Georgia Department of Revenue Sales and Use Tax Division by xdk14252

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									 State of Georgia
 Department of Revenue




BART L. GRAHAM, COMMISSIONER
State of Georgia
Department of Revenue




           S. Shawn Douglas
     Georgia Department of Revenue
       Alcohol & Tobacco Division
   1800 Century Boulevard- Suite 4235
         Atlanta, Georgia 30345
             (404) 417-4870
       shawn.douglas@dor.ga.gov
   State of Georgia
   Department of Revenue

   MISSION OF INFORMATION SESSION

To provide information that will include recent
Revenue Regulation changes and to facilitate
communication between the Department of
Revenue and the Alcohol Industry in regard to
these changes.
      State of Georgia
      Department of Revenue

      OBJECTIVES FOR LEARNING SESSION
• To provide information for repealed Revenue Rules of most
  interest to the alcohol industry.
• To provide information for amended and adopted Revenue
  Rules of most interest to the alcohol industry.
• To provide information on upcoming public comment periods
  for the final phases of the Revenue Regulations modernization
  project.
• To facilitate a brief question and answer session limited to the
  information provided during the learning session.
      State of Georgia
      Department of Revenue

   WHAT WILL NOT BE ADDRESSED DURING
         THE LEARNING SESSION
• Amended Regulations that only changed because of an address
  change.
• Amended Regulations that only changed because of ATD name
  change.
• Repealed Regulations that address tax stamps for beverage
  alcohol.
• Amended Regulations that update federal forms and acronyms
  for federal agencies that have changed.
• Complaints, hypothetical scenarios, and subjects outside the
  learning session that are time intensive. We will be glad to
  meet after the session, time permitting to listen or schedule a
  personal appointment for complex matters.
      State of Georgia
      Department of Revenue

        Purpose of Revenue Regulation Project

• To correct terminology and definitions no longer recognized by
  the Department of Revenue and the Georgia Alcohol Industry.
• To repeal outdated and antiquated regulations that are no longer
  enforceable or do not correlate with current market trends
• To amend existing rules and to clarify vague and ambiguous
  regulations that have been misinterpreted and misapplied in the
  past instances.
• To adopt new rules to address changing marketing trends for the
  alcohol industry and regulatory issues for enforcement
  personnel.
• To provide a current Beverage Alcohol Code book for industry
  members and taxpayers of the State of Georgia.
State of Georgia
Department of Revenue




 GENERAL PROVISIONS
      State of Georgia
      Department of Revenue


 GENERAL PROVISIONS 560-2-2-.01 AMENDED

560-2-2-.01 Definitions.

• This amended rule expands the definitions to include
  certain statutory terms and to provide clarity concerning
  terms used throughout the rules and in the administration
  of the rules.
        State of Georgia
        Department of Revenue
  GENERAL PROVISIONS 560-2-2-.09 AMENDED
560-2-2-.09 Licensing Qualifications. Amended.
• This amended rule sets forth the general requirements for parties seeking to
   apply for a license for beverage alcohol and non-beverage alcohol.
• Paragraph (1) sets forth that everyone is required to have a license.
   Paragraph (2) requires all applicants to provide all information requested.
   Paragraph (3) addresses the need to have the same name and addresses
   provided to local jurisdictions also be provided to the state. Also
   incorporated in this rule are certain provisions which were stricken from
   560-2-3-.12.
• Further, the rule now includes all legal entities instead of only corporations,
   and requests that the Commissioner be notified of any status change of the
   registered agent. Although previously set forth in this rule, this modification
   specifies that all licensees are required to a report any substantial change in
   the business in accordance with the provisions of Rule 560-2-2-.38.
   Paragraph (6) reflects the inclusion of Rule 560-2-2-.26, which is being
   repealed.
• This rule also clarifies the basis for denial of a license to include a time limit
   on past criminal offenses and sets forth an appeal process.
      State of Georgia
      Department of Revenue

GENERAL PROVISIONS 560-2-2-.24. REPEALED
560-2-2-.24 Wholesale Brand Combinations

• This regulation was repealed because the industry currently
  uses fuel-saving methods of delivery by making joint
  deliveries of brands in the same vehicle.
      State of Georgia
      Department of Revenue


 GENERAL PROVISIONS 560-2-2-.29 AMENDED
560-2-2-.29 Failure to Comply with Tax Laws.

