| 19 | 7 | | taxation, so as to authorize certain local governing authorities to provide temporary tax relief2 |
|---|
| 20 | 8 | | from ad valorem taxes levied for the harvest or sale of standing timber from eligible timber3 |
|---|
| 21 | 9 | | property that was severely damaged or destroyed in certain disaster areas; to provide for4 |
|---|
| 22 | 10 | | conditions and procedures; to provide for the establishment of a certification form; to provide5 |
|---|
| 23 | 11 | | for audits; to provide for grants to such local governing authorities to offset the loss of certain6 |
|---|
| 24 | 12 | | revenues resulting from certain disaster damage to standing timber and such temporary tax7 |
|---|
| 25 | 13 | | relief; to provide for an appropriations contingency; to provide for a grant cap; to provide for8 |
|---|
| 26 | 14 | | the calculation of equalized adjusted property tax digests; to require the establishment of9 |
|---|
| 27 | 15 | | criteria regarding damage or destruction; to exclude from the calculation of taxable net10 |
|---|
| 28 | 16 | | income certain disaster relief or assistance grant program payments and crop insurance11 |
|---|
| 29 | 17 | | proceeds for agricultural losses suffered due to Hurricane Helene; to provide for refundable12 |
|---|
| 30 | 18 | | income tax credits for certain timber producers based on certain casualty losses related to13 |
|---|
| 31 | 19 | | Hurricane Helene; to provide for transferability of such credits; to provide for an aggregate14 |
|---|
| 32 | 20 | | annual cap; to provide for terms and conditions; to provide for credit preapproval; to provide15 |
|---|
| 33 | 21 | | for legislative findings; to provide for definitions; to provide for a sales and use tax16 |
|---|
| 34 | 22 | | exemption for a limited period of time for building materials used to repair or replace17 |
|---|
| 35 | 23 | | greenhouses and real property structures or fixtures used exclusively for the production of18 |
|---|
| 40 | 26 | | matters; to provide for a short title and legislative findings and intent; to provide for an20 |
|---|
| 41 | 27 | | effective date; to repeal conflicting laws; and for other purposes.21 |
|---|
| 42 | 28 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:22 |
|---|
| 43 | 29 | | PART I23 |
|---|
| 44 | 30 | | SECTION 1-1.24 |
|---|
| 45 | 31 | | This part shall be known and may be cited as the "Timberlands Recovery, Exemption, and25 |
|---|
| 46 | 32 | | Earnings Stability (TREES) Act."26 |
|---|
| 47 | 33 | | SECTION 1-2.27 |
|---|
| 48 | 34 | | The General Assembly finds that:28 |
|---|
| 49 | 35 | | (1) Hurricane Helene has had a catastrophic impact on the citizens and the economy of29 |
|---|
| 50 | 36 | | many areas in this state, has particularly devastated the timber industry on which the30 |
|---|
| 51 | 37 | | citizens of southwest Georgia are heavily dependent for their livelihood by reducing or31 |
|---|
| 52 | 38 | | eliminating the long-held investments in standing timber and timberlands of businesses and32 |
|---|
| 53 | 39 | | families, and has created both a public fire hazard and a danger of insect infestations due33 |
|---|
| 54 | 40 | | to the massive amounts of downed timber caused by the severity of this natural disaster;34 |
|---|
| 55 | 41 | | (2) As of November, 2024, the estimated losses to standing timber caused by Hurricane35 |
|---|
| 56 | 42 | | Helene as measured by the State Forestry Commission were nearly $1.3 billion;36 |
|---|
| 57 | 43 | | (3) Timberlands as investments are unique as an agriculture product in this state, as timber37 |
|---|
| 58 | 44 | | products often take ten years or longer to realize any return on the investment;38 |
|---|
| 59 | 45 | | (4) Many counties, municipalities, and local school districts rely on the taxes levied at the39 |
|---|
| 60 | 46 | | time of timber's harvest or sale pursuant to Code Section 48-5-7.5, but with the destruction40 |
|---|
| 61 | 47 | | of timberlands throughout this state, that tax revenue will likely not be realized; and41 |
|---|
| 66 | 50 | | provide temporary tax relief from the taxes levied pursuant to Code 48-5-7.5 so that the43 |
|---|
| 67 | 51 | | timber industry, and the businesses and families that provide timber products to such44 |
|---|
| 68 | 52 | | industry, will realize a reduced cost for growing new product and recovering from the45 |
|---|
| 69 | 53 | | devastating effects of Hurricane Helene. These reduced costs will help stabilize the market46 |
|---|
| 70 | 54 | | and allow for quicker harvesting and recovery of lands where some timber is still47 |
|---|
| 71 | 55 | | salvageable.48 |
