Prison Commissaries Must Collect Sales Tax in Georgia

Monday, June 23rd, 2014

 
 
A prison interior.
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Georgia
General

The Georgia Department of Revenue ("Department") recently released a letter ruling stating that prison commissaries must collect sales tax.

Prison commissaries sold tangible personal property to prisoners. The prisoners received funds for these purchases from family members, friends, church members, and other sources. The taxpayer asked whether these sales were exempt.

Georgia taxes sales of tangible personal property unless an exemption applies. The Department ruled that because there was no specific exemption for these sales, the sales were taxable. The commissary could choose to absorb the tax, but unless it did so, it had to collect tax on these sales.

https://etax.dor.ga.gov/TaxLawAndPolicy/LetterRulings/SalesAndUse/Georgia_Letter_Ruling_No_SUT_2012-11-01-01_Prison_Commissaries.pdf


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TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

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