Rule 560-12-7-.06 - Sales Prior to Effective Date(1) The Educational Local Option Tax shall not apply to a sale of goods when the contract was entered into and delivery was completed prior to such effective date of the tax. Nor shall the tax apply to the purchase price, sale or use of building and construction materials when the contract pursuant to which the materials are purchased or used was advertised for bid prior to approval of the levy of the tax by the school board and the contract was entered into as a result of a bid actually submitted in response to such advertisement prior to approval of the levy of the tax.(2) The rules stated in this regulation may be illustrated as follows: (a)Example 1. A written lease agreement executed prior to an effective date of Educational Local Option Tax in a taxing district is taxable beginning with the first rental payment made on or after an effective date to the extent such payment represents use on or after an effective date of such tax.(b)Example 2. A written contract which was executed prior to the effective date of Educational Local Option Tax in a taxing district and which required deliveries of goods in intervals, is taxable under the Educational Local Option Tax with respect to deliveries made on or after an effective date of such tax. The transaction would not be taxable if the purchases were building and construction materials sold and, subsequently, used exclusively to perform a specific bona fide contract which was advertised for bid prior to approval of the levy of such tax by the school boards, and the contract was entered into as a result of a bid actually submitted in response to such advertisement prior to the approval of the levy of the tax.(c)Example 3. An admission charge for an event is taxable if the event is held on or after an effective date of the Educational Local Option Tax regardless of when a ticket, if any, was sold.(3) The use in the taxing district of tangible personal property acquired by purchase outside the taxing district is not taxable under the use tax provision of the Educational Local Option Tax Act unless delivery was made or passage of title occurred on or after an effective date of such tax in the taxing district.Ga. Comp. R. & Regs. R. 560-12-7-.06
O.C.G.A. Secs. 48-2-12, 48-8-141.
Original Rule entitled "Sales Prior to Effective Date" was adopted as ER. 560-12-7-0.11-.06. 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.