O.C.G.A. § 48-2-15 (2019)
The commissioner shall not issue a certificate of exemption under this paragraph for the calendar year next succeeding the reporting date to any high-technology company that has failed to comply with the reporting required by this subparagraph
(F) The commissioner shall promulgate such rules and regulations as are necessary to implement the provisions of this paragraph.
(G) This paragraph shall stand repealed and reserved by operation of law at the last moment of December 31, 2028;
(68.1) (Repealed effective January 1, 2032.)
(A) For the period commencing on July 1, 2018, and ending on December 31, 2031, high-technology data center equipment to be incorporated or used in a high-technology data center that meets the high-technology data center minimum investment threshold and other conditions provided in this paragraph.
(B) Any person making a sale or lease of high-technology data center equipment shall collect the tax imposed on such sale by this article unless the purchaser furnishes such seller with a certificate issued by the commissioner certifying that such sale or lease is exempted pursuant to this paragraph.
(C)(i) The commissioner shall not issue a certificate of exemption from sales and use tax to a high-technology data center or high-technology data center customer as provided in this paragraph unless the commissioner makes a determination that the high-technology data center will more likely than not meet the high-technology data center minimum investment threshold.
(ii) The commissioner may require any information necessary to determine if such high-technology data center is in compliance with its investment budgeting plan to meet the high-technology data center minimum investment threshold.
(iii)(I) Within 60 days after the end of the seventh year following its exemption start date, a high-technology data center shall file a final report with the commissioner listing the expenditures incurred that count toward its minimum investment threshold, the number of new quality jobs created, and any other information that the commissioner may reasonably require to determine whether the high-technology data center has met the minimum investment threshold.
(II) If the commissioner determines that a high-technology data center failed to meet its high-technology data center minimum investment threshold, such high-technology data center shall be required to repay all taxes exempted or refunded pursuant to its certificate of exemption issued pursuant to this paragraph within 90 days after notification of such failure. Interest shall be due with such repayment at the rate specified in Code Section 48-2-40 computed from the date such taxes would have been due but for this exemption. Such repayment shall be calculated notwithstanding otherwise applicable periods of limitation for assessment of taxes under Code Section 48-2-49.
(iv)(I) As a condition precedent to the issuance of a certificate of exemption, the commissioner, at his or her discretion, may require a good and valid bond with a surety company authorized to do business in this state, in an amount fixed by the commissioner not to exceed $20 million. The commissioner shall consider past performance and in-state investment when determining the value of the bond, if one is required.
(II) The bond that may be required by this division shall be forfeited and paid to the general fund in an amount representing all taxes and interest required to be repaid pursuant to division (iii) of this subparagraph if the hightechnology data center fails to meet the high-technology data center minimum investment threshold prior to the expiration of the seven-year period.
(v) The commissioner shall have the authority to revoke the certificate of exemption at any time he or she believes that the high-technology data center is not likely to meet its hightechnology minimum investment threshold.
(vi) Each high-technology data center that has been issued a certificate of exemption pursuant to this paragraph shall provide a list of high-technology data center customers that are deploying high-technology data center equipment in its facility and shall notify the commissioner within 30 days of any change to the list.
(D)(i) The commissioner shall require annual reporting by the high-technology data center of the amount of taxes exempted under this paragraph, the number of new quality jobs, and the total payroll resulting from construction, maintenance, and operation in and on its facility during the preceding year.
(ii) The commissioner shall issue an annual report to the chairperson of the Senate Finance Committee and the chairperson of the House Committee on Ways and Means concerning the exemption allowed by this paragraph. Notwithstanding the confidentiality provisions of Code Section 48-2-15, such report shall include, for the prior calendar year for each high-technology data center issued a certificate of exemption pursuant to this paragraph, the amount of tax exempted and the number of new quality jobs created by each high-technology data center.
(E) The commissioner shall promulgate such rules and regulations as are necessary to implement the provisions of this paragraph.
(F) A high-technology data center shall not be entitled to claim any credit authorized under Code Sections 48-7-40 through 48-7-40.33 or Code Section 36-62-5.1 on its tax return if it has received a certificate of exemption from the commissioner pursuant to this paragraph. If a determination is made by the commissioner pursuant to division (iii) of subparagraph (C) of this paragraph that the high-technology data center must repay all taxes exempted or refunded pursuant to this paragraph, such high-technology data center may file amended income tax returns claiming any credit to which it would have been entitled under the foregoing Code sections but for having claimed the exemption under this paragraph.
(G) As used in this paragraph, the term:
(i) “Exemption start date” means the date on or after July 1, 2018, chosen by the high-technology data center and indicated on its application filed on or after January 1, 2019, which begins the seven-year period during which the minimum investment threshold must be met. A refund claim must be filed for taxes paid on purchases qualifying for this exemption for any period on or after July 1, 2018, during which the hightechnology data center has not yet applied for and received its certificate of exemption from the commissioner.
(ii) “High-technology data center” means a facility, campus of facilities, or array of interconnected facilities in this state that is developed to power, cool, secure, and connect its own equipment or the computer equipment of high-technology data center customers and that has an investment budget plan which meets the high-technology data center minimum investment threshold.
(iii) “High-technology data center customer” means a client, tenant, licensee, or end user of a high-technology data center that signs at least a 36 month contract for service with the high-technology data center.
(iv) “High-technology data center equipment” means computer equipment as defined in paragraph (68) of this Code section of a high-technology data center or such equipment of a high-technology data center customer to be used or deployed in the high-technology data center; and the materials, components, machinery, hardware, software, or equipment, including, but not limited to, emergency backup generators, air handling units, cooling towers, energy storage or energy efficiency technology, switches, power distribution units, switching gear, peripheral computer devices, routers, batteries, wiring, cabling, or conduit, which equipment or materials are used to:
(I) Create, manage, facilitate, or maintain the physical and digital environments for computer equipment;
(II) Protect the high-technology data center equipment from physical, environmental, or digital threats; or
(III) Generate or provide constant delivery of power, environmental conditioning, air cooling, or telecommunications services for the high-technology data center. Such term shall not include real property as defined in Code Section 48-8-3.2. A high-technology data center may not count high-technology data center equipment that it purchases or that is purchased by the high-technology data center customer and subsequently leased to another party more than once for purposes of satisfying the high-technology data center minimum investment threshold.
(v) “High-technology data center minimum investment threshold” means:
(I) For high-technology data centers located in a county in this state having a population greater than 50,000 according to the United States decennial census of 2010 or any future such census, the creation of 25 new quality jobs and $250 million in aggregate expenditures incurred over any consecutive seven-year period between July 1, 2018, and December 31, 2031, on the design and construction of the high-technology data center and high-technology data center equipment to be used or incorporated in the hightechnology data center;
(II) For high-technology data centers located in a county in this state having a population greater than 30,000 and less than 50,001 according to the United States decennial census of 2010 or any future such census, the creation of ten new quality jobs and $75 million in aggregate expenditures incurred over any consecutive seven-year period between July 1, 2018, and December 31, 2031, on the design and construction of the high-technology data center and hightechnology data center equipment to be used or incorporated in the high-technology data center; and
(III) For high-technology data centers located in a county in this state having a population less than 30,001 according to the United States decennial census of 2010 or any future such census, the creation of five new quality jobs and $25 million in aggregate expenditures incurred over any consecutive seven-year period between July 1, 2018, and De686 cember 31, 2031, on the design and construction of the high-technology data center and high-technology data center equipment to be used or incorporated in the hightechnology data center.
(vi) “New quality jobs” shall have the same meaning as provided in paragraph (2) of subsection (a) of Code Section
(H) This paragraph shall stand repealed by operation of law on January 1, 2032;
(69) The sale of machinery, equipment, and materials incorporated into and used in the construction or operation of a clean room of Class 100 or less in this state, not to include the building or any permanent, nonremovable component of the building that houses such clean room, provided that such clean room is used directly in the manufacture of tangible personal property in this state;
(70)(A) For the purposes of this paragraph, the term “local sales and use tax” shall mean any sales tax, use tax, or local sales and use tax which is levied and imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the “Metropolitan Atlanta Rapid Transit Authority Act of 1965”; by or pursuant to Article 2 of this chapter; by or pursuant to Article 2A of this chapter; by or pursuant to Part 1 of Article 3 of this chapter; or by or pursuant to Part 2 of Article 3 of this chapter.
(B) The sale of natural or artificial gas used directly in the production of electricity which is subsequently sold.
(C) The exemption provided for in subparagraph (B) of this paragraph shall not apply to any local sales and use tax levied or imposed at any time.
(D) The commissioner shall adopt rules and regulations to carry out the provisions of this paragraph;
(70.1)(A) For the period commencing July 1, 2008, and concluding on December 31, 2010, the sale of natural or artificial gas, No. 2 fuel oil, No. 6 fuel oil, propane, petroleum coke, and coal used directly or indirectly in the manufacture or processing, in a manufacturing plant located in this state, of tangible personal property primarily for resale, and the fuel cost recovery component of retail electric rates used directly or indirectly in the manufacture or processing, in a manufacturing plant located in this state, of tangible personal property primarily for resale.
(B) The exemption provided for in subparagraph (A) of this paragraph shall not apply to the first $7.60 per decatherm of the sales price or cost price of natural or artificial gas, the first $2.48 per gallon of the sales price or cost price of No. 2 fuel oil, the first $1.72 per gallon of the sales price or cost price of No. 6 fuel oil, the first $1.44 per gallon of the sales price or cost price of propane, the first $57.90 per ton of petroleum coke, the first $57.90 per ton of coal, or the first 3.44¢ per kilowatt hour of the fuel cost recovery component of retail electricity rates whether such fuel recovery charges are charged separately or are embedded in such electric rates. Dealers with such embedded rates may exempt from the electricity sales upon which the sales tax is calculated no more than the amount, if any, by which the fuel cost recovery charge approved by the Georgia Public Service Commission for transmission customers of electric utilities regulated by the Georgia Public Service Commission exceeds 3.44¢ per kilowatt hour.
(C)(i) For the purposes of this paragraph, the term “local sales and use tax” shall mean any sales tax, use tax, or local sales and use tax which is levied and imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the “Metropolitan Atlanta Rapid Transit Authority Act of 1965”; or by or pursuant to Article 2, 2A, 3, or 4 of this chapter.
(ii) The exemption provided for in subparagraph (A) of this paragraph shall not apply to any local sales and use tax levied or imposed at any time.
(D) Any person making a sale of items qualifying for exemption under subparagraph (A) of this paragraph shall be relieved of the burden of proving such qualification if the person receives in good faith a certificate from the purchaser certifying that the purchase is exempt under this paragraph.
(E) Any person who qualifies for this exemption shall notify and certify to the person making the qualified sale that this exemption is applicable to the sale;
(71) Sales to or by any nonprofit organization which has as its primary purpose the raising of funds for books, materials, and programs for public libraries if such organization qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code;
(72) The sale or use of all mobility enhancing equipment prescribed by a physician;
(73) Reserved;
(74)(A)(i) Except as otherwise provided in divisions (ii) and (iii) of this subparagraph, the sale or use of digital broadcast equipment sold to, leased to, or used by a federally licensed commercial or public radio or television broadcast station, a cable network, or a cable distributor that enables a radio or television station, cable network, or cable distributor to originate and broadcast or transmit or to receive and broadcast or transmit digital signals, including, but not limited to, digital broadcast equipment required by the Federal Communications Commission.
(ii) For commercial or public television broadcasters and cable distributors, such equipment shall be limited to antennas, transmission lines, towers, digital transmitters, studio to transmitter links, digital routing switchers, character generators, Advanced Television Systems Committee video encoders and multiplexers, monitoring facilities, cameras, terminal equipment, tape recorders, and file servers.
(iii) For radio broadcasters, such equipment shall be limited to transmitters, digital audio processors, and diskettes.
(B) As used in this paragraph, the term:
(i) “Digital broadcast equipment” means equipment purchased, leased, or used for the origination or integration of program materials for broadcast over the airwaves or transmission by cable, satellite, or fiber optic line which uses or produces an electronic signal where the signal carries data generated, stored, and processed as strings of binary data. Data transmitted or stored as digital data consists of strings of positive or nonpositive elements of a transmission expressed in strings of 0’s and 1’s which a computer or processor can reconstruct as an electronic signal.
(ii) “Federally licensed commercial or public radio or television broadcast station” means any entity or enterprise, either commercial or noncommercial, which operates under a license granted by the Federal Communications Commission for the purpose of free distribution of audio and video services when the distribution occurs by means of transmission over the public airwaves.
(C) The exemption provided under this paragraph shall not apply to any of the following:
(i) Repair or replacement parts purchased for the equipment described in this paragraph;
(ii) Equipment purchased to replace equipment for which an exemption was previously claimed and taken under this paragraph;
(iii) Any equipment purchased after a television station, cable network, or cable distributor has ceased analog broadcasting, or purchased after November 1, 2004, whichever occurs first; or
(iv) Any equipment purchased after a radio station has ceased analog broadcasting, or purchased after November 1, 2008, whichever occurs first.
(D) Any person making a sale of digital broadcasting equipment to a federally licensed commercial or public radio or television broadcast station, cable network, or cable distributor shall collect the tax imposed on the sale by this article unless the purchaser furnishes a certificate issued by the commissioner certifying that the purchaser is entitled to purchase the equipment without paying the tax;
(75)(A) The sale of eligible property. The exemption provided by this paragraph applies only to sales occurring during the period commencing at 12:01 A.M. on July 30, 2016, and concluding at 12:00 Midnight on July 31, 2016.
(B) As used in this paragraph, the term:
(i) “Clothing” means all human wearing apparel suitable for general use and includes footwear. The term “clothing” excludes belt buckles sold separately; costume masks sold separately; patches and emblems sold separately; sewing equipment and supplies, including but not limited to knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles; sewing materials that become part of clothing, including but not limited to buttons, fabric, lace, thread, yarn, and zippers; and clothing accessories or equipment.
(ii) “Clothing accessories or equipment” means incidental items worn on the person or in conjunction with clothing.
(iii) “Computer” means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions. The term “computer” excludes cellular phones.
(iv) “Computer software” means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.
(v) “Eligible property” means:
(I) Articles of clothing with a sales price of $100.00 or less per item;
(II) Computers, computer components, and prewritten computer software purchased for noncommercial home or personal use with a sales price of $1,000.00 or less per item; and
(III) School supplies, school art supplies, school computer supplies, and school instructional materials purchased for noncommercial use with a sales price of $20.00 or less per item.
