|
For Immediate Release
July 21, 2008
Georgia Manufacturing Exemptions Amended
Certain exemptions for purchasing manufacturing
equipment are amended under the “Integrated Plant” theory for Georgia
sales and use tax.
The legislation exempts the purchase of machinery,
equipment, and related components necessary and integral to the
manufacturing of tangible personal property, when they are purchased to
replace or upgrade machinery or equipment in a Georgia manufacturing
plant. This exemption also includes purchases of such equipment and
components that are used for the first time in a new manufacturing plant
in Georgia.
Previously, the law exempted machinery or machinery
components used directly in the manufacture of tangible personal
property, when purchased to replace or upgrade machinery in a
manufacturing plant, and machinery used directly in the
manufacturing of tangible personal property when it was used for the first
time in a new manufacturing plant in the state.
This legislation also exempts the sale or use of repair
or replacement parts, machinery clothing, replacement machinery clothing,
molds, replacement molds, dies or replacement dies, waxes, and tooling or
replacement tooling for machinery that is necessary and integral to the
manufacture of tangible personal property.
Previously, the law did not exempt waxes and the exempt
items had to be used directly in the manufacture of tangible personal
property. The legislation also removes the $150,000 cap on the amount of
the sales price that was eligible for the exemption. These exemptions do
not affect any tax, penalty, or interest liabilities or refund eligibility
for any period prior to January 1, 2009.
The legislation also includes amendments for pollution
control and material handling equipment.
If you would like additional
information on this topic or have any questions,
please contact the taxdesk@thesaltgroup.com
|
