Certified Public Accountants

byrt@byrt.com

1 BYRT Way 722 S. Main Street 105 East Dame Avenue 102 Lee Avenue Alma, GA 31510 Baxley, GA 31513 Homerville, GA 31634 Waycross, GA 31501 Phone: 912-632-7171 Phone: 912-367-9888 Phone: 912-487-5414 Phone: 912-283-8889 Fax: 912-632-6663 Fax: 912-367-0116 Fax: 912-487-5314 Fax: 912-283-1971

Gate Cards

Dear Client,

We wanted to inform you that the 2019 GATE card application period is now open. If you believe you would qualify you should visit the GA Dept. of Agriculture website at https://forms.agr.georgia.gov/GATE/ to log in and begin steps to process your account. The Dept. of Agriculture only accepts online applications; mailed application are not accepted. You will be asked to provide one of three tax identification numbers (Use the same tax identification number that is associated with your farm on your federal tax return).. In-state residents will need to provide one of the following items:

1. Georgia Sales and Use Tax number 2. Georgia Corporate Income Tax number (The EIN# of your farm) 3. Georgia Individual Income Tax Number (your Social Security number)

a. This would be used if you do not have a separate EIN# for your farm and you file your farm on the Sch. F of your Form 1040.

Out-of-State residents will need to provide either:

1. Social Security number or 2. Federal Employee Identification Number.

The GA Dept. of Revenue will match these numbers to the tax returns you have on file with the State of Georgia. We’ve attached additional information and frequently asked questions provided by the GA Dept. of Agriculture.

We hope this information helps you understand the Gate Card. Please call us if you wish to discuss your particular tax situation and if you qualify.

Very truly yours,

James A. Beal IV, CPA, CFP®

Debra C. Yonz, CPA

James S. Rivers III, CPA, CFP®

Larry G. Taylor, CPA

Georgia Department of Agriculture 19 Martin Luther King Jr. Drive SW Atlanta, Georgia 30334-4201

Gary W. Black Commissioner

For assistance, call the Customer Service Center at 1-855-327-6829. You can also send an email to farmtax@agr.georgia.gov

Executive Summary Georgia Agricultural Tax Exemption (GATE) Program

In 2012, the Georgia General Assembly adopted sweeping tax reform legislation that made a number of modifications to the State’s tax code and how certain programs would be administered moving forward. Included in these changes was the adoption of the Georgia Agricultural Tax Exemption, or GATE, program which took effect on January 1, 2013. The GATE program allows for certain state and local sales tax exemptions on eligible agricultural purchases for “qualified” agricultural producers.

The GATE program is coordinated through partnership with the Georgia Department of Revenue and the Georgia Department of Agriculture. The Georgia Department of Agriculture is charged with the administration of the program and to determine if an agricultural producer meets certain eligibility requirements. If an applicant is approved our Customer Service Center will issue the client a GATE certification card. The card will contain an identification number, an effective use date, the name of the primary card holder and the physical address of the business.

The sales and use tax exemptions for the GATE program may fall under three general categories as outlined in the Georgia Department of Revenue’s, “Rule 560-12-2-.03, Agriculture Exemptions”, to include agricultural inputs, farm machinery and equipment, and energy used in agriculture. Individual product exemptions will depend upon the type of farming operation and how the primary card holder qualifies for the program. Any person making a sale of an eligible product must collect sales and use tax unless the purchaser furnishes the seller with a valid GATE card. It is highly recommended that individuals review all program details prior to application. Any unauthorized use of the GATE certificate may result in criminal prosecution.

Effective for 2014, in addition to meeting the eligibility requirements, all new GATE applications will required to submit verification of lawful presence as required by O.C.G.A. § 50-36-1. This statewide requirement applies to any public benefit issued by the State of Georgia and includes certifications, license and registrations. Applicants will be required to complete a notarized affidavit and provide one form of acceptable documentation, such as a photo copy of driver’s license, for verification.

