| HB 63 - Excise tax; certain motor fuels; levy and rate |
First Reader Summary
A BILL to amend Article 1 of Chapter 9 of Title 48 of the
Official Code of Georgia Annotated, relating to the motor fuel
tax, so as to change certain provisions relating to the levy and
rate of taxation with respect to certain motor fuels; and for
other purposes.
| House |
Action |
Senate |
| 1/13/99 |
Read 1st Time |
|
| 1/14/99 |
Read 2nd Time |
|
HB 63 LC 18 9122
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Article 1 of Chapter 9 of Title 48 of the Official
1- 2 Code of Georgia Annotated, relating to the motor fuel tax,
1- 3 so as to change certain provisions relating to the levy and
1- 4 rate of taxation with respect to certain motor fuels; to
1- 5 provide an effective date; to repeal conflicting laws; and
1- 6 for other purposes.
1- 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1- 8 SECTION 1.
1- 9 Article 1 of Chapter 9 of Title 48 of the Official Code of
1-10 Georgia Annotated, relating to the motor fuel tax, is
1-11 amended by striking Code Section 48-9-3, relating to the
1-12 levy and rate of taxation with respect to certain motor
1-13 fuels, which reads as follows:
1-14 "48-9-3.
1-15 (a)(1) An excise tax is imposed at the rate of 7 1/2›
1-16 per gallon on distributors who sell or use motor fuel
1-17 within this state. It is the intention of the General
1-18 Assembly that the legal incidence of the tax be imposed
1-19 upon the distributor.
1-20 (2) In the event any motor fuels which are not commonly
1-21 sold or measured by the gallon are used in any motor
1-22 vehicles on the public highways of this state, the
1-23 commissioner may assess, levy, and collect a tax upon
1-24 such fuels, under such regulations as he may promulgate,
1-25 in accordance with and measured by the nearest power
1-26 potential equivalent to that of one gallon of regular
1-27 grade gasoline. Any determination by the commissioner
1-28 of the power potential equivalent of such motor fuels
1-29 shall be prima-facie correct. Upon each such quantity
1-30 of such fuels used upon the public highways of this
1-31 state, a tax at the same rate per gallon imposed on
1-32 motor fuel under paragraph (1) of this subsection shall
1-33 be assessed and collected.
-1-
2- 1 (3) No county, municipality, or other political
2- 2 subdivision of this state shall levy any fee, license,
2- 3 or other excise tax on a gallonage basis upon the sale,
2- 4 purchase, storage, receipt, distribution, use,
2- 5 consumption, or other disposition of motor fuel.
2- 6 Nothing contained in this article shall be construed to
2- 7 prevent a county, municipality, or other political
2- 8 subdivision of this state from levying license fees or
2- 9 taxes upon any business selling motor fuel.
2-10 (4) For purposes of this subsection, and notwithstanding
2-11 the provisions of paragraph (2) of this subsection and
2-12 any provision contained in the National Bureau of
2-13 Standards Handbook or any other national standard that
2-14 may be adopted by law or regulation, the gallon
2-15 equivalent of compressed natural gas shall be not less
2-16 than 110,000 British thermal units. As used in this
2-17 paragraph, the term 'compressed natural gas' means a
2-18 mixture of hydrocarbon gases and vapors, consisting
2-19 principally of methane in gaseous form, that has been
2-20 compressed for use as a motor fuel.
2-21 (b) No tax is imposed by this article upon or with respect
2-22 to the following sales by duly licensed distributors:
2-23 (1) Bulk sales to a duly licensed distributor;
2-24 (2) Sales of motor fuel for export from this state when
2-25 exempted by any provisions of the Constitutions of the
2-26 United States or this state;
2-27 (3) Sales of motor fuel to a licensed distributor for
2-28 export from this state;
2-29 (4) Sales of motor fuel to the United States for the
2-30 exclusive use of the United States when the motor fuel
2-31 is purchased and paid for by the United States;
2-32 (5) Sales of aviation gasoline to a duly licensed
2-33 aviation gasoline dealer, except for 1› per gallon of
2-34 the tax imposed by paragraph (1) of subsection (a) of
2-35 this Code section and all of the tax imposed by Code
2-36 Section 48-9-14;
2-37 (6) Bulk sales of fuel oils, compressed petroleum gas,
2-38 or special fuel to a duly licensed consumer distributor;
2-39 (7)(A) Sales of fuel oils, compressed petroleum gas,
2-40 or special fuel to a consumer who has no highway use
2-41 of the fuel at the time of the sale and does not
-2-
3- 1 resell the fuel. Consumers of fuel oils, compressed
3- 2 petroleum gas, or special fuel who have both highway
3- 3 and nonhighway use of the fuel and resellers of such
3- 4 fuel must be licensed as distributors in order for
3- 5 sales of the fuel to be tax exempt. Each type of motor
3- 6 fuel is to be considered separately under this
3- 7 exemption.
