| 11 | 7 | | taxation, so as to require the state revenue commissioner to contract with the Board of2 |
|---|
| 12 | 8 | | Trustees of the Employees' Retirement System of Georgia to offer certain county tax3 |
|---|
| 13 | 9 | | commissioners who are not eligible for any retirement system or county 401(k) or 457(b)4 |
|---|
| 14 | 10 | | plan the option to participate in a state administered deferred compensation plan; to provide5 |
|---|
| 15 | 11 | | for a limited state match of contributions; to provide for terms and conditions; to revise the6 |
|---|
| 16 | 12 | | terms "Internal Revenue Code" and "Internal Revenue Code of 1986" and thereby7 |
|---|
| 17 | 13 | | incorporate certain provisions of the federal law into Georgia law; to revise the rates of8 |
|---|
| 18 | 14 | | taxation on income on individuals, estates, and trusts; to revise certain annual determinations;9 |
|---|
| 19 | 15 | | to revise certain exemptions and deductions; to provide for an income tax credit for certain10 |
|---|
| 20 | 16 | | taxpayers; to revise the definition of "force majeure" to include a pandemic, as relative to tax11 |
|---|
| 21 | 17 | | credits for jobs associated with large-scale projects; to limit the applicability of such term;12 |
|---|
| 22 | 18 | | to extend the sunset date for a tax credit for certain medical preceptor rotations; to provide13 |
|---|
| 23 | 19 | | for the taxation of the sale or purchase of specified digital products, other digital goods, and14 |
|---|
| 24 | 20 | | digital codes; to provide for procedures, conditions, and limitations; to revise and provide for15 |
|---|
| 25 | 21 | | definitions and exemptions; to provide for related matters; to provide for effective dates and16 |
|---|
| 38 | 31 | | (a) As used in this Code section, the term 'eligible county tax commissioner' means any25 |
|---|
| 39 | 32 | | county tax commissioner or tax collector who is compensated pursuant to Code Section26 |
|---|
| 40 | 33 | | 48-5-183 and, as of March 1, 2023, was not eligible to participate in any:27 |
|---|
| 41 | 34 | | (1) Retirement system, as such term is defined in Code Section 47-20-3; or28 |
|---|
| 42 | 35 | | (2) Deferred compensation plan offered by the county that utilizes Section 401(k) or29 |
|---|
| 43 | 36 | | 457(b) of the United States Internal Revenue Code of 1986.30 |
|---|
| 44 | 37 | | (b) The state revenue commissioner shall contract with the Board of Trustees of the31 |
|---|
| 45 | 38 | | Employees' Retirement System of Georgia for the administration of a deferred32 |
|---|
| 46 | 39 | | compensation plan offered as a state benefit for eligible county tax commissioners as33 |
|---|
| 47 | 40 | | provided for in this Code section.34 |
|---|
| 48 | 41 | | (c)(1) Subject to the contract required under subsection (b) of this Code section, the35 |
|---|
| 49 | 42 | | Board of Trustees of the Employees' Retirement System of Georgia shall investigate and36 |
|---|
| 50 | 43 | | approve a deferred compensation plan that offers to eligible county tax commissioners37 |
|---|
| 51 | 44 | | income tax benefits in connection with plans authorized by the United States Internal38 |
|---|
| 52 | 45 | | Revenue Code of 1986, so that compensation deferred under such plan shall not be39 |
|---|
| 53 | 46 | | included for purposes of computation of any federal income tax withheld on behalf of any40 |
|---|
| 54 | 47 | | such tax commissioner or payable by such tax commissioner before any deferred payment41 |
|---|
| 57 | 49 | | - 3 - |
|---|
| 58 | 50 | | state withholding tax so long as such contributions are not includable in gross income for43 |
|---|
| 59 | 51 | | federal income tax purposes.44 |
|---|
| 60 | 52 | | (2) Notwithstanding any conflicting provisions of paragraph (1) of this subsection, for45 |
|---|
| 61 | 53 | | any deferred compensation plan established pursuant to said paragraph, the Board of46 |
|---|
| 62 | 54 | | Trustees of the Employees' Retirement System of Georgia shall be authorized to include47 |
|---|
| 63 | 55 | | as an option for eligible county tax commissioners a qualified Roth contribution program48 |
|---|
| 64 | 56 | | in accordance with Section 402A of the United States Internal Revenue Code of 1986.49 |
|---|
| 65 | 57 | | (d)(1) On and after July 1, 2023, for any eligible county tax commissioner who50 |
