A tax guide for Georgia citizens [1996]

TABLE OF CONTENTS

Page

The Georgia Department of Revenue

1

Income Tax . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .. 1

Individual Income Tax

1

Withholding Tax

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3

Corporate Income Tax

4

Corporate Tax Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4

Corporate Net Worth Tax

4

Inheritance Tax, Gift Tax, Estate Tax

5

Taxation of Banks and Mutual Financial Institutions. . . . . . . . . . . . . . . . . .. 5

Motor Vehicle Titles, Tags, and Renewal Decals

6

Nonresident Motor Vehicle Use in Georgia

7

Property Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10

Special Assessment Programs

11

Timber

11

Millage Rate

12

Taxation of Public Utilities, Motor Vehicles

and Mobile Homes

12

Real Estate Transfer Tax

14

Gross Receipts Tax for Financial Institutions

14

Intangible Recording Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15

Unclaimed Property

15

Sales and Use Tax

17

Motor Fuel Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22

Motor Carrier Fuel Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22

Field Services Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23

Alcohol and Tobacco Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24

Taxpayer Accounting Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26

Amusement Machine Licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26

State Taxes and Fees Administered by Agencies

Other than the Department of Revenue

28

For More Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29

Department of Revenue Regional Offices

.. 31

1996 Georgia Department of Revenue

Ifyou have a disability and need this material in an alternative format, please call the Department of Revenue at (404) 656-6708, GIST 221-6708, or 656-3441 -- TDD.

IMPORTANT REMINDERS FOR NEW GEORGIA RESIDENTS
1. Apply for Georgia license plates for all of your motor vehicles within thirty (30) days of establishing residence in the county where the vehicles will be located. (See page 7 for more information.)
2. " If you work for a regular salary, fill out the proper G-4 and W-4 forms through your employer. If you are self-employed or otherwise not on a regular salary, and no income taxes are withheld, you should file a Declaration of Georgia Estimated Income Tax together with your first quarterly payment not later than April 15 each year. (See Individual Income Tax section for more information.)
3. Apply for a homestead exemption (property taxes) if you reside in a home you own on January 1. (See "Homestead Exemption" in Property Tax section.)
4. Sales Tax Exemptions: A new resident is not required to pay Use Tax on personal property brought into Georgia as a result of a change of domicile. He or she may be required to pay Georgia Use Tax on property subsequently imported, however, depending on whether or not a similar tax was previously paid on the item to a reciprocating state. Drugs dispensed by prescription, prescription eyeglasses and contact lenses, and oxygen prescribed by a physician, are exempt from tax. Insulin, insulin syringes sold without prescription, and hearing aids are also exempt from tax. Sales transactions for which food stamps or WIC coupons are used as the medium of exchange are also exempt from Sales and Use Tax.
5. O.C.GA Section 48-2-31 stipulates that taxes shall be paid in lawful money of the United States free of any expense to the State of Georgia. When mailing your payment for taxes, please pay with check or money order. Do not send cash through the mail.
6. Your Tax Return is Confidential. In Georgia and throughout the United States, many taxes are collected on the basis of voluntary self-assessment by the taxpaying public. Taxpayers provide information they would not ordinarily disclose to their friends and neighbors, and certainly not to their business competitors.
To preserve the concept of voluntary compliance, Georgia law provides that tax information be kept strictly confidential. The law provides for few exceptions, as in the areas of property taxation, motor fuel taxation, motor vehicle registration, and general statistical information not pertaining to any individual. Other than these few categories, information provided about taxpayers' business and fmancial affairs will be kept strictly confidential and will be seen only by the proper tax administrators.
7. If Your Taxes Are Audited. The Georgia Department of Revenue routinely audits tax records of all types. The Department and U.S. Internal Revenue Service continuously exchange and cross-check information on state and federal returns.

Each auditor is thoroughly trained to make detailed and exhaustive fmdings of pure fact; they exercise absolutely no punitive or judicial authority. Each auditor does, however, exercise authority delegated by the State Revenue Commissioner to examine all books and records pertaining to a taxpayer's income and other tax information.
If a tax deficiency is assessed against a taxpayer, he or she may contest such assessment by filing a written protest and requesting a conference on the matter at the Department's downtown Atlanta headquarters or at one ofthe Department's regional offices. If the matter cannot be settled administratively, then the assessment can be appealed to the Superior Court in the taxpayer's county of residence.
Whenever an adjustment is made by the Federal Government to the income tax liability of a Georgia taxpayer, the taxpayer must formally report that fact to the Georgia Department of Revenue and pay the tax or claim the refund due.
PUBLISHED BY Georgia Department of Revenue
270 Washington Street Atlanta, Georgia 30334 FIFTEENTH EDITION
1996

