Rule 560-12-4-.05 - Use Tax; Collection by Dealers(1) Liability. (a) The owner or user of tangible personal property acquired by a purchase or lease made outside the MARTA area,shall be liable for a use tax under the Rapid Transit Tax upon the first instance of use, storage, consumption, or distribution of the property within the MARTA area unless the use is insubstantial.(b) "Insubstantial use" within the meaning of paragraph (1)(a) means any use occurring solely by virtue of movement of the property through the MARTA area.(c) The rules stated in the foregoing paragraphs may be illustrated as follows:1.Example 1. Y Corporation is engaged in the construction business and maintains its sole office outside the MARTA area. Y Corporation in performing a contract within the MARTA area employs certain equipment purchased by it outside the MARTA area, such as bulldozers, on the construction site. Under paragraph (1)(a), the use of the equipment is taxable.2.Example 2. Same facts as in Example 1, except that Y Corporation also has a truck which makes deliveries of construction materials from the corporation's office to the construction site and then returns to the corporation's office. Under paragraph (1)(a), use of the truck is not taxable. Use of the construction materials is taxable.3.Example 3. X Corporation maintains a warehouse in the MARTA area in which it stores supplies, not held for resale but to be used in its operations outside the MARTA area. Under paragraph (1)(a), the storage is taxable.4.Example 4. Z Corporation, a retail chain, maintains a warehouse for its retail goods outside the MARTA area. Trucks based, serviced and routed from the warehouse are used solely to make shipments from the warehouse to retail outlets in the MARTA area. Under paragraph (1)(a), the use of the trucks is not taxable. If, however,the truck is assigned to a particular retail outlet in the MARTA area for the purpose of making retail deliveries in the MARTA area from the retail outlet, even though returning at the end of the day to the warehouse, the use is taxable.5.Example 5. Same facts as in Example 4, except the warehouse is located in the MARTA area and the vehicles are used to make shipments outside the MARTA area. The use is taxable.(2) A retailer located outside the MARTA area is required to collect the use tax under the Rapid Transit Tax, but only if: (a) The retailer has a "substantial presence" within the MARTA area; and(b) The sale is of the type described in subparagraph (d) hereof.(c) A retailer shall be deemed to have a substantial presence within the MARTA area if the retailer; 1. Has a place of business located in the MARTA area.2. Solicits sales within the MARTA area by advertising within the MARTA area in the public media, by outdoor advertising within the MARTA area to induce sales to residents of the MARTA area, or by other activity within the MARTA area calculated to induce sales of goods and services into the MARTA area including the use of agents or representatives engaging in sales or promotional activities within the MARTA area; or3. Delivers goods into the MARTA area on a regular and recurring basis; or4. Meets, with respect to the MARTA area, any of the criteria established by Section 4 of the State Sales and Use Tax Act as to "dealers".(d) A retailer outside the MARTA area with a substantial presence within such MARTA area is required to collect a use tax under the Rapid Transit Tax with respect to sales, regardless of the place where title passes or possession is transferred: 1. Where the property sold is delivered, by any means, to a location within the MARTA area; or2. Where the retailer, in the course of making the sale, acquires notice that (i) The purchaser is a resident of a MARTA county; and(ii) That the property will be used, stored, or consumed by the purchaser within the MARTA area. "Notice" is acquired with the meaning of this provision if a document, executed in connection with the sale or with the extension of credit, states that the purchaser resides within the MARTA area.(e) A lessor outside the MARTA area with a substantial presence within such MARTA area is required to collect a use tax under the Rapid Transit Tax with respect to leases, regardless of where the lease is executed or property transferred, where the lessor acquires notice that the property will be used by the lessee principally within the MARTA area.Ga. Comp. R. & Regs. R. 560-12-4-.05
Ga. L. 1971, pp. 2082, 2083, 2084, 2092; O.C.G.A. Sec. 48-2-12.
Original Rule entitled "Use Tax: Collection by Dealers" was filed and effective on March 30, 1972 as Emergency Rule 560-12-4-0.2-.05, 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: F. June 16, 1994; eff. July 7, 1994.