(vi) “Prewritten computer software” means computer software, including prewritten upgrades, which is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software. Prewritten computer software includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the specific purchaser. Where a person modifies or enhances computer software of which the person is not the author or creator, the person shall be deemed to be the author or creator only of such person’s modifications or enhancements. Prewritten computer software or a prewritten portion thereof that is modified or enhanced to any degree, where such modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software; provided, however, that, where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for such modification or enhancement, such modification or enhancement shall not constitute prewritten computer software.
(vii) “School art supply” means an item commonly used by a student in a course of study for artwork.
(viii) “School computer supply” means an item commonly used by a student in a course of study in which a computer is used.
(ix) “School instructional material” means written material commonly used by a student in a course of study as a reference and to learn the subject being taught.
(x) “School supply” means an item commonly used by a student in a course of study.
(C) The commissioner shall promulgate any rules and regulations necessary to implement and administer this paragraph including but not be limited to a list of those articles and items qualifying for the exemption pursuant to this paragraph;
(76)(A) The sale or use of tangible personal property used for or in the renovation or expansion of an aquarium located in this state that charges for admission and that is owned or operated by an organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, to the extent provided in this paragraph.
(B) This exemption shall apply from July 1, 2023, until December 31, 2026, or until the aggregate sales and use tax refunded pursuant to this paragraph exceeds $4.5 million, whichever occurs first. A qualifying aquarium must pay sales and use tax on all purchases and uses of tangible personal property and may obtain the benefit of this exemption from sales and use tax by filing a claim for refund of tax paid on qualifying items. All refunds made pursuant to this paragraph will not include interest.
(C) Notwithstanding any provision of Code Section 48-8-63 to the contrary, purchases by a contractor may qualify for the exemption provided for in this paragraph. However, when a contractor purchases qualifying tangible personal property, the contractor shall pay the tax at the time of purchase or at the time of first use in this state; and the ultimate owner of the property may file a claim for refund of the tax paid on the qualifying property.
(D) Items qualifying for exemption include all tangible personal property that will remain at the aquarium facility after completion of construction and all tangible personal property that becomes incorporated into the real property structures of the aquarium facility. The exemption excludes all items that remain tangible personal property in the possession of a contractor after the completion of construction.
(E) Notwithstanding Code Sections 48-2-15, 48-7-60, and 48-7-61, by June 30 each year, any taxpayer seeking to claim the exemption provided for in subparagraph (A) of this paragraph shall electronically submit to the department, at the time of application for the exemption and any such annual renewal, the total number of visitors admitted, the average monthly number of full-time employees, and the total amount of exempt purchases made by the taxpayer in the preceding calendar year. The department shall then issue a report to the chairpersons of the House Committee on Ways and Means and the Senate Finance Committee containing such information;
(77) Reserved;
(78)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary, from May 5, 2004, until September 1, 2011, sales of tangible personal property used in direct connection with the construction of a new symphony hall facility owned or operated by an organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code if the aggregate construction cost of such facility is $200 million or more.
(B) Any person making a sale of tangible personal property for the purpose specified in this paragraph shall collect the tax imposed on this sale unless the purchaser furnishes such person with an exemption determination letter issued by the commissioner certifying that the purchaser is entitled to purchase the tangible personal property without paying the tax;
(79) Reserved;
(80)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary, from May 17, 2004, until December 31, 2007, sales of tangible personal property to, or used in or for the new construction of an eligible corporate attraction.
(B) As used in this paragraph, the term “corporate attraction” means any tourist attraction facility constructed on or after May 17, 2004, dedicated to the history and products of a corporation which costs exceeds $50 million, is greater than 60,000 square feet of space, and has associated facilities, including but not limited to parking decks and landscaping owned by the same owner as the eligible corporate attraction.
(C) Any person making a sale of tangible personal property for the purpose specified in this paragraph shall collect the tax imposed on this sale unless the purchaser furnishes such person with an exemption determination letter issued by the commissioner certifying that the purchaser is entitled to purchase the tangible personal property without paying the tax;
(81) The sale of food and food ingredients to a qualifying airline for service to passengers and crew in the aircraft, whether in flight or on the ground, and the furnishing without charge of food and food ingredients to qualifying airline passengers and crew in the aircraft, whether in flight or on the ground; and for purposes of this paragraph a “qualifying airline” shall mean any person which is authorized by the Federal Aviation Administration or appropriate agency of the United States to operate as an air carrier under an air carrier operating certificate and which provides regularly scheduled flights for the transportation of passengers or cargo for hire. As used in this paragraph, “food and food ingredients” means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. Food and food ingredients shall not include alcoholic beverages or tobacco;
(82)(A) Purchase of Energy Star Qualified Products or WaterSense Products with a sales price of $1,500.00 or less per product purchased for noncommercial home or personal use. The exemption provided by this paragraph shall apply only to sales occurring during the period commencing at 12:01 A.M. on September 30, 2016, and concluding at 12:00 Midnight on October 2, 2016.
(B) As used in this paragraph, the term:
(i) “Energy Star Qualified Product” means any dishwasher, clothes washer, air conditioner, ceiling fan, fluorescent light bulb, dehumidifier, programmable thermostat, refrigerator, door, or window that meets the energy efficient guidelines set by the United States Environmental Protection Agency and the United States Department of Energy and is authorized to carry the Energy Star label.
(ii) “WaterSense Product” means a product authorized to bear the United States Environmental Protection Agency WaterSense label.
(C) The exemption provided for in subparagraph (A) of this paragraph shall not apply to purchases of Energy Star Qualified Products or WaterSense Products purchased for trade, business, or resale.
(D) The commissioner shall promulgate any rules and regulations necessary to implement and administer this paragraph;
(83)(A) The sale or use of biomass material, including pellets or other fuels derived from compressed, chipped, or shredded biomass material, utilized in the production of energy, including without limitation the production of electricity, steam, or the production of electricity and steam, which is subsequently sold.
(B) As used in this paragraph, the term “biomass material” means organic matter, excluding fossil fuels, including agricultural crops, plants, trees, wood, wood wastes and residues, sawmill waste, sawdust, wood chips, bark chips, and forest thinning, harvesting, or clearing residues; wood waste from pallets or other wood demolition debris; peanut shells; pecan shells; cotton plants; corn stalks; and plant matter, including aquatic plants, grasses, stalks, vegetation, and residues, including hulls, shells, or cellulose containing fibers;
(84)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary, from July 1, 2006, until June 30, 2008, sales of tangible personal property used in direct connection with the construction of a national infantry museum and heritage park facility.
(B) As used in this paragraph, the term “national infantry museum and heritage park facility” means a museum and park facility which is constructed after July 1, 2006; is dedicated to the history of the American foot soldier; has more than 130,000 square feet of space; and has associated facilities, including, but not limited to, parking, parade grounds, and memorial areas.
(C) Any person making a sale of tangible personal property for the purpose specified in this paragraph shall collect the tax imposed on this sale unless the purchaser furnishes such person with an exemption determination letter issued by the commissioner certifying that the purchaser is entitled to purchase the tangible personal property without paying the tax;
(85) Reserved;
(86) The sale or use of engines, parts, equipment, and other tangible personal property used in the maintenance or repair of aircraft when such engines, parts, equipment, and other tangible personal property are installed on such aircraft that is being repaired or maintained in this state, so long as such aircraft is not registered in this state;
(87)(A) The sale or use of tangible personal property used for or in the renovation or expansion of a zoological institution to the extent provided in this paragraph.
(B) As used in this paragraph, the term “zoological institution” means a nonprofit wildlife park, terrestrial institution, or facility which:
(i) Is open to the public, charges for admission, exhibits and cares for a collection consisting primarily of animals other than fish, and has received accreditation from the Association of Zoos and Aquariums; and
(ii) Is located in this state and owned or operated by an organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.
(C) This exemption shall apply from July 1, 2023, until December 31, 2026, or until the aggregate sales and use tax refunded pursuant to this paragraph exceeds $800,000.00, whichever occurs first. A qualifying zoological institution shall pay sales and use tax on all purchases and uses of tangible personal property and may obtain the benefit of this exemption from sales and use tax by filing a claim for refund of tax paid on qualifying items. All refunds made pursuant to this paragraph shall not include interest.
(D) Notwithstanding any provision of Code Section 48-8-63 to the contrary, purchases by a contractor may qualify for the exemption provided for in this paragraph. However, when a contractor purchases qualifying tangible personal property, the contractor shall pay the tax at the time of purchase or at the time of first use in this state; and the ultimate owner of the property may file a claim for refund of the tax paid on the qualifying property.
(E) Items qualifying for exemption include all tangible personal property that will remain at the zoological institution after completion of construction and all tangible personal property that becomes incorporated into the real property structures of the zoological institution. This exemption excludes all items that remain tangible personal property in the possession of a contractor after the completion of construction;
(88)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary, from July 1, 2009, until July 30, 2015, sales of tangible personal property to, or used in or for the new construction of, a civil rights museum.
(B) As used in this paragraph, the term “civil rights museum” means a museum which is constructed after July 1, 2009; is owned or operated by an organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code; has more than 40,000 square feet of space; and has associated facilities, including, but not limited to, special event space and retail space.
(C) Any person making a sale of tangible personal property for the purpose specified in this paragraph shall collect the tax imposed on this sale unless the purchaser furnishes such person with an exemption determination letter issued by the commissioner certifying that the purchaser is entitled to purchase the tangible personal property without paying the tax.
(D) The exemption provided for under subparagraph (A) of this paragraph shall not apply to sales of tangible personal property that occur after the museum is opened to the public;
(89) For the period commencing on July 1, 2009, and ending on June 30, 2011, the sale or use of an airplane flight simulation training device approved by the Federal Aviation Administration under Appendices A and B, 14 C.F.R. Part 60;
(90) Internet access service;
(91) The sale of prewritten computer software transferred electronically to the purchaser or delivered to the purchaser by means of load and leave; provided, however, that the exemption granted by this paragraph shall not include sales of specified digital products, other digital goods, or digital codes;
(92) For the period commencing July 1, 2012, and ending on December 31, 2013, sales to an organization defined by the Internal Revenue Service as an instrumentality of the states relating to the holding of an annual meeting in this state;
(93)(A) For the period commencing January 1, 2012, until December 31, 2026, sales of tangible personal property used for and in the construction of a competitive project of regional significance.
(B) The exemption provided in subparagraph (A) of this paragraph shall apply to purchases made during the entire time of construction of the competitive project of regional significance so long as such project meets the definition of a competitive project of regional significance within the period commencing January 1, 2012, until December 31, 2026.
(C) The department shall not be required to pay interest on any refund claims filed for local sales and use taxes paid on purchases made prior to the implementation of this paragraph.
(D) As used in this paragraph, the term “competitive project of regional significance” means the location or expansion of some or all of a business enterprise’s operations in this state where the commissioner of economic development determines that the project would have a significant regional impact. The commissioner of economic development shall promulgate regulations in accordance with the provisions of this paragraph outlining the guidelines to be applied in making such determination;
(94) The sale, use, consumption, or storage of materials, containers, labels, sacks, or bags used for packaging tangible personal property for shipment or sale. To qualify for the packaging exemption, the items shall be used solely for packaging and shall not be purchased for reuse. The packaging exemption shall not include materials purchased at a retail establishment for consumer use;
(95) The sale or purchase of any motor vehicle titled in this state on or after March 1, 2013, pursuant to Code Section 48-5C-1. Except as otherwise provided in this paragraph, this exemption shall not apply to rentals of motor vehicles for periods of 31 or fewer consecutive days. Lease payments for a motor vehicle that is leased for more than 31 consecutive days for which a state and local title ad valorem tax is paid shall be exempt from sales and use taxes as provided for in this paragraph. No sales and use taxes shall be imposed upon state and local title ad valorem tax fees imposed pursuant to Chapter 5C of this title as a part of the purchase price of a motor vehicle or any portion of a lease or rental payment that is attributable to payment of state and local title ad valorem tax fees under Chapter 5C of this title;
(96)(A) The sale or use of construction materials used for or in the construction of buildings at a private college to the extent provided in subparagraphs (B) and (C) of this paragraph. As used in this paragraph, the term “private college” means a college in this state which is operated by an organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code and has an enrollment of between 1,000 and 3,000 students.
(B) This exemption shall apply from July 1, 2015, until June 30, 2016, or until the aggregate state sales and use tax refunded pursuant to this paragraph exceeds $350,000.00, whichever occurs first. A qualifying private college shall pay sales and use tax on all purchases and uses of construction materials and may obtain the benefit of this exemption from state sales and use tax by filing a claim for refund of tax paid on qualifying items. All refunds made pursuant to this paragraph shall not include interest.
(C)(i) This exemption shall apply from July 1, 2015, until June 30, 2016. A qualifying private college shall pay sales and use tax on all purchases and uses of construction materials and may obtain the benefit of this exemption from local sales and use tax by filing a claim for refund of tax paid on qualifying items. All refunds made pursuant to this paragraph shall not include interest.
(ii) For purposes of this subparagraph, local sales and use tax shall be defined as any local sales and use tax levied or imposed at any time in any area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the “Metropolitan Atlanta Rapid Transit Authority Act of 1965,” or such taxes as authorized by or pursuant to Article 2, 2A, 3, 4, or 5 of this chapter.
(D) Notwithstanding any provision of Code Section 48-8-63 to the contrary, purchases by a contractor may qualify for the exemption provided for in this paragraph. However, when a contractor purchases qualifying construction materials, the contractor shall pay the tax at the time of purchase or at the time of first use in this state; and the ultimate owner of the property may file a claim for refund of the tax paid on the qualifying property.
(E) Items qualifying for exemption include all construction materials that will remain at the private college after completion of construction and all construction materials that become incorporated into the real property structures of the private college. This exemption excludes all items that remain in the possession of a contractor after the completion of construction;
(97)(A) Sales of admissions to nonrecurring major sporting events in this state expected to generate over $50 million in the host locality.
(B) As used in this paragraph, the term “major sporting event” means the National Football League championship game; any semifinal game or championship game of a national collegiate tournament; a Major League Baseball, Major League Soccer, or National Basketball Association all-star game; any match of a FIFA World Cup; or any other nonrecurring major sporting event determined by the commissioner of economic development and the state revenue commissioner to be a major sporting event.