3- 8 (B)(i) In instances where a sale of compressed
3- 9 petroleum gas has been made to an ultimate consumer
3-10 who has both highway and nonhighway use of that type
3-11 of motor fuel and no tax has been paid by the
3-12 distributor on the sale, the consumer shall become
3-13 licensed as a consumer distributor of that type of
3-14 motor fuel. After the consumer is licensed as a
3-15 consumer distributor and if it is demonstrated to
3-16 the satisfaction of the commissioner that the motor
3-17 fuel purchased prior to the licensee's becoming
3-18 licensed as a consumer distributor was used for
3-19 nonhighway purposes, such sales shall be exempt from
3-20 the tax imposed by this article; provided, however,
3-21 that, if at the time of demonstration the ultimate
3-22 consumer does not have both highway and nonhighway
3-23 use of such fuel but it can be demonstrated by the
3-24 distributor to the satisfaction of the commissioner
3-25 that the motor fuel was used for nonhighway
3-26 purposes, the sales shall be exempt from the tax
3-27 imposed by this article; and
3-28 (ii)(I) Any fuel oils or special fuel sold by a
3-29 distributor to a purchaser who has a storage
3-30 receptacle which has a connection to a withdrawal
3-31 outlet that may be used for highway use, as
3-32 defined in paragraph (8) of Code Section 48-9-2,
3-33 is not exempt from the motor fuel and road taxes
3-34 imposed by this article unless: (1) the purchaser
3-35 is at the time of sale a valid licensed
3-36 distributor of that type of motor fuel, or (2) an
3-37 exemption certificate has been obtained from the
3-38 purchaser on forms furnished by the Department of
3-39 Revenue showing that the purchaser has no highway
3-40 use of such fuels and is not a reseller of such
3-41 fuels. Each exemption certificate shall be valid
3-42 for a period of not more than three years and
3-43 shall be kept by the distributor as one of the
3-44 records specified in Code Section 48-9-8. It
3-45 shall be the responsibility of the purchaser to
-3-
4- 1 notify the distributor when the purchaser is no
4- 2 longer qualified for the nonhighway exemption.
4- 3 All applicable taxes must be charged the purchaser
4- 4 until the purchaser is granted a valid
4- 5 distributor's license for that type of motor fuel.
4- 6 (II) Any such purchaser granted an exemption under
4- 7 subdivision (I) of this division who falsely
4- 8 claims the exemption or fails to rescind the
4- 9 purchaser's exemption certificate to the
4-10 distributor in writing when he or she is no longer
4-11 eligible for the exemption shall be deemed a
4-12 distributor for purposes of taxation and is
4-13 subject to all provisions of this article relating
4-14 to distributors. This division in no way shall
4-15 restrict the option of the purchaser to become
4-16 licensed as a distributor. If the distributor
4-17 sells fuel oils or special fuel to a purchaser who
4-18 has a storage receptacle which has a connection to
4-19 a withdrawal outlet that may be used for highway
4-20 use, as defined in paragraph (8) of Code Section
4-21 .A NAME="48-9-2, and the purchaser is not a valid licensed"> 48-9-2, and the purchaser is not a valid licensed
4-22 distributor and has not executed a valid signed
4-23 exemption certificate, the taxes imposed by this
4-24 article are due from the distributor and not the
4-25 purchaser on all sales of that type of fuel to
4-26 that purchaser;
4-27 (8) Sales of fuel oils, compressed petroleum gas, or
4-28 special fuel directly to an ultimate consumer to be used
4-29 for heating purposes only. The delivery of fuel oils,
4-30 compressed petroleum gas, or special fuel directly to an
4-31 ultimate consumer to be used for heating purposes only
4-32 shall be made directly into the storage receptacle of
4-33 the heating unit of the consumer by the licensed
4-34 distributor. To qualify for this exemption, sales must
4-35 be delivered into storage receptacles that are not
4-36 equipped with any secondary withdrawal outlets for the
4-37 motor fuel; or
4-38 (9) Sales of dyed fuel oils to a consumer for other than
4-39 highway use as defined in paragraph (8) of Code Section
4-40 48-9-2.
4-41 (c) Fuel oils, compressed petroleum gas, or special fuel
4-42 used by a duly licensed distributor for nonhighway
4-43 purposes is exempt from the tax imposed by this article.