|---|
| 66 | 58 | | contributes a percentage from his or her minimum annual salary paid by the county51 |
|---|
| 67 | 59 | | pursuant to paragraphs (1) and (2) of subsection (b) of Code Section 48-5-183 into the52 |
|---|
| 68 | 60 | | deferred compensation plan established under this Code section, the state shall contribute53 |
|---|
| 69 | 61 | | an equal amount into such eligible county tax commissioner's plan account, up to a54 |
|---|
| 70 | 62 | | maximum of 5 percent; provided, however, that all state contributions to plan accounts55 |
|---|
| 71 | 63 | | shall be subject to limitations imposed by federal law.56 |
|---|
| 72 | 64 | | (2) Each eligible county tax commissioner may make such additional contributions as57 |
|---|
| 73 | 65 | | he or she desires, subject to limitations imposed by federal law.58 |
|---|
| 74 | 66 | | (e) The Board of Trustees of the Employees' Retirement System of Georgia and the state59 |
|---|
| 75 | 67 | | revenue commissioner shall be entitled to impose requirements for the withholding and60 |
|---|
| 76 | 68 | | remittance of contributions by county governing authorities in order to effectuate this Code61 |
|---|
| 77 | 69 | | section and comply with state and federal law.62 |
|---|
| 78 | 70 | | (f) Any eligible county tax commissioner who becomes eligible to participate in a63 |
|---|
| 79 | 71 | | retirement system or county plan described in paragraph (1) or (2) of subsection (a) of this64 |
|---|
| 80 | 72 | | Code section on or after the effective date of this Code section shall no longer receive the65 |
|---|
| 92 | 81 | | Revenue Code of 1986, as amended, provided for in federal law enacted on or before73 |
|---|
| 93 | 82 | | January 1, 2022 2023, except that Section 108(i), Section 163(e)(5)(F), Section74 |
|---|
| 94 | 83 | | 168(b)(3)(I), Section 168(e)(3)(B)(vii), Section 168(e)(3)(E)(ix), Section 168(e)(8),75 |
|---|
| 95 | 84 | | Section 168(k), Section 168(m), Section 168(n), Section 179(d)(1)(B)(ii), Section 179(f),76 |
|---|
| 96 | 85 | | Section 199, Section 381(c)(20), Section 382(d)(3), Section 810(b)(4), Section 1400L,77 |
|---|
| 97 | 86 | | Section 1400N(d)(1), Section 1400N(f), Section 1400N(j), Section 1400N(k), and Section78 |
|---|
| 98 | 87 | | 1400N(o) of the Internal Revenue Code of 1986, as amended, shall be treated as if they79 |
|---|
| 99 | 88 | | were not in effect, and except that Section 168(e)(7), Section 172(b)(1)(F), and Section80 |
|---|
| 100 | 89 | | 172(i)(1) of the Internal Revenue Code of 1986, as amended, shall be treated as they were81 |
|---|
| 101 | 90 | | in effect before the 2008 enactment of federal Public Law 110-343, and except that82 |
|---|
| 102 | 91 | | Section 163(i)(1) of the Internal Revenue Code of 1986, as amended, shall be treated as83 |
|---|
| 103 | 92 | | it was in effect before the 2009 enactment of federal Public Law 111-5, and except that84 |
|---|
| 104 | 93 | | Section 13(e)(4) of 2009 federal Public Law 111-92 shall be treated as if it was not in85 |
|---|
| 105 | 94 | | effect, and except that Section 118, Section 163(j), and Section 382(k)(1), and Section86 |
|---|
| 106 | 95 | | 174 of the Internal Revenue Code of 1986, as amended, shall be treated as they were in87 |
|---|
| 107 | 96 | | effect before the 2017 enactment of federal Public Law 115-97; provided, however, that88 |
|---|
| 108 | 97 | | all provisions in federal Public Law 117-58 (Infrastructure Investment and Jobs Act) that89 |
|---|
| 109 | 98 | | change or affect in any manner Section 118 shall be treated as if they were in effect, and90 |
|---|
| 110 | 99 | | except that all provisions in federal Public Law 116-136 (CARES Act) that change or91 |
|---|
| 116 | 103 | | Plan Act of 2021) that change or affect in any manner Section 461(l) shall be treated as94 |
|---|
| 117 | 104 | | if they were not in effect, and except that the limitations provided in Section 179(b)(1)95 |
|---|
| 118 | 105 | | shall be $250,000.00 for tax years beginning in 2010, shall be $250,000.00 for tax years96 |
|---|
| 119 | 106 | | beginning in 2011, shall be $250,000.00 for tax years beginning in 2012, shall be97 |
|---|
| 120 | 107 | | $250,000.00 for tax years beginning in 2013, and shall be $500,000.00 for tax years98 |
|---|
