GeneralResidentNonresident

GENERAL

Pursuant to Regulations 560-12-2-.26 and 560-12-2-.43, if you are a General or Prime Contractor and have entered into a contract with a subcontractor whose aggregate contract(s) amount(s) on any single project equals or exceeds $250,000, you are required to submit Form ST-C 214-1 to the Contract Section within thirty (30) days after the execution of the contract. Please include the contract number, date, and amount.

SALES AND USE TAX CERTIFICATE OF REGISTRATION. All general or prime contractors and subcontractors improving real property in the State of Georgia are required to obtain a Sales and Use Tax Certificate of Registration for the remittance of any sales and use taxes that may be due. One may apply for a Certificate of Registration (ST-C Form 214-5C) by submitting a State Tax Application, Form CRF-002, to the Contract Section. You will be contacted within 3 to 7 business days from the date of receipt. The Contract Section will mail the Sales and Use Tax Registration Certificate, Form ST-C 214-5C to the designated mailing address. Note: Notification letters, including subcontractors’ bond acceptance and retainage release letters, cannot be mailed to general/prime contractors without a valid Georgia Certificate of Registration (sales and use tax number).

RETAINAGE ELECTION. A Subcontractor may elect the general contractor to withhold up to 4% of payments due to him/her arising out of the contract(s). If this option is chosen, you must complete the enclosed form ST-C 214-1S in its entirety (including the contract amount, location, and number) and return the form to the Contract Section no later than 30 days from the date of this letter.

When the project is completed, the subcontractor will request the Department to mail a retainage release approval letter, Form ST-C 214-6, to the identified general/prime contractor after all sales and use tax returns and payment submissions have been verified. However, if the subcontractor is in noncompliance with Georgia’s filing and/or payment requirements, the Contract Section will mail a Notice to Remit Retainage, Form ST-C 214-8, to the general or prime contractor. Please submit the enclosed Notice of Prime or General Contractor of Funds Withheld Pending Request of a Release Notice, Form ST-C 214-7, to the Contract Section 60 days following the subcontractor’s sales and use tax reporting period upon each phase of the work performed.

BOND ELECTION. If the subcontractor elects to obtain a resident bond for the project from a surety insurance company, the Contract Section will mail each identified general/prime contractor a Notice of the Bond Execution, Form ST-C 214-4C or 214-5, for a continuous or annual bond, respectively, when the bond is accepted. However, as previously mentioned, this notification will only be mailed to general/prime contractors with a valid Georgia sales and use tax number.

For additional information, see O.C.G.A. Section 48-8-63.

RESIDENT

All general or prime contractors and subcontractors improving real property in the State of Georgia are required to obtain a Sales and Use Tax Certificate of Registration for the remittance of any sales and use taxes that may be due. One may apply for a Certificate of Registration (ST-C Form 214-5C) by submitting a State Tax Application, Form CRF-002, to the Contract Section. You will be contacted within 3 to 7 business days from the date of receipt.

Pursuant to Regulation 560-12-2-.26, if you are a Georgia State resident and, as subcontractor, have entered into a contract with a general or prime contractor whose aggregate contract(s) amount(s) on any single project equals or exceeds $250,000, you may choose from one of the following options:

Or

NOTE: If this option is chosen, please submit the appropriate forms to the Contract Section.

For additional information, see O.C.G.A. Section 48-8-63.

NONRESIDENT

All general or prime contractors and subcontractors improving real property in the State of Georgia are required to obtain a Sales and Use Tax Certificate of Registration for the remittance of any sales and use taxes that may be due. One may apply for a Certificate of Registration (ST-C Form 214-5C) by submitting a State Tax Application, Form CRF-002, to the Contract Section. You will be contacted within 3 to 7 business days from the date of receipt.

Pursuant to Regulation 560-12-2-.43, a nonresident contractor is “a person engaged in contracting real property work who does not have a bona fide place of business in Georgia through the maintaining of a permanent domicile or business facility for at least one year prior to bidding on work.” All non-resident contractors are required to obtain approval and to post a bond before beginning a construction project in Georgia.