hb306_LC_18_4332S_hs_4.html
05 LC 18 4332S

The House Committee on Ways and Means offers the following substitute to HB 306:

A BILL TO BE ENTITLED
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 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 written notice to the contractor of any 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All laws and parts of laws in conflict with this Act are repealed.