TITLE 48 REVENUE AND TAXATION

Section 13. Specific, Business, and Occupation Taxes, 48-13-1 through 48-13-133.

ARTICLE 2 NONRESIDENT CONTRACTORS

48-13-32. Bonds; procedure; condition precedent to commencing work; amount; blanket or master bonds; amount; registration of completed contracts; fee.

Before entering into the performance of any contract the total price of which or the total compensation to be received by the contractor from which amounts to more than $10,000.00, the contractor shall execute and file with the commissioner a good and valid bond with a surety company authorized to do business in this state or with sufficient sureties to be approved by the commissioner, conditioned that all taxes which may accrue to the state and to the political subdivisions of the state on account of the execution and performance of the contract will be paid on demand, including, but not limited to, contributions due under Chapter 8 of Title 34.
The execution and filing of the bond required by subsection (a) of this Code section shall be a condition precedent to commencing work on any contract in this state.
1. Every bond required by this Code section shall be in an amount equal to 10 percent of the contract price or of the compensation to be received by the contractor pursuant to the contract.
2. 1. The commissioner may permit or require a contractor to file a blanket or master bond conditioned as provided in subsection (a) of this Code section and in a sum determined proper by the commissioner when:
    1. The contractor is engaged in a continuing service under multiple contracts or is performing services under a contract on a contingent or unit basis, and the contract price or compensation cannot be determined until after the performance of the contract; or
    2. The commissioner finds that registration of a contract before commencement of work under the contract is impracticable for any reason.
  2. No bond pursuant to this paragraph shall be in an amount of less than $10,000.00 with respect to all contracts to be performed during the current calendar year.
  3. On or before March 1 in each year, the contractor shall report and register all contracts of $10,000.00 or more completed during the previous calendar year and shall pay the registration fee of $10.00 for each contract.

(Ga. L. 1961, p. 480, § 3; Code 1933, § 91A-6103, enacted by Ga. L. 1978, p. 309, § 2.)

Administrative Rules and Regulations.

- Contractors, Official Compilation of the Rules and Regulations of the State of Georgia, Department of Revenue, Sales and Use Tax Division, Substantive Rules and Regulations, § 560-12-2-.26.

Foreign or non-resident contractors and subcontractors, Official Compilation of the Rules and Regulations of the State of Georgia, Department of Revenue, Sales and Use Tax Division, Substantive Rules and Regulations, § 560-12-2-.43.

Law reviews.

- For article discussing legal aspects of investments and trade in Georgia by foreign business enterprises, see 27 Mercer L. Rev. 629 (1976).

JUDICIAL DECISIONS

Residency is a mixed question of fact and law, which is generally appropriate for the jury. Lenox Hotel Co. v. Charter Bldrs., Inc., 717 F. Supp. 1558 (N.D. Ga. 1989).

Foreign corporation may be resident contractor.

- Foreign corporation is not synonymous and cannot be equated with a nonresident corporation. Therefore, simply because a contractor may be considered a foreign corporation because the foreign corporation was incorporated in Texas does not preclude a finding that the foreign corporation is a resident contractor. Lenox Hotel Co. v. Charter Bldrs., Inc., 717 F. Supp. 1558 (N.D. Ga. 1989).

Late registration.

- Late registration and payment of all taxes and revenues due the state and the state's political subdivisions constitutes substantial compliance with the requirements of the Nonresident Contractors Act, O.C.G.A. § 48-13-30 et seq., thus removing the bar to maintenance of an action on the contract. Clover Cable of Ohio, Inc. v. Heywood, 260 Ga. 341, 392 S.E.2d 855 (1990); Fuller Enters. v. Hardin Constr. Group, Inc., 206 Ga. App. 8, 424 S.E.2d 311 (1992); Underground Festival, Inc. v. McAfee Eng'r Co., 214 Ga. App. 243, 447 S.E.2d 683 (1994).

Payment of taxes without registration.

- Payment of accrued state and local taxes was not "substantial compliance" with the Nonresident Contractors Act, O.C.G.A. § 48-13-30 et seq., absent registration of a construction contract with the commissioner. Fuller Enters. v. Hardin Constr. Group, Inc., 206 Ga. App. 8, 424 S.E.2d 311 (1992).

RESEARCH REFERENCES

C.J.S.

- 11 C.J.S., Bonds, § 7 et seq.

ALR.

- Validity of statute or ordinance which requires liability or indemnity insurance or bond as condition of license for conducting business or profession, 120 A.L.R. 950.

Building contractor's liability, upon bond or other agreement to indemnify owner, for injury or death of third persons resulting from owner's negligence, 27 A.L.R.3d 663.

What constitutes "public work" within statute relating to contractor's bond, 48 A.L.R.4th 1170.

Cases Citing Georgia Code 48-13-32 From Courtlistener.com
Total Results: 3
Mayor of Savannah v. Norman J. Bass Construction Co.
Court: Supreme Court of Georgia | Date Filed: 1994-03-14
Citation: 264 Ga. 16, 441 S.E.2d 63, 94 Fulton County D. Rep. 886, 1994 Ga. LEXIS 131
Snippet: the Revenue Commissioner the bond required by § 48-13-32; and that therefore Bass Construction was not
Department of Transportation v. Moseman Construction Co.
Court: Supreme Court of Georgia | Date Filed: 1990-07-12
Citation: 393 S.E.2d 258, 260 Ga. 369, 1990 Ga. LEXIS 284
Snippet: the NCA. The DOT correctly asserts that OCGA § 48-13-32 (b) states: "The execution and filing of the bond
Clover Cable of Ohio, Inc. v. Heywood
Court: Supreme Court of Georgia | Date Filed: 1990-07-05
Citation: 392 S.E.2d 855, 260 Ga. 341, 1990 Ga. LEXIS 266
Snippet: contract price or compensation to be received, OCGA § 48-13-32 (c) (1); when this is impracticable, a blanket

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