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04 LC 18 3293ER/AP
House Bill 1459 (AS PASSED HOUSE
AND SENATE)
By: Representatives Borders of the 142nd, Jamieson of the 22nd, Porter of the 119th, Keen of the 146th, Williams of the 4th, and others
By: Representatives Borders of the 142nd, Jamieson of the 22nd, Porter of the 119th, Keen of the 146th, Williams of the 4th, and others
A BILL TO BE
ENTITLED
AN ACT
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated,
relating to revenue and taxation, so as to change certain provisions regarding
compensation of dealers for reporting and paying sales and use taxes and motor
fuel taxes; to change certain provisions regarding the levy of motor fuel taxes;
to change certain provisions regarding licensing of certain fuel or gas
distributors; to change certain provisions regarding motor fuel distributor tax
reports; to change certain provisions regarding refunds of motor fuel taxes; to
provide for related matters; to provide an effective date; to repeal conflicting
laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION 1.
Title 48 of the Official Code of Georgia Annotated, relating
to revenue and taxation, is amended in subsection (b) of Code Section 48-8-50,
relating to compensation of dealers for reporting and paying sales and use taxes
and motor fuel taxes, by striking "and" at the end of paragraph (2), by striking
the period at the end of paragraph (3) and inserting in its place "; and", and
by adding a new paragraph immediately following paragraph (3) to be designated
paragraph (4) to read as
follows:
"(4) A deduction with respect to Code Section 48-9-14, as defined in paragraph (5.1) of Code Section 48-8-2, shall be at the rate of one-half percent of the total amount due of the prepaid state tax reported due on such return, so long as the payment is timely, regardless of the classification of tax return upon which the remittance is made."
"(4) A deduction with respect to Code Section 48-9-14, as defined in paragraph (5.1) of Code Section 48-8-2, shall be at the rate of one-half percent of the total amount due of the prepaid state tax reported due on such return, so long as the payment is timely, regardless of the classification of tax return upon which the remittance is made."
SECTION 2.
Said title is further amended by striking subsections (a)
and (b) of Code Section 48-9-3, relating to the levy of motor fuel taxes, and
inserting in their place new subsections (a) and (b) to read as follows:
"(a)(1) An excise tax is imposed at the rate of 7 1/2¢ per gallon on distributors who sell or use motor fuel within this state. It is the intention of the General Assembly that the legal incidence of the tax be imposed upon the distributor.
(2) In the event any motor fuels which are not commonly sold or measured by the gallon are used in any motor vehicles on the public highways of this state, the commissioner may assess, levy, and collect a tax upon such fuels, under such regulations ashe
the commissioner may promulgate, in accordance with and measured by the
nearest power potential equivalent to that of one gallon of regular grade
gasoline. Any determination by the commissioner of the power potential
equivalent of such motor fuels shall be prima-facie correct. Upon each such
quantity of such fuels used upon the public highways of this state, a tax at the
same rate per gallon imposed on motor fuel under paragraph (1) of this
subsection shall be assessed and collected.
(3) No county, municipality, or other political subdivision of this state shall levy any fee, license, or other excise tax on a gallonage basis upon the sale, purchase, storage, receipt, distribution, use, consumption, or other disposition of motor fuel. Nothing contained in this article shall be construed to prevent a county, municipality, or other political subdivision of this state from levying license fees or taxes upon any business selling motor fuel.
(4) For purposes of this subsection, and notwithstanding the provisions of paragraph (2) of this subsection and any provision contained in the National Bureau of Standards Handbook or any other national standard that may be adopted by law or regulation, the gallon equivalent of compressed natural gas shall be not less than 110,000 British thermal units. As used in this paragraph, the term 'compressed natural gas' means a mixture of hydrocarbon gases and vapors, consisting principally of methane in gaseous form, that has been compressed for use as a motor fuel.
(b) No tax is imposed by this article upon or with respect to the following sales by duly licensed distributors:
(1) Bulk sales to a duly licensed distributor;
(2) Sales of motor fuel for export from this state when exempted by any provisions of the Constitutions of the United States or this state;
(3) Sales of motor fuel to a licensed distributor for export from this state;
(4) Sales of motor fuel to the United States for the exclusive use of the United States when the motor fuel is purchased and paid for by the United States;
(5) Sales of aviation gasoline to a duly licensed aviation gasoline dealer, except for 1¢ per gallon of the tax imposed by paragraph (1) of subsection (a) of this Code section and all of the tax imposed by Code Section 48-9-14;
(6) Bulk sales offuel oils, compressed petroleum gas, or
special fuel to a duly licensed consumer
distributor;
(7)(A) Sales offuel
oils, compressed petroleum gas, or special fuel to a
consumer who has no highway use of the fuel at the time of the sale and does not
resell the fuel. Consumers of fuel oils, compressed petroleum
gas, or special fuel who have both highway and nonhighway use
of the fuel and resellers of such fuel must be licensed as distributors in order
for sales of the fuel to be tax exempt. Each type of motor fuel is to be
considered separately under this exemption.