We, at the Georgia Department of Agriculture, take our role in stewarding public resources very seriously. We remain committed to providing superior customer service and have established a full service Customer Service Center to assist clients with questions and to help in determining program eligibility. For more information please visit the GATE website at https://forms.agr.georgia.gov/GATE

Georgia Department of Agriculture (GDA)

Frequently Asked Questions about the GATE Program

Q: How do I apply for the GATE Certificate?

The Georgia Department of Agriculture accepts online applications. To apply online, visit

www.agr.georgia.gov.

Cooperative Extension offices and County Farm Bureau offices will often assist farmers in completing a GATE

application online. Visit or call your nearest office for more details.

• A list of Georgia Farm Bureau offices is available at https://www.gfb.org/about-us/contact-us.cms.

• A list of county Extension Offices is available at http://extension.uga.edu/county-offices.html.

If you have any questions regarding the GATE Program application and renewal process, or need further

assistance, you can email the Georgia Department of Agriculture at farmtax@agr.georgia.gov or call 1-855-

FARM-TAX.

Q: Why is there a certification fee for the GATE card?

The Georgia General Assembly provided that an application fee be collected in order to cover the costs

associated with administration of GATE program.

Q: How do I know if I am signing up for a 1, 2, or 3-year GATE certificate?

All new GATE certificates are for the 3-year period.

As program changes are being implemented, renewals will be phased in to cover one year, two years, or

three years. The period is determined automatically and cannot be selected by the applicant. The

length of your GATE Certificate is determined by your renewal amount.

• 1-year card = $50

• 2-year card = $100

• 3-year card = $150

All GATE certificates renewed after 2020 will last 3 years.

Q: When does my GATE Certificate expire?

New GATE Certificates last for a 3-year period, and 2019 renewals may last for a 1-year, 2-year, or 3-year

period. The expiration date for this period is always December 31 of the final year, regardless of what

month the certificate was issued.

The actual card is valid for a single calendar year. You will receive a new card each year. There is no

additional cost to cardholders for receiving the new cards.

Q: What do I need to do to replace a lost or stolen card?

You can request a replacement card for $30 from the GATE website.

Q: If I am renewing, will my information auto-populate into the application/renewal page once I enter my GATE

card number?

Cardholders renewing will get a mailed letter and an emailed letter containing a password. They will use

their GATE# and password to access the system. User info will auto populate, but you will have to verify

qualifications and requirements.

Q: How do I change my mailing address on my GATE card?

If you are renewing your GATE card, you can modify your mailing address and contact information while

you are renewing. All GATE cardholders should review their personal information for accuracy at the

time of renewal.

You can also update the mailing address and contact information on an active GATE card at any time

from the GATE web page. You will need your password in order to log in and change this information.

We encourage you to keep your mailing address, email, and phone number current in the GATE system

so that you can receive updates and information from GDA.

Q: Can retailers check someone’s GATE status?

Yes, from the GATE webpage.

Q: The GATE application requires me to choose a NAICS code. What is a NAICS code and where can I find more

information about what they mean?

NAICS stands for the North American Industry Classification System and defined by the United States

Census Bureau. These codes identify virtually every type of business practice or service performed in

the U.S. Under the GATE program only certain types of business or farming practices are allowed for

participation. The eligible codes are listed in the official GATE Rules and Regulations.

Q: I farm several different crops and qualify under several different NAICS codes, how do I know which code to

choose?

Many of our farmers could potentially qualify for GATE under different NAICS codes. For application

purposes it is required to pick one NAICS code that best describes your farm’s primary agricultural

commodity. If you farm cotton, peanuts and soybeans for example we encourage you to pick the one

NAICS code that best describes your operation. If cotton farming comprises the bulk of your farming

operation then you would want to select “Cotton Farming – 11192”.

Q: Where can I find more information about a specific NAICS code?

Additional information and full descriptions of each NAICS code can be found on the U.S. Census

Bureau’s website located at www.census.gov. The GATE program is based upon the 2017 NAICS codes

and you can research each specific code to determine which one best describes your business or farm

operation.

