08 LC 18
6976
House
Bill 1151
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 Titles 16 and 48 of the Official Code of Georgia Annotated, relating,
respectively, to crimes and offenses and revenue and taxation, so as to change
provisions regarding raffle operations by nonprofit, tax-exempt organizations;
to change certain provisions regarding bingo definitions and licensing
procedures; to change certain provisions regarding organizations exempt from
state income tax; 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.
Titles
16 of the Official Code of Georgia Annotated, relating to crimes and offenses,
is amended by revising subparagraph (d)(2)(E) of Code Section 16-12-22.1,
relating to raffle licenses, as follows:
"(E)
A
determination
letter from the Georgia Department of Revenue
certifying
statement
affirming that the applicant is exempt
under the
income
tax laws of this state
under Code
Section 48-7-25;"
SECTION
2.
Said
title is further amended by revising paragraph (3.1) of Code Section 16-12-51,
relating to definitions pertaining to bingo, as follows:
"(3.1)
'Nonprofit, tax-exempt organization' means an organization, association,
corporation, or other legal entity which has been determined by the federal
Internal Revenue Service to be exempt from taxation under federal tax law and
has been
determined by the Georgia Department of Revenue to
be
which
is exempt from taxation under the
income
tax laws of this state
under Code
Section 48-7-25; which is organized or
incorporated in this state or authorized to do business in this state; and which
uses the proceeds from any bingo games conducted by such organization solely
within this state."
SECTION
3.
Said
title is further amended by revising paragraph (5) of subsection (b) of Code
Section 16-12-53, relating to bingo licensing procedures, as
follows:
"(5)
A
determination
letter from the Georgia Department of Revenue
certifying
statement
affirming that the applicant is exempt
under the
income
tax laws of this state
under Code
Section 48-7-25;"
SECTION
4.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation
is amended by revising subsections (a) and (b) of Code Section 48-7-25, relating
to organizations exempt from Georgia income tax, as follows:
"(a)
The following organizations shall be exempt from taxation imposed by Code
Section 48-7-21
unless the
exemption is denied under subsection (b) or (c) of this Code
section
as
indicated:
(1)
Those
Subject to
subsections (b) and (c) of this Code section,
those organizations
described
by
which are
exempt from federal income taxation pursuant
to Section 501(c), 501(d), 501(e), 664, or
401 of the Internal Revenue Code of 1986
shall be
deemed to have similar exempt status for purposes of Code Section
48-7-21.
Organizations
described in this paragraph shall be exempt from taxation for state purposes in
the same manner and to the same extent as for federal
purposes; and
(2)
Insurance companies which pay to the state a tax upon premium
income.
(b)(1)
An
organization requesting exemption under paragraph (1) of subsection (a) of this
Code section shall file a written application with the commissioner. The
commissioner shall issue a determination letter or ruling to an organization
requesting the exemption and shall either grant or disallow the requested exempt
status. Until a determination letter granting exempt status is issued by the
commissioner, no exempt status shall exist. Those organizations which have an
exempt status in effect under Section 501(c), 501(d), 501(e), 664, or 401 of the
Internal Revenue Code of 1986 on January 1, 1987, shall retain the exempt status
unless revoked as provided by law. The commissioner may issue rules governing
the filing of written applications and the issuance of determination
letters.
An
organization´s exempt status under paragraph (1) of subsection (a) of this
Code section shall be subject to review and revocation by the commissioner in
accordance with the provisions of paragraph (2) of this subsection.
(2)(A)
The commissioner may revoke the exempt status of any organization described in
paragraph (1) of subsection (a) of this Code section when:
(i)
The Internal Revenue Service revokes the exempt status of the
organization;
(ii)
The organization ceases to be organized or operated in the manner in which it
was organized or operated at the time the exempt status was
granted;
(iii)
The organization engages in any prohibited transaction as set forth in the
Internal Revenue Code of 1986; or
(iv)
There is any material change in the character or purpose of the organization or
in the mode of operation of the organization.
(B)
Revocation of an exempt status shall revoke the exempt status retroactively to
the time of the occurrence of the disqualifying event or events. All exempt
organizations shall immediately notify the commissioner in writing of the
occurrence of any of the disqualifying events described in subparagraph (A) of
this paragraph or of receipt by the organization of a notice of intent to
terminate its exempt status by the Internal Revenue Service. The statute of
limitations governing the assessment of any taxes determined to be due this
state due to the revocation of exempt status shall be tolled as of the date of
the occurrence of the disqualifying event or events described in subparagraph
(A) of this paragraph. The commissioner at any time may require an organization
which is exempt from taxation to file an information return stating the
organization´s gross income, receipts, disbursements, accumulation of
income, and other data deemed necessary for the proper administration of this
Code section."
SECTION
5.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
6.
All
laws and parts of laws in conflict with this Act are repealed.