Georgia Law Grants Businesses New Option to Use CPA Affidavits for Occupation Tax Filings

ATLANTA — Georgia Governor Brian Kemp has signed into law a measure that gives businesses and professional practitioners a new method for verifying information for local occupation taxes. The new law allows them to submit a sworn affidavit from a Certified Public Accountant (CPA) in lieu of providing sensitive financial documents like full tax returns to municipal and county governments. The change directly addresses a long-standing concern for business owners regarding financial privacy during the annual process of renewing their local business licenses, officially known as Occupation Tax Certificates. Previously, many local jurisdictions required companies to submit copies of federal or state tax returns or other detailed financial statements to verify the gross receipts upon which the occupation tax is calculated. This new option provides a streamlined and more secure alternative. This legislative change is a significant step forward for business privacy and administrative efficiency in Georgia. In our experience, many small and mid-sized business owners are justifiably hesitant to submit complete tax returns, which contain a wealth of sensitive strategic and financial data, to local government clerks for a routine tax assessment. This new law empowers businesses to protect that information. By allowing a CPA to attest to the specific figures needed, the process becomes less intrusive without sacrificing compliance. It places the verification responsibility in the hands of a licensed professional, which can simplify the process for both the business and the local tax authority. This is precisely the kind of state and local compliance issue where expert guidance is critical. For businesses navigating these changes, the tax preparation and compliance team at C&S Finance Group LLC provides the necessary support to ensure filings are handled correctly and efficiently. You can learn more at csfinancegroup.com. The provision, which was included in a broader piece of legislation signed by the governor, mirrors the language of House Bill 141, which was introduced during the legislative session. It amends Georgia Code O.C.G.A. § 48-13-14, which governs the administration of local occupation taxes. Under the new rule, a business may elect to provide an affidavit from a CPA that confirms the financial information, such as gross receipts, used to determine its tax liability. This allows the business to satisfy the verification requirement without disclosing unrelated financial details. Occupation taxes are a primary source of revenue for many of Georgia’s cities and counties. They are levied on businesses for the privilege of operating within a specific jurisdiction. The tax can be calculated in several ways, including a flat fee, a fee based on profitability, or, most commonly, a fee based on the number of employees and the business’s gross receipts. The requirement to verify gross receipts is what has historically led local governments to request comprehensive financial documents. The use of affidavits is not a new concept in Georgia's business compliance framework. State law already mandates the use of sworn affidavits for several other aspects of obtaining an Occupation Tax Certificate. For instance, under O.C.G.A. § 50-36-1, all applicants must execute a notarized affidavit verifying their lawful presence in the United States. This often requires submission of a secure and verifiable document, such as a driver's license or permanent resident card. Furthermore, private employers are required to submit an affidavit pursuant to O.C.G.A. § 36-60-6(d) confirming their registration and participation in the federal E-Verify program to confirm the work authorization status of new employees. These existing requirements, detailed in application forms from counties like Douglas, Harris, and cities like Dahlonega, have established a precedent for using sworn statements to certify compliance with state law. The new CPA affidavit for financial data now extends this accepted practice into the tax verification domain. For Georgia's small and mid-sized businesses, the primary impact of this law will be enhanced data security and a potential reduction in administrative burden. Submitting a CPA's sworn statement is often faster and simpler than redacting and preparing entire tax returns for submission. It also minimizes the risk of sensitive business information—such as profit margins, expenses, and investment details—being mishandled or unnecessarily exposed. For local governments, the law may also streamline their own processes. Reviewing a standardized affidavit from a licensed professional could be more efficient than parsing varied and complex financial statements from thousands of different businesses. It effectively outsources a component of the verification process to the accounting profession, relying on the CPA's professional license and ethical obligations to ensure accuracy. Moving forward, businesses across Georgia should monitor communications from their specific city and county tax offices for guidance on how to implement this new option during the next renewal cycle. While the state has authorized the use of CPA affidavits, local jurisdictions will be responsible for developing the specific forms and procedures for their submission. Business owners should consult with their tax advisors to determine if this new filing method is the most advantageous approach for their specific circumstances.