06 LC
18 4751
Senate
Bill 403
By:
Senator Reed of the 35th
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 taxation, so as to provide for a limited period of
time for a sales and use tax exemption under certain circumstances of jet fuel
sold to or used by certain qualifying airlines; to provide for early termination
under certain circumstances; to provide for related matters; to provide for 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 taxation, is amended by amending paragraph (33.1) and
inserting in its place a new paragraph (33.1) to read as follows:
"(33.1)(A)
The sale or use of jet fuel to or by a qualifying
airline, to
the extent provided in subparagraphs (B) and (C) of this
paragraph.
(B)(i)
For each fiscal year beginning after June 30, 2005, each qualifying airline
shall pay the first $15 million of state sales and use tax, plus applicable
local sales and use tax, levied or imposed by this chapter on the purchase or
use of jet fuel. Thereafter, the purchase of jet fuel by a qualifying airline
during the fiscal year shall be exempt from state and local sales and use tax
except as provided in division (ii) of this subparagraph.
(ii)
The exemption provided in division (i) of this subparagraph shall not apply to
any local option sales tax for educational purposes authorized pursuant to the
authority of Article VIII, Section VI, Paragraph IV of the Constitution of
Georgia and which is effective before July 1, 2005.
(C)
The sale or use of jet fuel to or by a qualifying airline shall not be subject
to any local sales and use tax which becomes effective on or after July 1,
2005.
(D)
Each qualifying airline purchasing jet fuel on which state sales and use tax is
reasonably expected to exceed $15 million shall report and pay directly to the
Department of Revenue the tax applicable to the purchase of jet fuel under
procedures required by the commissioner.
(E)
For the purposes of this subparagraph, 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.
(F)(B)
The exemption provided for in this paragraph shall apply only as to transactions
occurring
on or after July 1, 2005, and prior to July 1,
2007
which occur
during the two-year period commencing on the effective date of this paragraph
and concluding on the last day of such two-year period; provided, however, that
such period may be terminated by executive order of the Governor prior to the
regular expiration of such period upon a determination by the Governor that
appropriate exigent circumstances exist to warrant such early
termination.
(G)(C)
For purposes of this paragraph, a 'qualifying airline' shall mean any person
which is authorized by the Federal Aviation Administration or appropriate agency
of the United States to operate as an air carrier under an air carrier operating
certificate and which provides regularly scheduled flights for the
transportation of passengers or cargo for hire.
(H)(D)
The commissioner shall adopt rules and regulations to carry out the provisions
of this
paragraph.
(I)
This paragraph shall stand repealed in its entirety on July 1,
2007;"
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.