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Georgia Ruling for Manufacturing Repair and Replacement Parts Exemption Reversed


Manufacturing

A 2007 Georgia Court of Appeals ruling, Owens Corning v. Ga. Dept. of Revenue, 285 Ga. App. 158 (645 SE2d 644) (2007), was reversed by the Georgia Supreme Court, April 21, 2008. The ruling had entitled a taxpayer to a sales tax refund on purchases of manufacturing machinery repair and replacement parts under the 1997 version of the exemption statute because it unambiguously stated that such sales were exempt from tax. In reversing the ruling, the court held that the language in the 1997 version of the statute that exempted machinery and “components thereof” created ambiguity as to whether machinery repair and replacement parts were also exempt. The court also stated that the legislative intent behind the 2000 amendment of the statute made it clear that no exemption for manufacturing machinery repair and replacement parts existed under the 1997 version of the statute. (Georgia Department of Revenue v. Owens Corning, Supreme Court of Georgia, No. S07G1297, 2008 Ga. LEXIS 356, April 21, 2008)

(09/05/2008)
(Archived)
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