Tax & Accounting Blog

Georgia Issues Guidance on Sales Tax on Food Items

Indirect Tax, Sales Tax Nexus December 28, 2010


The Georgia Department of Revenue has issued guidance on the recent changes regarding the taxation of various food items that becomes effective on January 1, 2011. Beginning on that date food will no longer be defined by reference to the federal Food Stamp Act of 1977.

Food and food ingredients do not include the following items which are now subject to both state and local taxes:

1) prepared food, items ingested or chewed primarily for medical or hygiene purposes, and
2) alcoholic beverages.

The following food items are subject to local taxes only:

1) most prepacked or repacked items for human ingestion,
2) raw animal foods,
3) packaged beverages including bottled water,
4) candy,
5) vending machine items,
6) liquids used in cooking, and
7) dietary supplements.

Source:Informational Bulletin SUT 12-12-23, 12/23/2010.