LC 43 2865S
- 1 -
The House Committee on Rules offers the following substitute to SB 56:
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and1
taxation, so as to require the state revenue commissioner to contract with the Board of2
Trustees of the Employees' Retirement System of Georgia to offer certain county tax3
commissioners who are not eligible for any retirement system or county 401(k) or 457(b)4
plan the option to participate in a state administered deferred compensation plan; to provide5
for a limited state match of contributions; to provide for terms and conditions; to revise the6
terms "Internal Revenue Code" and "Internal Revenue Code of 1986" and thereby7
incorporate certain provisions of the federal law into Georgia law; to revise the rates of8
taxation on income on individuals, estates, and trusts; to revise certain annual determinations;9
to revise certain exemptions and deductions; to provide for an income tax credit for certain10
taxpayers; to revise the definition of "force majeure" to include a pandemic, as relative to tax11
credits for jobs associated with large-scale projects; to limit the applicability of such term;12
to extend the sunset date for a tax credit for certain medical preceptor rotations; to provide13
for the taxation of the sale or purchase of specified digital products, other digital goods, and14
digital codes; to provide for procedures, conditions, and limitations; to revise and provide for15
definitions and exemptions; to provide for related matters; to provide for effective dates and16
applicability; to repeal conflicting laws; and for other purposes.17 LC 43 2865S
- 2 -
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:18
PART I19
SECTION 1-1.20
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is21
amended in Part 3 of Article 3 of Chapter 5, relating to compensation for county tax officials22
and administration, by adding a new Code section to read as follows:23
"48-5-184.24
(a) As used in this Code section, the term 'eligible county tax commissioner' means any25
county tax commissioner or tax collector who is compensated pursuant to Code Section26
48-5-183 and, as of March 1, 2023, was not eligible to participate in any:27
(1) Retirement system, as such term is defined in Code Section 47-20-3; or28
(2) Deferred compensation plan offered by the county that utilizes Section 401(k) or29
457(b) of the United States Internal Revenue Code of 1986.30
(b) The state revenue commissioner shall contract with the Board of Trustees of the31
Employees' Retirement System of Georgia for the administration of a deferred32
compensation plan offered as a state benefit for eligible county tax commissioners as33
provided for in this Code section.34
(c)(1) Subject to the contract required under subsection (b) of this Code section, the35
Board of Trustees of the Employees' Retirement System of Georgia shall investigate and36
approve a deferred compensation plan that offers to eligible county tax commissioners37
income tax benefits in connection with plans authorized by the United States Internal38
Revenue Code of 1986, so that compensation deferred under such plan shall not be39
included for purposes of computation of any federal income tax withheld on behalf of any40
such tax commissioner or payable by such tax commissioner before any deferred payment41
date. All contributions to such deferred compensation plans shall also be exempt from42 LC 43 2865S
- 3 -
state withholding tax so long as such contributions are not includable in gross income for43
federal income tax purposes.44
(2) Notwithstanding any conflicting provisions of paragraph (1) of this subsection, for45
any deferred compensation plan established pursuant to said paragraph, the Board of46
Trustees of the Employees' Retirement System of Georgia shall be authorized to include47
as an option for eligible county tax commissioners a qualified Roth contribution program48
in accordance with Section 402A of the United States Internal Revenue Code of 1986.49
(d)(1) On and after July 1, 2023, for any eligible county tax commissioner who50
contributes a percentage from his or her minimum annual salary paid by the county51
pursuant to paragraphs (1) and (2) of subsection (b) of Code Section 48-5-183 into the52
deferred compensation plan established under this Code section, the state shall contribute53
an equal amount into such eligible county tax commissioner's plan account, up to a54
maximum of 5 percent; provided, however, that all state contributions to plan accounts55
shall be subject to limitations imposed by federal law.56
