Online sales continue to have a negative impact on state and local tax revenue, and Georgia is the latest state to take action.
Georgia Governor Nathan Deal recently signed House Bill 61 legislation, which is an economic nexus law on internal sales and will affect certain retailers who conduct business in the state of Georgia. The law will require retailers who make sales outside of Georgia, for delivery into Georgia, to either collect and remit tax on those sales, or provide notice to purchasers that tax may be due. These retailers must send tax statements each year to purchasers who spend at least $500, and must file such statements with the Georgia Department of Revenue.
Retailers who are subject to this economic nexus include those in the previous or current calendar year who:
- Have over $250,000 in gross revenue from retail sales of tangible personal property to be delivered to a location in Georgia, or
- Have conducted 200 or more separate retail sales of tangible personal property to be delivered to a location in Georgia.
If you have any questions about this or similar legislation, contact your state and local tax professional.