Ga. Comp. R. & Regs. R. 560-12-1-.21 - Leases or Rentals

(1) Any person engaged in the business of leasing or renting tangible personal property is required to register as a dealer and is required to collect and remit the tax on gross lease or rental charges. Tangible personal property purchased exclusively for lease or rental to others may be purchased tax exempt under Certificates of Exemption.

(2)

(a) Where tangible personal property is delivered to a lessee in this State, the tax applies to the gross lease or rental charge for the term of the lease, irrespective of the fact that the tangible personal property may be later removed from this State.

(b) Any renewal of a lease of such property in this State is subject to the tax in the same manner as the original lease.

(c) Where the right to purchase leased property is included in a lease agreement, the dealer is liable for the tax on the gross lease or rental charges during the term of the lease and on the sale price of the property at the time of sale.

Notes

Ga. Comp. R. & Regs. R. 560-12-1-.21

Ga. L. 1937-38. Extra Sess., pp. 77, et seq., as amended; (Ga. Code Ann., Secs. 92-8405, 8406, 8409, 8427); Ga. L. 1951, pp. 360, 385 (Ga. Code Ann., Sec. 92-3438a).

Original Rule entitled "Leases or Rentals" was filed and effective on June 30, 1965. Amended: Rule repealed and a new Rule of the same title adopted. Filed August 26, 1974; effective September 15, 1974.