SB141: SB141 Revenue and Taxation; the appeal and protest period from 30 days to 45 days for tax assessments; extend

25 LC 50 1229S Senate Bill 141 By: Senators Hatchett of the 50th, Hufstetler of the 52nd, Albers of the 56th, Kennedy of the 18th, Anavitarte of the 31st and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend Title 48 of the Official Code of Georgia Annotated, re lating to revenue and1 taxation, so as to extend the appeal and protest period from 30 days to 45 days for tax2 assessments; to clarify final determination language for federal income tax adjustments; to3 provide for an extension of preferential assessment periods for certain historic properties; to4 provide for related matters; to provide for an effective date; to repeal conflicting laws; and5 for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 PART I8 SECTION 1-1.9 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is10 amended in Article 2 of Chapter 2, relating to administration, by revising paragraph (2) of11 subsection (c) and subparagraph (c)(6)(A) of Code Section 48-2- 35, relating to refunds,12 claims, and notice to political subdivision designee, as follows:13 "(2) In the event the taxpayer desires a conference or hearing before the commissioner14 or the commissioner's delegate in connection with any claim for refund, he or she shall15 S. B. 141 - 1 - 25 LC 50 1229S specify such desire in writing in the claim and, if the claim c onforms with the16 requirements of this Code section, the commissioner shall grant a conference at a time17 he or she shall reasonably specify. A taxpayer may contest any claim for refund that is18 denied in whole or in part by filing with the commissioner a written protest at any time19 within 30 45 days from the date of notice of refund denial or partial payment. Such 3020 45 day period shall be extended for such additional period as may be agreed upon in21 writing between the taxpayer and the commissioner during the initial 30 45 day period22 or any extension thereof. In the event the taxpayer wishes to request a conference, that23 request shall be included in the written protest. All protests shall be prepared in the form24 and contain such information as the commissioner shall reasonab ly require and shall25 include a summary statement of the grounds upon which the taxpa yer relies, an26 identification of the transactions being contested, and the rea sons for disputing the27 findings of the commissioner. The commissioner shall grant a c onference before the28 commissioner's designated officer or agent at a time specified and shall make reasonable29 rules governing the conduct of conferences. The discretion given in this Code section to30 the commissioner shall be reasonably exercised on all occasions."31 "(6)(A) No action or proceeding for the recovery of a refund under this Code section32 shall be commenced before the expiration of one year from the date of filing the claim33 for refund unless the commissioner or the commissioner's delegate renders a decision34 on the claim within that time, nor shall any action or proceeding be commenced after35 the later of:36 (i) The expiration of two years from the date the claim is denied; or 37 (ii) If a valid protest is filed under paragraph (2) of this subsection, 30 45 days after38 the date of the department's notice of decision on such protest."39 S. B. 141 - 2 - 25 LC 50 1229S SECTION 1-2.40 Said title is further amended in said article by revising subse ction (a) of Code Section41 48-2-38, relating to due date and interest on deferred taxes, as follows:42 "(a) Except as otherwise expressly provided by law, all state taxes and licenses except ad43 valorem and income taxes shall be due and payable either with the return or within 30 4544 days after notice, as the case may be."45 SECTION 1-3.46 Said title is further amended in said article by revising subse ction (a) of Code Section47 48-2-45, relating to service of notice of assessment, as follows:48 "(a)(1) In all cases in which the commissioner is required by l aw to provide an49 opportunity to appeal, the assessment of a tax or license fee s hall become final if no50 written appeal is filed by the taxpayer with the commissioner w ithin 30 45 days of the51 date of the notice of assessment.52 (2) For the purposes of this subsection, the notice shall be deemed to have been given if53 written notice is sent by registered or certified or first-class mail or by statutory overnight54 delivery and addressed to the taxpayer at his or her last known address, as shown on the55 records of the department."56 SECTION 1-4.57 Said title is further amended in said article by revising Code Section 48-2-46, relating to58 procedures for protests, as follows:59 "48-2-46.60 Any taxpayer may contest any proposed assessment or license fee made or determined by61 the commissioner by filing with the commissioner a written protest at any time within 30 62 45 days from the date of notice of the proposed assessment or lic ense fee or within such63 other time limit as may be specified within the notice of propo sed assessment or license64 S. B. 141 - 3 - 25 LC 50 1229S fee, if a different time limit is specified. All protests shal l be prepared in the form and65 contain such information as the commissioner shall reasonably require and shall include66 a summary statement of the grounds upon which the taxpayer relies and his or her reasons67 for disputing the finding of the commissioner. The filing of a written protest, a petition for68 redetermination of a deficiency, or a written request by the taxpayer for additional time for69 filing such a petition shall toll the period of limitations for making an assessment until the70 petition is denied by the commissioner or the request is withdr awn in writing by the71 taxpayer. In the event the taxpayer desires a conference or hearing, the fact of such desire72 must be set out in the protest. The commissioner shall grant a conference before his or her73 officers or agents as he or she may designate at a time he or she shall specify and shall74 make such reasonable rules governing the