Rule 560-12-2-.79 - Schools(1) Vendors and lessors of tangible personal property to public schools, public school principals, teachers, officers and employees, public school organizations (parent, student, teacher or otherwise) and public school students (individually or as unorganized groups) shall collect the tax at the time of sale, at the sales price thereof, irrespective of the fact that same may be sold for resale. (a) Public schools, for the purpose of this regulation, include all State, county or municipal educational institutions, except such schools as may be required to register, collect, remit and report sales and use taxes.(b) A Certificate of Registration shall be granted only to those public schools having a continuity of sales of tangible personal property or charges for admission to games or entertainments and maintaining adequate facilities for collecting, remitting and reporting sales and use taxes.(c) A Certificate of Registration may be issued to a county or municipal Board of Education for reporting sales and use taxes for all schools under its jurisdiction, provided adequate records are maintained and regularly audited by the Board.(d) Exemption certificates covering purchases of tangible personal property by registered schools and Boards of Education shall be honored only when purchase is pursuant to an official purchase order signed by a person authorized to obligate the school or Board of Education for payment therefor out of public funds.(2) Purchase orders, oral or written, issued by a person duly authorized to obligate a Board of Education, municipality, county, or the State for payment of tangible personal property so purchased shall be deemed "Official Purchase Orders." However, purchase orders issued for property which does not become and remain the property of the Board of Education, municipality, county, or the State will not be considered Official Purchase Orders sufficient to exempt the property from taxation.(3) Public funds shall include what is usually referred to as "School Revolving Funds" or "Unappropriated School Funds" provided such funds are subject to audit and control of a Board of Education, municipality, county or the State.(4) Certificates of Exemption (Forms ST-5): Certificate of Exemption (Form ST-5) shall be honored only when purchases are made pursuant to Official Purchase Orders to be paid for out of public funds. Such certificates must be completed and signed by a person authorized to issue Official Purchase Orders. Item 4 should be checked, and "Board of Education, ... County, (City or State of Georgia)" inserted in the space provided for "Certificate of Registration Number".(5) School Lunches. Sales tax does not apply to school lunches sold and served to pupils or employees of public schools. Food and drink which become component parts of such lunches are also exempt from the tax and may be purchased under Certificates of Exemption (Forms ST-5).(6) School Cafeterias. Schools operating cafeterias selling meals to students and the public are required to register, collect and remit sales tax. Such cafeterias may purchase tangible personal property for resale under Certificates of Exemption (Form ST-5).(7) Snack Bars. Snack bars operated by schools, the proceeds from which go directly into "School Revolving Funds," or "Unappropriated School Funds" shall pay the tax to vendors at the time of purchase at the purchase price thereof. Any Certificates of Registration heretofore issued to schools for the purpose of reporting and remitting the tax on such sales must be returned to this office for cancellation.(8) Miscellaneous Sales. Where public schools hold doughnut sales, candy sales, carnivals, etc. and such purchases for resale are made from public funds, the tax must be paid to vendors at the time of purchase at the purchase price thereof. Proceeds from the resale of such property, which go directly into "School Revolving Funds" or "Unappropriated School Funds," are not taxable.(9) Admissions. The tax applies to all charges for admissions, voluntary contributions and donations in lieu of charges for admission to athletic events, entertainments, lectures, concerts, etc. Public schools which are not registered shall file a Miscellaneous Sales and Use Tax Report for each quarter in which such charges are made.(10) Purchases by Public Schools, School Groups, Organizations, etc. Official Purchase Orders shall not be recognized for tangible personal property such as year books, class rings, graduation gowns and caps, photographs, etc. or purchases for any school group, organization, association, or individual. The tax shall be paid to vendors on such purchases. If no tax is charged by the vendor, purchaser must declare the tax and file a "Miscellaneous" Sales Tax Report (Form ST-3).(11) P.T.A.'s, Classroom Mothers, Student Groups, etc. Where P.T.A.'s, etc. hold fund raising projects, the gross proceeds derived from charges for admission, voluntary contributions and donations in lieu of admission charges, and sales of tangible personal property, including candy, doughnuts, etc. are subject to the tax. Purchases for resale on which the tax is paid to vendors may be claimed as exemptions on Line 5 of the Sales Tax report form. "Miscellaneous" Sales Tax reports must be filed for each month in which taxable sales are made.Ga. Comp. R. & Regs. R. 560-12-2-.79
O.C.G.A. Sec. 48-2-12.
Original Rule entitled "Schools" was filed and effective on June 30, 1965.Amended: Filed January 13, 1975; effective February 2, 1975.Amended: Filed March 25, 1987; effective April 14, 1987.