05 HB
341/AP
House
Bill 341 (AS PASSED HOUSE AND SENATE)
By:
Representatives Burkhalter of the
50th,
Keen of the
179th,
and Harbin of the
118th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-8-3 of the Official Code of Georgia Annotated, relating to
exemptions from sales and use taxation, so as to provide for the tax treatment
of certain airline industry transactions; to provide for a limited period of
time for a partial exemption under certain circumstances of jet fuel sold to
certain qualifying airlines and provide for the manner of collection of tax with
respect to nonexempt sales; to provide for a limited period of time that jet
fuel sold to certain qualifying airlines shall be exempt from certain local
sales and use taxes under certain circumstances; to provide that certain sales
of food and beverages for consumption by airline passengers and crew shall be
exempt from sales and use taxes under certain circumstances; to provide for
related matters; to provide for effective dates; to provide for automatic
repeal; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-8-3 of the Official Code of Georgia Annotated, relating to exemptions
from sales and use taxation, is amended by striking subparagraph (B) of
paragraph (33) and inserting in its place a new subparagraph (B) to read as
follows:
"(B)
In
Except as
otherwise provided in paragraph (33.1) of this Code section,
in lieu of any tax under this article
which would apply to the purchase, sale, use, storage, or consumption of the
tangible personal property described in this paragraph but for this exemption,
the tax under this article shall apply with respect to all fuel purchased and
delivered within this state by or to any common carrier and with respect to all
fuel purchased outside this state and stored in this state irrespective, in
either case, of the place of its subsequent
use;".
SECTION
2.
Said
Code section is further amended by striking subparagraph (B) of paragraph (33)
and inserting in its place a new subparagraph (B) to read as
follows:
"(B)
In lieu of any tax under this article which would apply to the purchase, sale,
use, storage, or consumption of the tangible personal property described in this
paragraph but for this exemption, the tax under this article shall apply with
respect to all fuel purchased and delivered within this state by or to any
common carrier and with respect to all fuel purchased outside this state and
stored in this state irrespective, in either case, of the place of its
subsequent
use;"
SECTION
3.
Said
Code section is further amended by adding after paragraph (33) a new paragraph
(33.1) to read as follows:
"(33.1)(A)
The sale or use of jet fuel to or by a qualifying airline, to the extent
provided in subparagraphs (B) and (C) of this paragraph.
(B)(i)
For each fiscal year beginning after June 30, 2005, each qualifying airline
shall pay the first $15 million of state sales and use tax, plus applicable
local sales and use tax, levied or imposed by this chapter on the purchase or
use of jet fuel. Thereafter, the purchase of jet fuel by a qualifying airline
during the fiscal year shall be exempt from state and local sales and use tax
except as provided in division (ii) of this subparagraph.
(ii)
The exemption provided in division (i) of this subparagraph shall not apply to
any local option sales tax for educational purposes authorized pursuant to the
authority of Article VIII, Section VI, Paragraph IV of the Constitution of
Georgia and which is effective before July 1, 2005.
(C)
The sale or use of jet fuel to or by a qualifying airline shall not be subject
to any local sales and use tax which becomes effective on or after July 1,
2005.
(D)
Each qualifying airline purchasing jet fuel on which state sales and use tax is
reasonably expected to exceed $15 million shall report and pay directly to the
Department of Revenue the tax applicable to the purchase of jet fuel under
procedures required by the commissioner.
(E)
For the purposes of this subparagraph, the term 'local sales and use tax' shall
mean any sales tax, use tax, or local sales and use tax which is levied and
imposed in an area consisting of less than the entire state, however authorized,
including, but not limited to, such taxes authorized by or pursuant to
constitutional amendment; by or pursuant to Section 25 of an Act approved March
10, 1965 (Ga. L. 1965, p. 2243), as amended, the 'Metropolitan Atlanta Rapid
Transit Authority Act of 1965'; or by or pursuant to Article 2, 2A, 3, or 4 of
this chapter.
(F)
The exemption provided for in this paragraph shall apply only as to transactions
occurring on or after July 1, 2005, and prior to July 1, 2007.
(G)
For purposes of this paragraph, a 'qualifying airline' shall mean any person
which is authorized by the Federal Aviation Administration or appropriate agency
of the United States to operate as an air carrier under an air carrier operating
certificate and which provides regularly scheduled flights for the
transportation of passengers or cargo for hire.
(H)
The commissioner shall adopt rules and regulations to carry out the provisions
of this paragraph.
(I)
This paragraph shall stand repealed in its entirety on July 1,
2007;"
SECTION
4.
Said
Code Section 48-8-3 is further amended by striking the word "or" at the end of
paragraph (79); substituting the symbol and word "; or" for the period at the
end of paragraph (80); and adding a new paragraph (81) to read as
follows:
"(81)
The sale of food and beverages, except for alcoholic beverages, to a qualifying
airline for service to passengers and crew in the aircraft, whether in flight or
on the ground, and the furnishing without charge of food and beverages to
qualifying airline passengers and crew in the aircraft, whether in flight or on
the ground; and for purposes of this paragraph a 'qualifying airline' shall mean
any person which is authorized by the Federal Aviation Administration or
appropriate agency of the United States to operate as an air carrier under an
air carrier operating certificate and which provides regularly scheduled flights
for the transportation of passengers or cargo for
hire."
SECTION
5.
(a)
Except as otherwise provided in this section, this Act shall become effective
July 1, 2005.
(b) Section 2 of this Act shall become effective July 1, 2007.
(c) Section 1 of this Act shall stand repealed in its entirety on July 1, 2007.
(b) Section 2 of this Act shall become effective July 1, 2007.
(c) Section 1 of this Act shall stand repealed in its entirety on July 1, 2007.
SECTION
6.
All
laws and parts of laws in conflict with this Act are repealed.