(C) As used in this paragraph, the term “nonrecurring” means not occurring in this state more than once every three years.
(D) The revenue projections for purposes of this paragraph shall include, but not be limited to, lodging, meals, vehicle rentals, and admissions to tourist attractions.
(E) Determinations made under this paragraph by the commissioners on or after July 1, 2016, shall be made prior to the date of the convening of the General Assembly immediately preceding the awarding of the sales tax exemption for a major sporting event. Such a determination shall become effective either 30 days prior to the major sporting event or on the first fiscal day of the fiscal year immediately following a year during which such determination was made, whichever is earlier. Such a determination may be rendered null and void by a joint resolution passed by both chambers of the General Assembly. In the event that the presiding officers of the General Assembly, in their discretion, choose to introduce such a joint resolution, a special committee in each respective chamber of the General Assembly will be appointed by the presiding officers of both chambers of the General Assembly for the purpose of considering such a joint resolution, subject to the rules of both respective chambers.
(F) This paragraph shall stand automatically repealed on December 31, 2031; provided, however, that this repeal shall not apply to any event for which an application has been submitted prior to December 31, 2031;
(98)(A) For the period beginning July 1, 2017, and ending June 30, 2020, sales of tangible personal property and services to a qualified job training organization when such organization obtains an exemption determination letter from the commissioner.
(B) For the purposes of this paragraph, the term “qualified job training organization” means an organization which:
(i) Is located in this state;
(ii) Is exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code;
(iii) Specializes in the retail sale of donated items;
(iv) Provides job training and employment services to individuals with workplace disadvantages and disabilities, including, but not limited to, reentry citizens who shall be persons released from incarceration, persons with disabilities, and veterans; and
(v) Uses a majority of its revenues for job training and placement programs.
(C)(i) For the purposes of this paragraph, the term “local sales and use tax” means any sales tax, use tax, or local sales and use tax which is levied and imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the “Metropolitan Atlanta Rapid Transit Authority Act of 1965”; or by or pursuant to Article 2, Article 2A, Part 1 or Part 2 of Article 3, Article 4, or Article 5 of this chapter.
(ii) The exemption provided for in subparagraph (A) of this paragraph shall not apply to any local sales and use tax levied or imposed at any time.
(D) Any qualified job training organization which is granted an exemption under this paragraph shall provide an annual report to the department which contains, but is not limited to, the following:
(i) The number of individuals trained in the program;
(ii) The number of individuals employed by the organization after receiving such training; and
(iii) The number of individuals employed in full-time positions outside the organization after such training. Such data shall be compiled by the department and presented to the House Committee on Ways and Means and the Senate Finance Committee for consideration prior to any renewal or extension of the exemption provided by this paragraph.
(E) The commissioner shall promulgate any rules and regulations necessary to implement and administer this paragraph;
(99)(A) The sale or use of tangible personal property used for or in the renovation or expansion of a theater located within a facility in this state that contains an art museum, symphonic hall, and theater that charges for admission and is owned or operated by an organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, if such organization’s primary mission is to provide arts and education programming for the benefit of the citizens of this state, to the extent provided in subparagraphs (B) and (C) of this paragraph.
(B) This exemption shall apply from July 1, 2017, until January 1, 2019, and until the aggregate state sales and use tax refunded pursuant to this paragraph exceeds $750,000.00. A qualifying organization must pay sales and use tax on all purchases and uses of tangible personal property and may obtain the benefit of this exemption from state sales and use tax by filing a claim for refund of tax paid on qualifying items. All refunds made pursuant to this paragraph shall not include interest.
(C) This exemption shall apply from July 1, 2017, until January 1, 2019, to any local sales and use tax levied or imposed at any time in any area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the “Metropolitan Atlanta Rapid Transit Authority Act of 1965,” or such taxes as authorized by or pursuant to Article 2, 2A, 3, 4, or 5 of this chapter.
(D) Notwithstanding any provision of Code Section 48-8-63 to the contrary, purchases by a contractor may qualify for the exemption provided for in this paragraph. However, when a contractor purchases qualifying tangible personal property, the contractor shall pay the tax at the time of purchase or at the time of first use in this state; and the ultimate owner of the property may file a claim for refund of the tax paid on the qualifying property.
(E) Items qualifying for exemption include all tangible personal property that will remain at the theater after completion of construction and all tangible personal property that becomes incorporated into the real property structures of the theater. The exemption excludes all items that remain tangible personal property in the possession of a contractor after the completion of construction;
(100) (Repealed effective December 31, 2027.)
(A) Sales of tickets, fees, or charges for admission to a fine arts performance or exhibition conducted within a facility in this state that is owned or operated by an organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or a museum of cultural significance, if such organization’s or museum’s mission is to advance the arts in this state and to provide arts, educational, and culturally significant programming and exhibits for the benefit and enrichment of the citizens of this state.
(B) As used in this paragraph, the term “fine arts” means music performed by a symphony orchestra, poetry, photography, ballet, dance, opera, theater, dramatic arts, painting, sculpture, ceramics, drawing, watercolor, graphics, printmaking, and architecture.
(C) This paragraph shall stand repealed and reserved on December 31, 2027;
(101)(A) The sale or use of noncommercial written materials or mailings by an organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, if the organization is located in this state and provides such materials to charity supporters for educational, charitable, religious, or fundraising purposes, to the extent provided in subparagraph (B) of this paragraph.
(B) This exemption shall apply from July 1, 2018, until July 1, 2026. A qualifying organization must pay sales and use tax on all purchases and uses of tangible personal property and may obtain the benefit of this exemption from sales and use taxes by filing a claim for refund of tax paid on qualifying items. All refunds made pursuant to this paragraph shall not include interest;
(102)(A) Fifty percent of the sales price of a manufactured home if such manufactured home is installed pursuant to Code Section 8-2-160 and will be converted to real property pursuant to Code Section 8-2-183.1 within 30 days of the retail sale.
(B) As used in this paragraph, the term “manufactured home” means a structure built on a permanent chassis that:
(i) Is designed to be used as a dwelling;
(ii) Is transportable in one or more sections;
(iii) Contains plumbing, heating, air-conditioning, and electrical systems; and
(iv) Is designed to have an angled roof and contain an area of at least 650 square feet.
(C) Within 30 days of a sale exempted as provided for in subparagraph (A) of this paragraph, the seller shall complete the requirements of Code Section 8-2-183.1 and properly file a copy of the Certificate of Permanent Location with the clerk of superior court, or the commissioner shall recover from the seller 1.5 times the amount of tax exempted by this paragraph.
(D) A manufactured home that is exempted as provided in subparagraph (A) of this paragraph shall not be eligible for a Certificate of Removal from Permanent Location provided in Part 4 of Article 2 of Chapter 2 of Title 8, or any other manner of a return to tangible personal property unless the amount exempted pursuant to subparagraph (A) of this paragraph is paid to the commissioner.
(E) The exemption provided for in subparagraph (A) of this paragraph shall not apply to any sales and use tax levied or imposed in an area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to:
(i) Constitutional amendment;
(ii) Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the “Metropolitan Atlanta Rapid Transit Authority Act of 1965”; or
(iii) Article 2, 2A, 3, 4, 5, or 5A of this chapter;
(103) Reserved;
(104) Sales to or by any nonprofit organization which has as its primary purpose providing poultry diagnostic and disease monitoring services if such organization qualifies as a tax-exempt organization under Section 501(c)(5) of the Internal Revenue Code; or
(105) Sales to or by an eligible recipient, as defined in Code Section 31-8-300, which provides pharmacy related services only for the purpose of dispensing donated or purchased drugs pursuant to the drug repository program established under Article 10 of Chapter 8 of Title 31, if such organization qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code or is an organization that is treated for federal income tax purposes as a disregarded entity of a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.
History
Ga. L. 1951, p. 360, §§ 3, 22; Ga. L. 1953, Jan.-Feb. Sess., p. 182, §§ 1, 2; Ga. L. 1953, Jan.-Feb. Sess., p. 191, § 1; Ga. L. 1953, Jan.-Feb. Sess., p. 192, § 1; Ga. L. 1953, Jan.-Feb. Sess., p. 194, § 1; Ga. L. 1953, Jan.-Feb. Sess., p. 199, § 1; Ga. L. 1953, Jan.-Feb. Sess., p. 301, § 1; Ga. L. 1960, p. 153, § 2; Ga. L. 1963, p. 13, § 1; Ga. L. 1963, p. 132, § 1; Ga. L. 1963, p. 613, § 1; Ga. L. 1964, p. 57, § 3; Ga. L. 1964, p. 206, § 1; Ga. L. 1964, p. 672, § 1; Ga. L. 1965, p. 13, § 1; Ga. L. 1966, p. 211, § 1; Ga. L. 1966, p. 507, § 1; Ga. L. 1966, p. 537, §§ 1, 2; Ga. L. 1967, p. 282, § 1; Ga. L. 1967, p. 283, § 1; Ga. L. 1967, p. 286, § 1; Ga. L. 1968, p. 129, § 1; Ga. L. 1968, p. 136, § 1; Ga. L. 1968, p. 201, § 1; Ga. L. 1968, p. 545, § 1; Ga. L. 1968, p. 559, § 1; Ga. L. 1970, p. 16, § 1; Ga. L. 1970, p. 252, § 2; Ga. L. 1970, p. 254, § 1; Ga. L. 1970, p. 460, § 1; Ga. L. 1970, p. 631, § 1; Ga. L. 1971, p. 80, § 1; Ga. L. 1971, p. 265, § 1; Ga. L. 1971, p. 474, § 1; Ga. L. 1971, p. 653, § 1; Ga. L. 1972, p. 457, § 1; Ga. L. 1972, p. 504, § 1; Ga. L. 1973, p. 276, § 1; Ga. L. 1976, p. 411, § 1; Ga. L. 1976, p. 672, § 1; Ga. L. 1976, p. 987, § 1; Ga. L. 1977, p. 590, § 1; Code 1933, § 91A-4503, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1978, p. 1160, §§ 1-4; Ga. L. 1978, p. 1634, § 1; Ga. L. 1978, p. 1664, § 2; Ga. L. 1978, p. 1666, § 1; Ga. L. 1979, p. 5, §§ 85-92; Ga. L. 1979, p. 1278, §§ 1, 2; Ga. L. 1980, p. 10, §§ 25, 26; Ga. L. 1980, p. 586, § 1; Ga. L. 1980, p. 805, § 1; Ga. L. 1980, p. 1188, § 1; Ga. L. 1981, p. 1857, § 41; Ga. L. 1984, p. 1466, § 1; Ga. L. 1985, p. 491, § 1; Ga. L. 1985, p. 624, § 1; Ga. L. 1985, p. 625, § 1; Ga. L. 1985, p. 1177, § 1; Ga. L. 1986, p. 10, § 48; Ga. L. 1986, p. 1453, § 1; Ga. L. 1986, p. 1459, § 1; Ga. L. 1986, p. 1464, § 2; Ga. L. 1986, p. 1467, §§ 1, 2; Ga. L. 1986, p. 1584, § 1; Ga. L. 1987, p. 191, § 9; Ga. L. 1989, p. 62, §§ 2, 3; Ga. L. 1989, p. 622, § 1; Ga. L. 1990, p. 45, § 1;
Ga. L. 1991, p. 87, § 2; Ga. L. 1992, p. 1276, § 1; Ga. L. 1992, p. 1521, § 2; Ga. L. 1992, p. 3173, § 1; Ga. L. 1994, p. 132, § 1; Ga. L. 1994, p. 552, § 1; Ga. L. 1994, p. 928, §§ 5, 6; Ga. L. 1994, p. 1269, § 1; Ga. L. 1995, p. 364, § 1; Ga. L. 1995, p. 585, § 8; Ga. L. 1995, p. 991, § 1; Ga. L. 1995, p. 1302, §§ 13, 14; Ga. L. 1996, p. 1, § 1; Ga. L. 1996, p. 220, §§ 8-10; Ga. L. 1996, p. 738, § 1; Ga. L. 1996, p. 1025, § 2; Ga. L. 1996, p. 1643, §§ 1-3; Ga. L. 1997, p. 157, § 1; Ga. L. 1997, p. 1295, § 1; Ga. L. 1997, p. 1412, §§ 1, 2; Ga. L. 1998, p. 128, § 48; Ga. L. 1998, p. 602, §§ 1-3; Ga. L. 1999, p. 634, §§ 1, 2; Ga. L. 2000, p. 409, § 1; Ga. L. 2000, p. 411, § 1; Ga. L. 2000, p. 414, § 1; Ga. L. 2000, p. 415, § 1; Ga. L. 2000, p. 468, § 1; Ga. L. 2000, p. 485, § 1; Ga. L. 2000, p. 615, §§ 1-3; Ga. L. 2000, p. 1202, §§ 1, 2; Ga. L. 2001, p. 4, § 48; Ga. L. 2001, p. 202, §§ 1, 2; Ga. L. 2001, p. 984, §§ 13-16; Ga. L. 2001, p. 1049, § 1; Ga. L. 2001, p. 1068, § 1; Ga. L. 2002, p. 6, § 1; Ga. L. 2002, p. 415, § 48; Ga. L. 2002, p. 575, § 1; Ga. L. 2002, p. 804, § 1; Ga. L. 2002, p. 855, § 1; Ga. L. 2002, p. 954, § 3; Ga. L. 2002, p. 984, § 1; Ga. L. 2003, p. 337, § 1; Ga. L. 2003, p. 665, §§ 11, 12; Ga. L. 2004, p. 154, § 1; Ga. L. 2004, p. 328, § 1; Ga. L. 2004, p. 403, § 1; Ga. L. 2004, p. 628, § 1; Ga. L. 2004, p. 690, § 22; Ga. L. 2004, p. 947, § 1; Ga. L. 2004, p. 1073, § 1; Ga. L. 2005, p. 60, § 48/HB 95; Ga. L. 2005, p. 142, §§ 1, 2/HB 487; Ga. L. 2005, p. 334, § 29-6/HB 501; Ga. L. 2005, p. 725, §§ 1, 2, 3, 4/HB 341; Ga. L. 2005, p. 794, § 1/HB 559; Ga. L. 2005, p. 983, § 1/HB 5; Ga. L. 2006, p. 222, § 1/HB 1014; Ga. L. 2006, p. 263, § 1/HB 1018; Ga. L. 2006, p. 419, § 1/HB 834; Ga. L. 2006, p. 471, § 1/HB 1301; Ga. L. 2006, p. 524, §§ 1, 2/HB 1219; Ga. L. 2006, p. 527, § 1/HB 1121; Ga. L. 2006, p. 538, § 1/HB 841; Ga. L. 2007, p. 47, § 48/SB 103; Ga. L. 2007, p. 207, §§ 1, 2/HB 128; Ga. L. 2007, p. 419, § 1/HB 186; Ga. L. 2007, p. 594, § 1/HB
