23 LC 43 2563-EC/AP H. B. 162 - 1 - House Bill 162 (AS PASSED HOUSE AND SENATE) By: Representatives McDonald of the 26th, Blackmon of the 146th, Gilliard of the 162nd, Meeks of the 178th, Barrett of the 24th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to 1 income taxes, so as to provide for a one-time tax credit for individual taxpayers who filed 2 income tax returns for both the 2021 and 2022 taxable years; to provide for a definition; to 3 provide for related matters; to provide for an effective date; to repeal conflicting laws; and 4 for other purposes. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 6 SECTION 1. 7 Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes, 8 is amended by adding a new Code section to read as follows: 9 "48-7-20.2. 10 (a) As used in this Code section, the term 'qualified taxpayer' means an individual taxpayer 11 who filed an individual income tax return for both the 2021 and 2022 taxable years by the 12 due date for filing the income tax return for the 2022 taxable year, including any extensions 13 which have been granted. Such term shall: 14 (1) Not include any: 15 (A) Nonresident alien individual; 16

23 LC 43 2563-EC/AP H. B. 162 - 2 - (B) Individual who was claimed as a dependent by another taxpayer for federal or 17 Georgia income tax purposes for the 2021 taxable year; or 18 (C) Estate or trust; and 19 (2) Include any individual taxpayer excluded solely due to subparagraph (B) of 20 paragraph (1) of this subsection, provided that such individual had earned income for the 21 2021 taxable year. 22 (b)(1) Once a qualified taxpayer files an individual income tax return for the 2022 23 taxable year, the department shall automatically credit such qualified taxpayer with a 24 one-time refund amount equal to the lesser of: 25 (A) The qualified taxpayer's 2021 individual income tax liability as properly reported 26 on Line 16 of the 2021 Georgia Form 500 or Line 4 of the 2021 Georgia Form 500EZ; 27 or 28 (B) An amount, which is based on such taxpayer's filing status for the 2021 taxable 29 year, equal to: 30 (i) In the case of a single taxpayer or a married taxpayer filing a separate return, 31 $250.00; 32 (ii) In the case of a head of household, $375.00; or 33 (iii) In the case of a married couple filing a joint return, $500.00. 34 (2) Notwithstanding the provisions of paragraph (1) of this subsection, in the case of any 35 taxable nonresident or part-year resident whose tax was prorated as provided by Code 36 Section 48-7-85, the amount of the refund credit determined pursuant to paragraph (1) of 37 this subsection shall be prorated based on the ratio of income taxable to Georgia as 38 properly reported on Schedule 3, Line 9 of the Georgia Form 500 for the 2021 taxable 39 year. 40 (3) In no event shall the department credit pursuant to this Code section any taxpayer 41 with a refund greater than the taxpayer's individual income tax liability as properly 42

23 LC 43 2563-EC/AP H. B. 162 - 3 - reported on Line 16 of the 2021 Georgia Form 500 or Line 4 of the 2021 Georgia Form 43 500EZ. 44 (c) The refunds and credits provided for in this Code section shall not constitute taxable 45 income for Georgia individual income tax purposes. 46 (d) Any refunds due under this Code section to a taxpayer shall be either electronically 47 transmitted or sent by check to such taxpayer, based on the taxpayer's refund instructions, 48 if any, as indicated on the taxpayer's income tax return for the 2022 taxable year, provided 49 that such refund shall first be credited against any outstanding liability existing at the time 50 the refund provided for in this Code section is to be issued. 51 (e) In no event shall the amount of a refund or credit provided for in this Code section 52 accrue interest for the benefit of the taxpayer or be paid or credited to the taxpayer with 53 interest. 54 (f) Any amount due to be refunded or credited to a taxpayer pursuant to this Code section 55 shall be subject to the setoff debt collection provisions of Article 7 of this chapter. 56 (g) The commissioner may promulgate any rules and regulations necessary to implement 57 and administer this Code section." 58 SECTION 2. 59 This Act shall become effective upon its approval by the Governor or upon its becoming law 60 without such approval. 61 SECTION 3. 62 All laws and parts of laws in conflict with this Act are repealed. 63

