Sales Tax in Norcross, GA for Business Owners
If you are a business owner in Norcross, GA, then you are collecting 6% sales tax from your customers. That is 4% for the state and 2% for Fulton County.
However, there are cases where you do not need to collect sales tax.
Exemptions from Sales Tax According to GDOR
GDOR has clarified that sales tax is no longer required on the following items:
1. Disposable Food Packaging
Single-use, disposable packaging used to contain food that is given to the customer such as:
- Boxes
- Wrappers
- Cups
- Dinner plates
- Similar items
2. Items for Sale
Food ingredients and other items such as:
- A toy, which will be resold by the establishment
3. Single-Use Items Provided with Meals Sold
Single-use items provided or made available to customers free of charge as a component part of a meal such as:
- Straws
- Swizzle sticks
- Stirrers
- Napkins
- Disposable silverware
- Toothpicks
- Wet-naps
4. Food Items Provided with Meals Sold
Condiments and other food items made available to the customer free of charge.
Instances Where Sales and Use Tax Must Be Paid
The regulation also identifies items and instances where sales and use tax must be paid:
1. Items Used or Consumed by the Restaurant
Tangible personal property not purchased for resale to the customer such as:
- Table covers
- Cloth napkins
- Silverware
- Floral arrangements
These items may also include the cost of:
- Complimentary meals furnished to employees or customers
- Single-use items such as paper towels, plastic utensils, plastic wrap, and paper placemats
2. Gratuities
Gratuities are taxable when:
- Negotiated in advance of a meal or event
- Unilaterally added to the bill by the seller
- Mandatory under certain conditions
3. Other Service Charges
Charges by the restaurant necessary to complete a taxable sale such as:
- ID checking services
- Fuel surcharge when delivering food
Frequently Asked Questions
What is the current sales tax rate in Norcross, GA for businesses?
Business owners in Norcross, GA must collect a 6% sales tax, 4% goes to the state of Georgia and 2% to Fulton County.
Are all items sold by restaurants subject to sales tax?
No, some items are exempt if they are intended for resale or provided as part of a meal, such as disposable packaging, straws, napkins, condiments, and toys meant for resale.
Which items used by restaurants are not exempt from sales tax?
Restaurants must pay sales and use tax on items used or consumed in operations, like cloth napkins, silverware, table covers, floral arrangements, and supplies for complimentary meals.
Are gratuities taxed in Georgia?
Yes, gratuities are taxable if they are pre-negotiated, added by the seller without customer input, or mandated under specific conditions.
Do service charges added to the bill incur sales tax?
Yes, additional charges like ID verification fees or fuel surcharges tied to food delivery are considered taxable components of a sale.