TAX NEWS - January 2009

Sales Tax Contractors - State of Georgia tax

A contractor is any person who repairs property annexed to, or who annexes or arranges for the annexation of building materials to, real estate, including leased property. This includes the original construction of a building or other structure, the installation of fixtures, and the repair of a building, structure, or fixture.

Any person who contracts to furnish tangible personal property and perform services there under in constructing, altering, repairing or improving real property in this State is deemed to be the consumer of all tangible personal property used or consumed in performing such contract and shall pay the tax thereon at the time of purchase, use, storage or consumption in this State, whichever occurs first.

Every contractor or subcontractor improving real property in this State shall file an application for a Certificate of Registration (Form CRF-002) prior to his first construction activity in this State.

Click here to download or print forms relating to general, resident, and nonresident contractors. If you do not see the form you need, or for additional information and assistance, contact the Sales Tax Contract Section at 1-877-GADOR11 (1-877-423-6711) or by email to tsd-sales-tax-contractors@dor.ga.gov.


Who must comply?

General or Prime Contractor includes but is not be limited to any person entering into an agreement with the owner of a project to perform such work as described above.

Subcontractor includes any person, partnership, limited liability partnership, corporation or limited liability company who contracts with the prime or general contractor to perform all or any part of the contract of the prime or general contractor or who shall contract with a subcontractor who has contracted to perform any part of the contract entered into by the prime or general contractor or directly with another subcontractor.

Non-Resident Contractor is a general contractor, prime contractor, subcontractor or other type of construction contractor who is not a resident contractor (as defined in the Definitions section of this website) or, one who does not regularly maintain a place of business in this State.

If you perform residential miscellaneous work, you are not defined as a contractor and do not need to register as such. Regarding the installation of cabinets, if you do not make cabinets on the job site, you are not a contractor; however, you need to register to obtain a sales and use tax number.