| 121 | 108 | | beginning in 2014, and except that the limitations provided in Section 179(b)(2) shall be99 |
|---|
| 122 | 109 | | $800,000.00 for tax years beginning in 2010, shall be $800,000.00 for tax years100 |
|---|
| 123 | 110 | | beginning in 2011, shall be $800,000.00 for tax years beginning in 2012, shall be101 |
|---|
| 124 | 111 | | $800,000.00 for tax years beginning in 2013, and shall be $2 million for tax years102 |
|---|
| 125 | 112 | | beginning in 2014, and provided that Section 1106 of federal Public Law 112-95 as103 |
|---|
| 126 | 113 | | amended by federal Public Law 113-243 shall be treated as if it is in effect, except the104 |
|---|
| 127 | 114 | | phrase 'Code Section 48-2-35 (or, if later, November 15, 2015)' shall be substituted for105 |
|---|
| 128 | 115 | | the phrase 'section 6511(a) of such Code (or, if later, April 15, 2015),' and106 |
|---|
| 129 | 116 | | notwithstanding any other provision in this title, no interest shall be refunded with respect107 |
|---|
| 130 | 117 | | to any claim for refund filed pursuant to Section 1106 of federal Public Law 112-95, and108 |
|---|
| 131 | 118 | | provided that subsection (b) of Section 3 of federal Public Law 114-292 shall be treated109 |
|---|
| 132 | 119 | | as if it is in effect, except the phrase 'Code Section 48-2-35' shall be substituted for the110 |
|---|
| 133 | 120 | | phrase 'section 6511(a) of the Internal Revenue Code of 1986' and the phrase 'such111 |
|---|
| 134 | 121 | | section' shall be substituted for the phrase 'such subsection.' In the event a reference is112 |
|---|
| 135 | 122 | | made in this title to the Internal Revenue Code or the Internal Revenue Code of 1954 as113 |
|---|
| 144 | 129 | | - 6 - |
|---|
| 145 | 130 | | as of January 1, 2022 2023, enacted into law but not yet effective shall become effective120 |
|---|
| 146 | 131 | | for purposes of Georgia taxation on the same dates upon which they become effective for121 |
|---|
| 147 | 132 | | federal tax purposes."122 |
|---|
| 148 | 133 | | SECTION 2-2.123 |
|---|
| 149 | 134 | | Said title is further amended by revising Code Section 48-7-20, relating to individual income124 |
|---|
| 150 | 135 | | tax rates, credit for withholding and other payments, and applicability to estates and trusts,125 |
|---|
| 151 | 136 | | as in effect on January 1, 2024, as follows:126 |
|---|
| 152 | 137 | | "48-7-20.127 |
|---|
| 153 | 138 | | (a) A tax is imposed upon every resident of this state with respect to the Georgia taxable128 |
|---|
| 154 | 139 | | net income of the taxpayer as defined in Code Section 48-7-27. A tax is imposed upon129 |
|---|
| 155 | 140 | | every nonresident with respect to such nonresident's Georgia taxable net income not130 |
|---|
| 156 | 141 | | otherwise exempted which is received by the taxpayer from services performed, property131 |
|---|
| 157 | 142 | | owned, proceeds of any lottery prize awarded by the Georgia Lottery Corporation, or from132 |
|---|
| 158 | 143 | | business carried on in this state. Except as otherwise provided in this chapter, the tax133 |
|---|
| 159 | 144 | | imposed by this subsection shall be levied, collected, and paid annually.134 |
|---|
| 160 | 145 | | (a.1)(1) On and after January 1, 2024, the tax imposed pursuant to subsection (a) of this135 |
|---|
| 161 | 146 | | Code section shall be at the rates provided in subsection (a.2) of this Code section for136 |
|---|
| 162 | 147 | | each respective tax year 5.49 percent for taxable years beginning on or after January 1,137 |
|---|
| 163 | 148 | | 2024; provided, however, that the actual rates for a given year tax year such rate shall be138 |
|---|
| 164 | 149 | | reduced by 0.10 percent annually beginning on January 1, 2025, until the rate reaches139 |
|---|
| 165 | 150 | | 4.99 percent, provided such annual reductions in the tax rate shall be subject to delays as140 |
|---|
| 166 | 151 | | provided in paragraph (2) of this subsection.141 |
|---|
| 167 | 152 | | (2) Each prospective change in the tax rates annual reduction in the tax rate that would142 |
|---|
| 168 | 153 | | otherwise occur as provided in paragraphs (2) through (6) of subsection (a.2) of this Code143 |
|---|
| 169 | 154 | | section paragraph (1) of this subsection shall be delayed by one year for each year that144 |
|---|
