HB 82 - Certain sales and use tax; increase rate
Georgia House of Representatives - 1995/1996 Sessions
HB 82 - Certain sales and use tax; increase rate
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9
1. Royal 164th 2. Buck 135th 3. Jamieson 22nd
4. Skipper 137th
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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1/9/95 Read 1st Time
1/10/95 Read 2nd Time
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Rules Suspended to Introduce
Code Sections amended: 48-8-1.1, 48-8-1.2, 48-8-30, 48-8-32, 48-8-43
HB 82 LC 18 6366
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 increase the rate of tax on the retail purchase, retail
1- 4 sale, rental, storage, use, or consumption of certain
1- 5 tangible property and on certain services; to state
1- 6 legislative intent with respect to the use of tax proceeds;
1- 7 to provide for applicability with respect to building and
1- 8 construction materials and to certain services; to provide
1- 9 for application of sales and use taxes with respect to
1-10 certain sales of motor fuels; to provide for conforming
1-11 changes with respect to imposition of taxes, collection from
1-12 dealers, disposition of certain excess taxes, compensation
1-13 of dealers for reporting and paying taxes, and payment of
1-14 taxes by certain contractors; to provide for editorial
1-15 revision; to provide for other matters relative to the
1-16 foregoing; to provide an effective date; to repeal
1-17 conflicting laws; and for other purposes.
1-18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1-19 Chapter 8 of Title 48 of the Official Code of Georgia
1-20 Annotated, relating to sales and use taxation, is amended by
1-21 adding two new Code sections immediately following Code
1-22 Section 48-8-1, to be designated Code Sections 48-8-1.1 and
1-23 48-8-1.2, to read as follows:
1-24 "48-8-1.1. (Index)
1-25 It is the intention of the General Assembly that the
1-26 revenue generated by the 1 percent increase in the state
1-27 sales and use tax from 4 percent to 5 percent shall be
1-28 used to provide state funding for quality basic education
1-29 in place of local funds under Article 6 of Chapter 2 of
1-30 Title 20, the 'Quality Basic Education Act.' The General
1-31 Assembly recognizes and intends that all such revenue is
1-32 to be paid into the general fund of the state treasury and
1-33 subject to the normal budgetary and appropriations
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LC 18 6366
2- 1 process, but it is the intention of the General Assembly
2- 2 that such revenue shall be appropriated to fund quality
2- 3 basic education.
2- 4 48-8-1.2. (Index)
2- 5 (a) As used in this Code section, the term 'building and
2- 6 construction materials' means all building and
2- 7 construction materials, supplies, fixtures, or equipment,
2- 8 any combination of such items, and any other leased or
2- 9 purchased articles when the materials, supplies, fixtures,
2-10 equipment, or articles are to be utilized or consumed
2-11 during construction or are to be incorporated into
2-12 construction work pursuant to a bona fide written
2-13 construction contract.
2-14 (b) The increased rate of state sales and use taxation
2-15 from 4 percent to 5 percent shall not apply with respect
2-16 to the sale or use of building and construction materials
2-17 when the contract pursuant to which the materials are
2-18 purchased or used was advertised for bid prior to January
2-19 1, 1996, and the contract was entered into as a result of
2-20 a bid actually submitted in response to the advertisement
2-21 prior to January 1, 1996; provided, however, that any such
2-22 sale or use shall remain fully taxable at the prior rate
2-23 of taxation.
2-24 (c) With respect to services which are regularly billed on
2-25 a monthly basis, the increased rate of state sales and use
2-26 taxation from 4 percent to 5 percent shall apply to
2-27 services billed on or after January 1, 1996; provided,
2-28 however, that any such services billed prior to such date
2-29 shall remain fully taxable at the prior rate of taxation."
SECTION 2.
2-30 Said chapter is further amended by striking subsections (a)
2-31 and (b) of Code Section 48-8-3.1, relating to sales tax
2-32 exemptions as applied to motor fuels, in their entirety and
2-33 inserting in their respective places new subsections (a) and
2-34 (b) to read as follows:
2-35 "(a) Except as provided in subsection (b) of this Code
2-36 section, sales of motor fuels as defined in paragraph (9)
2-37 of Code Section 48-9-2 shall be exempt from the first 3
2-38 percent of the sales and use taxes levied or imposed by
2-39 this article and shall be subject to the remaining 1 2
2-40 percent of the sales and use taxes levied or imposed by
2-41 this article.