(B)(i) In instances where a sale of compressed petroleum gas has been made to an ultimate consumer who has both highway and nonhighway use of that type of motor fuel and no tax has been paid by the distributor on the sale, the consumer shall become licensed as a consumer distributor of that type of motor fuel. After the consumer is licensed as a consumer distributor and if it is demonstrated to the satisfaction of the commissioner that the motor fuel purchased prior to the licensee´s becoming licensed as a consumer distributor was used for nonhighway purposes, such sales shall be exempt from the tax imposed by this article; provided, however, that, if at the time of demonstration the ultimate consumer does not have both highway and nonhighway use of such fuel but it can be demonstrated by the distributor to the satisfaction of the commissioner that the motor fuel was used for nonhighway purposes, the sales shall be exempt from the tax imposed by this article; and
(ii)(I) Anyfuel oils
or special fuel sold by a distributor to a purchaser who has a storage
receptacle which has a connection to a withdrawal outlet that may be used for
highway use, as defined in paragraph (8) of Code Section 48-9-2, is not exempt
from the motor fuel and road taxes imposed by this article unless: (1) the
purchaser is at the time of sale a valid licensed distributor of that type of
motor fuel, or (2) an exemption certificate has been obtained from the purchaser
on forms furnished by the Department of Revenue showing that the purchaser has
no highway use of such fuels and is not a reseller of such fuels. Each exemption
certificate shall be valid for a period of not more than three years and shall
be kept by the distributor as one of the records specified in Code Section
48-9-8. It shall be the responsibility of the purchaser to notify the
distributor when the purchaser is no longer qualified for the nonhighway
exemption. All applicable taxes must be charged the purchaser until the
purchaser is granted a valid
distributor´s
license for that type of motor fuel.
(II) Any such purchaser granted an exemption under subdivision (I) of this division who falsely claims the exemption or fails to rescind the purchaser´s exemption certificate to the distributor in writing when he or she is no longer eligible for the exemption shall be deemed a distributor for purposes of taxation and is subject to all provisions of this article relating to distributors. This division in no way shall restrict the option of the purchaser to become licensed as a distributor. If the distributor sellsfuel oils
or special fuel to a purchaser who has a storage receptacle which has a
connection to a withdrawal outlet that may be used for highway use, as defined
in paragraph (8) of Code Section 48-9-2, and the purchaser is not a valid
licensed distributor and has not executed a valid signed exemption certificate,
the taxes imposed by this article are due from the distributor and not the
purchaser on all sales of that type of fuel to that
purchaser;
(8) Sales of fuel oils, compressed petroleum gas, or special fuel directly to an ultimate consumer
to be used for heating purposes only. The delivery of fuel oils, compressed
petroleum gas, or special fuel directly to an ultimate consumer
to be used for heating purposes only shall be made directly into the storage
receptacle of the heating unit of the consumer by the licensed distributor. To
qualify for this exemption, sales must be delivered into storage receptacles
that are not equipped with any secondary withdrawal outlets for the motor fuel;
or
(9) Sales of dyed fuel oils to a consumer for other than highway use as defined in paragraph (8) of Code Section 48-9-2."
"(a)(1) An excise tax is imposed at the rate of 7 1/2¢ per gallon on distributors who sell or use motor fuel within this state. It is the intention of the General Assembly that the legal incidence of the tax be imposed upon the distributor.
(2) In the event any motor fuels which are not commonly sold or measured by the gallon are used in any motor vehicles on the public highways of this state, the commissioner may assess, levy, and collect a tax upon such fuels, under such regulations as
(3) No county, municipality, or other political subdivision of this state shall levy any fee, license, or other excise tax on a gallonage basis upon the sale, purchase, storage, receipt, distribution, use, consumption, or other disposition of motor fuel. Nothing contained in this article shall be construed to prevent a county, municipality, or other political subdivision of this state from levying license fees or taxes upon any business selling motor fuel.
(4) For purposes of this subsection, and notwithstanding the provisions of paragraph (2) of this subsection and any provision contained in the National Bureau of Standards Handbook or any other national standard that may be adopted by law or regulation, the gallon equivalent of compressed natural gas shall be not less than 110,000 British thermal units. As used in this paragraph, the term 'compressed natural gas' means a mixture of hydrocarbon gases and vapors, consisting principally of methane in gaseous form, that has been compressed for use as a motor fuel.