| 179 | 161 | | (C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not150 |
|---|
| 180 | 162 | | contain a sum that exceeds the amount of the decrease in state revenue projected to151 |
|---|
| 181 | 163 | | occur as a result of the prospective reduction in the tax rates set to occur the following152 |
|---|
| 182 | 164 | | year.153 |
|---|
| 183 | 165 | | (3) The Office of Planning and Budget shall make the determinations necessary to154 |
|---|
| 184 | 166 | | implement the provisions of paragraph (2) of this subsection and shall report its155 |
|---|
| 185 | 167 | | determinations by December 1 of each year to the department, the Speaker of the House156 |
|---|
| 186 | 168 | | of Representatives, the President of the Senate, and the chairpersons of the House157 |
|---|
| 187 | 169 | | Appropriations Committee, the House Ways and Means Committee, the Senate158 |
|---|
| 188 | 170 | | Appropriations Committee, and the Senate Finance Committee. This paragraph shall not159 |
|---|
| 189 | 171 | | be applicable after the final reduction in the rates occurs as provided in paragraph (6) of160 |
|---|
| 190 | 172 | | subsection (a.2) of this Code section to the rate of 4.99 percent occurs.161 |
|---|
| 191 | 173 | | (a.2) Subject to the provisions of subsection (a.1) of this Code section:162 |
|---|
| 192 | 174 | | (1) For tax years beginning on or after January 1, 2024, the tax imposed pursuant to163 |
|---|
| 193 | 175 | | subsection (a) of this Code section shall be levied at the rate of 5.49 percent;164 |
|---|
| 194 | 176 | | (2) For tax years beginning on or after January 1, 2025, the tax imposed pursuant to165 |
|---|
| 195 | 177 | | subsection (a) of this Code section shall be levied at the rate of 5.39 percent;166 |
|---|
| 196 | 178 | | (3) For tax years beginning on or after January 1, 2026, the tax imposed pursuant to167 |
|---|
| 197 | 179 | | subsection (a) of this Code section shall be levied at the rate of 5.29 percent;168 |
|---|
| 198 | 180 | | (4) For tax years beginning on or after January 1, 2027, the tax imposed pursuant to169 |
|---|
| 199 | 181 | | subsection (a) of this Code section shall be levied at the rate of 5.19 percent;170 |
|---|
| 200 | 182 | | (5) For tax years beginning on or after January 1, 2028, the tax imposed pursuant to171 |
|---|
| 203 | 184 | | - 8 - |
|---|
| 204 | 185 | | (6) For tax years beginning on or after January 1, 2029, the tax imposed pursuant to173 |
|---|
| 205 | 186 | | subsection (a) of this Code section shall be levied at the rate of 4.99 percent.174 |
|---|
| 206 | 187 | | (b)(1) Reserved.175 |
|---|
| 207 | 188 | | (2) To facilitate the computation of the tax by those taxpayers whose federal adjusted176 |
|---|
| 208 | 189 | | gross income together with the adjustments set out in Code Section 48-7-27 for use in177 |
|---|
| 209 | 190 | | arriving at Georgia taxable net income is less than $10,000.00, the commissioner may178 |
|---|
| 210 | 191 | | construct tax tables which may be used by the taxpayers at their option. The tax shown179 |
|---|
| 211 | 192 | | to be due by the tables shall be computed on the bases of the standard deduction and the180 |
|---|
| 212 | 193 | | tax rates specified in paragraph (1) of this subsection. Insofar as practicable, the tables181 |
|---|
| 213 | 194 | | shall produce a tax approximately equivalent to the tax imposed by paragraph (1) of this182 |
|---|
| 214 | 195 | | subsection.183 |
|---|
| 215 | 196 | | (c) The amount deducted and withheld by an employer from the wages of an employee184 |
|---|
| 216 | 197 | | pursuant to Article 5 of this chapter, relating to current income tax payments, shall be185 |
|---|
| 217 | 198 | | allowed the employee as a credit against the tax imposed by this Code section. Amounts186 |
|---|
| 218 | 199 | | paid by an individual as estimated tax under Article 5 of this chapter shall constitute187 |
|---|
| 219 | 200 | | payments on account of the tax imposed by this Code section. The amount withheld or188 |
|---|
| 220 | 201 | | paid during any calendar year shall be allowed as a credit or payment for the taxable year189 |
|---|
| 221 | 202 | | beginning in the calendar year in which the amount is withheld or paid.190 |
|---|
| 222 | 203 | | (d) The tax imposed by this Code section applies to the Georgia taxable net income of191 |
|---|
