Tax Guide for Contractors
On this page find information for resident and non-resident contractors. All contractors are required to register for a sales and use account number with the Department of Revenue (DOR). Resident contractors are not bound by the bonding requirements of nonresident contractors.
Types of Contractors
There are two types of Contractors:
Resident - a taxpayer engaged in contracting real property work that have a bona fide place of business in Georgia through the maintaining of a permanent domicile or business facility.
Non-Resident - a taxpayer engaged in contracting real property work that does not have a bona fide place of business in Georgia through the maintaining of a permanent domicile or business facility for at least one year prior to bidding on work.
Information for Contractors
Resident Contractor
Effective July 1, 2006 general contractors are NOT required to withhold retainage or accept surety bonds to ensure payment of Sales and Use Tax for materials used in performing construction contracts in excess of $250,000.00 as a result of the amendment to the law. Resident Contractors are not required to obtain a compliance notification letter from Georgia Department of Revenue for 3rd quarter 2006 and beyond.
Submit a Non-Resident Application
Nonresident contractors must file an application for authorization to perform a job for any contract exceeding $10,000. The Non-Resident Application to complete is form ST-C 214-1.
Submit bond using the Georgia Tax Center. After login, look in the Sales & Use Tax Account Block, select "See More/Submit Bond."
Gather and submnit the following:
- $10.00 for each contract
- A valid Non-Resident Tax bond (10% of the contract amount)
- ST-C 214-4 Consent to Service of Process Form
- Appropriate additional Contractor form
- ST-C 214-9 Sole Proprietors only
- ST-C 214-8 Corporations only
- ST-C 214-10 Partners only
- ST-C 214-11 Members only
If a nonresident contractor has multiple or continuous contracts, DOR will accept a blanket bond for 10% of the total anticipated contracts, but never less than $10,000. Blanket bonds are good faith estimates of the anticipation of future projects and they are renewable every year.
Related Information
Examples for Sales and Use Tax Contractors
General Contractor Sales and Use Tax Withholding Requirements
Rules and Regulations 560-12-1-.09, 560-12-2-.26 and 560-12-3- .36