Imposition of annual corporate net worth tax on all corporations doing business or owning property in state.

In addition to all other taxes imposed by law, there is imposed an annual corporate net worth tax on all corporations incorporated under the laws of this state, all domesticated foreign corporations, and all corporations incorporated or organized under the laws of any other state, territory, or nation doing business or owning property in this state for the privilege of carrying on a business within this state in the corporate form, except as otherwise provided in Code Section 48-13-71. History. Ga. L. 1929, p. 84, § 1; Ga. L. 1931, Ex. Sess., p. 76, § 1; Code 1933, § 92-2401; Ga. L. 1935, p. 11, § 2; Ga. L. 1941, p. 204, § 1; Ga. L. 1951, p. 157, § 5a; Ga. L. 1952, p. 371, § 1; Code 1933, § 92-2401, enacted by Ga. L. 1976, p. 1580, § 1; Code 1933, § 91A-6302, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1979, p. 5, § 107; Ga. L. 2017, p. 637, § 2-2/SB 133. Editor’s notes. 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, “Foreign Corporations in Georgia,” see 10 Ga. St. B.J. 243 (1973). JUDICIAL DECISIONS “Doing business” standard comports with due process. — Phrase “doing business” in former Code 1933, §§ 92-2401 and 92-3113 (see now O.C.G.A. §§ 48-7-31 and 48-13-72 et seq.), which means any activity or transactions for the purpose of financial profit or gain, does not violate the due process requirement of either U.S. Const., amend. 14 or Ga. Const. 1976, Art. I, Sec. I, Para. I (see now Ga. Const. 1983, Art. I, Sec. I, Para. I). Chattanooga Glass Co. v. Strickland, 244 Ga. 603, 261 S.E.2d 599, 1979 Ga. LEXIS 1342 (1979). “Doing business” means any activity or transaction for the purpose of financial profit or gain. Chattanooga Glass Co. v. Strickland, 244 Ga. 603, 261 S.E.2d 599, 1979 Ga. LEXIS 1342 (1979). OPINIONS OF THE ATTORNEY GENERAL Tax imposed by this section is not a tax on doing business but is an annual tax on the privilege of being incorporated. 1957 Ga. Op. Att'y Gen. 282. Liability for the tax first attaches on the date of incorporation. — Fact that a corporation does nothing further is not material, and should not be, since the mere preemption of a corporate name is a benefit flowing from incorporation even when nothing further is done. Moreover, since the statute provides a minimum tax of $10.00 the fact that no capitalization takes place and no money is paid into the corporation is also ineffective to deny liability for the $10.00 minimum tax. 1957 Ga. Op. Att'y Gen. 282. Georgia corporation is taxable, even though the corporation is not doing business. 1954-56 Ga. Op. Att'y Gen. 703. Doing business and owning of property in state not required for taxation. — Corporation organized under Georgia law is liable for the corporate net worth tax even though the corporation is doing no business in this state and owns no property herein. Such a corporation would be subject to the tax based on the corporation’s entire net worth. 1967 Op. Att'y Gen. No. 67-199. No refund upon 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 annual corporate net worth tax. 1969 Op. Att'y Gen. No. 69-481. Taxation of holding companies. — Though state banks and trust companies are exempt from corporation net worth tax, a holding company holding and owning real property used by a bank and trust company is not exempt. 1962 Ga. Op. Att'y Gen. 493. RESEARCH REFERENCES Am. Jur. 2d. 71 Am. Jur. 2d, State and Local Taxation, § 152 et seq. C.J.S. 84 C.J.S., Taxation, § 163 et seq. ALR. Stock contemplated by statute imposing tax upon, or measuring it by, capital stock, 89 A.L.R. 858; 153 A.L.R. 693.