Except as is otherwise provided in this title, depository financial institutions shall be subject to all forms of state and local taxation in the same manner and to the same extent as other business corporations in Georgia.
(Ga. L. 1927, p. 56, § 11; Code 1933, § 92-2406; Ga. L. 1935, p. 11, § 11; Ga. L. 1955, p. 450, §§ 1, 2; Ga. L. 1959, p. 327, § 1; Ga. L. 1966, p. 284, § 1; Ga. L. 1973, p. 924, § 3; Code 1933, § 92-2406, enacted by Ga. L. 1975, p. 147, § 1; Ga. L. 1976, p. 405, § 7; Code 1933, § 91A-3301, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1983, p. 1350, § 5; Code 1981, §48-6-90.1, as redesignated by Ga. L. 1996, p. 181, § 2.)
Editor's notes.- Ga. L. 1996, p. 181, § 10, not codified by the General Assembly, provides for a study and report by the state revenue commissioner regarding the effect of the Act on revenue received by the state, counties, and cities in 1997 and 1998 from the tax imposed by Article 4 of Chapter 6 of Title 48 of the Code.
Law reviews.- For article surveying legislative and judicial developments in Georgia local government law for 1978-79, see 31 Mercer L. Rev. 155 (1979). For survey article on constitutional law, see 34 Mercer L. Rev. 53 (1982). For survey article on local government law, see 34 Mercer L. Rev. 225 (1982). For review of 1996 revenue and taxation legislation, see 13 Ga. U. L. Rev. 294 (1996).
JUDICIAL DECISIONSANALYSIS
General Consideration
Constitutionality of bank share tax scheme.
- The 1975 Georgia bank share tax scheme did not subject banks to a tax classification that was so "palpably arbitrary" or "invidious" as to run afoul of the constitutional protections of the equal protection clause of the United States Constitution and the due process clauses of the United States and Georgia Constitutions. Roberts v. Gunter, 251 Ga. 276, 304 S.E.2d 369 (1983).
Former bank share tax statute, Ga. L. 1975, pp. 147-153 (see now O.C.G.A. § 48-6-90), passed in March 1975 and stating that it did "apply to all taxable years beginning on or after January 1, 1975," did not retroactively impose a tax on property held by a bank two and one-half months before the statute was enacted in violation of the constitutional prohibition that "no . . . retroactive law . . . shall be passed." Roberts v. Gunter, 251 Ga. 276, 304 S.E.2d 369 (1983).
State can lawfully tax national banks only as provided by federal law. Goodwin v. Citizens & S. Nat'l Bank, 209 Ga. 908, 76 S.E.2d 620 (1953).
To tax long-term notes separately would violate the declared policy of this state. Washington Loan & Banking Co. v. Golucke, 212 Ga. 98, 90 S.E.2d 575 (1955).
Intent of statute is that the state shall tax full value of shares, and no more. Georgia R.R. Bank & Trust v. Richmond County Bd. of Tax Assessors, 142 Ga. App. 417, 236 S.E.2d 95 (1977).
Notice of assessment of bank share tax on solvent bank.
- Since the bank was statutorily required to act as agent for the shareholders for purposes of the bank share tax, it was proper that notice of assessment be forwarded to the bank. It was not essential, however, that personal notice be sent to the individual shareholders. Roberts v. Gunter, 251 Ga. 276, 304 S.E.2d 369 (1983) (decided prior to 1983 amendment).
Notice of assessment of bank share tax on insolvent bank.
- After a bank had ceased banking operations and was placed in receivership with the FDIC, the bank was no longer the agent of the shareholders for bank share tax purposes, and under these facts, notice of a bank share tax assessment to the receiver or the FDIC would not be notice to the shareholders. Roberts v. Gunter, 251 Ga. 276, 304 S.E.2d 369 (1983) (decided prior to 1983 amendment).
Bank exempt from recording tax on deed to realty and may compel recordation by mandamus.
- Bank chartered under the laws of this state is not subject to payment of the ad valorem recording fee imposed under Ga. L. 1953, Nov.-Dec. Sess., p. 379, § 4 (see now O.C.G.A. § 48-6-61). It is error to sustain a general demurrer (now motion to dismiss) to the bank's petition for a writ of mandamus to require the clerk of the superior court to record a security deed given to secure the payment of a long-term note, without payment of the recording fee. Washington Loan & Banking Co. v. Golucke, 212 Ga. 98, 90 S.E.2d 575 (1955).
Persons and Entities Liable for Tax
Receiver of an insolvent bank is not liable for payment of bank share taxes assessed prior to insolvency, nor does the fact that the bank maintained a reserve account for payment of the taxes at the time the bank went into receivership distinguish the case since it does not appear that these funds had been set apart for the shareholders as dividends or otherwise designated as shareholder property. Roberts v. Gunter, 251 Ga. 276, 304 S.E.2d 369 (1983) (decided prior to 1983 amendment).
Shareholders may ultimately be held liable for unpaid bank share taxes assessed prior to the insolvency of the shareholders' bank. Roberts v. Gunter, 251 Ga. 276, 304 S.E.2d 369 (1983) (decided prior to 1983 amendment).
Taxes payable after expenses of liquidation and claims of depositors.
- State taxes are payable only after all costs and expenses of the administration of the liquidation or dissolution, and the payment of the claims of depositors. Roberts v. Gunter, 251 Ga. 276, 304 S.E.2d 369 (1983) (decided prior to 1983 amendment).
Cited in Bartow County Bank v. Bartow County Bd. of Tax Assessors, 251 Ga. 831, 312 S.E.2d 102 (1984).
OPINIONS OF THE ATTORNEY GENERAL
Section prohibits levy of business license tax on state banks.
- Since municipalities cannot levy a business license tax on national banks, municipalities are prohibited from levying such a tax on state banks. This is true regardless of any provision in a city charter giving the city the right to levy such a tax. 1954-56 Op. Att'y Gen. p. 699.
State revenue laws inapplicable to international banking corporations.- An international banking corporation whose sole contact with this state is the corporation's operation of an agency office licensed under Ga. L. 1974, p. 705, § 1 (see now O.C.G.A. Art. 5, Ch. 1, T. 7) is not a bank for purposes of state revenue statutes. 1976 Op. Att'y Gen. No. 76-105.
RESEARCH REFERENCES
Am. Jur. 2d.
- 71 Am. Jur. 2d, State and Local Taxation, § 351.
C.J.S.- 84 C.J.S., Taxation, §§ 91, 179, 184 et seq., 320, 321, 443, 641 et seq.
ALR.
- State income tax in respect of income from national bank stock, 127 A.L.R. 941.