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News
Ga. new internet tax could prompt challenge
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Ga. new internet tax could prompt challenge

Ga. new internet tax could prompt challenge

Ga. new internet tax could prompt challenge

The State Department of Revenue should know by the end of next month whether out-of-state retailers are abiding by a new law to collect sales tax on internet purchases from Georgia.

The new law that went into effect January 1 is expected to general $16 million to the state. Merchants are not required to file with the department until the end of February.

But three weeks in, Amazon is the first publically know company not to comply.

“The department is certainly aware of the law and will take appropriate steps to enforce it just like we do every other tax law in the state of Georgia,” says Revenue Commissioner Doug MacGinnitie.

He tells WSB’s Sandra Parrish, while he cannot comment on Amazon directly; he would not be surprised by a legal challenge from that company or any other merchant.

“The general constitutional rule is you have to have a physical presence in the state before the state can require you to collect sales tax,” says MacGinnitie.  “It would not surprise me if some merchants challenge this new law under the theory they still do not have a physical presence in this state but we will, of course, enforce the law and let the courts decide that.”

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News

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