09 LC 18
7953
House
Bill 271
By:
Representatives Peake of the
137th,
Williams of the
4th,
Stephens of the
164th,
Martin of the
47th,
Amerson of the
9th,
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 sales and use taxes, so as to provide for a phased-in exemption
with respect to state sales and use tax for the sale of natural or artificial
gas, electricity, or any other energy used directly or indirectly in the
manufacture or processing, in a manufacturing plant located in this state, 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 revising paragraph (70.1) 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'; or 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;
(70.1)(A)(i)
The sale of natural or artificial gas, electricity, or any other energy used
directly or indirectly in the production or processing, in a manufacturing plant
located in this state, of tangible personal property primarily for resale as
specified in division (ii) of this subparagraph:
(ii)(I)
At the rate of 20 percent of the total sale or use as described in division (i)
of this subparagraph for the calendar year beginning January 1,
2011;
(II)
At the rate of 40 percent of the total sale or use as described in division (i)
of this subparagraph for the calendar year beginning January 1,
2012;
(III)
At the rate of 60 percent of the total sale or use as described in division (i)
of this subparagraph for the calendar year beginning January 1,
2013;
(IV)
At the rate of 80 percent of the total sale or use as described in division (i)
of this subparagraph for the calendar year beginning January 1, 2014;
and
(V)
At the rate of 100 percent of the total sale or use as described in division (i)
of this subparagraph for the calendar year beginning January 1, 2015, and for
each calendar year thereafter.
(B)
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.
(C)
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.
(F)
The commissioner shall adopt rules and regulations to carry out the provisions
of this paragraph;"
SECTION
2.
This
Act shall become effective on January 1, 2011.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.