THE GEORGIA DEPARTMENT OF AGRICULTURE
B. Sales Taxes
a. Non-food products should collect full sales tax.
• A vender should collect full sales tax for the sale non-food related items at
farmers markets.
b. Food Products have state and some city sales tax exemptions:
• Exemption for State Sales Taxes OCGA §48-8-3
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“(57) (A) The sale of food and food ingredients to an individual
consumer for off-premises human consumption, to the extent provided
in this paragraph.”
• Possible Exemption from Municipal taxes and fees OCGA §48-5-356
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Exemption from municipal taxation of agricultural products and
livestock raised in state :
No municipality shall levy any tax or license fee or shall require the
payment of any fee or tax upon the sale or introduction into the
municipality of any agricultural product raised in this state including,
but not limited to, swine, cattle, sheep, goats, poultry, and the products
of such animals when the sale and introduction are made by the
producer of the product and the sale of the product is made within 90
days of the introduction of the product into the municipality. The
exemptions provided in this Code section shall be in addition to all
other exemptions from taxation and licensing provided by law for any
such product.
C. Business Licenses
a. Prohibitions on Occupation tax Levies by Local Governments §48-13-13
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Multiple locations – many farmers market vendors may operate at multiple
locations and may already have their business license in another district:
“Local governments are not authorized to: (1) Require a business or
practitioner to pay more than one occupation tax for each office or location,
except that businesses or practitioners with multiple services or products shall
be taxed in accordance with Code Section 48-13-12;”
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Venders at tax exempt “agricultural fairs” may be exempt from Business
Licenses:
“Local governments are not authorized to: (5) Levy any occupation tax,
regulatory fee, or administrative fee on any state or local authority, nonprofit
organization, or vendor operating under a contract with a tax-exempt
agricultural fair, as that term is defined in Code Section 2-2-8.”
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Farmers Markets could fall under the definition of “Agricultural Fairs”
§2-2-8 :
(b) For an event to qualify as an agricultural fair, the organization sponsoring
such fair must:
(1) Be able to show that at least 10 percent of the total receipts thereof are
paid out in the form of premiums, scholarships, or agricultural programs; and
(2) Be a nonprofit organization, spending the profits of the fair on the
enterprise or paying them out in the form of premiums, scholarships, or
educational programs.