Georgia Repeals and Amends Food-Related Rules to Conform To SST Agreement

The Georgia Department of Revenue has repealed a sales and use tax rule on employees’ meals and beverages and amended sales and use tax rules on meals and food exemptions to conform with the Streamlined Sales and Use Tax (SST) Agreement, effective April 4, 2012. The rule on meals has been amended to include the phrase “food and food ingredients” as used in the SST Agreement. Employers are now liable for use tax on food and food ingredients that they provide to employees free of charge. If the exact cost of the food and food ingredients provided to an employee is not represented in the employer’s records, the cost is deemed to be 50% of the retail sales price of the food and food ingredients. The rule on food exemptions has been amended to remove references to “eligible food and beverages” and to add SST food-related definitions such as “alcoholic beverages” “dietary supplement” and “food and food ingredients.” As of January 1, 2011, sales of food and food ingredients to persons for consumption off premises are not subject to state sales and use tax. Rather, they are subject to local sales and use tax. Other amendments include sales and use tax exemptions for transactions such as food purchases using food stamps and sales of food to public school pupils. (Reg. §560-12-2-.34, Georgia Department of Revenue, repealed as noted; Reg. §§60-12-2-.65 and 560-12-2-.104, Georgia Department of Revenue, effective as noted)

Posted on May 21, 2012