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 1 To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and 2 taxation, so as to require the state revenue commissioner to contract with the Board of 3 Trustees of the Employees' Retirement System of Georgia to offer certain county tax 4 commissioners who are not eligible for any retirement system or county 401(k) or 457(b) 5 plan the option to participate in a state administered deferred compensation plan; to provide 6 for a limited state match of contributions; to provide for terms and conditions; to revise the 7 terms "Internal Revenue Code" and "Internal Revenue Code of 1986" and thereby 8 incorporate certain provisions of the federal law into Georgia law; to revise the rates of 9 taxation on income on individuals, estates, and trusts; to revise certain annual determinations; 10 to revise certain exemptions and deductions; to provide for an income tax credit for certain 11 taxpayers; to revise the definition of "force majeure" to include a pandemic, as relative to tax 12 credits for jobs associated with large-scale projects; to limit the applicability of such term; 13 to extend the sunset date for a tax credit for certain medical preceptor rotations; to provide 14 for the taxation of the sale or purchase of specified digital products, other digital goods, and 15 digital codes; to provide for procedures, conditions, and limitations; to revise and provide for 16 definitions and exemptions; to provide for related matters; to provide for effective dates and 17 applicability; to repeal conflicting laws; and for other purposes. 23 SB 56/AP S. B. 56 - 2 - 18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 19 PART I 20 SECTION 1-1. 21 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is 22 amended in Part 3 of Article 3 of Chapter 5, relating to compensation for county tax officials 23 and administration, by adding a new Code section to read as follows: 24 "48-5-184. 25 (a) As used in this Code section, the term 'eligible county tax commissioner' means any 26 county tax commissioner or tax collector who is compensated pursuant to Code Section 27 48-5-183 and, as of March 1, 2023, was not eligible to participate in any: 28 (1) Retirement system, as such term is defined in Code Section 47-20-3; or 29 (2) Deferred compensation plan offered by the county that utilizes Section 401(k) or 30 457(b) of the United States Internal Revenue Code of 1986. 31 (b) The state revenue commissioner shall contract with the Board of Trustees of the 32 Employees' Retirement System of Georgia for the administration of a deferred 33 compensation plan offered as a state benefit for eligible county tax commissioners as 34 provided for in this Code section. 35 (c)(1) Subject to the contract required under subsection (b) of this Code section, the 36 Board of Trustees of the Employees' Retirement System of Georgia shall investigate and 37 approve a deferred compensation plan that offers to eligible county tax commissioners 38 income tax benefits in connection with plans authorized by the United States Internal 39 Revenue Code of 1986, so that compensation deferred under such plan shall not be 40 included for purposes of computation of any federal income tax withheld on behalf of any 41 such tax commissioner or payable by such tax commissioner before any deferred payment 42 date. All contributions to such deferred compensation plans shall also be exempt from 23 SB 56/AP S. B. 56 - 3 - 43 state withholding tax so long as such contributions are not includable in gross income for 44 federal income tax purposes. 45 (2) Notwithstanding any conflicting provisions of paragraph (1) of this subsection, for 46 any deferred compensation plan established pursuant to said paragraph, the Board of 47 Trustees of the Employees' Retirement System of Georgia shall be authorized to include 48 as an option for eligible county tax commissioners a qualified Roth contribution program 49 in accordance with Section 402A of the United States Internal Revenue Code of 1986. 50 (d)(1) On and after July 1, 2023, for any eligible county tax commissioner who 51 contributes a percentage from his or her minimum annual salary paid by the county 52 pursuant to paragraphs (1) and (2) of subsection (b) of Code Section 48-5-183 into the 53 deferred compensation plan established under this Code section, the state shall contribute 54 an equal amount into such eligible county tax commissioner's plan account, up to a 55 maximum of 5 percent; provided, however, that all state contributions to plan accounts 56 shall be subject to limitations imposed by federal law. 57 (2) Each eligible county tax commissioner may make such additional contributions as 58 he or she desires, subject to limitations imposed by federal law. 59 (e) The Board of Trustees of the Employees' Retirement System of Georgia and the state 60 revenue commissioner shall be entitled to impose requirements for the withholding and 61 remittance of contributions by county governing authorities in order to effectuate this Code 62 section and comply with state and federal law. 63 (f) Any eligible county tax commissioner who becomes eligible to participate in a 64 retirement system or county plan described in paragraph (1) or (2) of subsection (a) of this 65 Code section on or after the effective date of this Code section shall no longer receive the 66 state contributions paid pursuant to subsection (d) of this Code section." 23 SB 56/AP S. B. 56 - 4 - 67 PART II 68 SECTION 2-1. 69 Said title is further amended by revising paragraph (14) of Code Section 48-1-2, relating to 70 definitions, as follows: 71 "(14) 'Internal Revenue Code' or 'Internal Revenue Code of 1986' means for taxable years 72 beginning on or after January 1, 2021 2022, the provisions of the United States Internal 73 Revenue Code of 1986, as amended, provided for in federal law enacted on or before 74 January 1, 2022 2023, except that Section 108(i), Section 163(e)(5)(F), Section 75 168(b)(3)(I), Section 168(e)(3)(B)(vii), Section 168(e)(3)(E)(ix), Section 168(e)(8), 76 Section 168(k), Section 168(m), Section 168(n), Section 179(d)(1)(B)(ii), Section 179(f), 77 Section 199, Section 381(c)(20), Section 382(d)(3), Section 810(b)(4), Section 1400L, 78 Section 1400N(d)(1), Section 1400N(f), Section 1400N(j), Section 1400N(k), and Section 79 1400N(o) of the Internal Revenue Code of 1986, as amended, shall be treated as if they 80 were not in effect, and except that Section 168(e)(7), Section 172(b)(1)(F), and Section 81 172(i)(1) of the Internal Revenue Code of 1986, as amended, shall be treated as they were 82 in effect before the 2008 enactment of federal Public Law 110-343, and except that 83 Section 163(i)(1) of the Internal Revenue Code of 1986, as amended, shall be treated as 84 it was in effect before the 2009 enactment of federal Public Law 111-5, and except that 85 Section 13(e)(4) of 2009 federal Public Law 111-92 shall be treated as if it was not in 86 effect, and except that Section 118, Section 163(j), and Section 382(k)(1), and Section 87 174 of the Internal Revenue Code of 1986, as amended, shall be treated as they were in 88 effect before the 2017 enactment of federal Public Law 115-97; provided, however, that 89 all provisions in federal Public Law 117-58 (Infrastructure Investment and Jobs Act) that 90 change or affect in any manner Section 118 shall be treated as if they were in effect, and 91 except that all provisions in federal Public Law 116-136 (CARES Act) that change or 92 affect in any manner Section 172 and Section 461(l) shall be treated as if they were not 23 SB 56/AP S. B. 56 - 5 - 93 in effect, and except that all provisions in federal Public Law 117-2 (American Rescue 94 Plan Act of 2021) that change or affect in any manner Section 461(l) shall be treated as 95 if they were not in effect, and except that the limitations provided in Section 179(b)(1) 96 shall be $250,000.00 for tax years beginning in 2010, shall be $250,000.00 for tax years 97 beginning in 2011, shall be $250,000.00 for tax years b