Selling fireworks in Georgia
- Jun 13, 2016 | Gail Cole
In preparation for 4th of July celebrations, the people of Georgia can now purchase fireworks without crossing state lines. The sale of fireworks in the state was legalized in time for July 4, 2015. Now, however, the Georgia Department of Revenue may amend the rule pertaining to fireworks sales in order to conform to recently enacted House Bill 960 and address interest rates, sales for resale, and refunds.
The proposed amendment does not change the items available for sale or the fact that sales and use tax and the fireworks excise tax apply to sales of these items (the fireworks excise tax applies even when sales and use tax does not). However, they do seek to adjust the rate of interest due when firework tax payments are late: instead of a flat 1% interest rate, the rate would adjust with the prime rate.
Sales for resale
In addition, resale liability would be as follows (Section 10):
The burden of proof that a sale is not a sale at retail falls on the seller unless the purchaser provides the seller with a properly completed exemption certificate, and the purchaser has a valid sales tax registration number at the time of purchase. The seller must also “have no reason to believe that the purchaser does not intend to resell it in his or her regular course of business.”
Finally, the proposed amendment states, “Fireworks excise tax erroneously or illegally assessed and collected and interest on the tax will be refunded.” Under existing law, fireworks excise tax “may be refunded.” Refund claims must be filed electronically via the Georgia Tax Center website.
The public has until July 14, 2016, to comment on the amendments. Additional information is available at the Georgia Department of Revenue, Notice FED 2016-001.
It’s up to sellers to keep apprised of all changes to sales and use and excise tax rates, rules and regulations. Automation provides the most responsive solution. Learn more.