Georgia: Sales Tax Handbook

Georgia:

Are Manufacturing and Machinery subject to sales tax?

While Georgia's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of manufacturing and machinery in Georgia, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Georgia.

Machinery

EXEMPT

Sales of machinery are exempt from the sales tax in Georgia.

Raw Materials

EXEMPT

Sales of raw materials are exempt from the sales tax in Georgia.

Utilities & Fuel

TAXABLE

In the state of Georgia, any electricity which is utilized directly in the manufacturing of any products is considered to be exempt so long as the cost of electricity is greater than 50% of the cost of all of the materials which are used in a product, which includes electricity.

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