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Georgia Wants to Collect Online Sales Tax

  • Jan 3, 2013 | Gail Cole

 Georgia to Collect Online Sales Tax From Vendors With Georgia Affiliates.

Georgia is taking steps to join the growing list of states that collect sales and use taxes from online vendors. Beginning January 1 of this year, House Bill 386 expands the definition of "who must collect." But the state isn't stopping there. The Times Argus reports that "the tug-of-war between the state and online sellers is heating up."

As of January 1, 2013, online retailers that "use ads on Georgia-based websites as a gateway to their own sites" will have to collect and remit Georgia sales and use taxes. The E-Fairness component of HB 386 redefines "Dealer" to "include out-of-state vendors who sell or refer products to Georgians through affiliates located in Georgia." An estimated 6,000 affiliates in Georgia send business to online retailers.

"Amazon has stopped running its click-through ads on websites that would trigger the need to collect sales tax" in some states, such as Colorado and Illinois. It is unclear how the retail giant will react to the change in Georgia's law; "Georgia tax commissioner Douglas MacGinnitie said he was not able to discuss whether Amazon had been in contact with the state." Online retailer Overstock.com has already terminated its relationship with Georgia-based affiliates (Times Argus).

"Current estimates indicate that online retailers will remit an additional $18 million to the Georgia Department of Revenue this coming year." (The blog at georgia.gov). The rate of sales tax in Georgia ranges from 6% to 8%.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.