Morris, Manning & Martin
The determination of sales and use tax liability generally turns on whether the transaction in question is a sales transaction versus a service transaction or whether the property involved is tangible personal property versus intangible personal property. Even if the transaction in question involves the retail sale of tangible personal property, liability from sales and use tax may still be avoided if one (1) of the seventy-two (72) statutory exemptions contained in the Code applies. Purchase of aircraft for business or personal use. As discussed elsewhere in today?s program, Georgia sales tax is designed to impose tax upon the ultimate consumer of tangible personal property, regardless of whether the ultimate consumer uses the tangible personal property for business or personal use. The Georgia Revenue Code provides several sales tax exemptions, which are directed primarily at manufacturers. Some of these exemptions apply to the items of tangible personal property sold by the manufacturer. Georgia law imposes a tax on the gross lease or rental charge for tangible personal property. The person to whom the tangible personal property is leased or rented is liable for the tax and must pay the tax to the person who leases or rents the property. Professional services rendered by Hospitals, physicians and other health care providers are exempt from sales and use taxation.