Thu, Sep 13, 2001
To All Georgia Radio & Television Stations
From: Bill Sanders, GAB President
You may download the documentation and the Tax Exemption forms, both in PDF format by clicking below.
RE: AVAILING YOUR STATION(S) OF THE SALES TAX EXEMPTION
The Proposed Permanent Rule implementing the digital broadcast
equipment sales tax exemption is now in effect. As you know, GAB
advocated HB 610, a bill to exempt sales tax on specific digital
broadcast equipment. Both radio and television are included in the
exemption, though it sunsets several years later than the television
exemption.
We have attached several documents for your use. Read these documents carefully, and contact GAB with questions about your exemption.
Broadcasting and Broadcast Distribution; Cable, Television and Radio. This is the official proposed permanent Rule for the implementation of the Tax Exemption; STBE-1: Application For Certificate Of Exemption Digital Broadcast Equipment For Radio Or Television Broadcasters, Cable Networks Or Cable Distributors. Complete this form prior to the purchase of digital equipment to obtain the Certificate of Exemption.
The Process:
Each Station must complete the Application for Certificate of
Exemption and submit it to the Georgia Department of Revenue. The
application shall include the business name, address, physical
location, anticipated dates of purchase or lease, and a schedule of
the anticipated digital broadcast equipment to be purchased or leased
including sales price, manufacturer, supplier, and a description of
the digital equipment's function.
Upon approval of an application, the Department will issue a Certificate of Exemption for presentation by the purchaser or lessee to the equipment suppliers, whereupon the purchaser or lessee shall be relieved from the payment of the tax, and the equipment suppliers shall be relieved from the collection of the tax.
The exemption shall only extend to the original purchase or lease of eligible digital broadcast equipment and shall not extend to the replacement of such equipment or to the repair or upgrading of the equipment.
Television:
Eligible Equipment: For the purposes of federally licensed
commercial or public television broadcasters and cable distributors,
the term digital broadcast equipment shall be limited to antennas,
transmission lines, towers, digital transmitters, studio to
transmitter links, digital routing switches, character generators,
Advanced Television Systems Committee video encoders and
multiplexers, monitoring facilities, cameras, terminal equipment,
tape recorders, and file servers.
Exemption Sunset: Purchases or leases made by a federally licensed commercial or public television, or cable distributor or cable network on or after July 1, 2001 through the last date of analog transmission or November 1, 2004, whichever occurs first, shall be exempt from the tax upon the issuance of the Certificate of Exemption.
Radio:
Eligible Equipment: For the purposes of federally licensed
commercial or public radio broadcasters, the term digital broadcast
equipment shall be limited to transmitters, digital audio processors,
and diskettes.
The conversion of a radio station to digital broadcasting refers to several items of equipment containing "digital audio processors“.
The following pieces of equipment in a radio station contain "digital audio processors" and will qualify for the exemption: Digital Automation and Storage Systems, Digital Mixing Consoles, Digital Limiters and Digital Studio-Transmitter-Link systems.
Exemption Sunset: Purchases or leases made by a federally licensed commercial or public radio broadcaster on or after July 1, 2001 through the last date of analog transmission or November 1, 2008, whichever occurs first, shall be exempt from the tax upon the issuance of the Certificate of Exemption.
For the purposes of determining whether diskettes are original or replacement purchases for radio broadcasters and cable networks, it shall be presumed that diskettes purchased twelve months after the date of the first application for exemption are replacements.
These are the highlights! After review of the enclosed material, please contact the GAB for more information on this important Rule.
END