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LC 18 6366
3- 1 (b) Sales of motor fuel other than gasoline which motor
3- 2 fuel other than gasoline is purchased for purposes other
3- 3 than propelling motor vehicles on public highways as
3- 4 defined in Article 1 of Chapter 9 of this title shall be
3- 5 fully subject to the 4 5 percent sales and use taxes
3- 6 levied or imposed by this article unless otherwise
3- 7 specifically exempted by this article."
SECTION 3.
3- 8 Said chapter is further amended by striking Code Section
3- 9 48-8-30, relating to the rate and imposition of the state
3-10 sales and use tax, in its entirety and inserting in its
3-11 place a new Code Section 48-8-30 to read as follows:
3-12 "48-8-30. (Index)
3-13 (a) There is levied and imposed a tax on the retail
3-14 purchase, retail sale, rental, storage, use, or
3-15 consumption of tangible personal property and on the
3-16 services described in this article.
3-17 (b)(1) Every purchaser of tangible personal property at
3-18 retail in this state shall be liable for a tax on the
3-19 purchase at the rate of 4 5 percent of the sales price
3-20 of the purchase. The tax shall be paid by the purchaser
3-21 to the retailer making the sale, as provided in this
3-22 article. The retailer shall remit the tax to the
3-23 commissioner as provided in this article and, when
3-24 received by the commissioner, the tax shall be a credit
3-25 against the tax imposed on the retailer. Every person
3-26 making a sale or sales of tangible personal property at
3-27 retail in this state shall be a retailer and a dealer
3-28 and shall be liable for a tax on the sale at the rate of
3-29 4 5 percent of the gross sale or gross sales, or the
3-30 amount of taxes collected by him that person from his
3-31 the purchaser or purchasers, whichever is greater.
3-32 (2) No retail sale shall be taxable to the retailer or
3-33 dealer which is not taxable to the purchaser at retail.
3-34 (c) Upon the first instance of use, consumption,
3-35 distribution, or storage within this state of tangible
3-36 personal property purchased at retail outside this state,
3-37 the owner or user of the property shall be a dealer and
3-38 shall be liable for a tax at the rate of 4 5 percent of
3-39 the cost price or fair market value of the property,
3-40 whichever is the lesser. This subsection shall not be
3-41 construed to require a duplication in the payment of the
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LC 18 6366
4- 1 tax. The tax imposed by this subsection shall be subject
4- 2 to the credit otherwise granted by this article for like
4- 3 taxes previously paid in another state.
4- 4 (c.1)(1) Every purchaser of tangible personal property
4- 5 at retail outside this state from a dealer, as defined
4- 6 in subparagraph (H) of paragraph (3) of Code Section
4- 7 48-8-2, when such property is to be used, consumed,
4- 8 distributed, or stored within this state, shall be
4- 9 liable for a tax on the purchase at the rate of 4 5
4-10 percent of the sales price of the purchase. It shall be
4-11 prima-facie evidence that such property is to be used,
4-12 consumed, distributed, or stored within this state if
4-13 that property is delivered in this state to the
4-14 purchaser or agent thereof. The tax shall be paid by
4-15 the purchaser to the retailer making the sale, as
4-16 provided in this article. The retailer shall remit the
4-17 tax to the commissioner as provided in this article and,
4-18 when received by the commissioner, the tax shall be a
4-19 credit against the tax imposed on the retailer. Every
4-20 person who is a dealer, as defined in subparagraph (H)
4-21 of paragraph (3) of Code Section 48-8-2 and who makes
4-22 any sale of tangible personal property at retail outside
4-23 this state which property is to be delivered in this
4-24 state to a purchaser or purchaser's agent shall be a
4-25 retailer and a dealer for purposes of this article and
4-26 shall be liable for a tax on the sale at the rate of 4 5
4-27 percent of such gross sales or the amount of tax as
4-28 collected by that person from purchasers having their
4-29 purchases delivered in this state, whichever is greater.
4-30 (2) No retail sale shall be taxable to the retailer or
4-31 dealer which is not taxable to the purchaser at retail.
4-32 The tax imposed by this subsection shall be subject to
4-33 the credit otherwise granted by this article for like
4-34 taxes previously paid in another state. This subsection
4-35 shall not be construed to require a duplication in the
4-36 payment of the tax.