A CITIZEN'S GUIDE TO GEORGIA TAXES
This pamphlet answers basic questions about Georgia's system of taxation. We hope it will be especially useful to newcomers to our state. Because this information is introductory in nature, it is by no means complete. Detailed inquiries about specific tax matters are best handled by contacting the appropriate division of the Georgia Department of Revenue. (For information about specific inquiries, see page 29.)
THE GEORGIA DEPARTMENT OF REVENUE
The Department of Revenue is the principal tax collecting agency for the State of Georgia. The Department, headed by Acting Commissioner T. Jerry Jackson, strives to be the fairest and most efficient revenue collecting agency in the nation. The Department and the Office of Revenue Commissioner were created by law in 1938. The Revenue Commissioner is appointed by the Governor and is the chief executive officer of the Department. The Commissioner is charged with the duty of administering virtually all of the state's tax laws. (A list of other state agencies that collect various types of fees and charges appears on page 28.) In addition to administering tax laws, the Commissioner is responsible for enforcing laws and regulations pertaining to the control of alcoholic beverages and tobacco products in Georgia and maintaining the title and registration systems and files for all motor vehicles registered in Georgia.
Auditors, accountants, agents, clerks, field representatives, collectors, and specialists in many areas are all authorized agents of the Commissioner. The employees of the Department of Revenue are proud of the agency's national standing and take great pride in pursuing their primary task of administering Georgia's tax laws in a fair and courteous manner. The Department of Revenue is headquartered in the Trinity-Washington Building, 270 Washington Street, in the State Capitol complex.
INCOME TAX
As do most states, Georgia has both an individual income tax and a corporate income tax. Georgia's individual income tax is based on federal adjusted gross income. Georgia's corporate income tax is based on Georgia taxable net income. The Internal Revenue Service and Georgia Income Tax Division thoroughly check and exchange information shown on individual and corporate income tax returns. Georgia income tax forms can be found during the tax-filing season (January 1 through April 15) at most banks, post offices, and Department of Revenue field offices.
INDIVIDUAL INCOME TAX
The Georgia individual income tax is a graduated tax based upon an individual's
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adjusted gross income as computed on his or her federal income tax return. The tax is paid by: 1) all resident individuals, estates, and trusts who file a federal return; 2) all nonresident individuals, estates, and trusts who file a federal return which includes income from sources within Georgia that exceeds five percent of income from all sources; and 3) all residents or nonresidents who have income subject to Georgia income tax that is not subject to federal income tax.
Exclusion ofRetirement Income: Each taxpayer who is a) age 62 or older during any part of the taxable year; or b) permanently and totally disabled, may exclude up to $11,000 ofretirement income for tax year 1994, and up to $12,000 for tax year 1995. Retirement income includes, but is not limited to, interest, dividends, net rentals, capital gains, royalties, pensions, annuities, and the first $4,000 of earned income. Earned income is income from a trade or business, wages, salaries, tips, or other employee compensation. Social Security and Railroad Retirement are exempt from Georgia income tax.
Rate ofTaxation: The tax is computed at a graduated rate and is assessed in a range from one to five percent on the first $10,000 of net taxable income on ajoint or head ofhousehold return (total tax on first $10,000 of net taxable income is $340) plus six percent of the excess of net taxable income over $10,000; one to five percent of the first $7,000 of net taxable income on a single return (total tax on the first $7,000 of net taxable income is $230) plus six percent of the excess of net taxable income over $7,000; one to five percent on the first $5,000 of net taxable income ofa married couple filing separate returns (total tax on the first $5,000 of net taxable income is $170) plus six percent of the excess of net taxable income over $5,000.
Date Return and Tax Due: For calendar year taxpayers the return is due no later than April 15. For fiscal year taxpayers the return is due no later than the 15th day of the fourth month after the close of the taxpayer's fiscal year. The tax is due by the statutory due date of the return. No provision exists for an extension.
Extension of Time for Filing Return: Georgia will accept an automatic federal extension, a copy of which must be attached to the Georgia return in order to avoid any penalty for late filing. The estimated tax liability must be prepaid and submitted with Form 560. Any extension granted is for filing purposes only and does not relieve the taxpayer oflate payment penalties and interest on any amount of tax not paid by the statutory due date.
Exemptions and Deductions: The personal exemption for taxpayer and spouse is $1,500 each. For tax year 1994, the personal exemption for dependents is $2,000. For tax year 1995 and subsequent tax years, the dependent exemption amount is increased to $2,500. The over-age-65 and blind exemption is $700 and is added to the standard deduction. The basic standard deduction is'$2,300 for singles and heads
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of household, $3,000 for joint returns, and $1,500 for married couples filing separately.
Estimated Tax: Each Georgia taxpayer must make a partial advance payment of his or her estimated tax for the current taxable year if his or her Georgia taxable income is not subject to withholding and either 1) exceeds $1,000 for the prior year; or 2) is expected to exceed $1,000 for the current year. Payments are due quarterly.
Tax Credits: A credit is allowed to Georgia resident individuals for income taxes paid to other states (but not to foreign countries). This is a nonrefundable credit against the tax liability. Certain resident individuals whose federal adjusted gross income is no more than $19,999 might be entitled to a refundable low income credit.
Refunds: Almost 70 percent of Georgia taxpayers receive refunds each year. Refund checks are usually received within 30 to 90 days after the return is filed. The earlier and more accurately the return is filed, the earlier any refund due will be received.
WITHHOLDING TAX
Your employer is required to withhold Georgia income taxes from your salary and it must be reflected on your payroll records. If income taxes are not being withheld, it is the taxpayer's responsibility to report incomplete payroll records to the Department of Revenue.
New withholding requirements have been enacted for nonresidents who receive Georgia income. Effective January 1, 1994, Georgia requires any partnership, S corporation, or limited liability company which owns property or does business within this state and pays or credits distributions to members who are not residents of Georgia, to withhold 4 percent on such distributions. Also effective January 1, 1994, a 3 percent withholding tax is required at the source on the sale or transfer of real property and associated tangible property by certain nonresidents. For more information, contact the Income Tax Division Director's Office at (404) 656-4095.
W-2 FORMS: The W-2 form (statement of wages and income taxes withheld) is issued to you for use in preparing your individual income tax return. If you do not receive a W-2 form from your employer during the month after the end of the taxable year, it will be difficult or impossible for your tax return to be processed properly. If you do not receive a W-2, contact your employer at once and request one. If your employer is unable or unwilling to provide a W-2, report it to the Income Tax Division ofthe Georgia Department of Revenue and to the Internal Revenue Service.
Georgia Withholding for Federal Annuitants: Pursuant to legislation passed during the 1994 session ofthe Georgia General Assembly, the Georgia Department of Revenue
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will implement a program for withholding state income tax from annuity payments to federal retirees. The program begins January 1, 1997. Information about this program is available upon request. You may direct all inquiries to the Income Tax Division at (404) 656-4181.
CORPORATE INCOME TAX
The Georgia corporate income tax is a nongraduated percentage tax based on a corporation's Georgia taxable net income. Corporations that own property or do business in Georgia are subject to Georgia income tax.
Rate of Taxation: The rate is 6 percent of a corporation's taxable net income attributable to business done in Georgia.
Date Return and Tax Due: For calendar year taxpayers, the return and the tax are due no later than March 15. For fiscal year taxpayers the return is due no later than the 15th day ofthe third month after the close of the corporation's fiscal year. The tax is due by the statutory due date of the return, and no provision exists for an extension of time to pay the tax.
Extension of Time for Filing Return: Georgia will accept an automatic federal extension, a copy of which must be attached to the Georgia return in order to avoid any penalty for late filing. The tax liability estimated to be due on your return must be prepaid and submitted with Form IT-560C. An extension is for filing purposes only, and does not relieve the taxpayer of late payment penalties and interest on any amount of tax not paid by the statutory due date.
CORPORATE TAX CREDITS
The "Georgia Business Support Act of 1994" which is effective for tax years beginning January 1, 1994, provides the following tax credits for Georgia taxpayers: 1) Job tax credits in all 159 counties; 2) Manufacturer's investment tax credits; 3) Optional Investment Tax Credit; 4) Credits to certain employers who provide approved retraining courses to certain employees; and 5) Credits to employers who provide or sponsor child care for employees.
CORPORATE NET WORTH TAX
This tax is based on the net worth of a corporation and is levied in exchange for the privilege of doing business or exercising a corporate franchise in Georgia. Corporations that own property or do business in Georgia are subject to Georgia net worth tax. Tax is due at the beginning of the year in which business will be conducted.
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Rate of Taxation: The amount varies according to the corporation's net worth. The minimum tax is $10 for a net worth less than $10,001, and the maximum is $5,000 for a net worth in excess of$22,000,000.
Date Return and Tax Due: The first return for a new domestic corporation or a foreign corporation qualifying to do business in Georgia must be filed and the tax paid on or before the 15th day of the third calendar month after incorporation or qualification. Thereafter, an annual return must be filed and the tax paid on or before the 15th day of the third month following the beginning of the corporation's taxable period. There is no provision for an extension for payment of the tax.
Exemptions: Nonprofit organizations (not organized for pecuniary gain or profit) and insurance companies taxed separately are not subject to the corporate net worth tax.
Dormant corporations or corporations with a deficit net worth must file a return and pay the tax to retain their charters. For more information contact the Income Tax Division. For a list oftelephone numbers see page 30.
INHERITANCE TAX, GIFT TAX, ESTATE TAX
Georgia does not have an inheritance tax or a gift tax, but it does have an estate tax. The Georgia estate tax is the amount allowable by the Internal Revenue Service as a credit for state death taxes. In effect, the estate taxes paid to Georgia may be used to reduce the estate taxes due the Internal Revenue Service.
Georgia does not have a separate estate tax return. A copy of the United States Estate Tax Return (Form 706) should be filed with Georgia if Form 706 is filed with the Internal Revenue Service if: 1) the deceased was a resident of Georgia; or 2) the deceased was a nomesident and owned property located in Georgia.
The copy of Form 706 should be filed with Georgia on or before the date the original return must be filed with the Internal Revenue Service, but not later than the date the return is filed with federal authorities. Form 706 may be obtained by contacting the Internal Revenue Service.
TAXATION OF BANKS AND MUTUAL FINANCIAL INSTITUTIONS
All financial institutions (banks and savings and loan associations) located in Georgia must file a Georgia Financial Institutions Business Occupation Tax return on Form 900. These institutions were formerly taxed on bank shares.
Rate ofTaxation: The State Occupation Tax is imposed at the rate of 0.25 percent of adjusted gross receipts. (See Property Tax section for municipal and county gross
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receipts tax computation.) Financial institutions are allowed a dollar-for-dollar tax credit against the state corporate income tax liability for state occupation, municipal, and county gross receipts taxes paid.
Due Date of Return: The State Occupation Tax return is scheduled to be filed by March 1 each year with the Georgia Income Tax Division. This due date will be ext~nded automatically to correspond with the due dates for payment of municipal and/or county business taxes if necessary.
A corporate income tax/net worth tax return (Form 600) must be filed timely.
