HB 835 - Tires and scrap tires; amend provisions; certain tax credit

First Reader Summary

A BILL to amend Code Section 12-8-40.1 of the Official Code of Georgia Annotated, relating to tire disposal restrictions, so as to extend the period of imposition of a special tax on the sale of new tires; to provide for the certification of scrap tires as being from this state; to amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rates, and computation of and exemptions from income taxes, so as to define certain terms; and for other purposes.

Page Numbers - 1/ 2/ 3

Code Sections - 48-7-40.12

HB 835                                             LC 21 4499 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Code Section 12-8-40.1 of the Official Code of 
  1- 2  Georgia Annotated, relating to tire disposal restrictions, 
  1- 3  so as to extend the period of imposition of a special tax on 
  1- 4  the sale of new tires; to provide for the certification of 
  1- 5  scrap tires as being from this state; to amend Article 2 of 
  1- 6  Chapter 7 of Title 48 of the Official Code of Georgia 
  1- 7  Annotated, relating to the imposition, rates, and 
  1- 8  computation of and exemptions from income taxes, so as to 
  1- 9  define certain terms; to provide a tax credit for businesses 
  1-10  engaged in the commercial reuse of tires; to provide for 
  1-11  conditions and restrictions relating to such tax credit; to 
  1-12  provide for a statement of intent relative to 
  1-13  appropriations; to provide for matters relative to the 
  1-14  foregoing; to provide an effective date; to repeal 
  1-15  conflicting laws; and for other purposes. 
 
  1-16       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-17                           SECTION 1. 
 
  1-18  Code Section 12-8-40.1 of the Official Code of Georgia 
  1-19  Annotated, relating to tire disposal restrictions, is 
  1-20  amended by striking in its entirety subsection (h) and 
  1-21  inserting in lieu thereof the following: 
 
  1-22      "(h)(1) Beginning July 1, 1992, a fee is imposed upon 
  1-23      the retail sale of all new replacement tires in this 
  1-24      state of $1.00 per tire sold.  The fee shall be 
  1-25      collected by  retail dealers at the time the retail 
  1-26      dealer sells a new replacement tire to the ultimate 
  1-27      consumer; provided, however, that a Georgia tire 
  1-28      distributor who sells tires to retail dealers must 
  1-29      collect such fees from any retail dealer who does not 
  1-30      have a valid scrap tire generator identification number 
  1-31      issued by the division.  The fee and any required 
  1-32      reports shall be remitted not less than quarterly on 
  1-33      such forms as may be prescribed by the division.  The 
  1-34      division is authorized to contract with the Department 
  1-35      of Revenue to, and the Department of Revenue is 
 
 
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  2- 1      authorized to, collect such fees on behalf of the 
  2- 2      division.  All fees received shall be deposited into the 
  2- 3      state treasury to the account of the general fund in 
  2- 4      accordance with the provisions of Code Section 45-12-92. 
  2- 5      All moneys deposited into the solid waste trust fund 
  2- 6      shall be deemed expended and contractually obligated and 
  2- 7      shall not lapse to the general fund.  It is intended 
  2- 8      that an amount equal to the fees collected pursuant to 
  2- 9      this subsection, less any amount deducted pursuant to 
  2-10      Code Section 48-7-40.12, be appropriated to the solid 
  2-11      waste trust fund. 
 
  2-12      (2) In collecting, reporting, and paying the fees due 
  2-13      under this subsection, each distributor or retailer 
  2-14      shall be allowed the following  deductions, but only if 
  2-15      the amount due was not delinquent at the time of 
  2-16      payment: 
 
  2-17        (A) A deduction of 3 percent of the first $3,000.00 of 
  2-18        the total amount of all fees reported due on such 
  2-19        report; and 
 
  2-20        (B) A deduction of one-half of 1 percent of that 
  2-21        portion exceeding $3,000.00 of the total amount of all 
  2-22        fees reported due on such report. 
 
  2-23      (3) The tire fees authorized in this subsection shall 
  2-24      cease to be collected on June 30, 2000 2005." 
 
  2-25                           SECTION 2. 
 
  2-26  Said Code section is further amended by inserting at the end 
  2-27  thereof the following: 
 
  2-28    "(m) The board shall establish a method of certifying for 
  2-29    purposes of Code Section 48-7-40.12 that scrap tires were 
  2-30    originally disposed of in this state and were not imported 
  2-31    into this state in any form other than as new tires or as 
  2-32    tires in use on motor vehicles brought into this state." 
 
  2-33                           SECTION 3. 
 
  2-34  Article 2 of Chapter 7 of Title 48 of the Official Code of 
  2-35  Georgia Annotated, relating to the imposition, rates, and 
  2-36  computation of and exemptions from income taxes, is amended 
  2-37  by inserting immediately following Code Section 48-7-40.11 a 
  2-38  new Code section to read as follows: 
 
  2-39    "48-7-40.12. 
 
  2-40    (a) As used in this Code section, the term: 
 
 
 
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  3- 1      (1) 'Commercial reuse of tires' means the burning of 
  3- 2      tires for fuel as an alternative to carbon fuels or the 
  3- 3      alteration or remanufacture of tires into products for 
  3- 4      use in a commercially viable manner other than as fuel; 
  3- 5      provided, however, that such term shall not include the 
  3- 6      retreading or other process for the reuse of tires for 
  3- 7      their original purpose. 
 
  3- 8      (2) 'Tire equivalent' means 20 pounds of chipped tire 
  3- 9      material. 
 
  3-10    (b) Any business engaged in the commercial reuse of tires 
  3-11    in this state shall be allowed a tax credit against the 
  3-12    tax imposed under this article in an amount equal to 50 
  3-13    cents per tire or tire equivalent so used. No tax credit 
  3-14    shall be granted in an amount less than $1,000.00. The 
  3-15    amount of the credit which may be used in any tax year 
  3-16    shall not exceed 50 percent of that year's tax liability 
  3-17    as determined without regard to other credits. 
 
  3-18    (c) Only tires or tire equivalent certified as having 
  3-19    originated in Georgia pursuant to the provisions of 
  3-20    subsection (m) of Code Section 12-8-40.1 shall qualify for 
  3-21    the tax credit granted by this Code section. Any taxpayer 
  3-22    claiming the credit provided by this Code section shall 
  3-23    maintain on file for at least five years all records 
  3-24    relating to the number of tires or the amount of tire 
  3-25    equivalent used and the certification that such material 
  3-26    originated in this state. 
 
  3-27    (d) The commissioner shall submit a report to the Governor 
  3-28    and the chairperson of the House Appropriations Committee 
  3-29    not later than December 1 of each year stating the amount 
  3-30    of the tax credit claimed for that tax year pursuant to 
  3-31    this Code section.  It is intended that the General 
  3-32    Assembly deduct from the amount appropriated to the solid 
  3-33    waste trust fund pursuant to paragraph (1) of Code Section 
  3-34    12-8-40.1 an amount equal to the amount of such tax credit 
  3-35    so certified by the commissioner." 
 
  3-36                           SECTION 4. 
 
  3-37  Notwithstanding any provisions of Code Section 1-3-4.1 of 
  3-38  the Official Code of Georgia Annotated to the contrary, this 
  3-39  Act shall become effective on July 1, 1997. 
 
  3-40                           SECTION 5. 
 
  3-41  All laws and parts of laws in conflict with this Act are 
  3-42  repealed. 
 
 
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