| HB 59 - Sales tax; amend provisions |
First Reader Summary
A BILL to amend Part 2 of Article 1 of Chapter 8 of Title 48 of
the Official Code of Georgia Annotated, relating to the
imposition, rate, collection, and assessment of the state sales
and use tax, so as to change certain provisions regarding the
imposition of such tax; and for other purposes.
| House |
Action |
Senate |
| 1/13/99 |
Read 1st Time |
|
| 1/14/99 |
Read 2nd Time |
|
HB 59 LC 18 9132
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Part 2 of Article 1 of Chapter 8 of Title 48 of the
1- 2 Official Code of Georgia Annotated, relating to the
1- 3 imposition, rate, collection, and assessment of the state
1- 4 sales and use tax, so as to change certain provisions
1- 5 regarding the imposition of such tax; to repeal conflicting
1- 6 laws; and for other purposes.
1- 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1- 8 SECTION 1.
1- 9 Part 2 of Article 1 of Chapter 8 of Title 48 of the Official
1-10 Code of Georgia Annotated, relating to the imposition, rate,
1-11 collection, and assessment of the state sales and use tax,
1-12 is amended by striking Code Section 48-8-30, relating to the
1-13 imposition of the state sales and use tax, which reads as
1-14 follows:
1-15 "48-8-30.
1-16 (a) There is levied and imposed a tax on the retail
1-17 purchase, retail sale, rental, storage, use, or
1-18 consumption of tangible personal property and on the
1-19 services described in this article.
1-20 (b)(1) Every purchaser of tangible personal property at
1-21 retail in this state shall be liable for a tax on the
1-22 purchase at the rate of 4 percent of the sales price of
1-23 the purchase. The tax shall be paid by the purchaser to
1-24 the retailer making the sale, as provided in this
1-25 article. The retailer shall remit the tax to the
1-26 commissioner as provided in this article and, when
1-27 received by the commissioner, the tax shall be a credit
1-28 against the tax imposed on the retailer. Every person
1-29 making a sale or sales of tangible personal property at
1-30 retail in this state shall be a retailer and a dealer
1-31 and shall be liable for a tax on the sale at the rate of
1-32 4 percent of the gross sale or gross sales, or the
1-33 amount of taxes collected by him from his purchaser or
1-34 purchasers, whichever is greater.
-1-
2- 1 (2) No retail sale shall be taxable to the retailer or
2- 2 dealer which is not taxable to the purchaser at retail.
2- 3 (c)(1) Upon the first instance of use, consumption,
2- 4 distribution, or storage within this state of tangible
2- 5 personal property purchased at retail outside this
2- 6 state, the owner or user of the property shall be a
2- 7 dealer and shall be liable for a tax at the rate of 4
2- 8 percent of the cost price, except as provided in
2- 9 paragraph (2) of this subsection.
2-10 (2) Upon the first instance of use, consumption,
2-11 distribution, or storage within this state of tangible
2-12 personal property purchased at retail outside this state
2-13 and used outside this state for more than six months
2-14 prior to its first use within this state, the owner or
2-15 user of the property shall be a dealer and shall be
2-16 liable for a tax at the rate of 4 percent of the cost
2-17 price or fair market value of the property, whichever is
2-18 the lesser.
2-19 (3) This subsection shall not be construed to require a
2-20 duplication in the payment of the tax. The tax imposed
2-21 by this subsection shall be subject to the credit
2-22 otherwise granted by this article for like taxes
2-23 previously paid in another state.
