Georgia State and Local Tax (SALT) Alerts
State and Local Tax Insights
Georgia State and Local Tax (SALT) Alerts – November 2021
- The Georgia Court of Appeals has held that a property owner was entitled to a two-year freeze on the value of his properties following the 2018 taxable year because the value remained unchanged and was established as a result of an appeal to the County Board of Equalization (BOE). The statute provides for a two-year “freeze” on increasing property values when the values are reduced or unchanged because of an appeal decision issued by the BOE. Here, the property owner appealed the County Board of Tax Assessor’s property assessments for 2017 because he believed they were excessive. The BOE agreed and reduced and established new property values for 2017. (Dkt. No. A21A1032)
- In September, Georgia’s corporate income tax collections increased by $133.5 million, or 50.4%, over last year when those revenues totaled $264.9 million. Of note, corporate tax refunds issued (net of voided checks) were up $12.2 million, or 95.3%, over last year. Corporate income tax return payments increased by $12.8 million, or 54.2%, from last year.
- Governor Brian Kemp has announced that Georgia’s net tax collections in October 2021 approached $2.48 billion, an increase of $460.7 million, or 22.9%, compared to October 2020, when net tax collections totaled roughly $2.02 billion. Year to date, net tax revenue collections totaled nearly $9.58 billion, for an increase of $1.36 billion, over fiscal year 2021.
- The Georgia Court of Appeals has held that local governments can impose sales tax on limousine carriers notwithstanding the Limousine Carrier Act. A limousine carrier had argued that the act prohibits local governments from imposing the collection of state or local-option sales tax on limousine companies and their customers. The court noted that the act, which bars local governments from imposing “excise” and other taxes on limousine carriers, doesn’t apply to sales tax. The court noted that the General Assembly specifically chose not to use the term “sales tax” in the act. (Dkt. No. A21A0955)
- Assessments and penalties were affirmed by the Georgia Tax Tribunal against a taxpayer who failed to report wage payments on his Georgia tax return. In this case, the taxpayer alleged that the wages were capital payments rather than taxable income and that Georgia can’t adjust his income because the IRS had issued him a tax refund for the tax year in issue. The Tribunal held that Georgia taxable net income of an individual is the taxpayer’s federally adjusted gross income, as defined by the Internal Revenue Code (IRC). The IRC specifically lists compensation for services as an item included in gross income. (Dkt. No. TAX-IIT-2033060)
- For the month of October, the Georgia Department of Revenue reported a 16.4% increase in gross sales and use tax collections, or $184.6 million over last year’s total of $1.12 billion. Net sales and use tax increased by $80 million compared to last year, when the net sales and use tax revenue totaled $574.9 million.
- The Georgia Department of Revenue has announced a county tax rate increase for the Georgia county of Bibb. Effective Jan. 1, 2022, Bibb County will impose a 1% “other purpose local option” sales tax. This will increase its total tax rate from 7% to 8%.
- The Georgia Department of Revenue has announced that for the month of October, net corporate income tax collections increased by $42.6 million, or 81.2%, compared to the fiscal year 2020. Notably, corporate income tax return payments increased by $36.7 million, or 155.7%, over last year.