169; Ga. L. 2007, p. 604, § 1/HB 282; Ga. L. 2007, p. 709, § 1/HB 193; Ga. L. 2008, p. 316, § 1/HB 1178; Ga. L. 2008, p. 340, §§ 1, 2/HB 948; Ga. L. 2008, p. 644, § 31/SB 342; Ga. L. 2008, p. 739, §§ 1, 2, 3/HB 957; Ga. L. 2008, p. 773, § 1/HB 1078; Ga. L. 2008, p. 1148, § 1/HB 1023; Ga. L. 2008, p. 1151, § 1/HB 1110; Ga. L. 2008, p. 1160, § 1/HB 237; Ga. L. 2008, p. 1163, § 1/HB 272; Ga. L. 2009, p. 8, § 48/SB 46; Ga. L. 2009, p. 79, § 2/HB 59; Ga. L. 2009, p. 636, § 1/HB 116; Ga. L. 2009, p. 637, §§ 1, 2/HB 120; Ga. L. 2009, p. 642, § 1/HB 212; Ga. L. 2009, p. 650, § 1/HB 358; Ga. L. 2009, p. 651, § 1/HB 395; Ga. L. 2009, p. 777, § 1/HB 129; Ga. L. 2009, p. 794, § 1/HB 349; Ga. L. 2009, p. 795, § 1/HB 364; Ga. L. 2010, p. 662, § 2/HB 1221; Ga. L. 2011, p. 38, § 4/HB 168; Ga. L. 2011, p. 47, § 1/HB 322; Ga. L. 2011, p. 302, § 1/HB 234; Ga. L. 2012, p. 257, §§ 1-5, 4-1, 5-1, 5-5, 5-6, 6-2/HB 386; Ga. L. 2012, p. 580, § 18/HB 865; Ga. L. 2012, p. 694, § 4/HB 729; Ga. L. 2012, p. 775, § 48/HB 942; Ga. L. 2012, p. 1348, § 2/HB 743; Ga. L. 2013, p. 7, § 4/HB 266; Ga. L. 2013, p. 37, § 2-2/HB 487; Ga. L. 2013, p. 141, § 48/HB 79; Ga. L. 2013, p. 190, § 1/HB 164; Ga. L. 2013, p. 243, § 6.1/HB 318; Ga. L. 2014, p. 51, § 2/HB 958; Ga. L. 2014, p. 633, § 1/HB 933; Ga. L. 2014, p. 866, § 48/SB 340; Ga. L. 2015, p. 236, § 5-3/HB 170; Ga. L. 2015, p. 284, § 1/HB 428; Ga. L. 2015, p. 385, § 417/HB 252; Ga. L. 2015, p. 1219, § 26/HB 202; Ga. L. 2015, p. 1262, § 7/HB 225; Ga. L. 2015, p. 1313, §§ 1, 1A/HB 426; Ga. L. 2016, p. 62, § 1/HB 951; Ga. L. 2016, p. 758, § 4/SB 379; Ga. L. 2016, p. 772, § 1/HB 937; Ga. L. 2016, p. 796, § 1/HB 763; Ga. L. 2016, p. 864, § 48/HB 737; Ga. L. 2017, p. 46, § 2/HB 265; Ga. L. 2017, p. 530, § 1/SB 156; Ga. L. 2017, p. 774, § 48/HB 323; Ga. L. 2018, p. 307, § 1/HB 697; Ga. L. 2018, p. 624, § 1/HB 696; Ga. L. 2018, p. 644, § 4/HB 217; Ga. L. 2018, p. 674, § 1/HB 871; Ga. L. 2018, p. 1075, §§ 1, 2/HB 793; Ga. L. 2018, p. 1112, § 48/SB 365; Ga. L. 2018, Ex. Sess., p. ES7, § 3-2/HB 5EX; Ga. L. 2019, p. 90, § 1/HB 35; Ga. L. 2019, p. 892, § 1/HB 352; Ga. L. 2019, p. 1044, § 1/HB 168; Ga. L. 2019, p. 1056, § 48/SB 52; Ga. L. 2020, p. 792, § 1/SB 104; Ga. L. 2020, p. 903, § 2-1/HB 105; Ga. L. 2021, p. 289, §§ 5-1,
5-2, 7-2/SB 6; Ga. L. 2021, p. 511, § 1/HB 374; Ga. L. 2021, p. 602, § 1-1/HB 498; Ga. L. 2021, p. 922, § 48/HB 497; Ga. L. 2022, p. 285, § 1/HB 1034; Ga. L. 2022, p. 352, § 48/HB 1428; Ga. L. 2022, p. 655, §§ 1, 3/HB 1291; Ga. L. 2022, p. 741, § 1/HB 586; Ga. L. 2022, p. 655, § 2/HB 1291; Ga. L. 2023, p. 335, § 3-2/SB 56, effective January 1, 2024; Ga. L. 2023, p. 344, §§ 1, 2/HB 86, effective July 1, 2023; Ga. L. 2023, p. 727, § 1/HB 408, effective July 1, 2023; Ga. L. 2024, p. HB 1072, § 2-6/HB 1072, effective April 23, 2024; Ga. L. 2024, p. 1052, § 5(48)/SB 448, effective July 1, 2024. Delayed effective date. Code Section 48-8-3 is set out twice in this Code. This version is effective until January 1, 2025. For version effective January 1, 2025, see the following version. Amendments. The first 2022 amendment, effective July 1, 2022, inserted “any match of a FIFA World Cup;” in subparagraph (97)(B), and substituted “December 31, 2031” for “December 31, 2022” twice in subparagraph (97)(F). The second 2022 amendment, effective May 2, 2022, part of an Act to revise, modernize, and correct the Code, designated paragraph (103) as “Reserved; or”. The third 2022 amendment, effective May 9, 2022, substituted “December 31, 2023” for “June 30, 2023” in subparagraph (68)(G), substituted “December 31, 2031” for “December 31, 2028” in subparagraph (68.1)(A), and in subdivisions (68.1)(A)(v)(I), (68.1)(A)(v)(II), and (68.1)(A)(v)(III), deleted “the creation of 20 new quality jobs and” from the end of division (68.1)(A)(v), inserted “the creation of 25 new quality jobs and” in subdivision (68.1)(A)(v)(I), substituted “the creation of ten new quality jobs and $75 million” for “$150 million” in subdivision (68.1)(A)(v)(II), substituted “the creation of five new quality jobs and $25 million” for “$100 million” in subdivision (68.1)(A)(v)(III), and substituted “January 1, 2032” for “January 1, 2029” in subparagraph (68.1)(H). The fourth 2022 amendment, effective May 10, 2022, substituted “December 31, 2027” for “December 31, 2022” in subparagraph (100)(C).
The fifth 2022 amendment, effective January 1, 2024, substituted the current provisions of subparagraph (68)(A) for the former provisions, which read: “The sale or lease of computer equipment to be incorporated into a facility or facilities in this state to any high-technology company classified under the 2017 North American Industrial Classification System code 334413, 334614, 511210, 517311, 517312, 517410, 517911, 517919, 518210, 522320, 541330, 541511, 541512, 541513, 541519, 541713, 541715, or 541720 where such sale of computer equipment for any calendar year exceeds $15 million or, in the event of a lease of such computer equipment, the fair market value of such leased computer equipment for any calendar year exceeds $15 million.”, substituted “including, but not limited do,” for “such as” near the beginning of division (68)(C)(i), substituted “Such term” for “The term” at the beginning of division (68)(C)(ii), deleted “or” from the end of subdivision (68)(C)(ii)(I), substituted a semicolon for a period at the end of subdivision (68)(C)(ii)(II), added subdivisions (68)(C)(ii)(III) and (68)(C)(ii)(IV), and substituted “December 31, 2028” for “June 30, 2023” at the end of subparagraph (68)(G). See Editor’s notes for applicability. The first 2023 amendment, effective January 1, 2024, substituted “Internet access service” for “Reserved” in paragraph (90), and substituted the current provisions of paragraph (91) for the former provisions, which read: “The sale of prewritten software which has been delivered to the purchaser electronically or by means of load and leave;”. See Editor’s notes for applicability. The second 2023 amendment, effective July 1, 2023, in paragraph (76), deleted “subparagraphs (B) and (C) of” following “extent provided in” in subparagraph (76)(A), in subparagraph (76)(B), substituted “apply from July 1, 2023, until December 31, 2026, or until the aggregate sales and use tax,” for “apply from July 1, 2018, until January 1, 2022, or until the aggregate state sales and use tax” in the first sentence, and deleted “state” following “exemption from” in the second sentence, deleted former subparagraph (76)(C), which read: “This
exemption shall apply from July 1, 2018, until January 1, 2022, to any local sales and use tax levied or imposed at any time in any area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the ‘Metropolitan Atlanta Rapid Transit Authority Act of 1965,’ or such taxes as authorized by or pursuant to Article 2, 2A, 3, 4, 5, or 5A of this chapter.”, and redesignated former subparagraphs (76)(D) through (76)(F) as present subparagraphs (76)(C) through (76)(E); and, in paragraph (87), deleted “subparagraphs (B) and (C) of” following “to the extent provided in” in subparagraph (87)(A), added the subparagraph (87)(B) designation, and divided former subparagraph (87)(A) into present subparagraphs (87)(A) and (87)(B), redesignated former subparagraph (87)(B) as present subparagraph (87)(C), and, in subparagraph (87)(C), substituted “from July 1, 2023, until December 31, 2026, or until the aggregate sales and use tax” for “from July 1, 2016, until June 30, 2018, or until the aggregate state sales and use tax” and substituted “$800,000.00” for “$350,000.00” in the first sentence, and deleted “state” following “exemption from” in the second sentence; deleted former subparagraph (87)(C), which read: “(C)(i) This exemption shall apply from July 1, 2016, until June 30, 2018. A qualifying zoological institution shall pay sales and use tax on all purchases and uses of tangible personal property and may obtain the benefit of this exemption from local sales and use tax by filing a claim for refund of tax paid on qualifying items. All refunds made pursuant to this paragraph shall not include interest. “(ii) For purposes of this subparagraph, local sales and use tax shall be defined as any local sales and use tax levied or imposed at any time in any area consisting of less than the entire state, however authorized, including, but not limited to, such taxes authorized by or pursuant to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended, the ‘Metropolitan Atlanta Rapid Transit Authority Act of 1965,’ or such taxes as authorized
by or pursuant to Article 2, 2A, 3, 4, or 5 of this chapter.” The third 2023 amendment, effective July 1, 2023, substituted “until December 31, 2026” for “until June 30, 2023” in subparagraphs (93)(A) and (93)(B). The first 2024 amendment, effective April 23, 2024, deleted “or” from the end of paragraph (103); substituted “; or” for a period at the end of paragraph (104); and added paragraph (105). See Editor’s notes for applicability. The second 2024 amendment, effective July 1, 2024, part of an Act to revise, modernize, and correct the Code, revised punctuation at the end of subparagraphs (68)(G) and (68.1)(H), and in division (75)(B)(vi).
Annotations
Code Commission notes. Ga. L. 1986, p. 1453, § 1; Ga. L. 1986, p. 1459, § 1; Ga. L. 1986, p. 1467, §§ 1, 2; and Ga. L. 1986, p. 1584, § 1; each of which became effective July 1, 1986, each deleted “or” at the end of paragraph (47), substituted a semicolon for a period and added “or” at the end of paragraph (48), and added differing language designated paragraph (49). Pursuant to Code Section 28-9-5, in 1986, “or” was deleted at the end of paragraph (47); a semicolon was substituted for a period at the end of paragraph (48); the paragraphs added by the four Acts listed above were designated as paragraphs (49)-(52), respectively; semicolons were substituted for periods at the end of paragraphs (49)-(51); and “or” was added at the end of paragraph (51). A fifth 1986 Act (Ga. L. 1986, p. 1464, § 2) also enacted a new paragraph (49) different from those enacted by the other 1986 Acts. However, due to its delayed effective date (October 1, 1987), the paragraph (49) added by Ga. L. 1986, p. 1464, § 2 was not incorporated in this Code section. In 1987, however, the “or” added following paragraph (51) was deleted, a semicolon and “or” was substituted for the period following paragraph (52), and the paragraph (49) added by Ga. L. 1986, p. 1464, § 2 was redesignated as paragraph (53). Pursuant to Code Section 28-9-5, in 1992, “Chapter 17” was substituted for “Chapter 16” in paragraph (43); “or” was deleted at the end of paragraph (53); and
“; or” was substituted for the period at the end of paragraph (54); and the paragraph (54) added by Ga. L. 1992, p. 3173, § 1, was redesignated as paragraph (55), since Ga. L. 1992, p. 1276, § 2, also added a paragraph (54). Pursuant to Code Section 28-9-5, in 1994, the paragraph (39) added by Ga. L. 1994, p. 132, § 1 was redesignated as paragraph (39.1). Pursuant to Code Section 28-9-5, in 1996, the paragraph (58) enacted by Ga. L. 1996, p. 1643, was redesignated as paragraph (59) and related stylistic changes were made. Pursuant to Code Section 28-9-5, in 2000, “or” was deleted at the end of paragraph (63) and a semicolon was substituted for a period at the end of paragraph (64). Pursuant to Code Section 28-9-5, in 2000, paragraph (64), as enacted by Ga. L. 2000, p. 415, § 1, was redesignated as paragraph (65), a semicolon was substituted for a period at the end of subparagraph (65)(B), and “or” was deleted at the end of paragraph (63). Pursuant to Code Section 28-9-5, in 2000, paragraphs (64) and (65), as enacted by Ga. L. 2000, p. 485, § 1, were redesignated as paragraphs (66) and (67); “or” was deleted at the end of newly redesignated paragraph (66), and a semicolon was substituted for a period at the end of newly redesignated paragraph (67). Pursuant to Code Section 28-9-5, in 2000, paragraphs (64) and (65), as enacted by Ga. L. 2000, p. 615, § 1, were redesignated as paragraphs (68) and (69); “or” was deleted at the end of newly redesignated paragraph (68), and a semicolon was substituted for a period at the end of newly redesignated paragraph (69). Pursuant to Code Section 28-9-5, in 2000, paragraphs (64), (65), and (66) as enacted by Ga. L. 2000, p. 1202, § 2, were redesignated as paragraphs (70), (71), and (72), respectively. Ga. L. 2002, p. 575, § 1 and Ga. L. 2002, p. 855, § 1 both added a paragraph (6.2). Pursuant to Code Section 28-9-5, in 2002, the paragraph (6.2) added by Ga. L. 2002, p. 855, § 1 was redesignated as paragraph (6.3).
