Tax on Interest - Levy; Penalty for Tax to Charges

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Installment Loans
  5. Operating Procedures
  6. Tax on Interest - Levy; Penalty for Tax to Charges

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  1. In addition to all other taxes, fees, license fees, fines, or other charges now or hereafter levied or assessed, there is levied a tax of 3 percent on the total amount of interest on any loan collected by any licensee from any borrower to whom such licensee has made an installment loan.
  2. Said tax is levied and assessed against the person so licensed and shall be paid by such person and shall not be added in any manner as an additional fee or charge against the borrower. Any person licensed under this chapter who adds such tax in any manner as an additional fee or charge against the borrower shall be liable for the recovery of triple the amount of such charge by action against the lender in any court of competent jurisdiction.
  3. As used in this Code section, the term "interest collected" means the gross amount of interest charged and collected on loan contracts, less any amount of unearned interest refunded to borrowers and such interest on such portion of uncollectible accounts that are charged off as bad debts by the licensee; except that, for those licensees whose records are kept on an accrual basis, the 3 percent tax levied in subsection (a) of this Code section shall be remitted on such portion of the interest as accrues during the taxable period.

(Ga. L. 1955, Ex. Sess., p. 57, § 1; Ga. L. 1956, p. 86, § 2; Ga. L. 1997, p. 143, § 7; Code 1981, §7-3-19; Code 1981, §7-3-16, as redesignated by Ga. L. 2020, p. 156, § 2/SB 462.)

The 2020 amendment, effective June 30, 2020, redesignated former Code Section 7-3-19 as present Code Section 7-3-16, and, in subsection (a), inserted "fines,", substituted "licensee" for "person licensed under this chapter" and "an installment" for "a loan"; and, in subsection (c), substituted "uncollectible" for "uncollectable" in the middle and substituted "period" for "month" at the end. See Editor's notes at the beginning of this chapter for applicability.

Editor's notes.

- Ga. L. 2020, p. 156, § 2/SB 462, effective June 30, 2020, redesignated former Code Section 7-3-16 as present Code Section 7-3-13.

JUDICIAL DECISIONS

Cited in Bell v. Loosier of Albany, Inc., 137 Ga. App. 50, 222 S.E.2d 839 (1975).

RESEARCH REFERENCES

ALR.

- Constitutionality of statutes imposing duty on borrower to collect and pay over the tax imposed on the lender or owner of the obligations, 60 A.L.R. 742.

Classification of money lenders for purposes of taxation, 93 A.L.R. 209.


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