Georgia to Require Online Sellers to Collect and Remit Sales Tax

On Tuesday, May 8, 2018, Georgia’s Governor Nathan Deal signed House Bill 61 (HB 61) into law. HB 61 requires online retailers who make at least $250,000 or 200 sales a year in Georgia to either collect and remit state sales tax on purchases or send “tax due” notices annually to customers who spend at least $500 on their sites. The bill provides for collection of sales tax by remote sellers starting January 1, 2019.

As we’ve mentioned in our previous updates about the online sales tax case before the U.S. Supreme Court, state and local governments have been clamoring to capitalize on significant online sales tax collections, previously prohibited by a 25-year old ruling by the Supreme Court that nexus determined applicability of sales tax collection.

Passage of HB 61 is a preemptive move by the state, and correlates to our previous alerts discussing “accelerated timetables” for state implementation of sales tax collection responsibilities.

While January 1, 2019 is seven months away, ensuring online sellers are prepared to charge, collect and properly report on state and local tax collections must begin immediately. Please call Tim Howe or Nick Patel at Smith and Howard 404-874-6244 or complete the contact form on this page and they will follow up with you quickly.