Ga. Comp. R. & Regs. R. 560-12-2-.103 - Material Handling Equipment and Racking Systems
(1) For purposes of qualifying for the
exemption provided for by O.C.G.A. §
48-8-3(34.1), and as
used in this Regulation, the following definitions and explanations of terms
shall apply:
(a) The term "distribution
facility" means a warehouse, facility, structure, or enclosed area which is
used primarily for the storage, shipment, preparation for shipment, or any
combination of such activities, of goods, wares, merchandise, raw materials, or
other tangible personal property.
(b) The term "primary material handling
equipment" means the principal machinery and equipment used to lift or move
tangible personal property in a warehouse or distribution facility located in
this State. Depending upon whether or not it is the principal machinery and
equipment used to lift or move tangible personal property, the following items
may be considered primary material handling equipment:
1. conveyers, carousels, lifts, positioners,
pick-up-and-place units, cranes, hoists, mechanical arms, and robots;
2. mechanized systems, including containers
which are an integral part thereof, whose purpose is to lift or move tangible
personal property;
3. automated
storage and retrieval systems, including computers which control them, whose
purpose is to lift or move tangible personal property; and
4. forklifts and other off-the-road vehicles
which are used to lift or move tangible personal property and which cannot be
legally operated on roads and streets.
(c) The term "primary material handling
equipment" does not include parts or equipment used to repair, refurbish, or
recondition other equipment, but does include equipment, as defined above,
which replaces in its entirety other primary material handling
equipment.
(d) The term "racking
system" means any system of machinery, equipment, fixtures, or portable devices
whose function is to store, organize, or move tangible personal property within
a warehouse or distribution facility, including, but not limited to, conveying
systems, chutes, shelves, racks, bins, drawers, pallets, and other containers
and storage devices which form a necessary part of the facility's storage
system.
(e) The term "warehouse"
means a facility, structure, or enclosed area which is used primarily for the
storage of goods, wares, merchandise, raw materials, or other tangible personal
property.
(2) For
purposes of qualifying for the exemption provided for by O.C.G.A. §
48-8-3(34.1), the
following general requirements shall apply:
(a) Except as otherwise provided in this
Regulation, effective for deliveries which occur on or after July 1, 1994, the
tax does not apply to sales of primary material handling equipment used
directly for the handling or movement of tangible personal property in a
warehouse or distribution facility located in this State, when the following
conditions are met:
1. the equipment is part
of an expansion of an existing warehouse or distribution facility or part of
the construction of a new warehouse or distribution facility in this
State;
2. the total value of all
real and personal property purchased or acquired by the taxpayer for use in the
expansion or new construction of the warehouse or distribution facility is
worth 10 million dollars or more (See paragraph (4)). Purchases made over a
period of time, even though made in anticipation of an expansion, without
definite plans will not be considered an expansion of an existing warehouse or
distribution facility; and
3. the
purchaser has obtained a Certificate of Exemption as provided in subparagraph
(c) of this Regulation.
(b) Except as otherwise provided for in this
Regulation, effective for deliveries occurring on or after July 1, 1995, the
tax does not apply to sales of racking systems used for the conveyance and
storage of tangible personal property in a warehouse or distribution facility
located in this State, when the following conditions are met:
1. the equipment is part of an expansion of
an existing warehouse or distribution facility in this State or part of the
construction of a new warehouse or distribution facility in this
State;
2. the total value of all
real and personal property purchased or acquired by the taxpayer for use in the
expansion or new construction of the warehouse or distribution facility is
worth 10 million dollars or more (See paragraph(4)). Purchases made over a
period of time, even though made in anticipation of an expansion, without
definite plans will not be considered an expansion of an existing warehouse or
distribution facility; and
3. the
purchaser has obtained a Certificate of Exemption as provided in subparagraph
(c) of this Regulation.
(c) To obtain such Certificate of Exemption,
the purchaser or lessee must submit an Application for Certificate of Exemption
(Form ST-WD1). The application shall include a schedule of equipment to be
purchased or leased, a full description of the usage of the equipment, and the
cost of each piece of equipment. The Commissioner may require the purchaser or
lessee to furnish such additional information as deemed necessary to determine
whether the requirements and qualifications for the exemption are
met.
(3) Effective July
1, 1995, in order to qualify for the exemption provided for by O.C.G.A. §
48-8-3(34.1), a
warehouse or distribution facility must not make retail sales from such family
to the general public which equal or exceed 15% of the total revenue of the
warehouse or distribution facility. A taxpayer who has qualified for the
exemption provided for by O.C.G.A. §
48-8-3(34.1), or
obtained a Certificate of Exemption therefor, shall be disqualified from
receiving such exemption as of the date the taxpayer's warehouse or
distribution facility makes retail sales to the general public equal to or
greater than 15% of the total revenues of the warehouse or distribution
facility. In the event that a taxpayer has obtained the benefit of the
exemption contained in O.C.G.A. §
48-8-3(34.1) at a time
when the warehouse or distribution facility made retail sales to the general
public which equaled or exceeded 15% of the total revenues of the warehouse or
distribution facility, the taxpayer may be required to repay any tax benefits
received under said Code section or under this Regulation on and after the date
such taxpayer became disqualified from receiving such exemption, and to pay
penalty and interest at the rates provided for by law on such tax
amounts.
(4) Effective January 1,
1997, the total value of all real and personal property purchased or acquired
by the taxpayer for use in the expansion or new construction of the warehouse
or distribution facility must be worth 5 million dollars or more. Purchases
made over a period of time, even though made in anticipation of an expansion,
without definite plans will not be considered an expansion of an existing
warehouse or distribution facility.
Notes
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