Georgia – Proposed Amendments to Manufacturing and Packaging Regulations

SALT Report 1792 – The Georgia Department of Revenue released a list of sales and use tax regulations regarding manufacturing and shipping that they propose to amend or revoke.

Proposed Amendments

Regulation §560-12-2-.25 Containers

The amendment would expand the list of packaging items that are excluded from sales and use tax.

Pallets have been added to the list of returnable containers that will be taxable.

Regulation §560-12-2-.32 Electricity, Steam, Gas, and Fuels

The amendment adds electricity, mandatory service charges, and deposits to the list of taxable items, unless a specific exemption applies.

Water, when delivered to consumers through water mains, lines or pipes, will be exempt from tax.

Regulation §560-12-2-.62 Manufacturing Machinery and Equipment

The amendment adds industrial materials and packaging supplies to the title

Adds an exemption for industrial materials

Adds energy to the list of consumable supplies

Adds an exemption for packaging supplies used in manufacturing

Provides an exemption for lease payments for machinery and equipment

Regulation §560-12-2-.64 Manufacturers

The title will be changed to Energy Necessary and Integral to Manufacturing

Expands the list of exemptions

Proposed Revocations

Regulation §560-12-2-.21 Chemicals

If repealed, the sale of chemicals would no longer be taxable.

Regulation §560-12-2-.35 Equipment, Tools and Supplies

If repealed, the sale of equipment, tools, and supplies would no longer be taxable.

Regulation §560-12-2-.48 Gases

If repealed, the sale of certain gasses would no longer be taxable.

Regulation §560-12-2-.56 Labels, Tags and Name Plates

If repealed, labels, tags, and name plates would be taxable.

Interested parties are asked to submit comments regarding the proposed amendments and revocations to the Department by November 14, 2012.

For Further Information:

Georgia Department of Revenue – Notice SUT 2012-010