05 LC
18 3970
House
Bill 112
By:
Representative O`Neal of the
146th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating
to income taxes, so as to change certain definitions regarding such taxes; to
provide an effective date; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
7 of Title 48 of the Official Code of Georgia Annotated, relating to income
taxes, is amended by striking Code Section 48-7-1, relating to definitions
regarding such taxes, and inserting in its place a new Code Section 48-7-1 to
read as follows:
"48-7-1.
As
used in this chapter, the term:
(1)
'Corporation' includes, but is not limited to, all associations, professional
associations organized pursuant to Chapter 10 of Title 14, and insurance
companies.
(2)
'Deficiency' means the amount by which the tax imposed by this chapter or any
prior law exceeds the amount shown as the tax due by the taxpayer upon his
return or, if no amount is shown as the tax due by a taxpayer upon his return or
if no return is made by the taxpayer, the amount determined by the commissioner
to be the correct amount of the tax.
(3)
'Dividend,' when used for the purpose of defining a taxable dividend, means any
distribution made by a corporation out of its earnings or profits to its
shareholders or members whether the distribution is made in cash, other
property, or a stock different from the stock on which the dividend is paid.
'Dividend' also includes, but is not limited to, the portion of the assets of a
corporation distributed at the time of dissolution which is in effect a
distribution of earnings.
(4)
'Fiscal year' means an accounting period of 12 months ending on the last day of
any month other than December. In the case of any taxpayer who has elected a
year consisting of 52 to 53 weeks for federal income tax purposes, the term
means the period so elected.
(5)
'Income tax day' means December 31 of each calendar year or, if a person can
show to the satisfaction of the commissioner that the person has already
established the fiscal year as his taxable year for income tax reporting
purposes, the last day of the
persońs
fiscal year.
(6)
'Nonresidents' means taxable nonresidents and nontaxable
nonresidents.
(7)
'Nontaxable nonresident' means every individual who is not otherwise a resident
of this state or a taxable nonresident of this state.
(7.1)
'Owning property or doing business in this state' shall not include the
following activities, either singularly or in the aggregate, with respect to any
person that is not otherwise subject to income taxation in the State of Georgia
that has contracted with a commercial printer for any printing, including
printing related activities, and distribution services to be performed in
Georgia:
(A)
The ownership by that person of tangible or intangible property located at the
Georgia premises of the commercial printer for use by the printer in performing
its services for the owner;
(B)
The sale and distribution by that person of printed material produced at and
shipped or distributed from the Georgia premises of the commercial
printer;
(C)
The activities performed by or on behalf of that person at the Georgia premises
of the commercial printer which are directly related to the services provided by
that commercial printer; or
(D)
The printing, including printing related activities and distribution related
activities, performed by the commercial printer in Georgia for or on behalf of
that person.
(8)
'Paid,' for the purpose of the deductions under this chapter, means 'paid or
accrued' or 'paid or incurred.' The terms 'paid or accrued,' 'paid or incurred,'
and 'incurred' shall be construed according to the method of accounting upon the
basis of which the net income is computed under this chapter.
(9)
'Received,' for the purpose of the computation of the net income under this
chapter, means 'received or accrued.' The term 'received or accrued' shall be
construed according to the method of accounting upon the basis of which the net
income is computed under this chapter.
(10)
'Resident' means:
(A)
Every individual who is a legal resident of this state on income tax
day.
(B)
Every individual who, though not necessarily a legal resident of this state,
nevertheless resides within this state on a more or less regular or permanent
basis and not on the temporary or transitory basis of a visitor or sojourner and
who so resides within this state on income tax day.
(C)
Every individual who on income tax day has been residing within this state for
183 days or part-days or longer, in the aggregate, of the immediately preceding
365 day period.
(D)
Every individual who, having become a resident of this state for income tax
purposes under subparagraphs (A) and (B) of this paragraph, is deemed to
continue to be a resident of this state until the person shows to the
satisfaction of the commissioner that he has become a legal resident or
domiciliary of another state and that he does not come within subparagraph (C)
of this paragraph. Upon such a showing with respect to any 12 month period
immediately preceding income tax day, the person shall be taxable as a resident
of this state only to the date of becoming a nonresident on an apportionment
basis as prescribed in Code Section 48-7-85.
(E)
Every individual who becomes a resident of this state for income tax purposes
under subparagraphs (A) and (B) of this paragraph for the first time during the
12 month period immediately preceding income tax day and who does not otherwise
come within subparagraph (C) of this paragraph shall be taxable as a resident
only from the date of becoming a resident on an apportionment basis as
prescribed in Code Section 48-7-85.
(11)
'Taxable nonresident' means:
(A)
Every individual who is not otherwise a resident of this state for income tax
purposes and who regularly and not casually or intermittently engages within
this state, by himself or herself or by means of employees, agents, or partners,
in employment, trade, business, professional, or other activity for financial
gain or profit including, but not limited to, the rental of real or personal
property located within this state or for use within this state. 'Taxable
nonresident' does not include a legal resident of another state whose only
activity for financial gain or profit in this state consists of performing
services in this state for an employer when the remuneration for the services
does not exceed 5 percent of the income received by the person for performing
services in all places during any taxable year;
(B)
Every individual who is not otherwise a resident of this state for income tax
purposes and who sells, exchanges, or otherwise disposes of tangible property
which at the time of the sale, exchange, or other disposition has a taxable
situs within this state or who sells, exchanges, or otherwise disposes of
intangible personal property which has acquired at the time of the sale,
exchange, or other disposition a business or commercial situs within this
state;
(C)
Every individual who is not otherwise a resident of this state for income tax
purposes and who receives the proceeds of any lottery prize awarded by the
Georgia Lottery Corporation; and
(D)
Every individual who is not a resident of this state for income tax purposes
and who makes a withdrawal as provided for in subparagraph (b)(10)(B) of Code
Section 48-7-27.
(12)
'Taxable year' means the calendar year or the fiscal year ending during the
calendar year upon the basis of which the net income is computed under this
chapter."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.