Georgia Issues Guidance Regarding Exempt Nonprofit Organizations

The Georgia Department of Revenue has issued guidance regarding exempt nonprofit organizations. Generally, Georgia does not grant a sales or use tax exemption to churches, religious, charitable, civic and other nonprofit organizations. These organizations are required to pay sales tax on all purchases of tangible personal property. When nonprofit organizations engage in making retail sales, they are required to collect and remit sales tax as appropriate.

Georgia does provide limited exemptions from the payment of Georgia sales and use tax for qualifying nonprofit organizations, including:

• Licensed nonprofit orphanages, adoption agencies, and maternity homes
• Licensed, nonprofit in-patient general hospitals, mental hospitals, nursing homes, and hospices
• Nonprofit private schools any combination of grades 1-12
• Nonprofit blood banks
• Nonprofit groups whose primary activity is raising money for public libraries
• Nonprofit organizations primarily providing services to the developmentally disabled
• Nonprofit health centers
• Nonprofit volunteer health clinics
• Nonprofit food banks
• Construction materials for qualifying private colleges, zoological institutions and aquariums

Georgia also provides limited exemptions from the collection of Georgia sales and use tax for certain nonprofit organizations making qualifying sales, including:

• Boy Scouts and Girl Scouts
• Licensed nonprofit orphanages, adoption agencies, and maternity homes (Limited to 30 days in any one calendar year.)
• Parent Teacher Organizations (Example: Nonprofit Booster Clubs comprised of parents and teachers)
• Religious institutions (Limited to 30 days per fundraising activity in any calendar year.)
• Nonprofit groups whose primary activity is raising money for public libraries
• Public and private schools K-12

Qualified nonprofit organizations will want to make sure they are taking advantage of the above exemptions on their purchases or sales, as applicable. (Release, Georgia Department of Revenue, July 2020)