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Georgia Sales Tax Obligations For Nonprofit Fundraising Events: Admissions Charges, Galas and Silent Auctions

Georgia Sales Tax Obligations For Nonprofit Fundraising Events: Admissions Charges, Galas and Silent Auctions

Nonprofit organizations that hold events to raise money must be cognizant of sales tax collection obligations.  Many nonprofits that are exempt from federal income tax under I.R.C. § 501(c)(3) (“NFP” or “organization”) think that their federal exemption from paying income tax extends to sales tax.  Some NFPs hold annual events and, as such, they do […]

Georgia Sales Tax Obligations Tied to Fundraising Activities and Events: Merchandise Sales and Gifts to Donors

Georgia Sales Tax Obligations Tied to Fundraising Activities and Events: Merchandise Sales and Gifts to Donors

Nonprofit organizations that hold fundraisers and/or sell merchandise face sales tax payment and collection obligations.  The verbiage of the statutes and regulations often stymie an organization seeking to understand when payment and/or collection obligations apply.   Unfortunately, in frustration, many nonprofit opt to overlook the requirements.  Also, some organizations think that they are not obligated to […]

Tax Obligations to Georgia Department of Revenue when Settling Syndicated Conservation-Easement Cases with IRS

Beginning in July 2024, the Internal Revenue Service (IRS) has notified participants in Syndicated Conservation Easements (SCE) of a new settlement initiative for non-docketed cases (i.e., cases under audit). SCE partnerships with a case pending in court cannot participate in the new settlement offer. But the IRS has also proposed a settlement offer, perhaps less [...]
Nonresident Construction Contractors in Georgia: Avoiding Sales/Use Tax Mishaps

Nonresident Construction Contractors in Georgia: Avoiding Sales/Use Tax Mishaps

In Georgia, nonresident contractors and subcontractors must adhere to filing requirements before starting any work on a project.  The Nonresident Contractors Act, part of the Georgia Revenue Code, and clarified by Georgia Department of Revenue regulations impose the requirements.  In this issue of “Pass the Salt,” we examine the nonresident contractor/subcontractor filing obligations. What is [...]
Remote Seller Sales/Use Tax Obligations to Other States – Ten Takeaways from 2020 – Part Two (Takeaway Points 6 through 10)

Remote Seller Sales/Use Tax Obligations to Other States – Ten Takeaways from 2020 – Part Two (Takeaway Points 6 through 10)

Businesses that make sales to customers in other states must monitor and comply with other states’ economic nexus laws - laws that require collection and reporting obligations that did not otherwise exist prior to 2018.  This two-part article (read Part One here) covers key takeaways from our experiences in dealing with economic nexus matters in [...]
Remote Seller Sales/Use Tax Obligations to Other States – Ten Takeaways from 2020 – Part One (Points 1 through 5)

Remote Seller Sales/Use Tax Obligations to Other States – Ten Takeaways from 2020 – Part One (Points 1 through 5)

For businesses that sell to customers in other states, now is the time to take action (not taken previously) to comply with other states’ economic nexus laws.  These laws require remote sellers to collect sales/use tax and file sales tax returns, even though the remote sellers do not have physical presence in the state.  This [...]
Big-Sky Problems in using a Montana LLC to Avoid Georgia’s 7% Tax on Car Purchases

Big-Sky Problems in using a Montana LLC to Avoid Georgia’s 7% Tax on Car Purchases

Most people associate the term Big Sky with Montana’s vast landscape and incredible vistas.  Some Georgia residents have made Montana more than just a travel destination.  They have formed a Montana LLC to avoid the 7% title ad valorem tax fee when buying a luxury car or recreational vehicle. Under Georgia tax law, a purchaser [...]
Georgia Sales Tax on Beach Condos/Cottage Rentals, Mountain Cabin Rentals and Private Home Rentals

Georgia Sales Tax on Beach Condos/Cottage Rentals, Mountain Cabin Rentals and Private Home Rentals

Under Georgia tax law, a provider of room rentals and accommodations must collect sales tax on the rental charge.  Typically, one immediately associates these transactions with hotels and motels.  Other businesses and individuals, too, may engage in such sales and be required to collect the tax.  Businesses, such as property management companies, manage properties, including [...]