Compilation of Rules and Regulations of the State of Georgia › Department 560 - RULES OF DEPARTMENT OF REVENUE › Chapter 560-12 - SALES AND USE TAX DIVISION › Subject 560-12-2 - SUBSTANTIVE RULES AND REGULATIONS › Rule 560-12-2-.110 - Sales Tax Holidays

Current through Rules and Regulations filed through June 27, 2024
(1)
Purpose.
The purpose of this Rule is to provide guidance regarding
				the sales and use tax exemption for certain clothing, computers, computer
				components, software, school supplies, Energy Star Qualified Products, and
				WaterSense Products pursuant to O.C.G.A. §
									48-8-3(75) and
				(82).
(2)
Definitions.
For purposes of
				this Rule only:
(a) "Clothing" means all human
				wearing apparel suitable for general use and includes footwear." "Clothing"
				excludes "clothing accessories" and "clothing equipment." Examples of exempt
				and taxable items are listed in paragraph (4) of this Rule.
(b) "Clothing accessories or equipment" means
				incidental items worn on the person or in conjunction with
				"clothing."
(c) "Computer" means an
				electronic device that accepts information in digital or similar form and
				manipulates it for a result based on a sequence of instructions. Such term does
				not include cellular telephones. The term "computer" includes computer
				components that are commonly regarded as essential parts of a computer
				purchased for noncommercial home or personal use. Examples of exempt and
				taxable items are listed in paragraph (5) of this Rule.
(d) "Computer software" means a set of coded
				instructions designed to cause a computer or automatic data processing
				equipment to perform a task.
(e)
				"Covered item" means clothing, computers, computer components, prewritten
				computer software, school supplies, school art supplies, school computer
				supplies, school instructional materials, Energy Star qualified product, or
				WaterSense product.
(f) "Delivery
				charges" means charges by the seller of personal property or services for
				preparation and delivery to a location designated by the purchaser of personal
				property or services, including but not limited to transportation, shipping,
				postage, handling, crating, and packing.
(g) "Eligible property" means:
1. Articles of clothing with a sales price of
				$100.00 or less per item;
2.
				Computers, computer components, and prewritten computer software purchased for
				noncommercial home or personal use with a sales price of $1,000.00 or less per
				item;
3. School supplies, school
				art supplies, school computer supplies, and school instructional materials
				purchased for noncommercial use with a sales price of $20.00 or less per item;
				or
4. Energy Star Qualified
				Products or WaterSense Products purchased for noncommercial home or personal
				use with a sales price of $1,500.00 or less per product.
(h)
"
Energy Star Qualified
				Product" means any dishwasher, clothes washer, air conditioner, ceiling fan,
				fluorescent light bulb, dehumidifier, programmable thermostat, refrigerator,
				door, or window that is not purchased for trade, business, or resale and that
				meets the energy efficient guidelines set by the United States Environmental
				Protection Agency and the United States Department of Energy and is authorized
				to carry the Energy Star label.
(i)
				"Exemption period" for clothing, computers, computer components, prewritten
				computer software, school supplies, school art supplies, school computer
				supplies, and school instructional materials means the time period provided in
				O.C.G.A. §
										48-8-3(75)(A).
				"Exemption period" for Energy Star Qualified Products and WaterSense Products
				means the time period provided in O.C.G.A. §
										48-8-3(82)(A).
(j) "Layaway sale" means a transaction in
				which articles are set aside for future delivery to a customer who makes a
				deposit; agrees to pay the balance of the sales price over a period of time;
				and, at the end of the payment period, receives the merchandise.
(k) "Prewritten computer software" means
				"computer software," including prewritten upgrades, that is not designed and
				developed by the author or other creator to the specifications of a specific
				purchaser. The combining of two or more "prewritten computer software" programs
				or prewritten portions thereof does not cause the combination to be other than
				"prewritten computer software." "Prewritten computer software" includes
				software designed and developed by the author or other creator to the
				specifications of a specific purchaser when it is sold to a person other than
				the specific purchaser. Where a person modifies or enhances "computer software"
				of which the person is not the author or creator, the person shall be deemed to
				be the author or creator only of such person's modifications or enhancements.
				"Prewritten computer software" or a prewritten portion thereof that is modified
				or enhanced to any degree, where such modification or enhancement is designed
				and developed to the specifications of a specific purchaser, remains
				"prewritten computer software;" provided, however, that where there is a
				reasonable, separately stated charge or an invoice or other statement of the
				price given to the purchaser for such modification or enhancement, such
				modification or enhancement shall not constitute "prewritten computer
				software."
(l) "Sales price limit"
				means the maximum sales prices for eligible property.
(m) "School art supply" means an item
				commonly used by a student in a course of study for artwork and includes only
				the following items:
1. Clay and
				glazes
2. Paints
3. Paintbrushes for artwork
4. Sketch and drawing pads
5. Watercolors
(n) "School computer supply" means an item
				commonly used by a student in a course of study in which a computer is used and
				includes only the following items:
1.
				Computer storage media
2. Handheld
				electronic schedulers, except devices that are cellular phones
3. Personal digital assistants, except
				devices that are cellular phones
4.
				Computer printers, printer paper, and printer ink
(o) "School instructional material" means
				written material commonly used by a student in a course of study as a reference
				and to learn the subject being taught and includes only the following items:
1. Reference books
2. Reference maps and globes
3. Textbooks
4. Workbooks
(p) "School supply" means an item commonly
				used by a student in a course of study and includes only the following items:
1. Binders
2. Book bags
3. Calculators
4. Cellophane tape
5. Blackboard chalk
6. Compasses
7. Composition books
8. Crayons
9. Erasers
10. Folders (expandable, pocket, plastic, and
				manila)
11. Glue, paste, and paste
				sticks
12. Highlighters
13. Index cards
14. Index card boxes
15. Legal pads
16. Lunch boxes
17. Markers
18. Notebooks
19. Paper (loose leaf ruled notebook paper,
				copy paper, graph paper, tracing paper, manila paper, colored paper, poster
				board, and construction paper)
20.
				Pencil boxes and other school supply boxes
21. Pencil sharpeners
22. Pencils
23. Pens
24. Protractors
25. Rulers
26. Scissors
27. Writing tablets
(q)
"
WaterSense Product" means a
				product authorized to bear the United States Environmental Protection Agency
				WaterSense label.