Georgia State and Local Tax (SALT) Alerts
State and Local Tax Insights
Georgia State and Local Tax Alerts – January 2020
- The Georgia Dept. of Revenue has amended the Quality Jobs Tax Credit, effective Jan. 2, 2020, to bring the rule into conformity with current Georgia law. The rule provides for a definition of the term “rural county,” how to establish eligibility for the credit and further explains the procedure on how to claim the credit. The rule also clarifies that transferred jobs don’t qualify for the credit, provides the credit amount per new quality job created in the same tax year, specifies that the computation of the quality jobs tax credit is based on 12-month periods and gives the requirements to begin a subsequent seven-year job creation period.
- Now in effect through Dec. 31, 2020, the following state excise tax must be remitted by the distributor on all sales of motor fuel to any purchaser not properly licensed as a Georgia distributor of that fuel type: 1) gasoline, $0.279 per gallon; 2) diesel, $0.313 per gallon; 3) aviation fuel, $0.010 per gallon if made to a duly licensed aviation gasoline distributor, if not, a $0.279 per gallon rate will apply; and 4) liquefied petroleum gas, $0.279 per gallon.
- The Georgia Dept. of Revenue has issued the 2020 version of its Employer’s Tax Guide. The guide includes wage bracket and percentage method withholding tables that went into effect on Jan. 1, 2020. It also includes basic definitions, answers to frequently asked questions and references to the applicable law provisions that govern withholding tax requirements. Download the guide here: https://bit.ly/2ZVgeza
- Georgia’s historic rehabilitation tax credit regulations have been amended. The Georgia Dept. of Revenue has amended its Historic Rehabilitation Tax Credit, effective Jan. 2, 2020, to bring the rule into conformity with current Georgia law. The amended rule provides for the requirements for the rehabilitation of historic homes and other certified structures, and the timeframe for completing a project which may be up to two years after the end of the tax year for which the credit was originally reserved. For additional information, visit: https://bit.ly/2QNt9Pg
- The Georgia Dept. of Revenue has announced that the interest rate for interest-bearing refunds and past due taxes for the 2020 calendar year will be 7.75% accruing monthly. This is a decrease from the 2019 rate of 8.50%. The interest rate for refunds and past due taxes is pegged at a rate equal to the bank prime loan rate as posted by the Board of Governors of the Federal Reserve System, plus 3% to accrue monthly.
- The Manufacturer’s and Telecommunications Investment Tax Credit regulations have been adopted. The Georgia Dept. of Revenue has amended its Manufacturer’s and Telecommunications Investment Tax Credit, effective Jan. 19, 2020, to conform the rule to recent tax law changes. The amended rule provides for new definitions of the terms “project” and “rural county,” sets the maximum amount of the credit at 50% of a taxpayer’s income tax liability derived from Georgia operations, and specifies that taxpayers in rural counties located in tier 1 and tier 2 counties are eligible to use the credit against withholding tax subject to a $10 million cap. Contact us for more information.
- The Georgia Dept. of Revenue is reminding taxpayers that beginning in 2020, the 1099-G and 1099-INTs state tax forms will only be available electronically on the Georgia Tax Center website. The department will no longer print and mail the documents. Taxpayers are encouraged to opt-in and to receive their forms electronically. They will be notified when a document is issued to them. Taxpayers must go to the website and select “Receive 1099-G Electronically” to sign up. For more information, visit the Georgia Tax Center at: https://bit.ly/2R3pWfM
- Title ad valorem tax (TAVT) changes are now in effect. The Georgia Dept. of Revenue is informing taxpayers of recent changes relating to the TAVT. For vehicles purchased or sold on or after Jan. 1, 2020, the TAVT rate will be lowered from 7% to 6.6% of the fair market value of the vehicle. Also, the cutoff year for the reduced TAVT rate for older vehicles changed to 1989 (from 1985), so the reduced rate applies to any person who purchases a 1963 through 1989 model year motor vehicle.
- Georgia amends its qualified education donation tax credit regulation. As amended, the reg provides that when the taxpayer is a pass-through entity that has no income tax liability of its own, the tax credit will be considered earned by its members, shareholders or partners based on their profit/loss percentage at the end of the year. The expenditure is made by the pass-through entity, but all credit forms (preapproval, claiming and reporting) will be filed in the name of its members, shareholders or partners, and the credit can be applied only against their tax liability on their income tax returns. The amended reg is applicable to years beginning on or after Jan. 1, 2019.
- In his 2020 State of the State address on Jan. 16, 2020, Georgia Governor Kemp proposed to triple the state’s adoption credit from $2,000 to $6,000 as part of a proposal to update the state’s adoption laws. Governor Kemp made no other tax proposals in his address.