(2) Each eligible county tax commissioner may make such additional contributions as57
he or she desires, subject to limitations imposed by federal law.58
(e) The Board of Trustees of the Employees' Retirement System of Georgia and the state59
revenue commissioner shall be entitled to impose requirements for the withholding and60
remittance of contributions by county governing authorities in order to effectuate this Code61
section and comply with state and federal law.62
(f) Any eligible county tax commissioner who becomes eligible to participate in a63
retirement system or county plan described in paragraph (1) or (2) of subsection (a) of this64
Code section on or after the effective date of this Code section shall no longer receive the65
state contributions paid pursuant to subsection (d) of this Code section."66 LC 43 2865S
- 4 -
PART II67
SECTION 2-1.68
Said title is further amended by revising paragraph (14) of Code Section 48-1-2, relating to69
definitions, as follows:70
"(14) 'Internal Revenue Code' or 'Internal Revenue Code of 1986' means for taxable years71
beginning on or after January 1, 2021 2022, the provisions of the United States Internal72
Revenue Code of 1986, as amended, provided for in federal law enacted on or before73
January 1, 2022 2023, except that Section 108(i), Section 163(e)(5)(F), Section74
168(b)(3)(I), Section 168(e)(3)(B)(vii), Section 168(e)(3)(E)(ix), Section 168(e)(8),75
Section 168(k), Section 168(m), Section 168(n), Section 179(d)(1)(B)(ii), Section 179(f),76
Section 199, Section 381(c)(20), Section 382(d)(3), Section 810(b)(4), Section 1400L,77
Section 1400N(d)(1), Section 1400N(f), Section 1400N(j), Section 1400N(k), and Section78
1400N(o) of the Internal Revenue Code of 1986, as amended, shall be treated as if they79
were not in effect, and except that Section 168(e)(7), Section 172(b)(1)(F), and Section80
172(i)(1) of the Internal Revenue Code of 1986, as amended, shall be treated as they were81
in effect before the 2008 enactment of federal Public Law 110-343, and except that82
Section 163(i)(1) of the Internal Revenue Code of 1986, as amended, shall be treated as83
it was in effect before the 2009 enactment of federal Public Law 111-5, and except that84
Section 13(e)(4) of 2009 federal Public Law 111-92 shall be treated as if it was not in85
effect, and except that Section 118, Section 163(j), and Section 382(k)(1), and Section86
174 of the Internal Revenue Code of 1986, as amended, shall be treated as they were in87
effect before the 2017 enactment of federal Public Law 115-97; provided, however, that88
all provisions in federal Public Law 117-58 (Infrastructure Investment and Jobs Act) that89
change or affect in any manner Section 118 shall be treated as if they were in effect, and90
except that all provisions in federal Public Law 116-136 (CARES Act) that change or91
affect in any manner Section 172 and Section 461(l) shall be treated as if they were not92 LC 43 2865S
- 5 -
in effect, and except that all provisions in federal Public Law 117-2 (American Rescue93
Plan Act of 2021) that change or affect in any manner Section 461(l) shall be treated as94
if they were not in effect, and except that the limitations provided in Section 179(b)(1)95
shall be $250,000.00 for tax years beginning in 2010, shall be $250,000.00 for tax years96
beginning in 2011, shall be $250,000.00 for tax years beginning in 2012, shall be97
$250,000.00 for tax years beginning in 2013, and shall be $500,000.00 for tax years98
beginning in 2014, and except that the limitations provided in Section 179(b)(2) shall be99
$800,000.00 for tax years beginning in 2010, shall be $800,000.00 for tax years100
beginning in 2011, shall be $800,000.00 for tax years beginning in 2012, shall be101
$800,000.00 for tax years beginning in 2013, and shall be $2 million for tax years102
beginning in 2014, and provided that Section 1106 of federal Public Law 112-95 as103
amended by federal Public Law 113-243 shall be treated as if it is in effect, except the104
phrase 'Code Section 48-2-35 (or, if later, November 15, 2015)' shall be substituted for105
the phrase 'section 6511(a) of such Code (or, if later, April 15, 2015),' and106
notwithstanding any other provision in this title, no interest shall be refunded with respect107
to any claim for refund filed pursuant to Section 1106 of federal Public Law 112-95, and108
provided that subsection (b) of Section 3 of federal Public Law 114-292 shall be treated109
as if it is in effect, except the phrase 'Code Section 48-2-35' shall be substituted for the110