2-24 (c.1)(1) Every purchaser of tangible personal property
2-25 at retail outside this state from a dealer, as defined
2-26 in subparagraph (H) of paragraph (3) of Code Section
2-27 48-8-2, when such property is to be used, consumed,
2-28 distributed, or stored within this state, shall be
2-29 liable for a tax on the purchase at the rate of 4
2-30 percent of the sales price of the purchase. It shall be
2-31 prima-facie evidence that such property is to be used,
2-32 consumed, distributed, or stored within this state if
2-33 that property is delivered in this state to the
2-34 purchaser or agent thereof. The tax shall be paid by
2-35 the purchaser to the retailer making the sale, as
2-36 provided in this article. The retailer shall remit the
2-37 tax to the commissioner as provided in this article and,
2-38 when received by the commissioner, the tax shall be a
2-39 credit against the tax imposed on the retailer. Every
2-40 person who is a dealer, as defined in subparagraph (H)
2-41 of paragraph (3) of Code Section 48-8-2 and who makes
2-42 any sale of tangible personal property at retail outside
2-43 this state which property is to be delivered in this
2-44 state to a purchaser or purchaser's agent shall be a
-2-
3- 1 retailer and a dealer for purposes of this article and
3- 2 shall be liable for a tax on the sale at the rate of 4
3- 3 percent of such gross sales or the amount of tax as
3- 4 collected by that person from purchasers having their
3- 5 purchases delivered in this state, whichever is greater.
3- 6 (2) No retail sale shall be taxable to the retailer or
3- 7 dealer which is not taxable to the purchaser at retail.
3- 8 The tax imposed by this subsection shall be subject to
3- 9 the credit otherwise granted by this article for like
3-10 taxes previously paid in another state. This subsection
3-11 shall not be construed to require a duplication in the
3-12 payment of the tax.
3-13 (d)(1) Every person to whom tangible personal property
3-14 in the state is leased or rented shall be liable for a
3-15 tax on the lease or rental at the rate of 4 percent of
3-16 the gross lease or rental charge. The tax shall be paid
3-17 to the person who leases or rents the property by the
3-18 person to whom the property is leased or rented. A
3-19 person who leases or rents property to others as a
3-20 dealer under this article shall remit the tax to the
3-21 commissioner as provided in this article. When received
3-22 by the commissioner, the tax shall be a credit against
3-23 the tax imposed on the person who leases or rents the
3-24 property to others. Every person who leases or rents
3-25 tangible personal property in this state to others shall
3-26 be a dealer and shall be liable for a tax on the lease
3-27 or rental at the rate of 4 percent of the gross lease or
3-28 rental proceeds, or the amount of taxes collected by him
3-29 from persons to whom he leases or rents tangible
3-30 personal property, whichever is greater.
3-31 (2) No lease or rental shall be taxable to the person
3-32 who leases or rents tangible property to another which
3-33 is not taxable to the person to whom the property is
3-34 leased or rented.
3-35 (3) The lessee of both taxable and exempt property in
3-36 this state under a single lease agreement containing a
3-37 lease period of ten years or more shall have the option
3-38 to discharge in full all sales and use taxes imposed by
3-39 this article relating to the tangible personal property
3-40 by paying in a lump sum 4 percent of the fair market
3-41 value of the tangible personal property at the date of
3-42 inception of the lease agreement in the same manner and
3-43 under the same conditions applicable to sales of the
3-44 tangible personal property.
-3-
4- 1 (e) Upon the first instance of use within this state of
4- 2 tangible personal property leased or rented outside this
4- 3 state, the person to whom the property is leased or rented
4- 4 shall be a dealer and shall be liable for a tax at the
4- 5 rate of 4 percent of the rental charge paid to the person
4- 6 who leased or rented the property, subject to the credit
4- 7 authorized for like taxes previously paid in another
4- 8 state.
