PROGRAM FOR TAX EXEMPTIONS FOR NEW AND EMERGING TECHNOLOGY BUSINESSES

Atlanta City Code pt. II, ch. 30, art. III, div. 4

in effect

Atlanta City Code § 30-300 Purpose of the program.

Sec. 30-300. - Purpose of the program. (a) The purpose of the City of Atlanta's Program for Tax Exemptions for New and Emerging Technology Businesses (the "program") is to encourage new businesses that operate in certain fields related to high technology, life sciences, and intellectual property by providing exemption from administrative fees and a portion of taxes imposed by the City of Atlanta Occupation Tax Ordinance. (b) The program is designed to encourage the creation of new businesses in emerging markets and technologies whether developed at public or private business incubator facilities or by the efforts of individual entrepreneurs. The development of technology into a commercial product by going through the process of business planning, product development, securing funding, and other steps necessary to get the technology to the marketplace can be made easier by tax exemption and reduced cost of regulatory compliance. The city wishes to reduce the start-up costs to new businesses by providing specific regulatory and taxation relief until such business ventures become ready to compete in the marketplace. (c) Three public benefits characterize the purpose of the program: (1) Tax exemptions and reduced cost of regulatory compliance creates a lower cost environment for new and emerging technology businesses and encourages the selected types of businesses to locate their operations and develop their business within the city; (2) Tax exemptions and reduced cost of regulatory compliance tends to have a positive impact on the city's economic health by encouraging and maximizing the success of new and emerging businesses in targeted fields that tend to provide higher paying jobs and encourage growth in related sectors; (3) The program encourages registration of new and emerging businesses in targeted fields by allowing such businesses to be able to openly solicit capital investment and business advice before actively earning revenues or receiving gross receipts. (d) This program is enacted pursuant to O.C.G.A. § 48-13-10(f) and any part of this division which is not authorized by said section or the general law is a specific limitation of this division without regard to whether it is set forth herein and such general law may be relied upon for enforcement of this division or this article. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-301 Definitions.

Sec. 30-301. - Definitions. Business entity means any sole proprietorship; corporation and foreign corporation; nonprofit corporation and foreign nonprofit corporation; profit and nonprofit unincorporated association; business trust, estate, general partnership, limited partnership, trust, two or more persons having a joint or common economic interest; limited liability company and foreign limited liability company; limited liability partnership and foreign limited liability partnership. Initial registration year means the first tax year that the exemption provided by this division is made available or the tax year in which a qualifying business is organized. Qualifying business means a business entity (i) not previously doing business in the jurisdiction of the city in any other form; (ii) that applies for a business license in a type of business classification that has been designated as consistent with the intent of this division through reference to a classification in the North American Industry Classification System ("NAICS") or an equivalent Standard Industrial Classification that can reasonably be cross-referenced to the NAICS that is from time to time approved for an exemption by the governing authority; and (iii) the application for business license or renewal is made in an operating year that qualifies for an exemption. Revenue means the same as gross receipts which are defined elsewhere in this article. Start-up means a business entity whose business form is in the initial registration year. Start-up exemption means an exemption provided to a start-up business whose operations are conducted primarily at a certified business incubator location and whose operating characteristics meet the requirements of this division. Tax year means any year in which taxes imposed under Chapter 30 should have been paid without regard to whether the taxpayer was registered with the office of revenue. Year of operations means a calendar year in which a qualifying business conducts business in the jurisdiction of the City of Atlanta including those years when such business was not registered with the office of revenue. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-302 NAICS classifications approved for exemptions.

Sec. 30-302. - NAICS classifications approved for exemptions. The governing authority has adopted by ordinance and may from time to time add or delete those NAICS classifications considered to support the intent of this division. The director shall maintain a record of the NAICS classifications which are approved to provide start-up exemptions for qualifying businesses. The removal of an NACIS classification from the list of businesses for which an exemption can be granted shall not cause a business which received an exemption to lose such exemption until after its third year of operations. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-303 Registration and renewal required.

