Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Georgia.

April 29, 2024

Georgia Lowers Individual Income Tax Rate

Authored by: Brandon Mejiaand Courtney Easterday, MS

On April 18, 2024, Georgia Gov. Kemp signed L. 2024, H1015, which lowers the individual income tax rate from 5.49% to 5.39%, effective July 1, 2024. The tax rate will continue to reduce the income tax rate by 0.1% each year until it reaches 4.99%.

If you have any questions about State and Local individual income taxes, please reach out to a member of the Withum SALT Team.

April 29, 2024

Georgia Corporate Income Tax Rate Lowered to Match Individual Income Tax Rate

Authored by: Brandon Mejiaand Courtney Easterday, MS

On April 18, 2024, Georgia Gov. Kemp signed L. 2024, H1023, which lowers the corporate income tax rate from 5.75% to 5.39%, effective on July 1, 2024, and is applicable to tax years beginning on or after January 1, 2024.

If you have questions about State and Local corporate income taxes, please reach out to a member of the Withum SALT Team.

September 22, 2023

Georgia Provides Tax Relief for Taxpayers Affected by Hurricane Idalia

Authored by: Brandon Mejia and Jonathan Weinberg, JD, LLM, Principal

Following orders from Georgia Governor Kemp, the Georgia Department of Revenue has provided tax relief for taxpayers affected by Hurricane Idalia.

Taxpayers affected by Hurricane Idalia residing in Appling, Atkinson, Bacon, Berrien, Brantley, Brooks, Bulloch, Camden, Candler, Charlton, Clinch, Coffee, Colquitt, Cook, Echols, Emanuel, Glynn, Jeff Davis, Jenkins, Lanier, Lowndes, Pierce, Screven, Tattnal, Thomas, Tift, Ware, and Wayne counties are eligible for hurricane relief. Additionally, taxpayers whose business records are located in the disaster area and relief workers in the disaster area also receive automatic extensions.

With regards to personal income tax, taxpayers entitled to relief provisions will receive an automatic extension to February 15, 2024, to file their returns. Since payment was due on April 15, 2023, the relief provisions do not provide any extension of time to make required estimated income tax payments.

The Georgia disaster relief provisions also cover quarterly estimated income tax payments, quarterly payroll returns and payments, income tax returns due on September 15, 2023, and sales and use tax returns due in October and January. Under the relief provisions, the due date for these returns has been extended to February 15, 2024. For more information about Georgia’s disaster relief provisions, please refer to the Department’s website.

If you have questions about state tax relief stemming from natural disasters, please reach out to a member of the Withum SALT Team.

September 18, 2023

Georgia Suspends Gasoline and Diesel Excise Taxes

Authored by: Brandon Vance, CPA and Katie Szymanski Nguyen, CPA

On September 12, 2023, Georgia Governor Brian Kemp declared a state of emergency, leading to an immediate halt in the state collecting excise taxes on gasoline and diesel. This decision suspends the state’s motor fuel excise taxes of 31.2 cents per gallon of gasoline and 35 cents per gallon of diesel. The motor fuel excise tax suspension takes effect on September 13, 2023, and will remain in place until October 12, 2023.

June 2, 2023

Georgia Will Subject Specified Digital Products to Sales Tax

Authored by: George Gonzales, MST and Brandon Vance, CPA

On May 2, 2023, Georgia Governor Kemp signed Senate Bill 56 imposing sales tax on specified digital products. Specified digital products include (but are not limited to) electronically transferred digital audio-visual works, digital audio works, digital books, artwork, photographs, periodicals, newspapers, magazines, greeting cards, and/or video games. Vendors of specified digital products will be obligated to collect sales and use tax on the sale of such digital products to Georgia customers starting January 1, 2024.

If you have questions about whether your business is obligated to collect sales and use tax on digital goods and services, please reach out to a member of the Withum SALT Team.

December 16, 2022

Georgia Updates Sales and Use Tax Rates for Energy Sold to Manufacturers

Authored by: Zhoudi Tang, MST, CPA and Jessie Racioppi

The Georgia Department of Revenue issued updated sales and use tax rate tables for energy sold to manufacturers effective January 1, 2023. The state sales and use tax rate for energy sold to manufacturers is 0% and the local rate varies from 1% to 2%. The local rates can be found on Georgia’s Department of Revenue website.

August 12, 2022

Georgia Continues To Suspend Fuel Excise Tax Until Mid-September

Authored by: George Gonzales, MST and Katerine Velasquez

On August 3, 2022, Georgia Governor Brian Kemp, signed an executive order to extend the state’s motor fuel excise tax suspension until September 12. This executive order suspends the state’s 29.1 cent-per-gallon tax on gasoline and 32.6 cent-per-gallon tax on diesel. Georgia H.B. 304 originally suspended the state’s fuel excise tax from March 18 through May 31, 2022 but the Governor has now extended the suspension three times via executive order.