|---|
| 72 | 56 | | SECTION 1-3.49 |
|---|
| 73 | 57 | | Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is50 |
|---|
| 74 | 58 | | amended by adding a new Code section to read as follows:51 |
|---|
| 77 | 60 | | (a) As used in this Code section, the term:53 |
|---|
| 78 | 61 | | (1) 'Disaster area' means any county designated for public assistance or individual and54 |
|---|
| 79 | 62 | | public assistance pursuant to the Federal Emergency Management Agency55 |
|---|
| 80 | 63 | | FEMA-4830-DR Georgia disaster declaration as of November 4, 2024.56 |
|---|
| 81 | 64 | | (2) 'Eligible governing authority' means the governing authority of any county,57 |
|---|
| 82 | 65 | | consolidated government, or municipality or the governing body of any county or58 |
|---|
| 83 | 66 | | independent board of education that is located in whole or in part in the disaster area.59 |
|---|
| 84 | 67 | | (3) 'Eligible standing timber' means any timber which is subject to taxation pursuant to60 |
|---|
| 85 | 68 | | Code Section 48-5-7.5 that is on eligible timber property.61 |
|---|
| 86 | 69 | | (4) 'Eligible timber property' means any parcel, tract, stand, or other identifiable unit of62 |
|---|
| 87 | 70 | | property that:63 |
|---|
| 88 | 71 | | (A) Contains standing timber which would, in the ordinary course of business, be sold64 |
|---|
| 89 | 72 | | or harvested;65 |
|---|
| 90 | 73 | | (B) Is timberland property as such term is defined in Code Section 48-5-600;66 |
|---|
| 91 | 74 | | (C) Is located within the disaster area; and67 |
|---|
| 94 | 76 | | (D) Was severely damaged or destroyed as a result of the natural disaster.68 |
|---|
| 95 | 77 | | (5) 'Severely damaged or destroyed' means damaged to the extent which would require69 |
|---|
| 96 | 78 | | salvage thinning, a salvage operation, or clear-cut of eligible standing timber based on70 |
|---|
| 97 | 79 | | criteria established by the State Forestry Commission pursuant to subsection (k) of this71 |
|---|
| 98 | 80 | | Code section.72 |
|---|
| 99 | 81 | | (b) Pursuant to Article VII, Section I, Paragraph III(h) of the Constitution of Georgia and73 |
|---|
| 100 | 82 | | in accordance with the provisions of this Code section, an eligible governing authority may74 |
|---|
| 101 | 83 | | grant temporary tax relief from taxes levied for eligible standing timber pursuant to Code75 |
|---|
| 102 | 84 | | Section 48-5-7.5 during:76 |
|---|
| 103 | 85 | | (1) The final quarter of 2024; and77 |
|---|
| 104 | 86 | | (2) Each quarter of 2025.78 |
|---|
| 105 | 87 | | (c) To grant the temporary tax relief authorized by subsection (b) of this Code section, an79 |
|---|
| 106 | 88 | | eligible governing authority shall adopt a resolution or ordinance that:80 |
|---|
| 107 | 89 | | (1) Declares that its jurisdiction contains eligible timber property;81 |
|---|
| 108 | 90 | | (2) Consents to grant the tax relief provided under this Code section;82 |
|---|
| 109 | 91 | | (3) Requires that taxpayers seeking such tax relief submit the certification established83 |
|---|
| 110 | 92 | | pursuant to subsection (f) of this Code section and that such certification shall be84 |
|---|
| 111 | 93 | | accepted by the eligible governing authority; and85 |
|---|
| 112 | 94 | | (4) Waives the levy and collection of payment of taxes otherwise due pursuant to Code86 |
|---|
| 113 | 95 | | Section 48-5-7.5 for the final quarter of 2024 and during each quarter of 2025.87 |
|---|
| 114 | 96 | | (d) Upon adoption of the resolution or ordinance provided under subsection (c) of this88 |
|---|
| 115 | 97 | | Code section, no taxpayer who submits the certification established pursuant to89 |
|---|
| 116 | 98 | | subsection (f) of this Code section shall be required to pay taxes otherwise levied pursuant90 |
|---|
| 117 | 99 | | to Code Section 48-5-7.5 for eligible standing timber during the final quarter of 2024 or91 |
|---|
| 118 | 100 | | during any quarter of 2025.92 |
|---|
| 119 | 101 | | (e) In the event taxes were levied and paid by a taxpayer pursuant to Code93 |
|---|
| 120 | 102 | | Section 48-5-7.5 for eligible standing timber during the final quarter of 2024 or during any94 |
|---|
| 123 | 104 | | quarter of 2025, the eligible governing authority to which such taxes were payable or95 |
|---|
| 124 | 105 | | collected shall provide that a refund be issued to such taxpayer for the total amount paid96 |
|---|
| 125 | 106 | | in the same manner as otherwise provided under Code Section 48-5-380. If such taxes97 |
|---|
| 126 | 107 | | were levied but unpaid, the eligible governing authority to which such taxes are payable98 |