Q: What Taxpayer ID should I use as my “state taxpayer identification number”?

The state taxpayer identification number submitted must be the tax number associated with your

federal tax return which reflects your farm revenues and is needed by tax revenue officials to match the

qualifying information on your application to the tax documentation held on file with the State of

Georgia.

The system will accept the following types of taxpayer ID’s:

• Georgia Sales and Use Tax number

• Georgia Corporate Income Tax number (FEIN - Federal Employee Identification #)

• Georgia Individual Income Tax number (Social Security number)

• “Out-of-state” will use either SS# or FEIN

Applicants can identify their appropriate tax number by registering with the Georgia Tax Center website:

http://gtc.dor.ga.gov

Q: Can I use my GATE card for all of my farm purchases?

You can only use your GATE card for qualifying agriculture related products that you will use for your

own operations on your farm. An Exemption Guide with detailed information on which agricultural

products are qualified is available at the GATE website.

Q: My application was denied. How do I appeal this decision? What is the appeal process?

If you are denied certification, then you will be given a reason for the denial and the licensing fee will be

returned to the to you. Any denial may be appealed to the Georgia Agriculture Tax Exemption Advisory

Board in writing within 30 days of denial. Appeals should be sent to the Georgia Agriculture Tax

Exemption Program at 19 Martin Luther King Jr. Drive, Suite 601, Atlanta GA 30334.

Q: Can I qualify for a GATE card if I don’t have timber income every year?

Yes, timber growers can qualify under the long-term income provision assuming you can generate an

average of $5,000/yr.

Q: I clear cut my timber last year. I plan to have it replanted this year. I don’t intend to cut it for 15 years. Am I

eligible for a GATE Card?

Ultimately, the size of your timber tract/s will determine if you are eligible. In the example above, the

tract/s of timber would need to be able to produce $75,000 of revenue if harvested 15 years from the

time of planting.

Q: Can I qualify for a GATE card if I am involved in irrigation sales and service? Specifically, can I qualify under

the NAICS code 11511, “Support Activities for Crop Production”?

An irrigation business could not qualify because they would be considered a contractor.

Q: I just retired and want to get some cows. Will I be able to use a GATE Card?

Sales tax are not normally charged on cattle purchases. You can qualify for the GATE card if you show

that you will be making an excess of $5,000 a year in your cattle business.

Q: Does rent for my farm count toward income?

Yes

17. I rent my land out and the rent is over $5,000.00. Can I get a GATE Card?

Yes

Q: I operate a cotton gin, do I qualify?

Yes. GDA rules include any agribusiness that meets one of the qualifications for an agricultural producer

as well as having an NAICS code listed in the rules will qualify. Cotton gins have an NAICS code –

115111, so if a producer meets the qualifications, he or she would qualify.

Q: I am in the furniture industry; do I qualify as an agricultural producer?

Sorry, but you do not qualify for the GATE Program.

Q: I operate a sawmill; do I qualify as an agricultural producer?

Sorry, but you do not qualify for the GATE Program.

Q: I ordered $6,000 worth of fertilizer and it was delivered and spread on my farm. I had to pay sales tax as I

did not have a GATE card. I have now applied and received my card. Can I get my tax money back on that

fertilizer purchase?

No, the GATE Card must be acquired before someone may receive the sales and use tax exemption.

Q: I am a farmer with multiple meters used for poultry/irrigation under different LLCs. Do I need a separate

card for each LLC?

Yes. Sales tax exemptions are granted to separate legal entities that would be subject to separate

registration for tax purposes. If a farmer has multiple legal entities operating under separate legal

names, who each own/operate exempt machinery, equipment, or receive exempt energy through

meters they would need to apply for separate GATE cards.

If you have separate meters your utility provider(s) may require a GATE addendum for “Metered Energy

Sold to A Qualified Agriculture Producer”. You can locate the GATE addendum from the GATE website.

Q: I had severe loss in my pecan orchard and it may take me longer than 10 years to produce a good crop. Can I

still get a GATE Card?

