08 LC 18
7540S
The
Senate Finance Committee offered 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, petroleum coke, 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,
petroleum coke, 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 petroleum coke, 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.