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