23 SB 56/AP S. B. 56 - 1 - Senate Bill 56 By: Senators Hufstetler of the 52nd and Williams of the 25th AS PASSED A BILL TO BE ENTITLED AN ACT To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and 1 taxation, so as to require the state revenue commissioner to contract with the Board of 2 Trustees of the Employees' Retirement System of Georgia to offer certain county tax 3 commissioners who are not eligible for any retirement system or county 401(k) or 457(b) 4 plan the option to participate in a state administered deferred compensation plan; to provide 5 for a limited state match of contributions; to provide for terms and conditions; to revise the 6 terms "Internal Revenue Code" and "Internal Revenue Code of 1986" and thereby 7 incorporate certain provisions of the federal law into Georgia law; to revise the rates of 8 taxation on income on individuals, estates, and trusts; to revise certain annual determinations; 9 to revise certain exemptions and deductions; to provide for an income tax credit for certain 10 taxpayers; to revise the definition of "force majeure" to include a pandemic, as relative to tax 11 credits for jobs associated with large-scale projects; to limit the applicability of such term; 12 to extend the sunset date for a tax credit for certain medical preceptor rotations; to provide 13 for the taxation of the sale or purchase of specified digital products, other digital goods, and 14 digital codes; to provide for procedures, conditions, and limitations; to revise and provide for 15 definitions and exemptions; to provide for related matters; to provide for effective dates and 16 applicability; to repeal conflicting laws; and for other purposes. 17

23 SB 56/AP S. B. 56 - 2 - BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 18 PART I 19 SECTION 1-1. 20 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is 21 amended in Part 3 of Article 3 of Chapter 5, relating to compensation for county tax officials 22 and administration, by adding a new Code section to read as follows: 23 "48-5-184. 24 (a) As used in this Code section, the term 'eligible county tax commissioner' means any 25 county tax commissioner or tax collector who is compensated pursuant to Code Section 26 48-5-183 and, as of March 1, 2023, was not eligible to participate in any: 27 (1) Retirement system, as such term is defined in Code Section 47-20-3; or 28 (2) Deferred compensation plan offered by the county that utilizes Section 401(k) or 29 457(b) of the United States Internal Revenue Code of 1986. 30 (b) The state revenue commissioner shall contract with the Board of Trustees of the 31 Employees' Retirement System of Georgia for the administration of a deferred 32 compensation plan offered as a state benefit for eligible county tax commissioners as 33 provided for in this Code section. 34 (c)(1) Subject to the contract required under subsection (b) of this Code section, the 35 Board of Trustees of the Employees' Retirement System of Georgia shall investigate and 36 approve a deferred compensation plan that offers to eligible county tax commissioners 37 income tax benefits in connection with plans authorized by the United States Internal 38 Revenue Code of 1986, so that compensation deferred under such plan shall not be 39 included for purposes of computation of any federal income tax withheld on behalf of any 40 such tax commissioner or payable by such tax commissioner before any deferred payment 41 date. All contributions to such deferred compensation plans shall also be exempt from 42

23 SB 56/AP S. B. 56 - 3 - state withholding tax so long as such contributions are not includable in gross income for 43 federal income tax purposes. 44 (2) Notwithstanding any conflicting provisions of paragraph (1) of this subsection, for 45 any deferred compensation plan established pursuant to said paragraph, the Board of 46 Trustees of the Employees' Retirement System of Georgia shall be authorized to include 47 as an option for eligible county tax commissioners a qualified Roth contribution program 48 in accordance with Section 402A of the United States Internal Revenue Code of 1986. 49 (d)(1) On and after July 1, 2023, for any eligible county tax commissioner who 50 contributes a percentage from his or her minimum annual salary paid by the county 51 pursuant to paragraphs (1) and (2) of subsection (b) of Code Section 48-5-183 into the 52 deferred compensation plan established under this Code section, the state shall contribute 53 an equal amount into such eligible county tax commissioner's plan account, up to a 54 maximum of 5 percent; provided, however, that all state contributions to plan accounts 55 shall be subject to limitations imposed by federal law. 56 (2) Each eligible county tax commissioner may make such additional contributions as 57 he or she desires, subject to limitations imposed by federal law. 58 (e) The Board of Trustees of the Employees' Retirement System of Georgia and the state 59 revenue commissioner shall be entitled to impose requirements for the withholding and 60 remittance of contributions by county governing authorities in order to effectuate this Code 61 section and comply with state and federal law. 62 (f) Any eligible county tax commissioner who becomes eligible to participate in a 63 retirement system or county plan described in paragraph (1) or (2) of subsection (a) of this 64 Code section on or after the effective date of this Code section shall no longer receive the 65 state contributions paid pursuant to subsection (d) of this Code section." 66