Pursuant to Code Section 28-9-5, in 2003, paragraph (76), as added by Ga. L. 2003, p. 337, § 1, was redesignated as paragraph (77), “or” was deleted at the end of paragraph (75), and “; or” was substituted for a period at the end of paragraph (76). Pursuant to Code Section 28-9-5, in 2004, paragraph (78) as added by Ga. L. 2004, p. 403, § 1 was redesignated as paragraph (79); paragraph (78) as added by Ga. L. 2004, p. 1073, § 1 was redesignated as paragraph (80); “or” was deleted at the end of paragraph (77); and “; or” was substituted for a period at the end of paragraph (79). Pursuant to Code Section 28-9-5, in 2005, in subparagraph (59)(B), “fund-raising” was substituted for “fundraising”, “or” was deleted at the end of paragraph (80), “; or” was substituted for the period at the end of paragraph (81), and paragraph (81), as enacted by Ga. L. 2005, p. 794, § 1, was redesignated as paragraph (82). Pursuant to Code Section 28-9-5, in 2006, “flourescent” was changed to “fluorescent” in subparagraph (82)(B). Pursuant to Code Section 28-9-5, in 2006, paragraph (83), as enacted by Ga. L. 2006, p. 527, § 1, was redesignated as paragraph (84). Pursuant to Code Section 28-9-5, in 2006, paragraph (83), as enacted by Ga. L. 2006, p. 538, § 1, was redesignated as paragraph (85). Pursuant to Code Section 28-9-5, in 2006, “or” was deleted from the end of paragraph (82), a semicolon was substituted for a period at the end of paragraph (83), and “; or” was added at the end of paragraph (84). Pursuant to Code Section 28-9-5, in 2006, “July 1, 2006” was substituted for “the effective date of this paragraph” in subparagraph (84)(B). Pursuant to Code Section 28-9-5, in 2007, paragraph (33.2), as enacted by Ga. L. 2007, p. 709, § 1, was redesignated as paragraph (33.1). Pursuant to Code Section 28-9-5, in 2007, a semicolon was substituted for a period at the end of paragraph (34.4). Pursuant to Code Section 28-9-5, in 2008, in paragraph (7.05)(A), a comma
was deleted following “pursuant to” and in division (70.1)(C)(i), “or” was inserted preceding “by or” near the end. Pursuant to Code Section 28-9-5, in 2009, paragraph (87), as enacted by Ga. L. 2009, p. 794, § 1, was redesignated as paragraph (88); paragraph (87), as enacted by Ga. L. 2009, p. 795, § 1, was redesignated as paragraph (89); and related stylistic changes were made. Pursuant to Code Section 28-9-5, in 2010, “May 5, 2004” was substituted for “the effective date of this paragraph” in paragraph (78), “May 17, 2004” was substituted for “the effective date of this paragraph” in subparagraph (80)(A), and “May 17, 2004,” was substituted for “the effective date of this paragraph” in subparagraph (80)(B). Pursuant to Code Section 28-9-3, in 2012, the amendment of subparagraph (33.1)(C) of this Code section by Ga. L. 2012, p. 257, § 5-6/HB 386, was treated as impliedly repealed and superseded by Ga. L. 2012, p. 1348, § 2/HB 743, due to irreconcilable conflict. See County of Butts v. Strahan, 151 Ga. 417 (1921); Keener v. McDougall, 232 Ga. 273 (1974). Pursuant to Code Section 28-9-5, in 2012, “Code Section 48-5C-1” was substituted for “Code Section 48-5B-1” in paragraph (95). Pursuant to Code Section 28-9-5, in 2012, punctuation changes were made at the end of paragraphs (91) through (93), “; or” was substituted for a period at the end of paragraph (94), and a period was substituted for a semicolon at the end of paragraph (95). Pursuant to Code Section 28-9-5, in 2012, paragraph (92), as enacted by Ga. L. 2012, p. 257, § 5-5/HB 386, was redesignated as paragraph (93); paragraph (92), as enacted by Ga. L. 2012, p. 1348, § 2/HB 743, was redesignated as paragraph (94); and paragraph (92), as enacted by Ga. L. 2012, p. 257, § 1-5/HB 386, was redesignated as paragraph (95). Pursuant to Code Section 28-9-5, in 2015, a comma was deleted following “intellectually disabled” in paragraph (7.1). Pursuant to Code Section 28-9-5, in 2016, “July 1, 2016,” was substituted for “the effective date of this paragraph” in subparagraph (97)(E).
Pursuant to Code Section 28-9-5, in 2017, a period was substituted for a comma at the end of subparagraph (99)(B). Pursuant to Code Section 28-9-5, in 2018, “; or” was deleted at the end of paragraph (100), a semicolon was substituted for a period at the end of subparagraph (101)(B) and “; or” was substituted for a period at the of division (102)(E)(iii). Pursuant to Code Section 28-9-5, in 2018, paragraph (101), as added by Ga. L. 2018, p. 674, § 1/HB 871, was redesignated as paragraph (102). Pursuant to Code Section 28-9-5, in 2018, paragraph (101), as added by Ga. L. 2018, p. 1075, § 2/HB 793, was redesignated as paragraph (103). Editor’s notes. Ga. L. 1986, p. 1464, § 1, not codified by the General Assembly, provides that: “It is the intention of the General Assembly by the passage of this Act to comply fully with federal law which conditions state participation in the food stamp program and WIC program on the provision of an exemption from state and local taxes for purchases made with food stamps or WIC coupons.” Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, provided that that Act applies to taxable years ending on or after March 11, 1987, and that a taxpayer with a taxable year ending on or after January 1, 1987, and before March 11, 1987, may elect to have the provisions of that Act apply. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by that Act. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that provisions of the federal Tax Reform Act of 1986 and of the Internal Revenue Code of 1986 which as of January 1, 1987, were not yet effective become effective for purposes of Georgia taxation on the same dates as they become effective for federal purposes. Ga. L. 1992, p. 1276, § 2, not codified by the General Assembly, provides, in part: “This Act shall not be construed to autho-
rize the refund of any sales and use tax paid with respect to the sale or use of durable medical equipment and prosthetic devices prior to January 1, 1993.” Ga. L. 1992, p. 1521, § 4, not codified by the General Assembly, provides: “This Act [which amended this Code section] shall stand repealed in its entirety on January 1, 1996, and shall be void and of no effect and the provisions affected by this Act shall be specifically revived as such provisions stood before the enactment of this Act, as amended by laws other than this Act.” Ga. L. 1994, p. 834, § 4, not codified by the General Assembly, repeals Ga. L. 1992, p. 1521, § 4, which had provided for the repeal of this Code section as affected by that 1992 Act. Ga. L. 1994, p. 928, § 1, not codified by the General Assembly, provides: “This Act shall be known and may be cited as the ‘Georgia Business Expansion Support Act of 1994.’” Ga. L. 2003, p. 665, § 1, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘State and Local Tax Revision Act of 2003.’” Ga. L. 2008, p. 1160, § 2(b)/HB 237, not codified by the General Assembly, provides: “Tax, penalty, and interest liabilities and refund eligibility under paragraph (34.3) of Code Section 48-8-3 of the Official Code of Georgia Annotated, as amended by Section 1 of this Act, for any period prior to January 1, 2009, shall not be affected by the passage of this Act and shall continue to be governed by the provisions of said paragraph as it existed immediately prior to January 1, 2009.” Former paragraph (85) was repealed on its own terms effective July 1, 2010. Former paragraph (58) was repealed on its own terms effective January 1, 2011, and was reserved by Ga. L. 2012, p. 775, § 48/HB 942. Ga. L. 2011, p. 302, § 3/HB 234, not codified by the General Assembly, provides for severability. Ga. L. 2012, p. 257, § 7-1(b)/HB 386, approved by the Governor April 19, 2012, provided that the effective date of the amendment to this Code section is January 1, 2012. See Op. Atty. Gen. No.
76-76 for construction of effective date provisions that precede the date of approval by the Governor. Ga. L. 2012, p. 257, § 7-1(h)/HB 386, not codified by the General Assembly, provides: “Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by the passage of this Act and shall continue to be governed by the provisions of general law as it existed immediately prior to the effective date of the relevant portion of this Act.” Ga. L. 2012, p. 257, § 7-1(i)/HB 386, not codified by the General Assembly, provides: “This Act shall not abate any prosecution, punishment, penalty, administrative proceedings or remedies, or civil action related to any violation of law committed prior to the effective date of the relevant portion of this Act.” Ga. L. 2012, p. 257, § 7-2/HB 386, not codified by the General Assembly, provides for severability. Ga. L. 2013, p. 37, § 3-1/HB 487, not codified by the General Assembly, provides, in part: “(b) If any section of this Act is determined to be unconstitutional by a final decision of an appellate court of competent jurisdiction or by the trial court of competent jurisdiction if no appeal is made, with the exception of subsection (g) of Code Section 50-27-78 and Section 2-1 of this Act, this Act shall stand repealed by operation of law. “(c) This Act is not intended to and shall not be construed to affect the legality of the repair, transport, possession, or use of otherwise prohibited gambling devices on maritime vessels within the jurisdiction of the State of Georgia. To the extent that such repair, transport, possession, or use was lawful prior to the enactment of this Act, it shall not be made illegal by this Act; and to the extent that such repair, transport, possession, or use was prohibited prior to the enactment of this Act, it shall remain prohibited.” As of May 2024, no such finding has been issued. Ga. L. 2015, p. 236, § 8-1/HB 170, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘Transportation Funding Act of 2015.’” Ga. L. 2015, p. 236, § 8-2/HB 170, not codified by the General Assembly,
provides that: “It is the intention of the General Assembly, subject to appropriations and other constitutional obligations of this state, that year to year revenue increases be prioritized to fund education, transportation, and health care in this state.” Ga. L. 2015, p. 236, § 9-1(b)/HB 170, not codified by the General Assembly, provides that: “Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by the passage of this Act and shall continue to be governed by the provisions of Title 48 of the Official Code of Georgia Annotated as it existed immediately prior to the effective date of this Act.” This Act became effective July 1, 2015. Ga. L. 2015, p. 385, § 1-1/HB 252, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘J. Calvin Hill, Jr., Act.’” Ga. L. 2016, p. 62, § 2/HB 951, not codified by the General Assembly, provides: “This Act shall become effective on July 1, 2016, and shall be applicable to admissions purchased on or after January 1, 2017. This Act shall only apply to events secured on or after the effective date of this Act.” Ga. L. 2017, p. 530, § 4(c)/SB 156, not codified by the General Assembly, provides: “Sections 1 and 3 of this Act shall apply to all equalized homestead option sales and use taxes which are implemented on and after the effective date specified in subsection (a) of this section and to all county special purpose local option sales taxes which are implemented in conjunction with an equalized homestead option sales and use tax implemented on and after such date.” Subsection (a) of this section provides that the Act becomes effective upon approval of the Governor which occurred on May 8, 2017. Former paragraph (25) was repealed on its own terms effective July 1, 2017. Ga. L. 2018, p. 624, § 2/HB 696, not codified by the General Assembly, provides that this Act “shall be applicable to transactions occurring on or after July 1, 2018.” Former paragraph (100) was repealed on its own terms effective July 1, 2020.
Ga. L. 2020, p. 903, § 4-1/HB 105, not codified by the General Assembly, provides that the addition of paragraph (25) applies to sales of transportation on or after April 1, 2020. Ga. L. 2020, p. 903, § 4-1/HB 105, approved by the Governor August 5, 2020, provided that the amendment of this Code section is effective April 1, 2020. See Op. Att’y Gen. No. 76-76 for construction of effective date provisions that precede the date of approval by the Governor. Ga. L. 2021, p. 289, § 1-1/SB 6, not codified by the General Assembly, provides that: “Part V of this Act shall be known and may be cited as the ‘Georgia Economic Recovery Act of 2021.’” Ga. L. 2021, p, 602, § 3-2/HB 498, not codified by the General Assembly, provides that: “In accordance with the requirements of Article VII, Section II, Paragraph II(a)(1) of the Constitution of the State of Georgia, Part II of this Act shall not become law unless it receives the requisite two-thirds’ majority vote in both the Senate and the House of Representatives.” Ga. L. 2021, p. 922, § 54(e)/HB 497, not codified by the General Assembly, provides that: “In the event of a conflict between a provision in Sections 1 through 53 of this Act and a provision of another Act enacted at the 2021 regular session of the General Assembly, the provision of such other Act shall control over the conflicting provision in Sections 1 through 53 of this Act to the extent of the conflict.” Accordingly, the amendment to paragraph (33.1) of this Code section by Ga. L. 2021, p. 922, § 48/HB 497, was not given effect. Ga. L. 2022, p. 655, § 4/HB 1291, not codified by the General Assembly, makes paragraph (68) of this Code section applicable to transactions occurring on or after January 1, 2024. Ga. L. 2023, p. 335, § 4-1(a)/SB 56, not codified by the General Assembly, provides, in part, that the amendment of this Code section by that Act shall become effective on January 1, 2024, and shall be applicable to transactions occurring on or after January 1, 2024. Ga. L. 2023, p. 335, § 4-1(b)/SB 56, not codified by the General Assembly, provides: “Tax, penalty, and interest
liabilities and refund eligibility for prior taxable years shall not be affected by the passage of this Act and shall continue to be governed by the provisions of Title 48 of the Official Code of Georgia Annotated as they existed for such prior taxable years.” Ga. L. 2024, p. 347, § 3-1/HB 1072, not codified by the General Assembly, makes the amendment to paragraphs (103) and (104), and the addition of paragraph (105), applicable to taxable years beginning on or after January 1, 2025. U.S. Code. Section 501 of the Internal Revenue Code, referred to in subparagraph (11)(A) of this Code section, is codified at 26 U.S.C. § 501. Law reviews. For article discussing tax exemptions and deductions as incentives for establishment of foreign business in Georgia, see 27 Mercer L. Rev. 629 (1976). For article surveying Georgia cases dealing with environment, natural resources, and land use from June 1977 through May 1978, see 30 Mercer L. Rev. 75 (1978). For article surveying developments in Georgia local government law from mid1980 through mid-1981, see 33 Mercer L. Rev. 187 (1981). For survey article on recent developments in Georgia state and local taxation, see 34 Mercer L. Rev. 400 (1982). For annual survey of state and local taxation, see 38 Mercer L. Rev. 337 (1986). For article, “Common State Tax Pitfalls in the Acquisition or Disposition of Businesses in Georgia,” see 22 Ga. St. B. J. 82 (1985). For article, “Georgia Sales and Use Tax Exemptions for Manufacturers,” see 29 Ga. St. B. J. 19 (1992). For survey article on local government law, see 59 Mercer L. Rev. 285 (2007). For article, “Revenue and Taxation: Amend Titles 48, 2, 28, 33, 36, 46, and 50 of the Official Code of Georgia Annotated, Relating Respectively to Revenue and Taxation, Agriculture, the General Assembly, Insurance, Local Government, Public Utilities, and State Government,” see 28 Georgia St. U.L. Rev. 217 (2011). For article, “The Chevron Two-Step in Georgia’s Administrative Law,” see 46 Ga. L. Rev. 871 (2012).