4- 9 (e.1)(1) Every person who leases, as lessor, or rents
4-10 tangible personal property outside this state for use
4-11 within this state shall be liable for a tax at the rate
4-12 of 4 percent of the rental charge paid for that lease or
4-13 rental if that person is a dealer, as defined in
4-14 subparagraph (H) of paragraph (3) of Code Section 48-8-2
4-15 and title to that property remains in that person. It
4-16 shall be prima-facie evidence that such property is to
4-17 be used within this state if that property is delivered
4-18 in this state to the lessee or renter of such property,
4-19 or to the agent of either. The tax shall be paid by the
4-20 lessee or renter and payment of the tax shall be made to
4-21 the lessor or person receiving rental payments for that
4-22 property, which person shall be the dealer for purposes
4-23 of this article. The dealer shall remit the tax to the
4-24 commissioner as provided in this article and, when
4-25 received by the commissioner, the tax shall be a credit
4-26 against the tax imposed on the dealer. Every person who
4-27 is a dealer, as defined in subparagraph (H) of paragraph
4-28 (3) of Code Section 48-8-2 and who leases or rents
4-29 tangible personal property outside this state to be
4-30 delivered in this state to the lessee, renter, or agent
4-31 of either shall be a dealer and shall be liable as such
4-32 for a tax on the lease or rental at the rate of 4
4-33 percent of the gross proceeds from such leases or
4-34 rentals or the amount of taxes collected by that dealer
4-35 for leases or rentals of tangible personal property
4-36 delivered in this state, whichever is greater.
4-37 (2) No lease or rental shall be taxable to the dealer
4-38 which is not taxable to the lessee or renter. The tax
4-39 imposed by this subsection shall be subject to the
4-40 credit granted by this article for like taxes previously
4-41 paid in another state. This subsection shall not be
4-42 construed to require a duplication in the payment of the
4-43 tax.
-4-
5- 1 (f)(1) Every person purchasing or receiving any service
5- 2 within this state, the purchase of which is a retail
5- 3 sale, shall be liable for tax on the purchase at the
5- 4 rate of 4 percent of the gross charge or charges made
5- 5 for the purchase. The tax shall be paid by the person
5- 6 purchasing or receiving the service to the person
5- 7 furnishing the service. The person furnishing the
5- 8 service, as a dealer under this article, shall remit the
5- 9 tax to the commissioner as provided in this article;
5-10 and, when received by the commissioner, the tax shall be
5-11 a credit against the tax imposed on the person
5-12 furnishing the service. Every person furnishing a
5-13 service, the purchase of which is a retail sale, shall
5-14 be a dealer and shall be liable for a tax on the sale at
5-15 the rate of 4 percent of the gross charge or charges
5-16 made for furnishing the service, or the amount of taxes
5-17 collected by him from the person to whom the service is
5-18 furnished, whichever is greater.
5-19 (2) No sale of services shall be taxable to the person
5-20 furnishing the service which is not taxable to the
5-21 purchaser of the service.
5-22 (g) Whenever a purchaser of tangible personal property
5-23 under subsection (b) or (c.1) of this Code section, a
5-24 lessee or renter of the property under subsection (d) or
5-25 (e.1) of this Code section, or a purchaser of tangible
5-26 services under subsection (f) of this Code section does
5-27 not pay the tax imposed upon him to the retailer, lessor,
5-28 or dealer who rents involved in the taxable transaction,
5-29 the purchaser, lessee, or renter shall be a dealer himself
5-30 and the commissioner, whenever he has reason to believe
5-31 that a purchaser or lessee has not so paid the tax, may
5-32 assess and collect the tax directly against and from the
5-33 purchaser, lessee, or renter, unless the purchaser,
5-34 lessee, or renter shows that the retailer, lessor, or
5-35 dealer who rents involved in the transaction has
5-36 nevertheless remitted to the commissioner the tax imposed
5-37 on the transaction. If payment is received directly from
5-38 the purchaser, it shall not be collected a second time
5-39 from the retailer, lessor, or dealer who rents involved.
5-40 (h) The tax imposed by this Code section shall be
5-41 collected from the dealer and paid at the time and in the
5-42 manner provided in this article. Any person engaging or
5-43 continuing in business as a retailer and wholesaler or
5-44 jobber shall pay the tax imposed on the gross proceeds of
-5-
6- 1 retail sales of the business at the rate specified when
6- 2 proper books are kept showing separately the gross
6- 3 proceeds of sales for each business. If the records are
6- 4 not kept separately, the tax shall be paid as a retailer
6- 5 or dealer on the gross sales of the business. For the
6- 6 purpose of this Code section, all sales through any one
6- 7 vending machine shall be treated as a single sale. The
6- 8 gross proceeds for reporting vending sales shall be
6- 9 treated as if the tax is included in the sale and the
6-10 taxable proceeds shall be net of the tax included in the
6-11 sale.
