Veterans’ guide to Georgia sales tax exemptions
- Jun 14, 2016 | Gail Cole
Qualifying United States veterans are eligible for certain exemptions from Georgia sales and use tax. However, an exemption may depend on who makes the purchase.
In Letter Ruling SUT-2016-06, the Georgia Department of Revenue explains that the sale of college textbooks is a taxable sale of tangible personal property “unless otherwise exempt.” It then continues:
“An exemption from sales and use tax is provided for ‘[s]ales to the United States government, this state, any county or municipality of this state, or any bona fide department of such governments when paid for directly to the seller by warrant on appropriated government funds.’ O.C.G.A. § 48-8-3(1). The sale of the textbooks is exempt under O.C.G.A. § 48-8-3(1) because the V.A. [Department of Veteran’s Affairs] directly pays the College for the textbooks.”
Students and sellers should note that the exemption does not apply when the student purchases the textbooks, even when the student is a veteran eligible for the exemption. Veteran students interested in benefitting from the exemption should contact the V.A.
Note that letter rulings pertain only to specific circumstances of the taxpayer who requested information, in this case a particular college in Georgia. However, letter rulings do illustrate how the department interprets the law. Taxpayers should seek the advice of the department or a tax advisor regarding their situations and questions.
Veterans with a service-connected disability are eligible for an exemption from sales and use tax for “the purchase and special adapting of a vehicle,” provided the veteran receives a VA grant for that purpose. The exemption only applies to the original grant under O.C.G.A. § 48-8-3.
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