Rule 560-12-5-.04 - Taxable Transactions(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 Local Jurisdiction. A "sale" occurs within a Local Jurisdiction if: 1. in the case of sales of tangible personal property, the transfer of title or possession, or both, takes place within the Local Jurisdiction; provide, however, that no tax shall be imposed upon the sale of tangible personal property which is ordered by and delivered to the purchaser 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, if 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 Local Jurisdiction, or the leased property is transferred to the lessee within the Local Jurisdiction.(b) A sale of tangible personal property by a seller within the Local Jurisdiction where transfer of both title and possession occurs, in good faith, outside the Local Jurisdiction is not taxable under the Local Option Tax Act. In determining where title passes, the Uniform Commercial Code-Sales, Code 109A-2-401, will be followed.(c) All sales by a retailer through a place of business located within the Local Jurisdiction are presumed to be taxable under the 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 Local Jurisdiction, in order to support a claim that a sale through a place of business within the Local Jurisdiction is not taxable under the 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 Local Jurisdiction is received through the mail by a Local Jurisdiction retailer. The purchase order provides that seller agrees to deliver the goods to 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 purchaser or his representative comes within the Local Jurisdiction to receive the goods. The sale is taxable.3.Example 3. An order is placed with a retail outlet located outside the Local Jurisdiction. The goods are shipped in the seller's vehicles from his Local Jurisdiction warehouse to the store outside the Local Jurisdiction where the customer receives them. The sale is not taxable. If the customer, after placing the order with the branch, comes to the retailer's Local Jurisdiction warehouse to receive the goods, the sale is taxable.4.Example 4. A Local Jurisdiction retailer receives an order by mail from a location not within that Local Jurisdiction. 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 Local Option Tax Act if the purchase of the service is made within the Local Jurisdiction. A purchase of a service occurs within the Local Jurisdiction if: 1. the services are performed within the Local Jurisdiction or;2. the obligation to perform the service is undertaken in the Local Jurisdiction by virtue of performance beginning within the Local Jurisdiction.(b) The rules stated in this provision may be illustrated as follows: 1.Example 1. A purchaser acquires within or without a Local Jurisdiction an airline ticket for transportation from a point in a Local Jurisdiction to any other point in Georgia. Under subparagraph (2)(a)2. of this regulation, the purchase is taxable under the Local Option Tax Act. If the transportation is from a point without a Local Jurisdiction to a point within a Local Jurisdiction, the purchase is not taxable under the Local Option Tax Act.2.Example 2. A purchaser acquires within a Local Jurisdiction an airline ticket for transportation between two points lying wholly outside such Local Jurisdiction. Under subparagraph (2)(a) of this regulation, the purchase is not taxable under the Local Option Tax Act.3.Example 3. A telephone utility provides telephone service to a location within the Local Jurisdiction, but the periodic billings are made to a location outside the Local Jurisdiction. Under regulation (2)(a)1., the charge for such service is taxable. If the hypothetical is reversed so that the service is provided to a location outside the Local Jurisdiction but the billings are made within the Local Jurisdiction, the service would not be taxable under the Local Option Tax Act.4.Example 4. A taxi operator is engaged by a passenger within a Local Jurisdiction. Performance of this service requires the operator to transport his passenger outside the Local Jurisdiction. Under regulation (2)(a)1., the service is taxable. If the hypothetical is reversed so that the taxi operator is engaged by a passenger outside a Local Jurisdiction but transports his passenger to a point within a Local Jurisdiction, the service is not taxable under the 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 Local Option Tax Act if the place of amusement, sports, or entertainment making the admission charge is located within a Local Jurisdiction, irrespective of where the ticket, if any, is purchased.(b) Sales of tickets within a Local Jurisdiction are not taxable under the Local Option Tax Act if the place of amusement, sports or entertainment is not located within a Local Jurisdiction.Ga. Comp. R. & Regs. R. 560-12-5-.04
Ga. L. 1975, pp. 984, 985, 993, 994.
Original Rule entitled "Taxable Transactions" was filed on January 12, 1976; effective February 1, 1976.