Sec. 30-303. - Registration and renewal required. (a) Pursuant to section 30-65 of this article, registration and renewal of the business license is required even for a business which is included in the NAICS classifications which are approved to provide start-up exemptions for qualifying businesses and it shall remain a violation of this article for any business, even when entitled to an exemption under this division, to fail to comply with the requirements of this article. (1) Determination of whether a business is a qualifying business is solely reserved to the chief financial officer or his designee and it shall be a violation of this article for a business which would be a qualified business if properly registered to operate without a business license. (2) It shall not be a defense to a citation for failure to register for a business which would be a qualified business if properly registered to operate without a business license and such business may still be cited for violation of section 30-65 even if it is granted a start-up exemption. The chief financial officer may, but is not required to, dismiss a citation upon a determination that no tax would be due after the initial registration provided that the business is in its first year of operations. (b) Notwithstanding the determination that business is determined to be a qualifying business upon its initial registration, the timely renewal of the registration in compliance with section 30-69 is required. (1) Renewal is required in order to determine if gross receipts of the qualifying business exceed the level to which the exemption applied such that some tax is due; (2) Renewal is required to determine if the qualifying business has exhausted its right to exemptions which is limited in all case to three tax years (c) A business which is organized solely to make investments which might be exempt from some or all taxes imposed by this article by virtue of the exemptions granted by this division shall nevertheless be required to register and renew its business license. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-304 Administrative fees exempted.

Sec. 30-304. - Administrative fees exempted. No qualifying business shall be charged an administrative fee in connection with its registration or renewal in those operating year when exemptions available. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-305 Amount of tax exempted.

Sec. 30-305. - Amount of tax exempted. No qualifying business shall be taxed on the first $1,000,000.00 of gross receipts for the first three years of operations, specifically including the year of registration. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-306 Per employee tax exempted.

Sec. 30-306. - Per employee tax exempted. No qualifying business shall be taxed on the number of employees for the first three years of operations, specifically including the year of registration, except where the business has more than $1,000,000.00 of gross receipts in which case, the per employee exemption shall only apply to five employees. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-307 Operating years when exemptions available.

Sec. 30-307. - Operating years when exemptions available. (a) A qualifying business that is newly formed is eligible for an exemption in the year of its formation and for the following two years of operations. (b) A qualifying business that would have been eligible for the exemption had such exemption had been available in the first three years of its operations is eligible for an exemption in first and/or second year after this division is effective; provided however that no exemption is available in the fourth year of operation of any qualifying business. (c) A qualifying business that was in operation but was not registered with the office of revenue shall have the years of operation prior to registration counted as a part of the operating years used to calculate if exemptions could be available. (d) Under no circumstance shall any business entity be entitled to an exemption in more than three tax years. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-308 Change of business form or name.

Sec. 30-308. - Change of business form or name. A change of business form or name by a business entity in business for three previous years shall not be sufficient for a business entity to be classified as a qualifying business even if such business operates in a field that has been designated as consistent with the aim of this division through reference to a classification in the North American Industry Classification System ("NAICS"). The chief financial officer is authorized to make a determination as to whether a business entity which has applied for an exemption is in fact operating as a start-up business or has operated under a different business form or business name. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-309 Transfer of revenues to or from other entities.

Sec. 30-309. - Transfer of revenues to or from other entities. It is the intent of this division that an exemption from taxes be provided only for those qualifying businesses on gross receipts of up to $1,000,000.00 received in connection with their operations in an operating year when such exemptions would be available. The transfer of gross receipts or revenue to other business entities to avoid the payment of tax shall result in the Transfers of revenues earned by other business entities to a qualifying business in an operating year when exemptions are available shall not eligible for an exemption. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-310 Gains from investments in qualified businesses.

Sec. 30-310. - Gains from investments in qualified businesses. (a) In recognition of the fact that investment is a crucial component of encouraging the creation of new businesses in emerging markets and technologies, it is the intent of this division that an exemption from taxes also be provided for gains from the sale of stocks, bonds, partnership shares or instruments of indebtedness that are given in exchange for funding the creation of a qualifying business. (b) A business entity receiving stocks, bonds, partnership shares, or instruments of indebtedness that are given in exchange for a cash investment in a qualifying businesses, shall be exempt from taxes on the first $1,000,000.00 received above the amount of the initial cash investment where such gain is in connection with the sale of such stocks, bonds, partnership shares, or instruments of indebtedness, provided that cash is received as payment for the sale thereof within three years of the date of the cash investment or the date of registration of the qualifying business, whichever is earlier. (1) For the purpose of this division, gain from an investment in a qualifying business that is no longer included in the list of NAICS classifications approved to provide start-up exemptions when the stocks, bonds, partnership shares, or instruments of indebtedness received in exchange for the initial cash investment are sold, shall still receive the exemption provided by this section so long as the cash that is received as payment for the sale of such investment is received within the time provided in this section. (c) No exemption is allowed for gains resulting from investment in any type of business entity other than in a qualified business in its initial registration year and that was registered with the office of revenue within 30 days of the date that such investment was made or the date of initial registration whichever is later. (d) In order to encourage reinvestment in new qualifying businesses, gain resulting from the exchange of stocks, bonds, partnership shares, or instruments of indebtedness given in exchange for a cash investment in a qualifying businesses for stocks, bonds, partnership shares, or instruments of indebtedness, the amount of gain recognized shall not be exempt from taxes imposed under this article. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-311 Refunds for fees or taxes paid for prior operations.