conduct of conferences as he or she may deem75 proper. The discretion given in this Code section to the commissioner shall be reasonably76 exercised on all occasions."77 SECTION 1-5.78 Said title is further amended in said article by revising Code Section 48-2-54, relating to79 action by commissioner to collect unpaid tax, as follows:80 "48-2-54.81 In the event any taxpayer fails to pay any tax due, the commiss ioner shall notify the82 taxpayer and his or her surety or sureties by mailing a letter to their post office addresses83 last known to the commissioner. If, after 30 45 days of mailing the notice, the amount due84 remains unpaid, the commissioner shall bring an action to colle ct the amount due,85 including, but not limited to, penalties, interest, and costs. It shall not be necessary to make86 the defaulting taxpayer a party to any action that may be brought against his or her surety87 or sureties."88 S. B. 141 - 4 - 25 LC 50 1229S SECTION 1-6.89 Said title is further amended in said article by revising subse ctions (b) and (c) of Code90 Section 48-2-59, relating to appeals, payment of taxes admittedly owed, bond, and costs, as91 follows:92 "(b) The taxpayer shall commence an appeal by filing a petition with the Georgia Tax93 Tribunal in accordance with Chapter 13A of Title 50 or the supe rior court within 30 4594 days from the date of decision by the commissioner or at any ti me after the department95 records a state tax execution pursuant to Code Section 48-3-42.96 (c) Before the superior court shall have jurisdiction to enter tain an appeal filed by any97 aggrieved taxpayer, the taxpayer shall file with the clerk of t he superior court a written98 statement whereby the taxpayer agrees to pay on the date or dates the taxes become due all99 taxes for which the taxpayer has admitted liability. Additiona lly, the taxpayer shall file100 with the clerk of the superior court within 30 45 days from the date of decision by the101 commissioner, except when the value of the appellant's title or interest in real property102 owned in this state is in excess of the amount of the tax in dispute, a surety bond or other103 security in an amount satisfactory to the clerk, conditioned to pay any tax over and above104 that for which the taxpayer has admitted liability and which is found to be due by a final105 judgment of the court, together with interest and costs. It shall be ground for dismissal of106 the appeal if the taxpayer fails to pay all taxes admittedly owed upon the due date or dates107 as provided by law. This subsection shall not apply to appeals filed with the Georgia Tax108 Tribunal as provided in Chapter 13A of Title 50."109 SECTION 1-7.110 Said title is further amended in Article 3 of Chapter 6, relating to intangible recording tax,111 by revising subsection (c) of Code Section 48-6-76, relating to procedure for protesting112 intangible recording tax, payment under protest, special escrow fund, filing claim, approval113 or denial by commissioner, and action for refund, as follows:114 S. B. 141 - 5 - 25 LC 50 1229S "(c) The taxpayer making a payment under written protest may file at any time within 30115 45 days after the date of the payment a claim for refund of the p rotested amount of the116 payment with the commissioner. Each claim shall be in writing, shall be in the form and117 contain such information as the commissioner requires, and shal l include a summary118 statement of the grounds upon which the taxpayer relies in contending that the collection119 of the amount was erroneous or illegal. A copy of the claim shall be filed by the taxpayer120 within the 30 45 day period with the collecting officer or said officer's succe ssor who121 collected the protested amount."122 SECTION 1-8.123 Said title is further amended in Article 2 of Chapter 7, relati ng to imposition, rate,124 computation, exemptions, and credits, by revising subparagraph (d)(2)(C) of Code Section125 48-7-31, relating to taxation of corporations and computation, allocation, and apportionment126 of income, as follows:127 "(C) If the allocation and apportionment provisions provided for in this paragraph do128 not fairly represent the extent of the taxpayer's business acti vity in this state, the129 taxpayer may petition the commissioner for, or the commissioner may by regulation130 require, with respect to all or any part of the taxpayer's business activity, if reasonable:131 (i) Separate accounting;132 (ii) The exclusion of any one or more of the factors;133 (iii) The inclusion of one or more additional factors that wil l fairly represent the134 taxpayer's business activity within this state; or135 (iv) The employment of any other method to effectuate an equitable allocation and136 apportionment of the taxpayer's income.137 The denial of a petition under this subparagraph shall be appealable pursuant to Code138 Section 48-2-59. Such an appeal shall be filed within 30 45 days of the date of the139 commissioner's notice of denial;"140 S. B. 141 - 6 - 25 LC 50 1229S SECTION 1-9.141 Said title is further amended in Article 4 of Chapter 7, relati ng to payment, deficiencies,142 assessment, and collection, by revising subsection (e) of Code Section 48-7-82, relating to143 periods of limitation for assessment of taxes, collection by ex ecution, and change or144 correction of net income, as follows:145 "(e)(1) Except as provided in Code Section 48-7-53, when a taxp ayer's amount of net146 income for any year under this chapter as returned to the United States Department of the147 Treasury is changed or corrected by the commissioner of internal revenue or other officer148 of the United States of competent authority, the taxpayer, within 180 days after the final149 determination date of the changed or corrected net income, shal l make a return to the150 commissioner of the changed or corrected income, and the commis sioner shall make151 assessment within one year from the date the return required by this paragraph is filed or152 the taxpayer shall claim a refund based on the change or correction within one year from153 the date the return required by this