facility, including buildings,
and any machinery and equipment used in the water conservation process resulting
in a minimum 10 percent reduction in permit by relinquishment or transfer of
annual permitted water usage from existing permitted ground-water sources. In
addition, such facility shall have been certified pursuant to rules and
regulations promulgated by the Department of Natural Resources as necessary to
promote its ground-water management efforts for areas with a multiyear record of
consumption at, near, or above sustainable use signaled by declines in
ground-water pressure, threats of salt-water intrusion, need to develop
alternate sources to accommodate economic growth and development, or any other
indication of growing inadequacy of the existing resource.
(ii)
'Water conservation' means a minimum 10 percent reduction resulting in the
relinquishment of transfer of annual permitted water usage from existing
ground-water sources due to increased manufacturing process efficiencies or
recycling of manufacturing process water which results in reduced ground-water
usage, or a change from a ground-water source to a surface-water source or an
alternate source.
(C)
Any person making a sale of machinery and equipment for the purposes specified
in this paragraph shall collect the tax imposed on this sale unless the
purchaser furnishes such person with a certificate issued by the commissioner
certifying that the purchaser is entitled to purchase the machinery and
equipment without paying the
tax;.
(D)
This paragraph shall stand repealed in its entirety on July 1,
2014;
(37)(44)
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 July 1,
2011;
(38)(45)
Sales of tangible personal property and fees and charges for services by the
Rock Eagle 4-H
Center. This
paragraph shall stand repealed in its entirety on July 1,
2013;
(39)(46)
Sales by any public or private school containing any combination of grades
kindergarten through 12 of tangible personal property, concessions, or tickets
for admission to a school event or function, provided that the net proceeds from
such sales are used solely for the benefit of such public or private school or
its students.
This paragraph shall stand repealed in its entirety on July 1,
2013;
(39.1)(47)
The use of cargo containers and their related chassis which are owned by or
leased to persons engaged in the international shipment of cargo by ocean-going
vessels which containers and chassis are directly used for the storage and
shipment of tangible personal property in or through this state in intrastate or
interstate commerce;
(40)(48)
The sale of major components and repair parts installed in military craft,
vehicles, and missiles;
(41)(A)(49)(A)
Sales of tangible personal property and services to a child-caring institution
as defined in paragraph (1) of Code Section 49-5-3, as amended; a child-placing
agency as defined in paragraph (2) of Code Section 49-5-3, as amended; or a
maternity home as defined in paragraph (14) of Code Section 49-5-3, as amended,
when such institution, agency, or home is engaged primarily in providing child
services and is a nonprofit, tax-exempt organization under Section 501(c)(3) of
the Internal Revenue Code and obtains an exemption determination letter from the
commissioner.;
and
(B)
Sales by an institution, agency, or home as described in subparagraph (A) of
this paragraph when:
(i)
The sale results from a specific charitable fundraising activity;
(ii)
The number of days upon which the fundraising activity occurs does not exceed 30
in any calendar year;
(iii)
No part of the gross sales or net profits from the sales inures to the benefit
of any private person; and
(iv)
The gross sales or net profits from the sales are used purely for charitable
purposes in providing child
services.
(C)
This paragraph shall stand repealed in its entirety on July 1,
2014;
(42)(50)
The use by, or lease or rental of tangible personal property to, a person who
acquires the property from another person where both persons are under 100
percent common ownership and where the person who furnishes, leases, or rents
the property has:
(A)
Previously paid sales or use tax on the property; or
(B)
Been credited under Code Section 48-8-42 with paying a sales or use tax on the
property so furnished, leased, or rented, and the tax credited is based upon the
fair rental or lease value of the property;
(43)(51)
Gross revenues generated from all bona fide coin operated amusement machines
which vend or dispense music or are operated for skill, amusement,
entertainment, or pleasure which are in commercial use and are provided to the
public for play which will require a permit fee under Chapter 17 of this
title;
(44)(52)
Sales of motor vehicles, as defined in Code Section 48-5-440, to nonresident
purchasers for immediate transportation to and use in another state in which the
vehicles are required to be registered, provided the seller obtains from the
purchaser and retains an affidavit stating the name and address of the
purchaser, the state in which the vehicle will be registered and operated, the
make, model, and serial number of the vehicle, and such other information as the
commissioner may
require. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(45)(53)
The sale, use, storage, or consumption of paper stock which is manufactured in
this state into catalogs intended to be delivered outside this state for use
outside this state;
(46)(54)
Sales to blood banks having a nonprofit status pursuant to Section 501(c)(3) of
the Internal Revenue
Code. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(47)(A)(i)(55)(A)(i)
The sale or use of controlled substances and drugs which are lawfully dispensed
by prescription for the treatment of natural persons, and sales of prescription
eyeglasses and contact lenses including, without limitation, prescription
contact lenses distributed by the manufacturer to licensed dispensers as free
samples not intended for resale and labeled as such.
(ii)
The sale or use of those controlled substances and drugs lawfully dispensable by
prescription for the treatment of natural persons which are dispensed or
distributed without charge to physicians, dentists, clinics, hospitals, or any
other person or entity located in Georgia by a pharmaceutical manufacturer or
distributor; and the use of controlled substances, drugs, new animal drugs, and
medical devices lawfully dispensed or distributed without charge solely for the
purposes of a clinical trial approved by either the United States Food and Drug
Administration or by an institutional review board.
(B)
For purposes of this paragraph, the term:
(i)
'Controlled substance' means the same as provided in Code Section
16-13-1.
(ii)
'Drug' means the same as provided in Code Section 48-8-2.
(iii)
'Institutional review board' means an institutional review board as provided in
21 C.F.R. Section 56.
(iv)
'Medical device' means a device as defined in
subsection
(h) of 21 U.S.C. Section
321(h).
(v)
'New animal drug' means a new animal drug as defined in
subsection
(v) of 21 U.S.C. Section
321(v).
(C)
The commissioner is authorized to prescribe forms and promulgate rules and
regulations deemed necessary in order to administer and effectuate this
paragraph.
(D)
This paragraph shall stand repealed in its entirety on July 1,
2012;
(48)(56)
Sales to licensed commercial fishermen of bait for taking crabs and the use by
licensed commercial fishermen of bait for taking crabs;
(49)(57)
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;
(49.1)(A)(58)(A)
From July 1, 2008, until June 30, 2010, the sale or use of liquefied petroleum
gas or other fuel used in a structure in which swine are raised.
(B)(i)
For the purposes of this paragraph, 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 Article 2 of this chapter; by
or pursuant to Article 2A of this chapter; by or pursuant to Part 1 of Article 3
of this chapter; by or pursuant to Part 2 of Article 3 of this chapter; and by
or pursuant to Article 4 of this chapter.
(ii)
The exemption provided for in subparagraph (A) of this paragraph shall not apply
to any local sales and use tax levied or imposed at any
time.
(C)
This paragraph shall stand repealed in its entirety on January 1,
2012;
(50)(59)
Sales of blood measuring devices, other monitoring equipment, or insulin
delivery systems used exclusively by diabetics and sales of insulin, insulin
syringes, and blood glucose level measuring strips dispensed without a
prescription.
This paragraph shall stand repealed in its entirety on July 1,
2012;
(51)(60)
Sales of oxygen prescribed by a licensed
physician.
This paragraph shall stand repealed in its entirety on July 1,
2012;
(52)
Reserved;
(53)(61)
Sales transactions for which food stamps or WIC coupons are used as the medium
of exchange;
(54)(62)
The sale or use of any durable medical equipment or prosthetic device prescribed
by a
physician.
This paragraph shall stand repealed in its entirety on July 1,
2012;
(55)(63)
The sale of lottery tickets authorized by Chapter 27 of Title
50. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(56)(64)
Sales by any parent-teacher organization qualified as a tax exempt organization
under Section 501(c)(3) of the Internal Revenue
Code. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(57)(A)(65)(A)
The sale of food and food ingredients, to the extent provided in subparagraph
(B) of this paragraph.
(B)
For the purposes of this paragraph, 'food and food ingredients' shall not
include prepared food, alcoholic beverages, or tobacco.
(C)(i)
The exemption provided for in this paragraph shall not apply to any local sales
and use tax levied or imposed at any time.
(ii)
For the purposes of this subparagraph, 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';
or
by or pursuant to any article of this chapter.
(D)
The commissioner shall adopt rules and regulations to carry out the provisions
of this
paragraph.
(E)
This paragraph shall stand repealed in its entirety on July 1,
2011;
(57.1)(A)
From July 1, 2006, until June 30, 2010, sales of food and food ingredients to a
qualified food bank.
(B)
As used in this paragraph, the term 'qualified food bank' means any food bank
which is exempt from taxation under Section 501(c)(3) of the Internal Revenue
Code and which is operated primarily for the purpose of providing hunger relief
to low income persons residing in this state.
(C)
The commissioner is authorized to promulgate rules and regulations deemed
necessary in order to administer and effectuate this paragraph;
(57.2)(A)(66)(A)
For the period commencing July 1, 2007, and ending on June 30, 2011, the use of
prepared food which is donated to a qualified nonprofit agency and which
are
is
used for hunger relief purposes.
(B)
As used in this paragraph, the term 'qualified nonprofit agency' means any
entity which is exempt from taxation under Section 501(c)(3) of the Internal
Revenue Code and which provides hunger relief.
(C)
The commissioner is authorized to promulgate rules and regulations deemed
necessary in order to administer and effectuate this
paragraph.
(D)
This paragraph shall stand repealed in its entirety on July 1,
2011;
(57.3)(A)(67)(A)
For the period commencing July 1, 2007, and ending on June 30, 2011, the use of
prepared food which is donated following a natural disaster and which
are
is
used for disaster relief purposes.
(B)
The commissioner is authorized to promulgate rules and regulations deemed
necessary in order to administer and effectuate this
paragraph.
(C)
This paragraph shall stand repealed in its entirety on July 1,
2011;
(58)
Repealed;
(59)(A)(68)(A)
Sales of food and food ingredients to and by member councils of the Girl Scouts
of the U.S.A. in connection with fundraising activities of any such
council.
(B)
Sales of food and food ingredients to and by member councils of the Boy Scouts
of America in connection with fundraising activities of any such
council.
(C)
This paragraph shall stand repealed in its entirety on July 1,
2014;
(60)(69)
The sale of machinery and equipment which is incorporated into any
telecommunications manufacturing facility and used for the primary purpose of
improving air quality in advanced technology clean rooms of Class 100,000 or
less, provided such clean rooms are used directly in the manufacture of tangible
personal
property. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(61)(70)
Printed advertising inserts or advertising supplements distributed in this state
in or as part of any newspaper for resale;
(62)(71)
The sale of grass sod of all kinds and character when such sod is in the
original state of production or condition of preparation for sale. The
exemption provided for by this paragraph shall only apply to a sale made by the
sod producer, a member of such producer's family, or an employee of such
producer. The exemption provided for by this paragraph shall not apply to sales
of grass sod by a person engaged in the business of selling plants, seedlings,
nursery stock, or floral products;
(63)(72)
The sale or use of funeral merchandise, outer burial containers, and cemetery
markers as defined in Code Section 43-18-1, which are purchased with funds
received from the Georgia Crime Victims Emergency Fund under Chapter 15 of Title
17. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(64)(73)
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;
(65)(A)(74)(A)
Sales of dyed diesel fuel exclusively used to operate vessels or boats in the
commercial fishing trade by licensed commercial fishermen.
