The State of Georgia has implemented a 4-year phase-out of sales and use tax on energy used to manufacture tangible personal property for NAICS manufacturers.
The 4-year phase-out of sales and use tax on the sale, use, storage, or consumption of energy* used to manufacture tangible personal property in Georgia is scheduled as follows:
Those qualifying for full or a partial exemption under the above phase-out schedule must certify to the seller that the exemption applies.
O.C.G.A. Sec. 48-8-3.2(c)(1)
Effective March 5, 2013, a dealer that performs both manufacturing and agricultural operations at a single place of business can use exemptions under either O.C.G.A. Sec. 48-8-3.2 for manufacturers, or O.C.G.A. Sec. 48-8-3.3 for qualified agriculture producers for that one place of business in any one calendar year. (O.C.G.A. Sec. 48-8-3.3(f)).
A 4-year phase-in of an excise tax on the sales or use of energy by municipalities and newly created “special districts” affected by the phase-out is scheduled as follows:
(O.C.G.A. Sec. 48-13-110; O.C.G.A. Sec. 48-13-112(a)(3), (d); O.C.G.A. Sec. 48-13-116(c))
EFFECTIVE DATE: January 1, 2013 for services regularly billed on a monthly basis.
* For purposes of the phase-out, “energy” means natural or artificial gas, oil, gasoline, electricity, solid fuel, wood, waste, ice, steam, water, and other materials necessary and integral for heat, light, power, refrigeration, climate control, processing, or any other use in any phase of the manufacture of tangible personal property.
“Energy” does not include energy purchased by a manufacturer that is primarily engaged in producing electricity for resale. (O.C.G.A. Sec. 48-8-3.2(a)(2))
Source: CCH Weekly. State Tax Guide,[¶60-510],Georgia, Manufacturing, Processing, Assembling, or Refining. April 30, 2013.
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