In the example above, the pecan orchard would need to be able to produce at least $50,000 of revenue

from the orchard 10 years after the time of loss.

If you have any other specific question regarding the GATE Program, please email the Georgia Department of

Agriculture at farmtax@agr.georgia.gov or call 1-855-FARM-TAX.

To qualify for the GATE program you must also file one of the following tax

forms with the Federal Internal Revenue Service; 1040 Schedule F (Profit Loss

from farming), IRS Form 4835 (Farm Rental Income and Expense), 1040

Schedule E (Supplemental Income and Loss), IRS Form 4797 (Sales of

Business Property), IRS Form 1065 (Return of Partnership Income), or IRS

Form 1120 or 1120(s) (Corporate Tax Return). These tax forms will be used to

verify that you meet the eligibility requirement of at least $5,000 in farm

production or eligible farm services provided from the previous year. If you do

not file one of the required tax forms listed, you do not qualify for the GATE

program.

Once approved, you will be provided with either a one-year, two-year, or three-

year GATE card. The phased-in implementation will be done alphabetically,

and payment will vary based upon the terms of the card received. A three-year

registration will be $150, a two-year registration will be $100, and a one-year

card will cost $50. This staggered approach will balance the annual registration

workload for our agency and allow us to provide enhanced customer service to

our farmers. All future renewals will be for a full three-year term at $150.

Mastercard, Visa and Automatic Check Handling will be accepted.

If you are having trouble accessing your account online, we encourage you to

visit your local County Farm Bureau or Cooperative Extension Office. Be sure

to take all needed paperwork so they can better assist you.

For additional information contact the Customer Support Center at (855)

FARMTAX, or (855) 327-6829, Monday through Friday during normal

business hours. The GATE email system is continually monitored at

Farmtax@agr.georgia.gov.

RULES

OF

GEORGIA DEPARTMENT OF AGRICULTURE

CHAPTER 40-29

GEORGIA AGRICULTURE TAX EXEMPTION

TABLE OF CONTENTS

40-29-.01 Definitions

40-29-.02 Application for Authorization to Attain a Georgia Agriculture Tax Exemption

(GATE) Certificate

40-29-.03 Renewal Process

40-29-.04 Denial of Certification for the Georgia Agriculture Tax Exemption (GATE)

Certificate

40-29-.05 Revocation of Certification

40-29-.01 Definitions

(1) “Agricultural product” – Items produced by agricultural operations.

(2) “Agricultural operations” – Used synonymously with ‘agricultural purposes’ and means the

following activities: raising, growing, harvesting, or storing of crops, including, but not limited

to, soil preparation and crop production services such as plowing, fertilizing, seed bed

preparation, planting, cultivating, and crop protecting services; feeding, breeding, or managing

livestock, equine, or poultry; producing or storing feed for use in the production of livestock,

including, but not limited to, cattle, calves, swine, hogs, goats, sheep, equine, and rabbits, or for

use in the production of poultry, including, but not limited to, chickens, hens, ratites, and

turkeys; producing plants, trees, fowl, equine, or other animals; producing aquacultural,

horticultural, viticultural, silvicultural, grass sod, dairy, livestock, poultry, egg, and apiarian

products; processing poultry; post-harvest services on crops with the intent of preparing them for

market or further processing, including but not limited to crop cleaning, drying, shelling,

fumigating, curing, sorting, grading, packing, ginning, canning, pickling, and cooling;

slaughtering poultry and other animals; and manufacturing dairy products. Agricultural

operations does NOT include constructing, installing, altering, repairing, dismantling, or

demolishing real property structures or fixtures, including, but not limited to, grain bins,

irrigation equipment, and fencing.

(3) “Animal” – Synonymous with “livestock” and means living organisms that are commonly

regarded as farm animals, organisms that produce tangible personal property for sale, or

organisms that are processed, manufactured, or converted into articles of tangible personal

property for sale. The term does not include living organisms that are commonly regarded as

domestic pets or companion animals.

