Compilation of Rules and Regulations of the State of Georgia › Department 560 - RULES OF DEPARTMENT OF REVENUE › Chapter 560-7 - INCOME TAX DIVISION › Subject 560-7-8 - RETURNS AND COLLECTIONS › Rule 560-7-8-.46 - Definition of Business Enterprise

Current through Rules and Regulations filed through June 27, 2024
(1)
Purpose.
This regulation
				identifies the North American Industry Classification System (NAICS) Codes that
				are assigned to the industries that qualify as a business enterprise under
				O.C.G.A. §§
									48-7-40.12 and 
				 48-7-40.22.
(2)
Business Enterprise Defined.
The term "business enterprise" means any corporation, partnership, limited
				liability company, sole proprietorship, or other business entity or the
				headquarters of such business entity that is engaged in manufacturing,
				warehousing and distribution, processing, telecommunications, broadcasting,
				tourism, or research and development industries. The term "business enterprise"
				excludes all child care businesses and retail businesses, except as referenced
				in O.C.G.A. §
									48-7-40.22.
				The Department of Revenue will use the North American Industry Classification
				System (NAICS) published by the United States Office of Management and Budget,
				2017 edition, to determine whether an entity is engaged in any of the
				qualifying industries listed in this paragraph (2). Taxpayers self-select their
				NAICS Codes. However, upon review the Department may determine that the
				self-selected NAICS code does not match the taxpayer's primary activity. The
				NAICS website is located at the following address:
http://www.census.gov/epcd/www/naics.html
(a) Manufacturing means those establishments
				classified by the NAICS Codes that belong to Sectors 31-33.
(b) Warehousing and distribution means a
				warehouse, facility, structure, or enclosed area which is used primarily for
				the storage, shipment, preparation for shipment, or any combination of such
				activities, of goods, wares, merchandise, raw materials, or other tangible
				personal property, and those establishments classified by the NAICS Codes that
				belong to Subsectors 423, 424 and 493. Warehousing and distribution shall also
				include the following:
1. Establishments that
				are both primarily engaged in scheduled freight air transportation, and
				included in NAICS U.S. Industry 481112;
2. Establishments that are both primarily
				engaged in nonscheduled chartered freight air transportation, and included in
				NAICS U.S. Industry 481212;
3.
				Establishments that are both primarily engaged in line-haul railroads, and
				included in NAICS U.S. Industry 482111;
4. Establishments that are both primarily
				engaged in short line railroads, and included in NAICS U.S. Industry 482112;
5. Establishments that are both
				primarily engaged in deep sea freight transportation, and included in NAICS
				U.S. Industry 483111;
6.
				Establishments that are both primarily engaged in inland water freight
				transportation, and included in NAICS U.S. Industry 483211;
7. Establishments that are both primarily
				engaged in general freight trucking, local, and included in NAICS U.S. Industry
				484110;
8. Establishments that are
				both primarily engaged in general freight trucking, long-distance, truckload,
				and included in NAICS U.S. Industry 484121;
9. Establishments that are both primarily
				engaged in general freight trucking, long-distance, less than truckload, and
				included in NAICS U.S. Industry 484122;
10. Establishments that are both primarily
				engaged in specialized freight (except used goods) trucking, local, and
				included in NAICS U.S. Industry 484220;
11. Establishments that are both primarily
				engaged in specialized freight (except used goods) trucking, long-distance, and
				included in NAICS U.S. Industry 484230;
12. Establishments that are both primarily
				engaged in mixed mode transit systems and included in NAICS U.S. Industry
				485111;
13. Establishments that
				are both primarily engaged in pipeline transportation of crude oil, and
				included in NAICS U.S. Industry 486110;
14. Establishments that are both primarily
				engaged in pipeline transportation of natural gas, and included in NAICS U.S.
				Industry 486210;
15. Establishments
				that are both primarily engaged in pipeline transportation of refined petroleum
				products, and included in NAICS U.S. Industry 486910;
16. Establishments that are both primarily
				engaged in all other pipeline transportation, and included in NAICS U.S.
				Industry 486990;
17. Establishments
				that are both primarily engaged in marine cargo handling, and included in NAICS
				U.S. Industry 488320;
18.
				Establishments that are both primarily engaged in freight transportation
				arrangement, and included in NAICS U.S. Industry 488510; and
19. Establishments that are both primarily
				engaged in providing consulting services to clients relating to physical
				distribution of goods and services and included in NAICS U.S. Industry
				541611.
(c) Processing
				includes manufacturing establishments classified in NAICS Sectors 31-33; and
				those establishments primarily engaged in providing data processing services,
				which shall consist of only the following:
1.
