SB453: SB453 "Rural Incentive Act"; enact

26 LC 59 0239 Senate Bill 453 By: Senators Summers of the 13th, Goodman of the 8th, Watson of the 11th, Strickland of the 42nd, Hickman of the 4th and others A BILL TO BE ENTITLED AN ACT To amend Code Section 48-7-27 of the Official Code of Georgia A nnotated, relating to1 computation of taxable net income, so as to exempt from taxatio n all income received by2 certain rural residents; to provide for methods of proving residence; to provide for penalties;3 to provide for rules and regulations; to provide for related matters; to provide a short title;4 to provide for an effective date and applicability; to repeal c onflicting laws; and for other5 purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 This Act shall be known and may be cited as the "Rural Incentive Act."9 SECTION 2.10 Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of11 taxable net income, is amended in subsection (a) by striking "and" at the end of paragraph12 (14), by replacing the period at the end of paragraph (15) with "; and", and by adding a new13 paragraph to read as follows:14 S. B. 453 - 1 - 26 LC 59 0239 "(16)(A) All income received by a resident of a rural county, as such term is defined15 in Code Section 48-7-40.17, between 16 and 35 years of age.16 (B) The residence of any taxpayer shall be held to be in that place in which such17 taxpayer's habitation is fixed, without any present intention of removing therefrom.18 (C) The department shall require any taxpayer seeking to claim the deduction19 authorized under subparagraph (A) of this paragraph to submit proof of residence for20 each taxable year in which the deduction is sought. Such proof shall include one or21 more of the following items issued during the taxable year in w hich the deduction is22 sought:23 (i) Property documents, including mortgage statements, property tax bills, and lease24 agreements;25 (ii) Utility bills, including electricity, water, and gas bills; or26 (iii) Financial statements, including bank statements and pay stubs.27 (D) Any taxpayer who files documents required under subparagra p h ( C ) o f t h i s28 paragraph knowing that such documents are false or contain materially false, fictitious,29 or fraudulent statements or representations shall be subject to the penalties provided in30 subsection (c) of Code Section 16-10-20.1.31 (E) The department is authorized to adopt rules and regulation s to provide for the32 administration of the tax credit provided by this paragraph."33 SECTION 3.34 This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years35 beginning on or after January 1, 2027.36 SECTION 4.37 All laws and parts of laws in conflict with this Act are repealed.38 S. B. 453 - 2 -