6-12 (i) The tax levied by this Code section is in addition to
6-13 all other taxes, whether levied in the form of excise,
6-14 license, or privilege taxes, and shall be in addition to
6-15 all other fees and taxes levied.",
6-16 and inserting in its place a new Code Section 48-8-30 to
6-17 read as follows:
6-18 "48-8-30.
6-19 (a) There is levied and imposed a tax on the retail
6-20 purchase, retail sale, rental, storage, use, or
6-21 consumption of tangible personal property and on the
6-22 services described in this article.
6-23 (b)(1) Every purchaser of tangible personal property at
6-24 retail in this state shall be liable for a tax on the
6-25 purchase at the rate of 4 percent of the sales price of
6-26 the purchase. The tax shall be paid by the purchaser to
6-27 the retailer making the sale, as provided in this
6-28 article. The retailer shall remit the tax to the
6-29 commissioner as provided in this article and, when
6-30 received by the commissioner, the tax shall be a credit
6-31 against the tax imposed on the retailer. Every person
6-32 making a sale or sales of tangible personal property at
6-33 retail in this state shall be a retailer and a dealer
6-34 and shall be liable for a tax on the sale at the rate of
6-35 4 percent of the gross sale or gross sales, or the
6-36 amount of taxes collected by him from his purchaser or
6-37 purchasers, whichever is greater.
6-38 (2) No retail sale shall be taxable to the retailer or
6-39 dealer which is not taxable to the purchaser at retail.
6-40 (c)(1) Upon the first instance of use, consumption,
6-41 distribution, or storage within this state of tangible
6-42 personal property purchased at retail outside this
-6-
7- 1 state, the owner or user of the property shall be a
7- 2 dealer and shall be liable for a tax at the rate of 4
7- 3 percent of the cost price, except as provided in
7- 4 paragraph (2) of this subsection.
7- 5 (2) Upon the first instance of use, consumption,
7- 6 distribution, or storage within this state of tangible
7- 7 personal property purchased at retail outside this state
7- 8 and used outside this state for more than six months
7- 9 prior to its first use within this state, the owner or
7-10 user of the property shall be a dealer and shall be
7-11 liable for a tax at the rate of 4 percent of the cost
7-12 price or fair market value of the property, whichever is
7-13 the lesser.
7-14 (3) This subsection shall not be construed to require a
7-15 duplication in the payment of the tax. The tax imposed
7-16 by this subsection shall be subject to the credit
7-17 otherwise granted by this article for like taxes
7-18 previously paid in another state.
7-19 (c.1)(1) Every purchaser of tangible personal property
7-20 at retail outside this state from a dealer, as defined
7-21 in subparagraph (H) of paragraph (3) of Code Section
7-22 48-8-2, when such property is to be used, consumed,
7-23 distributed, or stored within this state, shall be
7-24 liable for a tax on the purchase at the rate of 4
7-25 percent of the sales price of the purchase. It shall be
7-26 prima-facie evidence that such property is to be used,
7-27 consumed, distributed, or stored within this state if
7-28 that property is delivered in this state to the
7-29 purchaser or agent thereof. The tax shall be paid by
7-30 the purchaser to the retailer making the sale, as
7-31 provided in this article. The retailer shall remit the
7-32 tax to the commissioner as provided in this article and,
7-33 when received by the commissioner, the tax shall be a
7-34 credit against the tax imposed on the retailer. Every
7-35 person who is a dealer, as defined in subparagraph (H)
7-36 of paragraph (3) of Code Section 48-8-2 and who makes
7-37 any sale of tangible personal property at retail outside
7-38 this state which property is to be delivered in this
7-39 state to a purchaser or purchaser's agent shall be a
7-40 retailer and a dealer for purposes of this article and
7-41 shall be liable for a tax on the sale at the rate of 4
7-42 percent of such gross sales or the amount of tax as
7-43 collected by that person from purchasers having their
7-44 purchases delivered in this state, whichever is greater.