				Establishments that are both primarily engaged in providing data processing
				services, and included in NAICS U.S. Industry 518210;
2. Establishments that are both primarily
				engaged in providing third party administration services of insurance and
				pension funds, and included in NAICS U.S. Industry 524292;
3. Establishments that are both primarily
				engaged in providing either:
(i) automated
				clearinghouses, check clearinghouse associations; or
(ii) financial transaction or credit card
				processing services, and included in NAICS U.S. Industry 522320;
4. Establishments that are both
				primarily engaged in furnishing physical or electronic marketplaces for the
				purpose of facilitating the buying and selling of stocks, stock options, bonds
				or commodity contracts and included in NAICS U.S. Industry 523210;
5. Establishments that are both primarily
				engaged in producing and distributing computer software, and included in NAICS
				U.S. Industry 511210;
6.
				Establishments that are both primarily engaged in providing computer systems
				design and related services, and included in NAICS Industry Group
				5415;
7. Establishments that are
				both primarily engaged in providing payroll services, and included in NAICS
				U.S. Industry 541214; and
8.
				Establishments that are both primarily engaged in providing telephone call
				center services, and included in NAICS Industry 56142.
(d) Telecommunications means those
				establishments that are primarily engaged in operating, maintaining and/or
				providing access to facilities for the transmission of voice, data, text, sound
				and video and classified within NAICS U.S. Industries 517311, 517312, 517410,
				517911 and 517919.
(e) Broadcasting
				means those establishments that are primarily engaged in the transmission or
				licensing of audio, video, text, or other programming content to the general
				public, subscribers, or to third parties via radio, television, cable,
				satellite, or the Internet or Internet Protocol, including motion picture and
				sound recording, editing, production, post production, and distribution, and
				which are included in NAICS Subsectors 512, 515, 517 and 519.
(f) Tourism means only the following
				establishments:
1. Establishments that are
				both primarily engaged in providing lodging for the public, and included in
				NAICS Industry Group 7211; however, establishments offering lodging for more
				than 30 consecutive days to the same customer are not deemed a business
				enterprise under this regulation;
2. Establishments that are both primarily
				engaged in providing overnight or short term sites for recreational vehicles,
				trailers, campers or tents, and included in NAICS U.S. Industry 721211;
				however, establishments primarily engaged in the operation of residential
				trailer parks or primarily engaged in providing accommodations for more than 30
				consecutive days to the same customer are not deemed a business enterprise
				under this regulation;
3.
				Establishments that are both primarily engaged in the operation of recreational
				camps, and included in NAICS U.S. Industry 721214; however, establishments
				primarily engaged in the operation of summer camps are not deemed a business
				enterprise under this regulation;
4. Establishments that are both primarily
				engaged in the operation of either:
(i)
				convention centers;
(ii) sports
				stadiums or arenas; or
(iii) sports
				complexes open to the general public on a contractor fee basis, and included in
				NAICS U.S. Industry 711310;
5. Establishments that are both primarily
				engaged in the operation of golf courses open to the general public on a
				contract or fee basis, which are associated with a resort development, and
				included in NAICS U.S. Industry 713910; however, establishments engaged in the
				operation of golf courses associated with housing developments are not deemed a
				business enterprise under this regulation;
6. Establishments that are both primarily
				engaged in the operation of professional or semi-professional sport clubs, and
				included in NAICS U.S. Industry 711211; however, for the purposes of this
				provision professional and semi-professional sport clubs include only those
				clubs that compensate athletes for their services as players and does not
				include amateur sport clubs, amateur sport leagues, or amateur sport
				associations;
7. Establishments
				that are both primarily engaged in the operation of racing facilities,
				including drag-strips, motorcycle race tracks, auto or stock car race tracks or
				speedways, and included in NAICS U.S. Industry 711212;
8. Establishments that are both primarily
				engaged in the operation of amusement centers, amusement parks, theme parks, or
				amusement piers, and included in NAICS U.S. Industry 713110;
9. Establishments that are both primarily
				engaged in the operation of tours within the State of Georgia, and included in
				NAICS U.S. Industry 561520;
10.
				Establishments that are both primarily engaged in the operation of airplanes,
				helicopters, buses, trolleys, vans, scenic railroads, aerial tramways, or boats
				for excursion or sightseeing purposes within the State of Georgia, and included
				in NAICS Subsector 487;
11.
				Establishments that are both primarily engaged in the operation of hunting
				preserves, trapping preserves, or fishing preserves or lakes which are open to
				the general public on a contract or fee basis for finfish, shellfish, or other
				marine fishing, and included in NAICS U.S. Industries 114111, 114112, 114119,
				or 114210;
12. Establishments that
				are both primarily engaged in the operation of museums, planetariums, art
				galleries, botanical gardens, aquariums, or zoological gardens, and included in
				NAICS Subsector 712; however, establishments that derive 50 percent or more of
				their gross revenue from the sale of goods or merchandise are not deemed a
				business enterprise under this regulation.
(g) Research and development means only the
				following establishments: establishments primarily engaged in conducting
				research and experimental development in biotechnology and the physical,
				engineering and life sciences and classified in NAICS U.S. Industry 54171; and
				establishments primarily engaged in conducting research and analysis in
				cognitive development, sociology, psychology, language, behavior, economic, and
				other social science and humanities research and classified in NAICS US
				Industry 541720.