MOTOR VEHICLE TITLES, TAGS, AND RENEWAL DECALS
Every motor vehicle, trailer, and truck tractor in Georgia, with certain exceptions listed under the law (O.e.G.A. Sections 40-2-20, 40-3-4, and 40-3-20), must be registered with the Georgia Department of Revenue, and a license plate obtained for that vehicle through the office of the County Tax Commissioner where the owner is domiciled, or ifthe motor vehicle is used primarily in connection with an established business enterprise located in a different county, in the county where the business is located. The cost of a regular license plate for a passenger car or small truck is twenty dollars ($20). This fee is in addition to any ad valorem tax, penalties for late application, or mailing fees which may be due. A motor vehicle title is prima facie evidence ofownership of a vehicle. Georgia does not title 1962 and prior year model vehicles. Motor vehicles less than 15 model years old must be titled. (Exception: a 1963 or later model mobile home, crane, travel trailer, or vehicle weighing more than 10,000 pounds must be titled.) Any owner holding a valid certificate of title when the 15-year-old exclusion becomes effective, however, has the option to title his or her vehicle if the chain of ownership has not been broken.
The law requires you to apply for a title at the time your vehicle is purchased. If you do not apply for a title, you cannot purchase a tag. The law requires: a) that a certificate of title be applied for within ninety (90) days after the vehicle's purchase date or acquisition or a $10 penalty fee will be assessed; b) that any rejected title documents be returned properly completed within sixty (60) days after the date of rejection or another $10 penalty fee will be assessed and the vehicle's license plate will expire; and c) that a security interest holder submit a title application to the Motor Vehicle Division or the tag office in the owner's county of residence no later than twenty (20) days after the creation of the security interest in order to validate the security interest as of the date of its creation. Additionally, the seller of a motor vehicle is civilly liable to the purchaser for the failure to provide a certificate of title, and this liability includes payment of the purchaser's attorney's fees. Individuals who deliver or accept title with open assignments will face a $100 fme and/or thirty (30) days in jail for each title so delivered or accepted. The cost of obtaining a title is
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eighteen dollars ($18). This amount does not include title penalties that may be due. A Replacement Certificate ofTitle may be obtained by submitting the following to the Motor Vehicle Division or the County Tag Office: A completed MY-I title application (typed and signed by the applicant) in the same name(s) as the original title, a T-4 lien release form from any lien holder on the original certificate of title which has been satisfied, and the application fee ($8).
NONRESIDENT MOTOR VEHICLE USE IN GEORGIA
Nonresidents who move to Georgia permanently, as opposed to those who are merely sojourning, must purchase a Georgia tag and/or renewal decal within thirty (30) days after establishing residence in Georgia. Any person who does not reside in Georgia but who accepts employment or engages in any trade, profession, or occupation in the state or enters his or her children in Georgia public schools, must purchase a Georgia tag and/or renewal decal within thirty (30) days after entering Georgia.
Visitors who do not reside in Georgia or are just passing through are not required to register their motor vehicle if they remain in the state for less than ninety (90) days provided they are properly registered in their home state and display a valid license plate from that state.
Military personnel are not required to register motor vehicles in Georgia provided they display a valid license plate from their home state. They may purchase Georgia plates if they wish, however.
Out-of-state students may use their motor vehicles in Georgia without having to purchase a tag and/or renewal decal, provided they display a current license plate from their home state, and that the students are residents of states that are members of the Multi-State Reciprocity Agreement.
Where to Apply: Payment of ad valorem (property) taxes, and application for tags and/or renewal decals for all motor vehicles, are made through the county tag agent. The county tag agent is the County Tax Commissioner or Tax Collector. The county tag agent issues all tags or renewal decals except those for certain large trucks, which are issued by the Department of Revenue after application through the county tag office, and for those vehicles requiring an International Registration Plan (IRP)-apportioned license plate. Applications for title must be submitted through the county tag office atthe time the tags are issued or at any time within ninety (90) days ofpurchase to avoid penalty. If an application for title is not submitted within ninety (90) days of purchase, a $10 penalty fee will be assessed. Completed title applications, supporting documents, and title and penalty fees may also be mailed directly to the Department of Revenue.
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Each license tag application must be filed in the county of legal residence of the person who owns the vehicle. If the vehicle is used in connection with an established business enterprise located in another county, the license application must be filed in the county where that business is located. Motor vehicles owned by non-Georgia residents must be registered in the county where they are situated. A decal designating the ~ounty where the vehicle is registered is affixed to the license plate. If a vehicle not specifically excluded by law from this requirement is operated without a valid county decal, the owner/operator may be fmed $25 for a first offense and $100 for a second or subsequent offense. The Motor Vehicle Division of the Department of Revenue is responsible for issuing and maintaining a filing system for titles and registrations of all motor vehicles in Georgia. By law, the tax collector or tax commissioner of each county is charged with the duties of tag agent. Any inquiries or needs conceming motor vehicle registration and titles should be directed initially to the tag agent in your county.
When You Must Apply: Application for a tag must be made within thirty (30) days following the purchase of a new or used motor vehicle. When purchasing a vehicle that is currently registered in Georgia, the new owner must transfer the registration within thirty (30) days from the date of purchase. Application must be made by midnight on the last day of the owner's registration period. In 1997, the registration period in some counties is from January 1 through April 30 (in these counties, residents must register by midnight on April 30). In 1997, the registration period for some counties is staggered for the months of January, February, March, and April. In these 'four month-staggered' counties in 1997, residents must register by midnight on the last day of the month according to their last name. Owners with last names beginning with A, B, C, or D, must register in January; owners with last names beginning with E, F, G, H, I, J, or K, must register in February; owners with last names beginning with L, M, N, 0, P, Q, or R, must register in March; and owners with last names beginning with S, T, D, V, W, X, Y, or Z, must register in April. In 1998, there will be three (3) registration systems in Georgia. Some counties have adopted a non-staggered registration system and residents in those counties must register their vehicles between January 1 and April 30. Other counties have adopted a four month-staggered registration system and residents with birthdays in January, February, and March must register in January; residents with birthdays in April, May, and June must register in February; residents with birthdays in July, August, and September must register in March; and residents with birthdays in October, November, and December must register in April. For entities other than natural persons, registration is required according to the following schedule: January for the owner whose name begins with A, B, C, or D; February for the owner whose name begins with E, F, G, H, I, J or K; March for the owner whose name begins with the
letter L, M, N, 0, P, Q or R; and April for the owner whose name begins with the
letter S, T, D, V, W, X, Y or Z. Other counties have adopted a twelve monthstaggered registration system and residents in those counties must register during the
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30-day period ending on the owner's birthday whose name appears first on the certificate oftitle or other record of vehicle ownership. For entities other than natural persons, the registration period is the registration month based on the first letter of the owner's name according to the following schedule: January for names beginning with A or B; February for names beginning with C or D; March for names beginning with E or F; April for names beginning with G or H; May for names beginning with I or J; June for names beginning with K or L; July for names beginning with M or N; August for names beginning with 0 or P; September for names beginning with Q or R; October for names be@nningwith S or T; November for names beginning with D, V or W; and December for names beginning with X, Y or Z. Regardless of any registration system a county adopts, starting in 1997 vehicles that weigh over 26,000 pounds will be registered in all counties from January 1 through April 30. Additionally, vehicles weighing over 26,000 pounds will no longer be issued a new tag every year. Except for vehicles registered under IRP, revalidation decals will be issued for vehicles weighing over 26,000 pounds in those years in which a metal plate is not issued. The lessee of a vehicle, if a natural person, must register during the registration period of the lessee. Business lessees (other than a natural person) must register according to the registration month of the business/lessee. The application deadline for a title and tag for a vehicle driven by a new resident or a nonresident is thirty (30) days after the vehicle is first operated in Georgia. Most motor vehicle dealers offer to make the original tag application for you but no law says they are required to do so. It is usually offered as a customer service.
Ad Valorem Taxes: Motor vehicle ad valorem taxes must be paid when the tag renewal application is made if the vehicle to be registered was owned during the owner's registration period. The ad valorem tax is a duty levied upon each motor vehicle at a certain percent of the assessed value of the vehicle. These values are set according to vehicle make, model, and year, and are the same from county to county. The tax rates for each tax district vary widely according to the revenue needs of each county and tax district, however. If you receive by mail a pre-printed application (prebill) from the county for tag and ad valorem taxes, using the form to make application will save you time and effort. Write a check or obtain a money order for the amount due plus any charges for mailing and handling (not more than $1 may be charged per application for mailing and handling). Write your insurance company's name, policy number, vehicle color, your date of birth, and social security number in the space provided, sign the form, and return it by mail to the county tag agent. In order to obtain a license plate, residents of some counties must furnish the county tag agent with proofof a current emissions inspection sticker on motor vehicles which are less than 25 model years old and gasoline powered, and that weigh 8,500 Ibs., or less. In turn, the tag agent will mail the license plate or renewal decal and a validated registration certificate. The certificate is a combination form verifying identification of tag issued and receipt for payment of ad valorem taxes on the vehicle. This certificate should be kept with the driver's registration as evidence of receipt of paid
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ad valorem taxes. The certificate may be required when applying for a tag the following year. Law enforcement officers may ask to see the certificate when they stop motorists on highways. This routine procedure helps thwart thefts because the registration certificate helps prove ownership of the vehicle.
Certain handicapped veterans are granted an exemption from all property taxes on one vehicfe they own and on which they have actually placed the free HV motor vehicle license tag. Check with the office of the County Tax Commissioner for additional information.
Tag agents in most Georgia counties send prebills to motor vehicle owners. You can elect to purchase the tag and pay ad valorem taxes at the tag office in person rather than by mail. If you do not get a prebill in the mail, you must contact the tag office and arrange to buy your tag and pay the ad valorem taxes. A penalty is assessed if you miss the deadline.
Individuals or companies that travel in more than one state with vehicles that weigh more than 26,000 Ibs., or that have three or more axles regardless of weight, should register these vehicles under the International Registration Plan. Tags for these vehicles should be purchased by mail directly from the state motor vehicle division rather than from the county tag agent. Please refer to the Georgia IRP information booklet for additional information. Booklets and application forms can be obtained from the Georgia Motor Vehicle Division.