-7-
8- 1 (2) No retail sale shall be taxable to the retailer or
8- 2 dealer which is not taxable to the purchaser at retail.
8- 3 The tax imposed by this subsection shall be subject to
8- 4 the credit otherwise granted by this article for like
8- 5 taxes previously paid in another state. This subsection
8- 6 shall not be construed to require a duplication in the
8- 7 payment of the tax.
8- 8 (d)(1) Every person to whom tangible personal property
8- 9 in the state is leased or rented shall be liable for a
8-10 tax on the lease or rental at the rate of 4 percent of
8-11 the gross lease or rental charge. The tax shall be paid
8-12 to the person who leases or rents the property by the
8-13 person to whom the property is leased or rented. A
8-14 person who leases or rents property to others as a
8-15 dealer under this article shall remit the tax to the
8-16 commissioner as provided in this article. When received
8-17 by the commissioner, the tax shall be a credit against
8-18 the tax imposed on the person who leases or rents the
8-19 property to others. Every person who leases or rents
8-20 tangible personal property in this state to others shall
8-21 be a dealer and shall be liable for a tax on the lease
8-22 or rental at the rate of 4 percent of the gross lease or
8-23 rental proceeds, or the amount of taxes collected by him
8-24 from persons to whom he leases or rents tangible
8-25 personal property, whichever is greater.
8-26 (2) No lease or rental shall be taxable to the person
8-27 who leases or rents tangible property to another which
8-28 is not taxable to the person to whom the property is
8-29 leased or rented.
8-30 (3) The lessee of both taxable and exempt property in
8-31 this state under a single lease agreement containing a
8-32 lease period of ten years or more shall have the option
8-33 to discharge in full all sales and use taxes imposed by
8-34 this article relating to the tangible personal property
8-35 by paying in a lump sum 4 percent of the fair market
8-36 value of the tangible personal property at the date of
8-37 inception of the lease agreement in the same manner and
8-38 under the same conditions applicable to sales of the
8-39 tangible personal property.
8-40 (e) Upon the first instance of use within this state of
8-41 tangible personal property leased or rented outside this
8-42 state, the person to whom the property is leased or rented
8-43 shall be a dealer and shall be liable for a tax at the
8-44 rate of 4 percent of the rental charge paid to the person
-8-
9- 1 who leased or rented the property, subject to the credit
9- 2 authorized for like taxes previously paid in another
9- 3 state.
9- 4 (e.1)(1) Every person who leases, as lessor, or rents
9- 5 tangible personal property outside this state for use
9- 6 within this state shall be liable for a tax at the rate
9- 7 of 4 percent of the rental charge paid for that lease or
9- 8 rental if that person is a dealer, as defined in
9- 9 subparagraph (H) of paragraph (3) of Code Section 48-8-2
9-10 and title to that property remains in that person. It
9-11 shall be prima-facie evidence that such property is to
9-12 be used within this state if that property is delivered
9-13 in this state to the lessee or renter of such property,
9-14 or to the agent of either. The tax shall be paid by the
9-15 lessee or renter and payment of the tax shall be made to
9-16 the lessor or person receiving rental payments for that
9-17 property, which person shall be the dealer for purposes
9-18 of this article. The dealer shall remit the tax to the
9-19 commissioner as provided in this article and, when
9-20 received by the commissioner, the tax shall be a credit
9-21 against the tax imposed on the dealer. Every person who
9-22 is a dealer, as defined in subparagraph (H) of paragraph
9-23 (3) of Code Section 48-8-2 and who leases or rents
9-24 tangible personal property outside this state to be
9-25 delivered in this state to the lessee, renter, or agent
9-26 of either shall be a dealer and shall be liable as such
9-27 for a tax on the lease or rental at the rate of 4
9-28 percent of the gross proceeds from such leases or
9-29 rentals or the amount of taxes collected by that dealer
9-30 for leases or rentals of tangible personal property
9-31 delivered in this state, whichever is greater.
