Georgia Bill Would Lower Economic Nexus Threshold

Introduced Georgia sales tax legislation would lower the monetary economic nexus threshold and eliminate the notice and reporting election.

Potential Threshold Change

Currently, a “dealer” required to collect the state’s sales and use tax is a person who had in the previous or current calendar year from retail sales of property for electronic or physical delivery, use, consumption, distribution, or storage in Georgia:

– over $250,000 in gross revenue; or

– at least 200 separate retail sales.

(TAXDAY, 2018/05/11, S.7; TAXDAY, 2018/10/03, S.5)

The bill would lower the monetary economic nexus threshold from $250,000 to $100,000 on January 1, 2020, and leave the 200-transaction threshold unchanged.

Possible Elimination of Election

As currently drafted, the bill would eliminate for delivery retailers the election between collection and compliance with notice and reporting requirements. A “delivery retailer” is a non-collecting retailer who satisfies the $250,000 or 200-transaction threshold in the previous or current calendar year.

H.B. 182, as introduced in the Georgia House of Representatives on February 7, 2019

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup