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-.116 - Refunds under the Tourism Development Act

Current through Rules and Regulations filed through June 27, 2024
(1)
Purpose.
This Rule addresses
				the refund of sales tax under the Tourism Development Act ("the Act") as passed
				in 2013.
(2)
Definitions.
For purposes of this Rule only:
(a) "Agreement" means an agreement for a
				Tourism Attraction Project between the Department of Community Affairs and an
				Approved Company pursuant to O.C.G.A. §
										48-8-275.
(b) "Annual Sales and Use Tax" means remitted
				state sales and use taxes and remitted local sales and use taxes, subject to
				Paragraph (3)(g), that were generated by sales to the general public at the
				Approved Tourism Attraction during the calendar year immediately preceding the
				date of filing the Sales and Use Tax Refund claim.
(c) "Approved Company" means the entity that
				has submitted an application to undertake a Tourism Attraction Project that has
				been approved pursuant to O.C.G.A. §
										48-8-274.
				For each Tourism Attraction Project, only one company may be approved under the
				Act.
(d) "Approved Costs" means:
1.  For new Tourism Attractions:
(i) Obligations incurred for labor and to
				vendors, contractors, subcontractors, builders, suppliers, deliverymen, and
				materialmen in connection with the acquisition, construction, equipping, and
				installation of a new Tourism Attraction Project;
(ii) The costs of acquiring real property or
				rights in real property and any costs incidental thereto;
(iii) All costs for construction materials
				and equipment installed at the new Tourism Attraction Project;
(iv) The cost of contract bonds and of
				insurance of all kinds that may be required or necessary during the course of
				the acquisition, construction, equipping, and installation of a new Tourism
				Attraction Project which is not paid by the vendor, supplier, deliveryman, or
				contractor or otherwise provided;
(v) All costs of architectural and
				engineering services, including but not limited to estimates, plans and
				specifications, preliminary investigations, and supervision of construction and
				installation, as well as for the performance of all the duties required by or
				consequent to the acquisition, construction, equipping, and installation of a
				new Tourism Attraction Project;
(vi) All costs required to be paid under the
				terms of any contract for the acquisition, construction, equipping, and
				installation of a new Tourism Attraction Project;
(vii) All costs required for the installation
				of utilities, including but not limited to water, sewer, sewage treatment, gas,
				electricity, communications, and similar facilities; and off-site construction
				of utility extensions if paid for by the Approved Company; and
(viii) All other costs comparable with those
				described in this subparagraph; or
2.
				 For existing Tourism Attractions, any Approved Costs otherwise
				specified in Subparagraph 1 for new Tourism Attractions; provided, however,
				that such costs are limited to the expansion only of an existing Tourism
				Attraction and not the renovation of an existing Tourism Attraction.
(e) "Approved Tourism Attraction"
				means a Project that was approved pursuant to O.C.G.A. §
										48-8-274 and  that has since opened to the public and become operational as a Tourism
				Attraction.
(f) "Expansion" means
				the addition of equipment, facilities, or real estate to an existing Tourism
				Attraction for the purpose of increasing its size, scope, or visitor
				capacity.
(g) "Incremental Sales
				and Use Tax" means remitted state sales and use taxes and remitted local sales
				and use taxes, subject to Paragraph (3)(g), that were generated by sales to the
				general public at the Approved Tourism Attraction from the date on which
				construction of the expansion Project is completed through the end of the
				calendar year immediately preceding the date of filing the Incremental Sales
				and Use Tax Refund claim, less the remitted state sales and use taxes and
				remitted local sales and use taxes, subject to Paragraph (3)(g), that were
				generated by sales to the general public at the Approved Tourism Attraction
				during the 12-month period preceding the commencement of construction of the
				expansion Project that corresponds to the time period for which post-expansion
				sales tax was collected. Refer to Form ST-12 Tourism for examples demonstrating
				the calculation of Incremental Sales and Use Tax.
(h) "Incremental Sales and Use Tax Refund"
				means the amount equal to the lesser of the Incremental Sales and Use Tax or
				2.5 percent of the total of all Approved Costs incurred at any time prior to
				January 1 of the year during which the claim for the Incremental Sales and Use
				Tax Refund is filed.
(i) "Local
				Sales and Use Tax" means any sales and use tax, excluding the sales tax for
				educational purposes levied pursuant to Part 2 of Article 3 of Title 48,
				Chapter 8 of the Official Code of Georgia and Article VIII, Section VI,
				Paragraph IV of the Georgia Constitution, that is levied and imposed in an area
				consisting of less than the entire state, however authorized.
(j) "Renovation" means the restoration,
				rebuilding, redesign, repair, or replacement of worn elements so that the
				functionality, quality, or attractiveness of buildings or structures is
				equivalent to a former state.
(k)
				"Sales and Use Tax Refund" means the amount equal to the lesser of the Annual
				Sales and Use Tax or 2.5 percent of the total of all Approved Costs incurred at
				any time prior to January 1 of the year during which the claim for the Sales
				and Use Tax Refund is filed.
(l)
				"State tax incentive" means a tax credit allowed under Chapter 7 of Title 48 or
				a state sales tax exemption allowed under Chapter 8, Article 1 of Title
				48.
(m) "Tourism Attraction" means
				a cultural or historical site; a recreation or entertainment facility; a
				convention hotel and conference center; an automobile race track with other
				tourism amenities; a golf course facility with other tourism amenities; marinas
				and water parks with lodging and restaurant facilities designed to attract
				tourists to the State of Georgia; or a Georgia crafts and products center. The
				term excludes enterprises that are primarily devoted to the retail sale of
				goods, shopping centers, restaurants, or movie theaters.
(n) "Tourism Attraction Project" or "Project"
				means the construction or expansion of a Tourism Attraction and includes the
				real estate acquisition, including the acquisition of real estate by a
				leasehold interest with a minimum term of 30 years; the construction and
				equipping of a Tourism Attraction; the construction and installation of
				improvements to facilities necessary or desirable for the acquisition,
				construction, and installation of a Tourism Attraction, including but not
				limited to surveys; installation of utilities, which may include water, sewer,
				sewage treatment, gas, electricity, communications, and similar facilities; and
				off-site construction of utility extensions if paid for by the Approved
				Company. The term does not include the renovation of an existing Tourism
				Attraction.