phrase 'section 6511(a) of the Internal Revenue Code of 1986' and the phrase 'such111
section' shall be substituted for the phrase 'such subsection.' In the event a reference is112
made in this title to the Internal Revenue Code or the Internal Revenue Code of 1954 as113
it existed on a specific date prior to January 1, 2022 2023, the term means the provisions114
of the Internal Revenue Code or the Internal Revenue Code of 1954 as it existed on the115
prior date. Unless otherwise provided in this title, any term used in this title shall have116
the same meaning as when used in a comparable provision or context in the Internal117
Revenue Code of 1986, as amended. For taxable years beginning on or after January 1,118
2021 2022, provisions of the Internal Revenue Code of 1986, as amended, which were119 LC 43 2865S
- 6 -
as of January 1, 2022 2023, enacted into law but not yet effective shall become effective120
for purposes of Georgia taxation on the same dates upon which they become effective for121
federal tax purposes."122
SECTION 2-2.123
Said title is further amended by revising Code Section 48-7-20, relating to individual income124
tax rates, credit for withholding and other payments, and applicability to estates and trusts,125
as in effect on January 1, 2024, as follows:126
"48-7-20.127
(a) A tax is imposed upon every resident of this state with respect to the Georgia taxable128
net income of the taxpayer as defined in Code Section 48-7-27. A tax is imposed upon129
every nonresident with respect to such nonresident's Georgia taxable net income not130
otherwise exempted which is received by the taxpayer from services performed, property131
owned, proceeds of any lottery prize awarded by the Georgia Lottery Corporation, or from132
business carried on in this state. Except as otherwise provided in this chapter, the tax133
imposed by this subsection shall be levied, collected, and paid annually.134
(a.1)(1) On and after January 1, 2024, the tax imposed pursuant to subsection (a) of this135
Code section shall be at the rates provided in subsection (a.2) of this Code section for136
each respective tax year 5.49 percent for taxable years beginning on or after January 1,137
2024; provided, however, that the actual rates for a given year tax year such rate shall be138
reduced by 0.10 percent annually beginning on January 1, 2025, until the rate reaches139
4.99 percent, provided such annual reductions in the tax rate shall be subject to delays as140
provided in paragraph (2) of this subsection.141
(2) Each prospective change in the tax rates annual reduction in the tax rate that would142
otherwise occur as provided in paragraphs (2) through (6) of subsection (a.2) of this Code143
section paragraph (1) of this subsection shall be delayed by one year for each year that144
any of the following are true as of December 1:145 LC 43 2865S
- 7 -
(A) The Governor's revenue estimate for the succeeding fiscal year is not at least 3146
percent above the Governor's revenue estimate for the present fiscal year;147
(B) The prior fiscal year's net revenue collection was not higher than each of the148
preceding five three fiscal years' net tax revenue collection; or149
(C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not150
contain a sum that exceeds the amount of the decrease in state revenue projected to151
occur as a result of the prospective reduction in the tax rates set to occur the following152
year.153
(3) The Office of Planning and Budget shall make the determinations necessary to154
implement the provisions of paragraph (2) of this subsection and shall report its155
determinations by December 1 of each year to the department, the Speaker of the House156
of Representatives, the President of the Senate, and the chairpersons of the House157
Appropriations Committee, the House Ways and Means Committee, the Senate158
Appropriations Committee, and the Senate Finance Committee. This paragraph shall not159
be applicable after the final reduction in the rates occurs as provided in paragraph (6) of160
subsection (a.2) of this Code section to the rate of 4.99 percent occurs.161
(a.2) Subject to the provisions of subsection (a.1) of this Code section:162
(1) For tax years beginning on or after January 1, 2024, the tax imposed pursuant to163
subsection (a) of this Code section shall be levied at the rate of 5.49 percent;164
(2) For tax years beginning on or after January 1, 2025, the tax imposed pursuant to165
subsection (a) of this Code section shall be levied at the rate of 5.39 percent;166
