08 LC 18
6985
House
Bill 1153
By:
Representatives Knight of the
126th,
Tumlin of the
38th,
and Mosby of the
90th
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 change certain requirements
regarding consent agreements; 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 revising paragraph (2) of
subsection (d) as follows:
"(2)
Nonresident shareholders of a Georgia Subchapter 'S' corporation
must
shall
execute a consent agreement to pay Georgia income tax on their portion of the
corporate income in order for
the
such
Subchapter 'S' corporation to be recognized for Georgia purposes.
This
A
consent agreement
must
for each
shareholder shall be filed by the
corporation with its corporate tax return
in the year in
which the Subchapter 'S' corporation is first required to file a Georgia income
tax return. For a Subchapter 'S' corporation in existence prior to January 1,
2008, the consent agreement shall be filed for each shareholder in the first
Georgia tax return filed for a year beginning on or after January 1, 2008. A
consent agreement shall also be filed in any subsequent year for any additional
nonresident who first becomes a shareholder of the Subchapter 'S' corporation in
that year. Shareholders of a federal
Subchapter 'S' corporation which is not recognized for Georgia purposes may make
an adjustment to federal adjusted gross income in order to avoid double taxation
on this type of income. Adjustments
will
shall
not be allowed unless tax was actually paid by
the
such
corporation."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.