|---|
| 127 | 108 | | or collected shall waive payment and collection as provided in the resolution or ordinance99 |
|---|
| 128 | 109 | | adopted pursuant to subsection (c) of this Code section, and shall be provided by the tax100 |
|---|
| 129 | 110 | | collector or tax commissioner an updated tax bill reflecting that the amount is no longer101 |
|---|
| 130 | 111 | | due.102 |
|---|
| 131 | 112 | | (f)(1) A certification form shall be established by the State Forestry Commission in103 |
|---|
| 132 | 113 | | consultation with the commissioner and Association County Commissioners of Georgia104 |
|---|
| 133 | 114 | | within ten days of the effective of this Code section. In addition to requiring necessary105 |
|---|
| 134 | 115 | | identification and location information, such certification shall:106 |
|---|
| 135 | 116 | | (A) Require such taxpayer to declare that their otherwise taxable property is eligible107 |
|---|
| 136 | 117 | | standing timber;108 |
|---|
| 137 | 118 | | (B) Require such taxpayer to declare that they are making a claim for temporary tax109 |
|---|
| 138 | 119 | | relief for eligible standing timber pursuant to this Code section; and110 |
|---|
| 139 | 120 | | (C) Allow the taxpayer to attach photographs of their eligible timber property,111 |
|---|
| 140 | 121 | | verification by a registered forester that the otherwise taxable property is eligible timber112 |
|---|
| 141 | 122 | | property, or other supporting documentation.113 |
|---|
| 142 | 123 | | (2) Such certification shall be completed by the taxpayer and shall be submitted to the114 |
|---|
| 143 | 124 | | eligible governing authority as provided in the resolution or ordinance adopted pursuant115 |
|---|
| 144 | 125 | | to subsection (c) of this Code section.116 |
|---|
| 145 | 126 | | (3) The State Forestry Commission shall distribute or otherwise make available such117 |
|---|
| 146 | 127 | | certification form to taxpayers.118 |
|---|
| 147 | 128 | | (g) The State Forestry Commission is authorized to conduct audits of property for119 |
|---|
| 148 | 129 | | compliance with this Code section at the request of the tax collector or tax commissioner120 |
|---|
| 149 | 130 | | for an eligible governing authority. In the event the State Forestry Commission conducts121 |
|---|
| 152 | 132 | | an audit and finds that the temporary tax relief granted to a taxpayer pursuant to this Code122 |
|---|
| 153 | 133 | | section was improper, the State Forestry Commission shall report such findings to the tax123 |
|---|
| 154 | 134 | | collector or tax commissioner who may pursue all remedies available by law as necessary124 |
|---|
| 155 | 135 | | to recapture the tax that would have been due but for being wrongfully claimed by a125 |
|---|
| 156 | 136 | | taxpayer.126 |
|---|
| 157 | 137 | | (h) Any temporary tax relief approved or allowed under this Code section shall be paid127 |
|---|
| 158 | 138 | | from funds of the eligible governing authority to which the taxes were or were to have been128 |
|---|
| 159 | 139 | | paid.129 |
|---|
| 160 | 140 | | (i)(1) For the purpose of offsetting an eligible governing authority's revenue loss in the130 |
|---|
| 161 | 141 | | final quarter of 2024 and any quarter of 2025 due to the destruction of eligible standing131 |
|---|
| 162 | 142 | | timber in the disaster area and the temporary tax relief authorized pursuant to this Code132 |
|---|
| 163 | 143 | | section, the commissioner shall, subject to an appropriation by the General Assembly133 |
|---|
| 164 | 144 | | specifically referencing the provisions of this Code section, provide a grant to each134 |
|---|
| 165 | 145 | | eligible governing authority that has consented to grant the temporary tax relief135 |
|---|
| 166 | 146 | | authorized pursuant to this Code section.136 |
|---|
| 167 | 147 | | (2) A grant provided for in paragraph (1) of this subsection shall be allotted to each137 |
|---|
| 168 | 148 | | eligible governing authority based on:138 |
|---|
| 169 | 149 | | (A) The governing authority's estimated revenue loss as described in paragraph (1) of139 |
|---|
| 170 | 150 | | this subsection;140 |
|---|
| 171 | 151 | | (B) The revenue received by such governing authority pursuant to Code141 |
|---|
| 172 | 152 | | Section 48-5-7.5 in each of the preceding three years; and142 |
|---|
| 173 | 153 | | (C) The estimated damage to eligible standing timber in the jurisdiction as provided143 |
|---|
| 174 | 154 | | in the Hurricane Helene Timber Damage Assessment published by the State Forestry144 |
|---|
| 175 | 155 | | Commission on November 5, 2024, or other reliable data from the State Forestry145 |
