Georgia HB 846: Revenue and taxation; interest paid on refunds of overpayments of taxes and past due taxes shall be equal to the bank prime loan rate; provide

Bill Text

20 LC 43 1479
H. B. 846
- 1 -
House Bill 846
By: Representatives Corbett of the 174
th, Harrell of the 106
th, Carson of the 46
th, Kelley of
the 16
th, and Williamson of the 115
th
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and1
taxation, so as to provide that interest paid on refunds of overpayments of taxes and past due2
taxes shall be equal to the bank prime loan rate; to allow political subdivisions to make an3
election related repayment of certain final refund amounts being made over a period of time;4
to require the Department of Revenue to establish and maintain a direct pay permit program5
that permits a qualified taxpayer to accrue and pay directly to the department certain state6
and local sales and use taxes; to provide definitions; to provide for related matters; to provide7
for an effective date and applicability; to repeal conflicting laws; and for other purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is11
amended by revising subsection (a) and paragraph (2) of subsection (h) of Code Section12
48-2-35, relating to refunds of taxes and fees, as follows:13
"(a) A taxpayer shall be refunded any and all taxes or fees which are determined to have14
been erroneously or illegally assessed and collected from such taxpayer under the laws15
of this state, whether paid voluntarily or involuntarily, and shall be refunded interest,16
except as provided in subsection (b) of this Code section, on the amount of the taxes or17
fees from the date of payment of the tax or fee to the commissioner at an annual rate18
equal to the bank prime loan rate as posted by the Board of Governors of the Federal19
Reserve System in statistical release H. 15 or any publication that may supersede it, plus20
3 percent, to accrue monthly. Such annual interest rate shall be determined for each21
calendar year based on the first weekly posting of statistical release H. 15 on or after22
January 1 of each calendar year. For the purposes of this Code section, any period of less23
than one month shall be considered to be one month. Refunds shall be drawn from the24
treasury on warrants of the Governor issued upon itemized requisitions showing in each25

20 LC 43 1479
H. B. 846
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instance the person to whom the refund is to be made, the amount of the refund, and the26
reason for the refund."27
"(2)(A) Within 30 business days following the department's receipt of a refund claim28
of local significance, the department shall notify each affected political subdivision's29
political subdivision designee that a refund claim of local significance to the political30
subdivision has been received and shall furnish the taxpayer with a copy of such31
notification. Such notification shall include the date the refund claim of local32
significance was filed, the amount in the claim for refund for which the political33
subdivision itself would be responsible if the request is granted, and a copy of the34
confidentiality provisions in Code Section 48-2-15 and this Code section.35
(B) After the department has completed an audit of the claim for refund and36
determined a final refund amount, the department shall supplement the above notice by37
transmitting to the political subdivision designee the final refund amount for which the38
political subdivision is responsible.39
(i) In lieu of a single payment of the final refund amount to the taxpayer, an affected40
political subdivision may elect for the final refund amount, including applicable41
interest, to be repaid by the department to the taxpayer over a time period less than42
or equal to the total duration of the periods subject to the claim for refund. Any such43
election must be made by the political subdivision, in a manner prescribed by the44
department, within 30 days of the date the department notifies the political45
subdivision of the final refund amount for which the political subdivision is46
responsible.47
(ii) When an election is made pursuant to division (i) of this subparagraph, the48
department shall make payment of the total final refund amount, which shall include49
amounts for both state and local sales and use taxes, to the taxpayer in monthly50
installments due on or before the fifteenth day of each calendar month during51
repayment period. Interest shall accrue on the unpaid balance during such repayment52
period pursuant to subsection (a) of this Code section."53
SECTION 2.54
Said title is further amended by revising subsection (a) of Code Section 48-2-35.1, relating55
to refunds of sales and use taxes, as follows:56
"(a)(1) If a certificate or exemption determination letter issued by the commissioner57
certifying that the purchaser is entitled to purchase tangible personal property or taxable58
services without the payment of sales and use tax has not been obtained and used prior59
to purchasing