(B)
Any person making a sale of dyed diesel fuel for the purposes specified in this
paragraph shall collect the tax imposed on the sale by this article unless the
purchaser furnishes such person with a certificate issued by the commissioner
certifying that the purchaser is entitled to purchase the dyed diesel fuel
without paying the tax;
(66)(75)
Sales of gold, silver, or platinum bullion or any combination of such bullion,
provided that the dealer maintains proper documentation, as specified by rule or
regulation to be promulgated by the department, to identify each sale or portion
of a sale which is exempt under this paragraph;
(67)(76)
Sales of coins or currency or a combination of coins and currency, provided that
the dealer maintains proper documentation, as specified by rule or regulation to
be promulgated by the department, to identify each sale or portion of a sale
which is exempt under this paragraph;
(68)(A)(77)(A)
The sale or lease of computer equipment to be incorporated into a facility or
facilities in this state to any high-technology company classified under North
American Industrial Classification System code 51121, 51331, 51333, 51334,
51421, 52232, 54133, 54171, 54172, 334413, 334611, 513321, 513322, 514191,
541511, 541512, 541513, or 541519 where such sale of computer equipment for any
calendar year exceeds $15 million or, in the event of a lease of such computer
equipment, the fair market value of such leased computer equipment for any
calendar year exceeds $15 million.
(B)
Any person making a sale or lease of computer equipment to a high-technology
company as specified in subparagraph (A) of this paragraph shall collect the tax
imposed on the sale by this article unless the purchaser furnishes such seller
with a certificate issued by the commissioner certifying that the purchaser is
entitled to purchase the computer equipment without paying the tax. As a
condition precedent to the issuance of the certificate, the commissioner, at
such 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.
(C)(i)
As used in this paragraph, the term 'computer equipment' means any individual
computer or organized assembly of hardware or software, such as a server farm,
mainframe or midrange computer, mainframe driven high-speed print and mailing
devices, and workstations connected to those devices via high bandwidth
connectivity such as a local area network, wide area network, or any other data
transport technology which performs one of the following functions: storage or
management of production data, hosting of production applications, hosting of
application systems development activities, or hosting of applications systems
testing.
(ii)
The term shall not include:
(I)
Telephone central office equipment or other voice data transport technology;
or
(II)
Equipment with imbedded computer hardware or software which is primarily used
for training, product testing, or in a manufacturing process.
(D)
Any corporation, partnership, limited liability company, or any other similar
entity which qualifies for the exemption and is affiliated in any manner with a
nonqualified corporation, partnership, limited liability company, or any other
similar entity must conduct at least a majority of its business with entities
with which it has no affiliation;
(69)(78)
The sale of machinery, equipment, and materials incorporated into and used in
the construction or operation of a clean room of Class 100 or less in this
state, not to include the building or any permanent, nonremovable component of
the building that houses such clean room, provided that such clean room is used
directly in the manufacture of tangible personal property in this
state. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(70)(A)(79)(A)
For the purposes of this paragraph, 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 Article 2 of this chapter; by
or pursuant to Article 2A of this chapter; by or pursuant to Part 1 of Article 3
of this chapter; or by or pursuant to Part 2 of Article 3 of this
chapter.
(B)
The sale of natural or artificial gas used directly in the production of
electricity which is subsequently sold.
(C)
The exemption provided for in subparagraph (B) of this paragraph shall not apply
to any local sales and use tax levied or imposed at any time.
(D)
The commissioner shall adopt rules and regulations to carry out the provisions
of this
paragraph.
(E)
This paragraph shall stand repealed in its entirety on July 1,
2011;
(70.1)(A)(80)(A)
For the period commencing July 1, 2008, and concluding on December 31, 2010, the
sale of natural or artificial gas, No. 2 fuel oil, No. 6 fuel oil, propane,
petroleum coke, and coal used directly or indirectly in the manufacture or
processing, in a manufacturing plant located in this state, of tangible personal
property primarily for resale, and the fuel cost recovery component of retail
electric rates used directly or indirectly in the manufacture or processing, in
a manufacturing plant located in this state, of tangible personal property
primarily for resale.
(B)
The exemption provided for in subparagraph (A) of this paragraph shall not apply
to the first $7.60 per decatherm of the sales price or cost price of natural or
artificial gas, the first $2.48 per gallon of the sales price or cost price of
No. 2 fuel oil, the first $1.72 per gallon of the sales price or cost price of
No. 6 fuel oil, the first $1.44 per gallon of the sales price or cost price of
propane, the first $57.90 per ton of petroleum coke, the first $57.90 per ton of
coal, or the first 3.44¢ per kilowatt hour of the fuel cost recovery
component of retail electricity rates whether such fuel recovery charges are
charged separately or are embedded in such electric rates. Dealers with such
embedded rates may exempt from the electricity sales upon which the sales tax is
calculated no more than the amount, if any, by which the fuel cost recovery
charge approved by the Georgia Public Service Commission for transmission
customers of electric utilities regulated by the Georgia Public Service
Commission exceeds 3.44¢ per kilowatt hour.
(C)(i)
For the purposes of this paragraph, 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'; or by or pursuant to Article 2, 2A, 3, or 4 of
this chapter.
(ii)
The exemption provided for in subparagraph (A) of this paragraph shall not apply
to any local sales and use tax levied or imposed at any time.
(D)
Any person making a sale of items qualifying for exemption under subparagraph
(A) of this paragraph shall be relieved of the burden of proving such
qualification if the person receives in good faith a certificate from the
purchaser certifying that the purchase is exempt under this
paragraph.
(E)
Any person who qualifies for this exemption shall notify and certify to the
person making the qualified sale that this exemption is applicable to the
sale.
(F)
This paragraph shall stand repealed in its entirety on July 1,
2011;
(71)(81)
Sales to or by any nonprofit organization which has as its primary purpose the
raising of funds for books, materials, and programs for public libraries if such
organization qualifies as a tax-exempt organization under Section 501(c)(3) of
the Internal Revenue
Code. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(72)(82)
The sale or use of all mobility enhancing equipment prescribed by a
physician;
(73)(A)(83)(A)
The sale or lease of production equipment or production services for use in this
state by a certified film producer or certified film production company for
qualified production activities.
(B)
As used in this paragraph, the term:
(i)
'Film producer' means any person engaged in the business of organizing and
supervising qualified production activities.
(ii)
'Film production company' means any company that employs one or more film
producers and whose goal is to engage in film production activity.
(iii)
'Production equipment' means items purchased or leased for use exclusively in
qualified production activities in Georgia, including, but not limited to,
cameras, camera supplies, camera accessories, lighting equipment, cables, wires,
generators, motion picture film and videotape stock, cranes, booms, dollies, and
teleprompters.
(iv)
'Production services' means services purchased for use exclusively in qualified
production activities in Georgia, including, but not limited to, digital or tape
editing, film processing, transfers of film to tape or digital format, sound
mixing, computer graphics services, special effects services, animation
services, and script production.
(v)
'Qualified production activities' means the production or post production of
film or video projects such as feature films, series, pilots, movies for
television, commercials, music videos, or sound recordings used in feature
films, series, pilots, or movies for television, for which the film producer or
film production company will be compensated and which are intended for
nation-wide commercial distribution.
(C)
Any person making a sale of production equipment or production services to a
film producer or film production company as specified in this paragraph shall
collect the tax imposed on the sale by this article unless the purchaser
furnishes such seller with a certificate issued by the commissioner certifying
that the purchaser is entitled to purchase the production equipment or
production services without paying the tax. As a condition precedent to the
issuance of the certificate, film producers and film production companies shall
submit an application to the commissioner for designation as a certified film
producer or certified film production company. Such application shall not be
valid without prior written approval by the Georgia Film and Videotape Office of
the Department of Economic
Development.
(D)
This paragraph shall stand repealed in its entirety on July 1,
2011;
(74)(A)(i)
Except as otherwise provided in divisions (ii) and (iii) of this subparagraph,
the sale or use of digital broadcast equipment sold to, leased to, or used by a
federally licensed commercial or public radio or television broadcast station, a
cable network, or a cable distributor that enables a radio or television
station, cable network, or cable distributor to originate and broadcast or
transmit or to receive and broadcast or transmit digital signals, including, but
not limited to, digital broadcast equipment required by the Federal
Communications Commission.
(ii)
For commercial or public television broadcasters and cable distributors, such
equipment shall be limited to antennas, transmission lines, towers, digital
transmitters, studio to transmitter links, digital routing switchers, character
generators, Advanced Television Systems Committee video encoders and
multiplexers, monitoring facilities, cameras, terminal equipment, tape
recorders, and file servers.
(iii)
For radio broadcasters, such equipment shall be limited to transmitters, digital
audio processors, and diskettes.
(B)
As used in this paragraph, the term:
(i)
'Digital broadcast equipment' means equipment purchased, leased, or used for the
origination or integration of program materials for broadcast over the airwaves
or transmission by cable, satellite, or fiber optic line which uses or produces
an electronic signal where the signal carries data generated, stored, and
processed as strings of binary data. Data transmitted or stored as digital data
consists of strings of positive or nonpositive elements of a transmission
expressed in strings of 0's and 1's which a computer or processor can
reconstruct as an electronic signal.
(ii)
'Federally licensed commercial or public radio or television broadcast station'
means any entity or enterprise, either commercial or noncommercial, which
operates under a license granted by the Federal Communications Commission for
the purpose of free distribution of audio and video services when the
distribution occurs by means of transmission over the public
airwaves.
(C)
The exemption provided under this paragraph shall not apply to any of the
following:
(i)
Repair or replacement parts purchased for the equipment described in this
paragraph;
(ii)
Equipment purchased to replace equipment for which an exemption was previously
claimed and taken under this paragraph;
(iii)
Any equipment purchased after a television station, cable network, or cable
distributor has ceased analog broadcasting, or purchased after November 1, 2004,
whichever occurs first; or
(iv)
Any equipment purchased after a radio station has ceased analog broadcasting, or
purchased after November 1, 2008, whichever occurs first.
(D)
Any person making a sale of digital broadcasting equipment to a federally
licensed commercial or public radio or television broadcast station, cable
network, or cable distributor shall collect the tax imposed on the sale by this
article unless the purchaser furnishes a certificate issued by the commissioner
certifying that the purchaser is entitled to purchase the equipment without
paying the tax;
(75)(A)
The sale of any covered item. The exemption provided by this paragraph shall
apply only to sales occurring during a period commencing at 12:01 A.M. on July
30, 2009, and concluding at 12:00 Midnight on August 2, 2009.
