Georgia Enacts Changes to Economic Nexus

Georgia Gov. Brian Kemp has signed legislation enacting sales and use tax economic nexus changes for the state. The Georgia Department of Revenue has issued guidance on the changes, Policy Bulletin SUT-2019-02. This bulletin supersedes previously issued Policy Bulletin SUT-2018-07.

Sellers Who Currently Collect Tax Under the Thresholds

A remote seller must keep collecting and remitting sales and use tax for calendar year 2019 on taxable Georgia sales if they:

  • elected to collect the tax under the $250,000/200-transaction economic nexus thresholds that took effect under previous legislation on January 1, 2019; and
  • met one of these thresholds for calendar year 2019.

Sellers Who Currently Opt for Notice & Reporting

For remote sellers who met one of the $250,000/200-transaction economic nexus thresholds that took effect under previous legislation on January 1, 2019, but who opted to comply with the notice and reporting requirements for calendar year 2019, the notice and reporting option is repealed effective April 28, 2019. Instead, these remote sellers must start collecting and remitting sales and use tax on their taxable Georgia sales by July 1, 2019.

Change in Economic Nexus Thresholds January 1, 2020

On January 1, 2020, the economic nexus thresholds change. On that date, a remote seller must collect and remit Georgia state and local sales and use tax on their taxable Georgia sales if they have in the current or previous calendar year:

  • over $100,000 in Georgia retail sales of tangible personal property or property delivered electronically; or
  • at least 200 of such sale transactions.

H.B. 182, Laws 2019, effective July 1, 2019, and applicable as noted; Policy Bulletin SUT-2019-02, Georgia Department of Revenue, May 7, 2019

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