Georgia State and Local Tax (SALT) Alerts
State and Local Tax Insights
Georgia State and Local Tax Alerts – May 2020
- Following IRS guidance, a 30-day extension has been given to the Georgia Dept. of Revenue to perform certain time-sensitive actions if the last date for the performance of the action is on or after April 15, 2020, and before July 15, 2020. This includes actions regarding taxpayers who are under audit or examination, those who have filed a protest or appeal, or those who filed a refund claim for a previous tax year.
- The Georgia Dept. of Revenue has announced that the vehicle registration deadline has been extended to June 15, 2020. All vehicle registrations that expire between March 16, 2020, and June 14, 2020, have been extended through June 15, 2020. This extension applies to all annual registrations, including personal passenger vehicles, commercial vehicles, vehicles registered in the International Registration Plan (IRP), and Temporary Operating Permits (TOPs) issued at the time of a vehicle purchase. Be aware that registrations that expired before March 16, 2020, don’t qualify for this extension.
- Georgia has added nexus and withholding tax information FAQs for work-at-home employees to its website. The Georgia Dept. of Revenue won’t use a person’s relocation that’s the direct result of temporary remote work requirements arising from the novel coronavirus (COVID-19) pandemic as the basis for establishing Georgia nexus, or for exceeding the protections provided for the employer of a temporarily relocated employee. Also, if an employee is temporarily working in Georgia, wages earned during that time period wouldn’t be considered Georgia income, so the company isn’t required to withhold Georgia income tax. For a complete list of COVID-19-related FAQs: https://bit.ly/3cosrBN
- The State of Georgia has announced that April’s net tax revenues fell 35.9%, largely due to the novel coronavirus (COVID-19). Georgia reported a net tax collection totaling nearly $1.84 billion, a decrease of $1.03 billion compared to April 2019, when net tax collections totaled $2.87 billion. Year-to-date, net tax collections totaled $19.23 billion for a decrease of nearly $680 million, or -3.4%, compared to the previous fiscal year when net tax revenues totaled $19.91 billion. Changes within several tax categories for April 2020 are largely attributable to the economic impact of the COVID-19 pandemic.
- You’re likely aware that Georgia extended the deadline to file a state income tax return to July 15, 2020. But what if you’re unable to file your return by that new deadline? In an FAQ, the Georgia Dept. of Revenue states that you must request a state extension by July 15. If you’ve already filed a federal tax return extension, Georgia will accept it for your state return. If not, you must file Georgia Form IT-303. If you file an extension by July 15, your tax return will be due on the normal extended due date (not three months after the normal extended due date). Contact your tax advisor for more information.
- In a COVID-19-related FAQ, the Georgia Dept. of Revenue explained that the deadline for making a deductible contribution to Georgia’s 529 plan (Path2College 529 Plan) has been extended to July 15, 2020. A contribution made by July 15, 2020 may be deducted on a taxpayer’s 2019 Georgia income tax return, subject to the normal dollar limitations. For information, contact your tax advisor.
- The Georgia Dept. of Revenue has posted several COVID-19-related FAQs on its webpage. One question asks: For purposes of computing Georgia income tax, does Georgia follow any provisions of the CARES Act? The answer is: Not currently. The CARES Act must first be considered for adoption by the Georgia General Assembly. The current legislative session was put on hold due to COVID-19, and no action has yet been completed.
- The rule on remote administrative hearings has been adopted. The Georgia Dept. of Revenue has adopted emergency rules for administrative hearings with the Alcohol and Tobacco Division. The rules permit administrative hearings to be conducted by alternate means, such as remote telephonic communication methods. They went into effect on May 19, 2020.