Georgia Letter Ruling: LR SUT-2026-01

Date Issued: June 10, 2026

This letter is in response to your request for guidance on the application of Georgia sales and use tax on certain transactions.

Taxpayer was granted 501(c)(3) tax exempt status by the Internal Revenue Service (“IRS”) in [Year 1]. Taxpayer requested an IRS Letter of Determination as a 501(c)(3) on [Date] and provided the Department a photocopy of the IRS Letter of Determination confirming Taxpayer’s 501(c)(3) status. Taxpayer is a parent, teacher, student association that supports band related music education programs at [High School 1], a public high school that is part of [County A School System] in [City A]. Taxpayer has been supporting marching, concert, and jazz music education programs at [High School 1] since [Year 1]. It also supports band music education programs at [Middle School 1] and [Middle School 2] in [City B]. These middle schools feed into [High School 1]. Collectively all three schools are known as [Schools ABC]. Taxpayer supports over [redacted] band students and [redacted] parents across [Schools ABC]. Taxpayer includes all full-time band music teachers within the [Schools ABC].

Taxpayer engages in fundraising activities in support of programs at constituent schools within [Schools ABC]. Such fund-raising activities include but are not limited to purchasing reselling food and beverages at football game concessions. The funds raised are then used for instrument acquisitions, equipment purchases and rentals, music instructors, supplies, services, professional memberships, and other expenses associated with running large, public school-based music education programs.

Taxpayer provides a Form ST-5 Sales Tax Certificate of Exemption to certain dealers (vendors) for purchases of items for resale. Most dealers accept these certificates and do not charge sales tax. Some dealers decline Taxpayer's Form ST-5 certificates and for others, Taxpayer has not had the opportunity to submit the Form ST-5.

Taxpayer asserts that both their purchase for resale and subsequent sales at concessions are not subject to sales tax. Taxpayer is requesting clarification on its tax exemption status in relation to collecting Georgia sales and use tax on sales in the State of Georgia.

Analysis

All retail purchases and sales of tangible personal property are taxable unless provided for otherwise. [1] A retail sale or a sale at retail means a sale to a consumer or to any person for any purpose other than for resale of tangible personal property or certain services. [2] A sale means any transfer of title or possession, transfer of title and possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means of any kind of tangible personal property for a consideration. [3] Tangible personal property means personal property that can be seen, weighed, measured, felt, or touched or that is in any other manner perceptible to the senses. [4]

1. Resale Sales Tax Exemption 

Tangible personal property bought for resale is not subject to Georgia sales and use tax. [5] Taxpayer buys food and beverages to sell at home football concession stands. Such purchases constitute purchases for resale.

2. Parent-Teacher Organization

Pursuant to Code Section 48-8-3(56)(A), Georgia sales tax is not imposed on sales by any parent-teacher organization qualified as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.

Taxpayer is a high school parent teacher organization in Georgia and has had Section 501(c)(3) tax exempt status from the IRS since [Year 1]. The IRS has not rescinded its tax-exempt status since it was granted in [Year 1]. Thus, Taxpayer is a qualifying Section 501(c)(3) tax-exempt organization that can avail itself of the exemption set forth in Code Section 48-8-3(56).

Ruling

Ruling 1

Taxpayer bought tangible personal property for resale purposes and thus, these sales are not subject to sales tax.

Ruling 2

Taxpayer is a parent-teacher organization that is tax exempt under Section 501(c)(3) of the Internal Revenue Code and thus does not have to collect sales tax on sales pursuant to Code Section 48-8-3(56)(A).

[1] O.C.G.A. §§ 48-8-1 and 48-8-30(a).

[2] O.C.G.A. § 48-8-2(31).

[3] O.C.G.A. § 48-8-2(33).

[4] O.C.G.A. § 48-8-2(37).

[5] O.C.G.A. §§ 48-8-38(a) and 48-8-2(31).