23 SB 56/AP S. B. 56 - 4 - PART II 67 SECTION 2-1. 68 Said title is further amended by revising paragraph (14) of Code Section 48-1-2, relating to 69 definitions, as follows: 70 "(14) 'Internal Revenue Code' or 'Internal Revenue Code of 1986' means for taxable years 71 beginning on or after January 1, 2021 2022, the provisions of the United States Internal 72 Revenue Code of 1986, as amended, provided for in federal law enacted on or before 73 January 1, 2022 2023, except that Section 108(i), Section 163(e)(5)(F), Section 74 168(b)(3)(I), Section 168(e)(3)(B)(vii), Section 168(e)(3)(E)(ix), Section 168(e)(8), 75 Section 168(k), Section 168(m), Section 168(n), Section 179(d)(1)(B)(ii), Section 179(f), 76 Section 199, Section 381(c)(20), Section 382(d)(3), Section 810(b)(4), Section 1400L, 77 Section 1400N(d)(1), Section 1400N(f), Section 1400N(j), Section 1400N(k), and Section 78 1400N(o) of the Internal Revenue Code of 1986, as amended, shall be treated as if they 79 were not in effect, and except that Section 168(e)(7), Section 172(b)(1)(F), and Section 80 172(i)(1) of the Internal Revenue Code of 1986, as amended, shall be treated as they were 81 in effect before the 2008 enactment of federal Public Law 110-343, and except that 82 Section 163(i)(1) of the Internal Revenue Code of 1986, as amended, shall be treated as 83 it was in effect before the 2009 enactment of federal Public Law 111-5, and except that 84 Section 13(e)(4) of 2009 federal Public Law 111-92 shall be treated as if it was not in 85 effect, and except that Section 118, Section 163(j), and Section 382(k)(1), and Section 86 174 of the Internal Revenue Code of 1986, as amended, shall be treated as they were in 87 effect before the 2017 enactment of federal Public Law 115-97; provided, however, that 88 all provisions in federal Public Law 117-58 (Infrastructure Investment and Jobs Act) that 89 change or affect in any manner Section 118 shall be treated as if they were in effect, and 90 except that all provisions in federal Public Law 116-136 (CARES Act) that change or 91 affect in any manner Section 172 and Section 461(l) shall be treated as if they were not 92

23 SB 56/AP S. B. 56 - 5 - in effect, and except that all provisions in federal Public Law 117-2 (American Rescue 93 Plan Act of 2021) that change or affect in any manner Section 461(l) shall be treated as 94 if they were not in effect, and except that the limitations provided in Section 179(b)(1) 95 shall be $250,000.00 for tax years beginning in 2010, shall be $250,000.00 for tax years 96 beginning in 2011, shall be $250,000.00 for tax years beginning in 2012, shall be 97 $250,000.00 for tax years beginning in 2013, and shall be $500,000.00 for tax years 98 beginning in 2014, and except that the limitations provided in Section 179(b)(2) shall be 99 $800,000.00 for tax years beginning in 2010, shall be $800,000.00 for tax years 100 beginning in 2011, shall be $800,000.00 for tax years beginning in 2012, shall be 101 $800,000.00 for tax years beginning in 2013, and shall be $2 million for tax years 102 beginning in 2014, and provided that Section 1106 of federal Public Law 112-95 as 103 amended by federal Public Law 113-243 shall be treated as if it is in effect, except the 104 phrase 'Code Section 48-2-35 (or, if later, November 15, 2015)' shall be substituted for 105 the phrase 'section 6511(a) of such Code (or, if later, April 15, 2015),' and 106 notwithstanding any other provision in this title, no interest shall be refunded with respect 107 to any claim for refund filed pursuant to Section 1106 of federal Public Law 112-95, and 108 provided that subsection (b) of Section 3 of federal Public Law 114-292 shall be treated 109 as if it is in effect, except the phrase 'Code Section 48-2-35' shall be substituted for the 110 phrase 'section 6511(a) of the Internal Revenue Code of 1986' and the phrase 'such 111 section' shall be substituted for the phrase 'such subsection.' In the event a reference is 112 made in this title to the Internal Revenue Code or the Internal Revenue Code of 1954 as 113 it existed on a specific date prior to January 1, 2022 2023, the term means the provisions 114 of the Internal Revenue Code or the Internal Revenue Code of 1954 as it existed on the 115 prior date. Unless otherwise provided in this title, any term used in this title shall have 116 the same meaning as when used in a comparable provision or context in the Internal 117 Revenue Code of 1986, as amended. For taxable years beginning on or after January 1, 118 2021 2022, provisions of the Internal Revenue Code of 1986, as amended, which were 119