In some states, registration and titling of motor vehicles are the responsibility of the State Patrol or a related public safety agency. In Georgia, these functions are carried out by the Motor Vehicle Division of the Georgia Department of Revenue. The Georgia Department of Public Safety issues driver's licenses.
PROPERTY TAX
The ad valorem tax, commonly called the property tax, is the primary source of revenue for local governments in Georgia, including municipalities, counties, and school districts. In addition, a small amount ofproperty tax revenue goes into the state treasury. County and municipal tax officials collect and administer this tax, but the State Revenue Commissioner exercises certain supervisory authority to assure that the tax is uniformly administered throughout the state and in accordance with the law.
All real and tangible personal property is subject to property tax unless specifically exempted by law. The assessed value that serves as the basis of the tax is 40 percent offair market value unless the property is approved for one of the special assessment programs listed below.
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SPECIAL ASSESSMENT PROGRAMS
The assessment of historic property that qualifies for listing on the Georgia or National Register of Historic Places may not be changed for a period of nine years if such property has been certified by the Department of Natural Resources. Property under tl1is special program must be either:
-- residential property where the rehabilitation has increased the value of such property by at least 50 percent; or
-- income-producing property situated in a historic district and having historic significance.
There are other special assessment programs available to taxpayers who agree to maintain their property in these programs for a period of ten years. These special programs include:
Preferential Agricultural Property -- Bona fide agricultural property can be assessed at 75 percent of the assessment of other property. This means that this type of property is assessed at 30 percent of fair market value rather than 40 percent.
Conservation Use Property -- Bona fide agricultural property can be assessed at its current use value rather than the fair market value.
Environmentally Sensitive Property -- Property can be assessed at its current use value rather than the fair market value when such property is maintained in its natural condition and meets the requirements set by the Department ofNatural Resources.
Residential Transitional Property -- Property can be assessed at its current use value, rather than fair market value, when it is used for residential purposes but located in an area that is changing to, or being developed for, a use other than residential.
Applications for these special assessment programs must be filed with the county tax assessor's office within certain deadline dates. Please contact your county tax assessor's office for additional information.
TIMBER
Standing timber is not taxed until sold or harvested, at which time it is taxed based upon 100 percent of its fair market value. There are three types of sales and harvests that are taxable:
-- Lump Sum Sales where the timber is sold at a specific price regardless of volume.
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-- Unit Price Sales where the timber is sold or harvested based on a specific price per volume.
-- Owner Harvests where a land owner harvests his own timber and sells it by volume.
MILLAGE RATE
The tax rate, or millage, in each county is set annually by the Board of County Commissioners or other governing authority of the taxing jurisdiction, and by the Board of Education. A tax rate of one mill represents a tax liability of one dollar per $1,000 of assessed value. The average county and municipal millage rate in 1995 was approximately 25 mills; the state millage rate in each county was 0.25 mills. Municipalities also assess property taxes based upon county-assessed values and rates established by the municipal governing authority.
TAXATION OF PUBLIC UTILITIES, MOTOR VEHICLES, AND MOBILE HOMES
All properties owned by public utility companies and airline companies must be returned each year to the State Revenue Commissioner by March I. The assessment ofthese properties are proposed by the State Board of Equalization to each county and assessed by each county's Board of Tax Assessors. Taxes are paid directly to the county tax commissioners by the same date as all other tangible property taxes.
The exception to the above is assessments on railroad cars owned by railroad equipment companies. The assessments are determined by the State Board of Equalization and the taxes are collected by the State Revenue Commissioner and distributed to the appropriate taxing authorities.
The ad valorem tax on both mobile homes and motor vehicles are collected by the County Tax Commissioner. Vehicle taxes are collected when tags are purchased.
Who Pays the Tax? The owner ofthe property on January 1 is the party legally liable for payment of the tax. The tax creates a lien against the property. This means that iftaxes have not been paid on the property, it may be levied upon, and ultimately sold, to pay the taxes even though it may have changed hands during the year.
Date the Property Tax is Due: In most counties the property tax must be paid each year on or before December 20. Counties have the legal authority to set certain earlier payment dates. Consult the County Tax Commissioner for specific deadlines.
Property Exempt from Taxation: All public property, all institutions of purely public
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charity, nonprofit hospitals, nonprofit homes for the elderly, places of religious worship and burial, veterans' organizations, all personal property used within the home (ifnot held for sale or other commercial use), all tools and implements oftrade ofmanual laborers, and all domestic animals in an amount under $300 in actual value are exempt.
Personal property of a taxpayer is exempt if the total value of taxable tangible personal property owned by the taxpayer within the county does not exceed $500.
Freeport Exemption: The Georgia Constitution allows each city and county to adopt (by referendum) a tax exemption on certain inventories of manufacturing and distribution businesses within their jurisdiction. The percentage of exemption can be set at 20, 40, 60, 80, or 100 percent of the inventory value. The inventories affected by this exemption may include raw materials, goods in process, finished goods, and goods destined for shipment out of state. Over sixty percent of Georgia counties and cities have adopted the Freeport Exemption at some level.
Foreign merchandise in transit (which has or will be moved by water) is not subject to ad valorem tax at Georgia's ports (Bainbridge, Brunswick, Columbus, Savannah).
Homestead Exemption: Each resident of Georgia is entitled to the regular homestead exemption of $2,000 on property the resident owns and occupies as his or her permanent residence on January 1 of each year. The $2,000 is deducted from the 40 percent assessed value of the homestead property. Homeowners 65 years of age or older with net income of taxpayer and spouse not exceeding $10,000 annually, are allowed an exemption of$4,000. Social security income is excluded from net income in claiming the exemption. Other retirement income is also excluded up to a specified amount. Certain disabled veterans are entitled to a homestead exemption of$38,000. A homestead exemption for school tax purposes is allowed on the first $10,000 of assessed value for persons 62 years of age or older with annual gross household income of $1 0,000 or less. The income of all occupants of the house must be counted, including social security income. Many Georgia counties and municipalities have special homestead exemptions.
Effective January 1, 1995, a floating inflation-proof state and county homestead exemption became available for persons 62 and 65 years of age or older, with a federal adjusted gross income of taxpayer, spouse, and any other persons residing within the household being less than or equal to $30,000. All other state and county (not school) exemptions are removed. CERTAlN STIPULATIONS APPLY.
An application for homestead exemption should be filed with the County Tax Commissioner. Deadline dates vary slightly from county to county but, generally, application must be made before April 1.
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Homeowners should check with the County Tax Commissioner's Office for more information about exemptions and deadline dates before making application.
REAL ESTATE TRANSFER TAX
The ~eal Estate Transfer Tax is a tax imposed on the transfer of real estate located within the State of Georgia.
Rate of Tax: The tax is one dollar on the first $1,000 (or less) of the purchase price or value of the property, and ten cents for each additional $100 or fraction thereof. Transfers with a purchase price or value of less than $100 are not taxable. Encumbrances that existed prior to, and are not removed by, the transfer are deductible in computing the net taxable value of the conveyance.
Who Pays the Tax? The person who presents the deed or instrument for recording is responsible for payment ofthe tax.
When is the Tax Paid? The tax is paid at the time the deed or instrument is received by the Clerk of Superior Court. The deed will not be recorded until the tax is paid.
Where is the Tax Paid? The real estate transfer tax is paid at the office of the Clerk of Superior Court in the county where the real estate is located.
Forms Required: A real estate transfer tax declaration (Form PT-61) must be submitted to the Clerk of Superior Court. This form must be completed and signed by both the buyer and the seller or their authorized agents. The declaration should accompany each deed or instrument submitted for recordation. Form PT-61 may be secured from the office ofthe Clerk of Superior Court in each county. If the property being transferred has not been subdivided or improved during the year, then proper filing ofForm PT-61 relieves the buyer from having to file a property tax return the following tax year. The buyer is still required to file for any exemptions.
GROSS RECEIPTS TAX FOR FINANCIAL INSTITUTIONS
Georgia cities and counties may impose a tax on the gross receipts of financial institutions located within their respective jurisdictions. This tax is known as the Local Business License Tax. The state also imposes a gross receipts tax known as the State Occupation Tax which can be filed on Form 900. File Form 900 and copies of Local Business License Tax forms (PT-440) with the State of Georgia.
The law provides for cities and counties that choose to invoke the gross receipts tax to set a levy of not more than the state rate of 0.25 of one percent. A city or county
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may establish a minimum tax levy of $1,000. The date to file returns each year is March 1.
In addition to the tax on gross receipts, financial institutions are subject to personal property taxes, real property taxes, corporate net worth taxes, and corporate income taxes. For information on Form 900 call (404) 656-4165; for Form PT-440 call your countY or local municipality first. For other inquiries, call (404) 656-4247.
INTANGIBLE RECORDING TAX
The holder of a "long-term" note secured by real estate must pay a Georgia intangible recording tax at $1.50 per $500 or fraction thereof, of the principal amount of the note. The tax must be paid prior to recording the instrument securing the note. "Long-term" means any note where any part of the principal amount falls due more than three years from the date of the note or the date of any instrument executed to secure the note.
The Georgia intangible recording tax is a one-rime-only tax not to exceed $25,000 per any single note and must be paid to the collecting officer of the county in which the real estate securing the note is located. The tax must be paid within ninety (90) days from the date ofthe security instrument in order to avoid a 50 percent penalty and the 1 percent per month interest that results from late payment.
Inquiries concerning specific exemptions from Georgia intangible recording tax should be addressed to the collecting officer of the county in which the property securing the note is located or to the Property Tax Division, Georgia Department of Revenue, 270 Washington Street, Atlanta, GA 30334.
UNCLAIMED PROPERTY
The "Disposition ofUnclaimed Property Act" (O.C.G.A. Sections 44-12-190, et seq.) protects the rights of owners of abandoned property and relieves those holding the property ofthe continuing responsibility to account for such property. Under the Act, when someone ("holder") holds property that belongs to someone else ("owner"), but has lost contact with the owner for a specified period ("holding period"), that holder must turn over ("remit") the property to the state. The state serves as the custodian for any property remitted under the Act allowing the owners or their heirs an opportunity to claim their property in the future.
Filing Your Unclaimed Property Annual Report
Who Must Report? Anyone holding abandoned property must remit it to the state if
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they have held the property for longer than the holding period. This applies to businesses, governmental entities, profit and nonprofit organizations. Companies located out of state, and companies not incorporated in Georgia, must remit abandoned property belonging to an owner having a Georgia address. Holders incorporated in Georgia must remit any unclaimed property of owners having an incomplete, unknown, or foreign address.

