Taxability of Haunted Houses in Georgia

Monday, October 31st, 2016

New Mexico Department of Revenue.

The Georgia Department of Revenue has released guidance explaining that the "paranormal entity" exemption applies to certain haunted houses.

Georgia provides tax exemptions for some entities, including paranormal entities. To qualify as an exempt paranormal entity, a taxpayer must be (1) an individual, (2) deceased, and (3))scientifically impossible.

Auditors conceded that haunted houses were scientifically impossible, but they argued that houses were not "individuals." The Department determined that "individual" was not limited to human individuals. Courts had already ruled that "individuals" could include nonhuman creatures such as the boogeyman, so houses could also be individuals for this exemption.

Auditors also argued that haunted houses were not "deceased." Haunted houses, though macabre, are generally considered to be alive, or at least undead, rather than deceased. However, haunted houses that do not have a living room are considered deceased for tax purposes and can qualify for the exemption. As a result, though most haunted houses are taxable, some can be exempt paranormal entities.

This has been a holiday humor piece from TTR. We hope you have a happy and safe Halloween!

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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.

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