Georgia State and Local Tax (SALT) Alerts – December 2021

• The Georgia Dept. of Revenue has issued a table showing the local sales and use tax rates for energy sold to manufacturers for the first quarter of 2022. The rates are effective Jan. 1, 2022 through March 31, 2022. The tax rates are imposed on energy sold to manufacturers as levied by counties within the 159 special districts and the City of Atlanta. The tax is levied initially by ordinance following the phase-in schedule rates.
• The Georgia Dept. of Revenue has adopted the Life Sciences Manufacturing Job Tax Credit. The $1,250 credit applies to jobs created after July 1, 2021, that are engaged in the qualifying activity of manufacturing medical equipment or pharmaceuticals in Georgia during the taxable year. A new regulation provides definitions, credit amounts, eligibility for the credit, how the credit is claimed, the carry-forward for the credit and how pass-through entities can use the credit.
• The Georgia Dept. of Revenue has announced 2022 state excise tax rates for various types of motor fuel: gasoline, $0.291 per gallon; diesel, $0.326 per gallon; aviation fuel, $0.010 per gallon if made to a licensed aviation gasoline distributor, if not, a $0.291 per gallon rate will apply; liquefied petroleum gas, $0.291 per gallon; and special fuel (including compressed natural gas), $0.291 per gallon. For more information, download the January 2022 tax rate table.
• The Georgia Dept. of Revenue has adopted the Historic Rehabilitation Tax Credit to bring the rule into conformity with recent law changes. The rule specifies the requirements, credit amount, and credit limitations for the rehabilitation of a historic home. Specifically, it sets a $5 million credit cap for 2022 for historic homes and for any other certified structure earning $300,000 or less, and the pre-approval process for historic homes and any other certified structure earning $300,000 or less. The credit is effective Dec. 8, 2021.
• The Georgia Dept. of Revenue recently reported that Georgia’s net tax collections for November 2021 totaled $2.29 billion, an increase of $332.7 million, or 17%. In November 2020, net tax collections totaled $1.96 billion. Year-to-date, net tax revenue collections totaled $11.87 billion, for an increase of nearly $1.70 billion, or 16.7%, over fiscal year 2021.
• The Georgia Dept. of Revenue has adopted the “Election to Pay Tax at the Pass-Through Entity Level” rule. It goes into effect on Dec. 27, 2021. The rule implements recent law changes that create a workaround on the $10,000 federal SALT deduction cap by allowing pass-through entities an irrevocable election to pay tax at the S corporation level and partnership level rather than through individual owners and partners. The rule details which entities are eligible to make the election and how the election is made. Contact our Tax team for more information.
• Georgia’s November 2021 corporate income tax collection decreased by $26.6 million, according to the Georgia Dept. of Revenue. This represents a 171% decrease compared to last year when net corporate tax revenues totaled $15.5 million.
• The Georgia Dept. of Revenue has issued a revised Form MV-7D and a new Form MV-7L to be used for the new calculation of title ad valorem tax (TAVT) on certain purchases and leases effective Jan. 1, 2022. The revised forms were needed because of recent legislation that amended the definition of a motor vehicle’s fair market value for leased vehicles. The new forms must be used to determine the correct amount of TAVT to collect from a customer. Dealers who make paper filings with a county tag office may use the revised Form MV-7D to calculate TAVT on the sales of motor vehicles and may use the new Form MV-7L to calculate TAVT on leases of motor vehicles.
• The Georgia Dept. of Revenue has adopted amendments to the Qualified Education Expense Credit, the Qualified Rural Hospital Organization Expense Tax Credit and the Qualified Education Donation Tax Credit. The amendments include definitions, credit amounts and limitations, mandatory electronic pre-approval process information, and reporting requirements. The amendments went into effect on Dec. 27, 2021.

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