12 LC
36 2046
House
Bill 932
By:
Representatives Williams of the
4th,
Dickson of the
6th,
and Powell of the
29th
A
BILL TO BE ENTITLED
AN ACT
To
amend Code Section 48-8-63 of the Official Code of Georgia Annotated, relating
to the definition of "nonresident subcontractor," payment of tax by contractors
furnishing tangible personal property and services, liability of seller,
withholding of payments due subcontractor, rate, bond, exemption of property
unconsumed in use, property deemed consumed, and property of the state or of the
United States, so as to change the required percentage of withholding payments
due a nonresident subcontractor; to provide for related matters; 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 the
definition of "nonresident subcontractor," payment of tax by contractors
furnishing tangible personal property and services, liability of seller,
withholding of payments due subcontractor, rate, bond, exemption of property
unconsumed in use, property deemed consumed, and property of the state or of the
United States, is amended by revising subsection (e) as follows:
"(e)(1)
Any subcontractor who enters into a construction contract with a general or
prime contractor shall be liable under this article as a general or prime
contractor. Any general or prime contractor who enters into any construction
contract or contracts with any nonresident subcontractor, where the total amount
of such contract or contracts between such general or prime contractor and any
nonresident subcontractors on any given project equals or exceeds
$250,000.00,
shall withhold
up to
4
2
percent of the payments due the nonresident subcontractor in satisfaction of any
sales or use taxes owed this state.
(2)
The prime or general contractor shall withhold payments on all contracts that
meet the criteria specified in paragraph (1) of this subsection until the
nonresident subcontractor furnishes such prime or general contractor with a
certificate issued by the commissioner showing that all sales taxes accruing by
reason of the contract between the nonresident subcontractor and the general or
prime contractor have been paid and satisfied. If the prime or general
contractor for any reason fails to withhold
up to
4
2
percent of the payments due the nonresident subcontractor under their contract,
such prime or general contractor shall become liable for any sales or use taxes
due or owed this state by the nonresident subcontractor."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.