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-.43 - Foreign or Non-Resident Contractors and Subcontractors

Current through Rules and Regulations filed through June 27, 2024
(1) "Contractor" includes nonresident
				individuals, partnerships, firms or corporations, or associations engaged in
				the business of the construction, alteration, repairing, dismantling or
				demolition of buildings, roads, bridges, viaducts, sewers, water and gas mains,
				streets, disposal plants, water filters, tanks and towers, airports, dams,
				water wells, pipe lines, and every other type of structure, project,
				development or improvement coming within the definition of real property and
				personal property, including such construction, alteration, or repairing of
				such property to be held either for sale or rental, and further including all
				subcontractors so engaged.
(2)
				Application for Authorization to Perform Contract (Form S&UT-348-1) must be
				filed for each contract amounting to more than $10,000.00 and a fee paid in the
				sum of $10.00 for each such contract. A good and valid bond shall be executed
				by a Surety Company authorized to do business in this State in the amount of
				10% of the contract price or the compensation to be received for each contract.
				Nonresident contractors engaging in multiple contracts, contingent or unit
				basis where the compensation to be received cannot be determined, a blanket
				bond may be executed in a sufficient amount, within the discretion of the
				Commissioner of Revenue but under no circumstances to be less than $10,000.00.
				Contractors so engaged must report each such contract on or by the first day of
				March of the subsequent calendar year and pay a fee of $10.00 for each such
				contract. Nonresident contractors and subcontractors must file a "Consent to
				Service of Process" appointing the Secretary of State of Georgia as the true
				and lawful agent upon whom may be served any summons or other lawful
				process.
(3) Upon posting the
				required bond and payment of the registration fee, nonresident contractors and
				subcontractors shall be furnished a "Qualification Acknowledgement", Form
				S&UT-348-2, which shall be maintained by a person in authority at the job
				site for inspection by any duly authorized officer or agent of the State of
				Georgia, or any political subdivision thereof, to evidence payment of the
				required fee and posting of the Surety Bond for the contract so
				indicated.
(4) A contract in
				accordance with the terms of this Act shall not be deemed to be completed until
				such time as a written notice of contract completion has been furnished to the
				Revenue Department by the contractor, accompanied by an affidavit that all fees
				and taxes incurred in connection with the contract have been paid to the State
				of Georgia and all political subdivisions thereof.
(5) Upon completion of every contract
				amounting to more than ten thousand dollars ($10,000), the contractor or
				subcontractor shall furnish to the Commissioner of Revenue a written notice of
				contract completion, together with an affidavit that all fees and taxes
				incurred in connection with the contract have been paid to the State of Georgia
				and all political subdivisions thereof. A contract is not deemed to be
				completed in accordance with the terms of said Act until such time as the
				contract completion has been reported in the aforementioned manner, nor shall
				the provision for automatic bond release apply until two (2) years after the
				receipt of such notice by the Commissioner.
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. O.C.G.A. Secs.
				  48-2-12 and 
				  48-13-32.