During the 2022 legislative session, the Georgia General Assembly passed significant tax legislation, including authorizing affiliated groups to file consolidated corporate income tax returns without prior approval from the Department of Revenue, extending and amending qualification for the high-technology and data center sales tax exemptions, extending and increasing several income tax credits, and changing procedures
Georgia
Legal Alert: Georgia’s tax legislation survives 2022 Crossover Day
“Crossover Day” in the Georgia legislature was Tuesday, March 15th—the 28th legislative day of 40 total legislative days – the day by which all bills must have passed one legislative chamber in order to cross over and be considered by the other chamber. Bills that have not passed one chamber prior to crossover are generally…
Georgia high-technology company sales tax exemption: Upcoming reporting requirements & future legislative proposals
Since 2001, Georgia has provided a sales and use tax exemption for high-technology companies that invest at least $15 million in eligible computer equipment (including hardware and software) in a calendar year. O.C.G.A. § 48-8-3(68). During the 2021 legislative session, the Georgia General Assembly passed SB 6, which included significant changes the High-Tech Exemption. …
Legal Alert – Georgia offers another dose of COVID relief: Governor enacts temporary property tax relief for manufacturers
Georgia Governor Brian Kemp has signed into law House Bill 451, which provides temporary ad valorem tax relief to Georgia manufacturers to mitigate the economic and logistical disruptions caused by the COVID-19 pandemic.
Under HB 451, for property tax year 2021, manufacturers claiming Georgia’s Level 1 Freeport exemption pursuant to O.C.G.A. § 48-5-48.2(c)(1) may…
Georgia Governor Signs Taxpayer Fairness Act Limiting Administrative Deference in Georgia Tax Controversies
On April 29, 2021, Georgia Governor Brian Kemp signed SB 185, limiting the application of administrative deference in Georgia tax controversies. This law seeks to level the playing field in state tax litigation matters by reducing the level of deference accorded to the Department of Revenue’s interpretations of ambiguous laws. The law provides that…
Legal Alert: Georgia Legislature Approves Taxpayer Fairness Act Limiting Administrative Deference
On March 22, 2021, the Georgia House of Representatives passed SB 185, which now heads to the Governor’s desk. The measure, which was previously unanimously passed by the state Senate, seeks to level the playing field in state tax litigation matters by reducing the level of deference accorded to the Department of Revenue’s interpretations…
Georgia House considers bill to expand sales tax to digital goods
On February 22, 2021, the Georgia House of Representatives introduced H.B. 594, which would impose the Georgia sales tax on digital goods or services. The bill amends the definition of tangible personal property, subject to sales tax, to include “digital goods or services.” It defines digital goods or services to include: (1) specified digital…
Legal Alert: Georgia legislature proposes to eliminate high-tech sales tax exemption
On February 26, 2021, a subcommittee of the Georgia Ways & Means Committee quickly approved HB 428, which proposes to eliminate the current Georgia sales tax exemption for high-technology companies and facilities that invest at least $15 million in eligible computer equipment in Georgia during a calendar year. The exemption has been available to…
Georgia Advances 2021 IRC Conformity Legislation
Georgia’s income tax conformity bill, HB 265, unanimously passed the state House on February 9, 2021, and is now pending the Senate’s review. Georgia’s conformity to the federal Internal Revenue Code (IRC) is updated annually to adopt the most recent federal tax law changes. As such, HB 265 seeks to conform Georgia’s tax code…
Stand by Your Claim: Georgia Court Rules Sellers have Standing to Challenge Georgia Refund Claim Denial for Erroneously Collected Sales Tax
The Georgia Court of Appeals held that a group of telecommunications dealers that were AT&T subsidiaries (collectively “AT&T”) had standing to challenge the Georgia Department of Revenue’s (“DOR”) denial of sales tax refund claims. Effective May 5, 2009, O.C.G.A. §§ 48-2-35 and 48-2-35.1 were amended to provide standing for “dealers” to file refund claims on…