118 Ga. App. 280 | Ga. Ct. App. | 1968
Under Code Ann. § 92-3408a a certificate that the property is purchased for resale relieves the seller of the necessity of collecting the otherwise applicable tax. “If a purchaser who gives a certificate makes any use of the property other than retention, demonstration, or display while holding it for sale in the regular course of business, the use shall be deemed a retail sale by the purchaser as of the time the property is first used by him, and the cost of the property to him shall be deemed the gross receipts from such retail sale.” Where raw materials are fabricated by a contractor into products to be installed and
We do not consider that Hawes v. Ingalls Iron Works Co., 117 Ga. App. 80 (159 SE2d 434) is applicable here. In that case the taxpayer purchased raw materials in Alabama, fabricated them in Alabama, and shipped them to Georgia for incorporation in its construction of a stadium. The holding went merely to the extent that this State could not tax the value of the fabricated property as 'imported, but only the value of the raw materials, because otherwise a discriminatory situation as between foreign and domestic contractors would result. It did not consider what the result to the taxpayer would have been if it had been shown that Alabama had levied a use tax, nor does it appear in this case that any tax has been paid in Tennessee so as to invoke the provisions of Code Ann. § 92-3412a involving double taxation.
The trial court properly held that the withdrawal of raw materials from inventory in Georgia and their fabrication by the
Judgment affirmed.