Ga. Comp. R. & Regs. R. 560-12-2-.105 - Machinery-Remanufacturing of Aircraft Engines or Aircraft Engine Parts or Components
(1)
Definitions. For purposes of qualifying for the exemptions
provided for by O.C.G.A. §
48-8-3(34.2), and as
used in this Regulation, the following definitions and explanations of terms
shall apply:
(a) The term "machinery" means
an assemblage of parts that transmits forces, motion, and energy one to another
in a predetermined manner to accomplish a specific objective.
(b) The term "packaging operation" means
bagging, boxing, crating, packaging, wrapping, labeling, palletizing, and other
similar processes used by the remanufacturer to enclose or containerize
remanufactured products in a manner suitable for sale or delivery to
customers.
(c) The term
"remanufacture of aircraft engines or aircraft engine parts or components"
means the substantial overhauling or rebuilding of aircraft engines or aircraft
engine parts or components on a factory basis. Substantial overhauling or
rebuilding of aircraft engines or aircraft engine parts or components means the
disassembling, repairing, renovating, reassembling, reconstructing, inspecting,
or testing, thereby restoring the aircraft engine or aircraft engine parts or
components to their original state or an upgraded state. Such term includes a
packaging operation when it is a part of a continuous remanufacturing
operation; and the conveyance of work in process or finished units from one
remanufacturing operation to another in the same plant facility. Such term does
not include: storage; delivery to or from the plant; delivery to or from
storage within the plant; repairing or maintenance of facilities; research;
developmental testing; random or sample testing of materials or products; or
cleaning when not part of a continuous remanufacturing operation.
(2)
General Requirements for
the Remanufacturing Machinery Exemption. In order to qualify for the
remanufacturing machinery exemption provided for in O.C.G.A. §
48-8-3(34.2), the
property being purchased or leased must have the character of machinery at the
time of the sale or lease, or consist of components which, when assembled, will
have the character of machinery; the machinery must be used in the
remanufacture of aircraft engines or aircraft engine parts or components; the
machinery must be used directly in the remanufacturing operation; and the
appropriate Certificate of Exemption under this Regulation must be obtained or
provided. The exemption is not applicable to machinery used indirectly in the
remanufacturing operation, or to auxiliary equipment and appurtenances or to
materials or items to be incorporated into real estate construction. The
Commissioner may allow an Application for Certificate of Exemption required by
this Regulation to be filed subsequent to the purchase or lease of the
machinery.
(3)
New and
Existing Remanufacturing Plants.
(a)
Any person making a sale or lease of machinery which is used directly in the
remanufacture of aircraft engines or aircraft engine parts or components and
which is incorporated for the first time into a new remanufacturing plant
located in this State shall collect the tax imposed thereon by O.C.G.A.
§§
48-8-1, et seq., as amended, unless the purchaser or lessee furnishes
the vendor with a certificate issued by the Commissioner certifying that the
purchaser or lessee is entitled to purchase or lease such machinery without
paying the tax.
(b) Any person
making a sale or lease or machinery which is used directly in the remanufacture
of aircraft engines or aircraft engine parts or components and which is
incorporated, as additional machinery, for the first time into a
remanufacturing plant presently existing in this State, or which is purchased
or leased to replace machinery in a remanufacturing plant presently existing in
this State, shall collect the tax imposed thereon by the O.C.G.A. §§
48-8-1, et seq., as amended, unless the purchaser or lessee furnishes
the vendor with a properly completed Certificate of Exemption (Form
ST-5).
(c) Any purchaser or lessee
of machinery which is used directly in the remanufacture of aircraft engines or
aircraft engine parts or components and incorporated for the first time into a
new remanufacturing plant located in this State who desires to secure the
benefit of the exemption provided by O.C.G.A. §
48-8-3(34.2) shall
file an Application for Certificate of Exemption (Form STAERl) with the
Commissioner, which shall include a schedule of machinery to be purchased or
leased, a full description of the usage of the machinery in the remanufacturing
operation, and the cost of each item of machinery In addition thereto, the
Commissioner may require such other information as deemed necessary for the
determination of the claim for exemption. These requirements are applicable to
all purchasers and lessees, including holders of direct pay permits under
Regulation
560-12-1-.16.
(d) Upon approval of an application for the
first time into a new remanufacturing plant, the Commissioner will issue a
Certificate of Exemption for Remanufacturing Machinery (Form ST-AER2) for
presentation by the purchaser or lessee to the machinery suppliers, whereupon
the purchaser or lessee shall be relieved from payment of the tax and the
machinery suppliers shall be relieved from collection of the tax.
(4)
Specific
Applications.
(a) When an otherwise
exempt piece of machinery has multiple or interchangeable molds, dies, chucks,
bits, or other tooling, only one such item per position on the machine will be
recognized as an exempt component of an exempt machine.
(b) Additional items which may qualify for
the exemption include, but are not limited to, electrical components, including
transformers, between the motor control center and exempt machinery and between
exempt machinery; process piping, exclusive of hangers and supports, between
exempt machinery; computer hardware and software which control exempt
machinery; compressors that power exempt machinery; boilers which produce steam
to be used by exempt machinery; and testing or monitoring machinery which is
part of the continuous remanufacturing operation and which tests or monitors
all of the materials or work in process, provided that, machinery used in
random or sample testing cannot qualify for the exemption.
(c) Examples of some common items that do not
qualify for the exemption include, but are not limited to, foundations,
supports, catwalks, hand tools, items used for protection or safety, and parts
used in the repair, refurnishing, or reconditioning of machinery.
Notes
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