Georgia State and Local Tax (SALT) Alerts
State and Local Tax Insights
Georgia State and Local Tax Alerts – December 2020
- The Georgia Supreme Court reversed a Court of Appeals holding that a purchaser in a tax sale was without standing to claim that the executor of the estate previously assented to the devise of the property to the defaulting owner. The property formed part of the estate of the deceased mother and was used by the daughter. The property foreclosed in a tax sale and the purchaser moved to foreclose the statutory right of redemption by giving notice to the daughter, but not to the estate. The Court of Appeals held that the purchaser had no standing to assert that the executor had assented to the devise because the purchaser was a stranger to the estate. (Dkt. No. S19G1645)
- Georgia taxpayers are strongly encouraged to use the Georgia Tax Center to receive and transmit e-signed documents. Unless e-filing is required, the choice to electronically transmit documents to the Georgia Dept. of Revenue is solely at the discretion of the taxpayer. Communications via unencrypted email aren’t secure, so taxpayers should include only minimal identifying information in the body of an email, such as a Letter ID Number with no sensitive information on the subject line and body of unencrypted emails. The use of password-protected encryption for attachments is recommended.
- The Georgia Dept. of Revenue has announced state excise taxes for motor fuel for the 2021 tax year. Effective Jan. 1, 2021 through Dec. 31, 2021, the following state excise tax for motor fuel sold must be remitted by a licensed distributor (supplier or wholesaler) on all sales of motor fuel to any purchaser not properly licensed as a Georgia distributor of that fuel type: gasoline, $0.287 per gallon; diesel, $0.322 per gallon; and aviation fuel, $0.010 per gallon if made to a duly licensed aviation gasoline distributor, if not, a $0.287 per gallon rate will apply.
- Applicable for tax years beginning Jan. 1, 2021, Georgia state law authorizes the holding of ad valorem tax appeal hearings by teleconference or other virtual means. The law allows a taxpayer to recover, in addition to interest, litigation costs and reasonable attorney’s fees in cases where an appeal by the board of assessors results in a final determination of value of 85% or less of the original valuation. The law also requires public utilities to use electronic means in transmitting returns to the Georgia Dept. of Revenue.
- The state of Georgia has adopted the Personal Protective Equipment Manufacturer Jobs Tax Credit. Effective Dec. 24, 2020, the rule implements the recently enacted personal protective equipment manufacturer jobs tax credit and explains eligibility, the limits on the amount of the credit, procedures for claiming the credit and how pass-through entities may use the credit. The rule will apply for tax years beginning Jan. 1, 2020, through Jan. 1, 2025.
- Georgia updates Section 179 expensing limits. The Georgia Dept. of Revenue has updated its guidance on federal tax changes to reflect that for 2020, Georgia has adopted the increased Sec. 179 deduction of $1,040,000 as well as the $2,590,000 phaseout. Georgia hasn’t, however, adopted the Sec. 179(d)(1)(B)(ii) deduction for certain real property.
- Electronic fund transfers, credit card payments and electronic tax filing regulations have been adopted. Effective Dec. 24, 2020, the Georgia Dept. of Revenue has adopted regulations that amend rules that require the electronic filing of Form 900, “Georgia Financial Institutions Business Occupation Tax Return” due on or after March 1, 2021, and the electronic payment of any applicable tax through the department’s Georgia Tax Center to enable the department’s systems to more efficiently process the related income tax credit.
- Through a regulation amendment, the Georgia Dept. of Revenue has added to the list of products or services that a retailer of distilled spirits may sell, display, or keep in stock for sale or furnish at its licensed premises. The added related accessories are designed primarily for accessing alcohol from prepackaged containers, including pods, pouches, capsules or similar containers, to mix or prepare alcoholic beverages. Devices not designed primarily for these purposes, such as household blenders, aren’t eligible.
