Rule 560-12-2-.85 - Trading Stamp Companies(1) The tax does not apply to amounts charged by a trading stamp company to a dealer which entitles the dealer to distribute to its customers trade stamps that are redeemable by the trading stamp company in cash or premiums.(2) The trading stamp company is the consumer of and shall pay tax on the purchase of all trade stamps, stamp collection books, premium catalogs, advertising and promotional materials and the like that it uses, or furnishes to its dealers for which no specific charge is made. When a trading stamp company makes a separate charge for trade stamps, trade stamp collection books, premium catalogs, promotional or advertising materials, or any other item of tangible personal property, in addition to any charges made under the first paragraph of this rule, it shall collect the tax thereon from its customer. In such cases, the trading stamp company is entitled to credit for tax previously paid on the purchase of the items sold.(3) When a trading stamp company accepts trade stamps or a combination of trade stamps and cash in exchange for premiums,the transaction is subject to the tax and the trading stamp company shall collect the tax from the person surrendering the stamps, based on the total value of the stamp book and any cash paid. The trading stamp company shall not pay the tax on the purchase of such premiums, but should furnish its suppliers resale certificates as provided by 560-12-1-.08.Ga. Comp. R. & Regs. R. 560-12-2-.85
Ga. L. 1937-38, Extra Sess., pp. 77, et seq., as amended; Ga. Code Ann., Secs. 92-8405, 8406, 8409, 8427; Ga. L. 1951, pp. 360, 385; Ga. Code Ann., Sec. 92-3438a.
Original Rule was filed on June 30, 1965.