|---|
| 176 | 156 | | Commission.146 |
|---|
| 179 | 158 | | (3) No grant to an eligible governing authority provided pursuant to paragraph (1) of this147 |
|---|
| 180 | 159 | | subsection shall exceed the average of the total revenue received by such governing148 |
|---|
| 181 | 160 | | authority pursuant to Code Section 48-5-7.5 in 2021, 2022, and 2023.149 |
|---|
| 182 | 161 | | (j)(1) The grants provided pursuant to subsection (i) of this Code section shall not be150 |
|---|
| 183 | 162 | | included in the calculation of the equalized adjusted property tax digest under Code151 |
|---|
| 184 | 163 | | Section 48-5-274 for the purpose of calculating the required local five mill share for152 |
|---|
| 185 | 164 | | school funding purposes under Code Section 20-2-164.153 |
|---|
| 186 | 165 | | (2) The temporary tax relief authorized pursuant to this Code section shall not affect the154 |
|---|
| 187 | 166 | | requirement provided for in paragraph (2) of subsection (m) of Code Section 48-5-7.5155 |
|---|
| 188 | 167 | | that the fair market value of timber harvested or sold be added to a digest and be included156 |
|---|
| 189 | 168 | | in the calculation of the equalized adjusted property tax digest under Code157 |
|---|
| 190 | 169 | | Section 48-5-274 for the purpose of calculating the required local five mill share for158 |
|---|
| 191 | 170 | | school funding purposes under Code Section 20-2-164.159 |
|---|
| 192 | 171 | | (k)(1) The commissioner, tax collectors, and tax commissioners shall be authorized to160 |
|---|
| 193 | 172 | | consult with the State Forestry Commission to implement the provisions of this Code161 |
|---|
| 194 | 173 | | section.162 |
|---|
| 195 | 174 | | (2) The State Forestry Commission shall establish criteria for determining whether163 |
|---|
| 196 | 175 | | timber property is severely damaged or destroyed. In establishing such criteria, such164 |
|---|
| 197 | 176 | | commission may consider:165 |
|---|
| 198 | 177 | | (A) The average damage sustained throughout the timber property;166 |
|---|
| 199 | 178 | | (B) Whether the timber property has adequate remaining trees per acre to maintain167 |
|---|
| 200 | 179 | | viable timber property; and168 |
|---|
| 201 | 180 | | (C) The risk of insect and disease damage to the timber property as a result of the169 |
|---|
| 202 | 181 | | disaster.170 |
|---|
| 203 | 182 | | (l) The commissioner may promulgate any rules and regulations necessary to implement171 |
|---|
| 204 | 183 | | and administer the provisions this Code section."172 |
|---|
| 214 | 190 | | December 31, 2029, income received as payments from a federal disaster relief or178 |
|---|
| 215 | 191 | | assistance grant program administered by this state or its instrumentalities or the United179 |
|---|
| 216 | 192 | | States Department of Agriculture, if such federal grant program was established180 |
|---|
| 217 | 193 | | specifically to address agricultural losses suffered due to Hurricane Helene which was a181 |
|---|
| 218 | 194 | | weather event declared to be a major disaster in this state by the President of the United182 |
|---|
| 219 | 195 | | States during the 2024 calendar year, to the extent such income is included in federal183 |
|---|
| 220 | 196 | | adjusted gross income or federal taxable income;184 |
|---|
| 221 | 197 | | (11.4) For taxable years beginning on or after January 1, 2025, and ending on or before185 |
|---|
| 222 | 198 | | December 31, 2025, federal crop insurance proceeds received for the destruction or186 |
|---|
| 223 | 199 | | damage to crops due to Hurricane Helene which was a weather event declared to be a187 |
|---|
| 224 | 200 | | major disaster in this state by the President of the United States during the 2024 calendar188 |
|---|
| 225 | 201 | | year, to the extent such proceeds are included in federal adjusted gross income or federal189 |
|---|
| 226 | 202 | | taxable income;"190 |
|---|
| 227 | 203 | | SECTION 2-2.191 |
|---|
| 228 | 204 | | Said title is further amended by adding a new Code section to read as follows:192 |
|---|
| 229 | 205 | | "48-7-40.37.193 |
|---|
| 230 | 206 | | (a)(1) The General Assembly finds and determines that Hurricane Helene has had a194 |
|---|
| 231 | 207 | | catastrophic impact on the citizens and the economy of Georgia, has particularly195 |
|---|
| 232 | 208 | | devastated the timber industry on which the citizens of Georgia are heavily dependent for196 |
|---|
| 233 | 209 | | their livelihood, and has created both a public fire hazard and a danger of insect197 |
|---|
