(a) Beginning July 1, 2007, sales of natural gas and electricity to a manufacturer for use directly in the manufacturing process will be taxed as follows:

1. (1) From July 1, 2007, through June 30, 2008, the state tax rate will be four and five-tenths percent (4.5%); and
2. (2) Beginning July 1, 2008, and continuing thereafter, the state tax rate will be four percent (4%).

(c)

1. (1) Although Acts 2007, No. 185, reduced the state tax rate on natural gas and electricity used directly in manufacturing, Act 185 did not affect the local tax rate on natural gas and electricity used in manufacturing.
2. (2) The collection of local tax on sales of natural gas and electricity for all purposes should continue at the rate levied by the local government.