9-32 (2) No lease or rental shall be taxable to the dealer
9-33 which is not taxable to the lessee or renter. The tax
9-34 imposed by this subsection shall be subject to the
9-35 credit granted by this article for like taxes previously
9-36 paid in another state. This subsection shall not be
9-37 construed to require a duplication in the payment of the
9-38 tax.
9-39 (f)(1) Every person purchasing or receiving any service
9-40 within this state, the purchase of which is a retail
9-41 sale, shall be liable for tax on the purchase at the
9-42 rate of 4 percent of the gross charge or charges made
9-43 for the purchase. The tax shall be paid by the person
9-44 purchasing or receiving the service to the person
-9-
10- 1 furnishing the service. The person furnishing the
10- 2 service, as a dealer under this article, shall remit the
10- 3 tax to the commissioner as provided in this article;
10- 4 and, when received by the commissioner, the tax shall be
10- 5 a credit against the tax imposed on the person
10- 6 furnishing the service. Every person furnishing a
10- 7 service, the purchase of which is a retail sale, shall
10- 8 be a dealer and shall be liable for a tax on the sale at
10- 9 the rate of 4 percent of the gross charge or charges
10-10 made for furnishing the service, or the amount of taxes
10-11 collected by him from the person to whom the service is
10-12 furnished, whichever is greater.
10-13 (2) No sale of services shall be taxable to the person
10-14 furnishing the service which is not taxable to the
10-15 purchaser of the service.
10-16 (g) Whenever a purchaser of tangible personal property
10-17 under subsection (b) or (c.1) of this Code section, a
10-18 lessee or renter of the property under subsection (d) or
10-19 (e.1) of this Code section, or a purchaser of tangible
10-20 services under subsection (f) of this Code section does
10-21 not pay the tax imposed upon him to the retailer, lessor,
10-22 or dealer who rents involved in the taxable transaction,
10-23 the purchaser, lessee, or renter shall be a dealer himself
10-24 and the commissioner, whenever he has reason to believe
10-25 that a purchaser or lessee has not so paid the tax, may
10-26 assess and collect the tax directly against and from the
10-27 purchaser, lessee, or renter, unless the purchaser,
10-28 lessee, or renter shows that the retailer, lessor, or
10-29 dealer who rents involved in the transaction has
10-30 nevertheless remitted to the commissioner the tax imposed
10-31 on the transaction. If payment is received directly from
10-32 the purchaser, it shall not be collected a second time
10-33 from the retailer, lessor, or dealer who rents involved.
10-34 (h) The tax imposed by this Code section shall be
10-35 collected from the dealer and paid at the time and in the
10-36 manner provided in this article. Any person engaging or
10-37 continuing in business as a retailer and wholesaler or
10-38 jobber shall pay the tax imposed on the gross proceeds of
10-39 retail sales of the business at the rate specified when
10-40 proper books are kept showing separately the gross
10-41 proceeds of sales for each business. If the records are
10-42 not kept separately, the tax shall be paid as a retailer
10-43 or dealer on the gross sales of the business. For the
10-44 purpose of this Code section, all sales through any one
-10-
11- 1 vending machine shall be treated as a single sale. The
11- 2 gross proceeds for reporting vending sales shall be
11- 3 treated as if the tax is included in the sale and the
11- 4 taxable proceeds shall be net of the tax included in the
11- 5 sale.
11- 6 (i) The tax levied by this Code section is in addition to
11- 7 all other taxes, whether levied in the form of excise,
11- 8 license, or privilege taxes, and shall be in addition to
11- 9 all other fees and taxes levied."
11-10 SECTION 2.
11-11 All laws and parts of laws in conflict with this Act are
11-12 repealed.
-11-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 02/24/99
