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Georgia House Goes a Step Further to Collect Sales Taxes

Georgia House to Require “Marketplace Facilitators” like Uber, Airbnb, and Ebay to Collect Sales Taxes

In the wake of the U.S. Supreme Court’s June 2018 decision in South Dakota v. Wayfair, Inc., a number of states have quickly moved to require out-of-state Internet-based sellers to collect and remit sales taxes on in-state purchases. For example, a new law took effect in Georgia on January 1, 2019, mandating retailers collect that state’s 4 percent sales tax for all online sales.

Now, Georgia legislators may go a step further and compel “marketplace facilitators” like eBay, Uber, and Airbnb to collect state sales tax on transactions completed by their users.

House Bill 276

On March 4, the Georgia House of Representatives passed House Bill 276 by a vote of 158-6. HB 276 proposes to expand the definition of what businesses qualify as “dealers” required to collect and remit sales tax. Specifically, the bill states anyone who “[a]cts as a marketplace facilitator to facilitate retail sales” in excess of $100,000 per year is now a dealer.

A “marketplace facilitator,” in turn, is any business that provides services designed to “facilitate a retail sale that is taxable” under Georgia law.

This includes but is not limited to the following:

  • providing any physical or electronic infrastructure to to bring “purchasers and marketplace sellers together”;
  • transmitting or communicating any offers (or acceptance of offers) between purchasers and sellers;
  • processing and collecting payments from purchasers on behalf of sellers;
  • taking orders or reservations on behalf of sellers; or
  • providing advertising, marketing, or other promotional services.

To put this in practical terms, HB 276 would likely apply to the following situations:

  • A resident of Macon, Georgia, purchases a computer on eBay from an out-of-state seller. HB 276 requires eBay to collect and remit the Georgia sales tax on this purchase.
  • A group of friends in downtown Atlanta arrange for a ride via the Uber app. HB 276 requires Uber to collect and remit the sales tax on this sale.
  • Out-of-state tourists arrange to stay in a private home in Augusta by making a reservation using Airbnb. Now Airbnb must then make sure to collect and remit the sales tax.

In other words, this Bill shifts the burden of dealing with sales taxes away from the individual sellers; many of whom may be too small to register with Georgia authorities; and places it on the companies that “facilitate” transactions with the purchasers.

GA Stands to Receive Millions from Online Sites

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Remote Seller + New Year = New Sales Taxes

Remote Sellers…..Are you ready?

Seven states implemented their economic nexus sales tax rules for remote sellers with the new year.

These States all have effective dates of January 1st.

  • District of Columbia
  • Georgia
  • Iowa
  • Louisiana
  • Nebraska
  • New York
  • Utah

Do you have your sales tax rates in place for each state?  Do you know if you meet the thresholds? See our Economic Nexus Chart for a complete overview of the States and their guidelines.

STATE$ Gross Receipts
Limit
# Retail Sales
Transactions
EFFECTIVE DATEDepartment of Revenue Links
Alabama$250,000October 1, 2018AL DOR Announement
ArkansasProposed $100,000Proposed 200TBDHouse Bill 1002 still in discussion.
Colorado$100,000200December 1, 2018CO Info for Remote Sellers
Connecticut$250,000200December 1, 2018CT DOR Announcement
District of Columia$200,000200January 1, 2019DC Internet Sales Tax Amendment Act of 2018
Georgia$250,000200January 1, 2019GA Requirements
Hawaii$100,000200July 1, 2018HI DOR Announcement
Indiana$100,000200October 1, 2018IN DOR Tax Bulletin
Iowa$100,000200January 1, 2019IA DOR Announement
Kentucky$100,000200July 1, 2018KY Ruling FAQs
Louisiana$100,000200January 1, 2019Louisiana DOR
Maine$100,000200July 1, 2018ME Help for Remote Sellers
Maryland$100,000200October 1, 2018MD DOR Tax Alert
Massachusetts$500,000100October 1, 2017MA DOR rule has been in effect since 2017
Michigan$100,000200October 1, 2018MI DOR Document
Minnesota$100,000100October 1, 2018MN Bulletin for Remote Sellers
Mississippi$250,000September 1, 2018MS DOR Guidance for Online Sellers
Nebraska$100,000200January 1, 2019NE DOR News Bulletin
New Jersey$100,000200October 1, 2018NJ DOR Notice for Remote Sellers
New York$300,000100January 1, 2019NYS DOR Announcement
North Carolina$100,000200November 1, 2018NC DOR Directive
North Dakota$100,000200October 1, 2018ND DOR
Pennsylvania$10,000March 1, 2018PA DOR
Rhode Island$100,000200RI DOR FAQs for Remote Sellers
South Dakota$100,000200October 1, 2018 SD DOR Remote Seller Law
Texas$500,000October 1, 2019
Utah$100,000200January 1, 2019Online Sales Tax Amendments
Vermont$100,000200July 1, 2018VT DOR
Virgina$100,000200TBD
Washington$100,000200October 1, 2018WA DOR
Wisconsin$100,000200October 1, 2018WI DOR FAQs
Wyoming$100,000200Date TBDWY DOR Page

