By Jamie Gardner
On Monday morning Georgia Power spokesperson Mark Williams and Georgia Power Corporate Tax Manager Lisa Maguire met at The News-Banner, along with County Manager Lee Lewis and Georgia Power (local) Manager Harold Mobley, to bring to light a situation that will have a huge impact on tax revenues for the entire county including education and municipalities.
Community must reimburse Georgia Power $1.7 million
Maguire explained that in 2001 the state of Georgia changed its sales tax law to exempt spare parts for equipment and also explained that the change was phased in over a number of years. Shortly after 2001 Georgia Power hired consultants and they worked with the power company and the Georgia Department of Revenue (DOR) to begin phasing in the tax exemption. In 2007 Appling County returned approximately $730,000.00 in sales and use tax to Georgia Power as a result of the exemption that was previously collected for the years 2002 – 2004. In other words the company mistakenly paid sales tax on spare parts even though the company was exempt from paying the tax on the parts.
Recently the company submitted a request to the DOR for tax years 2005 – 2008 for a refund on the same exemption and the DOR approved the request after performing an audit. This time the county will be responsible for refunding $1.7 million to Georgia Power. The DOR approved the refund in late 2012.
Lewis explained that since this deals with sales tax the refund would come from future collections of Local Option Sales Tax, Special Purpose Local Option Sales Tax and Education Special Purpose Local Option Sales Tax. Appling County will be responsible for approximately $1 million of the refund, the Appling County Board of Education will be responsible for approximately $600,000.00 and the remaining refund amount will come from City of Baxley, City of Graham and the City of Surrency future collections.
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Recently the company submitted a request to the DOR for tax years 2005 – 2008 for a refund on the same exemption and the DOR approved the request after performing an audit. This time the county will be responsible for refunding $1.7 million to Georgia Power. The DOR approved the refund in late 2012.
Lewis explained that since this deals with sales tax the refund would come from future collections of Local Option Sales Tax, Special Purpose Local Option Sales Tax and Education Special Purpose Local Option Sales Tax. Appling County will be responsible for approximately $1 million of the refund, the Appling County Board of Education will be responsible for approximately $600,000.00 and the remaining refund amount will come from City of Baxley, City of Graham and the City of Surrency future collections.
For the complete story pick up your copy of The Baxley News-Banner on newsstands today or CLICK HERE to Subscribe.
If I remember correctly one of the selling points of the Local Option Sales Tax was that it could not be use for anything else but the schools and country projects.
I WILL remember this when it comes up for a vote again.
BTW The local EMCs gets some electricity from Ga Power so you do use it.
https://en.wikipedia.org/wiki/ Oglethorpe_Power
And as a note I pay a fee each month on my phone that goes towards the use of 911, so any electricity I might use, as I don't require the services of the EMCs each month, has been prepaid.
But every single person in Appling County IS being required to pay an unfair fine at no fault of their own and it's not right and it's not fair.