For article on the 2012 amendment of this Code section, see 29 Georgia St. U.L. Rev. 112 (2012). For article on the 2015 amendment of this Code section, see 32 Georgia St. U.L. Rev. 213 (2015). For annual survey on state and local taxation: a two-year survey, see 71 Mercer L. Rev. 279 (2019). For article, “SB 6: The Review, Creation, and Extension of Georgia Tax Credits and Deductions,” see 38 Ga. St. U.L. Rev. 167 (2021).
For note on 1991 amendment of this Code section, see 8 Georgia St. U.L. Rev. 190 (1992). For note on the 1994 amendment of this Code section, see 11 Georgia St. U.L. Rev. 249 (1994). For note on the 2001 amendment to this Code section, see 18 Georgia St. U.L. Rev. 294 (2001). For note on the 2003 amendment to this Code section, see 20 Ga. St. U.L. Rev. 233 (2003).
JUDICIAL DECISIONS ANALYSIS GENERAL CONSIDERATION SALES TO STATE OR FEDERAL GOVERNMENT PROPERTY FURNISHED FOR WORK ON WATER, GAS, OR SEWAGE SYSTEM FEDERAL EXCISE TAX TRANSPORTATION CHARGES INCONSEQUENTIAL SALES INCIDENT TO SERVICE TRANSACTIONS AGRICULTURAL MACHINERY AIRCRAFT, ETC., USED BY COMMON CARRIERS IN INTERSTATE COMMERCE MACHINERY DIRECTLY USED IN MANUFACTURING INDUSTRIAL MATERIALS, PACKAGING, ETC. SALE OF ANTIPOLLUTION MACHINERY AND EQUIPMENT POLLUTANT WASTE USED IN RECYCLING OR BURNING PROCESS DRUGS DISPENSED BY PRESCRIPTION AND PRESCRIPTION EYEGLASSES AND CONTACT LENSES General Consideration Scrivener’s error in paragraph (42). - Since there is no specific indication that the legislature intended to change the preexisting law when the legislature adopted the Official Code, the court views alterations of the Code Revision Commission in redrafting the statute and in substituting the words “common ownership of the property” for “persons under 100% common ownership,” as merely a scrivener’s error, and the court applies the substantive law in effect at the time of enactment of the 1982 Code. Charter Medical Info. Servs. v. Collins, 266 Ga. 720, 470 S.E.2d 655, 1996 Ga. LEXIS 247 (1996). Intent to exempt must be clear and distinct. - Exemption will not be held to be conferred unless the terms under which the exemption is granted clearly and distinctly show that such was the intention of the General Assembly. Oxford
v. J.D. Jewell, Inc., 215 Ga. 616, 112 S.E.2d 601, 1960 Ga. LEXIS 281 (1960). Grant of exemption from sales and use taxation to taxpayer for amount it paid to lease certain of business equipment was properly reversed because O.C.G.A. § 48-8-3(43) contained no clear and unambiguous expression of exemption applicable to taxpayer’s lease payments to non-party. Funvestment Group, LLC v. Crittenden, 364 Ga. App. 447, 875 S.E.2d 436, 2022 Ga. App. LEXIS 323 (2022), rev’d in part, 317 Ga. 288, 893 S.E.2d 60, 2023 Ga. LEXIS 202 (2023). Exemptions from taxation must be strictly construed. Oxford v. J.D. Jewell, Inc., 215 Ga. 616, 112 S.E.2d 601, 1960 Ga. LEXIS 281 (1960); In re Ga. Air, Inc., 345 F. Supp. 636, 1972 U.S. Dist. LEXIS 13075 (N.D. Ga. 1972). Fixtures which pass by conveyance of realty are exempt. - All fixtures which would pass by a conveyance of an interest in realty as a part thereof, in the
absence of provisions in the sales contract to the contrary, are exempt from the tax imposed by Ga. L. 1951, p. 360 (see now O.C.G.A. § 48-8-1 et seq.). State v. Dyson, 89 Ga. App. 791, 81 S.E.2d 217, 1954 Ga. App. LEXIS 581 (1954). Provision on religious book unconstitutional. - O.C.G.A. § 48-8-3(15)(A) and (16), which exempt from sales tax certain religious books and papers, are unconstitutional as violative of the free speech and establishment clauses of the First Amendment when the exemptions are based on content and there is no showing of a compelling interest or that the exemptions are narrowly tailored; thus, the state revenue commissioner was enjoined from enforcing those provisions. Budlong v. Graham, 414 F. Supp. 2d 1222, 2006 U.S. Dist. LEXIS 9767 (N.D. Ga.), vacated in part, 488 F. Supp. 2d 1245, 2006 U.S. Dist. LEXIS 96203 (N.D. Ga. 2006). On a challenge by the plaintiffs, a former librarian and a book retailer, O.C.G.A. § 48-8-3(15)(A), which exempted sales and use taxes on certain religious papers, was held unconstitutional under the First Amendment’s free press clause because the statute drew a line between religious and non-religious papers, thus requiring official scrutiny of content as a basis for imposing a tax, and a permanent injunction enjoining the defendant state revenue commissioner from continuing to enforce the provision was issued; under O.C.G.A. § 48-8-3(15)(A), a calendar published by a religious institution would presumably not qualify as a “religious paper” and the statute thus discriminated between religious and non-religious writings and, furthermore under O.C.G.A. § 48-8-3(16), books with critiques of the Bible might or might not be exempted, depending on whether the state found the materials were “commonly recognized” as “Holy Scripture”. Budlong v. Graham, 488 F. Supp. 2d 1252, 2007 U.S. Dist. LEXIS 36101 (N.D. Ga. 2007). Application to lease of coin operated amusement machines (COAMs). - Because the plain language of O.C.G.A. § 48-8-3(43) applies to revenues generated by coin operated amusement machines
(COAMs), which includes revenues generated from the lease of COAMs and revenues generated from the participation plays of COAMs, the Georgia Court of Appeals erred in concluding that the exemption did not apply to the lease revenues generated. Funvestment Group, LLC v. Crittenden, 317 Ga. 288, 893 S.E.2d 60, 2023 Ga. LEXIS 202 (2023). Standard of review. - In a case challenging the denial of sales tax refunds, the trial court’s ruling was vacated because while the court stated the correct standard of review in the court’s decision, the court summarily disregarded certain of Georgia Tax Tribunal’s explicit factual findings, which if there was any evidence to support those findings, contravened the deferential legal framework to be applied therefrom. T-Mobile South v. Crittenden, 364 Ga. App. 523, 875 S.E.2d 524, 2022 Ga. App. LEXIS 338 (2022). Sales to State or Federal Government General Assembly did not intend to exempt any body politic other than those specifically described in this section. Oxford v. Housing Auth., 104 Ga. App. 797, 123 S.E.2d 175, 1961 Ga. App. LEXIS 805 (1961). General Assembly intended to exempt foreign municipal corporations doing business and serving residents of this state from sales and use taxes on purchases of tangible personal property which the foreign municipality uses in conducting the corporation’s business within the state. City of Chattanooga v. State, 246 Ga. 99, 269 S.E.2d 5, 1980 Ga. LEXIS 978 (1980). When foreign municipality treated as municipality of this state. - Foreign municipality permitted to enter this state and carry on proprietary function by providing services to residents of this state is a municipality of this state for purposes of this exemption. City of Chattanooga v. State, 246 Ga. 99, 269 S.E.2d 5, 1980 Ga. LEXIS 978 (1980). Housing authorities are taxable. - Ga. L. 1951, p. 360 (see now O.C.G.A. § 48-8-1 et seq.) is an all inclusive statute which includes a housing authority as a taxpayer since no provision appears to
Sales to State or Federal Government (Cont’d) exclude a housing authority. Oxford v. Housing Auth., 104 Ga. App. 797, 123 S.E.2d 175, 1961 Ga. App. LEXIS 805 (1961). Sales to a water authority are taxable. Blackmon v. Cobb County-Marietta Water Auth., 126 Ga. App. 459, 191 S.E.2d 128, 1972 Ga. App. LEXIS 1183 (1972). Property Furnished for Work on Water, Gas, or Sewage System Exemption applies to subcontractors. - Exemption applies not only to use of county pipe by a prime contractor with the county, but also use by a subcontractor performing an included portion of the work. Blackmon v. DeKalb Pipeline Co., 127 Ga. App. 395, 193 S.E.2d 635, 1972 Ga. App. LEXIS 898 (1972). Considerations as to whether installed to serve particular property site. - Water mains are not installed to serve a particular property site under this exemption when the water mains are the property of the county prior to and after installation; are installed upon property over which the county gains a permanent easement; when, once operational, the water mains serve new residential customers; when the water mains are installed in such a way as readily to permit extensions to adjoining areas as the need arises; when, as the county is developed, the water mains are extended and become an additional network of the county water system; and when, once installed, the water mains are part of the general water system of the county used for general distribution purposes. Blackmon v. DeKalb Pipeline Co., 127 Ga. App. 395, 193 S.E.2d 635, 1972 Ga. App. LEXIS 898 (1972).
price and gross sales. Undercofler v. Capital Auto. Co., 111 Ga. App. 709, 143 S.E.2d 206, 1965 Ga. App. LEXIS 1076 (1965). Tax Injunction Act. - Tax Injunction Act, 28 U.S.C. § 1341, did not bar jurisdiction for a court to consider a challenge to O.C.G.A. § 48-8-3 and the statute’s exemption from sales tax of certain religious books and papers because the plaintiffs did not seek to rewrite Georgia law but only asked the court to restrain further application of the exemption, which would actually enrich the state’s coffers rather than deplete those coffers. Budlong v. Graham, 414 F. Supp. 2d 1222, 2006 U.S. Dist. LEXIS 9767 (N.D. Ga.), vacated in part, 488 F. Supp. 2d 1245, 2006 U.S. Dist. LEXIS 96203 (N.D. Ga. 2006). Although a preliminary injunction was properly entered in a challenge to exemptions of religious items from sales tax of O.C.G.A. § 48-8-3(15)(A), and (16) without a hearing because the state tax official was not denied an opportunity to present contentions, it was error to consolidate the matter with final disposition without a hearing under Fed. R. Civ. P. 65(a)(2) without consent of the official; thus, a motion to reconsider was appropriate to set aside the consolidation pursuant to N.D. Ga. R. 7.2(E). Budlong v. Graham, 488 F. Supp. 2d 1245, 2006 U.S. Dist. LEXIS 96203 (N.D. Ga. 2006). Transportation Charges Purpose of exemption for transportation charges. - Purpose of Ga. L. 1953, Jan.-Feb. Sess., p. 182, § 1 is merely to exclude the sale of such services from the sales tax, not from use tax. Colonial Pipeline Co. v. Undercofler, 115 Ga. App. 58, 153 S.E.2d 592, 1967 Ga. App. LEXIS 998 (1967).
