Ga. Comp. R. & Regs. R. 560-12-5-.06 - Sales Prior to Effective Date

(1) The Local Option Tax shall not apply to a sale of goods when the contract was entered into prior to the effective date of the tax, and delivery was completed prior to such effective date; nor to the purchase price, sale or use of building and construction materials when the contract pursuant to which the materials are purchased or used was advertised for bid prior to approval of the levy of the tax by the county or municipality and the contract was entered into as a result of a bid actually submitted in response to such advertisement prior to approval of the levy of the tax.

(2) The rules stated in the amended regulation may be illustrated as follows:

(a) Example 1. A written lease agreement executed prior to effective date of Local Option Tax in a Local Jurisdiction is taxable beginning with the first rental payment made on or after effective date to the extent such payment represents use on or after effective date of such tax.

(b) Example 2. A written contract which was executed prior to the effective date of Local Option Tax in a Local Jurisdiction and which required deliveries of goods in intervals, is taxable under the Local Option Tax with respect to deliveries made on or after effective date of such tax unless such building and construction materials were sold, and subsequently used exclusively, to perform a specific bona fide contract which was advertised for bid prior to approval of the levy of such tax by the county or municipality and which was entered into as a result of a bid actually submitted in response to such advertisement prior to the approval of the levy of the tax.

(c) Example 3. An admission charge for an event is taxable if the event is held on or after effective date of Local Option Tax regardless of when a ticket, if any, was sold.

(3) The use in the Local Jurisdiction of tangible personal property acquired by purchase outside the Local Jurisdiction is not taxable under the use tax provision of the Local Option Tax Act unless delivery was made or passage of title occurred on or after effective date of such tax in the Local Jurisdiction.

Notes

Ga. Comp. R. & Regs. R. 560-12-5-.06

Ga. L. 1978, pp. 640, 641, 642, 1678, 1679; Chapters 91A-4602, 91A-4604, 91A-4605 and 91A-4618 of Georgia Public Revenue Code.

Original Rule entitled "Sales Prior to Effective Date" was filed on January 12, 1976; effective February 1, 1976. Amended: Rule repealed and a new Rule of the same title adopted. Filed January 7, 1980; effective January 27, 1980.