Rule 560-12-7-.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 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.Ga. Comp. R. & Regs. R. 560-12-7-.04
O.C.G.A. Secs. 48-2-12, 48-8-141.
Original Rule entitled "Taxable Transactions" was adopted as ER. 560-12-7-0.11-.04. F. June 23, 1997; eff. July 1, 1997, to remain in effect for 120 days or until the effective date of a permanent Rule covering the same subject matter superseding this ER is adopted, as specified by the Agency.Amended: Permanent Rule of same title adopted. F. Nov. 3, 1997; eff. Nov. 23, 1997.