We Have The Tax Rates

Zip2Tax has Sales  and Use Tax Tables that offer a wide range of options to meet your needs.  Online shopping cart integration, ERP system platforms, call centers and invoicing programs. Single state, entire US and/or Canada, monthly subscriptions or one-time downloads…whatever you need.

All ZIP codes in every State included—over 12,000 jurisdictions!

Automate your online shopping cart with sales tax data at the point of sale. A secure sales tax API connects your database to the Zip2Tax constantly updated servers to power your e-commerce site with a real-time data when you need it.

arizona sales tax rate online lookup by zip2taxarizona az sales tax rate ecommerce api by zip2taxarizona sales tax rate from state sales tax rates tables from zip2tax

Use this handy comparison chart to match our services to your needs.

 

Internet Sales Taxes and Remote Sellers

internet shopperInternet Sales Taxes

The United States Supreme Court ruled in South Dakota v. Wayfair on June 21, 2018, that states can require remote sellers to collect and remit sales tax on items delivered to locations within their state regardless of physical presence.

Remote Sellers

If you sell to a state, but do not have a physical presence in that state, you are now a Remote Seller.  As a remote seller, you will need to check with each state to determine if you are required to register in that state.

Who-What-Where-When-Why

Registration requirements, small business exemptions, effective dates, and other factors all vary by state.  Some states have not published their rulings yet; and other states don’t have plans to implement a ruling in the near future.

The following chart will be updated regularly as new information becomes available.  It is not legal advice, but it is an informative reference with links to the departments of revenues and their publications on the topic.

STATE$ Gross Receipts
Limit
# Retail Sales
Transactions
EFFECTIVE DATEDepartment of Revenue Links
Alabama$250,000October 1, 2018AL DOR Announement
ArkansasProposed $100,000Proposed 200TBDHouse Bill 1002 still in discussion.
Colorado$100,000200December 1, 2018CO Info for Remote Sellers
Connecticut$250,000200December 1, 2018CT DOR Announcement
District of Columia$200,000200January 1, 2019DC Internet Sales Tax Amendment Act of 2018
Georgia$250,000200January 1, 2019GA Requirements
Hawaii$100,000200July 1, 2018HI DOR Announcement
Indiana$100,000200October 1, 2018IN DOR Tax Bulletin
Iowa$100,000200January 1, 2019IA DOR Announement
Kentucky$100,000200July 1, 2018KY Ruling FAQs
Louisiana$100,000200January 1, 2019Louisiana DOR
Maine$100,000200July 1, 2018ME Help for Remote Sellers
Maryland$100,000200October 1, 2018MD DOR Tax Alert
Massachusetts$500,000100October 1, 2017MA DOR rule has been in effect since 2017
Michigan$100,000200October 1, 2018MI DOR Document
Minnesota$100,000100October 1, 2018MN Bulletin for Remote Sellers
Mississippi$250,000September 1, 2018MS DOR Guidance for Online Sellers
Nebraska$100,000200January 1, 2019NE DOR News Bulletin
New Jersey$100,000200October 1, 2018NJ DOR Notice for Remote Sellers
New York$300,000100January 1, 2019NYS DOR Announcement
North Carolina$100,000200November 1, 2018NC DOR Directive
North Dakota$100,000200October 1, 2018ND DOR
Pennsylvania$10,000March 1, 2018PA DOR
Rhode Island$100,000200RI DOR FAQs for Remote Sellers
South Dakota$100,000200October 1, 2018 SD DOR Remote Seller Law
Texas$500,000October 1, 2019
Utah$100,000200January 1, 2019Online Sales Tax Amendments
Vermont$100,000200July 1, 2018VT DOR
Virgina$100,000200TBD
Washington$100,000200October 1, 2018WA DOR
Wisconsin$100,000200October 1, 2018WI DOR FAQs
Wyoming$100,000200Date TBDWY DOR Page

We Have The Tax Rates

Zip2Tax has Sales  and Use Tax Tables that offer a wide range of options to meet your needs.  Online shopping cart integration, ERP system platforms, call centers and invoicing programs. Single state, entire US and/or Canada, monthly subscriptions or one-time downloads…whatever you need.