(4) “Georgia Agriculture Tax Exemption (GATE) Certificate” – An agricultural sales and use

tax exemption certificate issued by the Georgia Department of Agriculture that identifies its user

as a qualified agriculture producer.

(5) “Georgia Tax Exemption Advisory Board” – A board appointed by the Commissioner in

accordance with the Official Code of Georgia, Title 48, Chapter 8, Section 3.3.

(6) “Commissioner” – The Commissioner of the Georgia Department of Agriculture, or his

designee.

(7) “Department” – The Georgia Department of Agriculture.

(8) “On Farm” – Where an agricultural product is produced or harvested.

Authority: O.C.G.A. § 48-8-3.3. History: New Rule entitled “Definitions” adopted: F. Oct. 30,

2012; eff. Nov. 19, 2012. Amended: F. Sep. 4, 2013; eff. Sep. 24, 2013.

Rule 40-29-.02. Application for Authorization to Attain a Georgia Agriculture

Tax Exemption (GATE) Certificate

(1) No person or entity shall utilize a GATE Certificate unless prior application for

certification or licensing has been made to the Department and permission to make such

use has been granted by the Commissioner.

(2) Only Qualified Agriculture Producers are authorized to use the GATE Certificate.

(3) 'Qualified Agriculture Producer' includes producers of agricultural products or services

who meet one of the following criteria:

(a) The person or entity is the owner or lessee of agricultural land or other real property

from which $5,000.00 or more of agricultural products in aggregate were produced

and sold during the year, including payments from government sources;

(b) The person or entity is in the business of performing agricultural operations and has

provided $5,000.00 of such services during the year;

(c) The person or entity is in the business of producing long-term agricultural products

from which there might not be annual income, including, but not limited to, timber,

pulpwood, orchard crops, pecans, livestock, and horticultural or other multiyear

agricultural or farm products. Applicants must demonstrate that sufficient volumes

of such long-term agricultural products will be produced which have the capacity

to generate in aggregate at least $5,000.00 in annualized sales in the future; or

(d) The person or entity must establish, to the satisfaction of the Commissioner of

Agriculture, the person or entity is actively engaged in the production of

agricultural products and has or will have created sufficient volumes to generate in

aggregate at least $5,000.00 in annualized sales.

(4) The person or entity seeking a GATE Certificate may be regarded as an agriculture

producer under one or more of following NAICS codes. North American Industry

Classification System (NAICS) Codes can be found online at www.census.gov and shall

be used by applicant to determine which code the person or entity may fall under for

purposes of eligibility when applying for a GATE Certificate:

