2019-01-09 / Community

New Online Sales Tax Now In Effect in Georgia

You could be paying more for your next online order in Georgia.

A new law is in effect today which adds the state sales tax to online orders.

Lawmakers say it's about creating fair competition. Why would customers buy a product in store when they can buy the same exact item in front of their computer and avoid the sales tax?

Those with the state say they've been waiting several years to make this change.

The new internet sales tax states online retailers that bring in at least $250,000 in sales or complete 200 individual sales transactions must collect a state sales tax. Or, they must send out tax due notices to their customers who have spent more than $500 on their websites.

The state says with online shopping becoming so popular, state and local governments are missing out on much needed revenue generated by the sales tax.

By creating this new law, the state expects to see an additional 500 to 600 million dollars a year.

"The tax revenue goes into the general fund. It will generate a whole lot locally. People forget that the fifth sales tax penny reduces property taxes. If that gets eaten into because people aren't paying the sales tax, then there's no other way to get it then through property tax,” District 164 Rep. Ron Stephens said.

In order to keep the competition fair in other fields, lawmakers say they're also considering implementing taxes on ride share services and temporary vacation rentals.

Now, don’t get too comfortable with this new tax. Like any new law, lawmakers are expected to make some changes to it during this upcoming legislative session which begins on Jan. 14.

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