(B)
As used in this paragraph, the term 'covered item' shall mean:
(i)
Articles of clothing and footwear with a sales price of $100.00 or less per
article of clothing or pair of footwear, excluding accessories such as jewelry,
handbags, umbrellas, eyewear, watches, and watchbands;
(ii)
A single purchase, with a sales price $1,500.00 or less, of personal computers
and personal computer related accessories purchased for noncommercial home or
personal use, including personal computer base units and keyboards, personal
digital assistants, handheld computers, monitors, other peripheral devices,
modems for Internet and network access, and nonrecreational software, whether or
not they are to be utilized in association with the personal computer base unit.
Computer and computer related accessories shall not include furniture and any
systems, devices, software, or peripherals designed or intended primarily for
recreational use; and
(iii)
Noncommercial purchases of general school supplies to be utilized in the
classroom or in classroom related activities, such as homework, up to a sales
price of $20.00 per item including pens, pencils, notebooks, paper, book bags,
calculators, dictionaries, thesauruses, and children's books and books listed on
approved school reading lists for pre-kindergarten through twelfth
grade.
(C)
The exemption provided by this paragraph shall not apply to rentals, sales in a
theme park, entertainment complex, public lodging establishment, restaurant, or
airport or to purchases for trade, business, or resale.
(D)
The commissioner shall promulgate any rules and regulations necessary to
implement and administer this paragraph including but not be limited to a list
of those articles and items qualifying for the exemption pursuant to this
paragraph;
(76)
Notwithstanding any provision of Code Section 48-8-63 to the contrary, from June
4, 2003, until January 1, 2007, sales of tangible personal property to, or used
in the construction of, an aquarium owned or operated by an organization which
is exempt from taxation under Section 501(c)(3) of the Internal Revenue
Code;
(77)(84)
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;
(78)(A)(85)(A)
Notwithstanding any provision of Code Section 48-8-63 to the contrary, from May
5, 2004, until September 1, 2011, sales of tangible personal property used in
direct connection with the construction of a new symphony hall facility owned or
operated by an organization which is exempt from taxation under Section
501(c)(3) of the Internal Revenue Code if the aggregate construction cost of
such facility is $200 million or more.
(B)
Any person making a sale of tangible personal property for the purpose specified
in this paragraph shall collect the tax imposed on this sale unless the
purchaser furnishes such person with an exemption determination letter issued by
the commissioner certifying that the purchaser is entitled to purchase the
tangible personal property without paying the
tax.
(C)
This paragraph shall stand repealed in its entirety on September 2,
2011;
(79)(86)
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;
(80)(A)
Notwithstanding any provision of Code Section 48-8-63 to the contrary, from May
17, 2004, until December 31, 2007, sales of tangible personal property to, or
used in or for the new construction of an eligible corporate
attraction.
(B)
As used in this paragraph, the term: 'corporate attraction' means any tourist
attraction facility constructed on or after May 17, 2004, dedicated to the
history and products of a corporation which costs exceeds $50 million, is
greater than 60,000 square feet of space, and has associated facilities,
including but not limited to parking decks and landscaping owned by the same
owner as the eligible corporate attraction.
(C)
Any person making a sale of tangible personal property for the purpose specified
in this paragraph shall collect the tax imposed on this sale unless the
purchaser furnishes such person with an exemption determination letter issued by
the commissioner certifying that the purchaser is entitled to purchase the
tangible personal property without paying the tax;
(81)(87)
The sale of food and food ingredients to a qualifying airline for service to
passengers and crew in the aircraft, whether in flight or on the ground, and the
furnishing without charge of food and food ingredients to qualifying airline
passengers and crew in the aircraft, whether in flight or on the ground; and for
purposes of this paragraph a 'qualifying airline' shall mean any person which is
authorized by the Federal Aviation Administration or appropriate agency of the
United States to operate as an air carrier under an air carrier operating
certificate and which provides regularly scheduled flights for the
transportation of passengers or cargo for hire. As used in this paragraph,
'food and food ingredients' means substances, whether in liquid, concentrated,
solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing
by humans and are consumed for their taste or nutritional value. 'Food and food
ingredients' shall not include alcoholic beverages or
tobacco. This
paragraph shall stand repealed in its entirety on July 1,
2014;
(82)(A)
Purchase of energy efficient products or water efficient products with a sales
price of $1,500.00 or less per product purchased for noncommercial home or
personal use. The exemption provided by this paragraph shall apply only to
sales occurring during a period commencing at 12:01 A.M. on October 1, 2009, and
concluding at 12:00 Midnight on October 4, 2009.
(B)
As used in this paragraph, the term:
(i)
'Energy efficient product' means any energy efficient product for noncommercial
home or personal use consisting of any dishwasher, clothes washer, air
conditioner, ceiling fan, fluorescent light bulb, dehumidifier, programmable
thermostat, refrigerator, door, or window which has been designated by the
United States Environmental Protection Agency and the United States Department
of Energy as meeting or exceeding each such agency's energy saving efficiency
requirements or which have been designated as meeting or exceeding such
requirements under each such agency's Energy Star program.
(ii)
'Water efficient product' means any product used for the conservation or
efficient use of water which has been designated by the United States
Environmental Protection Agency as meeting or exceeding such agency's water
saving efficiency requirements or which has been designated as meeting or
exceeding such requirements under such agency's Water Sense
program.
(C)
The exemption provided for in subparagraph (A) of this paragraph shall not apply
to purchases of energy efficient products or water efficient products purchased
for trade, business, or resale.
(D)
The commissioner shall promulgate any rules and regulations necessary to
implement and administer this paragraph;
(83)(A)(88)(A)
The sale or use of biomass material, including pellets or other fuels derived
from compressed, chipped, or shredded biomass material, utilized in the
production of energy, including without limitation the production of
electricity, steam, or the production of electricity and steam, which is
subsequently sold.
(B)
As used in this paragraph, the term 'biomass material' means organic matter,
excluding fossil fuels, including agricultural crops, plants, trees, wood, wood
wastes and residues, sawmill waste, sawdust, wood chips, bark chips, and forest
thinning, harvesting, or clearing residues; wood waste from pallets or other
wood demolition debris; peanut shells; pecan shells; cotton plants; corn stalks;
and plant matter, including aquatic plants, grasses, stalks, vegetation, and
residues, including hulls, shells, or cellulose containing fibers;
(84)(A)
Notwithstanding any provision of Code Section 48-8-63 to the contrary, from July
1, 2006, until June 30, 2008, sales of tangible personal property used in direct
connection with the construction of a national infantry museum and heritage park
facility.
(B)
As used in this paragraph, the term 'national infantry museum and heritage park
facility' means a museum and park facility which is constructed after July 1,
2006; is dedicated to the history of the American foot soldier; has more than
130,000 square feet of space; and has associated facilities, including, but not
limited to, parking, parade grounds, and memorial areas.
(C)
Any person making a sale of tangible personal property for the purpose specified
in this paragraph shall collect the tax imposed on this sale unless the
purchaser furnishes such person with an exemption determination letter issued by
the commissioner certifying that the purchaser is entitled to purchase the
tangible personal property without paying the tax;
(85)
Repealed;
(86)(89)
For the
period commencing on July 1, 2007, and ending on June 30, 2011,
the
The
sale or use of engines, parts, equipment, and other tangible personal property
used in the maintenance or repair of aircraft when such engines, parts,
equipment, and other tangible personal property are installed on such aircraft
that is being repaired or maintained in this state so long as such aircraft is
not registered in this state;
(87)(A)(90)(A)
Notwithstanding any provision of Code Section 48-8-63 to the contrary, from
July 1, 2009, until June 30, 2011, sales of tangible personal property used for
and in the renovation or expansion of a zoological institution.
(B)
As used in this paragraph, the term 'zoological institution' means a nonprofit
wildlife park, terrestrial institution, or facility which is:
(i)
Open to the public, that exhibits and cares for a collection consisting
primarily of animals other than fish, and has received accreditation from the
Association of Zoos and Aquariums; and
(ii)
Located in this state and owned or operated by an organization which is exempt
from taxation under Section 501(c)(3) of the Internal Revenue Code.
(C)
Any person making a sale of tangible personal property for the purpose specified
in this paragraph shall collect the tax imposed on this sale unless the
purchaser furnishes such person with an exemption determination letter issued by
the commissioner certifying that the purchaser is entitled to purchase the
tangible personal property without paying the
tax.
(D)
This paragraph shall stand repealed in its entirety on July 1,
2011;
(88)(A)(91)(A)
Notwithstanding any provision of Code Section 48-8-63 to the contrary, from
July 1, 2009, until July 30, 2015, sales of tangible personal property to, or
used in or for the new construction of, a civil rights museum.
(B)
As used in this paragraph, the term 'civil rights museum' means a museum which
is constructed after July 1, 2009; is owned or operated by an organization which
is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code;
has more than 70,000 square feet of space; and has associated facilities,
including, but not limited to, special event space and retail
space.
(C)
Any person making a sale of tangible personal property for the purpose specified
in this paragraph shall collect the tax imposed on this sale unless the
purchaser furnishes such person with an exemption determination letter issued by
the commissioner certifying that the purchaser is entitled to purchase the
tangible personal property without paying the tax.
(D)
The exemption provided for under subparagraph (A) of this paragraph shall not
apply to sales of tangible personal property that occur after the museum is
opened to the
public.
(E)
This paragraph shall stand repealed in its entirety on August 1,
2015;
(89)(92)
For the period commencing on July 1, 2009, and ending on June 30, 2011, the sale
or use of an airplane flight simulation training device approved by the Federal
Aviation Administration under Appendices A and B, 14 C.F.R. Part
60;.
This paragraph shall stand repealed in its entirety on July 1,
2011;
(90)(93)
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 July 1,
2011; or
(91)(94)
The sale of prewritten software which has been delivered to the purchaser
electronically or by means of load and leave.
This paragraph
shall stand repealed in its entirety on January 1,
2012."
SECTION
3-5.
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.
(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, storage, or consumption of machinery, equipment, or energy which is
necessary and integral to the manufacture of tangible personal property, and the
sale, use, storage, or the consumption of industrial materials or packaging
supplies.
(c)
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.
(d)
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
3-6.
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; and machinery and equipment used exclusively for irrigation of
agricultural products including, but not limited to, fruit, vegetable, and nut
crops.
(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 used in the processing for market or the
chilling of agricultural products in storage 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, 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 B (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 Agricultural is
authorized to establish an oversight board and direct staff and is authorized to
charge annual fees of not less than $5.00 nor more than $20.00 per year in
accordance with Code Section
2-1-5."
SECTION
3-7.
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 $5.00 nor more than $20.00.
Any fees collected pursuant to this Code section shall be retained pursuant to
the provisions of Code Section
45-12-92.1."
SECTION
3-8.
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)
Every purchaser of tangible personal property, including, but not limited to, a
motor vehicle, watercraft, 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."
SECTION
3-9.
Said Title 48 is further
amended by revising Code Section 48-8-82, relating to imposition of the joint
county and municipal sales and use tax, as follows:
"48-8-82.
When
the imposition of a joint county and municipal sales and use tax is authorized
according to the procedures provided in this article within a special district,
the county whose geographical boundary is conterminous with that of the special
district and each qualified municipality located wholly or partially within the
special district shall levy a joint sales and use tax at the rate of 1 percent.
