Georgia Broadens Manufacturing Exemption

On July 1, 2014, Georgia will put into effect a broader scope of items included in the manufacturing exemption for sales and use tax.  House Bill 900 was signed into effect by Governor Deal on April 24, 2014, a copy of which can be found here.

What It Entails
Consumable supplies are defined in this bill as tangible personal property other than machinery and industrial materials that are consumed or expended during the manufacture of tangible personal property.  The term includes certain water treatment chemicals but excludes packaging supplies and energy.  Be sure to reference the wording in the bill to verify that your supplies are covered.

What This Means to Firms Taxable in Georgia
If you are a manufacturing business in Georgia, congratulations, you just reduced your tax bill.  Sales tax or consumer’s use tax will no longer be owed as of July 1, 2014 on products meeting the definition of consumable supplies.  As with all new tax enactments, it is important to ensure you touch base with your vendors of consumable supplies to be sure they have an exemption certificate from you on file and that they don’t bill you for tax on products meeting Georgia’s definition of consumable supplies.  

How Can We Help? 
Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of multi-state and local tax compliance and consulting for large US and global corporations.  We use that experience to your advantage.  Contact us and we can provide a customized cost-effective solution to meet your company’s needs in Georgia or any other state.  For further information on Allyn Tax services, please contact: tax@allynintl.com.