Bill Text: GA HB468 | 2009-2010 | Regular Session | Introduced

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Bill Title: Income tax; taxation of corporations; change certain provisions

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-02-19 - House Second Readers [HB468 Detail]

Download: Georgia-2009-HB468-Introduced.html

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09 LC 18 8089ER

House Bill 468

By: Representative Martin of the 47th

A BILL TO BE ENTITLED
AN ACT

To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate, computation, and exemptions regarding income taxes, so as to change certain provisions relating to taxation of corporations; to change certain provisions regarding expenses from transactions with certain related persons or members; to provide an effective date; to provide for applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate, computation, and exemptions regarding income taxes, is amended in subsection (b) of Code Section 48-7-21, relating to taxation of corporations, by adding a new paragraph to read as follows:

"(16)(A) As used in this paragraph, the term 'related member' shall have the same meaning as provided in Code Section 48-7-28.3.

(B) There shall be subtracted from taxable income, before the income is apportioned or allocated as provided by Code Section 48-7-31, any amount received or accrued from a related member during the taxable year to the extent such amount corresponds to expenses or costs the related member was required to add back and thereby include in its taxable income prior to the apportionment and allocation of such income pursuant to paragraph (10) of this subsection."

SECTION 2.

Said article is further amended in Code Section 48-7-28.3, relating to expenses from transactions with related members, by revising paragraph (2) of subsection (d) as follows:

"(2) The amount of the adjustment required by subsection (b) of this Code section shall be reduced, but not below zero, to the extent the corresponding interest expenses and costs and intangible expenses and costs:

(A) Are received as income in an arm's length transaction by the related member; provided, however, that the subtraction from taxable income permitted by paragraph (16) of subsection (b) of Code Section 48-7-21 shall not be taken into account for purposes of determining whether such expenses and costs are received as income by the related member; and

(B) Such income is allocated or apportioned, or both, to and taxed by Georgia or another state that imposes a tax on or measured by the income of the related member."

SECTION 3.

This Act shall become effective upon its 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, 2009.

SECTION 4.

All laws and parts of laws in conflict with this Act are repealed.