2017 NAICS US Code 2017 NAICS US Title

11111 Soybean Farming

11112 Oilseed (except Soybean) Farming

11113 Dry Pea and Bean Farming

11114 Wheat Farming

11115 Corn Farming

11116 Rice Farming

11119 Other Grain Farming

1112 Vegetable and Melon Farming

111219 Other Vegetable (except Potato) and Melon

1113 Fruit and Tree Nut Farming

111334 Berry (except Strawberry) Farming

1114 Greenhouse, Nursery, and Floriculture Production

111421 Nursery and Tree Production

11191 Tobacco Farming

11192 Cotton Farming

11193 Sugarcane Farming

11194 Hay Farming

111991 Sugar Beet Farming

111992 Peanut Farming

111998 All Other Miscellaneous Crop Farming

11211 Beef Cattle Ranching and Farming, including Feedlots

11212 Dairy Cattle and Milk Production

11213 Dual-Purpose Cattle Ranching and Farming

1122 Hog and Pig Farming

11231 Chicken Egg Production

11232 Broilers and Other Meat Type Chicken Production

11233 Turkey Production

11234 Poultry Hatcheries

11239 Other Poultry Production

112390 Other Poultry Production

1124 Sheep and Goat Farming

1125 Aquaculture

112519 Other Aquaculture

11291 Apiculture

11292 Horses and Other Equine Production

11293 Fur-Bearing Animal and Rabbit Production

11299 All Other Animal Production

112990 All Other Animal Production

1131 Timber Tract Operations

1132 Forest Nurseries and Gathering of Forest Products

1133 Logging

11511 Support Activities for Crop Production

115111 Cotton Ginning

115112 Soil Preparation, Planting, and Cultivating

115113 Crop Harvesting, Primarily by Machine

115114 Postharvest Crop Activities (except Cotton Ginning)

115116 Farm Management Services

1152 Support Activities for Animal Production

1153 Support Activities for Forestry

31111 Animal Food Manufacturing

31142 Fruit and Vegetable Canning, Pickling, and Drying*

3115 Dairy Product Manufacturing*

311611 Animal (except Poultry) Slaughtering*

311615 Poultry Processing

31213 Wineries*

49313 Farm Product Warehousing and Storage

IF ON FARM*

(5) Applications for the GATE Certificate shall be made online at www.agr.georgia.gov. For

application assistance, applicants may contact the GATE Service Center at 855-327-6829

or 855-Farm Tax.

(6) The applicant must disclose the following information in order to be deemed eligible by

the Department:

(a) The name and address of the farm, ranch, timber operation, or other business owned

or operated by the applicant in relation to the production of agricultural products or

the custom agricultural service; and

(b) An authentic and active e-mail address.

(c) Applicant must provide the name of the primary certificate holder and the names

of no more than (2) authorized users. Commissioner has the authority to increase

the number of authorized users, at his discretion.

(7) Applicant must check boxes on the application which apply and attest that the information

provided is true and accurate. The information provided by the applicant will be shared

with the Georgia Department of Revenue.

(8) The Commissioner shall not issue or renew an agricultural sales and use tax exemption

until the agricultural producer requesting such certificate has provided the Commissioner

with a valid state taxpayer identification number obtained through, or recognized by, the

Department of Revenue’s Georgia Tax Center (https://gtc.dor.ga.gov).

(9) The Commissioner shall require applicants to acknowledge and produce, upon request, at

least one of the following forms to determine eligibility:

(a) IRS schedule F (Profit or Loss from Farming)

(b) IRS form 4835 (Farm Rental Income and Expenses)

(c) IRS schedule E (Supplemental Income and Loss)

(d) IRS form 4797 (Sales of Business Property)

(e) IRS form 1065 (U.S. Return of Partnership Income)

(f) IRS form 1120 (U.S. Corporation Income Tax Return)

(g) IRS form 1120S (U.S. Income Tax Return for an S Corporation)

(10) If an applicant does not file any of the forms provided for in paragraph (9) but claims

eligibility for the exemption certificate pursuant to the criteria specified in paragraph (3)

of this Rule, the applicant shall provide to the Commissioner any documentation, tax

returns, forms, or sales receipts required by the Commissioner, and the Commissioner of

Revenue, in his or her discretion, shall determine if the applicant has met such eligibility

requirements in determining whether to issue or deny the issuance of the certificate.

(11) Any agricultural sales and use tax exemption certificate issued or renewed on or after

January 1, 2019, shall be valid for three years except as provided in the schedule set forth

below. A certification fee of $150 will be required to obtain a GATE certificate. All fees

shall be paid online at www.agr.georgia.gov.

(a) In order to have staggered renewal dates for such three-year certificates, the

Commissioner of Agriculture will establish a renewal schedule of existing certificates

and prorate said renewals. The following schedule has been created for the 2019 Active

GATE Certificate year.

(i) The first 1/3 of active GATE certificate holders, determined alphabetically

according to the last name of the primary account holder, will renew for

three years and will be assessed the full fee of $150.

(ii) The next 1/3 of active GATE certificate holders, determined alphabetically

according to the last name of the primary account holder, will renew for two

years and will be assessed the prorated fee of $100.

(iii) The final 1/3 of active GATE certificate holders, determined alphabetically

according to the last name of the primary account holder, will renew for one

year and will be assessed a renewal fee of $50.