-4-
5- 1 (d) No export from this state shall be recognized as being
5- 2 exempt from tax under paragraphs (2) and (3) of subsection
5- 3 (b) of this Code section unless the exporter informs the
5- 4 seller and the terminal operator of the intention to
5- 5 export and causes to be set out the minimum information
5- 6 specified in subsection (e) of Code Section 48-9-17 on the
5- 7 bill of lading or equivalent documentation under which the
5- 8 motor fuel is transported. In the event that the motor
5- 9 fuel is delivered to any point other than that which is
5-10 set out on the bill of lading or equivalent documentation,
5-11 the legal incidence of the tax shall continue to be
5-12 imposed exclusively upon the exporter who caused the
5-13 export documentation to be issued and no exemption shall
5-14 be recognized until suitable proof of exportation has been
5-15 provided to the commissioner.",
5-16 and inserting in its place a new Code Section 48-9-3 to read
5-17 as follows:
5-18 "48-9-3.
5-19 (a)(1) An excise tax is imposed at the rate of 7 1/2›
5-20 per gallon on distributors who sell or use motor fuel
5-21 within this state. It is the intention of the General
5-22 Assembly that the legal incidence of the tax be imposed
5-23 upon the distributor.
5-24 (2) In the event any motor fuels which are not commonly
5-25 sold or measured by the gallon are used in any motor
5-26 vehicles on the public highways of this state, the
5-27 commissioner may assess, levy, and collect a tax upon
5-28 such fuels, under such regulations as he may promulgate,
5-29 in accordance with and measured by the nearest power
5-30 potential equivalent to that of one gallon of regular
5-31 grade gasoline. Any determination by the commissioner
5-32 of the power potential equivalent of such motor fuels
5-33 shall be prima-facie correct. Upon each such quantity
5-34 of such fuels used upon the public highways of this
5-35 state, a tax at the same rate per gallon imposed on
5-36 motor fuel under paragraph (1) of this subsection shall
5-37 be assessed and collected.
5-38 (3) No county, municipality, or other political
5-39 subdivision of this state shall levy any fee, license,
5-40 or other excise tax on a gallonage basis upon the sale,
5-41 purchase, storage, receipt, distribution, use,
5-42 consumption, or other disposition of motor fuel.
5-43 Nothing contained in this article shall be construed to
-5-
6- 1 prevent a county, municipality, or other political
6- 2 subdivision of this state from levying license fees or
6- 3 taxes upon any business selling motor fuel.
6- 4 (4) For purposes of this subsection, and notwithstanding
6- 5 the provisions of paragraph (2) of this subsection and
6- 6 any provision contained in the National Bureau of
6- 7 Standards Handbook or any other national standard that
6- 8 may be adopted by law or regulation, the gallon
6- 9 equivalent of compressed natural gas shall be not less
6-10 than 110,000 British thermal units. As used in this
6-11 paragraph, the term 'compressed natural gas' means a
6-12 mixture of hydrocarbon gases and vapors, consisting
6-13 principally of methane in gaseous form, that has been
6-14 compressed for use as a motor fuel.
6-15 (b) No tax is imposed by this article upon or with respect
6-16 to the following sales by duly licensed distributors:
6-17 (1) Bulk sales to a duly licensed distributor;
6-18 (2) Sales of motor fuel for export from this state when
6-19 exempted by any provisions of the Constitutions of the
6-20 United States or this state;
6-21 (3) Sales of motor fuel to a licensed distributor for
6-22 export from this state;
6-23 (4) Sales of motor fuel to the United States for the
6-24 exclusive use of the United States when the motor fuel
6-25 is purchased and paid for by the United States;
6-26 (5) Sales of aviation gasoline to a duly licensed
6-27 aviation gasoline dealer, except for 1› per gallon of
6-28 the tax imposed by paragraph (1) of subsection (a) of
6-29 this Code section and all of the tax imposed by Code
6-30 Section 48-9-14;
6-31 (6) Bulk sales of fuel oils, compressed petroleum gas,
6-32 or special fuel to a duly licensed consumer distributor;
6-33 (7)(A) Sales of fuel oils, compressed petroleum gas,
6-34 or special fuel to a consumer who has no highway use
6-35 of the fuel at the time of the sale and does not
6-36 resell the fuel. Consumers of fuel oils, compressed
6-37 petroleum gas, or special fuel who have both highway
6-38 and nonhighway use of the fuel and resellers of such
6-39 fuel must be licensed as distributors in order for
6-40 sales of the fuel to be tax exempt. Each type of motor
-6-
7- 1 fuel is to be considered separately under this
7- 2 exemption.