Sec. 30-311. - Refunds for fees or taxes paid for prior operations. Under no circumstance shall any part of this division or this article be construed to authorize refunds for a business entity which has paid any tax or fee prior to the enactment of this division. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-312 Penalties for filing false applications or renewals.

Sec. 30-312. - Penalties for filing false applications or renewals. (a) It shall be a violation of the occupation tax ordinance to file false documents in order to be determined to be a qualifying business or to receive any type of exemption. (1) The chief financial officer shall have all powers delegated under section 30-57 to make a determination that this section has been violated and to impose any penalty provided by this division. (2) The penalty for violation of this section shall be the immediate revocation of the exemption in addition to any taxes, penalties and interest which are determined to be due. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-313 Requesting additional data authorized.

Sec. 30-313. - Requesting additional data authorized. The chief financial officer is authorized to issue a business license to a start-up business that grants permission for operation in the City of Atlanta in the same manner an any other business license; provided however that gathering of such additional information as deemed necessary by the office of revenue for efficient management of the exemptions may be made a part of the application process. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-314 Penalties for filing false applications or renewals for start-up business exemption or filing false returns.

Sec. 30-314. - Penalties for filing false applications or renewals for start-up business exemption or filing false returns. (a) It shall be a violation of this division and the occupation tax ordinance to file false documents in connection with a start-up business exemption. (1) Any business which has been granted an exemption as a start-up business and which claims such exemption through filing a false application or renewal shall be in violation of this division and the occupation tax ordinance. (2) The chief financial officer shall have all powers delegated under section 30-57 to make a determination that this section has been violated. (3) The penalty for violation of this division shall be the immediate revocation of the exemption. The revocation of the start-up business exemption shall cause any tax and administrative fee due in the year of revocation to be fully payable as if the business was not qualified for an exemption. (4) The penalty for filing a false application for exemption and/or the underpayment of taxes shall be the same as that set forth in Division 1 of this article. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-315 Enforcement provisions.

Sec. 30-315. - Enforcement provisions. Any provision of this division may be administered or enforced through the use of any and all other regulations set forth elsewhere in this article or in the general law. It is the specifically intended that any method of enforcement which could be used to determine if an occupation tax was correctly paid can be used to determine whether an exemption will be or was correctly granted or whether the amount of the exemption taken by a taxpayer was proper in amount. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-316 Appeals.

Sec. 30-316. - Appeals. An appeal of a decision of the chief financial officer or his designee as to whether an exemption will be or was correctly granted or whether the amount of the exemption taken by a tax payer was proper in amount is an administrative decision which shall be appealed in the same manner as decisions and in the method that is set forth elsewhere in this article. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-317 Compliance with other laws.

Sec. 30-317. - Compliance with other laws. The approval of a start-up business exemption by the office of revenue shall not excuse any business from any type of filing or certification required by state law or this Code. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Atlanta City Code § 30-318 Severability.

Sec. 30-318. - Severability. In the event that any part of this division is declared invalid for any reason such that the exemption provided in division cannot be granted, this division is intended to be fully severable from the levy of the occupation tax and all parts of this article which support collection. (Ord. No. 2015-13(15-O-1078), § 1(Exh. A), 3-11-15)

Source: City of Atlanta, Code of Ordinances (Charter and Related Laws, General Ordinances, Land Development Code) (Municode Library, library.municode.com)URL: https://library.municode.com/ga/atlanta/codes/code_of_ordinances?nodeId=PTIICOORENOR_CH30BU_ARTIIIOCTA_DIV4PRTAEXNEEMTEBUFetched: 10/28/2026