hb24_LC_18_3883_pf

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LC 18 3883

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes, so as to provide for a gradual reduction in the state income tax rate for corporations over a period of years; to abolish the state income tax effective for tax years beginning on or after January 1, 2011; to provide for the collection of income taxes prior to such abolishment; to provide for 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 subsection (a) of Code Section 48-7-21, relating to taxation of corporations, and inserting in its place a new subsection (a) to read as follows:

"(a)(1)(A) For the taxable year beginning on or after January 1, 2005, and prior to January 1, 2006, 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 the taxable year beginning on or after January 1, 2006, and prior to January 1, 2007, 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 the taxable year beginning on or after January 1, 2007, and prior to January 1, 2008, every domestic corporation and every foreign corporation shall pay annually an income tax equivalent to 4 percent of its Georgia taxable net income.

(D) For the taxable year beginning on or after January 1, 2008, and prior to January 1, 2009, every domestic corporation and every foreign corporation shall pay annually an income tax equivalent to 3 percent of its Georgia taxable net income.

(E) For the taxable year beginning on or after January 1, 2009, and prior to January 1, 2010, every domestic corporation and every foreign corporation shall pay annually an income tax equivalent to 2 percent of its Georgia taxable net income.

(F) For the taxable year beginning on or after January 1, 2010, and prior to January 1, 2011, every domestic corporation and every foreign corporation shall pay annually an income tax equivalent to 1 percent of its Georgia taxable net income.

(G) For any taxable year beginning on or after January 1, 2011, there shall not be a corporate income tax and no corporate returns are required.

(2) Georgia taxable net income of a corporation shall be the corporatiońs taxable income from property owned or from business done in this state. A corporatiońs taxable income from property owned or from business done in this state shall consist of the corporatiońs 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.

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.