06 LC
18 5212S/AP
House
Bill 1014 (AS PASSED HOUSE AND SENATE)
By:
Representatives Tumlin of the
38th,
Ehrhart of the
36th,
Jones of the
44th,
Golick of the
34th,
Manning of the
32nd,
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 tax, so as to extend the automatic repeal date for
an exemption for overhead materials of a government contractor; to delete
obsolete language; 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 tax, is amended by striking paragraph (58) in its entirety
and inserting in lieu thereof the following:
"(58)(A)
Notwithstanding any provisions of this chapter to the contrary, sales to or use
by a government contractor of overhead materials in performance of a contract
with the United States government to which title passes immediately to the
government under the terms of the contract.
(B)
As used in this paragraph, the term:
(i)
'Government contractor' means a person who enters into a contract with the
United States Department of Defense or the National Aeronautics and Space
Administration to sell services or tangible personal property, or both, for the
purpose of the national defense.
(ii)
'Overhead materials' means any tangible personal property used or consumed in
the performance of a contract between the United States Department of Defense or
the National Aeronautics and Space Administration and a government contractor,
the cost of which is charged to an expense account and allocated to various
United States government contracts based upon generally accepted accounting
principles, and consistent with government contract accounting standards. The
term
overhead
materials does not include tangible
personal property which is incorporated into real property
construction.
(C)
The
exemption provided for in this paragraph shall be applicable to all calendar
years beginning on or after January 1, 1997, as follows:
(i)
At the rate of 25 percent of the total sale or use as provided in subparagraph
(A) for the calendar year beginning January 1, 1997;
(ii)
At the rate of 50 percent of the total sale or use as provided in subparagraph
(A) for the calendar year beginning January 1, 1998;
(iii)
At the rate of 75 percent of the total sale or use as provided in subparagraph
(A) for the calendar year beginning January 1, 1999; and
(iv)
At the rate of 100 percent of the total sale or use as provided in subparagraph
(A) for the calendar year beginning January 1, 2000, and for each calendar year
thereafter.
(D)
This paragraph shall stand repealed on January 1,
2007
2009;".
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.