SB410: SB410 State Sales and Use Taxes; the data center equipment sales and use tax exemption; repeal

26 LC 59 0402S (SCS) Senate Bill 410 By: Senators Brass of the 6th, Anavitarte of the 31st, Hufstetler of the 52nd, Albers of the 56th, Walker III of the 20th and others AS PASSED SENATE A BILL TO BE ENTITLED AN ACT To amend Chapter 2 of Title 46 and Chapter 8 of Title 48 of the Official Code of Georgia1 Annotated, relating to the Public Service Commission and sales and use taxes, respectively,2 so as to require certain contract terms and conditions between electric utilities and large load3 customers; to repeal the high-technology computer equipment and data center equipment4 sales and use tax exemptions; to allow for the continued use of certificates of exemption5 issued prior to the date of repeal; to provide for legislative intent; to provide for a definition;6 to provide for related matters; to provide for an effective date; to repeal conflicting laws; and7 for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 PART I10 SECTION 1-1.11 It is the intent of the General Assembly that the marginal costs of providing electric service12 to new large-load customers will be borne by such customers and not residential or retail13 electricity customers.14 S. B. 410 - 1 - 26 LC 59 0402S (SCS) SECTION 1-2.15 Chapter 2 of Title 46 of the Official Code of Georgia Annotated , relating to the Public16 Service Commission, is amended by adding a new Code section to read as follows:17 "46-2-25.4.18 (a) As used in this Code section, the term 'large load customer' means customers with an19 expected total peak demand of 100 megawatts or greater at one or more premises located20 on one tract or contiguous tracts of land.21 (b) Each contract between an electric utility and a large load customer for the provision22 of electric service, entered into on or after the effective date of this Act, shall include terms23 and conditions designed to protect residential and retail elect ricity customers from costs24 associated with serving new large load customers, including, bu t not limited to, the25 following:26 (1) Minimum billing requirements designed to recover incremental costs associated with27 serving or preparing to serve a large load customer;28 (2) A contract term that may exceed the length of the applicable service tariff;29 (3) Performance and credit provisions designed to protect retail customers in the event30 of contract default; and31 (4) Termination provisions designed to protect retail customer s in the event of32 termination of the contract for electric service."33 PART II34 SECTION 2-1.35 Chapter 8 of Title 48 of the Official Code of Georgia Annotated , relating to sales and use36 taxes, is amended by repealing paragraphs (68) and (68.1) of Code Section 48-8-3, relating37 to exemptions relative to state sales and use taxes, and enacting new paragraphs to read as38 follows:39 S. B. 410 - 2 - 26 LC 59 0402S (SCS) "(68) After the effective date of this Act, no new certificates of exemption from sales and40 use tax to a high-technology company shall be issued pursuant to the former provisions41 of this paragraph as they existed prior to the effective date of this Act; provided, however,42 that any certificate of exemption issued prior to the effective date of this Act shall43 continue to be governed by the provisions of this paragraph as it existed immediately44 prior to the effective date of this Act;45 (68.1) After the effective date of this Act, no new certificates of exemption from sales46 and use tax to a high-technology data center or a high-technology data center customer47 shall be issued pursuant to the former provisions of this paragraph as they existed prior48 to the effective date of this Act; provided, however, that any certificate of exemption49 issued prior to the effective date of this Act shall continue t o be governed by the50 provisions of this paragraph as it existed immediately prior to the effective date of this51 Act;"52 PART III53 SECTION 3-1.54 This Act shall become effective upon its approval by the Governor or upon its becoming law55 without such approval.56 SECTION 3-2.57 All laws and parts of laws in conflict with this Act are repealed.58 S. B. 410 - 3 -