Except as to rate, the joint tax shall correspond to the tax imposed and
administered by Article 1 of this chapter. No item or transaction which is not
subject to taxation by Article 1 of this chapter shall be subject to the tax
levied pursuant to this article, except that the joint tax provided in this
article shall be applicable to sales of motor fuels as prepaid local tax as that
term is defined in Code Section 48-8-2
and shall
be applicable to the sale of food and food ingredients and alcoholic beverages
only to the extent provided for in paragraph (57) of Code Section
48-8-3."
SECTION
3-10.
Said Title 48 is further
amended by revising subsection (b) of Code Section 48-8-102, relating to the
imposition of the homestead option sales and use tax, as follows:
"(b)
When the imposition of a local sales and use tax is authorized according to the
procedures provided in this article within a special district, the county whose
geographical boundary is conterminous with that of the special district shall
levy a local sales and use tax at the rate of 1 percent. Except as to rate, the
local sales and use tax shall correspond to the tax imposed and administered by
Article 1 of this chapter. No item or transaction which is not subject to
taxation by Article 1 of this chapter shall be subject to the sales and use tax
levied pursuant to this article, except that the sales and use tax provided in
this article shall be applicable to sales of motor fuels as prepaid local tax as
that term is defined in Code Section 48-8-2
and shall
be applicable to the sale of food and food ingredients and alcoholic beverages
only to the extent provided for in paragraph (57) of Code Section
48-8-3."
SECTION
3-11.
Said Title 48 is further
amended by revising subsection (c) of Code Section 48-8-110.1, relating to
imposition of the county special purpose local option sales and use tax, as
follows:
"(c)
Any tax imposed under this part shall be at the rate of 1 percent. Except as to
rate, a tax imposed under this part shall correspond to the tax imposed by
Article 1 of this chapter. No item or transaction which is not subject to
taxation under Article 1 of this chapter shall be subject to a tax imposed under
this part, except that a tax imposed under this part shall apply to sales of
motor fuels as prepaid local tax as that term is defined in Code Section 48-8-2
and shall
be applicable to the sale of food and food ingredients and alcoholic beverages
as provided for in Code Section
48-8-3."
SECTION
3-12.
Said Title 48 is further
amended by revising subparagraph (c)(1)(B) of Code Section 48-8-201, relating to
approval and imposition of the water and sewer projects and costs tax, as
follows:
"(B)
The sale of
food and food ingredients and alcoholic beverages as provided for in Code
Section 48-8-3
Reserved;"
SECTION
3-13.
Said Title 48 is further
amended by revising subsection (d) of Code Section 48-8-241, relating to
creation of special districts for regional transportation funding, as
follows:
"(d)
Any tax imposed under this article shall be at the rate of 1 percent. Except as
to rate, a tax imposed under this article shall correspond to the tax imposed by
Article 1 of this chapter. No item or transaction which is not subject to
taxation under Article 1 of this chapter shall be subject to a tax imposed under
this article, except that a tax imposed under this article shall not apply
to:
(1)
The sale or use of any type of fuel used for off-road heavy-duty equipment,
off-road farm or agricultural equipment, or locomotives;
(2)
The sale or use of jet fuel to or by a qualifying airline at a qualifying
airport;
(3)
The sale or use of fuel that is used for propulsion of motor vehicles on the
public highways. For purposes of this paragraph, a motor vehicle means a
self-propelled vehicle designed for operation or required to be licensed for
operation upon the public highways;
(4)
The sale or use of energy used in the manufacturing or processing of tangible
goods primarily for resale; or
(5)
For motor fuel as defined under paragraph (9) of Code Section 48-9-2 for public
mass transit.
The
tax imposed pursuant to this article shall only be levied on the first $5,000.00
of any transaction involving the sale or lease of a motor vehicle. The tax
imposed pursuant to this article shall be subject to any sales and use tax
exemption which is otherwise imposed by
law;
provided, however, that the tax levied by this article shall be applicable to
the sale of food and food ingredients as provided for in paragraph (57) of Code
Section 48-8-3."
PART
IV
SECTION 4-1.
SECTION 4-1.
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
4-2.
This part of this Act shall
be known and may be cited as the "Georgia Communications Services Tax
Act."
SECTION
4-3.
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."
"(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 program 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
4-4.
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 a semicolon, and by adding new
paragraphs 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; or
(93)
The sale of equipment used in the business of providing communications services.
For purposes of this paragraph, the term 'equipment used in the business of
providing communications services' means all equipment, machinery, software, and
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."
SECTION
4-5.
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
4-6.
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
4-7.
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
4-8.
Said Title 48 is further
amended by repealing subsection (e) of Code Section 48-8-77, relating to
sourcing of local telecommunications services.
SECTION
4-9.
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:
(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
48-7-77 shall include as an option the location associated with the mobile
telephone number.
(c)
All communications services other than telecommunications services shall be
sourced to the customer's place of primary use if located in this
state."
SECTION
4-10.
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 a tax 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
at a rate equal to the sum of the rate at which state sales tax is imposed by
paragraph (1) of subsection (b) of Code Section 48-8-30 plus the maximum
combined rate of sales tax, not to exceed 3 percent, that any county is
authorized to levy under the provisions of Chapter 8 of this title.
(b)
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.
(c)
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.
(d)
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;
and
(6)
Communications services or transactions among entities under 50 percent or
greater, direct or indirect, common control.
(e)
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 tax imposed by this chapter shall not exceed $25,000.00
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. The department may retain a
collection fee, not to exceed 1 percent of the amounts collected, as
reimbursement for the actual cost of collection.
(c)(1)
Of the remaining amounts collected, 4/7 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 other 3/7 shall be distributed monthly within 30 days of the end of each
month by the department to the various municipalities and counties of this state
in accordance with the respective amounts to which each such municipality and
county is entitled under subsection (d) of this Code section. Any overpayment
to a municipality and county or any payment to a municipality and county in
error may be adjusted by the department on any subsequent payment to such
municipality and county.
(d)(1)
The first 14.378 percent of the total amount available under paragraph (2) of
subsection (c) of this Code section shall be granted to the counties based
on the ratio of the population of each county to the total population of this
state, using the most recent annual estimates of the population in Georgia as
prepared by the United States census. The amount granted to each county shall be
distributed by such county to the county governing authority and the political
subdivisions within such county in the same manner as the local option sales
taxes imposed pursuant to Articles 2, 2A, and 3 of Chapter 8 of this title are
distributed.
(2)
After the distributions required by paragraph (1) of this subsection, there
shall be granted to each county an amount equal to the average monthly revenues
that were received from communications services providers during 2010 by such
county and all political subdivisions within such county pursuant to local
option sales taxes prohibited by Code Section 48-18-6, which were validly
imposed and in effect during that time. The amount granted to each county shall
be distributed by such county to the county governing authority and the
political subdivisions in such county in the same manner as the local option
sales taxes imposed pursuant to Articles 2, 2A, and 3 of Chapter 8 of this title
are distributed.
(3)
After the distributions required by paragraphs (1) and (2) of this subsection,
an amount equal to the average monthly revenues that were received from
communications services providers during 2010 by each city and 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,
shall be granted and distributed to each such city and county.
(e)(1)
Each county and city government that received in 2010 such taxes, charges, or
fees prohibited by Code Section 48-18-6 shall report the amounts of such taxes,
charges, or fees received in 2010 to the department by October 31,
2011.
(2)
Each communications services provider that paid in 2010 such taxes, charges, or
fees prohibited by Code Section 48-18-6 shall report the amounts of such taxes,
charges, or fees paid in 2010 to the department by October 31,
2011.
(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.
(f)
The monthly revenues remaining after the distributions required by paragraphs
(1) and (2) of subsection (d) of this Code section shall be granted and
distributed to all cities and counties based on the ratio of population in each
city and the population within the unincorporated areas of each county to 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
census.
(g)
Other than for purposes of collecting and remitting 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 city 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, each county or
municipality 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;
(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 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; and
(F)
Taxes, charges, and fees validly levied and required to be paid by a person in a
capacity other than its capacity as a provider of communications
services.
(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:
(1)
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);
or
(2)
Impose any conditions on the placement, construction, repair, or maintenance of
such facilities, except to the extent necessary to ensure the public health and
safety and to prevent the unreasonable interference with the use of such rights
of way by the traveling
public."
SECTION
4-11.
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
4-12.
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
4-13.
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
4-14.
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
4-15.
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
V
SECTION 5-1.
SECTION 5-1.
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 taxes, by
revising paragraphs (23) and (24) as follows:
"(23)
'Prepaid local tax' means any local sales and use tax which is levied on the
sale or use of motor fuel 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, known
as the 'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; or by or
pursuant to Article 2, 2A, 3, or 4 of this chapter.
Such tax is
based on the same average retail sales price as set forth in subparagraph
(b)(2)(B) of Code Section 48-9-14. Such price shall be used to compute the
prepaid sales tax rate for local jurisdictions by multiplying such retail price
by the applicable rate imposed by the
jurisdiction. The person collecting and
reporting the prepaid local tax for the local jurisdiction shall provide a
schedule as to which jurisdiction these collections relate. This determination
shall be based upon the shipping papers of the conveyance that delivered the
motor fuel to the dealer or consumer in the local jurisdiction. A seller may
rely upon the representation made by the purchaser as to which jurisdiction the
shipment is bound and prepare shipping papers in accordance with those
instructions.
(24)
'Prepaid state tax' means the tax levied under Code Section 48-8-30 in
conjunction with Code Section 48-8-3.1 and Code Section 48-9-14 on the retail
sale of motor fuels for highway use and collected prior to that retail sale.
This tax is
based upon the average retail sales price as set forth in Code Section
48-9-14."
SECTION
5-2.
Said Title 48 is further
amended by revising Code Section 48-8-17, relating to ratification of an
executive order regarding gasoline taxes, as follows:
"48-8-17.
(a)
The General Assembly finds that:
(1)
Motor fuels and aviation gasoline are essential commodities used by Georgians
for transportation;
(2)
The price of gasoline has increased dramatically since the adjournment of the
2008 General Assembly, namely rising in price by approximately 10 percent from
one month ago and almost 24 percent since last year at this time;
(3)
The increases in the cost of gasoline and other motor fuels have and will
continue to impose significant financial burdens on all Georgians and Georgia's
businesses;
(4)
This inflated cost can prevent Georgians from spending on other necessary goods
and business expansion; and
(5)
The significant increase in motor fuel prices will result in a windfall to the
state in the form of surplus state taxes on these commodities.
(b)
The General Assembly of Georgia ratifies the Executive Order of the Governor
dated June 2, 2008, and filed in the official records of the Office of the
Governor as Executive Order 06.02.08.01 which suspended the collection of any
rate of prepaid state taxes as defined in Code Section 48-8-2 to the extent it
differs from the rate levied as of January 1, 2008, pursuant to Code Section
48-9-14 as it applies to sales of motor fuel and aviation gasoline as those
terms are defined in Code Section 48-9-2.