(3) For tax years beginning on or after January 1, 2026, the tax imposed pursuant to167
subsection (a) of this Code section shall be levied at the rate of 5.29 percent;168
(4) For tax years beginning on or after January 1, 2027, the tax imposed pursuant to169
subsection (a) of this Code section shall be levied at the rate of 5.19 percent;170
(5) For tax years beginning on or after January 1, 2028, the tax imposed pursuant to171
subsection (a) of this Code section shall be levied at the rate of 5.09 percent; and172 LC 43 2865S
- 8 -
(6) For tax years beginning on or after January 1, 2029, the tax imposed pursuant to173
subsection (a) of this Code section shall be levied at the rate of 4.99 percent.174
(b)(1) Reserved.175
(2) To facilitate the computation of the tax by those taxpayers whose federal adjusted176
gross income together with the adjustments set out in Code Section 48-7-27 for use in177
arriving at Georgia taxable net income is less than $10,000.00, the commissioner may178
construct tax tables which may be used by the taxpayers at their option. The tax shown179
to be due by the tables shall be computed on the bases of the standard deduction and the180
tax rates specified in paragraph (1) of this subsection. Insofar as practicable, the tables181
shall produce a tax approximately equivalent to the tax imposed by paragraph (1) of this182
subsection.183
(c) The amount deducted and withheld by an employer from the wages of an employee184
pursuant to Article 5 of this chapter, relating to current income tax payments, shall be185
allowed the employee as a credit against the tax imposed by this Code section. Amounts186
paid by an individual as estimated tax under Article 5 of this chapter shall constitute187
payments on account of the tax imposed by this Code section. The amount withheld or188
paid during any calendar year shall be allowed as a credit or payment for the taxable year189
beginning in the calendar year in which the amount is withheld or paid.190
(d) The tax imposed by this Code section applies to the Georgia taxable net income of191
estates and trusts, which shall be computed in the same manner as in the case of a single192
individual. The tax shall be computed on the Georgia taxable net income and shall be paid193
by the fiduciary."194
SECTION 2-3.195
Said title is further amended by revising subsection (b) of Code Section 48-7-26, relating to196
personal exemptions from income tax, as in effect on January 1, 2024, as follows:197 LC 43 2865S
- 9 -
"(b) Each taxpayer shall be allowed as a deduction in computing his or her Georgia taxable198
income a personal exemption in the amount of $3,000.00 for each dependent of such199
taxpayer an amount as follows:200
(1) For each married couple filing a joint return:201
(A) For taxable years beginning on or after January 1, 2024, $18,500.00;202
(B) For taxable years beginning on or after January 1, 2026, $20,000.00;203
(C) For taxable years beginning on or after January 1, 2028, $22,000.00; or204
(D) For taxable years beginning on or after January 1, 2030, $24,000.00;205
(2) For each married taxpayer filing a separate return, one-half of the amount of the206
personal exemption allowed under paragraph (1) of this subsection for the given year;207
(3) For each single taxpayer or head of household, $12,000.00; and208
(4) For each dependent of a taxpayer, $3,000.00."209
SECTION 2-4.210
Said title is further amended in Code Section 48-7-27, relating to computation of state211
taxable net income, as in effect on January 1, 2024, by revising paragraph (1) of subsection212
(a) as follows:213
"(1) At the taxpayer's election, either:214
(A) The sum of all itemized nonbusiness deductions used in computing such taxpayer's215
federal taxable income; or216
(B) A standard deduction in an amount as follows:217
(i) In the case of a married couple filing a joint return, $24,000.00; or218
(ii) In the case of a single taxpayer, head of household, or married taxpayer filing a219
separate return, $12,000.00;"220
SECTION 2-5.221
Said title is further amended by adding a new Code section to read as follows:222 LC 43 2865S
- 10 -
"48-7-27.1.223
(a) As used in this Code section, the term 'eligible itemizer' means any resident taxpayer224
who files an individual income tax return for a taxable year and makes the election under225
subparagraph (a)(1)(A) of Code Section 48-7-27 to deduct the itemized nonbusiness226
deductions used in computing such taxpayer's federal taxable income.227
(b) For taxable years beginning on or after January 1, 2024, each eligible itemizer shall be228