| 223 | 204 | | estates and trusts, which shall be computed in the same manner as in the case of a single192 |
|---|
| 224 | 205 | | individual. The tax shall be computed on the Georgia taxable net income and shall be paid193 |
|---|
| 225 | 206 | | by the fiduciary."194 |
|---|
| 226 | 207 | | SECTION 2-3.195 |
|---|
| 227 | 208 | | Said title is further amended by revising subsection (b) of Code Section 48-7-26, relating to196 |
|---|
| 235 | 213 | | taxpayer an amount as follows:200 |
|---|
| 236 | 214 | | (1) For each married couple filing a joint return:201 |
|---|
| 237 | 215 | | (A) For taxable years beginning on or after January 1, 2024, $18,500.00;202 |
|---|
| 238 | 216 | | (B) For taxable years beginning on or after January 1, 2026, $20,000.00;203 |
|---|
| 239 | 217 | | (C) For taxable years beginning on or after January 1, 2028, $22,000.00; or204 |
|---|
| 240 | 218 | | (D) For taxable years beginning on or after January 1, 2030, $24,000.00;205 |
|---|
| 241 | 219 | | (2) For each married taxpayer filing a separate return, one-half of the amount of the206 |
|---|
| 242 | 220 | | personal exemption allowed under paragraph (1) of this subsection for the given year;207 |
|---|
| 243 | 221 | | (3) For each single taxpayer or head of household, $12,000.00; and208 |
|---|
| 244 | 222 | | (4) For each dependent of a taxpayer, $3,000.00."209 |
|---|
| 245 | 223 | | SECTION 2-4.210 |
|---|
| 246 | 224 | | Said title is further amended in Code Section 48-7-27, relating to computation of state211 |
|---|
| 247 | 225 | | taxable net income, as in effect on January 1, 2024, by revising paragraph (1) of subsection212 |
|---|
| 248 | 226 | | (a) as follows:213 |
|---|
| 249 | 227 | | "(1) At the taxpayer's election, either:214 |
|---|
| 250 | 228 | | (A) The sum of all itemized nonbusiness deductions used in computing such taxpayer's215 |
|---|
| 251 | 229 | | federal taxable income; or216 |
|---|
| 252 | 230 | | (B) A standard deduction in an amount as follows:217 |
|---|
| 253 | 231 | | (i) In the case of a married couple filing a joint return, $24,000.00; or218 |
|---|
| 254 | 232 | | (ii) In the case of a single taxpayer, head of household, or married taxpayer filing a219 |
|---|
| 255 | 233 | | separate return, $12,000.00;"220 |
|---|
| 256 | 234 | | SECTION 2-5.221 |
|---|
| 259 | 236 | | - 10 - |
|---|
| 260 | 237 | | "48-7-27.1.223 |
|---|
| 261 | 238 | | (a) As used in this Code section, the term 'eligible itemizer' means any resident taxpayer224 |
|---|
| 262 | 239 | | who files an individual income tax return for a taxable year and makes the election under225 |
|---|
| 263 | 240 | | subparagraph (a)(1)(A) of Code Section 48-7-27 to deduct the itemized nonbusiness226 |
|---|
| 264 | 241 | | deductions used in computing such taxpayer's federal taxable income.227 |
|---|
| 265 | 242 | | (b) For taxable years beginning on or after January 1, 2024, each eligible itemizer shall be228 |
|---|
| 266 | 243 | | entitled to a credit in the amount of $300.00 per taxpayer against the tax imposed by Code229 |
|---|
| 267 | 244 | | Section 48-7-20.230 |
|---|
| 268 | 245 | | (c) The tax credit claimed allowed by this Code section shall be deducted from such231 |
|---|
| 269 | 246 | | taxpayer's individual income tax liability, if any, for the tax year in which it is properly232 |
|---|
| 270 | 247 | | claimed; provided, however, that in no event shall:233 |
|---|
| 271 | 248 | | (1) The total amount of the tax credit under this Code section for a taxable year exceed234 |
|---|
| 272 | 249 | | such taxpayer's income tax liability; or235 |
|---|
| 273 | 250 | | (2) Such credit amount be allowed to be carried forward to the taxpayer's succeeding236 |
|---|
| 274 | 251 | | years' tax liability or applied against prior years' tax liability."237 |
|---|
| 275 | 252 | | SECTION 2-6.238 |
|---|
| 276 | 253 | | Said title is further amended by revising subsection (h) of Code Section 48-7-29.22, relating239 |
|---|
| 277 | 254 | | to tax credits for certain medical preceptor rotations, as follows:240 |
|---|
| 278 | 255 | | "(h) This Code section shall stand repealed by operation of law at the last moment of241 |
|---|
| 279 | 256 | | December 31, 2023 2026."242 |
|---|
| 280 | 257 | | SECTION 2-7.243 |
|---|
