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Georgia Exemptions for Health Centers, Clinics


 Georgia lawmakers renew exemptions for certain health centers.

In Georgia, a sales and use tax exemption for tangible personal property sold to certain nonprofit health centers and certain volunteer health clinics has been renewed for the period July 1, 2015 through June 30, 2018.

In order to be eligible for the exemption, a nonprofit health center must have been established (and be receiving funds) under the authority of the United States Public Health Service Act, 42 U.S.C. Section 254b. It must also be granted an exemption determination letter from the commissioner. Volunteer health clinics must meet the same qualifications, and also primarily treat indigent persons with incomes below 200% of the federal poverty level.

To claim the exemption, a qualifying nonprofit health center or volunteer health clinic must electronically provide the following information to the Georgia Department of Revenue:

  • Total number of patients treated in the previous calendar year
  • Average number of full-time employees
  • Total amount of exempt purchases made by the taxpayer during the preceding calendar year

Food

House Bill 426 also amends an exemption for food donated for hunger relief to qualified nonprofit agencies, and food donated following a natural disaster for disaster relief. For the period July 1, 2015 through June 30, 2020, eligible food is “food and food ingredients;” (in prior years, the exemption applied to prepared food).

Drugs and over-the-counter drugs are not exempt, even post-natural disaster.

Automated sales tax Software-as-a-Service (SaaS) allows businesses to quickly and efficiently process changes to sales tax rates, exemptions, and rules and regulations. Learn more.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.