• Eliminates Rule 560-2-2-.22 by combining it with 560-2-2-.29

• Adds additional paragraph that addresses penalties for failure to
  meet obligations imposed by the Alcoholic Beverage Code and
  any tax law of the State of Georgia.
      State of Georgia
      Department of Revenue


 GENERAL PROVISIONS 560-2-2-.30 AMENDED
   560-2-2-.30 Damaged, Lost or Stolen Goods; Notification.

• This regulation addresses the need to report missing alcohol
  products.

• The purpose of the amended regulation is to bring the language
  of the regulation into conformity with the Georgia Alcoholic
  Beverage Code.
        State of Georgia
        Department of Revenue


          GENERAL PROVISIONS 560-2-2-.32
               560-2-2-.32 Measurement of Distances.
•   This rule was repealed and a new rule adopted in its place with
    the same name and number.
•    The new rule clarifies how the Department will apply the
    statute for measuring distances for applications submitted after
    March 31, 2007.
•   Any pending applications or previously approved licenses will
    be subject to the pre-April 1, 2007 method of measuring
    distances.
•   The new wording of this rule brings it into conformity with the
    Georgia Alcoholic Beverage Code.
      State of Georgia
      Department of Revenue

 GENERAL PROVISIONS 560-2-2-.36 AMENDED
560-2-2-.36 Consumption on Premises--Trade Practices.
             Amended.
• This amended regulation prohibits the sale of beverage alcohol
  under incorrect brand names. The amended Paragraph (2) of
  this regulation adds “employees” in addition to the owner for
  this practice.

• Paragraph (5) of the amended regulation removes the
  prohibition against advertising in the media in conformity with
  the ruling 44 Liquor Mart v. Rhode Island (17 U.S. 484 1996).
      State of Georgia
      Department of Revenue

 GENERAL PROVISIONS 560-2-2-.38 AMENDED
          560-2-2-.38 Ownership Interest. Amended.

• This rule was repealed and replaced with a rule with the same
  number.

• The new rule requires concurrent notification to the
  Commissioner of any proposed or actual change of ownership
  of the licensee. It further sets forth the parameters wherein
  notification is required, as well as the appeal procedures.
      State of Georgia
      Department of Revenue


         GENERAL PROVISIONS 560-2-2-.43

        560-2-2-.43 Charitable Events: Organizations.

• This rule has been amended to specifically state that donations
  of alcoholic beverages by wholesalers are allowed only if the
  beneficiary organization has the appropriate license or permit.

• Amendment will continue to allow cash donations.
      State of Georgia
      Department of Revenue

         GENERAL PROVISIONS 560-2-2-.48
                560-2-2-.48 Promotional Events.

• This is a new rule. This rule utilizes language from Rule 560-2-
  2-.26, entitled “Special Events.” which was repealed.

• This rule differentiates between a “Specific Event Permit” and a
  “Promotional Event.” The new rule specifies that an event must
  be held in publicly owned facilities, among other requirements,
  in order for an event to be designated a “Promotional Event.”
      State of Georgia
      Department of Revenue

         GENERAL PROVISIONS 560-2-2-.49

  560-2-2-.49 Inspection of Licensed Premises and Records.

• This is a new rule which specifically provides that agents are
  allowed to conduct investigation and inspections of licensees
  and their respective records and premises in accordance
  with O.C.G.A. § 3-2-32.
• It further provides that if a licensee, or someone under their
  direction, obstructs or harasses an agent while conducting
  an investigation and/or inspection, the agent may cite such
  party for, among other things, disorderly conduct or
  disturbing the peace.
      State of Georgia
      Department of Revenue


        GENERAL PROVISIONS 560-2-2-.52

                 560-2-2-.52 Special Charges.

• This new rule provides guidance previously provided by
  Rule 560-2-3-.40, which is being repealed.

• The new language in the rule clarifies the prior rule’s
  language concerning special charges and when such charges
  may be assessed. This rule will allow beverage alcohol
  distributors to charge special handling fees for all alcohol
  products, as opposed to only distilled spirits products.
      State of Georgia
      Department of Revenue


         GENERAL PROVISIONS 560-2-2-.50
                  560-2-2-.50 Invalid Checks.

• This new rule combines the language of Rules 560-2-4-.14
  and 560-2-3-.44, both of which have been repealed.

• Additional language in this rule establishes that a licensee is
  not required to notify the Commissioner in the event of an
  invalid check unless the licensee secures a warrant for the
  invalid check.
      State of Georgia
      Department of Revenue

         GENERAL PROVISIONS 560-2-2-.55
                   560-2-2-.55 Trade Show.

• The amendment will allow bona fide industry journalists to
  attend trade shows.

