Sales & Use Tax Exemptions

Qualified agricultural producers and manufacturers may be eligible for an exemption from sales and use tax as a result of House Bill (HB) 386.

Sales Tax Exemption for Energy Used in Manufacturing and Agriculture

In April 2012, Governor Nathan Deal signed House Bill (HB) 386 into law which provides manufacturers and qualified agricultural producers an exemption from paying sales tax on energy, e.g. electricity and natural gas. If a qualified agricultural producer or manufacturer completes the exemption process, their exemption will begin on their next billing statement after we receive their certificate.

Agricultural producers

The 100% sales tax exemption is immediate.

The Agricultural producer exemption applies to state sales tax and local taxes INCLUDING taxes paid for educational and transportation purposes (ELOST and TSPLOST), AND excise taxes if adopted by counties or municipalities. 

Agricultural producers seeking the exemption should:

  1. Apply to the Commissioner of Agriculture for a tax exemption certificate (GATE certificate). 
  2. Upon receipt of the GATE exemption certificate from the Commissioner of Agriculture, send to Georgia Power a copy of the tax exemption certificate along with the GATE Addendum which includes account numbers, service addresses and meter numbers to which the exemption applies.

Manufacturers

The manufacturer’s exemption is phased in over a four year period:

  • 2013 – 25%
  • 2014 – 50%
  • 2015 – 75%
  • 2016 – 100%

The exemption applies to state and local sales taxes with an exception for taxes paid for educational purposes (ELOST).  Manufacturers ARE NOT exempt from paying ELOST taxes.

Energy used in manufacturing is immediately exempt from taxes paid for transportation purposes (TSPLOST).

If an excise tax is adopted by the county or municipality of the facility’s location, the appropriate excise tax will be collected by Georgia Power.  It will be phased in at the same rate as the sales tax exemption.  Manufacturers ARE NOT exempt from paying county or municipal excise taxes.

  1. Complete a certification of exemption (ST-5M form and the ST-5M addendum) available on the Georgia Department of Revenue’s website. The addendum will ask for the service addresses and account numbers you have certified that qualify for the exemption.
  2. Send both the ST-5M form and the ST-5M addendum to Georgia Power via the contact information listed below. Please note that the appropriate excise tax, if adopted by the county or city of your facility, will be collected.

Please note that this new law replaces and updates all prior sales tax exemptions for manufacturers and agricultural producers. All customers that qualify, regardless of whether you also hold a “Direct Pay Permit”, must provide a Sales and Use Tax Certificate of Exemption Form (ST-5M and ST-5M addendum) or GATE certificate to Georgia Power so we can update your account to reflect your correct sales and use tax status. All exemption documents may be submitted via an e-mailed PDF, mail or fax to:

E-mail: HB386@southernco.com (preferred method)             

Fax: 404-506-6632

Mail: Georgia Power Company                           
         241 Ralph McGill Blvd
         HB 386 Exemption
         Bin #10120
         Atlanta, GA 30308

Agricultural producers and manufacturers interested in the exemption should contact the Georgia Department of Agriculture at 1-(855)-FARM TAX or 1-(855) 327-6829, the Georgia Department of Revenue at 1-877-423-6711 or their tax advisor to determine whether they are eligible for a tax exemption. The process outlined above is based on proposed regulations published by the Department of Revenue and could change once final rules are approved.

Sales and Use Tax Forms

Georgia Agricultural Tax Exempt Certificate - GATE Certificate

Certificate of Exemption for Manufacturers  - ST-5M Form

Addendum for Metered Energy Sold - ST-5M Addendum

Tax Exemption Guidelines

State & Government Agencies

  • Direct Payer to the State
  • Permit allows them to pay the State directly
  • Must still pay the 3 % Second Motor Fuel Tax
  • They are not exempt from the state tax but pay it to the State instead of thru GPC
  • State Form ST-5 is required

 

Federal & State Governmental Agencies

  • County, municipalities, and local agencies
  • City, State or County sponsored housing authorities
  • Public schools
  • State Form ST-5 is required
  • Energy Sales Tax Exemption (HB386)