(b) No tax is imposed by this article upon or with respect to the following sales by duly licensed distributors:
(1) Bulk sales to a duly licensed distributor;
(2) Sales of motor fuel for export from this state when exempted by any provisions of the Constitutions of the United States or this state;
(3) Sales of motor fuel to a licensed distributor for export from this state;
(4) Sales of motor fuel to the United States for the exclusive use of the United States when the motor fuel is purchased and paid for by the United States;
(5) Sales of aviation gasoline to a duly licensed aviation gasoline dealer, except for 1¢ per gallon of the tax imposed by paragraph (1) of subsection (a) of this Code section and all of the tax imposed by Code Section 48-9-14;
(6) Bulk sales of
(7)(A) Sales of
(B)(i) In instances where a sale of compressed petroleum gas has been made to an ultimate consumer who has both highway and nonhighway use of that type of motor fuel and no tax has been paid by the distributor on the sale, the consumer shall become licensed as a consumer distributor of that type of motor fuel. After the consumer is licensed as a consumer distributor and if it is demonstrated to the satisfaction of the commissioner that the motor fuel purchased prior to the licensee´s becoming licensed as a consumer distributor was used for nonhighway purposes, such sales shall be exempt from the tax imposed by this article; provided, however, that, if at the time of demonstration the ultimate consumer does not have both highway and nonhighway use of such fuel but it can be demonstrated by the distributor to the satisfaction of the commissioner that the motor fuel was used for nonhighway purposes, the sales shall be exempt from the tax imposed by this article; and
(ii)(I) Any
(II) Any such purchaser granted an exemption under subdivision (I) of this division who falsely claims the exemption or fails to rescind the purchaser´s exemption certificate to the distributor in writing when he or she is no longer eligible for the exemption shall be deemed a distributor for purposes of taxation and is subject to all provisions of this article relating to distributors. This division in no way shall restrict the option of the purchaser to become licensed as a distributor. If the distributor sells
(8) Sales of fuel oils, compressed petroleum gas
(9) Sales of dyed fuel oils to a consumer for other than highway use as defined in paragraph (8) of Code Section 48-9-2."
SECTION 3.
Said title is further amended by striking subsection (a) of
Code Section 48-9-5, relating to licensing of certain fuel or gas distributors,
and inserting in its place a new subsection (a) to read as
follows:
"(a) Any person who has both highway and nonhighway use offuel
oils, compressed petroleum gas, or special fuel may
elect to become licensed as a distributor of that type of motor fuel. The
distributor shall be qualified to purchase motor fuel of that type exempt from
the taxes imposed by this article only after becoming licensed; provided,
however, that no license shall be required from a person whose only nonhighway
use is of dyed fuel oils. The distributor shall be subject to this
article."
"(a) Any person who has both highway and nonhighway use of
SECTION 4.
Said title is further amended by striking subsection (b) of
Code Section 48-9-8, relating to motor fuel distributor tax reports, and
inserting in its place a new subsection (b) to read as follows:
"(b) At the time
of submitting the report required by subsection (a) of this Code section, the
distributor shall pay to the commissioner the tax imposed by paragraph (1) of
subsection (a) of Code Section 48-9-3 on all gasoline, fuel oils, compressed
petroleum gas, special fuel, and aviation gasoline sold or used in this state
during the preceding calendar month, less an allowance of 1 percent of the
first 5 1/2¢ per gallon of the state tax as compensation
to cover losses and expenses incurred in reporting the tax to the state. The
allowance shall not be deductible unless the payment of tax is made on or before
the twentieth day of the month as required by this
article."
SECTION 5.
Said title is further amended by striking subsection (b) of
Code Section 48-9-10, relating to refunds of motor fuel taxes, and inserting in
its place a new subsection (b) to read as
follows:
"(b)(1) Every person who purchases gasoline in quantities of 25 gallons or more, when the gasoline is used in operating farm tractors and other equipment used for the production of agricultural crops on land owned or leased by such person, shall be entitled to a refund of all of the taxes imposed on gasoline by paragraph (1) of subsection (a) of Code Section 48-9-3 except 1¢ per gallon, subject to the rules and regulations adopted by the commissioner. All applications for refunds must be filed with the commissioner within 18 months from the date of purchase of the gasoline on which the refund is claimed.
(2) Every person who purchases fuel oils, except those dyed fuel oils as defined in Code Section 48-9-2, in quantities of 25 gallons or more, when the fuel oils are used in operating equipment used for nonhighway purposes, shall be entitled to a refund of all of the taxes imposed on fuel oils by paragraph (1) of subsection (a) of Code Section 48-9-3 except that no interest shall be paid. All applications for refunds must be filed with the commissioner within 18 months from the date of purchase of the fuel oils on which the refund is claimed."
"(b)(1) Every person who purchases gasoline in quantities of 25 gallons or more, when the gasoline is used in operating farm tractors and other equipment used for the production of agricultural crops on land owned or leased by such person, shall be entitled to a refund of all of the taxes imposed on gasoline by paragraph (1) of subsection (a) of Code Section 48-9-3 except 1¢ per gallon, subject to the rules and regulations adopted by the commissioner. All applications for refunds must be filed with the commissioner within 18 months from the date of purchase of the gasoline on which the refund is claimed.
(2) Every person who purchases fuel oils, except those dyed fuel oils as defined in Code Section 48-9-2, in quantities of 25 gallons or more, when the fuel oils are used in operating equipment used for nonhighway purposes, shall be entitled to a refund of all of the taxes imposed on fuel oils by paragraph (1) of subsection (a) of Code Section 48-9-3 except that no interest shall be paid. All applications for refunds must be filed with the commissioner within 18 months from the date of purchase of the fuel oils on which the refund is claimed."
SECTION 6.
This Act shall become effective on July 1,
2004.
SECTION 7.
All laws and parts of laws in conflict with this Act are
repealed.