07 LC 18
6004
House
Bill 237
By:
Representatives Martin of the
47th,
Stephens of the
164th,
Lewis of the
15th,
Watson of the
91st,
Royal of the
171st,
and others
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 state sales and use tax, so as to change certain provisions
regarding exemptions with respect to the sale of certain manufacturing
machinery, certain primary handling equipment, certain aircraft machinery or
equipment, certain parts, machinery clothing, molds, dies, or tooling, and
certain air or water pollution eliminating machinery and equipment; to provide
an effective date; 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 state sales and use tax, is amended by revising paragraphs (34), (34.1),
(34.2), (34.3), and (36) as follows:
"(34)
The sale of the following types of manufacturing machinery:
(A)
Machinery which is
used
directly in
necessary and
integral to the manufacture of tangible
personal property when the machinery is bought to replace or upgrade machinery
in a manufacturing plant presently existing in this state and machinery
components which are purchased to upgrade machinery used directly in the
manufacture of tangible personal property in a manufacturing plant;
(B)
Machinery which is
used
directly in
necessary and
integral to the manufacture of tangible
personal property when the machinery is
incorporated
used
for the first time in a new manufacturing plant located in this
state;
(C)
Machinery which is
used
directly in
necessary and
integral to the manufacture of tangible
personal property when the machinery is
incorporated
used
as additional machinery for the first time into a manufacturing plant presently
existing in this state; and
(D)
Any person making a sale of machinery for the purpose specified in subparagraph
(B) of this paragraph shall collect the tax imposed on the sale by this article
unless the purchaser furnishes him with a certificate issued by the commissioner
certifying that the purchaser is entitled to purchase the machinery without
paying the tax. As a condition precedent to the issuance of the certificate,
the commissioner, at his discretion, may require a good and valid bond with a
surety company authorized to do business in this state as surety or may require
legal securities, in an amount fixed by the commissioner, conditioned upon
payment by the purchaser of all taxes due under this article in the event it
should be determined that the sale fails to meet the requirements of this
subparagraph;
(34.1)(A)
The sale of primary material handling equipment which is used
directly
for the handling and movement of tangible personal property and racking systems
used for the conveyance and storage of tangible personal property in a warehouse
or distribution facility located in this state when such equipment is either
part of an expansion worth $5 million or more of an existing warehouse or
distribution facility or part of the construction of a new warehouse or
distribution facility where the total value of all real and personal property
purchased or acquired by the taxpayer for use in the warehouse or distribution
facility is worth $5 million or more.
(B)
In order to qualify for the exemption provided for in subparagraph (A) of this
paragraph, a warehouse or distribution facility may not make retail sales from
such facility to the general public if the total of the retail sales equals or
exceeds 15 percent of the total revenues of the warehouse or distribution
facility. If retail sales are made to the general public by a warehouse or
distribution facility and at any time the total of the retail sales equals or
exceeds 15 percent of the total revenues of the facility, the taxpayer will be
disqualified from receiving such exemption as of the date such 15 percent
limitation is met or exceeded. The taxpayer may be required to repay any tax
benefits received under subparagraph (A) of this paragraph on or after that date
plus penalty and interest as may be allowed by
law.;
(34.2)(A)
The sale or use of machinery or equipment, or both, which is used
directly
in the remanufacture of aircraft engines
or aircraft engine parts or components in a remanufacturing facility located in
this state. For purposes of this paragraph, 'remanufacture of aircraft engines
or aircraft engine parts or components' means the substantial overhauling or
rebuilding of aircraft engines or aircraft engine parts or
components.
(B)
Any person making a sale of machinery or equipment, or both, for the
remanufacture of aircraft engines or aircraft engine parts or components shall
collect the tax imposed on the sale by this article unless the purchaser
furnishes a certificate issued by the commissioner certifying that the purchaser
is entitled to purchase the machinery without paying the tax;
(34.3)(A)
The sale or use of repair or replacement parts, machinery clothing or
replacement machinery clothing, molds or replacement molds, dies or replacement
dies, and tooling or replacement tooling for machinery
used
directly in
necessary and
integral to the manufacture of tangible
personal property in a manufacturing plant presently existing in this
state.
(B)
The exemption provided for in this paragraph shall apply to that portion of the
sales price of each such part, item of machinery clothing, mold, die, or tool
which does not exceed $150,000.00.
(C)
The exemption provided for in this paragraph shall be applicable to all calendar
years beginning on or after January 1, 2001, as follows:
(i)
At the rate of 20 percent of the total sale or use as provided in subparagraph
(A) of this paragraph for the calendar year beginning January 1,
2001;
(ii)
At the rate of 40 percent of the total sale or use as provided in subparagraph
(A) of this paragraph for the calendar year beginning January 1,
2002;
(iii)
At the rate of 60 percent of the total sale or use as provided in subparagraph
(A) of this paragraph for the calendar year beginning January 1,
2003;
(iv)
At the rate of 80 percent of the total sale or use as provided in subparagraph
(A) of this paragraph for the calendar year beginning January 1, 2004;
and
(v)
At the rate of 100 percent of the total sale or use as provided in subparagraph
(A) of this paragraph for the calendar year beginning January 1, 2005, and for
each calendar year thereafter.
(D)(B)
The commissioner shall promulgate rules and regulations to implement and
administer this paragraph;"
"(36)(A)
The sale of machinery and equipment
and any
repair, replacement, or component parts for such machinery and
equipment which is
incorporated
into any facility and used for the primary
purpose of reducing or eliminating air or water pollution;
(B)
Any person making a sale of machinery and equipment
or repair,
replacement, or componet parts for such machinery and
equipment for the purposes specified in
this paragraph shall collect the tax imposed on the sale by this article unless
the purchaser furnishes him with a certificate issued by the commissioner
certifying that the purchaser is entitled to purchase the machinery and
equipment or
repair, replacement, or componet parts for such machinery and
equipment without paying the
tax;"
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.