TaxConnex Sales Tax Blog

    Sales Tax Nexus for Internet Retailers in Georgia

    Posted by Brian Greer on Thu, Mar 22, 2012 @ 01:10 PM

    Georgia House Bill 386 is running through the Georgia legislation quickly and stands a final vote in the Senate today.  The bill passed in the House earlier this week by a vote of 155 in favor and 9 against.  Among other tax reforms, this Bill introduces “Amazon Laws” to Georgia.  Currently, out-of-state online retailers with no sales tax nexus in the state are not required to collect sales tax.  However, online retailers with in-state affiliates that refer business to the out-of-state retailer for some type of consideration (for example, a commission) via a click-through on their website will now be considered to have sales tax nexus in Georgia.  As such, they will be required to collect sales tax.  Similar legislation has been enacted elsewhere with the typical result being that the out-of-state retailer drops their affiliate program in said state.  The end result has been no additional sales tax revenue.  Stay tuned to see if this Bill passes – all indications are that it will.  Then we’ll wait and see how the internet retailers react.

    Has anyone seen when Governor Deal plans to sign this bill?  Has anyone heard what the internet retailers plan to do once this is signed?

    Topics: sales tax nexus, click-through nexus, Amazon laws, internet sales tax