10 LC 18
8830
House
Bill 1112
By:
Representatives Glanton of the
76th,
Everson of the
106th,
Sellier of the
136th,
Hugley of the
133rd,
Williams of the
165th,
and others
A
BILL TO BE ENTITLED
AN ACT
To
amend Code Section 48-7-27 of the Official Code of Georgia Annotated, relating
to computation of Georgia taxable net income, so as to provide for an exclusion
for certain military retirement income; to provide for procedures, conditions,
and limitations; to provide for applicability; to provide an effective date; to
repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-7-27 of the Official Code of Georgia Annotated, relating to
computation of Georgia taxable net income, is amended in subsection (a) by
revising paragraphs (4) and (5) and adding a new paragraph to read as
follows:
"(4)(A)
Income received from public pension or retirement funds, programs, or systems
the income from which is exempted by federal law or treaty when the income is
otherwise included in the taxpayer's federal adjusted gross income.
(B)
Except as specifically provided in subparagraph (A) of this paragraph, paragraph
(5) of this subsection, and paragraph (7) of this subsection, for taxable years
beginning on or after January 1, 1989,
and except as
specifically provided in paragraph (5.1) of this subsection, for taxable years
beginning on or after January 1, 2010, no
income from a public pension or retirement fund, program, or system (including
those pension or retirement funds, programs, or systems provided for in Title
47) shall be exempt from income taxation in this state, notwithstanding any
provision of Title 47 or any other provision of law to the
contrary;
(5)(A)
Retirement
income, other
than military retirement income which is excluded pursuant to paragraph (5.1) of
this subsection, otherwise included in
Georgia taxable net income not to exceed the exclusion amount as
follows:
(i)
For taxable years beginning on or after January 1, 1989, and prior to January 1,
1990, retirement income not to exceed an exclusion amount of $8,000.00 per year
received from any source;
(ii)
For taxable years beginning on or after January 1, 1990, and prior to January 1,
1994, retirement income not to exceed an exclusion amount of $10,000.00 per year
received from any source;
(iii)
For taxable years beginning on or after January 1, 1994, and prior to January 1,
1995, retirement income from any source not to exceed an exclusion amount of
$11,000.00;
(iv)
For taxable years beginning on or after January 1, 1995, and prior to January 1,
1999, retirement income from any source not to exceed an exclusion amount of
$12,000.00;
(v)
For taxable years beginning on or after January 1, 1999, and prior to January 1,
2000, retirement income from any source not to exceed an exclusion amount of
$13,000.00;
(vi)
For taxable years beginning on or after January 1, 2000, and prior to January 1,
2001, retirement income not to exceed an exclusion amount of $13,500.00 per year
received from any source;
(vii)
For taxable years beginning on or after January 1, 2001, and prior to January
1, 2002, retirement income from any source not to exceed an exclusion amount of
$14,000.00;
(viii)
For taxable years beginning on or after January 1, 2002, and prior to January 1,
2003, retirement income from any source not to exceed an exclusion amount of
$14,500.00;
(ix)
For taxable years beginning on or after January 1, 2003, and prior to January 1,
2006, retirement income from any source not to exceed an exclusion amount of
$15,000.00;
(x)
For taxable years beginning on or after January 1, 2006, and prior to January 1,
2007, retirement income from any source not to exceed an exclusion amount of
$25,000.00;
(xi)
For taxable years beginning on or after January 1, 2007, and prior to January 1,
2008, retirement income from any source not to exceed an exclusion amount of
$30,000.00; and
(xii)
For taxable years beginning on or after January 1, 2008, retirement income from
any source not to exceed an exclusion amount of $35,000.00.
(B)
In the case of a married couple filing jointly, each spouse shall if otherwise
qualified be individually entitled to exclude retirement income received by that
spouse up to the exclusion amount, so that the total amount excluded on such
joint return may if otherwise allowable be up to twice the individual exclusion
amount.
(C)
The exclusion provided for in this paragraph shall not apply to or affect and
shall be in addition to those adjustments to net income provided for under any
other paragraph of this subsection.
(D)
A taxpayer shall be eligible for the exclusion granted by this paragraph only if
the taxpayer:
(i)
Is 62 years of age or older during any part of the taxable year; or
(ii)
Is permanently and totally disabled in that the taxpayer has a medically
demonstrable disability which is permanent and which renders the taxpayer
incapable of performing any gainful occupation within the taxpayer's
competence.
(E)
For the purposes of this paragraph, retirement income shall include but not be
limited to interest income, dividend income, net income from rental property,
capital gains income, income from royalties, income from pensions and annuities,
and no more than $4,000.00 of an individual's earned income. Earned income in
excess of $4,000.00,
including,
but not limited
to,
net business income earned by an individual from any trade or business carried
on by such individual, wages, salaries, tips, and other employer compensation,
shall not be regarded as retirement income. The receipt of earned income shall
not diminish any taxpayer's eligibility for the retirement income exclusion
allowed by this paragraph except to the extent of the express limitation
provided in this subparagraph.
(F)
The commissioner shall by regulation require proof of the eligibility of the
taxpayer for the exclusion allowed by this paragraph.
(G)
The commissioner shall by regulation provide that for taxable years beginning on
or after January 1, 1989, and ending before October 1, 1990, penalty and
interest may be waived or reduced for any taxpayer whose estimated tax payments
and tax withholdings are less than 70 percent of such taxpayer's Georgia income
tax liability if the commissioner determines that such underpayment or
deficiency is due to an increase in net taxable income attributable directly to
amendments to this paragraph or paragraph (4) of this subsection enacted at the
1989 special session of the General Assembly and not due to willful neglect or
fraud;
(5.1)(A)
Military retirement income otherwise included in Georgia taxable net income not
to exceed the exclusion amount provided in subparagraph (B) of this
paragraph.
(B)
For taxable years beginning on or after January 1, 2010, military retirement
income from any source not to exceed an exclusion amount of
$50,000.00.
(C)
In the case of a married couple filing jointly, each spouse shall if otherwise
qualified be individually entitled to exclude retirement income received by that
spouse up to the exclusion amount, so that the total amount excluded on such
joint return may if otherwise allowable be up to twice the individual exclusion
amount.
(D)
The exclusion provided for in this paragraph shall not apply to or affect and
shall be in addition to those adjustments to net income provided for under any
other paragraph of this subsection.
(E)
A taxpayer shall be eligible for the exclusion granted by this paragraph only if
the taxpayer:
(i)
Is 62 years of age or older during any part of the taxable year; or
(ii)
Is permanently and totally disabled in that the taxpayer has a medically
demonstrable disability which is permanent and which renders the taxpayer
incapable of performing any gainful occupation within the taxpayer's
competence.
(F)
The commissioner shall by regulation require proof of the eligibility of the
taxpayer for the exclusion allowed by this
paragraph."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.