07 LC 18
6116
House
Bill 219
By:
Representatives Royal of the
171st,
O`Neal of the
146th,
Roberts of the
154th,
and Black of the
174th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 48 of the Official Code of Georgia Annotated, relating to revenue
and taxation, so as to provide for prepayments of certain local sales and use
taxes with respect to motor fuels; to provide for procedures, conditions, and
limitations; to change certain provisions regarding penalties; to change certain
provisions regarding taxation of motor fuel; to change certain provisions
regarding sales and use tax exemptions regarding motor fuel; to change certain
provisions regarding refunds of motor fuel taxes; to change certain provisions
regarding the second motor fuel tax; 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.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended in Code Section 48-8-2, relating to definitions, by revising
paragraph (5.1) as follows:
"(5.1)
'Prepaid
state
sales
tax' means the tax levied under Code Section 48-8-30 in conjunction with Code
Section 48-8-3.1 and Code Section 48-9-14 on the retail sale of motor fuels for
highway use and collected prior to that retail sale. This tax is based upon the
average retail sales price as set forth in Code Section 48-9-14.
This shall
not apply to
The term
'prepaid sales tax' also means any local
sales and use tax which is levied on the sale or use of motor fuel 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, known as the 'Metropolitan Atlanta
Rapid Transit Authority Act of 1965';
or
by or pursuant to Article 2
of this
chapter; by or pursuant to
Article,
2A of this
chapter; or by or pursuant to Article
3, 3, or
4 of this chapter."
SECTION
2.
Said
title is further amended by revising subsection (b) of Code Section 48-8-49,
relating to dealers´ sales and use tax returns, as follows:
"(b)(1)
As used in this subsection, the term 'estimated tax liability' means a
dealer´s tax liability, adjusted to account for any subsequent change in
the state sales and use tax rate, based on the dealer´s average monthly
payments for the last fiscal year.
(2)
If the estimated tax liability of a dealer for any taxable period exceeds
$5,000.00, the dealer shall file a return and remit to the commissioner not less
than 50 percent of the estimated tax liability for the taxable period on or
before the twentieth day of the period. The amount of the payment of the
estimated tax liability shall be credited against the amount to be due on the
return required under subsection (a) of this Code section. This subsection
shall not apply to any dealer unless during the previous fiscal year the
dealer´s monthly payments exceeded $5,000.00 per month for three
consecutive months or more nor shall this subsection apply to any dealer whose
primary business is the sale of motor fuels who is remitting prepaid
state
sales
tax under paragraph (2) of subsection (b) of Code Section 48-9-14. No local
sales taxes shall be included in determining any estimated tax
liability."
SECTION
3.
Said
title is further amended by revising paragraph (4) of subsection (b) of Code
Section 48-8-50, relating to compensation of dealers, as follows:
"(4)
A deduction with respect to Code Section 48-9-14, as defined in paragraph (5.1)
of Code Section 48-8-2, shall be at the rate of one-half of 1 percent of the
total amount due of the prepaid
state
sales
tax reported due on such return, so long as the return and payment are timely,
regardless of the classification of tax return upon which the remittance is
made."
SECTION
4.
Said
title is further amended in Code Section 48-9-10, relating to refunds of motor
fuel taxes, by adding a new subsection to read as follows:
"(e)
In the event any distributor licensed under this chapter purchases any motor
fuel that the prepaid sales tax has been imposed on pursuant to paragraph (2) of
subsection (b) of Code Section 48-9-14 and resells the same to a governmental
entity that is totally or partially exempt from such tax under paragraph (1) of
Code Section 48-8-3, such distributor shall be entitled to either a credit or
refund. The amount of the credit or refund shall be the prepaid sales tax rate
for which such governmental entity is exempt multiplied by the gallons of motor
fuel purchased for their exclusive use. To be eligible for the credit or
refund, the distributor shall reduce the amount such distributor charges for the
fuel sold to such governmental entity by an amount equal to the tax from which
such governmental entity is exempt. Should a distributor have a liability under
Code Section 48-9-8, the distributor may elect to take a credit for those sales
against such liability. The distributor may obtain a refund for any amount not
taken as a credit within 18 months from the date of the sale to the governmental
entity."
SECTION
5.
Said
title is further amended by revising subsection (b) of Code Section 48-9-14,
relating to the second motor fuel tax, as follows:
"(b)(1)
The motor fuel tax imposed by this Code section is levied at the rate of 3
percent of the retail sale price less the tax imposed by Code Section 48-9-3
upon the sale, use, or consumption, as defined in Code Section 48-8-2, of motor
fuel in this state. This tax shall be subject only to the exemptions provided in
Code Section 48-9-3.
(2)(A)
As used in this paragraph, the term 'prepaid
state
sales
tax' shall have the same meaning as provided in paragraph (5.1) of Code Section
48-8-2.
(B)
At the time the tax imposed by Code Section 48-9-3 attaches to a sale or
transfer of motor fuels, a prepaid
state
sales
tax shall be collected. The same person remitting the tax imposed under Code
Section 48-9-3, but on a separate schedule, shall remit the prepaid
state
sales
tax to the state. The tax shall be separately invoiced throughout the chain of
distribution until it reaches the dealer who makes the retail sale. The
commissioner shall issue the rate of prepaid
state
sales
tax on a semiannual basis, rounded to the nearest $.001 per gallon for use in
the following semiannual period. The rate shall be calculated at 4 percent of
the state-wide average retail price by motor fuel type as compiled by the Energy
Information Agency of the United States Department of Energy, the Oil Pricing
Information Service, or a similar reliable published index less taxes imposed
under Code Section 48-9-3, this subsection, and all local sales and use taxes.
In the event that the retail price changes by 25 percent or more within a
semiannual period, the commissioner shall issue a revised prepaid
state
sales
tax rate for the remainder of that period.
(C)
The same prices set out in subparagraph (B) of this paragraph shall be used to
compute the prepaid sales tax rate for local jurisdictions by multiplying such
retail price by the applicable rate imposed by the jurisdiction. The person
collecting and reporting the prepaid sales tax for the local jurisdiction shall
provide a schedule as to which jurisdiction these collections relate. This
determination shall be made based upon the shipping papers of the conveyance
that delivered the motor fuel to the dealer or consumer in the local
jurisdiction. A seller may rely upon the representation made by the purchaser
as to which jurisdiction the shipment is bound and prepare shipping papers in
accordance with those
instructions."
SECTION
6.
This
Act shall become effective on January 1, 2008.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.