New online sales tax for Georgians starts today

ATLANTA — Starting Tuesday, you'll have to pay sales tax on most items you buy on the internet.

Georgia state lawmakers passed the law earlier this year and now some online shops are working to help you keep your money.

Channel 2's Dave Huddleston spoke with several shoppers going to the Amazon store in midtown on Monday, who said they were surprised to hear about the new sales tax.

“Have you been shopping online for quite a while?” Huddleston asked shopper Collin Caldwell.

“Almost everything. It’s just easier,” Caldwell said.

Some shoppers told Huddleston that they don’t mind paying the 4 percent Georgia sales tax on online purchases beginning Jan. 1.

“For a long time we’ve gotten away with not paying tax on anything we bought online, so the government has to make it fair for themselves,” Caldwell said.

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The new law requires online retailers who make at least $250,000 or 200 sales a year in Georgia to collect sales taxes on purchases over $500.

Huddleston found some online sites may fight back. There’s a decades old federal law that states unless a store has a physical presence in the state, the state cannot force the retailer to collect taxes.

If you shop online, most sites will add, or not add, tax based on where you live.

Stewart Roberts said the new law levels the playing field.

“It seems fair that you do charge sales tax because you’re competing against brick-and-mortar merchants," Roberts said.

Many of those stores have struggled to keep up with the online retailers.

The new law could add between $500 million and $600 million in tax revenue to the state.

Cox Media Group