House Bill 272

Committee Chair: Larry O’Neal

Committee:Ways & Means

House Sponsor: Jeff Lewis

Chairman O’Neal’s opinion of the legislation:

HB 272 provides that as energy prices for manufacturers increase over present prices, that manufacturers in this state will be exempt from sales tax on the increase in the energy prices.  The types of energy sources included in this are natural or artificial gas, No. 2 fuel, No. 6 fuel oil, propane, and coal that are used directly or indirectly in the manufacture or processing of tangible personal property.  The bill includes the current prices for each of these energy/fuel types.  This exemption will be for the period commencing July 1, 2008 and concluding on December 31, 2010, and this exemption will not apply to any local sales taxes.

This bill will help our manufacturers to better predict their costs and to be protected against extraordinary spikes in energy prices, and hopefully retain jobs in Georgia.

This Legislation:

•        Reduces the Size of Government by reducing the windfall tax revenue collections that heretofore have traditionally precipitated growth in government.

•        Strengthens our Traditional Family Structure by keep jobs in Georgia for Georgians.

•        Reduces the Tax Burden on our Citizens by reducing the tax burden on our manufacturers as energy prices rise, provide unprecedented budgeting stability and predictability in the business cycle, and should stimulate more affordability for consumers of goods manufactured in Georgia.

This bill passed the House under the Structured Rule. 

Further Action

The Senate added petroleum coke at the same price as coal. The House agreed to the Senate Substitute.