Compilation of Rules and Regulations of the State of Georgia
Department 560 - RULES OF DEPARTMENT OF REVENUE
Chapter 560-12 - SALES AND USE TAX DIVISION
Subject 560-12-2 - SUBSTANTIVE RULES AND REGULATIONS
Rule 560-12-2-.82 - Advertising Display Devices, Sign Manufacturers, and Painters

(1) An advertising agreement which calls for furnishing of advertising displays under which the advertiser is entitled to a given quantity of exposures in a general area is considered a service which is not taxable as a lease of tangible personal property.

(2) An agreement which requires an outdoor advertising company to display an advertiser's message only and grants to the advertiser neither the right to possess nor use the personalty upon which the advertising message is displayed is considered a service which is not taxable as a lease of tangible personal property.

(3) The person furnishing services is the consumer of all tangible personal property used or consumed in displaying messages and shall pay the tax at the time of purchase.

(4) An agreement which grants to a party advertiser the rights to possess, control or use described personalty at a stated location is considered a lease and the gross lease or rental charge is taxable.

(5) The sale of special equipment which becomes the property of the advertiser is taxable.

(6) Charges made for service of a device owned by an advertiser are not subject to the tax. The person furnishing such service shall pay the tax on all tangible personal property used or consumed in furnishing such services.

(7) The tax does not apply to charges for painting signs on buildings, trucks, windows, doors and the like. Materials and supplies used in performing such services are taxable at the time of purchase.

(8) The tax applies to the retail sales price of signs, posters, and other advertising displays.