Ga. Comp. R. & Regs. R. 560-12-2-.20 - Competitive Projects of Regional Significance
(1)
Purpose. This Rule only
addresses sales of tangible personal property used for and in the construction
of a competitive project of regional significance. Rule
560-12-2-.64 addresses the
exemption for sales to competitive projects of regional significance of energy
that is necessary and integral to manufacturing.
(2)
Definitions. For purposes of
this Rule only,"competitive project of regional significance" (hereinafter
"Project") means the location or expansion of some or all of a business
enterprise's operations in Georgia where the commissioner of economic
development determines that the project would have a significant regional
impact.
(3)
Construction
exemption. To qualify for exemption, property must be:
(a) used exclusively for and in the
construction of a Project; and
(b)
purchased prior to completion of the construction of the Project.
(4)
Property used
exclusively for and in the construction of a Project.
(a) Property used exclusively for and in the
construction of a Project excludes:
1.
Property brought onto the construction site, but not used in furtherance of the
completion of a Project, such as a wrench used only to repair a worker's
personal vehicle or nails that remain in the original store
packaging;
2. Property used for
administrative activities on the construction site, such as sales promotion,
general office work, credit and collection, purchasing, and clerical
work;
3. Power lines or
transformers that bring electricity into the construction site;
4. Property used for personal comfort or
convenience at the construction site, such as portable toilets, food, heaters,
and air conditioning units;
5.
Hotel accommodations;
6. Motor
vehicles; and
7. Property that is
owned or possessed by a contractor or a related party after completion of the
Project's construction.
(b) Property used exclusively for and in the
construction of a Project includes only tangible personal property that:
1. remains tangible personal property at a
Project's location after the completion of construction;
2. is incorporated into the real property
structures at a Project's location; or
3.
is used by contractors for the sole purpose of constructing a
Project's real property structures.
(5)
Letter of authorization.
Following notification from the commissioner of economic development
that a Project has been certified, the Department of Revenue may issue a letter
of authorization to each location within the Project. Sellers are required to
collect sales tax unless they take in good faith a letter of
authorization.
(6)
Expiration
of letters of authorization. A letter of authorization expires with
respect to a location within a Project when that location commences business
operations.
(7)
Contractor
purchases. A Project may authorize contractors to use the letter of
authorization to make exempt purchases. By January 31 of each year, a Project
must provide to the Department of Revenue a list of all contractors authorized
in the previous calendar year and include for each contractor the business
name, address, telephone number, and Georgia sales tax number.
(8)
Contractors' use tax
liability. Notwithstanding O.C.G.A. §
48-8-63(b)
and (c), contractors will not incur use tax
on tangible personal property qualifying for exemption under this Rule that is
purchased by or furnished to the contractor, regardless of whether the property
retains the character of tangible personal property or becomes incorporated
into real property.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.