23 SB 56/AP S. B. 56 - 6 - as of January 1, 2022 2023, enacted into law but not yet effective shall become effective 120 for purposes of Georgia taxation on the same dates upon which they become effective for 121 federal tax purposes." 122 SECTION 2-2. 123 Said title is further amended by revising Code Section 48-7-20, relating to individual income 124 tax rates, credit for withholding and other payments, and applicability to estates and trusts, 125 as in effect on January 1, 2024, as follows: 126 "48-7-20. 127 (a) A tax is imposed upon every resident of this state with respect to the Georgia taxable 128 net income of the taxpayer as defined in Code Section 48-7-27. A tax is imposed upon 129 every nonresident with respect to such nonresident's Georgia taxable net income not 130 otherwise exempted which is received by the taxpayer from services performed, property 131 owned, proceeds of any lottery prize awarded by the Georgia Lottery Corporation, or from 132 business carried on in this state. Except as otherwise provided in this chapter, the tax 133 imposed by this subsection shall be levied, collected, and paid annually. 134 (a.1)(1) On and after January 1, 2024, the tax imposed pursuant to subsection (a) of this 135 Code section shall be at the rates provided in subsection (a.2) of this Code section for 136 each respective tax year 5.49 percent for taxable years beginning on or after January 1, 137 2024; provided, however, that the actual rates for a given year tax year such rate shall be 138 reduced by 0.10 percent annually beginning on January 1, 2025, until the rate reaches 139 4.99 percent, provided such annual reductions in the tax rate shall be subject to delays as 140 provided in paragraph (2) of this subsection. 141 (2) Each prospective change in the tax rates annual reduction in the tax rate that would 142 otherwise occur as provided in paragraphs (2) through (6) of subsection (a.2) of this Code 143 section paragraph (1) of this subsection shall be delayed by one year for each year that 144 any of the following are true as of December 1: 145

23 SB 56/AP S. B. 56 - 7 - (A) The Governor's revenue estimate for the succeeding fiscal year is not at least 3 146 percent above the Governor's revenue estimate for the present fiscal year; 147 (B) The prior fiscal year's net revenue collection was not higher than each of the 148 preceding five three fiscal years' net tax revenue collection; or 149 (C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not 150 contain a sum that exceeds the amount of the decrease in state revenue projected to 151 occur as a result of the prospective reduction in the tax rates set to occur the following 152 year. 153 (3) The Office of Planning and Budget shall make the determinations necessary to 154 implement the provisions of paragraph (2) of this subsection and shall report its 155 determinations by December 1 of each year to the department, the Speaker of the House 156 of Representatives, the President of the Senate, and the chairpersons of the House 157 Appropriations Committee, the House Ways and Means Committee, the Senate 158 Appropriations Committee, and the Senate Finance Committee. This paragraph shall not 159 be applicable after the final reduction in the rates occurs as provided in paragraph (6) of 160 subsection (a.2) of this Code section to the rate of 4.99 percent occurs. 161 (a.2) Subject to the provisions of subsection (a.1) of this Code section: 162 (1) For tax years beginning on or after January 1, 2024, the tax imposed pursuant to 163 subsection (a) of this Code section shall be levied at the rate of 5.49 percent; 164 (2) For tax years beginning on or after January 1, 2025, the tax imposed pursuant to 165 subsection (a) of this Code section shall be levied at the rate of 5.39 percent; 166 (3) For tax years beginning on or after January 1, 2026, the tax imposed pursuant to 167 subsection (a) of this Code section shall be levied at the rate of 5.29 percent; 168 (4) For tax years beginning on or after January 1, 2027, the tax imposed pursuant to 169 subsection (a) of this Code section shall be levied at the rate of 5.19 percent; 170 (5) For tax years beginning on or after January 1, 2028, the tax imposed pursuant to 171 subsection (a) of this Code section shall be levied at the rate of 5.09 percent; and 172