4-37 (d)(1) Every person to whom tangible personal property
4-38 in the state is leased or rented shall be liable for a
4-39 tax on the lease or rental at the rate of 4 5 percent of
4-40 the gross lease or rental charge. The tax shall be paid
4-41 to the person who leases or rents the property by the
4-42 person to whom the property is leased or rented. A
4-43 person who leases or rents property to others as a
4-44 dealer under this article shall remit the tax to the
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LC 18 6366
5- 1 commissioner as provided in this article. When received
5- 2 by the commissioner, the tax shall be a credit against
5- 3 the tax imposed on the person who leases or rents the
5- 4 property to others. Every person who leases or rents
5- 5 tangible personal property in this state to others shall
5- 6 be a dealer and shall be liable for a tax on the lease
5- 7 or rental at the rate of 4 5 percent of the gross lease
5- 8 or rental proceeds, or the amount of taxes collected by
5- 9 him that person from persons to whom he that person
5-10 leases or rents tangible personal property, whichever is
5-11 greater.
5-12 (2) No lease or rental shall be taxable to the person
5-13 who leases or rents tangible property to another which
5-14 is not taxable to the person to whom the property is
5-15 leased or rented.
5-16 (3) The lessee of both taxable and exempt property in
5-17 this state under a single lease agreement containing a
5-18 lease period of ten years or more shall have the option
5-19 to discharge in full all sales and use taxes imposed by
5-20 this article relating to the tangible personal property
5-21 by paying in a lump sum 4 5 percent of the fair market
5-22 value of the tangible personal property at the date of
5-23 inception of the lease agreement in the same manner and
5-24 under the same conditions applicable to sales of the
5-25 tangible personal property.
5-26 (e) Upon the first instance of use within this state of
5-27 tangible personal property leased or rented outside this
5-28 state, the person to whom the property is leased or rented
5-29 shall be a dealer and shall be liable for a tax at the
5-30 rate of 4 5 percent of the rental charge paid to the
5-31 person who leased or rented the property, subject to the
5-32 credit authorized for like taxes previously paid in
5-33 another state.
5-34 (e.1)(1) Every person who leases, as lessor, or rents
5-35 tangible personal property outside this state for use
5-36 within this state shall be liable for a tax at the rate
5-37 of 4 5 percent of the rental charge paid for that lease
5-38 or rental if that person is a dealer, as defined in
5-39 subparagraph (H) of paragraph (3) of Code Section 48-8-2
5-40 and title to that property remains in that person. It
5-41 shall be prima-facie evidence that such property is to
5-42 be used within this state if that property is delivered
5-43 in this state to the lessee or renter of such property,
5-44 or to the agent of either. The tax shall be paid by the
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LC 18 6366
6- 1 lessee or renter and payment of the tax shall be made to
6- 2 the lessor or person receiving rental payments for that
6- 3 property, which person shall be the dealer for purposes
6- 4 of this article. The dealer shall remit the tax to the
6- 5 commissioner as provided in this article and, when
6- 6 received by the commissioner, the tax shall be a credit
6- 7 against the tax imposed on the dealer. Every person who
6- 8 is a dealer, as defined in subparagraph (H) of paragraph
6- 9 (3) of Code Section 48-8-2 and who leases or rents
6-10 tangible personal property outside this state to be
6-11 delivered in this state to the lessee, renter, or agent
6-12 of either shall be a dealer and shall be liable as such
6-13 for a tax on the lease or rental at the rate of 4 5
6-14 percent of the gross proceeds from such leases or
6-15 rentals or the amount of taxes collected by that dealer
6-16 for leases or rentals of tangible personal property
6-17 delivered in this state, whichever is greater.
6-18 (2) No lease or rental shall be taxable to the dealer
6-19 which is not taxable to the lessee or renter. The tax
6-20 imposed by this subsection shall be subject to the
6-21 credit granted by this article for like taxes previously
6-22 paid in another state. This subsection shall not be
6-23 construed to require a duplication in the payment of the
6-24 tax.
6-25 (f)(1) Every person purchasing or receiving any service
6-26 within this state, the purchase of which is a retail
6-27 sale, shall be liable for tax on the purchase at the
6-28 rate of 4 5 percent of the gross charge or charges made
6-29 for the purchase. The tax shall be paid by the person
6-30 purchasing or receiving the service to the person
6-31 furnishing the service. The person furnishing the
6-32 service, as a dealer under this article, shall remit the
6-33 tax to the commissioner as provided in this article;
6-34 and, when received by the commissioner, the tax shall be
6-35 a credit against the tax imposed on the person
6-36 furnishing the service. Every person furnishing a
6-37 service, the purchase of which is a retail sale, shall
6-38 be a dealer and shall be liable for a tax on the sale at
6-39 the rate of 4 5 percent of the gross charge or charges
6-40 made for furnishing the service, or the amount of taxes
6-41 collected by him that person from the person to whom the
6-42 service is furnished, whichever is greater.
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LC 18 6366
7- 1 (2) No sale of services shall be taxable to the person
7- 2 furnishing the service which is not taxable to the
7- 3 purchaser of the service.