| 236 | 211 | | infestations due to the massive amounts of downed timber caused by the severity of this198 |
|---|
| 237 | 212 | | natural disaster.199 |
|---|
| 238 | 213 | | (2) The General Assembly further finds and declares that it is appropriate and advisable200 |
|---|
| 239 | 214 | | to provide relief to the timber industry in the form of a tax credit targeted to those201 |
|---|
| 240 | 215 | | taxpayers that have suffered substantial economic losses and that will have to incur202 |
|---|
| 241 | 216 | | significant expenses for salvaging downed timber, site clearance, restoration, and203 |
|---|
| 242 | 217 | | reforestation over the coming years.204 |
|---|
| 243 | 218 | | (b) As used in this Code section, the term:205 |
|---|
| 244 | 219 | | (1) 'Disaster area' means the real property encompassed by the borders of the 66 counties206 |
|---|
| 245 | 220 | | included in the renewal of the State of Emergency pronounced in the Executive Order of207 |
|---|
| 246 | 221 | | the Governor dated October 29, 2024, and filed in the official records of the office of the208 |
|---|
| 247 | 222 | | Governor as Executive Order No. 10.29.24.01.209 |
|---|
| 248 | 223 | | (2) 'Eligible timber property' means timber which on September 24, 2024, was being210 |
|---|
| 249 | 224 | | grown by a taxpayer in a disaster area as part of a trade or business or a transaction211 |
|---|
| 250 | 225 | | entered into for profit.212 |
|---|
| 251 | 226 | | (3) 'Timber' means trees grown for the primary purpose of commercial production of213 |
|---|
| 252 | 227 | | food or wood or wood fiber products.214 |
|---|
| 253 | 228 | | (4) 'Timber casualty loss' means the amount of the diminution of value included in the215 |
|---|
| 254 | 229 | | computation of the casualty loss deduction for such casualty losses claimed and allowed216 |
|---|
| 255 | 230 | | pursuant to Section 165 of the Internal Revenue Code of 1986 as casualty losses incurred217 |
|---|
| 256 | 231 | | by a taxpayer between September 24, 2024, and December 31, 2024, as a result of218 |
|---|
| 257 | 232 | | damage to or destruction of eligible timber property caused by Hurricane Helene.219 |
|---|
| 258 | 233 | | (c)(1) A taxpayer shall be allowed tax credits against the tax imposed by this article in220 |
|---|
| 259 | 234 | | an amount equal to 100 percent of such taxpayer's timber casualty loss; provided,221 |
|---|
| 260 | 235 | | however, that the credit amount shall not exceed the number of the taxpayer's affected222 |
|---|
| 261 | 236 | | acres of eligible timber property in such disaster areas multiplied by $550.00.223 |
|---|
| 264 | 238 | | (2) To be allowed such tax credits, a taxpayer shall submit an application for preapproval224 |
|---|
| 265 | 239 | | of such credits based on timber casualty losses incurred by such taxpayer by225 |
|---|
| 266 | 240 | | December 31, 2025.226 |
|---|
| 267 | 241 | | (d)(1) The commissioner shall require preapproval applications to contain such227 |
|---|
| 268 | 242 | | information as is necessary to substantiate a taxpayer's eligibility for tax credits allowed228 |
|---|
| 269 | 243 | | pursuant to this Code section.229 |
|---|
| 270 | 244 | | (2) The commissioner is authorized to require electronic submission of preapproval230 |
|---|
| 271 | 245 | | applications in the manner specified by the commissioner.231 |
|---|
| 272 | 246 | | (3) The commissioner shall review completed preapproval applications in the order in232 |
|---|
| 273 | 247 | | which such applications were submitted and shall provide notice to each taxpayer that233 |
|---|
| 274 | 248 | | submitted an application within 30 days of receipt stating whether such taxpayer's234 |
|---|
| 275 | 249 | | application is complete or incomplete.235 |
|---|
| 276 | 250 | | (4) In no event shall the commissioner preapprove tax credits pursuant to this Code236 |
|---|
| 277 | 251 | | section in an amount that exceeds $200 million in aggregate.237 |
|---|
| 278 | 252 | | (5) In the event that properly completed and timely submitted preapproval applications238 |
|---|
| 279 | 253 | | are submitted for an amount that exceeds the amount of funds available to fully fund the239 |
|---|
| 280 | 254 | | tax credits requested, the commissioner shall prorate the available funds between or240 |
|---|
| 281 | 255 | | among the applicants.241 |
|---|
| 282 | 256 | | (6) The commissioner shall approve properly completed and timely submitted242 |
|---|
| 283 | 257 | | preapproval applications and issue a preapproval certificate to the taxpayer by243 |
|---|
| 284 | 258 | | January 31, 2026, certifying the amount of credits such taxpayer is eligible to claim if the244 |