entitled to a credit in the amount of $300.00 per taxpayer against the tax imposed by Code229
Section 48-7-20.230
(c) The tax credit claimed allowed by this Code section shall be deducted from such231
taxpayer's individual income tax liability, if any, for the tax year in which it is properly232
claimed; provided, however, that in no event shall:233
(1) The total amount of the tax credit under this Code section for a taxable year exceed234
such taxpayer's income tax liability; or235
(2) Such credit amount be allowed to be carried forward to the taxpayer's succeeding236
years' tax liability or applied against prior years' tax liability."237
SECTION 2-6.238
Said title is further amended by revising subsection (h) of Code Section 48-7-29.22, relating239
to tax credits for certain medical preceptor rotations, as follows:240
"(h) This Code section shall stand repealed by operation of law at the last moment of241
December 31, 2023 2026."242
SECTION 2-7.243
Said title is further amended by revising paragraph (3) of subsection (a) of Code Section244
48-7-40.24, relating to tax credits for jobs associated with large-scale projects, as follows:245
"(3) 'Force majeure' means any:246
(A) Explosions, implosions, fires, conflagrations, accidents, or contamination;247 LC 43 2865S
- 11 -
(B) Unusual and unforeseeable weather conditions such as floods, torrential rain, hail,248
tornadoes, hurricanes, lightning, or other natural calamities or acts of God;249
(C) Acts of war (whether or not declared), carnage, blockade, or embargo;250
(D) Acts of public enemy, acts or threats of terrorism or threats from terrorists, riot,251
public disorder, or violent demonstrations;252
(E) Strikes or other labor disturbances; or253
(F) Expropriation, requisition, confiscation, impoundment, seizure, nationalization, or254
compulsory acquisition of the site or sites of a qualified project or any part thereof; or255
(G) Pandemic which is an outbreak of a disease that occurs over a wide geographic256
area, affects a significant proportion of the population, causes a substantial and257
unforeseeable threat to the public health, and materially impacts the ability to conduct258
business, provided that this subparagraph shall only apply with respect to a qualified259
project first certified pursuant to paragraph (2) of subsection (b) of this Code section260
on or after July 1, 2023;261
but such term shall not include any event or circumstance that could have been prevented,262
overcome, or remedied in whole or in part by the taxpayer through the exercise of263
reasonable diligence and due care, nor shall such term include the unavailability of264
funds."265
PART III266
SECTION 3-1.267
Said title is further amended in Code Section 48-8-2, relating to definitions, by adding a new268
subparagraph to paragraph (31) and by adding new paragraphs to read as follows:269
"(11.2) 'Digital audio-visual works' means any series of related images, together with270
accompanying sounds, if any and which, when shown in succession, impart an271
impression of motion.272 LC 43 2865S
- 12 -
(11.3) 'Digital audio works' means digitized works that result from the fixation of a series273
of musical, spoken, or other sounds. Such term shall include digitized sound files that are274
downloaded onto a device and that may be used to alert an end user with respect to a275
communication.276
(11.4) 'Digital code' means a key, activation, or enabling code that conveys a right to277
obtain one or more specified digital goods or other digital goods. Such term shall not278
include a code that represents a stored monetary value that is deducted from a total as it279
is used by the purchaser or a redeemable card, gift card, or gift certificate that entitles the280
holder to select specified digital goods or other digital goods of an indicated cash value."281
"(15.1) 'End user' means any person other than a person that receives by contract a282
product transferred electronically for further commercial broadcast, rebroadcast,283
transmission, retransmission, licensing, relicensing, distribution, redistribution, or284
exhibition of the product, in whole or in part, to another person or persons."285
"(16.05) 'Internet access service' shall have the same meaning as such term is defined in286
47 U.S.C. Section 151, note."287
"(20.05) 'Other digital goods' means the following items transferred electronically to an288
end user:289
(A) Artwork;290
(B) Photographs;291
(C) Periodicals;292
(D) Newspapers;293
(E) Magazines;294
(F) Video or audio greeting cards; or295
(G) Video games or electronic entertainment."296
