This bill relates to the recurring issue of collecting sales tax on internet sales and other sales by out of state retailers. This bill creates a new vendor classification, 'delivery retailer', defined as a retailer that either collects more than $250,000.00 from retail sales to be delivered in Georgia or that conducts more than 200 such sales. A delivery retailer must 1) either collect and remit sales tax to the state or 2) notify the purchaser that the purchaser is required to file a sales and use tax return. In the second situation, the delivery retailer is also required to send to each purchaser (and copy the Department of Revenue) a tax statement listing purchase price, date of purchase, and other information. These changes would become effective in January of 2019.

The text of this bill was added to HB 329 and adopted, effective July 1, 2019. This bill would make several changes to the calculation and distribution of title ad valorem tax (TAVT). Rather than the current law which provides for annual adjustment of the state/local split based on prior year collections, local governments will continue to collect ad valorem taxes on pre-2013 vehicles. TAVT proceeds be split between the state and local governments on a 65/35 (state/local) basis. The local share would be distributed as follows: 1) for vehicles registered in unincorporated areas, 51% of the local proceeds would be paid to the county and 49% to the school system; and 2) for vehicles registered in incorporated areas, 49% would be paid to the school system, 28% to the county, and 23% to the city. There are also provisions to accommodate MARTA in the three counties in which MARTA sales tax is collected. 

As adopted, the formula for calculating TAVT on used cars is unchanged. The TAVT rate for out-of-state registrations is lowered from 7% to 3%. Certain minor changes are also included, such as no longer charging full TAVT when a vehicle is retitled as a result of a divorce from one spouse to the other.

While this bill began, constructively, as a rural broadband bill, the Senate Regulated Industries Committee stripped and replaced it with the language of SB 426.  This wireless industry legislation guarantees authorization for wireless providers to construct and place poles (50' high), antennas (up to 6 cubic feet in volume and 10' higher than poles), equipment boxes (up to 25 cubic feet in volume), plus up to 4 cabinets (undefined size) and other infrastructure in county and city right of way (ROW).  Local government management of the above is all but entirely usurped; the grounds by which applications can be denied are few; denials are primed to result in litigation; and then locals are set up to lose.  

ACCG has attempted to work with the wireless providers, legislators and other stakeholders since last year to try to incorporate safeguards into the legislation.  While some of our recommendations were made, most of these "concessions" are so wrought with legal loopholes that their purported purpose has been nullified. 

For ACCG's concerns with (and suggestions for) this bill and SB 426, please click here.