What Must Be Reported? Unclaimed property includes any unpaid debt or obligation that has not been claimed by the owner and for which the holding period has expired during the report year. Examples include savings and checking accounts, safe deposit box contents, unpaid wages or commissions, stocks, dividends, certificates of deposit, utility deposits, refunds, money orders, insurance proceeds, and uncashed checks.

When to Report: Unclaimed property is reported and remitted annually. For insurance companies, the report year is the calendar year beginning January I and . ending December 31. The report is due the following May I. For all other holders, the report year is the fiscal year beginning July I and ending June 30, and the report is due four months later -- on November I. The holding period is the time that must elapse before the property is considered abandoned and reportable to the state. The duration depends on the type of property held:

Wages Company Liquidation Proceeds Safe Deposit Boxes Money Orders Travelers Checks All Other Property

-- I year from payday -- I year from sell date -- 2 years from drilling date -- 7 years from issue date -- 15 years from issue date -- 5 years from last contact

Could I Be An Owner ofUnclaimed Property? Do I Have Any Unclaimed Property? When making your inquiry, please provide the name as it would have appeared on the account. Please call (404) 656-4244, or write to the Georgia Unclaimed Property Section at this address:

Georgia Department of Revenue Property Tax Division Unclaimed Property Section 270 Washington Street, Room 404 Atlanta, GA 30334

How to Reclaim Abandoned Property

Should the state be holding abandoned property you believe is yours, simply request a claim form from the Department ofRevenue. You will need to return the completed

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claim form along with documentation proving your identity and ownership of the account. Examples of proofof ownership include account statements, bank books, W2 statements, and letters referencing the unclaimed account. You will also need to provide a copy ofyour driver's license or other form of picture identification. If your evidence reflects that you are the rightful owner of an unclaimed account, you will normally receive a check within thirty (30) days.
Georgia is a custodial state. The state maintains perpetual custody of unclaimed property until it is claimed by the rightful owner or their heirs. There is no time limit to claim your property! If at any time you can prove ownership of the property, Georgia will return the property at NO CHARGE TO YOU!
Individuals or companies that locate unclaimed property for a fee ("locators") often approach Georgia citizens. If a locator offers to help you fmd property that is rightfully yours, CALL THE DEPARTMENT OF REVENUE'S UNCLAIMED PROPERTY SECTION FIRST! Signing an agreement with a locator can be costly. Our section will assist you in locating and reclaiming your property FOR FREE!
How Do I Keep My Property from Becoming Unclaimed?
Keep an accurate record of all financial matters;
Be sure to notify all banks and companies of your new address when you move;
At least once a year, make a deposit or withdrawal on all bank accounts;
Cash all checks received promptly;
Contact the company immediately if you stop receiving stock dividends;
Inform a family member, attorney, or trusted friend of the whereabouts of all fmancial records.
SALES AND USE TAX
Sales and Use Tax is a tax upon the consumption of tangible personal property and certain services. It is levied or imposed upon retail sales, rentals, leases, uses, or consumption of tangible personal property and certain services that are specifically taxed under the Georgia Retailer's and Consumer's Sales and Use Tax Act. Every person making a retail sale should collect and remit the applicable tax on all sales not otherwise supported as exempt. The sales tax rate ranges from 4 to 6 percent of the purchase price or rental charge of tangible personal property sold or rented in Georgia. The tax rate varies among counties because of the Local Option Tax,
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Special County Tax, and Metropolitan Atlanta Rapid Transit Authority (MARTA) Tax. The tax is paid to the seller by the purchaser in addition to the purchase price.

Who Pays the Tax? The seller collects the sales tax from the retail purchaser, renter, lessor, user, or consumer of tangible personal property.

When 'is the Tax Paid? Sales tax is paid at the time of purchase of tangible personal property. Georgia Sales and Use Tax is a point of delivery tax collected when the seller passes title or possession to the purchaser.

What are the Rates? There is a 4 percent statewide sales tax, a 1 percent MARTA Tax in Fulton and DeKalb counties only, a 1 percent Local Option Tax, and/or a 1 percent Special County Tax (where applicable). Local Option and Special County tax rate information, updated quarterly, is available from the Sales and Use Tax Division, Georgia Department of Revenue, P.O. Box 740390, Atlanta, GA 30374-0390. The maximum rate is 6 percent.

There is an established bracket for the collection of sales tax based upon parts of a dollar. There is no requirement to collect tax on sales less than 11 cents. However, every dealer must remit at least the amount of tax due on net taxable sales at the rate where delivery occurs or the amount collected under the following bracket system.

Four Percent Bracket: 10 cents or less 11 cents through 25 cents 26 cents through 50 cents 51 cents through 75 cents 76 cents through $1.00 Over $1.00, 4 cents plus above for parts of a dollar.

No requirement 1 cent
2 cents 3 cents 4 cents

Five Percent Bracket: 10 cents or less 11 cents through 20 cents 21 cents through 40 cents 41 cents through 60 cents 61 cents through 80 cents 81 cents through $1.00 Over $1.00, 5 cents plus above for parts of a dollar.

No requirement 1 cent 2 cents 3 cents
4 cents 5 cents

Six Percent Bracket: 10 cents or less 11 cents through 20 cents 21 cents through 35 cents

No requirement 1 cent 2 cents

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36 cents through 50 cents 51 cents through 67 cents 68 cents through 85 cents 86 cents through $1.00 Over $1.00, 6 cents plus above for parts of a dollar.

3 cents 4 cents 5 cents 6 cents

Who Must File a Return? Every dealer must file a return on the first day of the following calendar month or before the twentieth day of the following calendar month for which the tax is due.

The tax may be reported on the cash or accrual basis of accounting. The seller must make this election based on the filing method on the first return. On the cash basis, the seller reports the sale and remits the tax in the month that the tax is collected. On the accrual basis, the tax is reported in the month the sale is made.

