Amazon to Begin Collecting Sales Tax on Purchases by Georgians - Good News or Bad?

The days of purchasing items on Amazon.com without having to pay Georgia sales tax at the time of purchase are coming to an end.

On Sept. 1, the Internet retail giant will begin collecting a 4 percent sales tax from Georgia residents, which, according to the Wall Street Journal, may be higher in certain counties and municipalities.

Last year, Georgia lawmakers passed legislation requiring online retailers to collect a sales tax. The law went into effect in January, but Amazon did not immediately comply. 

Now the state is set to collect up to $16 million a year in online sales tax, much of which is expected to come from Amazon.

“It makes a difference to those brick and mortar folks who lost business,” Rick McAllister, president of the Georgia Retail Association, told the AJC. 

In an interview with the Associated Press last year, McAllister said, “This is really a collection issue, pure and simple. It’s already owed by the customer. This levels the playing field for our members, who are doing the right thing.”

Georgia law requires consumers to pay sales tax on any item purchased for storage, use or consumption in Georgia. If the out-of-state retailer does not collect the tax, the consumer is expected to file a return remitting the tax.

Are you glad the state is leveling the playing field for brick-and-mortar stores? Will the collection of sales tax for online sales be more positive or negative for Georgia consumers? Let us know in the comments.