• This new rule currently allows properly licensed industry
  members to host “two” trade shows per year. This will be
  amended to “six” trade shows in upcoming phase five.

• This amendment sets forth the notice requirements to the
  Department and method of approval.
State of Georgia
Department of Revenue




    DISTILLED SPIRITS
      State of Georgia
      Department of Revenue

   DISTILLED SPIRITS 560-2-3-.01. AMENDED
               560-2-3-.01 Producer. Amended.

• Amended to further define the term “Producer” in paragraphs
  (b) and (c).

• Incorporates and eliminates Revenue Rules 560-2-3-.02 and
  560-2-3-.03
      State of Georgia
      Department of Revenue


   DISTILLED SPIRITS 560-2-3-.26 & 560-2-3-.27
560-2-3-.26 Department of Revenue Recognition of Registered
            Producer or Joint Registrant Solely by Resident
            Representative.

560-2-3-.27 Licensing Procedure for Resident Representative of a
            Registered Producer or Joint Registrant

• These rules have been repealed as resident representatives set
  forth in the regulations are no longer required.
       State of Georgia
       Department of Revenue


            DISTILLED SPIRITS 560-2-3-.32

       560-2-3-.32 Requirements for Salespersons and
                   Representatives of Wholesalers

• The previous rule was being repealed and a new rule adopted in
  its place with the same name and number.

• The new rule corrects gender references. Further, it provides
  that a license of a salesperson or representative can be affected
  by that person violating local, state, or federal laws, rules, and
  regulations.
         State of Georgia
         Department of Revenue

                DISTILLED SPIRITS 560-2-3-.36

560-2-3-.36 Products Other than Distilled Spirits for
            Sale, Display, or Offer

• This rule allows package stores to have for sale a limited number of items:
    –   Consumable single serving snack items;
    –   Birth control devices
    –   Single serving pain medications
    –   Sugar and salt specifically marketed for alcohol beverage drinks
    –   Certain co-packaged alcohol beverages
    –   Check cashing and ATM Machines
    –   Specifies the type of lottery tickets that may be sold in a package store

          THIS RULE WILL BE AMENDED AGAIN IN PHASE V TO
                INCLUDE RETAILER GIFT CERTIFICATES
      State of Georgia
      Department of Revenue

           DISTILLED SPIRITS 560-2-3-.38

560-2-3-.38 Restriction to Retail Dealer Business Hours;
            Exception; Restrictions on Other Mercantile
            Establishments; manner of Operation.
• Rule was amended by repealing any references to operation of a
  “divided store.”
• All inventory of non-alcoholic products governed by 560-2-3-
  .36
• All inventory acquired after March 31, 2007 must be in
  compliance with 560-2-3-.36
• Allows current “divided store” owners until July 1, 2007 to
  dispose of inventory not in compliance with 560-2-3-.36.
       State of Georgia
       Department of Revenue

            DISTILLED SPIRITS 560-2-3-.42
560-2-3-.42 New Ownership or Financial Interest in Distilled
            Spirit Licensee’s Business.

• The previous rule is being repealed and a new rule adopted in
  its place with the same name and number.

• Paragraphs (1), (2) and (5) of the original rule were transferred
  to Rule 560-2-2-.38, related to ownership. The remaining
  paragraphs are combined and renumbered in this rule and
  provide guidance related to ownership interests and controlled
  groups.
       State of Georgia
       Department of Revenue


    DISTILLED SPIRITS 560-2-3-.44 REPEALED

                   560-2-3-.44 Invalid Checks.

• This rule has been repealed and no rule will be adopted in its
  place at this time. This rule is no longer necessary because the
  guidance previously provided has been incorporated into Rule
  560-2-2-.50.
      State of Georgia
      Department of Revenue

           DISTILLED SPIRITS 560-2-3-.50

       560-2-3-.50 Distilled Spirits Quantity Discounts.

• This is a new rule allowing quantity discounts on distilled
  spirits for 60 days.

• Applicable price posting must specifically note the
  availability of the extended discount price on specific
  products.
       State of Georgia
       Department of Revenue

            DISTILLED SPIRITS 560-2-3-.51
560-2-3-.51 Manufacturer Representatives Authorization to
            Contact Wholesalers or Retailers.

• This rule replaced Rule 560-2-3-.28, which was repealed.

• This rule sets forth the requirements to be a representative of a
  manufacturer.

• This rule sets forth the penalties for violation of the Code of
  Rules.
      State of Georgia
      Department of Revenue


    DISTILLED SPIRITS 560-2-3-.63. AMENDED

      560-2-3-.63 Monthly Report; Remittance of Taxes.