What are the Filing Requirements for Sales and Use Tax? Taxpayers must file a return for each period even iftheir business did not operate or there were no taxable sales. The reporting period is monthly unless the Department of Revenue permits the taxpayer to fIle the return on a quarterly basis. Forms and detailed filing instructions will be sent with the certificate of registration after each taxpayer's application has been processed.

What are the Exemptions? Certain purchasers and dealers are exempt from sales and use tax. A certificate of exemption form must be presented to the seller on transactions between exempt purchasers and dealers. Specific questions regarding particular exemptions, and requests for forms, should be directed to the Sales and Use Tax Division, Georgia Department of Revenue, P.O. Box 740390, Atlanta, GA 30374-0390.

Who Must Register for Sales and Use Tax? Every person, firm, or corporation who sells, uses, distributes, or manufactures tangible personal property in Georgia should register for sales and use tax if:

They sell tangible personal property in Georgia for any purpose;

They import goods from any state or foreign country for sale at retail, or for use, consumption, distribution, or storage in Georgia;

They lease or rent tangible personal property in Georgia for consideration without acquiring title to the property;

They maintain an office, distribution house, sales room, or warehouse in Georgia from which tangible personal property is sold;

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They acquire parts to manufacture tangible personal property for sale at retail or for use, consumption, distribution, or storage in Georgia;
They solicit orders for tangible personal property within Georgia.
What Should I Do With My Certificate of Registration? The certificate must be conspicuously displayed at all times at the location for which the certificate has been issued. It must be displayed in a prominent place where customers or occupants can see it. Each sales location is required to maintain a separate certificate of registration.
Should Contractors and Sub-Contractors Register for Sales Tax? A contractor is deemed to be the ultimate consumer of all material used in constructing, altering, or improving real property and therefore must pay sales tax on all material used in the project. Every business that contracts to furnish tangible personal property or perform services in constructing, altering, remodeling, or improving real property in Georgia must complete an application. If a contractor's business extends into more than one county, one Sales and Use Tax registration number (prefix 214) will cover all operations of the company throughout the state. This number is for reporting contractual activities and paying use tax only; it is not valid for purchasing tangible personal property tax exempt. There are bonding requirements for nonresident contractors as outlined in O.C.GA Sections 48-8-63 and 48-18-32. The Contract Section of the Sales and Use Tax Division may be contacted for additional information or appropriate forms at (404) 656-4080.
Most Frequently Asked Sales and Use Tax Ouestions:
Q. Are freight and transportation charges taxable? A. When tangible personal property is sold F.O.B. destination and/or the transportation cost is passed to the purchaser by the seller, the transaction is subject to tax.
Q. Are shipping and handling charges taxable? A. Yes, if the property is shipped in the seller's vehicle or F.O.B. destination.
Q. Are nonprofit organizations and churches exempt from paying sales and use tax on purchases for use? A. No.
Q. Is computer software taxable? A. The tax applies to prewritten (canned) software and canned software which has been modified for a customer's use. The tax does not apply to software written for a particular customer or tailored to a particular customer's needs, sometimes known as "custom software." Maintenance agreements which are separately stated are not
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subject to the tax.
Q. Are labor charges exempt? A. Repair and installation labor are exempt when separately stated on an invoice. Ifnot separately stated, labor charges are taxable. Fabrication labor is taxable unless the tot~l sale is otherwise exempt.
Q. Are repair charges taxable? A. Materials used in a repair are subject to tax. Installation or repair labor is not subject to the tax when separately stated on the invoice.
Q. Can contractors purchase tangible personal property tax exempt? A. No. Contractors are deemed the consumers of tangible personal property used in a construction project and must pay tax at the time of purchase. This is true even if the materials are used in contracts performed for government agencies.
Q. Is use tax due if property is purchased from a foreign vendor?
A. Yes.
Q. Are government employees and agencies exempt from sales tax on hotel/motel charges? A. Sales to the federal government, the State of Georgia, any county or municipality of this state, or any bona fide department of such governments, when purchased directly from the seller by warrant with appropriated government funds accompanied by an ST-5, Georgia Sales and Use Tax Certificate of Exemption, are exempt. Government employees are not exempt when paying with their own funds even if they are later reimbursed.
Q. Company A sells to Company B (an out-of-state company) and drop ships to Company C (a Georgia company). Is Company A required to collect sales tax? A. Yes. Company A must collect tax on this transaction or obtain a Certificate of Exemption from Company B.
Q. Company A (an out-of-state company) leases tangible personal property to a customer in Georgia. Must Company A collect sales tax or is the customer obligated to pay the tax to the state? A. Company A must collect sales tax on the sale or lease of all property which is delivered into the State of Georgia. Tax must be collected on the gross lease or rental receipts.
Q. Are parts covered under a factory warranty taxable? A. Parts exchanged under a warranty are not taxable. However, if any charge is made for parts, it would be subject to the tax.
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Q. Are parts covered under an extended warranty taxable? A. The cost of any parts used to repair property which is covered under the warranty is subject to sales and use tax, just as are parts used to repair property which is not covered under an extended warranty.
MOTOR FUEL TAX
The Motor Fuel Tax is an excise tax on any motor fuel used to propel a motor vehicle. It is paid initially by licensed distributors of motor fuel and is usually passed on to the consumer at the retail level. The state tax is 7 1/2 cents per gallon plus 3 percent of the retail sales price. In addition, there is a federal tax of 18.3 cents per gallon on gasoline and 24.3 cents per gallon on diesel fuel.
Date Report and Tax Due: Report and tax are due on the 20th of each month for transactions during the preceding month. There is a provision for quarterly or annual reporting. Contact the Motor Fuel Tax Unit for more information.
Exemptions: Many transactions among licensed distributors of motor fuel are exempt from this tax. For specific information regarding these exemptions, consult O.C.G.A. Sections 48-9-3(b)-(d), or contact the Motor Fuel Tax Unit.
Refunds: (1) Agricultural Use: A refund of all but 1 cent per gallon of the tax imposed by O.C.GA Section 49-9-3(a) (I) on gasoline purchased in quantities of 25 gallons or more is permitted by law provided the fuel is used in farm equipment for agricultural purposes; (2) Retail Dealers: Retail dealers of motor fuel are entitled to a refund of 2 percent ofthe first 5 1/2 cents per gallon of taxes imposed on motor fuel to cover evaporation, shrinkage, and spillage losses.
Three Percent Second Motor Fuel Tax (previously Sales Tax): The Motor Fuel Tax Law was amended effective July 1, 1979, to convert the 3 percent sales tax on motor fuel (less the 71/2 cents per gallon state Motor Fuel Tax on gasoline and on all other motor fuels) to a 3 percent Second Motor Fuel Tax. The tax is collected by the Sales and Use Tax Division. Dealers are compensated and penalties and interest are imposed as described in the "Retailer's and Consumer's Sales and Use Tax Act."
MOTOR CARRIER FUEL TAX
The Road Tax on motor carriers is imposed for the privilege of using Georgia's highways. The State ofGeorgia is a member ofthe International Fuel Tax Agreement (1FTA). As a result there is a composite tax rate, equivalent to the 7 1/2 cents per gallon Motor Fuel Tax and the 3 percent Second Motor Fuel Tax, which is published periodically for use in calculating and reporting the amount of tax due. The Road Tax
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applies only to fuel purchased free of Georgia motor fuel taxes and consumed within the state. Carriers that have entirely intra-state operations are not required to register with the state.
Date Report and Tax Due: The report and tax are due on the last day ofthe month immediately following the end of each calendar quarter (April 30, July 31, October 31, Jamiary 31). All registered motor carriers must report each quarter even if no operations were conducted during the reporting period.
Tax Credit: Every motor carrier subject to this tax is entitled to a tax credit equal to any motor fuel taxes paid on fuel purchased in Georgia but not used in Georgia.
Who Pays the Tax? The tax is levied upon and paid by interstate motor carriers, who operate on Georgia highways with: 1) passenger vehicles that seat over 20 passengers, or 2) vehicles with two axles or combination vehicles exceeding 26,000 Ibs., registered gross weight, or 3) vehicles with three axles regardless of weight. You are not a motor carrier if you operate school buses or transit buses exclusively in Georgia, or if the vehicles are owned and operated by federal, state, or local governments.
FIELD SERVICES DIVISION
The Field Services Division handles all tax collection enforcement for the Department of Revenue. Eleven regional offices and one satellite location are maintained throughout the state to provide taxpayer assistance for all tax types. In addition, each office performs collection and audit activities for businesses located in the geographical region covered by that office.
Collections: Each office of the Field Services Division is given the responsibility for collecting unpaid Income, Sales and Use, and Motor Fuel Taxes owed to the state. Agents can provide assistance in preparing tax reports and computing amounts due when requested. Tax payments of any type can be made by mail or in person during regular business hours (8 a.m.-4:45 p.m.).
Taxpayer Assistance: Regional and satellite offices also provide information concerning Georgia taxes in person and by telephone. During Income Tax filing season, please call ahead to ascertain what documents may be required in order to assist you in filing your return. (See the list of office locations and telephone numbers at the back of this booklet.)
Unregistered Businesses: The Field Services Division also enforces tax compliance on special events which often feature out-of-state based or other businesses that are not registered for collection of Sales and Use Tax. Each regional office monitors its
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region to ensure that Sales and Use Tax is being properly collected and remitted.
Special Collections: The division has a Special Collections Office which handles delinquent tax collection from taxpayers who are located outside the State of Georgia.
Task Force: The Illegal Activities Task Force specializes in audit and collection proje'cts which involve illegal or fraudulent tax issues. Investigation of the "Underground Economy" and tax evasion schemes are handled by this office.
ALCOHOL AND TOBACCO DIVISION
The Alcohol and Tobacco Division is composed of two units -- the Alcohol and Tobacco Law Enforcement Unit and the Audit and Regulator Section.
The Department of Revenue collects state excise taxes on cigarettes through the use of tax-paid indicia (stamps) which are placed on the products before they enter the marketplace. Distilled spirits, beer, wine, and cigar taxes are collected via a complex reporting system that eliminates the need for stamps.
The State Revenue Commissioner is charged by law with regulating the legal alcohol industry and preventing the illegal production and sale of alcohol products. Georgia is a local option state in regard to control, sale, and taxation of beverage alcohol products. Under this system, governing authorities of any county or incorporated municipality have sole discretionary power to permit the sale of malt beverages and wine within their jurisdiction. The law does not provide for a referendum for the sale ofthese products.
For the sale of distilled spirits, however, a special referendum must be conducted. If the vote is against the sale of distilled spirits or against mixed drinks, another referendum may not be held for two years; if the vote is against the sale of mixed drinks, the waiting period is one year.
In conjunction with the local option concept, Georgia is also a local license state. Accordingly, a manufacturer, wholesaler, brewpub, retailer, or consumptionon-premises business must first obtain a local license to sell beverage alcohol products prior to obtaining a state license from the Georgia Department of Revenue, Taxpayer Accounting Division. Persons considering engaging in the beverage alcohol business should note that in order to obtain and hold such license, they must be current (paid up to date) in all tax categories in Georgia.
The Department ofRevenue's Alcohol and Tobacco Division administers alcohol and tobacco tax laws. Most laws pertain to distilled spirits, beer, and wine licensees, and
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the manufacturers and distributors of tobacco products. Several important laws are of concern to all taxpayers:
1) The minimum legal drinking age in Georgia is 21.
2) The minimum legal age to purchase cigarettes, tobacco, tobacco products, or tobacco-related objects is 18.
3) Certain types of businesses (primarily restaurants) in specific localities as outlined in a.CG.A. Section 3-3-7, which derive more than 50 percent of their annual gross sales from the sale of prepared meals, may serve beverage alcohol for consumption on premises after 12:30 p.m., on Sundays.
These are the only areas of the state where alcohol beverage sales are permissible on Sundays with the exception of those cities and counties that may under state law sanction alcohol beverage sales for a certain number of hours after midnight Saturday.
4) It is illegal to possess more than a half gallon of non-tax paid distilled spirits in Georgia. If you go to another state, purchase more than a half gallon of distilled spirits and return to Georgia, you would be in possession of illegal alcohol. The restriction applies to all distilled spirits whether or not the bottle has been opened. It is also illegal to manufacture distilled spirits in any quantity in Georgia without a license.
5) Georgia cItizens may bring into the state no more than two cases (48 twelve-ounce containers or 576 total ounces) of non-Georgia tax paid beer at a time. The beer must be for personal consumption and not for resale. Effective July 1, 1993, Georgia law permits a head of household to manufacture up to 50 gallons of malt beverages per year for personal or family consumption.
6) It is illegal to possess more than a half gallon of non-tax paid wine in Georgia. Georgia law, however, permits a head of household to manufacture up to 200 gallons of wine per year for personal or family consumption.
7) No more than ten packs of non-Georgia tax paid cigarettes or twenty individual cigars can be brought into the state by one person at one time. A vehicle carrying more than one individual can carry no more than ten such packs of cigarettes and twenty individual cigars. Persons hauling more than ten packs of non-Georgia tax paid cigarettes or twenty individual non-Georgia tax paid cigars into Georgia are subject to arrest, confiscation of cigarettes and cigars, and seizure of subject vehicle.
Georgia's alcohol and tobacco taxes are:
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Distilled Spirits: An excise tax of 50 cents per liter upon the first sale, use, or final delivery within this State of all distilled spirits, and a similar tax of 70 cents per liter on all alcohol; a tax of 50 cents per liter upon the importation for use, consumption, or final delivery into this State of all distilled spirits; and a similar tax of 70 cents per liter upon the importation of all alcohol; and a local tax, where applicable, of up to 22 cents per liter.

