07 LC
14 9608
House
Bill 450
By:
Representatives Pruett of the
144th,
May of the
111th,
Coan of the
101st,
Roberts of the
154th,
Royal of the
171st,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-8-63of the Official Code of Georgia Annotated, relating to
sales and use taxation of contractors, so as to provide for the sales and use
tax treatment of tangible personal property sold to certain persons engaged in
the maintenance, repair, or improvement of real property and improvements
thereon; to define a terms; to provide for the taxable situs of sales; to
provide that subsequent use, consumption, or installation of the property
already taxed shall not constitute a further taxable transaction; to provide for
related matters; to provide for an effective date and applicability; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-8-63 of the Official Code of Georgia Annotated, relating to sales and
use taxation of contractors, is amended by revising subsection (b) as
follows:
"(b)(1)
Each person who orally, in writing, or by purchase order contracts to furnish
tangible personal property and to perform services under the contract within
this state shall be deemed to be the consumer of the tangible personal property
and shall pay the sales tax imposed by this article at the time of the purchase.
Any person so contracting who fails to pay the sales tax at the time of the
purchase or at the time the sale is consummated outside the limits of this state
shall be liable for the payment of the sales or use tax. This Code section
shall not relieve the dealer who made the sale from such dealer´s liability
to collect and pay the tax on purchases by a contractor.
(2)(A)
As used in this paragraph, the term 'maintenance contracting' means the
maintenance, repair, or improvement (or any combination thereof) of real
property and improvements thereon but does not include the original construction
of, reconstruction of, or construction of additions to improvements on real
property.
(B)
Where a person engaged in maintenance contracting pays the tax as provided under
paragraph (1) of this subsection upon the purchase of tangible personal property
to be used in maintenance contracting, the situs of the transaction shall be
determined by (i) the location to which the tangible personal property is
delivered; or (ii) the location of the principal place of business of the person
engaged in maintenance contracting if the tangible personal property is not
delivered.
(C)
Where a person engaged in maintenance contracting pays the tax as provided under
paragraph (1) of this subsection, such payment shall fully and completely
satisfy all tax obligations arising under this chapter; and no further taxable
transaction shall occur when the tangible personal property is used, consumed,
or installed at any place in the state, whether the same or different from the
taxable situs specified in subparagraph (B) of this
paragraph."
SECTION
2.
This
Act shall apply with respect to transactions on or after its effective date.
With respect to transactions prior to the effective date of this Act, no penalty
shall be imposed on or after the effective date of this Act for failure to
report or remit tax on a transaction which would not be taxable if it had
occurred on or after the effective date of this Act.
SECTION
3.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.