Sales tax jurisdictions don’t always map neatly to ZIP code boundaries. This realization is leading toward legislation in the Georgia state house. House Bill 115 would make the Department of Revenue collect and redistribute revenue using all nine digits in a ZIP code.
According to the Atlanta Constitution Journal,
That way, money collected in Johns Creek’s portion of 30097 would get to that north Fulton County city and not Gwinnett County, as many suspect happens now.
Ditto for money from some parts of 30075 going to Cobb County, not Fulton. And so on, to the tune of millions of dollars statewide.
But while nine digit ZIP codes are more accurate than simple ZIPs used now by the Department of Revenue, they still don’t map accurately to all tax jurisdictions. Many taxing authorities have boundaries based on something other than ZIP code. Tax rates can be levied by transit authorities, counties, cities, and sports arena zones. The legislation would increase collection and remittance complexity for small businesses without fully solving the problem.
Avalara tracks more than 17,000 of these jurisdictions in North America alone. Our customers can rest assured that they are collecting and remitting using the most accurate rates available, perhaps even more accurate than those used by their state’s Department of Revenue.
Interested? Find out what makes AvaTax the most accurate, affordable way to calculate, collect and remit sales tax.