Georgia ~ Sales and Use Tax: House Passes Bill Containing Remote Seller Notice Requirements

CCH Tax Day Report

The Georgia House of Representatives has passed a sales and use tax bill that, if enacted as currently drafted, would expand the definition of “dealer” to include persons who fall under either of the following categories: (1) they obtained over $250,000 in gross revenue in the previous or current calendar year from retail sales of tangible personal property to be delivered electronically or physically to a location in Georgia for use, consumption, distribution, or storage for use in Georgia; or (2) they conducted at least 200 separate retail sales of tangible personal property in the previous or current calendar year to be delivered electronically or physically to a location in Georgia for use, consumption, distribution, or storage for use in Georgia. The Georgia Department of Revenue would also be authorized to file a declaratory judgment action in superior court against a person it believes falls under either of the two categories in order to establish that a sales and use tax collection obligation applies.

The bill would newly define “delivery retailer” as a non-collecting retailer that in the previous or current calendar year fell under either of the two categories described above. Delivery retailers would be required to collect sales and use tax, or to provide the following notice to potential purchasers before completing a sale: “Sales or use tax may be due to the State of Georgia on this purchase. Georgia law requires certain consumers to file a sales and use tax return remitting any unpaid taxes due to the State of Georgia.” Delivery retailers not collecting tax would further be required each year to send customers who made at least $500 in purchases during the previous calendar year a sales and use tax statement in an envelope labeled “IMPORTANT TAX DOCUMENT ENCLOSED,” and to file copies of these statements with the Department.

If enacted as currently drafted, the bill’s changes would apply to sales made on or after January 1, 2018.

H.B. 61, as passed by the Georgia House of Representatives on February 15, 2017

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