|---|
| 285 | 259 | | taxpayer meets the conditions of this Code section.245 |
|---|
| 286 | 260 | | (e) In no event shall the amount of the tax credits allowed pursuant to this Code section246 |
|---|
| 287 | 261 | | exceed $200 million in aggregate.247 |
|---|
| 288 | 262 | | (f)(1)(A) Tax credits allowed pursuant to this Code section shall be eligible to be248 |
|---|
| 289 | 263 | | claimed only by the taxpayer to which the commissioner issued a preapproval249 |
|---|
| 290 | 264 | | certificate.250 |
|---|
| 293 | 266 | | (B) Tax credits allowed pursuant to this Code section shall only be claimed in the251 |
|---|
| 294 | 267 | | taxable year in which the taxpayer first completes:252 |
|---|
| 295 | 268 | | (i) The restoration of each acre for which timber casualty losses were incurred to a253 |
|---|
| 296 | 269 | | condition that has an adequately stocked stand that is expected to result in forest254 |
|---|
| 297 | 270 | | products or ecological services in the foreseeable future; or255 |
|---|
| 298 | 271 | | (ii) The replanting of timber in a quantity projected to yield at maturity at least 90256 |
|---|
| 299 | 272 | | percent of the value of the timber casualty loss claimed. Such timber shall be planted257 |
|---|
| 300 | 273 | | within the same county in which the eligible timber property was being grown when258 |
|---|
| 301 | 274 | | the timber casualty loss was incurred. Timber market conditions as of259 |
|---|
| 302 | 275 | | September 25, 2024, shall be used for the purposes of establishing projected value.260 |
|---|
| 303 | 276 | | (2) To claim tax credits allowed pursuant to this Code section, a taxpayer shall attach to261 |
|---|
| 304 | 277 | | such taxpayer's state tax return certification from the taxpayer that the requirements of262 |
|---|
| 305 | 278 | | this Code section have been met and any other information required by the commissioner,263 |
|---|
| 306 | 279 | | including information which demonstrates that it has completed the restoration or264 |
|---|
| 307 | 280 | | replanting of timber required pursuant to paragraph (1) of this subsection.265 |
|---|
| 308 | 281 | | (3) Any tax credits allowed pursuant to this Code section shall be claimed on or before266 |
|---|
| 309 | 282 | | December 31, 2030.267 |
|---|
| 310 | 283 | | (g)(1) The total amount of the tax credits allowed pursuant to this Code section for a268 |
|---|
| 311 | 284 | | taxable year may exceed the taxpayer's income tax liability. Such tax credits allowed in269 |
|---|
| 312 | 285 | | excess of a taxpayer's income tax liability shall be refundable to such taxpayer, provided270 |
|---|
| 313 | 286 | | that such taxpayer is the same taxpayer that incurred the timber casualty loss.271 |
|---|
| 314 | 287 | | (2) Tax credits claimed pursuant to this Code section but not used in any taxable year272 |
|---|
| 315 | 288 | | may be carried forward for ten years from the close of the taxable year in which the273 |
|---|
| 316 | 289 | | credits are claimed.274 |
|---|
| 317 | 290 | | (h) Tax credits claimed pursuant to this Code section but neither used by the taxpayer275 |
|---|
| 318 | 291 | | against its income tax liability nor refunded may be transferred or sold one time to one276 |
|---|
| 319 | 292 | | single other Georgia taxpayer, subject to the following conditions:277 |
|---|
| 322 | 294 | | (1) Only the taxpayer that claimed the tax credits allowed pursuant to this Code section278 |
|---|
| 323 | 295 | | shall make the transfer or sale of such tax credits;279 |
|---|
| 324 | 296 | | (2) The taxpayer that claimed the tax credits allowed pursuant to this Code section shall280 |
|---|
| 325 | 297 | | submit to the commissioner written notification of any transfer or sale of such tax credits281 |
|---|
| 326 | 298 | | within 30 days after the transfer or sale of the tax credits. Such written notification shall282 |
|---|
| 327 | 299 | | include:283 |
|---|
| 328 | 300 | | (A) Such taxpayer's credit balance prior to transfer;284 |
|---|
| 329 | 301 | | (B) The credit certificate number;285 |
|---|
| 330 | 302 | | (C) The remaining balance of credits after transfer;286 |
|---|
| 331 | 303 | | (D) The tax identification number of the transferee;287 |
|---|
| 332 | 304 | | (E) The date of transfer;288 |
|---|
| 333 | 305 | | (F) The amount of credits transferred; and289 |
|---|
| 334 | 306 | | (G) Other information as may be required by the department;290 |
|---|
| 335 | 307 | | (3) Failure to comply with any provision of this subsection shall result in the291 |
|---|
| 336 | 308 | | disallowance of the tax credits allowed pursuant to this Code section until the taxpayer292 |
