Georgia Sales Tax Exemptions
- Sales Tax
- May 3, 2016 | Laura McCamy
The State of Georgia offers sales tax exemptions of several categories of goods designed to stimulate the manufacturing sector of the state’s economy. The machines used in manufacturing, the materials used for packaging, and the energy costs that go to manufacturing, among other items, are exempt from GA sales tax.
Sales to tax-exempt organizations, such as nonprofits and churches, are always tax-exempt in Georgia. Sales of goods and services to government entities and the state’s public university system fall under Georgia sales tax exemptions as well. Wholesale sales are, of course, tax-exempt.
As in many other states, Georgia exempts food items bought for “home consumption,” but, according the Georgia’s tax guide, “most local county sales taxes apply to food and beverages.” Translation: Groceries aren’t entirely tax-free in Georgia.
For some tax exemptions, the exempt entity needs to apply and get a Letter of Authorization from the Georgia Department of Revenue. Museums, educational institutions, nonprofit health clinics, and Daughters of the American Revolution chapters all fall into this category. When someone claims a Georgia sales tax exemption based on one of these categories, you can ask to see a copy of their Letter of Authorization.
Labor charges on repairs are not taxable in Georgia, as long as they are stated separately on the bill. You can take the sales tax off the price of your next car repair – it’s tax-exempt. Georgia sales tax exemptions also include lottery tickets, a variety of medical devices, and Girl Scout cookies, to name a few.
In fact, the list of Georgia sales tax exemptions is 15 pages long and, as you can tell, very diverse. Many of the items on the list are temporary tax exemptions that have since expired. New exemptions, both temporary and permanent, can be added to the Georgia tax code at any time. If you think the products you are selling might be tax-exempt, or if you are selling to an entity you believe might be covered by one of the Georgia sales tax exemptions, you should check this list of exemptions to see if it covers your transaction.