Federal Excise Tax Section does not apply to excise taxes included in sales price and gross price. - This section is construed in harmony with other provisions of Ga. L. 1951, p. 360 (see now O.C.G.A. § 48-8-1 et seq.), so that federal excise taxes as used in this section refer only to those federal excise taxes which are not included in sale
Inconsequential Sales Incident to Service Transactions When skilled service is the object of transaction, property incidentally furnished is exempt. - When the furnishing of tangible personal property constitutes part of a personal service transaction in which skilled service in the preparation thereof is more the object of
the transaction than inconsequential items of tangible personal property for which no separate charges are made, such items are exempt from sales tax. Hawes v. Dimension, Inc., 122 Ga. App. 190, 176 S.E.2d 602, 1970 Ga. App. LEXIS 829 (1970). Purchase to be transferred to another in providing a service is a taxable retail transaction, even though the actual consumption of the item is made by the recipient of the service or by the recipient’s customer. Craig-Tourial Leather Co. v. Reynolds, 87 Ga. App. 360, 73 S.E.2d 749, 1952 Ga. App. LEXIS 687 (1952); L.M. Berry & Co. v. Blackmon, 129 Ga. App. 347, 199 S.E.2d 610, 1973 Ga. App. LEXIS 1000 (1973), aff’d, 231 Ga. 659, 203 S.E.2d 520, 1974 Ga. LEXIS 1176 (1974). Subject to sales tax when purchased in state. - Purchase of property to be used in providing a service is a retail purchase, and if made within the state it is a taxable purchase subject to the sales tax on retail sales within the state. L.M. Berry & Co. v. Blackmon, 231 Ga. 659, 203 S.E.2d 520, 1974 Ga. LEXIS 1176 (1974). Subject to use tax when purchased outside state. - Purchase of tangible personal property in another state to be transferred to one in this state in the course of providing a service under a contract executed and performed in this state is subject to use tax, even though the transfer incident to the service transaction is exempt under Ga. L. 1951, p. 360. L.M. Berry & Co. v. Blackmon, 231 Ga. 659, 203 S.E.2d 520, 1974 Ga. LEXIS 1176 (1974). Actual cost or monetary value of materials used is not determinative. - In determining whether sale of materials used is an inconsequential element of the service transaction, or whether the service rendered is part of the sale, the actual cost or monetary value of materials used is not determinative. Craig-Tourial Leather Co. v. Reynolds, 87 Ga. App. 360, 73 S.E.2d 749, 1952 Ga. App. LEXIS 687 (1952). Shoe repairs may reasonably be said to fall within the category of personal service transactions. Craig-Tourial Leather Co. v. Reynolds, 87
Ga. App. 360, 73 S.E.2d 749, 1952 Ga. App. LEXIS 687 (1952). Sale of steel dies to a manufacturer is not a personal service transaction when such dies are used by the manufacturer until disposed of. Mead Corp. v. Strickland, 247 Ga. 495, 276 S.E.2d 586, 1981 Ga. LEXIS 718 (1981). Agricultural Machinery Intent as to exemption of portable multipurpose drying barns. - This section reveals no distinct and clear intention on the part of the General Assembly to exempt from taxation portable multipurpose drying barns used for the storage of crops. Chilivis v. Dixon, 234 Ga. 703, 217 S.E.2d 283, 1975 Ga. LEXIS 1230 (1975). Portable crop drying units (tobacco barns) are not farm equipment exclusively used in harvesting crops and are, therefore, not exempt from sales tax. Nimmer v. Strickland, 242 Ga. 430, 249 S.E.2d 233, 1978 Ga. LEXIS 1240 (1978). Aircraft, etc., Used by Common Carriers in Interstate Commerce Determination as to whether carrier is private or common. - If there is a question as to whether a carrier is a private or common carrier, it is to be determined by facts relating to whether the business is public business or employment, and whether the service is to be rendered to all indifferently, and whether one has held oneself out as so engaged, so as to make the carrier liable for a refusal to accept the employment offered. In re Ga. Air, Inc., 345 F. Supp. 636, 1972 U.S. Dist. LEXIS 13075 (N.D. Ga. 1972). Status as a common carrier is a factual question and cannot be forced on one by legislative fiat. In re Ga. Air, Inc., 345 F. Supp. 636, 1972 U.S. Dist. LEXIS 13075 (N.D. Ga. 1972). Machinery Directly Used in Manufacturing Term “machinery” in O.C.G.A. § 48-8-3 is more expansive than the term “machine,” in that the term “machinery” embraces both those parts of a machine which do generate or distribute power, as
Machinery Directly Used in Manufacturing (Cont’d) well as those parts of a machine which do not generate or distribute power. Amoena Corp. v. Strickland, 248 Ga. 496, 283 S.E.2d 894, 1981 Ga. LEXIS 1055 (1981). Molds are not machines in themselves, but are part of tax-exempt machinery under O.C.G.A. § 48-8-3, used in manufacturing prosthetic devices. Amoena Corp. v. Strickland, 248 Ga. 496, 283 S.E.2d 894, 1981 Ga. LEXIS 1055 (1981). Repair and replacement parts. - Since the 2000 version of O.C.G.A. § 48-8-3 for the first time expressly exempted repair and replacement parts from taxation, it followed that such parts were not exempt under the 1994 version; consequently, the trial court properly granted the Department of Revenue partial summary judgment on the issue. Inland Paperboard & Packaging, Inc. v. Ga. Dep’t of Revenue, 274 Ga. App. 101, 616 S.E.2d 873, 2005 Ga. App. LEXIS 686 (2005), cert. denied, No. S05C1809, 2005 Ga. LEXIS 697 (Ga. Oct. 11, 2005). The 1997 version of O.C.G.A. § 48-8-3 does not exempt machinery repair parts from sales tax but at best the language might have created some ambiguity that “replacement components” could include repair parts, but an exemption had to be expressed unambiguously; furthermore, in 2000, the legislature made it clear that the 1997 statute did not extend the exemption to machinery repair parts. Ga. Dep’t of Revenue v. Owens Corning, 283 Ga. 489, 660 S.E.2d 719, 2008 Ga. LEXIS 356 (2008). This section is intended to create tax advantages for machinery purchased for new or expanded industry. Hawes v. Institutional Packers of Am., Inc., 117 Ga. App. 243, 160 S.E.2d 459, 1968 Ga. App. LEXIS 1047 (1968). Exemption construed in taxing authority’s favor. - Application of this exemption has been narrowly restricted in accordance with the general proposition that in interpreting tax exemptions all doubts must be resolved in favor of the taxing authority. Southwire Co. v.
Chilivis, 139 Ga. App. 329, 228 S.E.2d 295, 1976 Ga. App. LEXIS 1790 (1976). Direct use is measured by actual use, not essentialness to operation. - Test of whether equipment is used directly within the meaning of this exemption is not whether the property is essential to the operation of the plant, but whether it is an actual part of the process of manufacture. Blackmon v. Screven County Indus. Dev. Auth., 131 Ga. App. 265, 205 S.E.2d 497, 1974 Ga. App. LEXIS 1395 (1974). Absence of intervening agency, not whether machinery actually touches or affects product. - Test as to direct use is not whether the substance generated by the machinery in question touched or directly affected the product. Rather, one test for direct use in manufacture is the absence of such an intervening agency. Blackmon v. Screven County Indus. Dev. Auth., 131 Ga. App. 265, 205 S.E.2d 497, 1974 Ga. App. LEXIS 1395 (1974). One test for direct use in manufacture is the absence of an intervening agency. Southwire Co. v. Chilivis, 139 Ga. App. 329, 228 S.E.2d 295, 1976 Ga. App. LEXIS 1790 (1976). Devices used to affect the environment of goods in manufacture are not used directly in manufacturing. Southwire Co. v. Chilivis, 139 Ga. App. 329, 228 S.E.2d 295, 1976 Ga. App. LEXIS 1790 (1976). Definition of “manufacturing process.” - For this section, the manufacturing process has been defined by the commissioner consisting of a series of separate operations at a fixed location whereby, through the application of machines and labor to raw material or materials at any stage of becoming finished, tangible, personal property, the form or composition of the material or materials is significantly changed. Chilivis v. Marble Prods. Co., 135 Ga. App. 187, 217 S.E.2d 441, 1975 Ga. App. LEXIS 1610 (1975). What constitutes direct use. - When the machinery does not directly effect the chemical change in the raw material, but rather, the electrical current
creates an electron imbalance within the electrolytic cell, which causes a chemical and physical change in the raw material, and the machinery simply modifies and transmits this electrical current, the equipment is not used directly in the manufacture of tangible personal property. Southwire Co. v. Chilivis, 139 Ga. App. 329, 228 S.E.2d 295, 1976 Ga. App. LEXIS 1790 (1976). Industrial Materials, Packaging, etc. Intent. - Intention of the General Assembly is that materials merely used in processing should not be excluded from the operation of Ga. L. 1951, p. 360. Undercofler v. Macon Linen Serv., Inc., 114 Ga. App. 231, 150 S.E.2d 703, 1966 Ga. App. LEXIS 694 (1966). Growth of living substances can be part of an industrial process when it is but one stage in the development of the end product and when the growth itself is so artificially controlled as to be unnatural. Blackmon v. J.D. Jewell, Inc., 126 Ga. App. 679, 191 S.E.2d 621, 1972 Ga. App. LEXIS 1249 (1972). Lithographic plates used by printing company are not exempt. Chilivis v. Stein, 141 Ga. App. 536, 233 S.E.2d 881, 1977 Ga. App. LEXIS 1980 (1977). Sale of scrap copper is exempt, but sale of the new product to the customer is taxable as a sale of tangible personal property at retail. Southwire Co. v. Chilivis, 139 Ga. App. 329, 228 S.E.2d 295, 1976 Ga. App. LEXIS 1790 (1976). Laundering operations are in the nature of maintenance or service operations and the starch is not “impregnated into the product at any stage of its processing”. Undercofler v. Macon Linen Serv., Inc., 114 Ga. App. 231, 150 S.E.2d 703, 1966 Ga. App. LEXIS 694 (1966). Industrial materials used to coat or impregnate a product at any stage of the product’s manufacture are exempt even if the materials may later be removed in another manufacturing process. Hawes v. Bibb Mfg. Co., 224 Ga. 141, 160 S.E.2d 355, 1968 Ga. LEXIS 694 (1968). What constitutes packaging for shipment or sale. - Cabinets and dispensers furnished by a linen company
to the company’s customers are not containers used for packaging personal property for shipment or sale within the meaning of this section’s exemption. Undercofler v. Macon Linen Serv., Inc., 114 Ga. App. 231, 150 S.E.2d 703, 1966 Ga. App. LEXIS 694 (1966). Bottles and cases for milk and soft drinks are exempt containers used for packaging tangible personal property for shipment and sale. Undercofler v. Buck, 107 Ga. App. 870, 132 S.E.2d 157, 1963 Ga. App. LEXIS 1009 (1963). Sale of Antipollution Machinery and Equipment Exemption applies to ultimate owner, not contractor. - Contractor purchasing waste water treatment equipment, who is not the ultimate owner of the water pollution control facility, is subject to sales tax. Indian River Constr. Co. v. Beloit Passavant Corp., 241 Ga. 282, 244 S.E.2d 814, 1978 Ga. LEXIS 981 (1978). Regulations permitting payment of tax by contractor and refund to ultimate owner. - This section is broad enough to authorize the commissioner to issue regulations requiring the contractor to remit the tax on pollution control equipment and allowing the ultimate owner to file a claim for refund since the contractor will presumably be able to pass this cost on to the ultimate owner. Eimco BSP Servs. Co. v. Chilivis, 241 Ga. 263, 244 S.E.2d 829, 1978 Ga. LEXIS 985 (1978). Pollutant Waste Used in Recycling or Burning Process Legislative intent. - This exemption is intended for industrial raw materials used in the process of manufacturing tangible personal property for sale, which previously became wasteful by-products, but which now, with the advent of stricter pollution control standards, are being recycled or burned and used as a source of energy. Eimco BSP Servs. Co. v. Chilivis, 241 Ga. 263, 244 S.E.2d 829, 1978 Ga. LEXIS 985 (1978).
Drugs Dispensed by Prescription and Prescription Eyeglasses and Contact Lenses Contact lenses must be pursuant to prescription. - O.C.G.A. § 48-8-3(47) applies only to transactions involving a
sale of contact lenses pursuant to a prescription. CIBA Vision Corp. v. Jackson, 248 Ga. App. 688, 548 S.E.2d 431, 2001 Ga. App. LEXIS 378 (2001), cert. denied, No. S01C1022, 2001 Ga. LEXIS 699 (Ga. Sept. 7, 2001).