"(E.1)(i) Sales of digital codes.297
(ii) Sales of specified digital products or other digital goods;"298 LC 43 2865S
- 13 -
"(34.1)(A) 'Specified digital products' means the following items transferred299
electronically to an end user:300
(i) Digital audio-visual works;301
(ii) Digital audio works; or302
(iii) Digital books."303
"(39.2) 'Transferred electronically' means obtained, accessed, or available to be accessed304
by means other than tangible storage media."305
SECTION 3-2.306
Said title is further amended in Code Section 48-8-3, relating to exemptions from sales and307
use tax, by revising paragraphs (90) and (91) as follows:308
"(90) Internet access service Reserved;309
(91) The sale of prewritten computer software which has been transferred electronically310
to the purchaser or delivered to the purchaser electronically or by means of load and311
leave; provided, however, that the exemption granted by this paragraph shall not include312
sales of specified digital products, other digital goods, or digital codes;"313
SECTION 3-3.314
Said title is further amended in Code Section 48-8-30, relating to imposition of tax, rates, and315
collection, by revising subsection (a) as follows:316
"(a)(1) There is levied and imposed a tax on the retail purchase, retail sale, rental,317
storage, use, or consumption of tangible personal property and on the services described318
in this article.319
(2)(A) There is levied and imposed a tax on the retail purchase or retail sale of320
specified digital products, other digital goods, or digital codes sold to an end user in this321
state, provided that such end user receives or will receive the right of permanent use of322 LC 43 2865S
- 14 -
such products, goods, or codes and the transaction is not conditioned upon continued323
payment by the end user.324
(B) The tax levied under this paragraph shall apply regardless of whether possession325
of the specified digital goods, other digital goods, or digital codes is maintained by the326
seller or a third party.327
(C) Except as provided otherwise in this article, the tax imposed by this article on328
specified digital products, other digital goods, and digital codes shall be levied,329
collected, remitted, and administered in the same manner and at the same rate as is330
provided in this article for the retail purchase, retail sale, rental, storage, use, or331
consumption of tangible personal property."332
SECTION 3-4.333
Said title is further amended in Code Section 48-8-38, relating to burden of proof on seller334
as to taxability, certificate that property purchased for resale, requirements of purchaser335
having certificate, contents, and proof of claimed exemption, by adding a new subsection to336
read as follows:337
"(f) A sale of any specified digital product, other digital good, or digital code shall be338
considered a sale for resale if the specified digital product, other digital good, or digital339
code is subsequently sold, licensed, leased, broadcast, transmitted, or distributed, in whole340
or in part, as an integral, inseparable component part of a service or another such product,341
good, or code by the purchaser of the specified digital product, other digital good, or digital342
code to an ultimate consumer. The purchaser of the specified digital product, other digital343
good, or digital code for resale shall maintain records that substantiate such resale in a344
manner consistent with this subsection, as determined by the commissioner."345 LC 43 2865S
- 15 -
PART IV346
SECTION 4-1.347
(a) This Act shall become effective upon its approval by the Governor or upon its becoming348
law without such approval; provided, however, that:349
(1) Section 2-1 of this Act shall be applicable to all taxable years beginning on or after350
January 1, 2022;351
(2) Sections 2-2 through 2-6 of this Act shall be effective on January 1, 2024, and shall be352
applicable to all taxable years beginning on or after January 1, 2024;353
(3) Section 2-7 of this Act shall become effective on July 1, 2023; and354
(4) Part III of this Act shall become effective on January 1, 2024, and shall be applicable355
to transactions occurring on or after January 1, 2024.356
(b) Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not357
be affected by the passage of this Act and shall continue to be governed by the provisions of358
Title 48 of the Official Code of Georgia Annotated as they existed for such prior taxable359
years.360
SECTION 4-2.361
All laws and parts of laws in conflict with this Act are repealed.362