Georgia Taxes Refurbished Replacement Parts

Friday, February 20th, 2015

An image of car parts.

The Georgia Department of Revenue ("Department") released a letter ruling discussing the taxability of refurbished replacement parts.

The taxpayer sold equipment with optional maintenance agreements to customers. Under these agreements, the taxpayer would replace worn, obsolete, or defective equipment parts with new or refurbished parts. The taxpayer refurbished these used parts into replacement parts for other customers. The taxpayer asked whether tax was due on these refurbished parts.

Georgia taxes retail sales of tangible personal property. "Sale" means any transfer of title or possession in any manner in exchange for something of value. "Retail sale" means a sale for any purpose other than resale. "Resale" means a sale for the purpose of reselling property to consumers. If a purchaser does not pay sales tax at the time of purchase, use tax is due upon the first instance of use.

The refurbished replacement parts were taxable because they were acquired in a retail sale. The parts became the taxpayer's property in exchange for replacement parts. This was a sale. The taxpayer did not resell the parts; it repaired them for reuse. Because this was not a sale for resale, it was a taxable retail sale.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

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.

Please visit TTR on the web at or call 866.578.8193.

Data Survey Services Not Taxable in South Carolina

Monday, June 24th, 2019 -The South Carolina Department of Revenue recently ruled that business data survey services were non-taxable pr...

Senior Center Cafeterias are Taxable in Missouri

Friday, June 21st, 2019 -Missouri's Director of Revenue recently issued a letter ruling taxing the sale of cafeteria food by a 501(c)(3...

Hot-Air Balloon Rides in Missouri are Taxable When...

Wednesday, June 19th, 2019 -Missouri recently released a letter ruling addressing the taxation of hot-air balloon rides. The taxpayer was ...

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...

Marketplace Facilitators to Collect Tax in Vermont

Thursday, June 13th, 2019 -Vermont recently passed a bill requiring marketplace facilitators to collect and remit sales tax on retail sal...