paragraph is filed. If the taxpayer does not make the154 return reflecting the changed or corrected net income and the commissioner receives from155 the United States government or one of its agents a report refl ecting the changed or156 corrected net income, the commissioner shall make assessment for taxes due based on the157 change or correction within five years from the date the report from the United States158 government or its agent is actually received. If he or she chooses, the commissioner shall159 have the authority to establish a de minimis amount upon which a taxpayer shall not be160 required to comply with this subsection. For purposes of this subsection the final161 determination date shall be determined as follows:162 (A) Except as provided in subparagraph subparagraphs (B) and (C) of this paragraph,163 the final determination date is the first day on which no chang es or corrections for a164 particular audit remain to be finally determined, whether by agreement, or, if appealed165 or contested, by a final decision with respect to which all rig hts of appeal have been166 waived or exhausted. For agreements required to be signed by t he commissioner of167 S. B. 141 - 7 - 25 LC 50 1229S internal revenue and the taxpayer, the final determination date is the date on which the168 last party signed the agreement; or169 (B) If the taxpayer filed as a member of a combined or consoli dated group, the final170 determination date is the first day on which no related changes or corrections for a171 particular audit remain to be finally determined for the entire group; or172 (C) If the federal adjustment results from filing an amended f ederal return, a federal173 refund claim, or an administrative adjustment request, or if it is a federal adjustment174 reported on an amended federal return or other similar report filed pursuant to Section175 6225(c) of the Internal Revenue Code, the final determination date is the day on which176 the amended return, refund claim, administrative adjustment request, or other similar177 report was filed.178 (2) In the event the taxpayer fails to notify the commissioner of the final determination179 of his or her United States income taxes, the commissioner shall proceed to determine,180 upon evidence that the commissioner has brought to his or her attention or that he or she181 otherwise acquires, the corrected income of the taxpayer for the fiscal or calendar year. 182 If additional tax is determined to be due, the tax shall be assessed and collected. If it is183 determined that there has been an overpayment of tax for the year, the taxpayer, by his184 or her failure to notify the commissioner as required in paragraph (1) of this subsection,185 shall forfeit his or her right to any refund due by reason of the change or correction. A186 taxpayer who so fails to notify the commissioner, however, shall be entitled to equitable187 recoupment of 90 percent of any overpayment so determined against any additional tax188 liability so determined, the remaining 10 percent of the overpa yment being totally189 forfeited as a penalty for failure to make a return as required by paragraph (1) of this190 subsection."191 S. B. 141 - 8 - 25 LC 50 1229S SECTION 1-10.192 Said title is further amended in Article 1 of Chapter 9, relating to motor fuel tax, by revising193 paragraph (5) of subsection (a) of Code Section 48-9-12, relating to powers of commissioner,194 notice of license cancellation, retention of bonds, public insp ection of records, estimated195 assessments, time extensions, and list of licensed distributors, as follows:196 "(5) Reinstate a canceled license when information is provided at a hearing or otherwise197 within 30 45 days of cancellation which satisfies the commissioner that the license should198 be reinstated;"199 PART II200 SECTION 2-1.201 Said title is further amended in Article 1 of Chapter 5, relating to general provisions relative202 to ad valorem taxation of property, by revising paragraph (4) o f subsection (h) of Code203 Section 48-5-7.2, relating to preferential assessment for rehab ilitated historic property, as204 follows:205 "(4) The expiration of nine years during which the property was classified and assessed206 as rehabilitated historic property; provided, however, that any such property may qualify207 thereafter as rehabilitated historic property if such property is subject to subsequent208 rehabilitation and qualifies under the provisions of this Code section; provided, further,209 that, if approved by the governing authority of the county, the classification and210 assessment under this Code section may continue for a period of up to an additional211 12 years for income-producing real property, and such property's fair market value shall212 continue to be calculated pursuant to division (3)(C)(ii) of Code Section 48-5-2 during213 such period."214 S. B. 141 - 9 - 25 LC 50 1229S SECTION 2-2.215 Said title is further amended in said article by revising subpa ragraph (e)(1)(E) of Code216 Section 48-5-7.3, relating to preferential assessment for landm ark historic property, as217 follows:218 "(E) The expiration of nine years during which the property was classified and assessed219 as landmark historic property; provided, however, that any such property may qualify220 thereafter as landmark historic property if such property is su bject to subsequent221 rehabilitation and qualifies under other portions of the historic properties tax incentive222 program contained within the provisions of this Code section; provided, further, that,223 if approved by the governing authority of the county, the classification and assessment224 under this Code section may continue for a period of up to an a dditional 12 years for225 income-producing real property, and such property's fair market value shall continue226 to be calculated pursuant to division (3)(D)(ii) of Code Sectio n 48-5-2 during such227 period."228 PART III229 SECTION 3-1.230 This Act shall become effective on July 1, 2025.231 SECTION 3-2.232 All laws and parts of laws in conflict with this Act are repealed.233 S. B. 141 - 10 -