• This amended regulation removes the reference concerning the
  date of tax stamp removal.

• Provides flexibility in reporting method change by allowing
  more electronic formatting and transmittal as needed,
State of Georgia
Department of Revenue




    MALT BEVERAGES
      State of Georgia
      Department of Revenue

            MALT BEVERAGES 560-2-4-.14
                   560-2-4-.14 Invalid Checks.

• This rule has been repealed and no rule will be adopted in its
  place at this time.

• This rule is no longer necessary because the guidance
  previously provided has been incorporated into Rule 560-2-2-
  .50.
       State of Georgia
       Department of Revenue

            MALT BEVERAGES 560-2-4-.26
                   560-2-4-.26 Special Events.

• This rule is being repealed and no rule will be adopted in its
  place at this time. This rule is no longer necessary because the
  guidance previously provided has been incorporated into Rule
  560-2-2-.48.
State of Georgia
Department of Revenue




    WINE BEVERAGES
      State of Georgia
      Department of Revenue


    WINE BEVERAGES 560-2-5-.03. AMENDED

         560-2-5-.03 Sales Ticket or Invoice. Amended.

• This regulation has been amended to require that invoices
  provided for wine sold shall be marked paid at the time of
  receipt of payment to correct erroneous wording in the past
  version.
State of Georgia
Department of Revenue




FORMS IN COMMON USE
      State of Georgia
      Department of Revenue


FORMS IN COMMON USE 560-2-7-.11. AMENDED

 560-2-7-.11 Beverage Alcohol Personnel Statement. Form ATT-17.

• This amended regulation brings the language into conformity
  with the Georgia Alcoholic Beverage Code.

• Reflects form currently being used by the Department.

• Provides greater discretion by the Department when requesting
  information from employees or stockholders of licensees.
 State of Georgia
 Department of Revenue




 PROPOSED REVENUE RULES
 AVAILABLE FOR UPCOMING
PUBLIC COMMENT SESSION ON
  JUNE 19, 2007 @ 10:00 A.M.
      State of Georgia
      Department of Revenue

             ORGANIZATION 560-2-1-.03
560-2-1-.03 Retention of Weapon and Badge Upon Retirement.

• Sets forth the requirements for retaining weapon upon
  retirement or disability and after 25 years of service.

• Commissioner to evaluate request based on conditions set
  forth in regulation.

• Provides for indemnity of Commissioner for providing
  weapon pursuant to Code and for training.
      State of Georgia
      Department of Revenue


        GENERAL PROVISIONS 560-2-2-.51

560-2-2-.51 Wholesaler- Additional Requirements of Licensee

• Requires wholesalers to provide any type of premises’
  agreement along with hours when the location is opened and
  staffed.

• Sets forth record keeping requirements.
      State of Georgia
      Department of Revenue


         GENERAL PROVISIONS 560-2-2-.51
560-2-2-.53 Delivery Vehicle Requirements.

• This rule combines a portion of the language of Rule 560-2-3-
  .33, which is being amended, as well as the language of Rules
  560-2-4-.08 and 560-2-5-.06, which are both being repealed.

• The rule will standardize the requirements for the markings on
  all delivery vehicles.

• Will not require existing delivery vehicles to change their
  current format or display.
       State of Georgia
       Department of Revenue

         GENERAL PROVISIONS 560-2-2-.56
560-2-2-.56 Trade Practices- Inventory Rotations; Displays
            and Bins.

• Sets forth the requirements concerning inventory rotations
  differentiating between malt beverages and other alcoholic
  beverages.

• Sets forth the procedure for the placement of a new brand or
  label on the retailer and limits wholesaler assistance to 60 days
  from date of registering brand.
        State of Georgia
        Department of Revenue


           GENERAL PROVISIONS 560-2-2-.57
560-2-2-.57 Trade Practices – Inventory Set and Resets;
   Notification.

• This is a new rule replacing rule 560-2-4-.25, which is being repealed.

• The proposed rule is in response to industry comments. It limits setting and
  resetting and requires the party who is seeking to conduct a set or reset, to
  request from the Department a pre-approved date to conduct such activity.

• The set and reset are voluntary activity provided by the wholesaler. The
  wholesaler’s election to participate in set and resets must be made available
  to all retailers within its territory.
       State of Georgia
       Department of Revenue

         GENERAL PROVISIONS 560-2-2-.58
560-2-2-.58 Trade Practices – Point-of-Sale Advertising.

• This is a new rule replacing rule 560-2-4-.25, which is being
  repealed.

