Organizations and companies exempt from corporate net worth tax.

The following are exempt from the payment of the tax imposed by this article:

(1) Those organizations not organized for pecuniary gain or profit;

(2) Insurance companies which are separately taxed; and

(3) Those corporations having a net worth, including capital stock, paid-in surplus, and earned surplus, of no more than $100,000.00. History. Code 1933, § 92-2406, enacted by Ga. L. 1975, p. 147, § 1; Code 1933, § 92-2406.1, enacted by Ga. L. 1975, p. 147, § 2; Ga. L. 1976, p. 405, §§ 7, 8; Code 1933, § 92-2405, enacted by Ga. L. 1976, p. 1580, § 5; Code 1933, § 91A-6303, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1983, p. 1350, § 13; Ga. L. 2017, p. 637, § 2-1/SB 133. Editor’s notes. Ga. L. 1983, p. 1350, § 15, effective January 1, 1984, provides that, should subsection (e) of § 48-6-93 or paragraph (b)(11) of § 48-7-21 be declared invalid or unconstitutional, it is the intent of the General Assembly that the entire Act be held invalid and that the method of taxation affected by the Act revert to the method in effect prior to January 1, 1984. Ga. L. 2017, p. 637, § 3-1(b)/SB 133, not codified by the General Assembly, provides, in part, that this Act shall be applicable to all taxable years beginning on or after January 1, 2018. Law reviews. For article, “Why Captives, Lord, What Have They Ever Done?: The Georgia Captive Insurance Company Act,” see 26 Ga. St. B. J. 119 (1990). JUDICIAL DECISIONS Editor’s notes. In light of the similarity of the statutory provisions, decisions under former Ga. L. 1952, p. 371, § 1, which was subsequently repealed but was succeeded by provisions in this Code section, are included in the annotations for this Code section. Taxation of association all of whose shareholders are exempt, nonprofit organizations. — Association engaged in the business of owning and operating a building which the association maintains, operates, keeps in repair, and rents to tenants and the income from which the association distributes among the association’s shareholders, all of which are labor unions which are nontaxable and nonprofit organizations, which under the association’s charter had as the association’s objects pecuniary gain to the stockholders advancement of their social, ethical, and economical well-being and interests and promotion of the cause of organized labor was not entitled to the exemption under the former version of this section as a corporation not organized for pecuniary gain or profit. Atlanta Labor Temple Ass'n v. Williams, 98 Ga. App. 179, 105 S.E.2d 406, 1958 Ga. App. LEXIS 538 (1958) (decided under former Ga. L. 1952, p. 371, § 1). Organization of a corporation for nonprofit purposes is controlling in determining liability. — Purpose for which a corporation was organized, and not the question of whether it does in fact make a profit, or seek to make a profit, must control in a determination of tax liability. Atlanta Labor Temple Ass'n v. Williams, 98 Ga. App. 179, 105 S.E.2d 406, 1958 Ga. App. LEXIS 538 (1958) (decided under former Ga. L. 1952, p. 371, § 1). OPINIONS OF THE ATTORNEY GENERAL Editor’s notes. In light of the similarity of the statutory provisions, opinions under former Ga. L. 1952, p. 371, § 1, which was subsequently repealed but was succeeded by provisions in this Code section, are included in the annotations for this Code section. Foreign corporation organized under the laws of another state, territory, or nation, not for pecuniary gain or profit, is exempt. 1952-53 Ga. Op. Att'y Gen. 183 (decided under former Ga. L. 1952, p. 371, § 1). Credit bureau incorporated under the laws of this state for the purpose of collecting accounts for the bureau’s members is not exempt as a corporation not organized for pecuniary gain or profit. 1952-53 Ga. Op. Att'y Gen. 433 (decided under former Ga. L. 1952, p. 371, § 1). State and federal credit unions are exempt under present laws from the corporate net worth tax. 1965-66 Op. Att'y Gen. No. 66-92 (decided under former Ga. L. 1952, p. 371, § 1). Taxation of holding companies. — Though state banks and trust companies are exempt from corporation occupation tax, holding company holding and owning real property used by bank and trust company is not exempt. 1962 Ga. Op. Att'y Gen. 493 (decided under former Ga. L. 1952, p. 371, § 1). No refund on liquidation or merger. — Corporation that liquidates or merges with another corporation during a taxable year is not entitled to a refund of a pro rata part of the corporate net worth tax. 1969 Op. Att'y Gen. No. 69-481 (decided under former Ga. L. 1952, p. 371, § 1). RESEARCH REFERENCES Am. Jur. 2d. 71 Am. Jur. 2d, State and Local Taxation, § 244 et seq. C.J.S. 84 C.J.S., Taxation, §§ 180 et seq., 200 et seq., 325 et seq. ALR. Applicability of state license tax law to property or business of individual on land owned by federal government, 46 A.L.R. 224. Discrimination in state taxation of national banks or national bank shares, 59 A.L.R. 10; 81 A.L.R. 502; 87 A.L.R. 846. Exemption of charitable organization from taxation or special assessment, 108 A.L.R. 284. Hospital as within tax exemption provision not specifically naming hospitals, 144 A.L.R. 1483.