|---|
| 337 | 309 | | that claimed the credits is in full compliance;293 |
|---|
| 338 | 310 | | (4) The transfer or sale of the tax credits shall not extend the time during which such tax294 |
|---|
| 339 | 311 | | credits may be used. The carry-forward period for tax credits that are transferred or sold295 |
|---|
| 340 | 312 | | shall begin on the date on which such tax credits were originally claimed;296 |
|---|
| 341 | 313 | | (5) A transferee shall have only such rights to claim and use the tax credits that were297 |
|---|
| 342 | 314 | | available to the transferor at the time of the transfer; provided, however, that a transferee298 |
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| 343 | 315 | | shall not be eligible to transfer or receive a refund of such tax credits. To the extent that299 |
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| 344 | 316 | | the transferor did not have rights to claim or use the tax credits at the time of the transfer,300 |
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| 345 | 317 | | the commissioner shall disallow the tax credits claimed by the transferee or recapture the301 |
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| 346 | 318 | | tax credits from the transferee or transferor. The transferee's recourse shall not be against302 |
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| 347 | 319 | | the commissioner; and303 |
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| 350 | 321 | | (6) The transferee shall acquire the tax credits allowed pursuant to this Code section for304 |
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| 351 | 322 | | a minimum of 60 percent of the amount of the tax credits so transferred.305 |
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| 352 | 323 | | (i)(1) A taxpayer claiming, transferring, or selling tax credits allowed pursuant to this306 |
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| 353 | 324 | | Code section shall be required to reimburse the department for any department initiated307 |
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| 354 | 325 | | audits relating to the tax credits, provided that such amount shall not exceed the value of308 |
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| 355 | 326 | | the credits claimed by the taxpayer. This paragraph shall not apply to routine tax audits309 |
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| 356 | 327 | | of such taxpayer that may include the review of the tax credits provided in this Code310 |
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| 357 | 328 | | section.311 |
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| 358 | 329 | | (2) The commissioner shall have access to timber property for the purpose of312 |
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| 359 | 330 | | determining eligibility for both the preapproval and claiming of tax credits allowed and313 |
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| 360 | 331 | | conducting audits pursuant to this Code section, provided that prior notice is given to any314 |
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| 361 | 332 | | taxpayer that submitted a preapproval application or transferred or claimed tax credits315 |
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| 362 | 333 | | pursuant to this Code section and the owner of the underlying real property.316 |
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| 363 | 334 | | (3) The commissioner may pursue all remedies available by law as necessary to317 |
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| 364 | 335 | | recapture tax credits wrongfully preapproved, allowed, or claimed by a taxpayer or a318 |
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| 365 | 336 | | taxpayer's transferee.319 |
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| 366 | 337 | | (4) The commissioner shall be authorized to consult with the State Forestry Commission320 |
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| 367 | 338 | | as necessary to administer and enforce the provisions of this Code section.321 |
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| 368 | 339 | | (j) The commissioner shall be authorized to promulgate any rules and regulations322 |
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| 369 | 340 | | necessary to implement and administer the provisions of this Code section."323 |
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| 370 | 341 | | SECTION 2-3.324 |
