Rule 560-12-4-.04 - Taxable Transactions(1) Sales. (a) Sales transactions otherwise taxable under the State Sales and Use Tax Act, including both sales and leases, are taxable if the sale occurs within the MARTA area. A "sale" occurs within the MARTA area if 1. in the case of sales of tangible personal property, the transfer of title or possession, or both, takes place within the MARTA area; "Provided, however, that no tax shall be imposed upon the sale of tangible personal property which is ordered by and delivered to the purchaser at a point outside the geographical area governed by any of the local governments imposing the tax, regardless of the point at which title passes, if such delivery is made by the seller's vehicle, U.S. Mail, common carrier or by private or contract carrier licensed by the Interstate Commerce Commission or the Georgia Public Service Commission."2. in the case of leases, (a) the lease is executed within the MARTA area, or (b) the leased property is transferred to the lessee within the MARTA area.(b) A sale of tangible personal property by a seller within the MARTA area where transfer of both title and possession occurs, in good faith, outside the MARTA area is not taxable under the Rapid Transit Tax. In determining where title passes, the Uniform Commercial Code-Sales, Code 109A-2-401, will be followed.(c) All sales by a retailer through a place of business located within the MARTA area are presumed to be taxable under the Rapid Transit Tax, unless the contrary is shown by the records required herein. 1. All deliveries of tangible personal property must be made in good faith. Delivery will be presumed to have been made in accordance with the usual practices with respect to such sales unless the contrary is shown by the records required herein.2. Retailers within the MARTA area, in order to support a claim that a sale through a place of business within the Air area is not taxable under the Rapid Transit Tax are required to maintain records supporting that claim, including (i) records of the manner in which the order was placed;(ii) a copy of the order showing the name and address of the purchaser and the sales price;(iii) a copy of any agreement executed in connection with the sale which governs the passage of title and the transfer of possession;(iv) records of the manner in which delivery is made and the identity of the person who made delivery.(d) The rules stated in this provision may be illustrated as follows: 1.Example 1. A purchase order by a person outside the MARTA area is received through the mail by a MARTA area retailer. The purchase order provides that seller agrees to deliver the goods to purchaser. The order is filled by mail shipment by the seller to the purchaser. The sale is not taxable.2.Example 2. Same type of order as in Example I except that purchaser or his representative comes within MARTA area to receive the goods. The sale is taxable.3.Example 3. An order is placed with a retail outlet located outside the MARTA area. The goods are shipped in the seller's vehicles from his MARTA area warehouse to the store outside the MARTA area where the customer receives them. The sale is not taxable. If the customer, after placing the order with the branch, comes to the retailer's MARTA area warehouse to receive the goods, the sale is taxable.4.Example 4. A MARTA area retailer receives an order by mail from a location not within the MARTA area. By written agreement of the parties, the order is filled f.o.b. the seller's place of business, the seller placing the goods with a common carrier for shipment. The sale is not taxable.(2) Services. (a) Services otherwise taxable under the State Sales and Use Tax Act are taxable under the Rapid Transit Tax if the purchase of the service is made within the MARTA area. A purchase of a service occurs within the MARTA area if: 1. the services are performed within the MARTA area, or2. the obligation to perform the service is undertaken in the MARTA area by virtue of performance beginning within the MARTA area.(b) The rules stated in this provision may be illustrated as follows: 1.Example 1. A purchaser acquires within or without the MARTA area an airline ticket for transportation from a point in the MARTA area to any other point in Georgia. Under subparagraph (2)(a)2. of this regulation, the purchase is taxable under the Rapid Transit Tax. If the transportation is from a point without the MARTA area to a point within the MARTA area, the sale is not taxable.2.Example 2. A purchaser acquires within Fulton County an airline ticket for transportation between two points lying wholly outside the MARTA area. Under subparagraph (2)(a) of this regulation, the purchase is not taxable.3.Example 3. A telephone utility provides telephone service to a location within the MARTA area, but the periodic billings are made to a location outside the MARTA area. Under regulation (2)(a)1., the charge for such service is taxable. If the hypothetical is reversed so that the service is provided to a location outside the MARTA area but the billings are made within the MARTA area, the service would not be taxable.4.Example 4. A taxi operator is engaged by a passenger within the MARTA area. Performance of his service requires the operator to transport his passenger outside the MARTA area. Under regulation (2)(a)2., the services are taxable. If the hypothetical is reversed so that the taxi operator is engaged by a passenger outside the MARTA area but transports his passenger to a point within the MARTA area, the services are not taxable.(3) Admission charges. (a) Sales of tickets and charges for admission to places of amusement, sports, or entertainment, otherwise taxable under the State Sales and Use Tax Act, are taxable under the Rapid Transit Tax if the place of amusement, sports, or entertainment making the admission charge is located within the MARTA area, irrespective of where the ticket, if any, is purchased.(b) Sales of tickets within the MARTA area are not taxable under the Rapid Transit Tax if the place of amusement, sports or entertainment is not located within the MARTA area.Ga. Comp. R. & Regs. R. 560-12-4-.04
Ga. L. 1971, pp. 2082, 2083, 2084, 2092.
Original Rule entitled "Taxable Transactions" was filed and effective on March 30, 1972 as Emergency Rule 560-12-4-0.2-.04, to remain in effect for a period not longer than 120 days, as specified by the Agency.Amended: Permanent Rule of the same title adopted superseding Emergency Rule. Filed June 29, 1972; effective July 19, 1972.Amended: Filed December 24, 1974; effective January 13, 1975.