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#2247304 - 01/07/21 08:53 AM Discontinuing Safe Deposit Box Service
Community Banker Offline
Member
Joined: Nov 2008
Posts: 67
We are eliminating the safe deposit box service at our bank. I am trying to determine how long I need to give customers to remove their contents I understand that this is governed at the state level. Thus far, all I can find in Georgia law is reference to non payment and how long to wait before drilling. Does anyone know where I could find information on the advance notice required to close these boxes? Thanks so much!

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#2247306 - 01/07/21 01:18 PM Re: Discontinuing Safe Deposit Box Service Community Banker
Monster Offline
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Joined: Sep 2015
Posts: 455
Are you a member of GBA? I usually reach out the the state banking association group in the state we're looking at to ask their on staff attorney for guidance. Sorry I don't know the answer for GA, but maybe someone else will.

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#2247307 - 01/07/21 01:40 PM Re: Discontinuing Safe Deposit Box Service Community Banker
Community Banker Offline
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Joined: Nov 2008
Posts: 67
Thank you! Unfortunately we are not a member of GBA. I’ll keep watch for some other hints.

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#2247311 - 01/07/21 02:45 PM Re: Discontinuing Safe Deposit Box Service Community Banker
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
Safe Deposit Boxes are covered in this part of State law - I did not read it all, but I am not sure it is addressed. It may come down to what actions you have reserved in the contract. You need to get legal counsel involved.

https://law.justia.com/codes/georgia/2019/title-7/chapter-1/article-2/part-6/
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#2247313 - 01/07/21 03:23 PM Re: Discontinuing Safe Deposit Box Service Community Banker
waldensouth Offline
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waldensouth
Joined: Nov 2001
Posts: 7,979
FINALLY ABOVE the gnat line
It was not covered in the section Randy referenced that I can see. The safe box agreement may shed some light on this matter. I believe we used to give 6 months' notice that the boxes would be moved or removed and gave folks until until then to remove the contents. I am relying on memory here. You may also call the state banking department.
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#2247315 - 01/07/21 03:37 PM Re: Discontinuing Safe Deposit Box Service Community Banker
Community Banker Offline
Member
Joined: Nov 2008
Posts: 67
Thank you all for your suggestions. I have requested a copy of our lease from operations in hopes that it will address this. Otherwise, I will move forward with your suggestions. Thank you!

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#2247323 - 01/07/21 05:44 PM Re: Discontinuing Safe Deposit Box Service Community Banker
InFairness, CRCM Offline
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InFairness, CRCM
Joined: Nov 2010
Posts: 629
USA
I think it deals with unclaimed property aspects of safe deposit boxes, but O.C.G.A. §44-12-209 includes information on notices before drilling boxes.
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#2269686 - 04/27/22 01:43 PM Re: Discontinuing Safe Deposit Box Service Community Banker
WABComply Offline
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Joined: Jul 2017
Posts: 223
Community Banker:

Off topic- since you have Safe Deposit Boxes currently, we are opening a branch in GA and will be offering SAFE Deposit Boxes. Is there a tax on the sale of the SAFE Deposit Boxes? I am going to do my research but any information would be appreciated. Thank you.

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#2269688 - 04/27/22 02:24 PM Re: Discontinuing Safe Deposit Box Service Community Banker
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
https://dor.georgia.gov/taxes/business-taxes/sales-use-tax/what-subject-sales-and-use-tax

It does not look like it, but you can always call the Department of Revenue and ask.
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#2269693 - 04/27/22 02:49 PM Re: Discontinuing Safe Deposit Box Service rlcarey
WABComply Offline
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Posts: 223
Thanks. I do not think so either but I figured I would see what they were doing. I found a caselaw that seems to indicate that however I just need to make sure all the facts are similar. LR SUT 2014-16. Appears to deem the SAFE Deposit boxes as Real Property which is not taxed.

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#2269695 - 04/27/22 02:53 PM Re: Discontinuing Safe Deposit Box Service Community Banker
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
Well, you are renting the spaces and not selling them are you not?
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#2269698 - 04/27/22 03:39 PM Re: Discontinuing Safe Deposit Box Service Community Banker
WABComply Offline
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Joined: Jul 2017
Posts: 223
Correct.

Rental and sale of tangible property is taxed. Real Property is not. The locker is considered real property and should not be taxed. At least that is what I am getting from this.

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