Beer: $1.08 per standard case of 24 twelve-ounce containers of beer plus a uniform local beer tax of $1.20 per standard case.

Wine: An excise tax of 11 cents per liter on the first sale, use, or fmal delivery within this State of all table wines (i.e., wines of 14 percent or less alcohol by volume), and a similar tax of 27 cents per liter on all dessert wines (i.e., wines of more than 14 percent, but not more than 21 percent, alcohol by volume); and a tax of29 cents per liter upon the importation for use, consumption, or fmal delivery into this State of all table wines, and a similar tax of 40 cents per liter upon the importation of all dessert wines. Wine fortified with distilled alcohol containing more than 21 percent alcohol by volume is taxed as distilled spirits. A local tax, where applicable, of up to 22 cents per liter is also due.

Tobacco Products: The state tax on cigarettes is 12 cents per pack ($1.20 per carton); the state tax on cigars is 13 percent of the wholesale price.

TAXPAYER ACCOUNTING DIVISION

The Taxpayer Accounting Division is composed of two units: the Centralized Taxpayer Registration Unit and Centralized Taxpayer Accounting Unit. The Division handles the requisite accounting duties of maintaining balances (bookkeeping, collection, enforcement, and reporting of all tax types) for taxpayers who owe the Department money or those to whom money is owed, plus the registration of:

Sales and Use Tax Withholding Tax IFTA Permit Motor Fuel Tanker Truck Permit

Tobacco License Alcohol License Retail Alcohol License Wholesale Coin-Operated Amusement Machines

All inquiries regarding applications for registration and changes in registration records should be directed to the registration unit.

AMUSEMENT MACHINE LICENSES

Each operator of a coin-operated amusement machine must file an application with the Department of Revenue for an Amusement Machine Master License based upon

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the mnnberofmachines owned. Fees are as follows: For a Level One License (five or fewer machines) -- $250. Should the owner acquire a sixth machine or greater number (not to exceed sixty machines, total) during a calendar year, an additional fee of $1 ,250 shall apply. For a Level Two License (six or more up to a maximum of sixty machines) -- $1,500. Should a sixty-first --or greater number of-- machine(s) be acquired during a calendar year, an additional fee of $1,000 shall apply. For a Level Three License (sixty-one or more machines) -- $2,500.
Six-month Master Licenses can be obtained for the following fees: Level One -$175; Level Two -- $1,050; Level Three -- $1,750.
The law provides for no refund or credit of fees paid should operation of bona fide coin-operated amusement machines cease before the end of the calendar year. Additionally, each machine must have an amusement permit sticker ($25 per machine). These stickers are transferable within the master license to which they are assigned. Master licenses are not transferable, and all are renewable each calendar year. A copy ofthe master license and amusement permit sticker must be displayed at all machine locations.
Amusement machines are described as machines of any kind or character used by the public to provide amusement or entertainment whose operation requires the payment of, or the insertion of, a coin, bill, other money, token, ticket, or similar object and the result of whose operation depends, in whole or in part, upon the skill of the player, whether or not it affords an award to a successful player, and which can be legally shipped interstate according to federal law. Examples of amusement machines include but are not limited to the following: pinball machines, console machines, video games, crane machines, claw machines, pusher machines, bowling machines, novelty arcade games, fooseball or table soccer, miniature racetracks, football or golf machines, target or shooting gallery machines, basketball machines, shuffleboard games, kiddie rides, skeeball, air hockey, roll down machines, coin-operated pool tables, billiard tables, or other similar amusement machines which can be legally operated in Georgia. Pool tables and billiard tables without coin boxes are exempt. They are subject to sales tax on the per-play charge, however.
There are certain machines that are not required to have a license such as pay telephones, cigarette vending machines, coin-operated scales, coin-operated gum machines, parking meters, coin-operated television sets which provide cable or network programming, pay toilets, and coin-operated washing or drying machines.
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STATE TAXES AND FEES ADMINISTERED BY AGENCIES OTHER THAN THE DEPARTMENT OF REVENUE

