06 LC 18
5131S
House
Bill 1160 (COMMITTEE SUBSTITUTE)
By:
Representatives Knight of the
126th,
Tumlin of the
38th,
Mosby of the
90th,
and O`Neal of the
146th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-7-27 of the Official Code of Georgia Annotated, relating
to computation of taxable net income, so as to provide for additional
adjustments with respect to certain Subchapter "S" corporations, partnerships,
or limited liability companies; to provide for procedures, conditions, and
limitations; to provide for a definition; 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.
Code
Section 48-7-27 of the Official Code of Georgia Annotated, relating to
computation of taxable net income, is amended by striking paragraph (1) of
subsection (d) and inserting in its place a new paragraph (1) to read as
follows:
"(d)(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
entitýs
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."
SECTION
2.
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, 2006.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.