Amazon to Start Collecting Sales Tax in Georgia

Beginning September 1, Amazon.com will begin collecting sales tax in Georgia, the Atlanta Journal-Constitution reported last week. Rick McAllister, president of the Georgia Retail Association, told AJC that he was delighted by the news, which “makes a difference to those brick-and-mortar folks who lost business.”

On January 1, 2013, an affiliate nexus law went into effect in Georgia, which requires online retailers with affiliates in the state to collect and remit sales tax. However, repeated checks by the AJC  found that the online retailer was not asking Georgia residents to pay sales tax on purchases. The Wall Street Journal said that “it wasn’t clear why it took until September for Amazon to be affected,” and an Amazon spokesman declined further comment.

Enforcement of the law is expected to add $16 million annually to the state’s coffers and create more than 50,000 jobs, according to conservative economist, Dr. Arthur Laffer.

“I hope our Congressional delegation will follow the example set by our governor and state legislature and restore basic free market competition to Main Street,” Rick Boyd, president of Chattahoochee Marketing Group, told Georgia’s Albany Journal. Boyd was referring to the Market Place Fairness Act, which was passed by the Senate in May but is facing strong opposition in the House. “All we’re asking for is a level playing field,” he said.