23 SB 56/AP S. B. 56 - 8 - (6) For tax years beginning on or after January 1, 2029, the tax imposed pursuant to 173 subsection (a) of this Code section shall be levied at the rate of 4.99 percent. 174 (b)(1) Reserved. 175 (2) To facilitate the computation of the tax by those taxpayers whose federal adjusted 176 gross income together with the adjustments set out in Code Section 48-7-27 for use in 177 arriving at Georgia taxable net income is less than $10,000.00, the commissioner may 178 construct tax tables which may be used by the taxpayers at their option. The tax shown 179 to be due by the tables shall be computed on the bases of the standard deduction and the 180 tax rates specified in paragraph (1) of this subsection. Insofar as practicable, the tables 181 shall produce a tax approximately equivalent to the tax imposed by paragraph (1) of this 182 subsection. 183 (c) The amount deducted and withheld by an employer from the wages of an employee 184 pursuant to Article 5 of this chapter, relating to current income tax payments, shall be 185 allowed the employee as a credit against the tax imposed by this Code section. Amounts 186 paid by an individual as estimated tax under Article 5 of this chapter shall constitute 187 payments on account of the tax imposed by this Code section. The amount withheld or 188 paid during any calendar year shall be allowed as a credit or payment for the taxable year 189 beginning in the calendar year in which the amount is withheld or paid. 190 (d) The tax imposed by this Code section applies to the Georgia taxable net income of 191 estates and trusts, which shall be computed in the same manner as in the case of a single 192 individual. The tax shall be computed on the Georgia taxable net income and shall be paid 193 by the fiduciary." 194 SECTION 2-3. 195 Said title is further amended by revising subsection (b) of Code Section 48-7-26, relating to 196 personal exemptions from income tax, as in effect on January 1, 2024, as follows: 197

23 SB 56/AP S. B. 56 - 9 - "(b) Each taxpayer shall be allowed as a deduction in computing his or her Georgia taxable 198 income a personal exemption in the amount of $3,000.00 for each dependent of such 199 taxpayer an amount as follows: 200 (1) For each married couple filing a joint return: 201 (A) For taxable years beginning on or after January 1, 2024, $18,500.00; 202 (B) For taxable years beginning on or after January 1, 2026, $20,000.00; 203 (C) For taxable years beginning on or after January 1, 2028, $22,000.00; or 204 (D) For taxable years beginning on or after January 1, 2030, $24,000.00; 205 (2) For each married taxpayer filing a separate return, one-half of the amount of the 206 personal exemption allowed under paragraph (1) of this subsection for the given year; 207 (3) For each single taxpayer or head of household, $12,000.00; and 208 (4) For each dependent of a taxpayer, $3,000.00." 209 SECTION 2-4. 210 Said title is further amended in Code Section 48-7-27, relating to computation of state 211 taxable net income, as in effect on January 1, 2024, by revising paragraph (1) of subsection 212 (a) as follows: 213 "(1) At the taxpayer's election, either: 214 (A) The sum of all itemized nonbusiness deductions used in computing such taxpayer's 215 federal taxable income; or 216 (B) A standard deduction in an amount as follows: 217 (i) In the case of a married couple filing a joint return, $24,000.00; or 218 (ii) In the case of a single taxpayer, head of household, or married taxpayer filing a 219 separate return, $12,000.00;" 220 SECTION 2-5. 221 Said title is further amended by adding a new Code section to read as follows: 222

