Rule 560-12-2-.19 - Carriers(1) Common carriers purchasing tangible personal property which comes within the exemption authorized by Section 48-8-3(33)(A) of the Act, as amended, must register the file Sales and Use Tax Reports as required under these Regulations.(2) A common carrier must furnish each suppliers of exempt tangible personal property with a Certificate of Exemption (Form ST-5, as revised).(3) The tax does not apply to aircraft, watercraft, railroad locomotives and rolling stock, motor vehicles, and major components of each, which will be used principally to cross the borders of the State of Georgia in the service of transporting passengers or cargo by common carriers in interstate or foreign commerce under authority granted by the Federal Government, or to replacement parts installed by such carriers in such aircraft, watercraft, railroad locomotives and rolling stock and motor vehicles which becomes an integral part thereof.(4) The tax applies to aircraft, watercraft, railroad locomotives and rolling stock, motor vehicles and components of each and replacement parts installed by common carriers in such craft, locomotives, rolling stock and motor vehicles which will not be used principally to cross the borders of the State of Georgia in transporting passengers or cargo in interstate or foreign commerce under authority granted by the Federal Government.(5) Common carriers operating craft or vehicles, some of which qualify for exemption and some of which are subject to the tax, may purchase major components and replacement parts for inventory under a Certificate of Exemption, Form ST-5. When such components or parts are withdrawn from inventory and first applied to taxable vehicles, the cost price thereof must be included in the carrier's Sales and Use Tax Report.(6) Contract, private and other carriers must pay the tax on all tangible personal property used or consumed in their operations, irrespective of the fact that its craft or vehicles may cross the borders of the State of Georgia.(7) Carriers, including common carriers, shall pay the tax on all fuels purchased and delivered in this State and all fuels purchased outside this State and stored in this State irrespective, in either case, of the place of subsequent use.(8) The tax applies to purchases for use, consumption or storage within this State of tangible personal property used in constructing, repairing or maintaining permanent structures, including, but not limited to garages, repair shops, hangers, railroad bridges, railroad tracks, landing and communication equipment, tools and equipment, handling equipment and other tangible personal property not specifically exempt under paragraph three (3) of this regulation.(9) The tax applies to charges for the transportation of persons between two points in Georgia. Such tax must be collected and remitted by the carrier. The tax does not apply to charges for transportation of persons between a point in Georgia and a point in another state.(10) As set out in this section, the tax applies to meals, snacks, and all other food and beverage items which are purchased by a carrier or which are sold, dispensed or otherwise provided, during or in conjunction with a transportation service, to passengers purchasing transportation services. (a) Carriers that provide complimentary meals, snacks, or other food or beverage items to passengers incidental to the primary service of transportation are the consumers of such items and shall pay the tax to the carrier's suppliers of all such items which are purchased by or delivered to the carrier's suppliers of all such items which are purchased by or delivered to the carrier in Georgia, regardless of where the meals, snacks, or other food or beverage items are served. Meals, snacks, and other food and beverage items provided to passengers by carriers are considered to be complimentary and are taxable under this paragraph when:1. No separately stated charge for such items is made to the passenger in addition to the charge for the transportation, or when:2. It is the carriers' normal business practice not to reduce the price of the transportation for passengers electing not to have food and beverage service.(b) Carriers that sell meals, snacks, or other food or beverage items to passengers, and the charge for such items is collected with the ticket price for transportation, shall collect and remit the tax on the charge for the meals, snacks, or other food or beverage items, on all sales of such tickets which occur in Georgia and regardless of where the meals, snacks, or other food or beverage items are served.(c) Carriers that sell meals, snacks, or other food or beverage items to passengers, and the charge for such items is collected from the passenger at the time the food or beverage item is served to the passenger, shall collect and remit the tax on the sales price of all such items sold or served in Georgia, on trips or flights either arriving in or departing from the State of Georgia. When not otherwise reasonably determinable, the portion of such items which are sold or served in Georgia shall be determined by the ratio of miles traveled in Georgia during such trips or flights, to the total number of miles (both within and without the State of Georgia) traveled by the carrier during such trips or flights, multiplied by the carrier's total sales receipts for all such items sold (both within and without the State of Georgia) during such trips or flights. Ga. Comp. R. & Regs. R. 560-12-2-.19
O.C.G.A. Secs. 48-2-12, 48-8-3, 48-8-49.
Original Rule entitled "Carriers" adopted. F. and eff. June 30, 1965.Amended: F. Jan. 13, 1975; eff. Feb. 2, 1975.Amended: F. Feb. 12, 1990; eff. Mar. 4, 1990.Amended: F. Dec. 15, 1993; eff. Jan. 4, 1994.