05 HB
306/AP
House
Bill 306 (AS PASSED HOUSE AND SENATE)
By:
Representatives Rice of the
51st,
Ehrhart of the
36th,
and Burkhalter of the
50th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating
to sales and use taxes, so as to change certain provisions regarding payment of
such tax with respect to certain tangible personal property; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and
use taxes, is amended in Code Section 48-8-63, relating to payment of sales and
use tax by contractors, by adding a new subsection immediately following
subsection (f) to be designated subsection (g) to read as follows:
"(g)(1)
Nothing contained in this Code section shall be construed to impose any sales or
use tax with respect to the use of tangible personal property owned by the State
of Georgia, the University System of Georgia, or any county, municipality, local
board of education, or other political subdivision of this state in the
performance of contracts with such entities when the property is not actually
used up and consumed in the performance of the contract. Tangible personal
property incorporated into real property construction which loses its identity
as tangible personal property shall be deemed to be used up and consumed within
the meaning of this subsection. Any governmental entity which furnishes
tangible personal property to a contractor for incorporation into a
construction, renovation, or repair project conducted pursuant to a contract
with such governmental entity shall issue advance written notice to such
contractor of the amount of tax owed for such tangible personal property. The
failure of the governmental entity to issue such advance written notice to the
contractor of such tax liability shall render such governmental entity liable
for such tax.
(2)
This subsection shall not apply with respect to the use of tangible personal
property owned by the United
States."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.