HB1209: HB1209 Sales and use tax; purchases of tangible property and construction materials used for or in the construction and furnishing of certain buildings; provide exemption

26 LC 59 0359S/AP House Bill 1209 (AS PASSED HOUSE AND SENATE) By: Representatives Stephens of the 164th, Blackmon of the 146th, Petrea of the 166th, Gilliard of the 162nd, and Gaines of the 120th A BILL TO BE ENTITLED AN ACT To amend Code Section 48-8-3 of the Official Code of Georgia An notated, relating to1 exemptions relative to state sales and use taxes, so as to prov ide for a sales and use tax2 exemption for purchases of tangible property and construction materials used for or in the3 construction and furnishing of certain buildings; to provide for limitations on the amount of4 credits to be issued; to provide for related matters; to provide for an effective date; to repeal5 conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Code Section 48-8-3 of the Official Code of Georgia Annotated, relating to exemptions9 relative to state sales and use taxes, is amended by striking "or" at the end of paragraph (104),10 by replacing the period at the end of paragraph (105) with "; o r", and by adding a new11 paragraph to read as follows:12 "(105.1)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary,13 the sale or use of tangible property and construction material u s e d f o r o r i n t h e14 construction and furnishing of buildings located at any wharf lot and improvements that15 are located between 1,500 feet and 5,000 feet of a state owned convention or meeting16 H. B. 1209 - 1 - 26 LC 59 0359S/AP facility with between 150,000 square feet and 750,000 square feet of available meeting17 space that is also located on an island in a river that serves as this state's boundary. The18 exemption granted by this paragraph shall not include the sale or use of tangible19 property remaining in the possession of a contractor after completion of construction.20 (B) This exemption shall apply from July 1, 2026, until June 3 0, 2033, or until the21 aggregate sales and use tax refunded pursuant to this paragraph exceeds $7 million,22 whichever occurs first. A qualifying purchaser must pay sales and use tax on all23 purchases and uses of tangible property and construction material and may obtain the24 benefit of this exemption from sales and use tax by filing a claim for refund of tax paid25 on qualifying items. No refunds made pursuant to this paragraph shall include interest."26 SECTION 2.27 This Act shall become effective upon its approval by the Governor or upon its becoming law28 without such approval.29 SECTION 3.30 All laws and parts of laws in conflict with this Act are repealed.31 H. B. 1209 - 2 -