| 281 | 258 | | Said title is further amended by revising paragraph (3) of subsection (a) of Code Section244 |
|---|
| 282 | 259 | | 48-7-40.24, relating to tax credits for jobs associated with large-scale projects, as follows:245 |
|---|
| 283 | 260 | | "(3) 'Force majeure' means any:246 |
|---|
| 289 | 264 | | tornadoes, hurricanes, lightning, or other natural calamities or acts of God;249 |
|---|
| 290 | 265 | | (C) Acts of war (whether or not declared), carnage, blockade, or embargo;250 |
|---|
| 291 | 266 | | (D) Acts of public enemy, acts or threats of terrorism or threats from terrorists, riot,251 |
|---|
| 292 | 267 | | public disorder, or violent demonstrations;252 |
|---|
| 295 | 269 | | (F) Expropriation, requisition, confiscation, impoundment, seizure, nationalization, or254 |
|---|
| 296 | 270 | | compulsory acquisition of the site or sites of a qualified project or any part thereof; or255 |
|---|
| 297 | 271 | | (G) Pandemic which is an outbreak of a disease that occurs over a wide geographic256 |
|---|
| 298 | 272 | | area, affects a significant proportion of the population, causes a substantial and257 |
|---|
| 299 | 273 | | unforeseeable threat to the public health, and materially impacts the ability to conduct258 |
|---|
| 300 | 274 | | business, provided that this subparagraph shall only apply with respect to a qualified259 |
|---|
| 301 | 275 | | project first certified pursuant to paragraph (2) of subsection (b) of this Code section260 |
|---|
| 302 | 276 | | on or after July 1, 2023;261 |
|---|
| 303 | 277 | | but such term shall not include any event or circumstance that could have been prevented,262 |
|---|
| 304 | 278 | | overcome, or remedied in whole or in part by the taxpayer through the exercise of263 |
|---|
| 305 | 279 | | reasonable diligence and due care, nor shall such term include the unavailability of264 |
|---|
| 306 | 280 | | funds."265 |
|---|
| 307 | 281 | | PART III266 |
|---|
| 308 | 282 | | SECTION 3-1.267 |
|---|
| 309 | 283 | | Said title is further amended in Code Section 48-8-2, relating to definitions, by adding a new268 |
|---|
| 310 | 284 | | subparagraph to paragraph (31) and by adding new paragraphs to read as follows:269 |
|---|
| 311 | 285 | | "(11.2) 'Digital audio-visual works' means any series of related images, together with270 |
|---|
| 312 | 286 | | accompanying sounds, if any and which, when shown in succession, impart an271 |
|---|
| 315 | 288 | | - 12 - |
|---|
| 316 | 289 | | (11.3) 'Digital audio works' means digitized works that result from the fixation of a series273 |
|---|
| 317 | 290 | | of musical, spoken, or other sounds. Such term shall include digitized sound files that are274 |
|---|
| 318 | 291 | | downloaded onto a device and that may be used to alert an end user with respect to a275 |
|---|
| 319 | 292 | | communication.276 |
|---|
| 320 | 293 | | (11.4) 'Digital code' means a key, activation, or enabling code that conveys a right to277 |
|---|
| 321 | 294 | | obtain one or more specified digital goods or other digital goods. Such term shall not278 |
|---|
| 322 | 295 | | include a code that represents a stored monetary value that is deducted from a total as it279 |
|---|
| 323 | 296 | | is used by the purchaser or a redeemable card, gift card, or gift certificate that entitles the280 |
|---|
| 324 | 297 | | holder to select specified digital goods or other digital goods of an indicated cash value."281 |
|---|
| 325 | 298 | | "(15.1) 'End user' means any person other than a person that receives by contract a282 |
|---|
| 326 | 299 | | product transferred electronically for further commercial broadcast, rebroadcast,283 |
|---|
| 327 | 300 | | transmission, retransmission, licensing, relicensing, distribution, redistribution, or284 |
|---|
| 328 | 301 | | exhibition of the product, in whole or in part, to another person or persons."285 |
|---|
| 329 | 302 | | "(16.05) 'Internet access service' shall have the same meaning as such term is defined in286 |
|---|
| 330 | 303 | | 47 U.S.C. Section 151, note."287 |
|---|
| 331 | 304 | | "(20.05) 'Other digital goods' means the following items transferred electronically to an288 |
|---|
| 332 | 305 | | end user:289 |
|---|
| 333 | 306 | | (A) Artwork;290 |
|---|
| 334 | 307 | | (B) Photographs;291 |
|---|
| 335 | 308 | | (C) Periodicals;292 |
|---|
| 336 | 309 | | (D) Newspapers;293 |
