Georgia State Sales Tax- A Brief Guide For Businesses

State Spotlight Series GA

The Georgia State Sales tax rate is 4%. However, like just about every other state, there are local tax rates that can vary significantly. Georgia’s sales tax and use chart is a useful guide for individual jurisdictions. To skip the chart and get the rate, you can use our sales tax calculator.

The phone number to talk to a representative about your sales tax questions is 877-423-6711.

Economic Nexus?

Add another one to your list, remote sellers. Recently Georgia became yet another state with active Wayfair like Economic Nexus laws. The threshold is 250,000 dollars in gross revenue or 200 transactions. Keep in mind some states have ‘and’ clauses, some states have ‘or’. Georgia is an ‘and’ state so just the 250,000 dollars in sales won’t trigger nexus, you have to have the transaction amount too. The law became effective on January 1, 2019.

Sales Tax Holiday?

Sort of.

Georgia State Flag

Even though Georgia previously held sales tax holidays, in 2017 and 2018 they did not renew the savings. In 2015 the Department of Revenue held a tax holiday weekend around the start of school. Like many other states, Georgia exempted clothing and school supplies. The state even went as far as making laptops tax free.

The benefit of these holidays is under heavy scrutiny from groups and lawmakers alike. It is argued that these holidays don’t do much good for the economy. People typically buy clothing and school supplies at the beginning of August anyway, so consumers aren’t motivated to spend just because of the tax holiday. Instead, they are buying their kid’s backpacks on the tax holiday weekend instead of a random Tuesday. This doesn’t do much for the economy, and it is argued that the tax holidays really hurt the state.

With the debate and concern around how much it helps versus how much it hurts, Georgia’s tax holidays will most likely not make a comeback during the 2019 school year either. However, like always we will be on the lookout for updates as August gets closer. Once EcomTax knows, we will let you know.

Amazon Fulfillment Center?

EcomTax Amazon Fulfillment center map

Georgia has several, so FBA sellers, be aware. Amazon can move your inventory here and that may trigger ‘physical presence nexus’ in that state.

Weirdest Tax Law:

Excise taxes, more commonly known as sin taxes are found all throughout the country. Things that are bad for you get taxed more. Cigarettes, alcohol, and gambling all fall under the sin tax. A town in Alaska, for example, puts a tax on cigarettes that averages out to an extra dollar per pack. At .37 cents per pack, the tax for cigarettes is much lower than Alaska’s. However, the Georgia state sales tax rate for wholesale cigars definitely raises a few eyebrows; the tax comes in at a whopping 23%.

Also, be prepared to tack on another five dollars to any hotels or motels you book in Georgia. The state adds five bucks to any overnight stay unless that stay is longer than 31 consecutive days. At that point it is considered an ‘extended stay rental’ and the tax falls off. Though, at 31 consecutive days, you’ve added an additional 155 dollars to your bill just from the state fee.

We’re making our way though all fifty states. Check out our State Spotlight category to see all that we’ve done so far.

Please note: this blog is for informational purposes and should not to be considered, or used in place of, professional advice for your specific situation. 

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