While we wait for the U.S. Supreme Court’s decision regarding online sales tax, states are continuing to take matters into their own hands. Georgia recently passed House Bill 61, legislation requiring online retailers that make at least $250,000 or 200 sales a year in the state to collect sales tax or send “tax due” notices to customers spending a minimum of $500 on their websites.
Georgia’s Online Sales Tax Bill & The Supreme Court
Georgia’s new online sales tax law will go into effect January 1, 2019, however depending on how the Supreme Court rules on the Wayfair v. South Dakota case, Georgia’s new legislation may be blocked. That doesn’t necessarily mean the end of the law, though.
As Bloomberg explains, “Either way, the requirements might put Georgia in line for a lawsuit of its own… if the Supreme Court upholds the physical presence standard, Georgia’s collection requirement would remain constitutionally unenforceable, but dealers meeting either of the thresholds would be subject to the notice and reporting requirements.”
However, if the Supreme Court rules in favor of South Dakota and overturns Quill, it may mean Georgia’s Legislature consider revising the bill to take the reporting and notification option out.
It will be interesting to see how the Supreme Court’s ruling (which is expected by the end of the month) affects this new law passed by Georgia’s Legislature. Do you think it’s worth it for states to take matters into their own hands now, or should they wait until they find out what happens with the Wayfair case? Let me know what you think in the comments!
In the meantime, please let me know if you have any questions about how online sales tax or other multi-state tax issues may affect your business. I’d love to help!
Miles Consulting Group, Inc. is a professional service firm in San Jose, California specializing in multi-state tax solutions. Our firm addresses state and local tax issues for our clients, including general state tax consulting, nexus reviews, tax credit and tax incentive maximization, income tax and sales/use tax planning and other special projects. To learn more, contact us today at www.MilesConsultingGroup.com.
