The Georgia sales tax holiday sales tax holiday begins Thursday. Have questions about it? Here is perhaps everything you need to know to take advantage of it, courtesy of the Georgia Dept. of Revenue’s website:
Q. What is a sales tax holiday?
Q. When will Georgia have a sales tax holiday?
Q. What merchandise qualifies for the exemption?
A. The sales tax exemption pertains to items in three categories: Articles of Clothing. The exemption applies to articles of clothing and footwear with a sales price at time of purchase of $100 or less per item. There is no monetary limit on a purchase as long as the price of a single item does not exceed $100. Clothing accessories such as handbags, umbrellas, etc. are not exempt. See the lists of exempt and taxable items for more information.Personal Computers. A single $1,500 or less purchase of a personal computer (PC) and/or related accessories is exempt. The exemption does not require the purchase of a “personal computer base unit” (tower, desktop, laptop) and is extended to peripheral devices such as modems, printers, speakers, non-recreational software, etc. If a single purchase exceeds the $1,500 maximum the entire purchase is taxable. A single purchase is considered the total of all sales made to a customer in one visit to a store. See the lists of exempt and taxable items for more information.General School Supplies. The exemption applies to the purchase of general school supplies with a sales price at the time of purchase of $20 or less per item. There is no monetary limit on the purchase as long as the price of a single item does not exceed $20. See the lists of exempt and taxable items for more information.
Q. Is there a list of items that qualifies for the exemption?
Q. Are there any differences in this Holiday (2009) from the one in 2008?
Q. Can businesses or other commercial establishments take advantage of the exemptions?
Q. What kind of records must a dealer/retailer maintain?
A. The dealer/retailer is not required to obtain an exemption certificate on sales of covered items during the exemption period. However, the dealer’s/retailer's records must clearly identify the type of item sold, the date on which the item was sold, the sales price of all items and, if applicable, any tax charged.
Q. Will there be any special reporting requirements for a dealer/retailer on these exempt sales?
A. No special reporting procedures are necessary to report exempt sales made during the exemption period. Exempt sales are to be reported in Part C of Form ST-3 on Line A and the applicable Local County Taxes Line or on Line 2 of Form ST-3EZ. Taxable sales and exempt transactions should be reported as currently required by law.
Q. Do the sales tax exemptions apply to catalog sales, Internet sales and other similar sales?
A. Yes, provided the sale is completed during the four-day holiday period. A completed sale means the retailer has taken an action to immediately fill the order and the consumer has paid for the product during the holiday period.
Q. Are delivery charges subject to tax during the holiday period? A. The taxation of shipping charges depends upon the taxability of the item being sold. On transactions that include exempt and taxable purchases, the shipping charges will be presumed to apply to the exempt item. For example, two articles of clothing are purchased for $110 and $60 with a shipping charge of $5. Since one of the articles of clothing qualifies for theexemption, the shipping charge will not be taxable.
Q. Are charges for alterations included in the sales price of covered items?
A. Yes. For example, a pair of slacks is purchased for $95 and a $10 charge is made for alterations at the time of the sale. The purchase would not qualify for the exemption because the sales price of $105 exceeds the $100 per item exemption limitation.
Q. How will exchanges of items purchased during the sales tax holiday be handled when returned after the end of the holiday period?
A. If a customer purchases an exempt item during the sales tax holiday and later exchanges the item for the same item (different size, color, etc.), no additional tax will be due. However, if the customer returns the item after the sales tax holiday and receives credit towards the purchase of a different item, the sales tax will apply on the total sales price of the newly purchased item.
Q. How will the sales tax holiday apply to rain checks?
A. The issuance of a rain check during the sales tax holiday will not qualify an item for the exemption if the item is actually purchased after the sales tax holiday has ended. Items that qualify for the exemption which are paid for during the sales tax holiday using a rain check will be exempt from sales or use tax regardless of when the purchaser receives the item.
Q. Does an item placed on lay-away during the sales tax holiday qualify for the exemption?
Q. Can retailers elect not to participate in the sales tax holiday and collect the sales tax from their customers on eligible items during the sales tax holiday period?
A. No. No dealer may legally collect Georgia sales tax on a covered item sold during the exemption period. Customers should take their receipt to the dealer who charged Georgia Sales Tax and ask for a refund of the tax. Should the dealer refuse to make the refund, please contact the Department of Revenue at (404) 417-6601 for further instructions. Please note that any dealer that erroneously collects tax on exempt items during the exempt period must remit it to the State.
Q. Is the sale of an exempt item on a “90-days same as cash” basis or some similar transaction exempt from tax if purchased during the sales tax holiday?
A. Yes, provided the contract obligating the buyer to pay is signed during the sales tax holiday and delivery of the item is made during the sales tax holiday. Another example would be if the retailer accepts the order during the sales tax holiday for immediate shipment, even if the delivery is made after the sales tax holiday.
Q. Must the item being sold be delivered to the customer during the four-day sales tax holiday in order for the exemption to apply?
Q. If a customer buys a personal computer or other qualified items during an exemption period, plus unrelated equipment and supplies, is everything considered tax-free?
Q. Are cables, power cords, and surge protectors exempt during the sales tax holiday period?
A. Yes. See the lists of exempt and taxable items for more information.
Q. Is the purchase of a printer exempt if you do not purchase a computer?
A. Yes. The holiday exemption does not require the purchase of a computer when purchasing computer accessories such as a printer, modem, monitor or other such accessories. See the lists of exempt and taxable items for more information.
Q. Does a backup battery qualify for the exemption during the sales tax holiday period?
A. Yes. A battery backup purchased for a personal computer is tax exempt. See the lists of exempt and taxable items for more information.
Q. Who may buy a personal computer or other qualified items tax-free under the sales tax holiday?
A. Any individual may buy a personal computer or other qualified items at retail stores in Georgia tax-free, through the mail, or over the Internet, provided the items are for personal, non-business use and are purchased during the exemption period. The personal computer or other qualified items may not be purchased tax exempt by a business or an individual for business use.
Q. Must an individual be a resident of Georgia in order to purchase a personal computer or other items tax-free?
A. Residency does not determine if a purchase is tax-free. Residents and nonresidents alike may purchase a personal computer or other qualified items, for non-business use, tax-free during the exemption periods.
Q. Does a customer who orders a personal computer or another qualified item and pays for it with cash or credit during the sales tax holiday receive the exemption?
Q. What can a customer do if a retailer charges tax on a personal computer or other qualified items during the tax-free period?
A. Customers should take their receipts to the dealers who charged Georgia sales tax and ask for a refund of the tax. Should the retailer refuse to make the refund, please contact the Department of Revenue at (404) 417-6601 for further instructions.
For more information, click here: https://etax.dor.ga.gov/salestax/holiday/2009/faq.aspx