ITEM
Bank Examination Fees
Boat Registration Fees
Building and Loan Association Fees
Bus and Truck License Fees
Charitable Organization Registration Fees
Corporate Organization Qualification Fees and Charter Renewal Fees
Driver's License Fees Gun Dealer's License Fees Hunting and Fishing License Fees
Industrial Loan Fees
Interstate Commerce Carrier Registration Fees
Insurance Company License Fees, Filing Fees, Premium Tax
Professional License, Examination, and Renewal Fees

AGENCY Banking and Finance
Department of Natural Resources Secretary of State Public Service Commission Secretary of State
Secretary of State
Department of Public Safety Department of Public Safety Department of Natural Resources
Insurance Commissioner's OfficelIndustrial Loan Department
Public Service Commission
Insurance Commissioner's Officellnsurance Department
Secretary of State

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FOR MORE INFORMATION

This publication does not cover all areas of taxation; detailed publications are available from the Department without charge. Complete copies of all laws and regulations may be obtained at a nominal cost from the Secretary of State (Administrative Procedures Division), State Capitol, Atlanta, GA 30334. If any of your questions remain unanswered, please contact the appropriate office listed below. Office hours are 8:00 a.m. to 4:45 p.m.

FIELD SERVICES DIVISION

Georgia Department of Revenue Special Collections Office 323 Trinity-Washington Building Atlanta, GA 30334

DIAL (404)

651-5519

Out-of-State

Delinquent Taxpayers (only)

FAX: (404) 651-6849

ALCOHOL AND TOBACCO DIVISION DIAL (404) 656-

Georgia Department of Revenue 320 Trinity-Washington Building Atlanta, GA 30334 DIRECTOR: (404) 656-4252

Alcohol Taxes/Tobacco Taxes 4262

Tax Stamps

4024

Enforcement

4252

FAX: (404) 657-6880

TAXPAYER ACCOUNTING DIVISION

Georgia Department of Revenue 207 Trinity-Washington Building Atlanta, GA 30334 DIRECTOR: (404) 657-9072

DIAL (404)

657-9072

CENTRALIZED TAXPAYER REGISTRAnON UNIT

Forms Information Motor Fuel Distributor Licenses Alcohol Licenses 1FTA Permits Sales Tax Registration Withholding Account Numbers Amusement Machine Decals Tobacco Licenses

DIAL (404)

656-4092 651-8651

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CENTRALIZED TAXPAYER ACCOUNTING UNIT

Refund Inquiry Refund Inquiry Toll-Free Accounts Receivable Estimated Tax (Individual) Vofded Checks/Undelivered Checks Name Discrepancy/Joint Filer Discrepancy

DIAL (404) 656-

6286

(outside 404)

1-800-338-2389

4674

4183

657-3213

657-9476

INCOME TAX DIVISION

DIAL (404) 656-

Georgia Department of Revenue 507 Trinity-Washington Building Atlanta, GA 30334 DIRECTOR: (404) 656-4095

Individual Returns Corporate Ret. Assistance Corporate Estimate Withholding Trust and Estate

4188 4165 4191 4181 7043

MOTOR FUEL TAX UNIT

DIAL (404) 656-

Sales and Use Tax Division Georgia Department of Revenue 417 Trinity-Washington Building Atlanta, GA 30334 ASST. DIRECTOR: (404) 656-4053

Forms Motor Fuel Tax Motor Carrier Fuel Taxes

4086 4054 4055

MOTOR VEHICLE DIVISION

DIAL (404) 362-

Georgia Department of Revenue

Titles

P.O. Box 740381

Tags

Atlanta, GA 30374-0381

DIRECTOR: (404) 656-4156

Processing Center - 1200 Tradeport Boulevard, Hapeville, GA.

6500 6500

NOTE: Your county tag agent or tax commissioner can probably answer your question or solve your problem.

PROPERTY TAX DIVISION Georgia Department of Revenue 405 Trinity-Washington Building Atlanta, GA 30334 DIRECTOR: (404) 656-4240

DIAL (404) 656-

Real Estate Transfer Tax

4246

Unclaimed Property

4244

Public Utilities

4243

Intangible Recording Tax 4246

Motor Vehicle Values

4108

County Digest

4108 or 9375

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Contact your county tax commissioner first (or, in the case of the real estate transfer tax, contact the Clerk of the Superior Court in your county). If you still have a problem, contact the correct office as listed in Property Tax.

SALES AND USE TAX DIVISION

DIAL (404) 656-

Georgia Department of Revenue 31 0 Trinity-Washington Building Atlanta, GA 30334 DIRECTOR: (404) 656-4060

Accounting Audit Contract Forms Conferee Refunds

4064 4089 4080 4086 4065 (404) 651-9567

Department of Revenue Regional Offices

You may find it faster and more convenient to contact one of the eleven Regional Offices listed below for assistance in the areas of Sales, Income, Motor Fuel, Alcohol and Tobacco Taxes and Enforcement, and Coin-Operated Amusement Machine Licenses and Decals. Office hours are 8:00 a.m.-4:45 p.m., with addresses and telephone numbers as follows:

ALBANY

AUGUSTA

Georgia Department of Revenue Albany Regional Office 2700 Palmyra Road Albany, GA 31707 (912) 430-4241 FAX: (912) 430-3922

Georgia Department of Revenue Augusta Regional Office Interstate W. Office Park, Suite 310 1054 Claussen Road Augusta, GA 30907 (706) 737-1870 FAX: (706) 731-7956

ATHENS
Georgia Department of Revenue Athens Regional Office 190 Ben Burton Circle Bogart, GA 30622 or P.O. Box 1843 Athens, GA 30603-1843 (706) 542-6058 FAX: (706) 542-9973

COLUMBUS
Georgia Department of Revenue Columbus Regional Office 307 15th Street, Room 215 Columbus, GA 3190 I (706) 649-7451 FAX: (706) 649-1050

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DOUGLAS

ROME

Georgia Department of Revenue Douglas Regional Office 111 N. Coffee Avenue Douglas, GA 31533 (91'2) 389-4094 FAX: (912) 389-4411

Georgia Department of Revenue Rome Regional Office 1401 Dean Street, Suite E Rome, GA 30161-6494 (706) 295-6061 FAX: (706) 295-6744

LITHIA SPRINGS

SAVANNAH

Georgia Department of Revenue Lithia Springs Regional Office 351 Thornton Road, Suite 101 Lithia Springs, GA 30057-1596 (770) 732-5812 FAX: (770) 732-5823
MACON
Georgia Department of Revenue Macon Regional Office 630 North Avenue, Suite B Macon, GA 31211-1493 (912) 751-6055 FAX: (912) 751-6016
MORROW
Georgia Department of Revenue Morrow Regional Office 3000 Corporate Center Drive Suite 210 Morrow, GA 30260-4116 (770) 960-2000 FAX: (770) 960-2067

Georgia Department of Revenue Savannah Regional Office 6606 Abercorn Street Suite 220 Savannah, GA 31405 (912) 356-2140 FAX: (912) 353-3012
TUCKER
Georgia Department of Revenue Tucker Regional Office 2082 East Exchange Place Suite 120 Tucker, GA 30084-5334 (770) 414-3500 FAX: (770) 414-3558
Telephone Services for Hearing Impaired Persons (TDD Equipment Required): 3000 Corporate Center Drive, Suite 210, Morrow, GA 30260-4116; TDD Numbers: (770) 960-2069 or 1-800-338-4310.

Satellite Location: Georgia Department of Revenue, Taxpayer Assistance Office, 200 Piedmont Avenue, Room 322, West Tower, Atlanta, GA 30334; (404) 656-4071 FAX: (404) 657-6891.

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