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 560-12-7 - EDUCATIONAL LOCAL OPTION TAX
Rule 560-12-7-.04 - Taxable Transactions
Universal Citation: GA Rules and Regs r 560-12-7-.04
Current through Rules and Regulations filed through March 20, 2024
(1) Sales.
(a) Sales transactions otherwise taxable
under the State Sales and Use Tax Act, including both sales and leases, are
taxable if the sale occurs within a taxing district. A "sale" occurs within a
taxing district if:
1. In the case of sales
of tangible personal property, the transfer of title or possession, or both,
takes place within the taxing district; provided, however, that no tax shall be
imposed upon the sale of tangible personal property which is ordered by and
delivered to the purchaser by the seller at a point outside the geographical
area governed by any of the local governments imposing the tax, regardless of
the point at which title passes, when such delivery is made by the seller's
vehicle, U.S. Mail, common carrier or by private or contract carrier licensed
by the Interstate Commerce Commission or the Georgia Public Service
Commission;
2. In the case of
leases, the lease is executed within the taxing district, or the leased
property is transferred to the lessee within the taxing district.
(b) A sale of tangible personal
property by a seller within the taxing district where transfer of both title
and possession occurs, in good faith, outside the taxing district is not
taxable under the Educational Local Option Tax Act. In determining where title
passes, the Uniform Commercial Code-Sales, O.C.G.A. §
11-2-401, will be followed.
(c) All sales by
a retailer through a place of business located within the taxing district are
presumed to be taxable under the Educational Local Option Tax Act unless the
contrary is shown by the records required herein.
1. All deliveries of tangible personal
property must be made in good faith. Delivery will be presumed to have been
made in accordance with the usual practices with respect to such sales unless
the contrary is shown by the records required herein.
2. Retailers within the taxing district, in
order to support a claim that a sale through a place of business within the
taxing district is not taxable under the Educational Local Option Tax Act are
required to maintain records supporting that claim, including:
(i) records of the manner in which the order
was placed;
(ii) a copy of the
order showing the name and address of the purchaser and the sales
price;
(iii) a copy of any
agreement executed in connection with the sale which governs the passage of
title and the transfer of possession;
(iv) records of the manner in which delivery
is made and the identity of the person who made delivery.
(d) The rules stated in this
provision may be illustrated as follows:
1.
Example 1. A purchase order by a person outside the taxing
district is received through the mail by a taxing district retailer. The
purchase order provides that the seller agrees to deliver the goods to the
purchaser. The order is filled by mail shipment by the seller to the purchaser.
The sale is not taxable.
2.
Example 2. Same type of order as in Example 1 except that the
purchaser or purchaser's representative comes within the taxing district to
receive the goods. The sale is taxable.
3.
Example 3. An order is placed
with a retail outlet located outside the taxing district. The goods are shipped
in the seller's vehicles from the dealer's warehouse to the store outside the
taxing district where the customer receives them. The sale is not taxable. If
the customer, after placing the order with the branch, comes to the dealer's
warehouse in the taxing district to receive the goods, the sale is
taxable.
4.
Example 4.
A dealer located in a taxing district receives an order by mail from a location
outside that taxing district. By written agreement of the parties, the order is
filled F.O.B. the seller's place of business, the seller placing the goods with
a common carrier for shipment. The sale is not taxable.
(2) Services.
(a) Services otherwise taxable under the
State Sales and Use Tax Act are taxable under the Educational Local Option Tax
Act if the purchase of the service is made inside the taxing district. A
purchase of a service occurs inside the taxing district if:
1. the services are performed inside the
taxing district or;
2. the
obligation to perform the service is undertaken in the taxing district by
virtue of performance beginning inside the taxing district.
(b) The rules stated in this
provision may be illustrated as follows:
1.
Example 1. A purchaser acquires inside or outside a taxing
district a bus ticket for transportation from a point within a taxing district
to any other point in Georgia. Under paragraph (2)(a)2 of this regulation, the
transaction is taxable under the Educational Local Option Tax Act. If the
transportation is from a point outside a taxing district to a point inside a
taxing district, the transaction is not taxable under the Educational Local
Option Tax Act.
2.
Example 2.
A purchaser acquires inside a taxing district a bus ticket for
transportation between two points lying wholly outside such taxing district.
Under paragraph (2)(a)1. of this regulation, the purchase is not taxable under
the Educational Local Option Tax Act.
3.
Example 3. A telephone
utility provides telephone service to a location inside the taxing district,
but the periodic billings are made to a location outside the taxing district.
Under paragraph (2)(a)1 of this regulation, the charge for such service is
taxable. If the example is reversed so that the service is provided to a
location outside the taxing district but the billings are made inside the
taxing district, the service would not be taxable under the Educational Local
Option Tax Act.
4.
Example 4.
A taxi operator is engaged by a passenger inside a taxing district.
Performance of this service requires the operator to transport his passenger
outside the taxing district. Under paragraph (2)(a)1 of this regulation, the
service is taxable. If the example is reversed so that the taxi operator is
engaged by a passenger outside a taxing district but transports his passenger
to a point inside a taxing district, the service is not taxable under the
Educational Local Option Tax Act.
(3) Admission charges.
(a) Sales of tickets and charges for
admission to places of amusement, sports, or entertainment, otherwise taxable
under the State Sales and Use Tax Act, are taxable under the Educational Local
Option Tax Act if the place of amusement, sports, or entertainment making the
admission charge is located inside a taxing district, irrespective of where the
ticket, if any, is purchased.
(b)
Sales of tickets within a taxing district are not taxable under the Educational
Local Option Tax Act if the place of amusement, sports or entertainment is not
located inside a taxing district.
O.C.G.A. Secs. 48-2-12, 48-8-141.
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