07 LC 18
6078-EC
House
Bill 195
By:
Representatives Golick of the
34th,
O`Neal of the
146th,
Cole of the
125th,
Smith of the
129th,
Dempsey of the
13th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 48 of the Official Code of Georgia Annotated, relating to revenue
and taxation, so as to amend the amounts of retirement income excludable from
Georgia taxable net income; 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.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by revising paragraph (5) of subsection (a) of Code Section 48-7-27,
relating to computation of taxable net income, as follows:
"(5)(A)
Retirement income otherwise included in Georgia taxable net income not to exceed
the exclusion
amount
amounts
as follows:
(i)
For taxable years beginning on or after January 1, 1989, and prior to January 1,
1990, retirement income not to exceed an exclusion amount of $8,000.00 per year
received from any source;
(ii)
For taxable years beginning on or after January 1, 1990, and prior to January 1,
1994, retirement income not to exceed an exclusion amount of $10,000.00 per year
received from any source;
(iii)
For taxable years beginning on or after January 1, 1994, and prior to January 1,
1995, retirement income from any source not to exceed an exclusion amount of
$11,000.00;
(iv)
For taxable years beginning on or after January 1, 1995, and prior to January 1,
1999, retirement income from any source not to exceed an exclusion amount of
$12,000.00;
(v)
For taxable years beginning on or after January 1, 1999, and prior to January 1,
2000, retirement income from any source not to exceed an exclusion amount of
$13,000.00;
(vi)
For taxable years beginning on or after January 1, 2000, and prior to January 1,
2001, retirement income not to exceed an exclusion amount of $13,500.00 per year
received from any source;
(vii)
For taxable years beginning on or after January 1, 2001, and prior to January
1, 2002, retirement income from any source not to exceed an exclusion amount of
$14,000.00;
(viii)
For taxable years beginning on or after January 1, 2002, and prior to January 1,
2003, retirement income from any source not to exceed an exclusion amount of
$14,500.00;
(ix)
For taxable years beginning on or after January 1, 2003, and prior to January 1,
2006, retirement income from any source not to exceed an exclusion amount of
$15,000.00;
(x)
For taxable years beginning on or after January 1, 2006, and prior to January 1,
2007, retirement income from any source not to exceed an exclusion amount of
$25,000.00;
(xi)
For taxable years beginning on or after January 1, 2007, and prior to January 1,
2008, retirement income from any source not to exceed an exclusion amount of
$30,000.00;
and
(xii)
For taxable years beginning on or after January 1, 2008,
and prior to
January 1, 2009, retirement income from
any source not to exceed an exclusion amount of
$35,000.00.;
(xiii)
For taxable years beginning on or after January 1, 2009, retirement income from
any source not to exceed an exclusion amount of $35,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (i) or (ii) of
subparagraph (D) of this paragraph or an amount of $65,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (iii) of subparagraph
(D) of this paragraph;
(xiv)
For taxable years beginning on or after January 1, 2010, retirement income from
any source not to exceed an exclusion amount of $35,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (i) or (ii) of
subparagraph (D) of this paragraph or an amount of $100,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (iii) of subparagraph
(D) of this paragraph;
(xv)
For taxable years beginning on or after January 1, 2011, retirement income from
any source not to exceed an exclusion amount of $35,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (i) or (ii) of
subparagraph (D) of this paragraph or an amount of $150,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (iii) of subparagraph
(D) of this paragraph;
(xvi)
For taxable years beginning on or after January 1, 2012, retirement income from
any source not to exceed an exclusion amount of $35,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (i) or (ii) of
subparagraph (D) of this paragraph or an amount of $200,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (iii) of subparagraph
(D) of this paragraph; and
(xvii)
For taxable years beginning on or after January 1, 2013, retirement income from
any source not to exceed an exclusion amount of $35,000.00 for each taxpayer
meeting the eligibility requirement set forth in division (i) or (ii) of
subparagraph (D) of this paragraph or retirement income from any source for each
taxpayer meeting the eligibility requirement set forth in division (iii) of
subparagraph (D) of this paragraph.
(B)
In the case of a married couple filing jointly, each spouse shall if otherwise
qualified be individually entitled to exclude retirement income received by that
spouse up to the exclusion
amount, so
that the total amount excluded on such joint return may if otherwise allowable
be up to twice the individual exclusion
amount.
(C)
The
exclusion
exclusions
provided for in this paragraph shall not apply to or affect and shall be in
addition to those adjustments to net income provided for under any other
paragraph of this subsection.
(D)
A taxpayer shall be eligible for the
exclusion
exclusions
granted by this paragraph only if the taxpayer:
(i)
Is 62 years of age or older
but less than
65 years of age during any part of the
taxable year;
or
(ii)
Is permanently and totally disabled in that the taxpayer has a medically
demonstrable disability which is permanent and which renders the taxpayer
incapable of performing any gainful occupation within the taxpayer´s
competence;
or
(iii)
Is 65 years of age or older during any part of the taxable
year.
(E)
For the purposes of this paragraph, retirement income shall include but not be
limited to interest income, dividend income, net income from rental property,
capital gains income, income from royalties, income from pensions and annuities,
and no more than $4,000.00 of an individual´s earned income. Earned income
in excess of $4,000.00, including but not limited to net business income earned
by an individual from any trade or business carried on by such individual,
wages, salaries, tips, and other employer compensation, shall not be regarded as
retirement income. The receipt of earned income shall not diminish any
taxpayer´s eligibility for the retirement income
exclusion
exclusions
allowed by this paragraph except to the extent of the express limitation
provided in this subparagraph.
(F)
The commissioner shall by regulation require proof of the eligibility of the
taxpayer for the
exclusion
exclusions
allowed by this paragraph.
(G)
The commissioner shall by regulation provide that for taxable years beginning on
or after January 1, 1989, and ending before October 1, 1990, penalty and
interest may be waived or reduced for any taxpayer whose estimated tax payments
and tax withholdings are less than 70 percent of such taxpayer´s Georgia
income tax liability if the commissioner determines that such underpayment or
deficiency is due to an increase in net taxable income attributable directly to
amendments to this paragraph or paragraph (4) of this subsection enacted at the
1989 special session of the General Assembly and not due to willful neglect or
fraud;"
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.