Georgia Does Not Tax Internet Access
- Sep 3, 2014 | Gail Cole
As of this writing, the Internet Tax Freedom Act (ITFA) is set to expire on November 1, 2014. ITFA imposes a moratorium on the taxation of internet access charges in all but the 7 states with taxes in place when the ITFA was enacted in 1998. Georgia is currently prohibited from imposing tax on internet access charges by the ITFA.
Should ITFA expire, the 43 states currently banned from imposing sales tax on internet access could decide to tax it. Would Georgia do so?
The Georgia Department of Revenue has issued a policy bulletin (SUT-2014-01) to address that very question. It clarifies that Georgia law does not provide for the imposition of state or local sales tax on charges for Internet access.
In other words, under current law (independent of the ITFA) Georgia may not impose tax on internet access charges. Some lawmakers may be tempted to change that law if the ITFA expires—a tax on internet access in Texas generated approximately $2.5 million in 2013—but such a change would take time to implement.
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