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A New Sales Tax Exemption in Georgia


 Berry College is a small private college in Georgia.

Update, 1.4.2016: The Georgia Department of Revenue has revised SUT-2015-01, a policy bulletin regarding the sales tax exemption described below.

Legislation recently approved in Georgia establishes a new sales tax exemption on certain construction materials for certain private colleges, effective July 1, 2015. A private college is defined as one having between 1,000 and 3,000 enrolled students that is operated by an organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.

Under House Bill 202, the following construction materials qualify for the exemption:

  • All construction materials that will remain at the private college after completion of the construction.
  • All construction materials that become incorporated into the real property structures of the private college.

Eligible private colleges must pay sales tax on qualifying purchases and then may claim a refund “by filing a claim for refund of tax paid on qualifying items.” The contractor must pay sales tax on qualifying construction materials at the time of purchase.

The exemption is set to expire on June 30, 2016, or when “the aggregate state sales and use tax refunded … exceeds $350,000.00, whichever occurs first.”

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photo credit: HERMANN HALL, BERRY COLLEGE via photopin (license)


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.