Georgia State and Local Tax (SALT) Alerts

State and Local Tax Insights

Rural Hospital Tax Credit Amendment | Tanning Salon Owners Liable for Sales and Use Tax on Use of Tanning Beds

  • The Georgia Dept. of Revenue has amended the Qualified Rural Hospital Organization Expense Tax Credit to reflect statutory changes relating to pass-through entities. The amended rule, effective Oct. 10, 2019, provides that, when a taxpayer is a pass-through entity with no income tax liability, the tax credits will be considered earned by its members based on their profit/loss percentage at the end of the year. The pass-through entity must provide information to the rural hospital organization so that the preapproval, claiming and reporting forms can be filed in the name of its members. The rule also reflects the credit’s new extended sunset date of Dec. 31, 2024.
  • If you’re in search of a perfect tan, a stop at your local tanning salon may be on your to-do list. Did you know that charges from a salon owner to a customer for use of a tanning bed aren’t subject to sales and use tax? Under Georgia state law, the salon owner is liable for tax on its purchase or lease of the bed. Sales of tanning products, accessories, and other tangible personal property, however, are subject to the tax.

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