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-.90 - Bona Fide Private Elementary and Secondary Schools

(1) For the purpose of this regulation, a bona fide private elementary school means one regularly established for the purpose of teaching basic subjects above the kindergarten and below the secondary school commonly embracing 6 to 8 grades; bona fide private secondary school means one regularly established for the teaching of basic subjects between elementary and collegiate, including a junior college.

(2) Any bona fide private elementary or secondary school eligible to receive tax deductible contributions should make application to the Department of Revenue, Sales and Use Tax Unit, for exemption from payment of sales and use tax on its purchases of tangible personal property and services to be used exclusively for educational purposes, and food for school lunch program to be consumed on the premises by pupils and employees of such school.

(3) The application shall be by letter, stating the name and address of the school, the date opened, number of grades equivalent to public schools, number of class rooms, number of teachers regularly employed, average number of students, number of months open each year. There must be attached a copy of a Certificate issued by the U.S. Internal Revenue Service, or the Georgia Income Tax Unit, stating that an Income Tax exemption is granted for educational purposes and that contributions to the school are deductible for income tax purposes.

(4) Upon approval of an application, the Sales and Use Tax Unit will furnish the school with a "Letter of Authorization", (Form ST-USC-1). The school must furnish one photographic copy of the letter to each supplier of tangible personal property or services in order to relieve him from collecting the tax. Misuse of a Letter of Authorization shall be ground for cancellation.

(5) The exemption does not extend to sales made to Parent Teacher Associations, Class Room Mothers, Student Groups or other school groups, or to sales made on school property through vending machines, snack bars, or other such outlets.