|---|
| 337 | 310 | | (E) Magazines;294 |
|---|
| 338 | 311 | | (F) Video or audio greeting cards; or295 |
|---|
| 339 | 312 | | (G) Video games or electronic entertainment."296 |
|---|
| 340 | 313 | | "(E.1)(i) Sales of digital codes.297 |
|---|
| 343 | 315 | | - 13 - |
|---|
| 344 | 316 | | "(34.1)(A) 'Specified digital products' means the following items transferred299 |
|---|
| 345 | 317 | | electronically to an end user:300 |
|---|
| 346 | 318 | | (i) Digital audio-visual works;301 |
|---|
| 347 | 319 | | (ii) Digital audio works; or302 |
|---|
| 348 | 320 | | (iii) Digital books."303 |
|---|
| 349 | 321 | | "(39.2) 'Transferred electronically' means obtained, accessed, or available to be accessed304 |
|---|
| 350 | 322 | | by means other than tangible storage media."305 |
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| 351 | 323 | | SECTION 3-2.306 |
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| 352 | 324 | | Said title is further amended in Code Section 48-8-3, relating to exemptions from sales and307 |
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| 353 | 325 | | use tax, by revising paragraphs (90) and (91) as follows:308 |
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| 354 | 326 | | "(90) Internet access service Reserved;309 |
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| 355 | 327 | | (91) The sale of prewritten computer software which has been transferred electronically310 |
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| 356 | 328 | | to the purchaser or delivered to the purchaser electronically or by means of load and311 |
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| 357 | 329 | | leave; provided, however, that the exemption granted by this paragraph shall not include312 |
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| 358 | 330 | | sales of specified digital products, other digital goods, or digital codes;"313 |
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| 359 | 331 | | SECTION 3-3.314 |
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| 360 | 332 | | Said title is further amended in Code Section 48-8-30, relating to imposition of tax, rates, and315 |
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| 361 | 333 | | collection, by revising subsection (a) as follows:316 |
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| 362 | 334 | | "(a)(1) There is levied and imposed a tax on the retail purchase, retail sale, rental,317 |
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| 363 | 335 | | storage, use, or consumption of tangible personal property and on the services described318 |
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| 364 | 336 | | in this article.319 |
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| 365 | 337 | | (2)(A) There is levied and imposed a tax on the retail purchase or retail sale of320 |
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| 366 | 338 | | specified digital products, other digital goods, or digital codes sold to an end user in this321 |
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| 369 | 340 | | - 14 - |
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| 370 | 341 | | such products, goods, or codes and the transaction is not conditioned upon continued323 |
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| 371 | 342 | | payment by the end user.324 |
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| 372 | 343 | | (B) The tax levied under this paragraph shall apply regardless of whether possession325 |
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| 373 | 344 | | of the specified digital goods, other digital goods, or digital codes is maintained by the326 |
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| 374 | 345 | | seller or a third party.327 |
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| 375 | 346 | | (C) Except as provided otherwise in this article, the tax imposed by this article on328 |
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| 376 | 347 | | specified digital products, other digital goods, and digital codes shall be levied,329 |
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| 377 | 348 | | collected, remitted, and administered in the same manner and at the same rate as is330 |
