Ga. Comp. R. & Regs. r. 560-12-2-.92 — Nursing Homes, General or Mental Hospitals

(1) Definitions. (a) Licensed Non-Profit Nursing Home. 1. A licensed non-profit nursing home means any institution, not operated for profit, which admits for temporary residence in the institution patients or medical referral only and for whom arrangements have been made for medical care, and which meets the requirements and maintains the services and facilities specified in subsections (c), (d), or (e) of Regulation 270-3-4-.02, Official Compilation, Rules and Regulations of the State of Georgia, as it read on March 29, 1971, and which holds a permit for such operation as a nursing home issued by the Department of Public Health under Regulation 270-3-4-.05, Official Compilation, Rules and Regulations of the State of Georgia. (b) Non-Profit General Hospital. 1. A non-profit general hospital means any institution, not operated for profit, designed, equipped, staffed and operated to receive persons in need of hospitalization for any physical illness or disability for temporary residence in the institution for diagnosis, treatment, and other offered health services, which include medical, and surgical services, for periods continuing twenty-four (24) hours or longer under the supervision of an active, licensed, professional, medical and nursing staff. An institution is not a general hospital if its services are limited by policy, practice, or the manner in which it holds itself out to the public, so that it would fall within the classifications established under subsections (5), (6), or (7) of Regulation 270-3-2-.03, Official Compilation, Rules and Regulation of the State of Georgia, as it read on March 29, 1971. For example, a hospital which limits its services to the treatment of specific illnesses is not a general hospital. An institution may be a general hospital if admission is limited to persons of a specific age class if with respect to that class it performs general hospital treatment functions, which must include medical and surgical services but which as a result of limited admission do not include the other services typically provided by general hospitals such as obstetrical services. (c) Non-Profit Mental Institution. 1. A non-profit mental hospital means any institution, not operated for profit, which is designed, equipped, staffed and operated for the purpose of receiving mentally ill persons for temporary institutional residence for psychiatric and other health services, which must include psychiatric evaluation, diagnosis and treatment, for continuous periods of twenty-four (24) hours or longer, under the supervision of an active, licensed, professional nursing and psychiatric staff. (2) Certificate of Exemption. (a) Application for Certificate of Exemption. 1. Applications for exemption by institutions described in Section (1) shall be made to the State Revenue Commissioner on Sales Tax Form ST-NH-1. The application must contain the following: (i) A statement of the name and address of the institution, the date on which the institution was first operated, and such other information as the Commissioner may require. (ii) A copy of the application, and all exhibits thereto, made to the Internal Revenue Service and a copy of the Internal Revenue Services determination letter confirming the exempt status of the institution under the Internal Revenue Code of 1954. (iii) A copy of any permit issued by the Department of Public Health of the State of Georgia with respect to the performance of the functions by virtue of which an exemption is claimed. (iv) A copy of the non-profit charter or other governing instrument under which the institution is operated. (v) A written verified statement of its admission policies. (b) Upon approval of an application, a certificate of exemption shall be issued by the Commissioner which shall authorize tax-free purchases by the institution for the purposes described in Section 3. Sales by dealers to institutions which have not been issued a certificate of exemption will be presumed taxable. (3) Scope of Exemption. (a) Purchases. Exemption certificates are validly used only for purchases by the institution of tangible personal property and services for use exclusively by the institution in performing a general nursing home or hospital treatment function. Purchases by the institution, for example, of property for the personal use of a staff member outside the facilities used for nursing or health services are not exempt. Generally, property placed within a facility used for the purposes of performing the nursing or health services will be considered exempt. The exemption is validly used only by an institution to which the certificate has been issued and does not affect the liability of any other person. A contractor engaged in real property improvement for the institution is not exempt. (b) Sales. Sales by the institution to which a certificate under this Section has been issued are not exempt under this Regulation. (c) Multi-Function Institutions. An institution which performs a function which would entitle it to an exemption but which performs additional non-exempt functions, will be issued an exemption certificate. Such certificate may be validly used only for property or services used exclusively in performing the exempt functions and may not be used for property or services employed in performing the non-exempt function. Continued use of the exemption certificate for non-exempt purchases will be ground for revocation of the certificate. If a certificate is revoked, tax paid on exempt purchases will be refunded upon a properly supported claim for refund. Cite as Ga. Comp. R. & Regs. R. 560-12-2-.92 Authority: Ga. L. 1937-38, Extra Sess., pp. 77, et seq. , as amended; Ga. Code Ann., Secs. 92-8405, 8406, 8409, 8427; Ga. L. 1951, pp. 360, 385; Ga. Code Ann., Sec. 92-3438a. History. Original Rule was filed on July 12, 1971; effective August 1, 1971.