Ga. Comp. R. & Regs. R. 560-12-2-.43 - Foreign or Non-Resident Contractors and Subcontractors

(1) "Contractor" includes nonresident individuals, partnerships, firms or corporations, or associations engaged in the business of the construction, alteration, repairing, dismantling or demolition of buildings, roads, bridges, viaducts, sewers, water and gas mains, streets, disposal plants, water filters, tanks and towers, airports, dams, water wells, pipe lines, and every other type of structure, project, development or improvement coming within the definition of real property and personal property, including such construction, alteration, or repairing of such property to be held either for sale or rental, and further including all subcontractors so engaged.

(2) Application for Authorization to Perform Contract (Form S&UT-348-1) must be filed for each contract amounting to more than $10,000.00 and a fee paid in the sum of $10.00 for each such contract. A good and valid bond shall be executed by a Surety Company authorized to do business in this State in the amount of 10% of the contract price or the compensation to be received for each contract. Nonresident contractors engaging in multiple contracts, contingent or unit basis where the compensation to be received cannot be determined, a blanket bond may be executed in a sufficient amount, within the discretion of the Commissioner of Revenue but under no circumstances to be less than $10,000.00. Contractors so engaged must report each such contract on or by the first day of March of the subsequent calendar year and pay a fee of $10.00 for each such contract. Nonresident contractors and subcontractors must file a "Consent to Service of Process" appointing the Secretary of State of Georgia as the true and lawful agent upon whom may be served any summons or other lawful process.

(3) Upon posting the required bond and payment of the registration fee, nonresident contractors and subcontractors shall be furnished a "Qualification Acknowledgement", Form S&UT-348-2, which shall be maintained by a person in authority at the job site for inspection by any duly authorized officer or agent of the State of Georgia, or any political subdivision thereof, to evidence payment of the required fee and posting of the Surety Bond for the contract so indicated.

(4) A contract in accordance with the terms of this Act shall not be deemed to be completed until such time as a written notice of contract completion has been furnished to the Revenue Department by the contractor, accompanied by an affidavit that all fees and taxes incurred in connection with the contract have been paid to the State of Georgia and all political subdivisions thereof.

(5) Upon completion of every contract amounting to more than ten thousand dollars ($10,000), the contractor or subcontractor shall furnish to the Commissioner of Revenue a written notice of contract completion, together with an affidavit that all fees and taxes incurred in connection with the contract have been paid to the State of Georgia and all political subdivisions thereof. A contract is not deemed to be completed in accordance with the terms of said Act until such time as the contract completion has been reported in the aforementioned manner, nor shall the provision for automatic bond release apply until two (2) years after the receipt of such notice by the Commissioner.

Notes

Ga. Comp. R. & Regs. R. 560-12-2-.43

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. O.C.G.A. Secs. 48-2-12 and 48-13-32.

Original Rule entitled "Foreign or Nonresident Contractors and Subcontractors" was filed and effective June 30, 1965. Amended: Filed January 13, 1975; effective February 2, 1975. Amended: F. Jun. 17, 1994; eff. July 7, 1994.