Rule 560-12-1-.05. Rounding Rule for the Collection of Sales and Use Tax

1. (1) The computation of sales and use tax must be carried to the third decimal place.
2. (2) The tax must be rounded to a whole cent using a method that rounds up to the next cent whenever the third decimal place is greater than four. When a seller collects and remits both state and local taxes, this rounding rule must be applied to the aggregated state and local taxes.
3. (3) Sellers may compute the tax due on a transaction on either an item basis or an invoice basis.

4. (4) Examples.

   1 chair for $19.65

   1 cushion for $3.56

   If Dealer elects to collect tax on a per item basis, the tax on the chair is $1.38 because .07 x $19.65=$1.3755 and the third decimal place is greater than four. The tax on the cushion is $.25 because .07 x $3.56=$.2492 and the third decimal place is greater than four.

   1. (a) Dealer sells the following items to Purchaser, and the tax rate is 7%:
   2. (b) The facts are the same as paragraph (a) except Dealer elects to collect tax on an invoice basis. The tax is $1.62 because .07 x $23.21=$1.6247 and the third decimal place is not greater than four.

Authority: O.C.G.A. Secs. 48-2-12, 48-8-31, 48-8-162.

History. Original Rule entitled "Brackets for Collection of Tax" adopted. F. and eff. June 30, 1965.

Amended: F. Dec. 2, 1970; eff. Dec. 22, 1970.

Amended: ER. 560-12-1-0.4-.05 adopted. F. Mar. 28, 1989; eff. Apr. 1, 1989, as specified by the Agency.

Amended: Permanent Rule adopted. F. June 22, 1989; eff. July 12, 1989.

Amended: ER. 560-12-1-0.19-.05 entitled "Brackets for the Collection of Sales and Use Tax" adopted. F. Sept. 1, 2004; eff. Oct. 1, 2004, as specified by the Agency.

Amended: Permanent Rule of same title adopted. F. Oct. 8, 2004; eff. Oct. 28, 2004.

Repealed: Rule entitle "Rounding Rule for the Collection of Sales and Use Tax" adopted. F. Mar. 23, 2012; eff. Apr. 12, 2012.