(12) Upon completion of the application and receipt of the certification fee online, a certificate,

including a unique certification number and a wallet sized certification card, will be mailed

to the mailing address provided by the applicant as confirmation of certification. The

Department may also issue a key-chain sized certification card, which shall also be

acceptable confirmation of certification. Replacement cards may be requested online. A

fee of $30 will be assessed for each replacement card. All certification information will be

forwarded to the Department of Revenue.

(13) Certificate holders shall maintain records of purchases of qualified agricultural products

exempt from sales and use tax and shall, upon request, furnish such records the

Commissioner and/or Commissioner of Revenue.

(14) The GATE Certificate is non-transferable.

(15) Certificate holders shall comply with all applicable laws and regulations and obtain all

appropriate governmental approval pertaining to the selling, advertising, marketing,

packaging, manufacturing, or other commercial handling of agriculture products.

(16) Any unauthorized use of the GATE Certificate may result in criminal prosecution.

Authority: O.C.G.A. § 48-8-3.3.

Rule 40-29-.03. Renewal Process

(1) The GATE Certificate must be renewed every three years, except as provided in the

renewal schedule identified in Rule 40-29-.02(11)(a). The procedure for renewal by

certificate holders previously authorized to use the GATE Certificate is as follows:

(a) Certificates expire December 31. The Department will begin accepting renewal

applications on November 1, prior to the new calendar year.

(b) Renewals shall be made online at www.agr.georgia.gov. For renewal assistance,

applicants may contact the GATE Service Center at 855-327-6829 or 855-

FarmTax.

(c) The renewal fee is $150. The renewal fee shall be paid online at

www.agr.georgia.gov.

(d) Failure to remit the renewal fee and application by the expiration date shall result

in the Certificate being designated as inactive and therefore ineligible for GATE

benefits.

(e) All information required in the application process will be reviewed, updated where

needed, and attested to by applicant.

Authority: O.C.G.A. § 48-8-3.3.

Rule 40-29-.05. Revocation of Certification

(1) Authorization to use the GATE Certificate may be suspended or revoked at any time if the

certificate is misused or if the owner fails to operate as a Qualified Agriculture Producer.

(2) Misuse of the GATE Certificate includes, but is not limited to, the following:

(a) The use of the Agriculture Tax Exemption Certificate for purchasing taxable items

that will be used in a manner that does not qualify for the exemptions found in

O.C.G.A. § 48-8-3.3 or the Rules and Regulations promulgated by the Georgia

Department of Revenue.

(b) The use of the Agriculture Tax Exemption Certificate by individuals or entities that

fail to meet the standards of a Qualified Agricultural Producer.

(c) Use of the Agriculture Tax Exemption Certificate by a person or entity other than

the specified certificate holder.

(3) Any evidence of misuse of the GATE Certificate or use of the Certificate by an ineligible

person or entity may be referred to the Georgia Agriculture Tax Exemption Advisory Board

or to the Department of Revenue for investigation and/or prosecution regarding misuse of

the certificate.

(4) The Department of Revenue shall be forwarded all information obtained by the Department

of Agriculture for the purposes of review, audit, and possible prosecution of violations.

(5) Authorization to use the GATE Certificate may be suspended or revoked pursuant to a

finding of misuse and/or a recommendation of revocation from the Department of Revenue.

Revocation pursuant to a finding of misuse and/or recommendation from the Department

of Revenue will be conducted through the Department of Agriculture.

(a) If an agricultural producer knowingly uses a tax exemption certificate unlawfully,

the Commissioner, after verifying the unlawful use of the tax exemption certificate,

and subject to notice and a hearing in accordance with Chapter 13 of Title 50, the

‘Georgia Administrative Procedure Act’, shall suspend the certificate for up to one

year.

(b) If a subsequent unlawful use is knowingly made within five years following the end

of the suspension, the Commissioner, after notice and hearing, shall determine if

the certificate should be revoked. Any agricultural producer who has had his or her

certificate revoked pursuant to this paragraph shall not be eligible for the issuance

of a new tax exemption certificate until three years from the date of such revocation.

Authority: O.C.G.A. § 48-8-3.3.