April 8, 2022

Georgia Removes Restrictions on Consolidated Corporate Returns

On March 3, 2022, Georgia passed a bill that would amend the current code by removing the preapproval requirement for filing a consolidated corporate return. Under the current code, affiliated corporations are required to file separate income returns unless the taxpayer has received approval from the Georgia Department of Revenue to file on a consolidated basis. Once signed by the Governor, HB 1058 allows affiliated groups the option to elect consolidated filing as a matter of right. Once made, consolidated filing elections are irrevocable for five (5) years. Once enacted, HB 1058 is effective for tax years beginning on or after January 1, 2023.

April 1, 2022

Georgia Governor Signs Bill That Temporarily Halts Gas Tax Through End of May

On March 18, 2022, Georgia Governor Kemp signed legislation that temporarily suspends excise tax collection on motor fuel sales from the date of enactment through May 31, 2022. The taxes suspended apply only to the fuel excise tax imposed under Ga. Code Ann. 48-9-3. The holiday does not apply to local sales or use taxes, including prepaid local tax. The taxes suspended during this holiday are those on gasoline, clear diesel, aviation gasoline, liquid propane gas, gasohol, ethanol, liquefied natural gas and compressed natural gas. Distributors should not remit Georgia motor fuel excise tax on fuel sold during the sales tax holiday.

October 21, 2021

GA – High-Technology Computer Equipment Exemption

Georgia provides a sales tax exemption for specified high-technology companies which purchase or lease at least $15 million worth of qualifying computer (or other high-tech) equipment in the state. The qualification for such an exemption is based on the claimants NAICS Code. Businesses with specific NAICS Codes in sectors 33 and 54 that make qualified purchases exceeding $15 million per year may request for an exemption certificate from the Georgia Department of Revenue.

The Georgia Department of Revenue has released guidance related to reporting requirements for high-technology companies who have been issued an exemption certificate. High-technology companies who have received an exemption certificate must report to the Department:

  1. The location of the facilities where the exempt computer equipment was placed in service during the preceding calendar year; and,
  2. The amount of tax relief provided pursuant to the exemption during the preceding calendar year.

The report is due by the following March 31st for each calendar year the high-technology company utilized the exemption certificate. The department will not renew exemption certificates for any company that has failed to comply with the new reporting requirements.

April 28, 2021

GA Offers Tax Credit for Teachers Who Teach at Qualifying Public Schools

Effective July 1, 2021, and applicable for tax years beginning on or after January 1, 2022, Georgia has established a teacher recruitment and retention program for teachers that teach at certain qualifying rural schools or low-performing schools in high-need subject areas. Participating teachers will be allowed a $3,000 tax credit for each school year, and can be granted such credit for up to five consecutive school years. The credit is not to exceed the taxpayer’s income tax liability, and is not allowed against prior years’ tax liability. Any unused credit may be carried forward to the next succeeding three years.

March 23, 2021

GA Update on Extension of Filing Deadline

The Georgia Department of Revenue (DOR) announced that in conformance with the U.S. Treasury Department and Internal Revenue Service, the state of Georgia is automatically extending the 2020 individual income tax filing and payment deadline from April 15, 2021 to May 17, 2021, without penalties or interest. State estimated income tax payments due on April 15, 2021, are not included in the extension and are still due on April 15th. Additionally, no extension is provided for the filing, payment, or deposit of any other type of state tax or for the filing of any state information returns. Individual taxpayers do not need to file forms or call DOR to qualify for this automatic tax filing and payment extension. Taxpayers are encouraged to file their returns any time before the May 17 deadline. ( https://dor.georgia.gov/press-releases/2021-03-19/georgia-individual-income-tax-deadline-extended .)

March 30, 2020

GA Issues Sales Tax Guidance for Marketplace Facilitators

On March 17, 2020, the Georgia Department of Revenue has issued guidance discussing the duty of marketplace facilitators to collect, remit, and report Georgia sales tax. Effective for sales made on or after April 1, 2020, a marketplace facilitator is defined as a “dealer” when the facilitator facilitates taxable retail sales to be delivered, held for pickup, used, consumed, distributed, stored for use or consumption, or rendered as a service within Georgia, if the total value of the sales price of all such retail sales, combined across all its marketplace sellers and the marketplace facilitator itself, equals or exceeds $100,000 in aggregate in the previous or current calendar year.

March 21, 2020

No Changes to GA Tax Filing Due Date

The Georgia DOR closed their offices but has not changed any tax filing due dates. Learn more here.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.

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The State and Local Tax (SALT) laws vary from state to state and are constantly changing. Reach out to Withum’s SALT Team for guidance on how to navigate your state’s local tax laws.