07 SB184/FA/2
Senate
Bill 184
By:
Senator Rogers of the 21st
AS
PASSED SENATE
A
BILL TO BE ENTITLED
AN ACT
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 new definitions; to modify the computation
of deductible business expenses; to provide for related matters; 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 adding a new paragraph to subsection (b) of Code Section
48-7-21 to read as follows:
"(15)
Georgia taxable income shall be increased by the amount of the payments,
compensation, or other economic benefit disallowed by Code Section
48-7-21.1."
SECTION
2.
Said
chapter is further amended by revising Code Section 48-7-21.1, relating to
compensation paid by taxpayer disallowed as a business expense, as
follows:
"48-7-21.1
(a)
As used in this Code section, the term:
(1)
'Authorized employee' means any individual
authorized
whose
hiring for employment
or continuing
employment in the United States
as defined
in paragraph (2) of subsection (a)
does not
violate the provisions of 8 U.S.C. Section
1324a.
(2)
'Basic pilot program' shall mean the electronic verification of a work
authorization program of the Illegal Immigrant Reform and Immigrant
Responsibility Act of 1996, P. L. 104-208, Division C, Section 1324a note, and
operated by the United States Department of Homeland Security.
(2)(3)
'Labor services' means the physical performance of services in this
state.
(b)
On or after January 1, 2008, no
wages
payment or
compensation or
other
remuneration,
including but not limited to wages, salaries, bonuses, benefits, in-kind
exchanges, expenses, or any other economic benefit,
paid for labor services to an individual
of $600.00
or more per annum
totaling
$600.00 or more in a taxable year, may be
claimed and allowed as a deductible business expense for state income tax
purposes by a taxpayer unless such individual is an authorized employee. The
provisions of this subsection shall apply whether or not an Internal Revenue
Service Form 1099
or Form
W-2 is issued in conjunction with
the
wages
such payments,
compensation, or
other
remuneration.
(c)
This Code section shall not apply to any business
domiciled
in this state
which:
is
(1)
Has enrolled and participates in the basic pilot program;
or
(2)
Is exempt from compliance with federal
employment verification procedures under federal law which makes the employment
of unauthorized aliens unlawful.
(d)
This Code section shall not apply to any individual hired by the taxpayer prior
to January 1, 2008.
(e)
This Code section shall not apply to any taxpayer where the individual being
paid is not directly compensated or employed by said taxpayer.
(f)
This Code section shall not apply to
wages
payments,
compensation, or
other
remuneration paid for labor services to any individual who holds and presents to
the taxpayer a valid license or identification card issued by the Georgia
Department of Driver Services.
(g)
The commissioner is authorized to prescribe forms and promulgate rules and
regulations deemed necessary in order to administer and effectuate this Code
section."
SECTION
3.
Said
chapter is further amended by adding a new paragraph to subsection (b) of Code
Section 48-7-27, relating to the computation of taxable net income, to read as
follows:
"(12)
Georgia taxable income shall be increased by the amount of the payments,
compensation, or other economic benefit disallowed by Code Section
48-7-21.1."
SECTION
4.
Said
chapter is further amended by adding a new paragraph to Code Section 48-7-100,
relating to definitions regarding current income tax payment, to read as
follows:
"(11)
'Withholding agent' means any person required to deduct and withhold any tax
under the provisions of Code Section 48-7-101."
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.