United States

Georgia: Use Tax Notice and Reporting Bill Passed Legislature

Apr 09, 2018
From KPMG TaxWatch

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Recently, the Georgia legislature passed House Bill 61, which would require certain retailers to either collect and remit sales and use tax or comply with specified notice and reporting obligations. Per the bill, a so-called  “delivery retailer” is a retailer that does not collect and remit the state’s sales and use tax and that, in the previous or current calendar year, (1) had gross revenue exceeding $250,000 from retail sales delivered within Georgia or (2) conducted 200 or more retail transactions for delivery within Georgia. Effective for sales made on or after January 1, 2019, a delivery retailer (who by definition is not collecting and remitting sales and use tax) must comply with three notice and reporting requirements. The first is a time-of-sale notice to each potential purchaser that sales or use tax may be due. The second is to send (by January 31 of each year) an annual statement to customers with purchases totaling $500 or more indicating the volume of purchases made and that tax may be due. Finally, the delivery retailer must file a copy of the annual statement with the Department by January 31 of each year. There are penalties ($5 for the transactional notices and $10 for the annual statements) for each such failure to provide the required notices or statements. The bill also redefines the term “dealer” to include persons that meet the $250,000 or 200 transactions requirement. Per the bill, the Department may bring a declaratory judgment action in state court against any person the Department believes meets the new dealer definition. If the Department does so, the court must (upon motion), enjoin enforcement if the constitutionality of the definitions are at issue, and the court must act “in an expeditious manner.” Of course, this provision may be moot pending the outcome of the Wayfair case currently pending before the U.S. Supreme Court. Please contact Ben Cella at 404.979.2012 with questions on House Bill 61.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.