(c)
For the time period commencing on June 2, 2008, as specified in the Executive
Order of the Governor dated June 2, 2008, and filed in the official records of
the Office of the Governor as Executive Order 06.02.08.01, the collection of any
rate of prepaid state taxes as defined in Code Section 48-8-2 to the extent it
differs from the rate levied as of January 1, 2008, pursuant to Code Section
48-9-14 as it applies to sales of motor fuel and aviation gasoline as those
terms are defined in Code Section 48-9-2 shall be governed by the provisions of
this Code section notwithstanding any provisions of Code Section 48-9-14 or any
other law to the contrary.
(d)
The temporary prepaid state tax exemption provided for in this Code section
shall not apply to prepaid local taxes as defined in paragraph (23) of Code
Section 48-8-2.
(e)
The commissioner is authorized to prescribe forms and promulgate rules and
regulations deemed necessary in order to administer and effectuate this Code
section
Reserved."
SECTION
5-3.
Said Title 48 is further
amended by repealing Code Section 48-8-17.1, relating to ratification of an
executive order regarding certain prepaid taxes.
SECTION
5-4.
Said Title 48 is further
amended by revising subsection (k) of Code Section 48-8-30, relating to
imposition of sales and use tax, as follows:
"(k)
The prepaid local tax shall be imposed at the time
the prepaid
state tax is imposed under
subparagraph
(b)(2)(B)
paragraph (2)
of subsection (a) of Code Section
48-9-14."
SECTION
5-5.
Said Title 48 is further
amended by revising paragraph (2) of subsection (b) of Code Section 48-8-49,
relating to dealers' sales and use tax returns, as follows:
"(2)
If the tax liability of a dealer in the preceding calendar year was greater than
$30,000.00 excluding local sales taxes, the dealer shall file a return and remit
to the commissioner not less than 50 percent of the estimated tax liability for
the taxable period on or before the twentieth day of the period. The amount of
the payment of the estimated tax liability shall be credited against the amount
to be due on the return required under subsection (a) of this Code section.
This subsection shall not apply to any dealer whose primary business is the sale
of motor fuels who is remitting prepaid state tax under paragraph (2) of
subsection
(b)
(a)
of Code Section 48-9-14."
SECTION
5-6.
Said Title 48 is further
amended by revising Code Section 48-9-3, relating to motor fuel tax, as
follows:
"48-9-3.
(a)(1)(A)
Prior to January 1, 2012, an
An
excise tax is imposed at the rate of 7 1/2¢ per gallon on distributors who
sell or use motor fuel within this state. It is the intention of the General
Assembly that the legal incidence of the tax be imposed upon the
distributor.
(B)
On or after January 1, 2012, an excise tax is imposed at the rate of 15.1¢
per gallon on distributors who sell or use motor fuel within this state. It is
the intention of the General Assembly that the legal incidence of the tax be
imposed upon the distributor. The rate specified in this subparagraph shall be
adjusted on January 1 of each subsequent year by the commissioner. The
commissioner shall establish and maintain rules governing motor fuel price
adjustments. Such rules shall include the determination and use of an
appropriate national highway construction index, such as the National Highway
Construction Cost Index, or similar national index which reflects the effects of
inflation and deflation on highway construction in this state if the
commissioner determines that such national index accurately reflects such
inflation and deflation.
(2)
In the event any motor fuels which are not commonly sold or measured by the
gallon are used in any motor vehicles on the public highways of this state, the
commissioner may assess, levy, and collect a tax upon such fuels, under such
regulations as the commissioner may promulgate, in accordance with and measured
by the nearest power potential equivalent to that of one gallon of regular grade
gasoline. Any determination by the commissioner of the power potential
equivalent of such motor fuels shall be prima-facie correct. Upon each such
quantity of such fuels used upon the public highways of this state, a tax at the
same rate per gallon imposed on motor fuel under paragraph (1) of this
subsection shall be assessed and collected.
(3)
No county, municipality, or other political subdivision of this state shall levy
any fee, license, or other excise tax on a gallonage basis upon the sale,
purchase, storage, receipt, distribution, use, consumption, or other disposition
of motor fuel. Nothing contained in this
article
Code
section shall be construed to prevent a
county, municipality, or other political subdivision of this state from levying
license fees or taxes upon any business selling motor fuel.
(4)
For purposes of this subsection, and notwithstanding the provisions of paragraph
(2) of this subsection and any provision contained in the National Bureau of
Standards Handbook or any other national standard that may be adopted by law or
regulation, the gallon equivalent of compressed natural gas shall be not less
than 110,000 British thermal units. As used in this paragraph, the term
'compressed natural gas' means a mixture of hydrocarbon gases and vapors,
consisting principally of methane in gaseous form, that has been compressed for
use as a motor fuel.
(b)
No tax is imposed by this
article
Code
section upon
or with
respect to the following sales by duly
licensed distributors:
(1)
Bulk sales to a duly licensed distributor;
(2)
Sales of motor fuel for export from this state when exempted by any provisions
of the Constitutions of the United States or this state;
(3)
Sales of motor fuel to a licensed distributor for export from this
state;
(4)
Sales of motor fuel to the United States for the exclusive use of the United
States when the motor fuel is purchased and paid for by the United
States;
(5)
Sales of aviation gasoline to a duly licensed aviation gasoline dealer, except
for
1¢
3¢
per gallon of the tax imposed by paragraph (1) of subsection (a) of this Code
section and
all of the tax imposed by Code Section
48-9-14;
(6)
Bulk sales of compressed petroleum gas or special fuel to a duly licensed
consumer distributor;
(7)(A)
Sales of compressed petroleum gas or special fuel to a consumer who has no
highway use of the fuel at the time of the sale and does not resell the fuel.
Consumers of compressed petroleum gas or special fuel who have both highway and
nonhighway use of the fuel and resellers of such fuel must be licensed as
distributors in order for sales of the fuel to be tax exempt. Each type of
motor fuel is to be considered separately under this exemption.
(B)(i)
In instances where a sale of compressed petroleum gas has been made to an
ultimate consumer who has both highway and nonhighway use of that type of motor
fuel and no tax has been paid by the distributor on the sale, the consumer shall
become licensed as a consumer distributor of that type of motor fuel. After the
consumer is licensed as a consumer distributor and if it is demonstrated to the
satisfaction of the commissioner that the motor fuel purchased prior to the
licensee's becoming licensed as a consumer distributor was used for nonhighway
purposes, such sales shall be exempt from the tax imposed by this article;
provided, however, that, if at the time of demonstration the ultimate consumer
does not have both highway and nonhighway use of such fuel but it can be
demonstrated by the distributor to the satisfaction of the commissioner that the
motor fuel was used for nonhighway purposes, the sales shall be exempt from the
tax imposed by this article; and
(ii)(I)
Any special fuel sold by a distributor to a purchaser who has a storage
receptacle which has a connection to a withdrawal outlet that may be used for
highway use, as defined in paragraph (8) of Code Section 48-9-2, is not exempt
from the motor fuel and road taxes imposed by this
article
Code
section unless: (1) the purchaser is at
the time of sale a valid licensed distributor of that type of motor fuel, or (2)
an exemption certificate has been obtained from the purchaser on forms furnished
by the Department of Revenue showing that the purchaser has no highway use of
such fuels and is not a reseller of such fuels. Each exemption certificate
shall be valid for a period of not more than three years and shall be kept by
the distributor as one of the records specified in Code Section 48-9-8. It
shall be the responsibility of the purchaser to notify the distributor when the
purchaser is no longer qualified for the nonhighway exemption. All applicable
taxes must be charged the purchaser until the purchaser is granted a valid
distributor's license for that type of motor fuel.
(II)
Any such purchaser granted an exemption under subdivision (I) of this division
who falsely claims the exemption or fails to rescind the purchaser's exemption
certificate to the distributor in writing when he or she is no longer eligible
for the exemption shall be deemed a distributor for purposes of taxation and is
subject to all provisions of this article relating to distributors. This
division in no way shall restrict the option of the purchaser to become licensed
as a distributor. If the distributor sells special fuel to a purchaser who has
a storage receptacle which has a connection to a withdrawal outlet that may be
used for highway use, as defined in paragraph (8) of Code Section 48-9-2, and
the purchaser is not a valid licensed distributor and has not executed a valid
signed exemption certificate, the taxes imposed by this article are due from the
distributor and not the purchaser on all sales of that type of fuel to that
purchaser;
(8)
Sales of fuel oils, compressed petroleum gas, or special fuel directly to an
ultimate consumer to be used for heating purposes only. The delivery of fuel
oils, compressed petroleum gas, or special fuel directly to an ultimate consumer
to be used for heating purposes only shall be made directly into the storage
receptacle of the heating unit of the consumer by the licensed distributor. To
qualify for this exemption, sales must be delivered into storage receptacles
that are not equipped with any secondary withdrawal outlets for the motor
fuel;
(9)
Sales of dyed fuel oils to a consumer for other than highway use as defined in
paragraph (8) of Code Section 48-9-2; or
(10)(A)
During the period of July 1, 2010, through June 30, 2012, sales of motor fuel,
as defined in paragraph (9) of Code Section 48-9-2, for public mass transit
vehicles which are owned by public transportation systems which receive or are
eligible to receive funds pursuant to 49 U.S.C. Sections 5307 and 5311 for which
passenger fares are routinely charged and which vehicles are used exclusively
for revenue generating purposes which motor fuel sales occur at bulk purchase
facilities approved by the department.
(B)
During the period of July 1, 2010, through June 30, 2012, sales of motor fuel,
as defined in paragraph (9) of Code Section 48-9-2, for vehicles operated by a
public campus transportation system, provided that such system has a policy
which provides for free transfer of passengers from the public transportation
system operated by the jurisdiction in which the campus is located; makes the
general public aware of such free transfer policy; and receives no state or
federal funding to assist in the operation of such public campus transportation
system and which motor fuel sales occur at bulk purchase facilities approved by
the department.
(C)
For purposes of this paragraph, the term 'vehicle' or 'vehicles' means buses,
vans, minibuses, or other vehicles which have the capacity to transport seven or
more passengers.
(c)
Fuel oils, compressed petroleum gas, or special fuel used by a duly licensed
distributor for nonhighway purposes is exempt from the tax imposed by this
article.
(d)
No export from this state shall be recognized as being exempt from tax under
paragraphs (2) and (3) of subsection (b) of this Code section unless the
exporter informs the seller and the terminal operator of the intention to export
and causes to be set out the minimum information specified in subsection (e) of
Code Section 48-9-17 on the bill of lading or equivalent documentation under
which the motor fuel is transported. In the event that the motor fuel is
delivered to any point other than that which is set out on the bill of lading or
equivalent documentation, the legal incidence of the tax shall continue to be
imposed exclusively upon the exporter who caused the export documentation to be
issued and no exemption shall be recognized until suitable proof of exportation
has been provided to the commissioner."
SECTION
5-7.
Said Title 48 is further
amended by revising Code Section 48-9-14, relating to the second motor fuel tax,
as follows:
"48-9-14.
(a)
In addition to the motor fuel tax imposed by Code Section 48-9-3, there is
imposed a second motor fuel tax.
