Valdosta Daily Times

State News

October 10, 2012

Georgia aims to collect more tax from online buys

ATLANTA — With changes in the tax law taking effect this month, Georgia intends to begin treating some online retailers the same way it treats those with stores here: by collecting sales tax.

That will mean that Georgians who avoid paying sales tax by buying online may now find that harder to do, officials said.

The amount of money people spend online continues to grow steadily, The Atlanta Journal-Constitution reported (http://bit.ly/QPCdz3 ).

A 2009 study projected that Georgia would lose as much as $455.5 million in uncollected sales tax from online purchases in 2012.

Collecting the tax from some web sellers that were not previously required to charge sales tax will add an estimated $18 million a year to the state’s coffers, officials predict.

Stores are only required to charge sales tax for online purchases in a state if they have a physical presence in that state: a Macy’s store at Lenox Square, for example, or a call center in Alpharetta.

Georgia has expanded its definition of the “physical presence” of a business in an effort to get more online stores to collect sales tax from their customers.

Beginning last week, that included companies that use warehouses or offices in Georgia, whether they own them or not. At the end of the year, it will also include companies that have click-through ads on Georgia-based websites, known as affiliate relationships.

“It attempts to level that playing field a bit,” Ken Heaghney, economist for the state, told the Journal-Constitution. “We want them (online and local retailers) to compete on the merits of service and products and pricing.”

It’s also an issue of fairness for stores in local strip centers and shopping malls, which pay property taxes and contribute to the fabric of a community. A desire to put them on equal footing with online competitors has galvanized support to extend sales tax collections in many states.

“It means a great deal to small business,” said Rick McAllister, president and CEO of the Georgia Retail Association. “It’s tough to start out the day at a mom-and-pop retail store when you’re at an 8 percent disadvantage before you open the door.”

———

Information from: The Atlanta Journal-Constitution, http://www.ajc.com

 

For more on this story and other local news, subscribe to The Valdosta Daily Times e-Edition, or our print edition

1
Text Only
State News
  • Ga. woman sentenced in child abuse case

    The mother of a 1-year-old boy who was hospitalized with a fractured skull in 2012 has been sentenced to nine years in prison.

    July 29, 2014

  • Kingston’s loss means less clout for Ga.

    For two decades, Rep. Jack Kingston was a congressman who routinely crushed his opponents on election night — winning a new term every other year with vote totals between 63 and 77 percent.

    July 28, 2014

  • salmonella 2 copy.jpg Trial nears for suspects in salmonella case

    Three people accused of scheming to manufacture and ship salmonella-tainted peanuts that killed nine people, sickened more than 700 and prompted one of the largest food recalls in history are set to go to trial this week in south Georgia.

    July 28, 2014 1 Photo

  • 2 injured in western Georgia small plane crash

    Fire officials say two people were hospitalized after small plane crash in western Georgia. 

     

    July 27, 2014

  • Nuclear Construction_Rich(1) copy.jpg Promises of easier nuclear construction fall short

    The U.S. nuclear industry has started building its first new plants in decades using prefabricated Lego-like blocks meant to save time and money and revive the once promising energy source.
    So far, it’s not working.

    July 27, 2014 1 Photo

  • Battle of Atlanta_Rich copy.jpg Civil War battle sites have a mobile app

    This week marks the 150th anniversary of the Battle of Atlanta, one of the key conflicts of the Civil War, and researchers at Emory University’s Center for Digital Scholarship have released a mobile app for the tour.

    July 26, 2014 1 Photo

  • Kingston, Perdue make final pitch in Senate race

    U.S. Senate hopefuls Jack Kingston and David Perdue hit every corner of the state in one final scramble before Georgia Republicans will choose one of them to take on Democratic nominee Michelle Nunn this fall in one of the nation’s most significant midterm election matchups.

    July 22, 2014

  • Senate race zeroes in on metro Atlanta, north Ga.

    Neither Republican running in Georgia’s closely watched Senate race has a natural advantage in metro Atlanta, where the state’s most populous area and a ring of northern exurbs are serving as the key battleground ahead of Tuesday’s runoff.

    July 21, 2014

  • Kingston, Perdue: Teamwork begins after runoff

    Businessman David Perdue and Rep. Jack Kingston have plenty of criticisms for each other as they appeal for votes ahead of Georgia’s Republican Senate primary runoff.

    July 20, 2014

  • Senate-Georgia_Rich copy.jpg Kingston, Perdue offer few details on budget fixes

    Neither Rep. Jack Kingston nor businessman David Perdue has detailed a clear course for changing the nation’s fiscal situation, instead broadly railing against government spending and debt in their campaign for Georgia’s open U.S. Senate seat.

    July 18, 2014 1 Photo

Top News
Poll

Do you agree with the millage rate increases?

Yes. We need to maintain services
No. Services should have been cut.
     View Results