Sales and Use Tax

All retail sales of tangible personal property and all purchases used in an organization’s operation are subject to state and local sales tax, unless specifically exempted by state law. “Sales tax” is collected at the time of sale. “Use tax” is paid after the sale, upon use.

The Controller’s Office must report and remit all sales and use tax to the State of Georgia monthly. Please follow the guidance below the university can report accurately.

Purchases Made in Georgia

Many purchases made by Emory University in Georgia are exempt from sales and use tax. For the purchase to be exempt, the property must be used within the confines of our exempt purposes; primarily education and research. 

Generally exempt from sales/use tax:

• Books and instructional supplies purchased for libraries and faculty
• Athletic equipment
• Laboratory equipment
• Goods and services purchased from out-of-state* vendors for delivery and use in Georgia (when used within university’s exempt purpose)

 Subject to sales/use tax:

• Food and beverages (refreshments during a business meeting, or lunch during a conference)
• Catering (including any rentals associated with the catering)
• Flowers (including fundraising purposes)
• Occupancy (room) tax by hotels, motels, and inns

*Each state’s rules are different, and a state-specific exemption form may need to be provided to the vendor.

Using personal funds to make a purchase and submitting a reimbursement request is discouraged. If you use your funds, you must pay sales tax even if the purchase falls within Emory's exempt purpose. The university indirectly pays sales tax associated with these transactions (up to 8.9%. Purchases using corporate cards or P-cards can also be subject to sales tax. 

Georgia Exemption Documentation

You may be asked to provide proof of the university's exempt status. Here is a link to the Letter of Authorization from the Department of Revenue.

Emory University Letter of Authorization

A vendor may request we complete an exemption form unique to that retailer. If you need any assistance with one of these forms, please contact emorytax@emory.edu.

Affiliates

The Emory University Letter of Authorization only applies to purchases made by University for its exempt purposes. The exemption does not apply for our affiliated entities (Emory Healthcare, Emory Clinic, EMCF, agency affiliates, etc.).  Some of these may have their own exemption letters. The Emory University letter should not be used for purchases on behalf of affiliated entities.

Purchases Made in Other States

Emory is exempt from sales tax in multiple states. Below are exempt certificates by state. These certificates can only be used for official Emory business and not for personal use. 

• Colorado
• Connecticut
• Florida
• Georgia
• Idaho
• Illinois
• Indiana
• Kansas
• Kentucky
• Maine
• Massachusetts
• Michigan  
• Minnesota
• Mississippi
• Missouri
• New Jersey
• New York
• North Carolina
• Ohio
• Pennsylvania
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Wisconsin
• Wyoming

Each state has varying laws regarding what items they exempt from state sales taxes. Where a state sales tax exemption exists, it generally covers the purchase of tangible personal property used for university business. 

If you intend to make purchases in a state not included in the above list, contact the Controller’s Office to determine if an exemption could be granted. Note some states do not exempt non-profit organizations from any of the state taxes imposed.

Goods Purchased for Resale

Goods purchased for resale can be exempt from sales tax at the time of purchase from the vendor. To take advantage of this exemption, the vendor will request Form ST-5, Certificate of Exemption for Purchaser or Dealer, and sales tax must be collected at the time of the retail sale.

Sales Made by the University/Departments

Taxable property and services sold by the university are subject to sales tax (unless the purchaser is exempt from sales tax). Emory departments must charge sales tax on taxable transactions.

Except for sales to federal, state, or local government agencies, if the purchaser is exempt from Georgia sales and use tax, you must get a copy of its Letter of Authorization or exemption certificate in advance. You will need to maintain the letter or certificate in your records for questions concerning the transactions by the Department of Revenue. 

Remember, being tax-exempt organization based on the Internal Revenue Service determination does not imply exemption from state and local sales tax. Only the Georgia Department of Revenue Letter of Authorization is evidence of exemption from sales tax. 

If a sale is made within Georgia but outside DeKalb County, the delivery county’s tax rate must be used. Find current rates at the Georgia Department of Revenue Sales Tax website.

Goods delivered within the City of Atlanta are subject to the additional 1.9% Municipal Option sales tax. 

Rates can change within each county, so always check the site to ensure you are using the appropriate percentage. When a change is voted into law, tax changes go into effect the following calendar quarter.

Georgia sales tax generally does not have to be collected on goods shipped directly to the purchaser outside of the state. However, that state may require tax be collected on the sale. Keep documentation for support of an interstate shipment.

Examples of items typically subject to sales tax:

• Textbooks, CDs and publications
• Emory branded merchandise, such as t-shirts and coffee mugs
• Copying, printing, and other media services
• Surplus property
• Items sold at auction
• Food and beverages
• Museum sales
• Conference center and hotel charges paid for by an individual
• Online courses*

The tax collected should be credited to the department's accrued sales tax liability account.

If a department sells items while physically present in another state (example: selling continuing education material at a medical convention), the department should contact the Controller's Office before the event to determine whether the sales will be subject to sales tax. If a sales tax liability is incurred, departments should work with the Controller's Office to meet all accounting and reporting requirements.

*Online courses might be subject to sales tax in Georgia and in other states. The taxability of online courses varies significantly by jurisdiction and is determined by several factors, including course delivery method, the level of interactivity between faculty and students, and state-specific legislation. Generally, states distinguish between services (often non-taxable) and digital products (often taxable).

 Live, instructor-led courses, particularly those involving real-time interaction between instructors and students, are frequently classified as non-taxable educational services. Conversely, pre-recorded, self-paced, or automated courses are often categorized as taxable digital goods or products. Furthermore, the inclusion of supplemental tangible materials (e.g., physical books or hardware) usually triggers taxability regardless of the course's digital status. "Economic nexus" must also be considered in the various states, which may create an obligation to collect and remit sales tax even without a physical presence in that jurisdiction. Because states’ rules are complex and subject to change, departments offering online education are encouraged to consult with the tax department to ensure compliance.