Special State Occupation Tax on Depository Financial Institutions; Tax Rate Based on Georgia Gross Receipts; Determining Gross Receipts; Return Required; Annual Report of Commissioner; Credits

  1. Law
  2. Georgia Code
  3. Revenue and Taxation
  4. Taxation of Intangibles
  5. Taxation of Financial Institutions
  6. Special State Occupation Tax on Depository Financial Institutions; Tax Rate Based on Georgia Gross Receipts; Determining Gross Receipts; Return Required; Annual Report of Commissioner; Credits

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  1. There is imposed a special state occupation tax on each depository financial institution that conducts business or owns property in this state. The rate of this tax shall be 0.25 percent of the Georgia gross receipts, as defined in subsection (b) of this Code section, of the depository financial institution. This tax shall be in addition to any and all other taxes to which such depository financial institution is subject.
    1. For purposes of this Code section, "Georgia gross receipts" means gross receipts as determined under paragraph (2) of this subsection, unless the taxpayer conducts business both within and outside this state in which case "Georgia gross receipts" means gross receipts as determined under paragraph (2) of this subsection multiplied by the taxpayer's Georgia gross receipts factor determined under paragraph (2) of subsection (d) of Code Section 48-7-31 for the year in which such gross receipts are measured.
    2. For purposes of this Code section, "gross receipts" means the total amount of revenue generated from the sources itemized in this paragraph and in paragraph (3) of this subsection during the calendar year immediately preceding the date on which the tax authorized by this Code section shall be due. Before determining gross receipts there shall be deducted:
      1. An amount equal to the amount of interest paid on all liabilities for the period;
      2. An amount equal to income derived from the authorized activities of any domestic international banking facility operating pursuant to Article 5A of Chapter 1 of Title 7, the "Domestic International Banking Facility Act";
      3. An amount equal to any income arising from the conduct of a banking business with persons or entities located outside of the United States, its territories, or possessions; and
      4. To the extent that any deductions are made pursuant to subparagraphs (B) and (C) of this paragraph, any deductions taken under subparagraph (A) of this paragraph shall be reduced by the same proportion that the deductions in subparagraphs (B) and (C) of this paragraph bear to the gross receipts of the depository financial institution as calculated before making any deductions pursuant to subparagraphs (A) through (C) of this paragraph.
    3. The items to be included in the calculation of gross receipts with respect to banks are as follows:
      1. Interest and fees on loans less any interest collected on those portions of loans sold and serviced for others;
      2. Interest on balances with other depository financial institutions;
      3. Interest on federal or correspondent funds sold and securities purchased under agreement to resell;
      4. Interest on other bonds, notes, and debentures, excluding interest on obligations of the State of Georgia or its political subdivisions and obligations of the United States;
      5. Dividends on stock;
      6. Income from direct lease financing;
      7. Income from fiduciary activities;
      8. Service charges on deposit accounts;
      9. Other service charges, commissions, and fees; and
      10. Other income.
    4. The items to be included in the calculation of gross receipts with respect to savings and loan associations are as follows:
      1. Interest on mortgage loans less any interest collected on those portions of loans sold and serviced for others;
      2. Interest on mortgages, participations, or mortgage backed securities;
      3. Interest on real estate sold on contract;
      4. Discounts on mortgage loans purchased;
      5. Interest on other loans, excluding interest on obligations of the State of Georgia or its political subdivisions and obligations of the United States;
      6. Interest and dividends on investments and deposits;
      7. Loan fees;
      8. Loan servicing fees;
      9. Other fees and charges;
      10. Gross income from real estate owned operations;
      11. Net income from office building operations;
      12. Gross income from real estate held for investment;
      13. Net income from service corporations and subsidiaries;
      14. Miscellaneous operating income;
      15. Profit on sale of real estate owned operations, investment securities, loans, and other assets; and
      16. Miscellaneous nonoperating income.
  3. Each depository financial institution shall file with the commissioner a return of its gross receipts by March 1 of the year following the year in which such gross receipts are measured. Said return shall be in the manner and in the form prescribed by the commissioner. The tax imposed by this Code section shall be paid to the commissioner at the time of filing the return.
  4. The commissioner shall make an annual report to the Governor and to the chairpersons of the House and Senate Appropriations Committees of the amount of special state occupation tax on depository financial institutions collected.
  5. Any tax paid by a depository financial institution pursuant to this Code section shall be credited dollar for dollar against any state income tax liability of such institution for the tax year during which any business or occupation tax authorized by this Code section is paid. Such credit shall be subject to the provisions of Code Section 48-7-29.7.

(Ga. L. 1975, p. 154, § 3; Code 1933, § 91A-3304, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1983, p. 1350, § 9; Ga. L. 1996, p. 181, § 5; Ga. L. 2000, p. 1445, § 4; Ga. L. 2002, p. 415, § 48.)

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 2000, "Code Section 48-7-29.7" was substituted for "Code Section 48-7-29.4" at the end of subsection (e).

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.

Ga. L. 2000, p. 1445, § 5, not codified by the General Assembly, provided in part that the Act shall be applicable to all taxable years beginning on or after January 1, 2001.

Law reviews.

- For article, "Revenue and Taxation: Amend Titles 48, 2, 28, 33, 36, 46, and 50 of the Official Code of Georgia Annotated, Relating Respectively to Revenue and Taxation, Agriculture, the General Assembly, Insurance, Local Government, Public Utilities, and State Government," see 28 Ga. St. U. L. Rev. 217 (2011).


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