Georgia’s Tax Code Survives Crossover Day 2022 |  Eversheds Sutherland (USA) LLP

“Crossover Day” in the Georgia Legislature was Tuesday, March 15 – the 28th legislative day of a total of 40 legislative days – when all bills must pass through one legislative chamber to be crossed and considered by the other chamber . Bills that didn’t pass a chamber before the transition are generally dead for the year, although there are still ways to add tax provisions to other tax laws that have transitioned. Georgia’s constitution requires all revenue-related bills to come from the House of Representatives, so the vast majority of outstanding bills for the year now go to the Senate. Sine Die, or the 40th and final legislature day, will be April 4, 2022 this year.

A chamber passes and crosses:

income tax

HB 1058 – Choice for consolidated reporting. This bill authorizes affiliated groups to hold a 5-year election to file consolidated corporate income tax returns in Georgia. Under applicable law, the Department of Treasury must pre-approve the affiliated group for filing on a consolidated basis and may impose terms on the consolidated filing.

HB 1320 – Annual IRC compliance. This is Georgia’s annual Income Tax Compliance Act, aligning the Georgian Tax Code with the Federal Tax Code effective January 1, 2022. ) declared disasters as defined in the Internal Revenue Code. The House of Representatives passed this bill on February 24, 2022, and it was also passed by the Senate Finance Committee. It now awaits passage by the full Senate. This bill should be read in conjunction with HB 7EX, which was passed by both chambers during a special session and signed by the governor on December 8, 2021.

HB 1039 – Extension of the track maintenance credit. This bill extends the existing income tax credit in OCGA §48-7-40.34 for railroad track maintenance expenses from 2027 through 2029.

HB 1041 – increase of rural hospital credit. This bill increases the overall limit for state tax credits for contributions to rural hospital organizations, effective 2023.

HB 1053 – Extension of post-production credit. The bill extends the film post-production tax credit, which currently expires on January 1, 2023, to January 1, 2028. The bill also requires that companies claiming the post-production tax credit be subject to tax on income from those projects agree in Georgia. In addition, the bill would tax non-residents on future balance payments from work performed in Georgia related to state-certified production, regardless of where those balance payments are earned.

HB 1330 – Georgia Music and Theater Jobs Recovery Act. This bill makes several changes to the available credits, including lowering the qualifying spending threshold and increasing the value of the credit. The bill would tax foreign and domestic companies on all income derived directly or indirectly from the sale, use, or lease of state-certified production for which a tax credit has been claimed under this provision. In addition, the bill would tax non-residents on future balance payments from work performed in Georgia related to state-certified production, regardless of where those balance payments are earned.

HB 1302 – Tax credit for natural taxpayers. This bill provides a one-time tax refund for taxpayers who filed income tax returns for tax years 2020 and 2021 of $250 to $500, depending on filing status. This reimbursement was included in Governor Kemp’s half-year budget. This bill was passed by the House of Representatives and also by the Senate Finance Committee.

HB 1437 – Tax Reduction and Reform Act of 2022. This bill would eliminate Georgia’s current tiered income tax brackets (with a top rate of 5.75%) and introduce a flat rate of 5.25%. This bill would combine the current standard deduction and personal allowance into one increased standard allowance. The bill would prohibit individual deductions in addition to deductions for charitable contributions.

value added tax

Over the past year, Georgia has made several changes to the High-Technology Exemption (OCGA § 48-8-3(68)). There are several bills that would make further changes to this exemption and would amend the data center exemption (OCGA § 48-6-3(68.1)), all of which have passed the House. These bills may be further amended or combined by the Senate:

HB 1187 – Extension of Sunset for Data Center Exemption. This bill extends the expiration of the data center exemption in OCGA §48-8-3(68.1) from 2028 to 2033 and adds a job creation component for data centers located in counties with a population of less than 50,001. The bill would also allow data centers in counties with fewer than 50,001 residents to qualify for certain income tax credits.

HB 1223 – Extension of the Sunset for high-tech exemption. This bill extends the expiration of the high-technology exemption (OCGA §48-8-3(68)) from June 30, 2023 to December 31, 2023. This change is necessary because qualifying for the exemption is through qualification purchases are measured on a calendar year basis.

HB 1291 – Changes to the high-tech exemption. Like HB 1223, this bill would extend the expiration of the current exemption to December 31, 2023. Beginning in 2024, a revised exemption would tax 10% of the first $15 million in qualifying purchases, excluding taxes on purchases over that threshold. The bill would change qualifying purchases (required to meet the $15 million threshold) to include only taxable purchases and leases, specifically excluding pre-built computer software (delivered electronically or otherwise) as a qualifying purchase. The proposal would remove the exemption certificate and require all eligible taxpayers to apply for the exemption via a refund application within 90 days of the end of the calendar year. The existing High-Tech Equipment Exemption allows a taxpayer to pre-qualify or file a refund claim for tax-exempt purchases.

HB 1034 – Extension of the exemption for one-off major sporting events. This bill expands the existing sales tax exemption for one-off major sporting events that are expected to generate over $50 million in the host community (e.g., a Super Bowl, a pro sports all-star game, or a semifinal game or a championship game of a national college tournament). 2031. The bill also adds “any match of a FIFA World Cup” to the definition of “major sporting event”.

wealth tax

HB 997 – Property tax exemption for wood producers. This bill calls for a constitutional referendum to provide a statewide exemption from all ad valorem taxes on certain equipment used by timber producers to produce or harvest timber.

HB 1224 –The wealth tax can be contested with the Hearing Officer instead of the Compensation Committee. This bill allows a taxpayer who has taxable tangible property with a combined market value of more than $200,000 to call a hearing officer. Under current law, a taxpayer may appeal property tax assessments to a hearing officer or the Equalization Board, but personal property tax appeals (excluding wireless property) must be filed with the County Equalization Board.

SB511 –Deadlines and procedures for appeals against property tax. This bill revises timelines, procedures, and notification requirements associated with processing appeals to property tax appeals where a taxpayer elects to appeal to a hearing officer. The draft law also changes certain deadlines for complaints to the compensation office. Because this bill is an appeals process and not a revenue increase, it is one of the few bills passed by the Senate and not the House of Representatives.


HB 304 – Motor fuel exemption. This bill would eliminate the fuel tax by May 31, 2022. The bill has been passed by the House of Representatives and also by the Senate Finance Committee and is now awaiting passage. The gas tax suspension would take effect when the governor signed the bill into law.

HB 1044 – Regional Development Authorities. This bill allows counties to jointly form regional development agencies when it may not be possible for a county to have its own development agency. Such development agencies are often the vehicles for private investment projects and property tax reductions.

Relevant bills that have not passed but may reappear in another bill.

HB 594 – Taxation of digital goods and services. This bill would impose sales and use taxes on certain digital goods and services, including taxation of goods and software delivered electronically, with an exception for “prescribed computer software or digital products sold to a commercial enterprise and used principally for its commercial purposes.” The bill also provides an exemption for certain broadband devices used in unserviced areas of the state. The bill is an amended version of the proposal carried over from the 2021 legislature. HB 594 was heard by the Ways & Means Committee but did not consist of the Committee.

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