7- 4 (g) Whenever a purchaser of tangible personal property
7- 5 under subsection (b) or (c.1) of this Code section, a
7- 6 lessee or renter of the property under subsection (d) or
7- 7 (e.1) of this Code section, or a purchaser of tangible
7- 8 services under subsection (f) of this Code section does
7- 9 not pay the tax imposed upon him such person to the
7-10 retailer, lessor, or dealer who rents involved in the
7-11 taxable transaction, the purchaser, lessee, or renter
7-12 shall be a dealer himself and the commissioner, whenever
7-13 he or she has reason to believe that a purchaser or lessee
7-14 has not so paid the tax, may assess and collect the tax
7-15 directly against and from the purchaser, lessee, or
7-16 renter, unless the purchaser, lessee, or renter shows that
7-17 the retailer, lessor, or dealer who rents involved in the
7-18 transaction has nevertheless remitted to the commissioner
7-19 the tax imposed on the transaction. If payment is
7-20 received directly from the purchaser, it shall not be
7-21 collected a second time from the retailer, lessor, or
7-22 dealer who rents involved.
7-23 (h) The tax imposed by this Code section shall be
7-24 collected from the dealer and paid at the time and in the
7-25 manner provided in this article. Any person engaging or
7-26 continuing in business as a retailer and wholesaler or
7-27 jobber shall pay the tax imposed on the gross proceeds of
7-28 retail sales of the business at the rate specified when
7-29 proper books are kept showing separately the gross
7-30 proceeds of sales for each business. If the records are
7-31 not kept separately, the tax shall be paid as a retailer
7-32 or dealer on the gross sales of the business.
7-33 (i) The tax levied by this Code section is in addition to
7-34 all other taxes, whether levied in the form of excise,
7-35 license, or privilege taxes, and shall be in addition to
7-36 all other fees and taxes levied."
SECTION 4.
7-37 Said chapter is further amended by striking Code Section
7-38 48-8-32, relating to collection of the tax from dealers, in
7-39 its entirety and inserting in its place a new Code Section
7-40 48-8-32 to read as follows:
7-41 "48-8-32. (Index)
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LC 18 6366
8- 1 The tax at the rate of 4 5 percent of the retail sales
8- 2 price at the time of sale or 4 5 percent of the cost price
8- 3 at the time of purchase, as the case may be, shall be
8- 4 collectable from all persons engaged as dealers in the
8- 5 sale at retail, or in the use, consumption, distribution,
8- 6 or storage for use or consumption in this state of
8- 7 tangible personal property."
SECTION 5.
8- 8 Said chapter is further amended by striking Code Section
8- 9 48-8-43, relating to the disposition of certain excess
8-10 taxes, in its entirety and inserting in its place a new Code
8-11 Section 48-8-43 to read as follows:
8-12 "48-8-43. (Index)
8-13 When the tax collected for any period is in excess of 4 5
8-14 percent, the total tax collected shall be paid over to the
8-15 commissioner less the compensation to be allowed the
8-16 dealer."
SECTION 6.
8-17 Said chapter is further amended by striking subsection (d)
8-18 of Code Section 48-8-63, relating to the payment of the tax
8-19 by certain contractors, in its entirety and inserting in its
8-20 place a new subsection (d) to read as follows:
8-21 "(d)(1) Any person who subcontracts with a general or
8-22 prime contractor shall be liable under this article as a
8-23 general or prime contractor. The general or prime
8-24 contractor shall withhold up to 4 5 percent of the
8-25 payments due the subcontractor arising out of the
8-26 contract entered into between the general and prime
8-27 contractor in satisfaction of any sales or use taxes
8-28 owed this state.
8-29 (2) The prime or general contractor shall withhold
8-30 payments as provided in paragraph (1) of this subsection
8-31 until the subcontractor furnishes him such contractor
8-32 with a certificate issued by the commissioner showing
8-33 that all sales taxes accruing by reason of the contract
8-34 between the subcontractor and the general or prime
8-35 contractor have been paid and satisfied. If the prime or
8-36 general contractor for any reason fails to withhold up
8-37 to 4 5 percent of the payments due the subcontractor
8-38 under their contract, he such contractor shall become
8-39 liable for any sales or use taxes due or owed this state
8-40 by the subcontractor."
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LC 18 6366
SECTION 7.
9- 1 This Act shall become effective on January 1, 1996.
SECTION 8.
9- 2 All laws and parts of laws in conflict with this Act are
9- 3 repealed.
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Last Updated on 01/02/97