Georgia Governor Signs Taxpayer Fairness Act Limiting Administrative Deference in Georgia Tax Controversies

On April 29, 2021, Georgia Governor Brian Kemp signed SB 185, limiting the application of administrative deference in Georgia tax controversies. This law seeks to level the playing field in state tax litigation matters by reducing the level of deference accorded to the Department of Revenue’s interpretations of ambiguous laws. The law provides that “all questions of law decided by a court or the Georgia Tax Tribunal, including interpretations of constitutional, statutory, and regulatory provisions shall be made without any deference to any determination or interpretation, whether written or unwritten, that may have been made on the matter by the department, except such requirement shall have no effect on the judicial standard of deference accorded to rules promulgated pursuant to Chapter 13 of Title 50, the ‘Georgia Administrative Procedure Act.’” Accordingly, the legislation eliminates all subregulatory deference that may have previously been accorded to the Georgia Department of Revenue in litigation matters and applies to new cases commencing at the Georgia Tax Tribunal or a state Superior Court after April 29, 2021. For more information on SB 185, see our prior coverage, here.