(b)(1)
The motor fuel tax imposed by this Code section is levied at the rate of 3
percent of the retail sale price less the tax imposed by Code Section 48-9-3
upon the sale, use, or consumption, as defined in Code Section 48-8-2, of motor
fuel in this state. This tax shall be subject only to the exemptions provided
in Code Section 48-9-3.
(2)(A)(a)(1)
As used in this
paragraph
subsection,
the term 'prepaid state tax' shall have the same meaning as provided in
paragraph
(5.2)
(24)
of Code Section 48-8-2.
(B)(2)
At the time the tax imposed by Code Section 48-9-3 attaches to a sale or
transfer of motor fuels, a prepaid state tax shall be collected. The same
person remitting the tax imposed under Code Section 48-9-3, but on a separate
schedule, shall remit the prepaid state tax to the state. The tax shall be
separately invoiced throughout the chain of distribution until it reaches the
dealer who makes the retail sale. The
commissioner
shall issue the rate of prepaid state tax
on a
semiannual basis, rounded to the nearest $.001 per gallon for use in the
following semiannual period
shall be the
same rate as specified for the tax under Code Section
48-9-3.
The rate
shall be calculated at 4 percent of the state-wide average retail price by motor
fuel type as compiled by the Energy Information Agency of the United States
Department of Energy, the Oil Pricing Information Service, or a similar reliable
published index less taxes imposed under Code Section 48-9-3, this subsection,
and all local sales and use taxes. In the event that the retail price changes
by 25 percent or more within a semiannual period, the commissioner shall issue a
revised prepaid state tax rate for the remainder of that period.
(c)(1)(b)(1)
Except as otherwise provided in paragraph (2) of this subsection, in all other
respects, the tax imposed by this Code section shall be administered and
collected and penalties and interest shall be imposed in the same manner as the
sales and use tax collected pursuant to Article 1 of Chapter 8 of this
title.
(2)
Dealers shall be allowed a percentage of the amount of the tax due and accounted
for and shall be reimbursed in the form of a deduction in submitting, reporting,
and paying the amount due. The deduction shall be at the rate and subject to
the requirements specified under subsections (b) through (f) of Code Section
48-8-50."
SECTION
5-8.
Said Title 48 is further
amended by revising subsections (b) and (d) of Code Section 48-9-16, relating to
motor fuel tax reports and returns, as follows:
"(b)
When any distributor fails to pay the tax or any part of the tax due under Code
Section 48-9-3
or
48-9-14, the distributor shall be subject
to a penalty of 10 percent of the amount of unpaid taxes due."
"(d)
When any distributor fails to pay the tax or any part of the tax due under Code
Section 48-9-3
or
48-9-14, the distributor shall pay
interest on the unpaid tax at the rate specified in Code Section 48-2-40 from
the time the tax became due until paid."
PART
VI
SECTION 6-1.
SECTION 6-1.
Title 48 of the Official Code
of Georgia Annotated, relating to revenue and taxation, is amended by revising
paragraph (3) of subsection (a) of Code Section 48-11-2, relating to excise
taxes on tobacco products, as follows:
"(3)
Cigarettes:
37¢
68¢
per pack of 20 cigarettes and a like rate, pro rata, for other size
packages. The
tax rate enumerated in this paragraph shall be annually adjusted by the
commissioner to reflect the effect of economic inflation or deflation on
individual taxpayers. The commissioner shall establish and maintain rules
governing excise tax rate adjustments. Such rules shall include the
determination and use of an appropriate cost-of-living index which reflects the
effects of inflation and deflation on individual taxpayers in the State of
Georgia. The rules may use for this purpose the Consumer Price Index as reported
by the Bureau of Labor Statistics of the United States Department of Labor or
any other similar index established by the federal government, if the
commissioner determines that such federal index reflects the effects of
inflation and deflation on individual taxpayers in the State of
Georgia; and"
PART
VII
SECTION 7-1.
SECTION 7-1.
Title 33 of the Official Code
of Georgia Annotated, relating to insurance, is amended by revising subsection
(a) of Code Section 33-8-4, relating to the amount and method of computing state
insurance premium tax, as follows:
"(a)
All foreign, alien, and domestic insurance companies doing business in this
state shall pay a tax of
2
1/4
.875
percent upon the gross direct premiums received by them on and after July 1,
1955. The tax shall be levied upon persons, property, or risks in Georgia, from
January 1 to December 31, both inclusive, of each year without regard to
business ceded to or assumed from other companies. The tax shall be imposed
upon gross premiums received from direct writings without any deductions allowed
for premium abatements of any kind or character or for reinsurance or for cash
surrender values paid, or for losses or expenses of any kind; provided, however,
deductions shall be allowed for premiums returned on change of rate or canceled
policies; provided, further, that deductions may be permitted for return
premiums or assessments, including all policy dividends, refunds, or other
similar returns paid or credited to policyholders and not reapplied as premium
for additional or extended life insurance. The term 'gross direct premiums'
shall not include annuity considerations."
SECTION
7-2.
Said title is further amended
by revising subsection (b) of Code Section 33-8-8.1, relating to county and
municipal life insurance premium taxes, as follows:
"(b)
Life insurance companies are subject to county and municipal corporation taxes
levied as follows:
(1)
There is imposed a county tax for county purposes on each life insurance company
doing business within the state, which tax shall be based solely upon gross
direct premiums, as defined in Code Section 33-8-4, which are received during
the preceding calendar year from policies insuring persons residing within the
unincorporated area of the counties pursuant to the provisions of this Code
section. The rate of such tax shall be
1
.875
percent of such premiums, except that such tax shall not apply to the gross
direct premiums of an insurance company which qualifies, pursuant to Code
Section 33-8-5, for the reduction to one-half of 1 percent of the state tax
imposed by Code Section 33-8-4. The tax imposed by this Code section shall not
apply to annuity considerations; and
(2)
Municipal corporations whose ordinances have been filed with the Commissioner
are authorized to impose a tax on each life insurance company doing business
within the state, which tax shall be based solely upon the gross direct
premiums, as defined in Code Section 33-8-4, which are received during the
preceding calendar year from policies insuring persons residing within the
corporate limits of the municipal corporation pursuant to the provisions of this
Code section; provided, however, that the rate of the tax may not exceed
1
.875
percent of the premiums. The tax imposed shall not apply to annuity
considerations."
SECTION
7-3.
Said title is further amended
by revising subsections (a) and (d) of Code Section 33-8-8.2, relating to county
and municipal insurance premium taxes on insurance other than life insurance, as
follows:
"(a)
Counties and municipal corporations are authorized to levy tax at a rate not to
exceed
2.5
.875
percent upon the gross direct premiums of all foreign, alien, and domestic
insurance companies doing business in this state other than life insurance
companies. The tax shall be in addition to the taxes levied by Code Section
33-8-4, and it may be levied upon the gross direct premiums received by such
companies during the preceding calendar year. The tax shall be levied upon
premiums derived from policies insuring persons, property, or risks in Georgia
from January 1 to December 31, both inclusive, of each year without regard to
business ceded to or assumed from other companies. The tax shall be imposed
upon gross premiums received during the preceding calendar year from direct
writing without any deductions allowed from premium abatement of any kind or
character or for reinsurance or for losses or expenses of any kind; provided,
however, deductions shall be allowed for premiums returned or change of rate or
canceled policies; provided, further, that deductions shall be permitted for
returned premiums or assessments, including all policy dividends, refunds, or
other similar returns paid or credited to policyholders."
"(d)
Any county
or municipal corporation which, on January 1, 1983, levied a tax on all premiums
of insurance companies, other than life insurance companies, at a rate in excess
of 2.5 percent may continue to levy the tax at a rate in excess of 2.5 percent,
provided that the rate of such tax shall not exceed the rate which was in effect
in such county or municipal corporation on January 1, 1983, reduced annually
beginning January 1, 1984, by one-third of the difference between such January
1, 1983, rate and 2.5 percent, so that the rate levied on January 1, 1986, shall
not exceed 2.5 percent
Reserved."
PART
VIII
SECTION 8-1.
SECTION 8-1.
Title 28 of the Official Code
of Georgia Annotated, relating to the General Assembly, is amended by repealing
Article 3 of Chapter 5, relating to fiscal bills generally, and enacting a new
Article 3 to read as follows:
"ARTICLE
3
28-5-40.
(a)
This article shall be known and may be cited as the 'Fiscal Impact Standards
Law.'
(b)
It is the purpose of this article to comply with the provisions of Article III,
Section V, Paragraph IIA of the Constitution of Georgia requiring the General
Assembly to enact legislation to define fiscal impact standards to assure the
fiscal soundness of the state and to control legislative procedures so that any
general revenue bill or general revenue resolution creating or amending any tax
exemption or tax credit passed by the General Assembly shall comply with the
defined fiscal impact standards.
28-5-41.
As
used in this article, the term:
(1)
'Amendment' means any amendment, including a substitute bill, made to a revenue
bill by any committee of the House or Senate or by the House or
Senate.
(2)
'LC number' means that number preceded by the letters 'LC' assigned to a bill by
the Office of Legislative Counsel when that office prepares a bill for a member
of the General Assembly.
(3)
'Nonfiscal amendment' means an amendment to a revenue bill that does not change
any factor of a fiscal impact analysis specified in subsection (a) of Code
Section 28-5-46.1.
(4)
'Nonfiscal revenue bill' means a general revenue bill or resolution that does
not meet the requirements of paragraph (6) of this Code section.
(5)
'Reduction in cost amendment' means an amendment to a revenue bill that reduces
the cost of the bill as such cost is determined by the fiscal impact analysis
for the bill prepared pursuant to Code Section 28-5-46.1.
(6)
'Revenue bill' means any general bill or resolution that enacts or amends a tax
exemption or tax credit.
28-5-42.
(a)
No revenue bill or nonfiscal revenue bill may be introduced by any member of the
General Assembly unless, at the time of its introduction, the bill has printed
thereon in the upper right portion of each page of the bill an LC number. Once
a revenue bill is presented by the Office of Legislative Counsel to a member of
the General Assembly, neither the Office of Legislative Counsel nor any person
shall make any change in the revenue bill prior to its introduction into the
General Assembly unless the bill is returned to the Office of Legislative
Counsel and that office assigns a new LC number to the bill.
(b)
No revenue bill may be introduced unless it contains a stated sunset date which
specifies the date upon which the tax exemption or tax credit will expire
automatically without further action of the General Assembly.
28-5-43.
As
a condition precedent to the introduction of any revenue bill or nonfiscal
revenue bill, the member of the General Assembly who intends to be the primary
sponsor of the bill must present an exact copy of the proposed bill, which must
bear an LC number, to the state auditor. The state auditor shall determine
whether the proposed bill is a revenue bill or a nonfiscal revenue bill and
provide a written certification of that determination to the member of the
General Assembly who intends to be the primary sponsor of the bill. Such
certification shall specifically identify the proposed bill by reference to the
LC number. If the proposed bill is introduced into the General Assembly, it
shall have attached thereto the original of the certification of the state
auditor. If the LC number on the bill as offered for introduction is different
from the LC number shown on the state auditor's certification or if the bill as
offered for introduction does not bear an LC number on each page of the bill,
the bill shall not be accepted for introduction by the Clerk of the House of
Representatives, and the bill shall not be considered by any committee of the
House or Senate or by the House or Senate. If the bill is certified as a
revenue bill, its introduction shall also be limited by the provisions of
subsection (a) of Code Section 28-5-45.