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| 378 | 349 | | provided in this article for the retail purchase, retail sale, rental, storage, use, or331 |
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| 379 | 350 | | consumption of tangible personal property."332 |
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| 380 | 351 | | SECTION 3-4.333 |
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| 381 | 352 | | Said title is further amended in Code Section 48-8-38, relating to burden of proof on seller334 |
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| 382 | 353 | | as to taxability, certificate that property purchased for resale, requirements of purchaser335 |
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| 383 | 354 | | having certificate, contents, and proof of claimed exemption, by adding a new subsection to336 |
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| 384 | 355 | | read as follows:337 |
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| 385 | 356 | | "(f) A sale of any specified digital product, other digital good, or digital code shall be338 |
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| 386 | 357 | | considered a sale for resale if the specified digital product, other digital good, or digital339 |
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| 387 | 358 | | code is subsequently sold, licensed, leased, broadcast, transmitted, or distributed, in whole340 |
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| 388 | 359 | | or in part, as an integral, inseparable component part of a service or another such product,341 |
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| 389 | 360 | | good, or code by the purchaser of the specified digital product, other digital good, or digital342 |
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| 390 | 361 | | code to an ultimate consumer. The purchaser of the specified digital product, other digital343 |
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| 391 | 362 | | good, or digital code for resale shall maintain records that substantiate such resale in a344 |
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| 397 | 366 | | SECTION 4-1.347 |
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| 398 | 367 | | (a) This Act shall become effective upon its approval by the Governor or upon its becoming348 |
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| 399 | 368 | | law without such approval; provided, however, that:349 |
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| 400 | 369 | | (1) Section 2-1 of this Act shall be applicable to all taxable years beginning on or after350 |
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| 401 | 370 | | January 1, 2022;351 |
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| 402 | 371 | | (2) Sections 2-2 through 2-6 of this Act shall be effective on January 1, 2024, and shall be352 |
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| 403 | 372 | | applicable to all taxable years beginning on or after January 1, 2024;353 |
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| 404 | 373 | | (3) Section 2-7 of this Act shall become effective on July 1, 2023; and354 |
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| 405 | 374 | | (4) Part III of this Act shall become effective on January 1, 2024, and shall be applicable355 |
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| 406 | 375 | | to transactions occurring on or after January 1, 2024.356 |
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| 407 | 376 | | (b) Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not357 |
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| 408 | 377 | | be affected by the passage of this Act and shall continue to be governed by the provisions of358 |
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| 409 | 378 | | Title 48 of the Official Code of Georgia Annotated as they existed for such prior taxable359 |
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| 410 | 379 | | years.360 |
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| 411 | 380 | | SECTION 4-2.361 |
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| 412 | 381 | | All laws and parts of laws in conflict with this Act are repealed.362 |
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