Stay up to date with sales tax: Join our mailing list!

Georgia Issues Guidance on Construction Exemption for Private Colleges


Construction

Georgia has provided guidance on the state’s temporary sales and use tax exemption for construction materials used in the construction of buildings at a qualifying private college in Georgia. Private colleges must be located in Georgia, be operated by an organization exemption from Federal tax under IRC Section 501(c )(3) and have an annual enrollment between 1,000 and 3,000 students.  For the state-level sales and use tax, the exemption applies from July 1, 2015 through June 30, 2016, or until the amount of state tax refunded pursuant to the exemption exceeds $350,000, whichever occurs first. For local sales and use tax, the exemption applies from July 1, 2015 through June 30, 2016, without limitation. The policy bulletin outlines which private colleges qualify for the exemption. An exemption certificate will not be issued for this exemption. The exemption is administered by refund only. To take advantage, a college must first notify the Department of Revenue of its intent to file a refund claim. After taking this step, the college may file a refund claim for tax that it or its contractor paid on qualifying construction materials. Only the college can seek a refund of tax paid on construction materials covered by the exemption. Contactors cannot partake in the exemption. Refund claims can be filed by a college within three years following the date the tax was paid. The Department will not consider refund claims submitted before January 4, 2016. (Policy Bulletin SUT-2015-01, Georgia Department of Revenue, September 15, 2015)

(09/22/2015)
(New)
Scroll to Top