Exemption of Agricultural Commodities Not Sold as Finished Product to Ultimate Consumer; "Agricultural Commodity" Defined

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  2. Georgia Code
  3. Revenue and Taxation
  4. Sales and Use Taxes
  5. State Sales and Use Tax
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  7. Exemption of Agricultural Commodities Not Sold as Finished Product to Ultimate Consumer; "Agricultural Commodity" Defined

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  1. For the purposes of this Code section, the term "agricultural commodity" means horticultural, poultry, and farm products and livestock and livestock products.
  2. Each agricultural commodity sold by any person other than a producer to any other person who purchases not for direct consumption but for the purpose of acquiring raw products for use or for sale in the process of preparing, finishing, or manufacturing the agricultural commodity for the ultimate retail consumer trade is exempted from all provisions of this article including payment of the tax applicable to the sale, storage, use, transfer, or any other utilization or handling of the commodity, except when the commodity is actually sold as a marketable or finished product to the ultimate consumer.

(Ga. L. 1951, p. 360, § 12; Code 1933, § 91A-4516, enacted by Ga. L. 1978, p. 309, § 2.)

OPINIONS OF THE ATTORNEY GENERAL

Retail sales are not exempt.

- Retail sales by farmers or any other persons, including those who buy from the farmer and resell to the public, and those merchants who employ persons to operate stalls on the premises of state farmers' markets, are subject to sales tax. 1969 Op. Att'y Gen. No. 69-260.

RESEARCH REFERENCES

Am. Jur. 2d.

- 67B Am. Jur. 2d, Sales and Use Taxes, §§ 80, 86, 187.

ALR.

- Legislative power to exempt from taxation property, purposes, or uses additional to those specified in Constitution, 61 A.L.R.2d 1031.


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