Do you own a retail business?
Do you shop online?
Have you heard of the term Tax Disparity?
Online sales are not currently being taxed; therefore buyers are saving the 7% sales tax. Many customers will walk into a store – check the price of an item, walk out – then google the same item – and buy it online. The small business owners are at a 7% disadvantage.
The General Assembly is considering legislation that would require online retailers with at least $250,000 or 200 retail sales a year in Georgia to collect and remit to the state sales taxes on purchases.
Without this requirement in place, state and local governments are losing millions of dollars in tax revenues every year - a state fiscal analysis estimates that collecting those taxes could mean an extra $274 million in revenue for the state and $200 million for local governments. Just as importantly, the lack of e-Fairness can have a devastating impact on small brick and mortar businesses in Georgia’s cities. These businesses, the backbone of our cities, are often the victim of “showrooming,” a practice where customers shop at a local store but buy online to avoid paying sales taxes. This practice results in a 6-7 percent competitive price disadvantage to the online retailers who don’t collect sales taxes.
Right now the Georgia Legislature is taking this matter up for a vote.
To support this legislative effort, Georgia Municipal Association is seeking stories from business owners who have been impacted by this issue. Some are losing business and others are closing their businesses because of the tax disparity.
If you have a story to share about this situation please send it to:
Becky Taylor, BTaylor@gmanet.com
For more information: https://www.gmanet.com/Legislative-Session/Bill/HB61