7- 3 (B)(i) In instances where a sale of compressed
7- 4 petroleum gas has been made to an ultimate consumer
7- 5 who has both highway and nonhighway use of that type
7- 6 of motor fuel and no tax has been paid by the
7- 7 distributor on the sale, the consumer shall become
7- 8 licensed as a consumer distributor of that type of
7- 9 motor fuel. After the consumer is licensed as a
7-10 consumer distributor and if it is demonstrated to
7-11 the satisfaction of the commissioner that the motor
7-12 fuel purchased prior to the licensee's becoming
7-13 licensed as a consumer distributor was used for
7-14 nonhighway purposes, such sales shall be exempt from
7-15 the tax imposed by this article; provided, however,
7-16 that, if at the time of demonstration the ultimate
7-17 consumer does not have both highway and nonhighway
7-18 use of such fuel but it can be demonstrated by the
7-19 distributor to the satisfaction of the commissioner
7-20 that the motor fuel was used for nonhighway
7-21 purposes, the sales shall be exempt from the tax
7-22 imposed by this article; and
7-23 (ii)(I) Any fuel oils or special fuel sold by a
7-24 distributor to a purchaser who has a storage
7-25 receptacle which has a connection to a withdrawal
7-26 outlet that may be used for highway use, as
7-27 defined in paragraph (8) of Code Section 48-9-2,
7-28 is not exempt from the motor fuel and road taxes
7-29 imposed by this article unless: (1) the purchaser
7-30 is at the time of sale a valid licensed
7-31 distributor of that type of motor fuel, or (2) an
7-32 exemption certificate has been obtained from the
7-33 purchaser on forms furnished by the Department of
7-34 Revenue showing that the purchaser has no highway
7-35 use of such fuels and is not a reseller of such
7-36 fuels. Each exemption certificate shall be valid
7-37 for a period of not more than three years and
7-38 shall be kept by the distributor as one of the
7-39 records specified in Code Section 48-9-8. It
7-40 shall be the responsibility of the purchaser to
7-41 notify the distributor when the purchaser is no
7-42 longer qualified for the nonhighway exemption.
7-43 All applicable taxes must be charged the purchaser
7-44 until the purchaser is granted a valid
7-45 distributor's license for that type of motor fuel.
-7-
8- 1 (II) Any such purchaser granted an exemption under
8- 2 subdivision (I) of this division who falsely
8- 3 claims the exemption or fails to rescind the
8- 4 purchaser's exemption certificate to the
8- 5 distributor in writing when he or she is no longer
8- 6 eligible for the exemption shall be deemed a
8- 7 distributor for purposes of taxation and is
8- 8 subject to all provisions of this article relating
8- 9 to distributors. This division in no way shall
8-10 restrict the option of the purchaser to become
8-11 licensed as a distributor. If the distributor
8-12 sells fuel oils or special fuel to a purchaser who
8-13 has a storage receptacle which has a connection to
8-14 a withdrawal outlet that may be used for highway
8-15 use, as defined in paragraph (8) of Code Section
8-16 .A NAME="48-9-2, and the purchaser is not a valid licensed"> 48-9-2, and the purchaser is not a valid licensed
8-17 distributor and has not executed a valid signed
8-18 exemption certificate, the taxes imposed by this
8-19 article are due from the distributor and not the
8-20 purchaser on all sales of that type of fuel to
8-21 that purchaser;
8-22 (8) Sales of fuel oils, compressed petroleum gas, or
8-23 special fuel directly to an ultimate consumer to be used
8-24 for heating purposes only. The delivery of fuel oils,
8-25 compressed petroleum gas, or special fuel directly to an
8-26 ultimate consumer to be used for heating purposes only
8-27 shall be made directly into the storage receptacle of
8-28 the heating unit of the consumer by the licensed
8-29 distributor. To qualify for this exemption, sales must
8-30 be delivered into storage receptacles that are not
8-31 equipped with any secondary withdrawal outlets for the
8-32 motor fuel; or
8-33 (9) Sales of dyed fuel oils to a consumer for other than
8-34 highway use as defined in paragraph (8) of Code Section
8-35 48-9-2.
8-36 (c) Fuel oils, compressed petroleum gas, or special fuel
8-37 used by a duly licensed distributor for nonhighway
8-38 purposes is exempt from the tax imposed by this article.
8-39 (d) No export from this state shall be recognized as being
8-40 exempt from tax under paragraphs (2) and (3) of subsection
8-41 (b) of this Code section unless the exporter informs the
8-42 seller and the terminal operator of the intention to
8-43 export and causes to be set out the minimum information
8-44 specified in subsection (e) of Code Section 48-9-17 on the
-8-
9- 1 bill of lading or equivalent documentation under which the
9- 2 motor fuel is transported. In the event that the motor
9- 3 fuel is delivered to any point other than that which is
9- 4 set out on the bill of lading or equivalent documentation,
9- 5 the legal incidence of the tax shall continue to be
9- 6 imposed exclusively upon the exporter who caused the
9- 7 export documentation to be issued and no exemption shall
9- 8 be recognized until suitable proof of exportation has been
9- 9 provided to the commissioner."
9-10 SECTION 2.
9-11 This Act shall become effective upon its approval by the
9-12 Governor or upon its becoming law without such approval.
9-13 SECTION 3.
9-14 All laws and parts of laws in conflict with this Act are
9-15 repealed.
-9-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 02/24/99