23 SB 56/AP S. B. 56 - 10 - "48-7-27.1. 223 (a) As used in this Code section, the term 'eligible itemizer' means any resident taxpayer 224 who files an individual income tax return for a taxable year and makes the election under 225 subparagraph (a)(1)(A) of Code Section 48-7-27 to deduct the itemized nonbusiness 226 deductions used in computing such taxpayer's federal taxable income. 227 (b) For taxable years beginning on or after January 1, 2024, each eligible itemizer shall be 228 entitled to a credit in the amount of $300.00 per taxpayer against the tax imposed by Code 229 Section 48-7-20. 230 (c) The tax credit claimed allowed by this Code section shall be deducted from such 231 taxpayer's individual income tax liability, if any, for the tax year in which it is properly 232 claimed; provided, however, that in no event shall: 233 (1) The total amount of the tax credit under this Code section for a taxable year exceed 234 such taxpayer's income tax liability; or 235 (2) Such credit amount be allowed to be carried forward to the taxpayer's succeeding 236 years' tax liability or applied against prior years' tax liability." 237 SECTION 2-6. 238 Said title is further amended by revising subsection (h) of Code Section 48-7-29.22, relating 239 to tax credits for certain medical preceptor rotations, as follows: 240 "(h) This Code section shall stand repealed by operation of law at the last moment of 241 December 31, 2023 2026." 242 SECTION 2-7. 243 Said title is further amended by revising paragraph (3) of subsection (a) of Code Section 244 48-7-40.24, relating to tax credits for jobs associated with large-scale projects, as follows: 245 "(3) 'Force majeure' means any: 246 (A) Explosions, implosions, fires, conflagrations, accidents, or contamination; 247

23 SB 56/AP S. B. 56 - 11 - (B) Unusual and unforeseeable weather conditions such as floods, torrential rain, hail, 248 tornadoes, hurricanes, lightning, or other natural calamities or acts of God; 249 (C) Acts of war (whether or not declared), carnage, blockade, or embargo; 250 (D) Acts of public enemy, acts or threats of terrorism or threats from terrorists, riot, 251 public disorder, or violent demonstrations; 252 (E) Strikes or other labor disturbances; or 253 (F) Expropriation, requisition, confiscation, impoundment, seizure, nationalization, or 254 compulsory acquisition of the site or sites of a qualified project or any part thereof; or 255 (G) Pandemic which is an outbreak of a disease that occurs over a wide geographic 256 area, affects a significant proportion of the population, causes a substantial and 257 unforeseeable threat to the public health, and materially impacts the ability to conduct 258 business, provided that this subparagraph shall only apply with respect to a qualified 259 project first certified pursuant to paragraph (2) of subsection (b) of this Code section 260 on or after July 1, 2023; 261 but such term shall not include any event or circumstance that could have been prevented, 262 overcome, or remedied in whole or in part by the taxpayer through the exercise of 263 reasonable diligence and due care, nor shall such term include the unavailability of 264 funds." 265 PART III 266 SECTION 3-1. 267 Said title is further amended in Code Section 48-8-2, relating to definitions, by adding a new 268 subparagraph to paragraph (31) and by adding new paragraphs to read as follows: 269 "(11.2) 'Digital audio-visual works' means any series of related images, together with 270 accompanying sounds, if any and which, when shown in succession, impart an 271 impression of motion. 272

23 SB 56/AP S. B. 56 - 12 - (11.3) 'Digital audio works' means digitized works that result from the fixation of a series 273 of musical, spoken, or other sounds. Such term shall include digitized sound files that are 274 downloaded onto a device and that may be used to alert an end user with respect to a 275 communication. 276 (11.4) 'Digital code' means a key, activation, or enabling code that conveys a right to 277 obtain one or more specified digital goods or other digital goods. Such term shall not 278 include a code that represents a stored monetary value that is deducted from a total as it 279 is used by the purchaser or a redeemable card, gift card, or gift certificate that entitles the 280 holder to select specified digital goods or other digital goods of an indicated cash value." 281 "(15.1) 'End user' means any person other than a person that receives by contract a 282 product transferred electronically for further commercial broadcast, rebroadcast, 283 transmission, retransmission, licensing, relicensing, distribution, redistribution, or 284 exhibition of the product, in whole or in part, to another person or persons." 285 "(16.05) 'Internet access service' shall have the same meaning as such term is defined in 286 47 U.S.C. Section 151, note." 287 "(20.05) 'Other digital goods' means the following items transferred electronically to an 288 end user: 289 (A) Artwork; 290 (B) Photographs; 291 (C) Periodicals; 292 (D) Newspapers; 293 (E) Magazines; 294 (F) Video or audio greeting cards; or 295 (G) Video games or electronic entertainment." 296 "(E.1)(i) Sales of digital codes. 297 (ii) Sales of specified digital products or other digital goods;" 298

