In Georgia, Act 684 is phased in beginning in the year 2000.

The act declares an exemption for replacement or repair parts for manufacturing machinery. The amended regulation defines “replacement or repair parts” as including machinery, molds, clothing, dies and tooling used on existing machinery that is directly involved in manufacturing tangible personal property at an existing manufacturing plant. Parts that are to qualify must restore the machinery to its original condition and must be separately defined. Spare parts purchased with machinery incorporated into a new plant are not considered replacement or repair parts. The exemption applies to the portion of an item’s sales price or value as follows: 20% for calendar year 2001; 40% for calendar year 2002; 60% for calendar year 2003; 80% for calendar year 2004; and 100% thereafter. Suppliers must collect the total tax on sales of repair or replacement parts unless a Certificate of Exemption is presented. (Form ST-5M)

Posted on January 15, 2000