Ga. Comp. R. & Regs. R. 560-12-2-.92 - Nursing Homes, General or Mental Hospitals
(1) Definitions.
(a) Licensed Non-Profit Nursing Home.
1. A licensed non-profit nursing home means
any institution, not operated for profit, which admits for temporary residence
in the institution patients or medical referral only and for whom arrangements
have been made for medical care, and which meets the requirements and maintains
the services and facilities specified in subsections (c), (d), or (e) of
Regulation 270-3-4-.02, Official Compilation, Rules and Regulations of the
State of Georgia, as it read on March 29, 1971, and which holds a permit for
such operation as a nursing home issued by the Department of Public Health
under Regulation 270-3-4-.05, Official Compilation, Rules and Regulations of
the State of Georgia.
(b) Non-Profit General Hospital.
1. A non-profit general hospital means any
institution, not operated for profit, designed, equipped, staffed and operated
to receive persons in need of hospitalization for any physical illness or
disability for temporary residence in the institution for diagnosis, treatment,
and other offered health services, which include medical, and surgical
services, for periods continuing twenty-four (24) hours or longer under the
supervision of an active, licensed, professional, medical and nursing staff. An
institution is not a general hospital if its services are limited by policy,
practice, or the manner in which it holds itself out to the public, so that it
would fall within the classifications established under subsections (5), (6),
or (7) of Regulation 270-3-2-.03, Official Compilation, Rules and Regulation of
the State of Georgia, as it read on March 29, 1971. For example, a hospital
which limits its services to the treatment of specific illnesses is not a
general hospital. An institution may be a general hospital if admission is
limited to persons of a specific age class if with respect to that class it
performs general hospital treatment functions, which must include medical and
surgical services but which as a result of limited admission do not include the
other services typically provided by general hospitals such as obstetrical
services.
(c) Non-Profit
Mental Institution.
1. A non-profit mental
hospital means any institution, not operated for profit, which is designed,
equipped, staffed and operated for the purpose of receiving mentally ill
persons for temporary institutional residence for psychiatric and other health
services, which must include psychiatric evaluation, diagnosis and treatment,
for continuous periods of twenty-four (24) hours or longer, under the
supervision of an active, licensed, professional nursing and psychiatric
staff.
(2)
Certificate of Exemption.
(a) Application for
Certificate of Exemption.
1. Applications for
exemption by institutions described in Section (1) shall be made to the State
Revenue Commissioner on Sales Tax Form ST-NH-1. The application must contain
the following:
(i) A statement of the name
and address of the institution, the date on which the institution was first
operated, and such other information as the Commissioner may require.
(ii) A copy of the application, and all
exhibits thereto, made to the Internal Revenue Service and a copy of the
Internal Revenue Services determination letter confirming the exempt status of
the institution under the Internal Revenue Code of 1954.
(iii) A copy of any permit issued by the
Department of Public Health of the State of Georgia with respect to the
performance of the functions by virtue of which an exemption is
claimed.
(iv) A copy of the
non-profit charter or other governing instrument under which the institution is
operated.
(v) A written verified
statement of its admission policies.
(b) Upon approval of an application, a
certificate of exemption shall be issued by the Commissioner which shall
authorize tax-free purchases by the institution for the purposes described in
Section 3. Sales by dealers to institutions which have not been issued a
certificate of exemption will be presumed taxable.
(3) Scope of Exemption.
(a) Purchases. Exemption certificates are
validly used only for purchases by the institution of tangible personal
property and services for use exclusively by the institution in performing a
general nursing home or hospital treatment function. Purchases by the
institution, for example, of property for the personal use of a staff member
outside the facilities used for nursing or health services are not exempt.
Generally, property placed within a facility used for the purposes of
performing the nursing or health services will be considered exempt. The
exemption is validly used only by an institution to which the certificate has
been issued and does not affect the liability of any other person. A contractor
engaged in real property improvement for the institution is not
exempt.
(b) Sales. Sales by the
institution to which a certificate under this Section has been issued are not
exempt under this Regulation.
(c)
Multi-Function Institutions. An institution which performs a function which
would entitle it to an exemption but which performs additional non-exempt
functions, will be issued an exemption certificate. Such certificate may be
validly used only for property or services used exclusively in performing the
exempt functions and may not be used for property or services employed in
performing the non-exempt function. Continued use of the exemption certificate
for non-exempt purchases will be ground for revocation of the certificate. If a
certificate is revoked, tax paid on exempt purchases will be refunded upon a
properly supported claim for refund.
Notes
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