05 LC
14 9054
House
Bill 341
By:
Representatives Burkhalter of the
50th,
Keen of the
179th,
and Harbin of the
118th
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 the tax treatment
of certain airline industry transactions; to provide for a partial exemption
under certain circumstances of jet fuel sold to certain qualifying airlines and
provide for the manner of collection of tax with respect to nonexempt sales; to
provide that jet fuel sold to certain qualifying airlines shall be exempt from
certain local sales and use taxes under certain circumstances; to provide that
certain sales of food and beverages for consumption by airline passengers and
crew shall be exempt from taxation under certain circumstances; to provide for
related matters; 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 striking subparagraph (B) of
paragraph (33) and inserting in its place a new subparagraph to read as
follows:
"(B)
In
Except as
otherwise provided in paragraph (33.1) of this Code section,
in lieu of any tax under this article
which would apply to the purchase, sale, use, storage, or consumption of the
tangible personal property described in this paragraph but for this exemption,
the tax under this article shall apply with respect to all fuel purchased and
delivered within this state by or to any common carrier and with respect to all
fuel purchased outside this state and stored in this state irrespective, in
either case, of the place of its subsequent
use;"
SECTION
2.
Said
Code Section 48-8-3 is further amended by adding after paragraph (33) 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), (C), and (D) 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 that is applicable to
the purchase of jet fuel. Thereafter, the purchase of jet fuel by a qualifying
airline during the fiscal year shall be exempt from state sales and use
tax.
(ii)
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.
(C)(i)
Effective July 1, 2006, the sale or use of jet fuel to or by any qualifying
airline shall not be subject to any local sales and use tax levied or imposed at
any time, except as provided in division (ii) of this subparagraph.
(ii)
The exemption provided for in this subparagraph shall not apply to the local
option tax for educational purposes authorized pursuant to the authority of
Article VIII, Section VI, Paragraph IV of the Constitution of
Georgia.
(iii)
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.
(D)
Except as provided in division (i) of subparagraph (C) of this paragraph, the
exemption provided for in this paragraph shall apply only as to transactions
occurring on or after July 1, 2005.
(E)
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.
(F)
The commissioner shall adopt rules and regulations to carry out the provisions
of this
paragraph."
SECTION
3.
Said
Code Section 48-8-3 is further amended by striking the word "or" at the end of
paragraph (79); substituting the symbol and word "; or" for the period at the
end of paragraph (80); and adding a new paragraph (81) to read as
follows:
"(81)
The sale of food and beverages to a commercial airline for service to passengers
and crew in the aircraft, whether in flight or on the ground, and the furnishing
or sale of food and beverages to commercial airline passengers and crew in the
aircraft, whether in flight or on the
ground."
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.