23 SB 56/AP S. B. 56 - 13 - "(34.1)(A) 'Specified digital products' means the following items transferred 299 electronically to an end user: 300 (i) Digital audio-visual works; 301 (ii) Digital audio works; or 302 (iii) Digital books." 303 "(39.2) 'Transferred electronically' means obtained, accessed, or available to be accessed 304 by means other than tangible storage media." 305 SECTION 3-2. 306 Said title is further amended in Code Section 48-8-3, relating to exemptions from sales and 307 use tax, by revising paragraphs (90) and (91) as follows: 308 "(90) Internet access service Reserved; 309 (91) The sale of prewritten computer software which has been transferred electronically 310 to the purchaser or delivered to the purchaser electronically or by means of load and 311 leave; provided, however, that the exemption granted by this paragraph shall not include 312 sales of specified digital products, other digital goods, or digital codes;" 313 SECTION 3-3. 314 Said title is further amended in Code Section 48-8-30, relating to imposition of tax, rates, and 315 collection, by revising subsection (a) as follows: 316 "(a)(1) There is levied and imposed a tax on the retail purchase, retail sale, rental, 317 storage, use, or consumption of tangible personal property and on the services described 318 in this article. 319 (2)(A) There is levied and imposed a tax on the retail purchase or retail sale of 320 specified digital products, other digital goods, or digital codes sold to an end user in this 321 state, provided that such end user receives or will receive the right of permanent use of 322

23 SB 56/AP S. B. 56 - 14 - such products, goods, or codes and the transaction is not conditioned upon continued 323 payment by the end user. 324 (B) The tax levied under this paragraph shall apply regardless of whether possession 325 of the specified digital goods, other digital goods, or digital codes is maintained by the 326 seller or a third party. 327 (C) Except as provided otherwise in this article, the tax imposed by this article on 328 specified digital products, other digital goods, and digital codes shall be levied, 329 collected, remitted, and administered in the same manner and at the same rate as is 330 provided in this article for the retail purchase, retail sale, rental, storage, use, or 331 consumption of tangible personal property." 332 SECTION 3-4. 333 Said title is further amended in Code Section 48-8-38, relating to burden of proof on seller 334 as to taxability, certificate that property purchased for resale, requirements of purchaser 335 having certificate, contents, and proof of claimed exemption, by adding a new subsection to 336 read as follows: 337 "(f) A sale of any specified digital product, other digital good, or digital code shall be 338 considered a sale for resale if the specified digital product, other digital good, or digital 339 code is subsequently sold, licensed, leased, broadcast, transmitted, or distributed, in whole 340 or in part, as an integral, inseparable component part of a service or another such product, 341 good, or code by the purchaser of the specified digital product, other digital good, or digital 342 code to an ultimate consumer. The purchaser of the specified digital product, other digital 343 good, or digital code for resale shall maintain records that substantiate such resale in a 344 manner consistent with this subsection, as determined by the commissioner." 345

23 SB 56/AP S. B. 56 - 15 - PART IV 346 SECTION 4-1. 347 (a) This Act shall become effective upon its approval by the Governor or upon its becoming 348 law without such approval; provided, however, that: 349 (1) Section 2-1 of this Act shall be applicable to all taxable years beginning on or after 350 January 1, 2022; 351 (2) Sections 2-2 through 2-6 of this Act shall be effective on January 1, 2024, and shall be 352 applicable to all taxable years beginning on or after January 1, 2024; 353 (3) Section 2-7 of this Act shall become effective on July 1, 2023; and 354 (4) Part III of this Act shall become effective on January 1, 2024, and shall be applicable 355 to transactions occurring on or after January 1, 2024. 356 (b) Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not 357 be affected by the passage of this Act and shall continue to be governed by the provisions of 358 Title 48 of the Official Code of Georgia Annotated as they existed for such prior taxable 359 years. 360 SECTION 4-2. 361 All laws and parts of laws in conflict with this Act are repealed. 362