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| 371 | 342 | | Said title is further amended in Chapter 8, relating to sales and use taxes, by revising325 |
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| 372 | 343 | | paragraph (3) of subsection (a) of Code Section 48-8-3.3, relating to exemptions for326 |
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| 373 | 344 | | agricultural operations and establishment of Georgia Agricultural Trust Fund, as follows:327 |
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| 374 | 345 | | "(3)(A) 'Agricultural production inputs' means seed; seedlings; plants grown from seed,328 |
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| 375 | 346 | | cuttings, or liners; fertilizers; insecticides; livestock and poultry feeds, drugs, and329 |
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| 380 | 349 | | used to produce agricultural products regardless of whether the fencing products or331 |
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| 381 | 350 | | materials become incorporated into real property; fungicides; rodenticides; herbicides;332 |
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| 382 | 351 | | defoliants; soil fumigants; plant growth regulating chemicals; desiccants, including, but333 |
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| 383 | 352 | | not limited to, shavings and sawdust from wood, peanut hulls, fuller's earth, straw, and334 |
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| 384 | 353 | | hay; feed for animals, including, but not limited to, livestock, fish, equine, hogs, or335 |
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| 385 | 354 | | poultry; sugar used as food for honeybees kept for the commercial production of honey,336 |
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| 386 | 355 | | beeswax, and honeybees; cattle, hogs, sheep, equine, poultry, or bees when sold for337 |
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| 387 | 356 | | breeding purposes; ice or other refrigerants, including, but not limited to, nitrogen,338 |
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| 388 | 357 | | carbon dioxide, ammonia, and propylene glycol used in the processing for market or339 |
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| 389 | 358 | | the chilling of agricultural products in storage facilities, rooms, compartments, or340 |
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| 390 | 359 | | delivery trucks; materials, containers, crates, boxes, labels, sacks, bags, or bottles used341 |
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| 391 | 360 | | for packaging agricultural products when the product is either sold in the containers,342 |
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| 392 | 361 | | sacks, bags, or bottles directly to the consumer or when such use is incidental to the sale343 |
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| 393 | 362 | | of the product for resale; and containers, plastic, canvas, and other fabrics used in the344 |
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| 394 | 363 | | care and raising of agricultural products or canvas used in covering feed bins, silos,345 |
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| 395 | 364 | | greenhouses, and other similar storage structures.346 |
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| 398 | 366 | | December 31, 2025, such term also means building materials used to repair or348 |
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| 399 | 367 | | replace:349 |
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| 400 | 368 | | (I) Greenhouses; and350 |
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| 401 | 369 | | (II) Real property structures or fixtures used exclusively for the production of351 |
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| 402 | 370 | | animals, including, but not limited to, poultry sheds and livestock barns.352 |
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| 403 | 371 | | (ii) Notwithstanding subsection (c) of Code Section 48-8-63, contractors shall not353 |
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| 404 | 372 | | incur any use tax on any building materials that a qualified agricultural producer354 |
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| 405 | 373 | | purchases tax-exempt under division (i) of this subparagraph for use in an agricultural355 |
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| 406 | 374 | | operation and furnishes to such contractor for installation into real property."356 |
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