Georgia House of Representatives - 1995/1996 Sessions

HB 26 - Sales tax; phased-in exemp- tion; certain foods and drugs

Page Numbers - 1/ 2

1. Woods  32nd            2. Kaye  37th


House Comm: W&M        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
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               House          Action         Senate                                                 
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              1/11/95  Read 1st Time                                                                
              1/12/95  Read 2nd Time                                                                
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Code Sections amended:                                                                              


HB 26                                             LC 22 1341






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Chapter 8 of Title 48 of the Official Code of
  1- 2  Georgia Annotated, relating to sales and use taxation, so as
  1- 3  to provide for a phased-in exemption for certain food items
  1- 4  and certain drugs prescribed by physicians and dispensed by
  1- 5  pharmacists with respect to the levy or imposition of
  1- 6  certain sales and use taxation; to repeal conflicting laws;
  1- 7  and for other purposes.

  1- 8       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1- 9  Chapter 8 of Title 48 of the Official Code of Georgia
  1-10  Annotated, relating to sales and use taxation, is amended by
  1-11  striking "or" at the end of paragraph (54), by striking the
  1-12  period at the end of paragraph (55) and inserting in its
  1-13  place "; or", and by adding a new paragraph immediately
  1-14  following paragraph (55) of Code Section 48-8-3, relating to
  1-15  exemptions regarding the state sales and use tax, to be
  1-16  designated paragraph (56), to read as follows:

  1-17        "(56)(A) For purposes of this paragraph, the term
  1-18        'drugs' has the meaning defined in Code Section
  1-19        26-4-2.  On and after July 1, 1995, the retail sale
  1-20        for off-premises human consumption or use of food and
  1-21        beverages other than alcoholic beverages and of drugs
  1-22        dispensed by a pharmacist licensed under Chapter 4 of
  1-23        Title 26 at the prescription of a physician licensed
  1-24        under Chapter 34 of Title 43 shall constitute a retail
  1-25        sale for purposes of this article as follows:

  1-26          (i) For fiscal year 1996, the rate of taxation
  1-27          required under this article shall be 3 percent;

  1-28          (ii) For fiscal year 1997, the rate of taxation
  1-29          required under this article shall be 2 percent;

  1-30          (iii) For fiscal year 1998, the rate of taxation
  1-31          required under this article shall be 1 percent; and




                                 -1- (Index)

                                                  LC 22 1341

  2- 1          (iv) For fiscal year 1999 and future years, such
  2- 2          sales shall not constitute a retail sale for
  2- 3          purposes of this article and shall not be subject to
  2- 4          taxation under this article.

  2- 5        (B) The exemption provided for in subparagraph (A) of
  2- 6        this paragraph shall not apply to retail sales or
  2- 7        sales at retail of food and beverages other than
  2- 8        alcoholic beverages transacted at any food service
  2- 9        establishments for the preparation and serving of
  2-10        meals, lunches, short orders, sandwiches, frozen
  2-11        desserts, or other edible products, including
  2-12        restaurants; coffee shops; cafeterias; short order
  2-13        cafes; luncheonettes; taverns; lunchrooms; places
  2-14        which manufacture, wholesale, or retail sandwiches or
  2-15        salads; soda fountains; institutions, both public and
  2-16        private; food carts; itinerant restaurants; industrial
  2-17        cafeterias; catering establishments; food vending
  2-18        machines and vehicles and operations connected
  2-19        therewith; and similar facilities by whatever name
  2-20        called."

                         SECTION 2.

  2-21  All laws and parts of laws in conflict with this Act are
  2-22  repealed.
























                                 -2- (Index)