28-5-44.
(a)
A nonfiscal revenue bill may be introduced at any time during the first 20 days
of any regular session of the General Assembly in either the Senate or House of
Representatives. After its introduction into the General Assembly, a nonfiscal
revenue bill shall not be amended in any manner to cause the bill to become a
revenue bill. Any amendment to such a bill shall be submitted to the state
auditor by the chairperson of the committee, if a committee amendment, or by the
presiding officer of the Senate or House if the amendment was made by the Senate
or House. If the state auditor certifies in writing that the amendment does not
cause the bill to become a revenue bill, the bill, as amended, may continue in
the legislative process as any other bill. If the state auditor will not issue
such a certification for the amendment, the bill's progress in the legislative
process will end, and the bill shall not be considered further by either the
Senate or the House, and, if passed by the General Assembly, the bill shall not
become law and shall stand repealed in its entirety on the first day of July
immediately following its enactment.
(b)
An amendment to a nonfiscal revenue bill which is prohibited by subsection (a)
of this Code section may be withdrawn by the committee which made the amendment,
if a committee amendment, or by the Senate, if that body made the amendment, or
by the House, if that body made the amendment. If the amendment is withdrawn,
the bill may continue in the legislative process as any other bill, unless it is
subsequently amended, and, in that event, this Code section shall apply to the
subsequent amendment.
(c)
A nonfiscal revenue bill which is not amended during the legislative process may
be considered as any other bill.
28-5-45.
(a)
Any revenue bill may be introduced in the House of Representatives only during
the regular session which is held during the first year of the term of office of
members of the General Assembly. Any such revenue bill may be passed by the
General Assembly only during the regular session which is held during the second
year of the term of office of members of the General Assembly unless such
requirement is waived by a two-thirds vote of each house of the General Assembly
voting in a roll-call vote.
(b)
When a revenue bill is introduced, it shall be assigned by the presiding officer
of the House to the House Committee on Ways and Means or other appropriate
committee. If a majority of the total membership of the appropriate committee
is opposed to the bill on its merits, no fiscal impact analysis provided for in
Code Section 28-5-46.1 shall be necessary, and the bill shall not be reported
out by the committee and shall not be adopted or considered by the House. If a
majority of the committee wishes to consider the bill further and votes in favor
of a fiscal impact analysis of the bill, a fiscal impact analysis shall be
required as provided in Code Section 28-5-46.1. Except as otherwise provided by
subsection (c) of this Code section, no revenue bill shall be reported out of
the committee to which it is assigned or may be considered or adopted by the
House unless a fiscal impact analysis of the bill is made.
(c)
The committee to which a revenue bill is assigned following its introduction may
at any time amend the bill to become a nonfiscal revenue bill. If the bill is
so amended, an exact copy of the amended version shall be submitted by the
chairperson of the committee to the state auditor. If the state auditor issues
a written certification that the committee amendment has converted the status of
the bill to a nonfiscal revenue bill, the bill shall be a nonfiscal revenue bill
for all purposes under this article as of the date of the state auditor's
certification. Only the committee to which a revenue bill is originally
assigned following its introduction may convert the bill to a nonfiscal revenue
bill as authorized in this subsection.
28-5-46.
(a)
A revenue bill that the committee wishes to consider shall first be perfected,
if necessary, by the committee. The committee may delay further consideration
of the bill until after the close of the regular session during which the bill
was introduced, but the committee shall complete its consideration of the bill
for submission to the state auditor under Code Section 28-5-46.1 by not later
than July 15 immediately following the close of the legislative session. The
committee shall be authorized to meet for not more than five days, unless
additional days are authorized by the Speaker of the House, during the period
beginning with the day following the close of the session and ending on July 1
immediately following the close of the session for the purpose of considering
and perfecting the bill. The House Committee on Ways and Means, or other
appropriate committee, shall be authorized to meet with the Senate Finance
Committee, or other appropriate committee, to consider and perfect a bill
during the period following the close of a regular session. The committees may
adopt such procedures as they find appropriate for conducting meetings at which
both committees are present as authorized by this subsection. For attending
meetings of their respective committees as authorized by this subsection, the
members of such Senate and House committees shall receive the expenses and
allowances provided by law for members of legislative interim committees. If a
revenue bill is changed by the committee to which it is assigned, such change
shall be accomplished only by a substitute bill, and no committee amendment to
the bill, except by substitute, shall be authorized.
(b)
Immediately after a revenue bill has been considered and perfected as provided
in subsection (a) of this Code section, the chairperson of the committee to
which the bill was assigned shall transmit an exact copy of the bill, as
perfected by the committee, when applicable, to the state auditor. The copy
submitted to the state auditor shall bear an LC number. The submission of the
bill to the state auditor shall have attached thereto a letter signed by the
chairperson of the committee requesting the state auditor to make or cause to be
made a fiscal impact analysis on the bill.
28-5-46.1.
(a)
If a fiscal impact analysis of a revenue bill is requested under Code Section
28-5-46, it shall be the duty of the state auditor to complete or cause to be
completed such fiscal impact analysis by not later than November 1 of the same
year during which the request for the fiscal impact analysis was made. The
fiscal impact analysis shall include, but shall not be limited to, findings on
the following factors as such factors are relevant to the revenue bill under
consideration:
(1)
The dollar amount of the increase or decrease in state revenues which will
result from the bill; and
(2)
The dollar amount of the annual administrative cost which will result from the
bill.
(b)
By not later than November 1 of the same year that the request for a fiscal
impact analysis was made, the completed fiscal impact analysis shall be
submitted by the state auditor to the chairperson of the committee who requested
it along with a summary of the fiscal impact analysis which shall include the
relevant findings specified in subsection (a) of this Code section.
(c)
The chairperson of the committee, upon receipt of the information provided for
under subsection (b) of this Code section, shall cause the summary of the fiscal
impact analysis to be printed by the Clerk of the House of Representatives in
sufficient quantity to attach a copy thereof to all printed copies of the bill.
The original summary of the fiscal impact analysis shall be attached by the
Clerk of the House of Representatives to the original version of the substitute
bill, as perfected by the committee under Code Section 28-5-46, if applicable,
or to the original version of the bill as introduced if the bill was not changed
by the committee prior to its submission to the state auditor for a fiscal
impact analysis.
28-5-46.2.
(a)
When a revenue bill has had a fiscal impact analysis pursuant to Code Section
28-5-46.1, the bill may be considered at the next regular session of the General
Assembly. If the bill as originally introduced was not changed by the committee
and the original version was submitted to the state auditor for a fiscal impact
analysis, then the original version of the bill is the only one, except as
otherwise provided by subsection (b) of this Code section, that may be
considered by any committee or by the Senate or House. If the original bill was
substituted by the committee and the substitute version was the one submitted to
the state auditor, then that substitute bill is the only one, except as
otherwise provided by subsection (b) of this Code section, that may be
considered by any committee or by the Senate or House.
(b)
After completion of a fiscal impact analysis, any amendment to a revenue bill
shall be out of order and shall not be allowed either by a committee or by the
Senate or House, except for a nonfiscal or a reduction in cost amendment. Any
amendment to a revenue bill shall be submitted to the state auditor by the
chairperson of the committee, if a committee amendment, or by the presiding
officer of the Senate or House if the amendment was made by the Senate or House.
If the state auditor certifies in writing that the amendment is a nonfiscal
amendment or a reduction in cost amendment and the state auditor provides a
fiscal impact analysis as required in subsection (a) of Code Section 28-5-46.1,
then the bill as amended, with the state auditor's certification or fiscal
impact analysis attached to the original of the amendment, may continue in the
legislative process. If the state auditor will not issue such a certification
for the amendment or if there is no fiscal impact analysis showing the reduced
cost of the amendment, the bill's progress in the legislative process will end,
and the bill shall not be considered further by either the Senate or House and,
if passed by the General Assembly, the bill shall not become law and shall stand
repealed in its entirety on the first day of July immediately following its
enactment.
(c)
An amendment to a revenue bill that is prohibited by subsection (b) of this Code
section may be withdrawn by the committee which made the amendment, if a
committee amendment, or by the Senate, if that body made the amendment, or by
the House, if that body made the amendment. If the amendment is withdrawn, the
bill may continue in the legislative process as any other bill, unless it is
subsequently amended, and, in that event, this Code section shall apply to the
subsequent amendment.
28-5-46.3.
(a)
The state auditor shall be authorized to employ or contract with actuaries and
other personnel to carry out the duties assigned to that officer by this
article. Upon their approval by the Legislative Services Committee, expenses
incurred by the state auditor in carrying out such duties shall be paid from
funds appropriated or available to the legislative branch of the state
government. When authorized to do so by the Legislative Services Committee, and
such authorization may be on a continuing basis by direction of the Legislative
Services Committee entered upon its minutes, the legislative fiscal officer,
upon certification by the state auditor of expenses incurred to carry out the
duties assigned to that officer by this article, is authorized to expend
legislative funds to pay such expenses.
(b)
State officials and employees and officials and employees of political
subdivisions are authorized and directed to cooperate with and assist the state
auditor in carrying out the duties assigned to that officer by this
article.
28-5-46.4.
The
enrolled Act resulting from a bill subject to the legislative procedures
provided by this article shall have attached thereto the original or a true and
correct copy of all certificates and summaries of fiscal impact analyses
submitted by the state auditor pursuant to the requirements of this
article."
PART
IX
SECTION 9-1.
SECTION 9-1.
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)
(8)
of subsection
(b)
(c)
of Code Section 48-7-27; and"
SECTION
9-2.
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)(8)(C)
of Code Section 48-7-27."
SECTION
9-3.
Title 33 of the Official Code
of Georgia Annotated, relating to insurance, is amended in Code Section 33-1-18,
relating to an insurance premium tax credit for certain qualified projects, by
revising paragraph (1) of subsection (b) as follows:
"(b)(1)
A tax credit against the taxes imposed under Code Sections 33-5-31, 33-8-4, and
33-40-5, to be termed the Georgia housing tax credit, shall be allowed with
respect to each qualified Georgia project placed in service after January 1,
2001. The amount of such credit
shall, when
combined with the total amount of credit authorized under Code Section
48-7-29.6, in no event exceed an amount
equal to the federal housing tax credit allowed with respect to such qualified
Georgia project."
SECTION
9-4.
Title 48 of the Official Code
of Georgia Annotated, relating to revenue and taxation, is amended in Code
Section 48-6-93, relating to local business license taxes on depository
financial institutions, by revising subsection (e) as follows:
"(e)
Any tax paid by a depository financial institution pursuant to this Code section
shall be credited dollar for dollar against any state income tax liability of
such institution for the tax year during which any business or occupation tax
authorized by this Code section is paid.
Such credit
shall be subject to the provisions of Code Section
48-7-29.7."
SECTION
9-5.
