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November 2012

Georgia’s New Regulation on Energy Exemption-Better than expected!!

By | Sales Tax, Uncategorized

The Georgia Department of Revenue has published revisions to Rule 560-12-2-.64 to explain interpretation of the new statute that exempts energy used by manufacturers.

In this rule, the DOR explains that the energy exemption applies energy use “for any purpose at a manufacturing plant” including:

1. machinery operations
2. create conditions necessary for the manufacture of property
3. Perform an actual part of the manufacture for personal property
4. administrative or other ancillary activities that are located at the manufacturing plant
5. Is related to operations that convey, transport, handle or store raw materials or finished goods
6. for heating, cooling, ventilation, illumination, fire safety, and other comfort and convenience purposes.

This includes electricity, water, natural gas, propane, heating oil, wood, and others forms of fuel

This exemption is phased in over a 4 year period of time beginning January 1, 2013.

https://www.salestaxstrategies.com/index.html

Ned Lenhart,CPA
President