All ZIP codes in every State included—over 12,000 jurisdictions!

Automate your online shopping cart with sales tax data at the point of sale. A secure sales tax API connects your database to the Zip2Tax constantly updated servers to power your e-commerce site with a real-time data when you need it.

Use this handy comparison chart to match our services to your needs.  Then give us a call, email or Chat!

 

 

Sales Tax Holidays for 2018

Sales Tax Holidays

Sales Tax Holidays

STATEITEMS INCLUDED / MAXIMUM COSTMONTHDAYSLink to MORE DETAILS
AlabamaHurricane Preparedness
Generators - $1,000
Supplies - $60
February23-25Alabama Department of Revenue
AlabamaBack to School
Clothing - $100
Computers - $750
School Supplies - $50
Books - $30
July20-22Alabama Department of Revenue
ArkansasBack to School
Clothing - $100
School Supplies
August4-5Arkansas Department of Revenue
ConnecticutBack to School
Clothing and Footwear - $100
August19-25Connecticut Department of Revenue
FloridaDisaster Preparedness
Generators - $750
Other Supplies - $50
June1 - 7http://floridarevenue.com/
FloridaBack to School
Clothing - $60
School Supplies - $50
August3 - 5http://floridarevenue.com/
IowaBack to School
Clothing - $100
August3 - 4Iowa Department of Revenue
LouisianaAnnual Sales Tax Holiday
All TPP - $2,500
August3 - 4 Louisiana Department of Revenue
LouisianaHurricane Preparedness
Supplies - first $1,50(2% rate reduction)
May26 - 27Louisiana Department of Revenue
LouisianaFirearms
Ammunition
Hunting Supplies
September7 - 9Louisiana Department of Revenue
MarylandEnergy Star ProductsFebruary17 - 18Maryland Department of Revenue
MarylandBack to School
Clothing and Footwear - $100
August12 - 18Maryland Department of Revenue
MississippiBack to School
Clothing and Footwear - $100
July27 - 28Mississippi Department of Revenue
MississippiFirearms
Ammunition
Hunting supplies
August / Sept31 - Sept 2Mississippi Department of Revenue
MissouriEnergy Star Products - $1,500April19 - 25Missouri Department of Revenue
MissouriBack to School
Clothing - $100
Computers - $1,500
School Supplies - $50
August3 - 5Missouri Department of Revenue
New MexicoBack to School
Clothing - $100
Computers - $1,000
Computer Equipment - $500
School Supplies - $30
August3-5New Mexico Department of Revenue
OhioBack to School
Clothing - $75
School Supplies - $20
August3-5https://www.tax.ohio.gov/
OklahomaBack to School
Clothing - $100
August3-5http://www.tax.ok.gov/
South CarolinaBack to School
Clothing
School Supplies
Computers
Other
August3-5South Carolina Department of Revenue
TennesseeBack to School
Clothing - $100
School Supplies - $100
Computers - $1,500
July27-29Tennessee Department of Revenue
TexasHurricane Preparedness
Generators - $3,000
Storm devices - $300
Preparedness items - $75
April28-30Texas Department of Revenue
TexasEnergy Star Products
Air conditioners - $6,000
Other - $2,000
May26-28Texas Department of Revenue
TexasBack to School
Clothing, backpacks and school supplies - $100
August10-12Texas Department of Revenue
VirginiaBack to School
Clothing - $100
School Supplies - $20
Energy Star Products - $2,500
Hurricane preparedness items - $60
Generators - $1,000
August3-5Virginia Department of Revenue
WisconsinBack to School
Clothing, Supplies - $75
Computer Supplies - $250
Computers - $750
August 1-5https://www.revenue.wi.gov/

For further tax holiday information check out this article.

Are Pumpkins Tax Exempt in the Fall?

pumpkins

In three states, Pumpkins Are Exempt from Sales Tax…Unless They’re For Carving.

Sometimes, sales tax laws just don’t seem to make sense. Like, who in Indiana thought it was so important to make a distinction between marshmallows and marshmallow creme?  Well, in Indiana, you’ll have to pay sales tax on your marshmallows, but your marshmallow creme gets off tax-free.

Pumpkins are exempt from sales tax in Iowa, Pennsylvania, and New Jersey, but only if the pumpkins are for food rather than jack-o-lanterns.  Sounds like someone likes Thanksgiving more than Halloween!

To check out more weird tax laws click here.

10 weirdest sales tax laws pumpkins from zip2tax

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