OPINIONS OF THE ATTORNEY GENERAL ANALYSIS GENERAL CONSIDERATION SALES TO STATE OR FEDERAL GOVERNMENT FEDERAL EXCISE TAX SALES TO NONPROFIT HOSPITALS, NURSING HOMES, ETC. SALES TO UNIVERSITY SYSTEM OF GEORGIA SALES TO PRIVATE COLLEGES OR UNIVERSITIES SALES TO PRIVATE ELEMENTARY AND SECONDARY SCHOOLS SALES BY RELIGIOUS INSTITUTIONS OR DENOMINATIONS SALE OF FUEL AND SUPPLIES USED BY SHIPS SALES OF TRANSPORTATION EQUIPMENT TRANSPORTATION CHARGES INCONSEQUENTIAL SALES INCIDENT TO SERVICE TRANSACTIONS SALE OF SEED, FERTILIZER, ANIMAL FEED, AND RELATED GOODS INDUSTRIAL MATERIALS, PACKAGING, AND OTHER ITEMS SALE OF ANTIPOLLUTION MACHINERY AND EQUIPMENT General Consideration Sale of natural gas by a municipality is not exempt from the sales tax. 1950-51 Ga. Op. Att’y Gen. 407. Agricultural commodity commissions are subject to taxes imposed under Ga. L. 1951, p. 360. 1975 Op. Att’y Gen. No. 75-136. Sale of electricity to subscribers by a rural electric membership corporation is subject to sales tax at the rate of 3 percent of the total charges billed to such subscribers for electric service, regardless of whether the corporation utilizes 20 percent of such revenues to amortize federal loans or otherwise. 1967 Op. Att’y Gen. No. 67-377. Middle Georgia Coliseum Authority is subject to Ga. L. 1951, p. 360 unless exempted by some provision of law. 1965-66 Op. Att’y Gen. No. 65-46. Sales to State or Federal Government Purpose of exemption. - Basic purpose of the exemption in this section is to relieve public institutions from the
imposition and payment of the sales and use taxes and to exempt sales when the sale is to or the use is by a public instrumentality, i.e., an instrumentality of the state, city, or county. 1954-56 Ga. Op. Att’y Gen. 867. Nonprofit corporation which does not receive any governmental appropriation is not exempt from taxation. 1971 Op. Att’y Gen. No. U71-112. Sale made directly to department of this state is immune, and it may not pay erroneously imposed sales tax. 1970 Op. Att’y Gen. No. 70-28. Sales to a contractor for use in performing a contract with the United States are not exempt, though sales to the United States are. 1960-61 Ga. Op. Att’y Gen. 553. Subcontractor doing work for state owes sales tax. - Independent contractor who receives a subcontract from one who is doing work for the state must pay sales taxes on materials purchased. 1954-56 Ga. Op. Att’y Gen. 841. Departments of state liable for
taxes imposed by other jurisdictions. - Sales occurring in other states are subject to foreign statutes, which may or may not exempt sales made to a sister state. Absent such exemption, departments of this state are liable for payment of sales taxes imposed by other states. 1970 Op. Att’y Gen. No. 70-28. What entities within exemption. - Federal credit unions are not subject, as consumers, to sales and use taxes. 1954-56 Ga. Op. Att’y Gen. 848. Incorporated athletic associations, that are managed by public high school authorities, that are instrumentalities of the school board, and that derive at least some of their financial support from public funds, are exempt from payment of sales tax. 1954-56 Ga. Op. Att’y Gen. 867. Purchases made by schools of supplies for their own use are not subject to sales tax. 1954-56 Ga. Op. Att’y Gen. 868. Southern Governors’ Conference is a cooperative agency of the chief executives of the southern states, and purchases by its various agencies are equivalent to purchases by the Executive Department of this state, and are exempt from sales and use tax. 1960-61 Ga. Op. Att’y Gen. 547. Officer and noncommissioned officer clubs are instrumentalities of the United States and immune from state taxation. 1960-61 Ga. Op. Att’y Gen. 550. Purchases by the nonappropriated Athletic Fund of the Board of Corrections are not subject to sales tax. 1960-61 Ga. Op. Att’y Gen. 551 (decided under Ga. L. 1951, p. 360). Purchases by Southern Interstate Nuclear Board are equivalent to purchases by state and are exempt from sales and use taxes. 1962 Ga. Op. Att’y Gen. 555. Sales to the University Hospital, Augusta, Georgia, are exempt. 1954-56 Ga. Op. Att’y Gen. 850. American National Red Cross is not liable for Georgia sales tax on its purchases because it is a federal instrumentality for purposes of immunity from state taxation. 1980 Op. Att’y Gen. No. 80-28. Purchases by a corporation operating a golfing facility on a municipally-owned course are subject
to sales tax. 1969 Op. Att’y Gen. No. 69-208. Georgia Seed Development Commission taxable. - Since the Georgia Seed Development Commission does not operate with appropriated government funds, it is subject to taxes imposed under Ga. L. 1951, p. 360 (see now O.C.G.A. § 48-8-1 et seq.). 1971 Op. Att’y Gen. No. 71-72. Federal Excise Tax Federal gallonage tax on intoxicating liquors is an excise tax. Therefore, it is excluded in computation of gross sales for sales tax purposes, provided that it is billed to the consumer separately from the selling price. 1954-56 Ga. Op. Att’y Gen. 851. Sales to Nonprofit Hospitals, Nursing Homes, etc. Registration with commissioner necessary for exempt status. - Nonprofit organizations are not, because of their status as such, exempt from sales and use taxes. When the organization is not registered with the commissioner as a dealer, one who sells to it must collect the tax. 1971 Op. Att’y Gen. No. U71-143. Sales to University System of Georgia Exemption of purchases made with donated funds. - Since the Woman’s College of Georgia is an educational unit of the University System of Georgia, it can make purchases tax free from any funds which the Foundation of the Woman’s College of Georgia, Inc. might donate to it. 1965-66 Op. Att’y Gen. No. 66-221. Sales to Private Colleges or Universities Category of sales transactions exempted. - Exemption for sales of property to be used exclusively for educational purposes by certain colleges and universities does not exempt a type of property but a category of sales transactions. The sales tax is a transaction tax imposed upon retail sales of tangible personal property and not a property tax. Thus, this exemption
applies only to sales transactions in which the purchaser is a private college or university within the meaning of the provision who uses the property or services exclusively for educational purposes. 1980 Op. Att’y Gen. No. 80-101. Sales to Private Elementary and Secondary Schools Instruction must be considered equal substitute for that received in public schools. - School which does not provide general instruction for children which could be considered an equal substitute for instruction received in public schools is not entitled to a sales tax exemption. 1968 Op. Att’y Gen. No. 68-270. Sales by Religious Institutions or Denominations Exemption of sales of religious papers inapplicable to purchases by publishing organization. - Ga. L. 1953, Jan.-Feb. Sess., p. 182, § 1 does not provide an exemption of purchases made by organizations publishing religious papers. Only the sale of the religious paper itself is exempted. 1952-53 Ga. Op. Att’y Gen. 480; 1954-56 Ga. Op. Att’y Gen. 866. Sale of Fuel and Supplies Used by Ships Exemption inapplicable to fishing ships. - This section relieves such ships as are engaged in trade between ports in this state and ports in other states of the United States or its possessions. Even assuming that fishing ships ply the high seas, such ships do not fall within the exemption provided in this section. 1954-56 Ga. Op. Att’y Gen. 853. Sales of Transportation Equipment Apparent intent behind O.C.G.A. § 48-8-3(32) was to provide for situations when due to size or other reasons the vehicle could not reasonably be removed by means other than its own motive power. The exemption would prevent the purchaser from being deemed to have taken delivery in Georgia (so as to incur
tax liability) and put the purchaser on the same basis as other nonresident purchasers taking delivery outside Georgia. 1980 Op. Att’y Gen. No. 80-164. Ordinary meaning of the phrase “under its own power” is “under its own motive power.” 1980 Op. Att’y Gen. No. 80-164. Trailer could not qualify for exemption. 1980 Op. Att’y Gen. No. 80-164. Transportation Charges Exemption inapplicable to transportation services incident to a sale. - Transportation costs are properly included in the total amount for which the property is sold as services which are part of the sale. The exemption provided for in Ga. L. 1953, Jan.-Feb. Sess., p. 182, § 1 applies solely to those charges made for transportation services by a carrier, not incident to a sale of goods by the carrier. 1970 Op. Att’y Gen. No. 70-94. Lease or rental of vehicles not considered as rendering of transportation services. - Leasing or renting of trucks by lumber companies is subject to payment of the state sales tax, notwithstanding the fact that the goods transported are in interstate commerce, since it cannot be considered the rendering of transportation services, but is, in effect, a lease. 1952-53 Ga. Op. Att’y Gen. 242. Inconsequential Sales Incident to Service Transactions Personal service transactions which involve no sales are not within the meaning of “retail sales” or “sales at retail.” 1952-53 Ga. Op. Att’y Gen. 236. Control is test as to whether property deemed leased or used in rendering personal service. - When the owner of a bulldozer furnishing earth-moving services is at all times in complete control and direction of the machine, the transaction constitutes merely the rendition of personal services and is not a leasing of the property so as to be subject to payment of the state sales tax. 1952-53 Ga. Op. Att’y Gen. 236.
“Color separations” purchased by department stores for use in printing various advertising materials do not fall within sales and use tax exception of O.C.G.A. § 48-8-3. 1981 Op. Att’y Gen. No. 81-93. Use of bank computers by customers for consideration, when customers have complete control over operation for an allotted time, is a lease or rental of computers and is subject to Ga. L. 1951, p. 360 (see now O.C.G.A. § 48-8-1 et seq.). 1969 Op. Att’y Gen. No. 69-128. Sale of Seed, Fertilizer, Animal Feed, and Related Goods What constitutes feed for livestock. - Block salt constitutes feed for livestock and is therefore exempt from payment of state sales tax. 1952-53 Ga. Op. Att’y Gen. 236. Dog food is feed for a pet and not for livestock, and hence is not exempt from sales tax. 1957 Ga. Op. Att’y Gen. 318. Food for bees kept for production of honey is not exempt since bees are not considered livestock within the legislative intent in granting an exemption. 1962 Ga. Op. Att’y Gen. 553. What property exempt. - Portable feed mill does not fall within Ga. L. 1951, p. 360, nor any other exemption. 1954-56 Ga. Op. Att’y Gen. 831. Use of seeds and fertilizer to maintain a golf course is not exempt. 1969 Op. Att’y Gen. No. 69-208. Industrial Materials, Packaging, and Other Items Test for exemption of property used in industrial processes. - In order for tangible personal property to be exempt under Ga. L. 1951, p. 360, it must meet three tests: (1) it must be industrial material; (2) it must not be machinery or machinery repair parts; and (3) it must be used directly in the fabrication, converting, or processing of articles of tangible personal property or parts thereof for resale. 1950-51 Ga. Op. Att’y Gen. 414. If the functional purpose of the material is product-related either as a component or as coating or impregnating material, even though removed prior to sale, it is
exempt. Use for some other and distinct purpose is not sufficient for this exemption, even though the material is incidentally absorbed or coated upon the product. 1970 Op. Att’y Gen. No. 70-100. What constitutes exempt industrial materials. - Filtering cloths used in manufacturing processes are not exempt from application of sales and use tax. To be entitled to an exempt status, the material must be coated upon or impregnated into the finished product. 1962 Ga. Op. Att’y Gen. 557. Natural gas used in producing barium carbonate is not exempt under the sales tax. 1950-51 Ga. Op. Att’y Gen. 416. Knitting needles and “jacks” are not such industrial materials as are exempt under Ga. L. 1951, p. 360. 1950-51 Ga. Op. Att’y Gen. 417. Applicability of sales and use taxes to containers should be dealt with by regulations of the commissioner. 1957 Ga. Op. Att’y Gen. 320. What constitutes packaging. - Milk bottles and cartons are exempt from the sales tax. 1950-51 Ga. Op. Att’y Gen. 410. Advertising supplements purchased by department stores for insertion into local newspapers do not fall within the sales and use tax exception provided for certain “industrial materials” by O.C.G.A. § 48-8-3. 1981 Op. Att’y Gen. No. 81-93. Advertising supplement does not become a component part of the newspaper for purposes of O.C.G.A. § 48-8-3; it is a finished product when completed by the printer, and the advertising’s inclusion within the newspaper is only for distribution purposes. 1981 Op. Att’y Gen. No. 81-93. Purchase of material from out-of-state printers for distribution in Georgia. - Purchase by department stores within Georgia of advertising materials from out-of-state printers, shipped by printers to designated in-state direct mailing services, and distributed by such services to the stores’ customers in Georgia constitutes “use” in Georgia by the stores within the meaning of O.C.G.A. § 48-8-2(12). 1981 Op. Att’y Gen. No. 81-93.
Sale of Antipollution Machinery and Equipment Mere certification by pollution control agency insufficient when primary purpose is not pollution control. - Board of tax assessors must exempt property used in or a part of any facility which has been certified by a pollution control agency as necessary and adequate to eliminate or reduce air or water pollution, if it finds from all the circumstances surrounding the case that the facility was installed for the primary purpose of eliminating or reducing pollution. If it finds that the facility, even
though certified, was not installed or constructed for that primary purpose, but for another purpose, such as increasing production, with only an incidental intent to control pollution, then it must find that the exemption does not apply. 1969 Op. Att’y Gen. No. 69-325. What constitutes antipollution machinery or equipment. - Purchase of soda ash (commercial anhydrous sodium carbonate) for use in reducing or eliminating water pollution is not exempt from sales tax as soda ash is neither machinery nor equipment. 1973 Op. Att’y Gen. No. U73-18.
RESEARCH REFERENCES Am. Jur. 2d. 67B Am. Jur. 2d, Sales and Use Taxes, §§ 86, 90, 91, 96, 99 et seq. ALR. State tax on goods purchased by, or for the benefit of, the federal government, or on the privilege of conducting the business in connection with which the sales are made, 56 A.L.R. 587; 140 A.L.R. 621. Co-operative corporations or associations formed by producers of agricultural products as within provisions of taxing statutes regarding agricultural products or producers, 100 A.L.R. 439. Deductibility of freight charges in determining amount of gross sales or receipts for purposes of statutes making gross sales or receipts the subject or measure of a tax, 102 A.L.R. 768. Exemption of charitable organization from taxation or special assessment, 108 A.L.R. 284. What is a municipal corporation within constitutional or statutory tax exemption provisions, 108 A.L.R. 577. Construction and application of terms in tax statute, “compounding,” “preparing,” “distilling,” and the like, descriptive of the production or processing of food, drugs, or other chemical products, 108 A.L.R. 1074. Hospital as within tax exemption provision not specifically naming hospitals, 144 A.L.R. 1483. Computation of sales tax, 150 A.L.R. 1311.
Tax exemption of property of religious, educational, or charitable body as extending to property or income thereof used in publication or sale of literature, 154 A.L.R. 895. Construction and application of exemption or deduction provision of general sales tax act, 157 A.L.R. 804. What transactions constitute a “sale” within operation of sales tax law provision defining a sale as including a transfer of possession, license to use, or words to that effect, 172 A.L.R. 1317. Tax exemptions and the contract clause, 173 A.L.R. 15. Sale or use tax as within tax exemption provisions of statutes other than those imposing such taxes, 1 A.L.R.2d 465. Applicability of sales tax to judicial or bankruptcy sales, 27 A.L.R.2d 1219. Items or materials exempt from use tax as used in manufacturing, processing, or the like, 30 A.L.R.2d 1439. Legislative power to exempt from taxation property, purposes, or uses additional to those specified in Constitution, 61 A.L.R.2d 1031. Validity of use tax exemption having no complementary exemption under sales tax, 85 A.L.R.2d 1043. Validity and construction of provision exempting from use tax property which is “not readily obtainable” in the state, 88 A.L.R.2d 811. Sales or use tax: deduction or exemption of discount or premium in computing amount of sales, 90 A.L.R.2d 338.
What constitutes manufacturing and who is a manufacturer under tax laws, 17 A.L.R.3d 7. Sales and use taxes: exemption of casual, isolated, or occasional sales, 42 A.L.R.3d 292. Exemption of religious organization from sales or use tax, 54 A.L.R.3d 1204. Validity of municipal admission tax for college football games or other college sponsored public events, 60 A.L.R.3d 1027. Applicability of sales tax to “tips” or service charges added in lieu of tips, 73 A.L.R.3d 1226. What constitutes direct use within meaning of statute exempting from sales and use taxes equipment directly used in production of tangible personal property, 3 A.L.R.4th 1129. Eyeglasses or other optical accessories as subject to sales or use tax, 14 A.L.R.4th 1370. What constitutes newspapers, magazines, periodicals, or the like, under sales or use tax law exemption, 25 A.L.R.4th 750. Architectural drawings or illustrations
as exempt from sales or use tax, 27 A.L.R.5th 794. Sales and use tax exemption for medical supplies, 30 A.L.R.5th 494. Exemption of charitable or educational organization from sales or use tax, 69 A.L.R.5th 477. Items or materials exempt from use tax as becoming component part or ingredient of manufactured or processed article, 89 A.L.R.5th 493. Parts and supplies used in repair as subject to sales and use taxes, 113 A.L.R.5th 313. Cable television equipment or services as subject to sales or use tax, 23 A.L.R.6th 165. Validity, construction, and application of sales, use, and utility taxes on retail transactions of internet sellers and internet access providers, 30 A.L.R.6th 341. Sales and Use Tax Exemption for Kitchen Equipment or Supplies, 62 A.L.R.7th 4. Manufacturing Machinery and Equipment (MM&E) Exclusion or Exemption Under State Tax Laws - Integrated Plant Doctrine, 90 A.L.R.7th 9.