Georgia State and Local Tax Updates March 2019

Georgia Supreme Court upholds Atlanta 2017 annexation of property in Fulton County Industrial District

March 27, 2019

The Georgia Supreme Court has upheld Atlanta’s 2017 annexation of property located within the Fulton County Industrial District. Fulton County sued the city, arguing that the annexation of property within the district was prohibited by a 1979 local constitutional amendment. The GA Supreme Court held that the amendment was void because it violated the “single subject” rule of the GA Constitution, which mandates that any amendment may deal with only one change to the constitution, unless the changes in a single amendment are “related.” (Dkt. No. S18A1156)

 


Georgia updates policy on sales/use tax exemption for qualified food banks

March 27, 2019

The Georgia Department of Revenue has updated a policy bulletin on the sale and use tax exemption for qualified food banks to provide that 2019 letters of authorization (LOAs) issued to qualified food banks will be valid from 4/1/19 through 6/30/20. The update is being issued because a qualified food bank must present a valid LOA to the seller in order to make tax-exempt purchases. Further, for a refund of tax paid on food or food ingredients, a qualified food bank must hold an LOA that’s valid for the period in which the purchase was made.

 


Georgia updates sales and use tax exemption for qualified job training organizations

March 20, 2019

The Georgia Department of Revenue (DOR) has issued a table showing the local sales and use tax rates for energy sold to manufacturers for the second quarter, beginning 4/1/19. The tax rates are imposed for 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.

View the tax rate table here: https://bit.ly/2TMHyj3

 


Georgia updates sales and use tax exemption for qualified job training organizations

March 20, 2019

The Georgia Dept. of Revenue has updated a policy bulletin on the sale and use tax exemption for qualified job training organizations. It provides that 2019 letters of authorization (LOAs), issued to qualified organizations, will be valid from 4/1/19 through 6/30/20. An organization must present a valid LOA to the seller in order to make tax-exempt purchases. A GA organization qualifies if it specializes in selling donated items; provides job training and services to people with workplace disadvantages and disabilities; and meets other conditions. (SUT-2017-04)

 


Georgia releases county tax rate changes effective April 1, 2019

March 13, 2019

The Georgia Dept. of Revenue has updated a policy bulletin on the sale and use tax exemption for qualified job training organizations. It provides that 2019 letters of authorization (LOAs), issued to qualified organizations, will be valid from 4/1/19 through 6/30/20. An organization must present a valid LOA to the seller in order to make tax-exempt purchases. A GA organization qualifies if it specializes in selling donated items; provides job training and services to people with workplace disadvantages and disabilities; and meets other conditions. (SUT-2017-04)

 


Georgia issues guidance on taxation of nonresident military spouses

March 13, 2019

The Georgia Dept. of Revenue (DOR) has issued guidance on the taxation and withholding of state income taxes on wages of certain nonresident military spouses. The guidance applies under the federal Military Spouses Residency Relief Act, when the spouse of a service member may be exempt from state income tax on income from services performed in GA if certain conditions are met. Affected spouses may immediately suspend withholding on their wages by amending Georgia Form G-4 with their employers.

For more details: https://bit.ly/2EvMAWM

 


Georgia releases county tax rate changes effective April 1, 2019

March 6, 2019

The Georgia Dept. of Revenue has released county tax rate changes effective 4/1/19. The following counties will impose an additional 1% tax, increasing the total tax rate in each county from 7% to 8%: Calhoun, Lee, Miller, Oglethorpe, and Terrell. The additional 1% tax is for a single-county Transportation Special Purpose Local Option Sales Tax under GA law.

 


Preapproval applications for Georgia Timber Tax Credit now available

March 6, 2019

The Georgia Dept. of Revenue announced that taxpayers eligible for the Timber Tax Credit can now apply for preapproval on the department’s GA Tax Center. A corporate, fiduciary, partnership/LLC, or individual income tax account is required. The Timber Tax Credit was enacted to assist in offsetting the substantial economic losses incurred during Hurricane Michael. Eligible timber properties must be located in the disaster area.

For more information: https://bit.ly/2SH3AhJ

 


Georgia provides estimated tax penalty relief to farmers and fishermen

March 6, 2019

The Georgia Dept. of Revenue (DOR) is providing estimated tax penalty relief to farmers and fishermen. Like the IRS, the DOR is providing relief because, due to certain federal changes, many farmers and fishermen may have had difficulty accurately determining their tax liability by the March 1 deadline that usually applies to them. Farmers or fishermen who are affected and who miss the March 1 deadline won’t be subject to the underpayment of estimated tax penalty if they file and pay by 4/15/19. Contact Brady Ware with any questions.

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