• The proposed rule is in response to industry comments. It
  specifies that point-of-sales advertising shall be without cost
  and must be made available on equivalent terms to all accounts
  of the party offering the free advertisement.

• The proposed rule further provides that it is a violation to use
  point-of-sale material provided without cost on the exterior of
  any premises.
       State of Georgia
       Department of Revenue

          GENERAL PROVISIONS 560-2-2-.59
560-2-2-.59 Trade Practices – Promotional Items and
   Marketing Events.

• This is a new rule replacing rule 560-2-4-.25, which is being
  repealed.

• It sets forth the parameters for use of banners for promotional
  events.

• It limits what items may be provided at a promotional event,
  and the amount of free samples made available to a recipient.
  The rule addresses limitations as to marketing promotions while
  also defining the term marketing event.
       State of Georgia
       Department of Revenue

         GENERAL PROVISIONS 560-2-2-.60
560-2-2-.60 Sale Limitation; Delivery.

• This new rule stipulates that wholesalers are limited to selling
  only to licensed wholesalers, retailers or retail consumption
  dealers who holds a valid license.

• It further sets forth to whom and where alcoholic beverages can
  be stored, shipped or received by a wholesaler.
        State of Georgia
        Department of Revenue

           GENERAL PROVISIONS 560-2-2-.61
                     560-2-2-.61 Facility Tours.

• This rule sets forth parameters for Educational Tours and
  Promotional Tours at wineries and breweries.

•    It allows “Free Tastings” per specific limitations, and concerns
    food that can be offered as part of the tour. The rule limits the
    amount of consumption per day by a tour attendee.
       State of Georgia
       Department of Revenue

         GENERAL PROVISIONS 560-2-2-.62

       560-2-2-.62 Warehouse – Hub-Spoke Operations.

• This is a new rule created in response to present industry
  practices.

• The rule allows for Hub-spoke operations by a wholesaler
  subject to Department approval. It sets forth the information
  that must be provided to the Department by a wholesaler.

• The rule limits the type and duration of business activity at the
  location.
      State of Georgia
      Department of Revenue

            MALT BEVERAGES 560-2-4-.07
560-2-4-.07. Monthly Report; Remittance of Taxes. Amended.

• The rule is being amended to insert a change of reporting
  date in order to make it consistent with the date as specified
  in the Code.

• The reporting date will now be the 15th day of the month as
  opposed to the 20th. It is further being modified to insert
  clarifying language that will replace repetitive or redundant
  language.
      State of Georgia
      Department of Revenue

            MALT BEVERAGES 560-2-4-.30
560-2-4-.30 Monthly Report; Remittance of Taxes by
            Brewpubs.

• This amends the rule in order to provide that applicable
  reporting dates will conform to the Code Section and other
  applicable rules and reporting dates.

• The rule changes the reporting date from 20th to the 15th. It
  inserts clarifying language to eliminate redundant language.
      State of Georgia
      Department of Revenue

   MALT BEVERAGES 560-2-4-.08 & 560-2-4-.25
       560-2-4-.08. Sale Limitation; Delivery. Repealed

• This rule will be repealed and is no longer necessary because
  the guidance previously provided has been incorporated into
  Rule 560-2-2-.53.

       560-2-4-.25 Trade Practices. Amended. Repealed

• This rule will be repealed and is no longer necessary because
  the guidance previously provided has been incorporated into
  Rule 560-2-2-.51.
      State of Georgia
      Department of Revenue

            WINE BEVERAGES 560-2-5-.05
                  560-2-5-.05 Wine Tastings
 • The rule is being repealed and a new rule is being adopted
         in its place with the same name and number.

• This rule requires any person without a wine license to
  apply for a temporary permit if they are a non-profit
  organization and a license if they are a for profit
  organization.

• The rule further requires that 15 days notice be given to the
  Department by a person who does not hold a valid wine
  license.
       State of Georgia
       Department of Revenue

             WINE BEVERAGES 560-2-5-.06
             560-2-5-.06 Sale Limitation; Delivery.

• This rule is being repealed and no rule will be adopted in its
  place at this time.

• This rule is no longer necessary because the guidance
  previously provided has been incorporated into Rule 560-2-2-
  .53.
 State of Georgia
 Department of Revenue

  Georgia Department of Revenue
    Alcohol & Tobacco Division
1800 Century Boulevard- Suite 4235
      Atlanta, Georgia 30345
       Phone: (404) 417-4870
        Fax: (404)417-4871
         www.dor.ga.gov

								
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