08 LC 18
7226S
The
House Committee on Ways and Means offers the following substitute to HB
272:
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 taxes, so as to provide for a partial exemption
for a limited period of time from state sales and use tax only with respect to
the sale or use of natural or artificial gas, No. 2 fuel oil, No. 6 fuel oil,
propane, and coal used directly or indirectly in the manufacture or processing,
in a manufacturing plant located in this state, of tangible personal property
primarily for resale, and the fuel cost recovery component of retail electric
rates used directly or indirectly in the manufacture or processing of tangible
personal property primarily for resale; 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 sales and use taxes, is amended by adding a new paragraph to read as
follows:
"(70.1)(A)
For the period commencing July 1, 2008, and concluding on December 31, 2010, the
sale of natural or artificial gas, No. 2 fuel oil, No. 6 fuel oil, propane, and
coal used directly or indirectly in the manufacture or processing, in a
manufacturing plant located in this state, of tangible personal property
primarily for resale, and the fuel cost recovery component of retail electric
rates used directly or indirectly in the manufacture or processing, in a
manufacturing plant located in this state, of tangible personal property
primarily for resale.
(B)
The exemption provided for in subparagraph (A) of this paragraph shall not apply
to the first $7.60 per decatherm of the sales price or cost price of natural or
artificial gas, the first $2.48 per gallon of the sales price or cost price of
No. 2 fuel oil, the first $1.72 per gallon of the sales price or cost price of
No. 6 fuel oil, the first $1.44 per gallon of the sales price or cost price of
propane, the first $57.90 per ton of coal, or the first 3.44¢ per kilowatt
hour of the fuel cost recovery component of retail electricity rates whether
such fuel recovery charges are charged separately or are embedded in such
electric rates. Dealers with such embedded rates may exempt from the
electricity sales upon which the sales tax is calculated no more than the
amount, if any, by which the fuel cost recovery charge approved by the Georgia
Public Service Commission for transmission customers of electric utilities
regulated by the Georgia Public Service Commission exceeds 3.44¢ per
kilowatt hour.
(C)(i)
For the purposes of this paragraph, 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'; by or pursuant to Article 2, 2A, 3, or 4 of this
chapter.
(ii)
The exemption provided for in subparagraph (A) of this paragraph shall not apply
to any local sales and use tax levied or imposed at any time.
(D)
Any person making a sale of items qualifying for exemption under
subparagraph (A) of this paragraph shall be relieved of the burden of
proving such qualification if the person receives in good faith a certificate
from the purchaser certifying that the purchase is exempt under this
paragraph.
(E)
Any person who qualifies for this exemption shall notify and certify to the
person making the qualified sale that this exemption is applicable to the
sale;"
SECTION
2.
This
Act shall become effective on July 1, 2008.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.