This bill would expand the definition of "dealers" who are required to collect sales taxes to include "marketplace facilitators", such as online platforms that allow vendors to sell goods or services through those platforms. Annual sales via such a platform of $100,000 or more into Georgia would require the facilitator to collect and remit all state and local sales taxes on all such sales. Franchising operations that have at least $500 million in annual Georgia sales (such as large hotel chains) can decide to have their franchisees collect sales taxes rather than having the franchisor be considered a marketplace facilitator.

This bill would create an entirely new taxation structure for telecommunications services. As amended in subcommittee, this complex bill includes the following:

• Eliminate existing county and city cable franchise fees, city telephone franchise fees, and sales taxes on local telephone service;
• Make “digital goods” – downloaded books, movies, music and the like -- subject to sales taxes (not currently taxed);
• Exempt broadband and internet-access equipment from sales tax, up to a maximum of $80M per year;
• Impose a new 2% state tax, and optional 2% local tax, on telecommunications services and prepaid wireless service. The local tax to be distributed to counties and cities based on the subscriber’s/customer’s address;
• Impose a new 2% state-only tax on direct-broadcast satellite service (Direct TV, Dish Network);
• Prohibit other local taxes or fees on communications services providers, other than ad valorem taxes, 9-1-1 fees, or other generally applicable fees/taxes.

Streaming services (Netflix, Hulu, etc.) are exempt from the communication services tax and sales taxes under HB 428.