Bill Text: GA HB178 | 2011-2012 | Regular Session | Introduced

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Bill Title: Revenue and tax; prepaid state and local consumables; change multiple provisions

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-02-09 - House Second Readers [HB178 Detail]

Download: Georgia-2011-HB178-Introduced.html

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11 LC 18 9336

House Bill 178

By: Representative Sims of the 169th

A BILL TO BE ENTITLED
AN ACT

To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, so as to provide for prepaid state and local consumables taxes; to change certain provisions regarding definitions; to repeal the sales and use tax exemption regarding food and food ingredients; to change certain provisions regarding applicability and exemptions with respect to sales and use taxes on alcoholic beverages, tobacco or tobacco products, or food and food ingredients; to change certain provisions regarding dealers' sales and use tax returns; to provide for procedures, conditions, and limitations; to change certain provisions regarding penalties; to provide 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 regarding sales and use taxes, by adding new paragraphs to read as follows:

"(22.1) 'Prepaid local consumables tax' means any local sales and use tax which is levied on the sale or use of alcoholic beverages, tobacco and tobacco products, or food and food ingredients 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, 2A, 3, or 4 of this chapter. The person collecting and reporting the prepaid local consumables tax for the local jurisdiction shall provide a schedule as to which jurisdiction these collections relate. This determination shall be based upon the shipping papers of the conveyance that delivered the alcoholic beverages, tobacco and tobacco products, or food and food ingredients 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."

"(23.1) 'Prepaid state consumables tax' means the tax levied under Code Section 48-8-30 on the retail sale of alcoholic beverages, tobacco and tobacco products, or food and food ingredients collected prior to that retail sale."

SECTION 2.

Said title is further amended in Code Section 48-8-3, relating to exemptions from sales and use tax, by revising paragraph (57) as follows:

"(57)(A) The sale of food and food ingredients, to the extent provided in subparagraph (B) of this paragraph.

(B) For the purposes of this paragraph, 'food and food ingredients' shall not include prepared food, alcoholic beverages, or tobacco.

(C)(i) The exemption provided for in this paragraph shall not apply to any local sales and use tax levied or imposed at any time.

(ii) 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'; by or pursuant to any article of this chapter.

(D) The commissioner shall adopt rules and regulations to carry out the provisions of this paragraph Reserved;"

SECTION 3.

Said title is further amended in Code Section 48-8-30, relating to imposition of sales and use taxes, by adding new subsections to read as follows:

"(l) In the event any seller purchases any alcoholic beverages, tobacco and tobacco products, or food and food ingredients on which the prepaid state consumables tax or prepaid local consumables tax or both have been imposed pursuant to this Code section 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 state consumables tax or prepaid local consumables tax or both rates for which such governmental entity is exempt. To be eligible for the credit or refund, the seller shall reduce the amount such seller charges for the consumables sold to such governmental entity by an amount equal to the tax from which such governmental entity is exempt. Should a seller have a liability under this Code section, the seller may elect to take a credit for those sales against such liability.

(m) The prepaid state and local consumables taxes shall be imposed at the time a distributor ships consumables to a seller.

(n) The distributor shall remit on a separate schedule the prepaid state consumables 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 and shall be at the same rate as provided under Code Section 48-8-30."

SECTION 4.

Said title is further amended by revising Code Section 48-8-82, relating to imposition of the joint county and municipal sales and use tax, as follows:

"48-8-82.

When the imposition of a joint county and municipal sales and use tax is authorized according to the procedures provided in this article within a special district, the county whose geographical boundary is conterminous with that of the special district and each qualified municipality located wholly or partially within the special district shall levy a joint sales and use tax at the rate of 1 percent. Except as to rate, the joint tax shall correspond to the tax imposed and administered by Article 1 of this chapter. No item or transaction which is not subject to taxation by Article 1 of this chapter shall be subject to the tax levied pursuant to this article, except that the joint tax provided in this article shall be applicable to sales of motor fuels as prepaid local tax as that term is defined in Code Section 48-8-2 and shall be applicable to the sale of food and food ingredients and alcoholic beverages only to the extent provided for in paragraph (57) of Code Section 48-8-3."

SECTION 5.

Said title is further amended by revising subsection (b) of Code Section 48-8-102, relating to the imposition of the homestead option sales and use tax, as follows:

"(b) When the imposition of a local sales and use tax is authorized according to the procedures provided in this article within a special district, the county whose geographical boundary is conterminous with that of the special district shall levy a local sales and use tax at the rate of 1 percent. Except as to rate, the local sales and use tax shall correspond to the tax imposed and administered by Article 1 of this chapter. No item or transaction which is not subject to taxation by Article 1 of this chapter shall be subject to the sales and use tax levied pursuant to this article, except that the sales and use tax provided in this article shall be applicable to sales of motor fuels as prepaid local tax as that term is defined in Code Section 48-8-2 and shall be applicable to the sale of food and food ingredients and alcoholic beverages only to the extent provided for in paragraph (57) of Code Section 48-8-3."

SECTION 6.

Said title is further amended by revising subsection (c) of Code Section 48-8-110.1, relating to imposition of the county special purpose local option sales and use tax, as follows:

"(c) Any tax imposed under this part shall be at the rate of 1 percent. Except as to rate, a tax imposed under this part shall correspond to the tax imposed by Article 1 of this chapter. No item or transaction which is not subject to taxation under Article 1 of this chapter shall be subject to a tax imposed under this part, except that a tax imposed under this part shall apply to sales of motor fuels as prepaid local tax as that term is defined in Code Section 48-8-2 and shall be applicable to the sale of food and food ingredients and alcoholic beverages as provided for in Code Section 48-8-3."

SECTION 7.

This Act shall become effective on July 1, 2011.

SECTION 8.

All laws and parts of laws in conflict with this Act are repealed.