TAX NEWS - May 2009

Georgia Franchise Tax

Property Tax Guide For The Georgia Taxpayer

What is the Franchise Tax?

A franchise tax is a tax on the right or privilege of doing business in a state. The following rights or privileges of doing business in this State are specified in O.C.G.A. 48-5-420. All franchises, including those not otherwise specifically mentioned, are to be reported for taxation by March 1 with the county or municipality. 


Rights and Privileges Granted by this State to a Franchise

- Exercise of the power of eminent domain;
- Use of any public highway or street;
- Use of land above or below any highway or street;
- Construction and operation of railroads;
- Common carriage of passengers or freight;
- Construction and operation of any plant for the distribution and sale of gas, water, electric lights, electric power, steam heat, refrigerated air, or other substances by means of wires, pipes, or conduits laid under or above any street, alley, or highway;
- Construction and operation of any telephone plant or telegraph plant;
- All rights to conduct wharfage, dockage, or cranage business;
- All rights to conduct any express business or for the operation of sleeping, palace, dining, or chair cars;
- All rights and privileges to construct, maintain, or operate canals, toll roads, or toll bridges; and
- The right to carry on the business of maintaining equipment companies, navigation companies, freight depots, passenger depots, and every other similar special function dependent upon the grant of public powers or privileges not allowed by law to individuals or involving the performance of any public service.