Georgia—Sales Tax Holiday Rules Amended

SALT Report 1701 – The Georgia Department of Revenue amended their rules governing the sales tax holiday for energy-efficient and water-efficient products that takes place this year over October 5-7. The exemption applies to noncommercial sales of energy-efficient products with the Energy Star label and, water-efficient products with the WaterSense label.

Delivery Charges

Delivery charges are not included in the purchase price of the item and should not be used to determine whether an item falls within the tax holiday price threshold. The delivery charge rules have been amended to reflect that:

  • Delivery charges associated with nontaxable sales are not taxable,
  • Delivery charges associated with taxable sales are taxable, regardless of whether the delivery charges are optional, and

If a shipment includes exempt items and taxable items, the seller must tax the percentage of the delivery charge allocated to the taxable property but is not required to tax the percentage allocated to the eligible property. The amended rules also provide guidance on how to determine the taxable part of the delivery charge.

Discounts and Rebates

Discounts offered by dealers at the time of the sale that reduce the sales price should be used to determine if the item qualifies for the tax holiday. The rules have also been amended to reflect that an “instant rebate” is actually a store discount that reduces the sales price and should be used to determine whether an item qualifies for the holiday exemption.

Remote Sales

The rules regarding remote sales have been amended to reflect that the sale of a qualifying energy-efficient product is exempt from sales tax if the full or final payment is made during the exemption period, regardless of when the customer places the order, when the seller accepts the order, when the seller charges the customer’s credit card, or when the order is delivered.

Multiple-Item Sales

The rules regarding buy one, and get one free offers have been amended to reflect that if the sales price exceeds the $1,500 sales tax holiday threshold, the purchase will not qualify for the exemption.

Reporting

The rules regarding the reporting requirements have been amended to reflect that no special reporting procedures are required and that sales resulting from the holiday should be reported as nontaxable sales.

For Further Information:

Georgia Department of Revenue – Sales Tax Holiday