Said Title 48 is further
amended in Code Section 48-6-95, relating to the special state occupation tax on
depository financial institutions, by revising subsection (e) as
follows:
"(e)
Any tax paid by a depository financial institution pursuant to this Code section
shall be credited dollar for dollar against any state income tax liability of
such institution for the tax year during which any business or occupation tax
authorized by this Code section is paid.
Such credit
shall be subject to the provisions of Code Section
48-7-29.7."
SECTION
9-6.
Title 50 of the Official Code
of Georgia Annotated, relating to state government, is amended in Code Section
50-23-21, relating to grants for clean energy property, by revising paragraphs
(2) and (3) of subsection (b) as follows:
"(2)
A person that receives a grant allowed under this Code section shall not be
eligible to claim
any tax
credit under Code Section 48-7-29.14 or
any other grant under this Code section with respect to the same clean energy
property.
(3)
A person shall not receive a grant allowed in this Code section for clean energy
property the person leases from another unless such person obtains the lessor's
written certification that the lessor will not receive a grant under this Code
section or
claim a credit under Code Section
48-7-29.14 with respect to the same clean
energy property."
SECTION
9-7.
Title 20 of the Official Code
of Georgia Annotated, relating to education, is amended by repealing Chapter 2A,
relating to student scholarship organizations.
SECTION
9-8.
Title 48 of the Official Code
of Georgia Annotated, relating to revenue and taxation, is amended in Code
Section 48-7-21, relating to taxation of corporations, by revising paragraph
(13) of subsection (b) as follows:
"(13)
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
Reserved."
SECTION
9-9.
Title 36 of the Official Code
of Georgia Annotated, relating to local government, is amended in Code Section
36-62-5.1, relating to joint development authorities, by revising subsection (e)
as follows:
"(e)(1)
A joint authority created by two or more contiguous counties pursuant to this
Code section must be an active, bona fide joint authority; must have a board of
directors; must meet at least quarterly; and must develop an operational
business plan. A county may belong to more than one such joint
authority.
(2)
A business enterprise as defined under subsection (a) of Code Section 48-7-40
located within the jurisdiction of a joint authority established by two or more
contiguous counties shall qualify for an additional $500.00 tax credit for each
new full-time employee position created. The $500.00 job tax credit authorized
by this paragraph shall be subject to all the conditions and limitations
specified under Code Section 48-7-40, as amended; provided, however, that a
business enterprise located in a county that belongs to more than one joint
authority shall not qualify for an additional tax credit in excess of $500.00
for each new full-time employee position
created."
SECTION
9-10.
Title 50 of the Official Code
of Georgia Annotated, relating to state government, is amended in Code Section
50-16-41, relating to certain rental agreements not requiring competitive
bidding, by revising paragraph (2) of subsection (h) as follows:
"(2)
When all factors are reasonably equivalent, preferences will be given to
location of state government programs and facilities in those counties which are
determined by the Department of Community Affairs to be the most economically
depressed,
meaning those 71 tier 1 counties of the state designated as least developed
under paragraph (2) of subsection (b) of Code Section
48-7-40."
PART
X
SECTION 10-1.
SECTION 10-1.
Title 50 of the Official Code
of Georgia Annotated, relating to state government, is amended in Chapter 7,
relating to the Department of Economic Development, by adding a new article to
read as follows:
"ARTICLE
8
50-7-100.
(a)
Pursuant to the authority of Article III, Section IX, Paragraph VI of the
Constitution, there is created the Economic Development Trust Fund. The fund
shall be operated and administered by the commissioner of economic development
and the Department of Economic Development. Moneys of the fund shall consist of
those which may be annually appropriated into the fund or moneys otherwise
deposited into the fund.
(b)
The purposes of the fund shall include the attraction, location, or expansion of
new or existing businesses in this state.
(c)
The commissioner and the department shall be authorized to provide by rule or
regulation for the use of fund moneys to provide for an economic development
tax credit based upon the creation of jobs and an economic development tax
credit based upon specified levels of capital investment. Such credits shall be
made available to any qualifying company whether large or small or existing or
new to Georgia.
(d)
Credit amounts shall be administered and allocated directly by the commissioner
or the department. Revenues appropriated to or deposited into the fund shall
not lapse as otherwise required by Article III, Section IX, Paragraph IV(c)
of the Constitution and shall not be subject to the limitations of Article III,
Section IX, Paragraph VI(a) or of Article VII, Section III, Paragraph II of
the Constitution."
PART
XI
SECTION 11-1.
SECTION 11-1.
Title 48 of the Official Code
of Georgia Annotated, relating to revenue and taxation, is amended in Code
Section 48-2-6, relating to organization of the Department of Revenue, by adding
a new subsection to read as follows:
"(f)
The commissioner is authorized to provide by contract for the collecting and
remitting of sales and use taxes by nonresident businesses who sell products to
buyers located in this state and who are not otherwise obligated to collect and
remit sales and use taxes. The commissioner may engage the services of a
recruiting coordinator to solicit such nonresident businesses to participate in
a voluntary program to collect and remit to the department sales and use taxes
on their sales to buyers located in this state or provide for other appropriate
methods of collecting and remitting such taxes in a voluntary
program."
PART
XII
SECTION 12-1.
SECTION 12-1.
(a)(1)
Except as otherwise provided in this section, Parts I and II of this Act shall
become effective upon this Act's approval by the Governor or upon its becoming
law without such approval and shall be applicable to all taxable years beginning
on or after January 1, 2012.
(2)
Tax, penalty, and interest liabilities and refund eligibility for prior taxable
years shall not be affected by the passage of the sections of this Act specified
in this subsection and shall continue to be governed by the provisions of
general law as it existed immediately prior to January 1, 2012.
(3)
The sections of this Act specified in this subsection 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.
(b)(1)
Sections 1-4, 1-5, 1-6, 1-7, 1-8, 1-9, 1-10, 1-11, 1-12, 1-13, 1-14, 1-15, 1-16,
1-17, 1-18, 1-19, 1-20, and 1-21 shall become effective on January 1, 2014. Any
taxpayer who has claimed and been allowed any tax credit prior to the repeal of
such credit shall be allowed to carry forward any unused credit amount to future
tax years in the manner authorized under the applicable prior law until such
amount has been applied fully.
(2)
Tax, penalty, and interest liabilities and refund eligibility for prior taxable
years shall not be affected by the passage of the sections of this Act specified
in this subsection and shall continue to be governed by the provisions of
general law as it existed immediately prior to January 1, 2014.
(3)
The sections of this Act specified in this subsection 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,
2014.
(c)(1)
Sections 2-5, 2-7, 2-8, 2-9, 2-10, 2-11, 2-14, 2-15, 2-16, 2-19, 2-20, 2-22,
2-23, 2-28, 2-29, 2-34, and 2-35 shall become effective on January 1, 2012.
Any taxpayer who has claimed and been allowed any tax credit prior to the repeal
of such credit shall be allowed to carry forward any unused credit amount to
future tax years in the manner authorized under the applicable prior law until
such amount has been applied fully.
(2)
Tax, penalty, and interest liabilities and refund eligibility for prior taxable
years shall not be affected by the passage of the sections of this Act specified
in this subsection and shall continue to be governed by the provisions of
general law as it existed immediately prior to January 1, 2012.
(3)
The sections of this Act specified in this subsection 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.
(d)(1)
Sections 2-12, 2-13, 2-17, 2-18, 2-21, 2-24, 2-25, 2-26, 2-27, 2-30, 2-31, 2-32,
2-33, 2-36, 2-37, 2-38, 2-39 and 2-40 shall become effective on January 1, 2014.
Any taxpayer who has claimed and been allowed any tax credit prior to the repeal
of such credit shall be allowed to carry forward any unused credit amount to
future tax years in the manner authorized under the applicable prior law until
such amount has been applied fully.
(2)
Tax, penalty, and interest liabilities and refund eligibility for prior taxable
years shall not be affected by the passage of the sections of this Act specified
in this subsection and shall continue to be governed by the provisions of
general law as it existed immediately prior to January 1, 2014.
(3)
The sections of this Act specified in this subsection 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,
2014.
SECTION
12-2.
(a)
Except as otherwise provided in this section, Part III of this Act shall become
effective upon this Act's approval by the Governor or upon its becoming law
without such approval.
(b)
Sections 3-1, 3-2, 3-3, 3-5, 3-6, 3-7, and 3-8 of this Act shall become
effective on January 1, 2012.
(c)
Sections 3-9, 3-10, 3-11, 3-12, and 3-13 of this Act shall become effective on
July 1, 2012.
SECTION
12-3.
Part IV of this Act shall
become effective on January 1, 2013; provided, however, that Part IV of this Act
shall only become effective on January 1, 2013, upon the ratification at the
November, 2012, state-wide general election of a resolution that amends the
Constitution of the State of Georgia so as to authorize the General Assembly to
provide by general law for the direct allocation to local governments of a
portion of the proceeds of a state-wide tax on communications services rather
than the deposit of such portion in the general fund of the state treasury and
that such general law may preempt the field of taxation of communications
services and prohibit any local taxes, fees, or charges thereon or the
enforcement of ordinances or agreements requiring payment of such local taxes,
fees, assessments, or other charges on communications services. If such
resolution is not ratified, Part IV of this Act shall not become effective and
said part shall stand repealed in its entirety on January 1,
2013.
SECTION
12-4.
(a)
Part V of this Act shall become effective on 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 V 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 V 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
12-5.
Part VI of this Act shall
become effective on January 1, 2012.
SECTION
12-6.
Part VII of this Act shall
become effective on January 1, 2012.
SECTION
12-7.
Part VIII of this Act shall
become effective on January 1, 2013; provided, however, that Part VIII of this
Act shall only become effective on January 1, 2013, upon the ratification at the
November, 2012, state-wide general election of a resolution that amends the
Constitution of the State of Georgia so as to require the General Assembly to
enact general law fiscal impact standards, and to require any general bill or
resolution that enacts or amends a tax exemption or tax credit to comply with
such fiscal impact standards. If such resolution is not ratified, Part VIII of
this Act shall not become effective and shall stand repealed in its entirety on
January 1, 2013.
SECTION
12-8.
(a) Sections 9-1, 9-2, 9-9,
and 9-10 of this Act shall become effective on January 1,
2012.
(b) Sections 9-3, 9-4, 9-5, 9-6, 9-7, and 9-8 of this Act shall become effective on January 1, 2014.
(b) Sections 9-3, 9-4, 9-5, 9-6, 9-7, and 9-8 of this Act shall become effective on January 1, 2014.
SECTION
12-9.
Part X of this Act shall
become effective on January 1, 2013; provided, however, that Part X of this Act
shall only become effective on January 1, 2013, upon the ratification at the
November, 2012, state-wide general election of a resolution that amends the
Constitution of the State of Georgia so as to create the Economic Development
Trust Fund to provide tax credits for job creation and capital investment by
qualifying business. If such resolution is not ratified, Part X of this Act
shall not become effective and shall stand repealed in its entirety on
January 1, 2013.
SECTION
12-10.
Part XI of this Act shall
become effective on January 1, 2012.
PART
XIII
SECTION 13-1.
SECTION 13-1.
All laws and parts of laws in
conflict with this Act are repealed.
