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Monday, July 08, 2019

NOTES FROM THE SENATE, JULY 8, 2019

FINANCE COMMITTEE BILLS COULD AFFECT YOUR TAXES

Bills that affect state revenues and generally your taxes at some level are important but sometimes don't get as much press coverage other bills. Although I may have already noted passage of some of these tax related bills, I thought that you deserve a coverage of all of the bills that passed which could affect your income and taxes.

AFFECTING AD VALOREM TAXES

--HB 507-For property tax valuation, allows the income approach to be considered if data is available.

--SB 65-Makes a number of revisions to the Title Ad Valorem Tax (TAVT). Revises the definition of fair market value for new, used and kit cars to calculate TAVT liability. The TAVT rate is lowered from 7% to 6.6% from Jan. 1, 2020 until June 30, 2023. SB 65 also transfers of title between legal entities owned by the same individual from TAVT. Also revises the date range for antique vehicles to 1963 to 1989.

--SB 216-Clarifies that a sale for taxes by the tax commissioner may be done at their office or at another location identified in a required notice. Also allows taxpayer to enter into an agreement with a local government or tax commissioner to prepay ad valorem taxes following a resolution by local government. Prepayment is limited to the total of taxes assessed the previous year.

--HB 344-Adds to the existing list of properties exempt from ad valorem taxes. Now includes property owned by a public charity being held exclusively for the purpose of building or repairing single-family homes. Would assist "Habitat for Humanity" to hold property next in line for home building.

--HB 405-Adds to current law on ad valorem exemption for property in process to include repairs or modifications of manufactured goods.

--HB 101-creates one classification for all Class I all-terrain vehicles under the definition of "all-terrain vehicle." Updates markings on law enforcement atv's. Atv's are still exempt from ad valorem taxes while held in inventory.

--HB 183-This bill makes it clear that a taxpayer has the right to appeal their ad valorem property tax assessment regardless or whether they failed to return the real property of whether the property was deemed returned for taxation.

--SB 138-Disabled first responders are granted an exemption from state and local vehicle ad valorem tax (TAVT) fees limited to $50,000 aggregate value over three years. SB 138 also adds to the current exemption from disability payments from state income tax any additional disability income. Additionally, creates a special license tag for the Sickle Cell Foundation.

CONCERNING SALES TAXES

--HB 352-Extends the date of sales tax exemption for purchase of property for projects of regional significance to June 30, 2021.

--HB 35-Creates a sales tax exemption for nonprofit organizations who primarily provide poultry diagnostics and disease monitoring services who are a certified 501c(5) by the IRS.

-- HB 168-Continues the current sales tax exemption state sales and use taxes that non-profit health centers and non-profit health volunteer health clinics no have. Sunsets June 30, 2024.

--HB 182-Adjusts the "Internet Tax Law" to lower the threshold requiring out of state sales tax to be collected on internet sales to $100,000 effective Jan. 1, 2020. Also removes the retailer's option to notify purchasers that a sale may be subject to sales taxes instead of actually collecting and remitting the tax to the state.

BUSINESS RELATED TAXES

--HB 221-Increases the revenue bond indebtedness ceiling from $400 million to $500 million for the World Congress Center.

--HB 287-Creates the Preceptor Tax Incentive Program and provides an income tax credit to community based preceptors that conduct a preceptorship rotation. Maximum of ten in a calendar year.

--HB 321-Effective Oct. 1, 2019, hospitals owned by authorities or nonprofits will be required to publish a list of federal related disclosures and others required by the State. Makes members of hospital authorities subject to state "conflict of interest "laws in some transactions. Requires DCH to create an operations manual to identify and rank in order of need rural hospital organizations with the highest financial need that has not received the maximum contributions through the Hospital Tax Credit legislation. Also requires DOR to publish on its website Information on the Rural Hospital Tax Credit.

--HB 220-Extends sunset of solid waste disposal fee to June 30, 2022 and extends the hazardous waste management and reporting fees until July 1, 2022. HB 220 also reduces the present new tire fee of $1.00 to .38 cents.

--SB 183-Requires any individual that files or is required to file a Form 1099-K with the IRS, to also electronically file a copy with the state Department of Revenue. Existing law requires the filing of wages, taxes withdrawn, etc.

--HB 446-Hurricane Michael Timber Tax credit adjustment removes the requirement for actual replanting of timber to qualify for the disaster funds. Clarifies tax credit can't be transferred twice.

--HB 224-Provides tax credits for rehabilitation of historic structures that may be used in the year the certified rehabilitation is placed in service and allows an additional two years as well. New qualifications for receiving the Quality Job Tax Credit if ten new jobs are created in the same year in a Tier I rural county, or 25 jobs in a Tier 2 rural county or 50 new jobs within the state in a year.

Also increases the state Investment Tax Credit threshold to $100,000. Allows Tier one counties investors to apply tax credit to income taxes within limits.

--SB 127-Requires motor fuel distributors to file the required monthly report electronically to the DOR Commissioner.

Full transcripts of bills may be found at http://www.legis.ga.gov/en-US/default.aspx . Simply type the bill number into the box at the top left-hand corner of the screen and specify if it is in the House or the Senate. The FY 2020 budget (H.B. 31) may be found at http://www.senate.ga.gov/sbeo/en-US/AppropriationsDocuments.aspx. As always, I welcome any questions you may have.

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