GA Sales Tax on Internet Purchases | FerrariChat

GA Sales Tax on Internet Purchases

Discussion in 'South Central - USA (TN, MS, AL, GA)' started by Lead Foot, Oct 3, 2012.

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  1. Lead Foot

    Lead Foot Karting

    May 30, 2011
    76
  2. Dr Tommy Cosgrove

    Dr Tommy Cosgrove Three Time F1 World Champ
    Owner Rossa Subscribed

    May 4, 2001
    35,287
    Birmingham, AL
    Full Name:
    Tommy
    Is it on the honor system?

    HaHa... good luck, GA!
     
  3. Dino Scuderia

    Dino Scuderia Formula Junior

    Sep 7, 2005
    565
    Southeast US
    The company you purchase from, for example, Amazon will send you the total of Use Tax you owe...from there it is the honor system.

    Good luck getting me to pay it.
     
  4. rse1851

    rse1851 Rookie

    Jul 2, 2008
    24
    Rome GA
    Full Name:
    Steven Eckhoff
    What I question is why did they pick 8%? That rate (the highest in GA) is only charged in metro Atlanta. Fulton County is 7%, Cobb County is 6%. They should charge based on the rate your county charges but I do realize it would be a nightmare for online stores.
     
  5. Bill Sawyer

    Bill Sawyer Formula 3

    Feb 26, 2002
    2,108
    Georgia
    I am a Georgia resident but I spend most of my time in Florida where I run a company. If I buy something over the Internet, charge it to my credit card which is tied to my Georgia address, but have it delivered to my Florida address, do I pay the tax?
     
  6. ktr6

    ktr6 Formula Junior

    Mar 25, 2011
    947
    Knoxville, TN
    Full Name:
    Keith
    I believe that as long as you have proof that the items were delivered to Florida and you have a business entity in that state you should not have to pay this tax. Typically a use tax is charged on things that are bought out of state, no state sales tax paid, then brought in state for use. If you were audited I could see them asking you for proof that your purchases did not meet the requirement for payment of use tax.
     
  7. Lead Foot

    Lead Foot Karting

    May 30, 2011
    76
    Does the state have access to Credit Card / Paypal / eBay statements? If audited, how will the state even know about out-of-state purchases? The taxpayer would have to bring the Credit Card / Paypal, etc statements to the audit for the state to discover out of state purchases. Then the taxpayer would have to present the invoices showing state tax was collected by the seller. If the taxpayer doesn't bring the statements, how can they be audited on Internet purchases. I hope it doesn't come down to the state making an assumption that a person who makes $xxx a year purchases $yy over the Internet from sellers who don't collect sales tax.

    I see this provision as a potential nightmare. How are other States dealing with the 'use tax'?
     
  8. Dr Tommy Cosgrove

    Dr Tommy Cosgrove Three Time F1 World Champ
    Owner Rossa Subscribed

    May 4, 2001
    35,287
    Birmingham, AL
    Full Name:
    Tommy
    My practice was audited for use tax back in 06 so I am familiar with how this works.

    Not sure how the government will handle just your regular folks who buy a box of shampoo from Amazon, but as a business owner I keep the receipts for the deductions. In other words, they know to hit any business first because the records will be there - IF they want to expense things and everyone does. I don't have any idea where my ticket is for that box of Baldwin oil filters is. I know they could find it but that is work. In a business, it will be sitting in a nice folder on a shelf.

    My point is, even though this applies to everyone, I think the state knows which battles to pick. I feel like as personal consumers we are safe for the time being. They need the easy money first.
     
  9. Jason Crandall

    Jason Crandall F1 Veteran

    Mar 25, 2004
    6,373
    ATL/CHS/MIA
    Full Name:
    Jason
    And you haven't taken the time to become a Florida resident because?........
     
  10. rydermike

    rydermike Formula Junior

    Mar 27, 2010
    416
    Spring Hill,FL
    Full Name:
    Mike Donohue
    I really have a hard time seeing enough information being shared with taxing authorites on this . I don't even get 1099's from companies anymore wheter it it $800 or I do $80,000 with them anymore , and when I have gotten transcripts from the IRS , they never show the income either.
     
  11. BSU

    BSU Formula 3

    Mar 30, 2008
    1,013
    TX
    Not actually new. Use tax is just the flip side of sales tax. When a state cannot force a seller to collect sales tax (because the seller has no contact or nexus with the state) the burden statutorily falls on the buyer to pay use tax. Sometimes there is a line for it on the state income tax return. However, use tax compliance by individuals is woefully low. States audit businesses on the issue, so there is compliance there.
     
  12. Dino Scuderia

    Dino Scuderia Formula Junior

    Sep 7, 2005
    565
    Southeast US
    I live in Georgia but have my online purchases shipped to Tennessee therefor I got a bill for the tax. Tenn. had the rule before Georgia.
     

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