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-.97 - Training Schools

(a) Persons operating pilot training schools providing classroom, ground and flight instructions, including a given number of hours flight time for which no separate charge is made, are primarily engaged in providing services. Such persons are deemed to be consumers of all tangible personal property (including aircraft) purchased and used in providing such services and shall pay the tax thereon at the time of purchase.

(b) Persons operating pilot training schools providing classroom, ground and flight instructions, and exclusively following the practice of separately charging for aircraft flight time including both solo and dual instruction, are engaged both in providing services and in the rental of tangible personal property. Considering the record keeping requirements imposed by various governmental and regulatory agencies, such persons may elect to treat all such aircraft flight time which is a part of the training program as a rental of aircraft to the student. Such rental, however, must be at arm's length and based upon fair rental value. To qualify for this election, the practice of separately charging for aircraft flight time must exclusively be followed both with respect to all aircraft and all students. Aircraft (as well as accessories, tires, and repair parts therefor) employed exclusively in these type operations may be purchased for resale, free of sales or use tax. All other tangible personal property purchased and use in operation of the schools shall be taxable to same as the consumer thereof.

(c) Those schools operating under paragraph (a) which go beyond the rendition of services and lease or rent aircraft to licensed pilots and all schools operating under paragraph (b) shall register as a dealer, collect and remit the tax on the gross lease or rental charge.

(d) The sale of used aircraft and other tangible personal property is subject to the tax.

(a) Persons operating vocational schools are primarily engaged in providing services consisting of classroom instructions and the use of various types of equipment, tools, books, etc. Such persons are deemed to be consumers of all tangible personal property used, consumed, or furnished to students for use in their studies and shall pay the tax thereon at the time of purchase.

(b) When a school purchases equipment, tools, or other tangible personal property for resale to students, it shall register as a dealer, collect and remit the tax thereon.