Thread: Georgia considers taxing online purchases |
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January 16th, 2012, 10:10 AM
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Outsourced Program Manager
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Location: Roswell, GA
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Batter up. This is my fight. I have enough friends left in the media and political connections in Georgia that the fray could get ugly. I refuse to let this get pushed through without a good fight.
ATLANTA — Gov. Nathan Deal is considering extending the state sales tax to online purchases, he told newspaper publishers Thursday.
Eight states already tax electronic commerce, but most states have held off because Congress had signaled it would devise a national model to simplify the thousands of tax rates used by state and local governments across the country.
Deal said he wasn’t content to wait on Congress to act on immigration enforcement when he signed a tough law last year and that states may grow tired of waiting for federal leadership on e-commerce, too.
“In the absence of congressional activity on that ... I think there will be some appetite to act on that in the legislature,” he said. “That’s still in the very, very early stages of discussion.”
The governor told the members of the Georgia Press Association that it could be a way to replace taxes the state would give up by exempting energy factories use from sales tax, an idea he is pushing this legislative session in hopes it will lure more manufacturing employers.
Legislative leaders said later they haven’t heard a formal proposal to tax online purchases, but might favor one.
“It’s not something that can be easily done,” said Rep. Mickey Channell, chairman of the House Ways and Means Committee.
Federal court decisions limit how states can apply the tax, he said, adding that he favors it as a former retailer.
“It makes no sense to me to punish our brick-and-mortar merchants who pay local property taxes and provide jobs and make them charge a 7-percent higher price,” said Channell, R-Greensboro.
Rep. Ron Stephens, chairman of the House Economic Development Committee, also likes the idea.
“I’m just glad we’re trying to level the playing field,” said Stephens, R-Savannah.
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January 16th, 2012, 12:25 PM
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Thanks for keeping us informed!
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January 24th, 2012, 07:39 AM
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Outsourced Program Manager
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This is going to frustrate you.
I was discussing the potential online tax law in Georgia with an influential political blogger last week. One argument he had in favor of the bill is that it would be ok that affiliates would lose the majority of their online income because the state revenue boost would outweigh the fact that affiliates are generally intelligent people that can reinvent themselves when necessary. It's supplemental income for most so the unemployment rate won't go down overall.
So if the bill becomes a law and Amazon and the big merchants and a handful of clueless small merchants terminate relationships with 6,000 Georgia affiliates, politicians are ok with that because we can rise from the ashes.
We are looking into research that will show that state income taxes will be affected and could null or outweigh any net gain from online sales tax revenue.
Thoughts on this free market concept? I think it's very flawed.
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February 5th, 2012, 05:04 PM
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Outsourced Program Manager
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Tax reform might not be on the agenda this year after all. Phew...
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February 5th, 2012, 06:34 PM
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ABW Ambassador
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Quote:
Originally Posted by akagorilla
Tax reform might not be on the agenda this year after all. Phew...
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Thanks for posting akagorilla, I sure hope that's the case. Do you have a source you heard this from or an article you can point to?
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February 5th, 2012, 07:32 PM
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Outsourced Program Manager
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Quote:
Originally Posted by msladybug
Thanks for posting akagorilla, I sure hope that's the case. Do you have a source you heard this from or an article you can point to?
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Source in the State Senate. Not official because there is still talk but best guess is not this year.
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February 12th, 2012, 08:20 PM
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It's back -- article in today's Atlanta Journal-Constitution says this is very much an open item, with as much as $20 million in lost sales tax revenue just from amazon.com. A bill is being drafted to use amazon.com's affiliates as proof the company has a physical presence in Georgia and therefore must collect and remit state sales tax.
http://blogs.ajc.com/political-insid...sus-the-world/
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February 13th, 2012, 05:36 AM
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Outsourced Program Manager
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ARGHHH ! @#$%##$
The one Sunday I didn't read that piece of crap newspaper I used to work for.
Prepare accordingly for war.
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February 13th, 2012, 11:36 AM
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Outsourced Program Manager
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Here is my blog post explaining how it will affect me personally. Georgia Affiliate Tax
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February 13th, 2012, 11:52 AM
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Join Date: April 4th, 2010
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Quote:
Originally Posted by akagorilla
... “It makes no sense to me to punish our brick-and-mortar merchants who pay local property taxes and provide jobs and make them charge a 7-percent higher price,” said Channell, R-Greensboro...
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And it makes a whole lot of sense to hurt out-of-state vendors in favor of in-state stores who have votes and make campaign contributions. (To a politician.)
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February 23rd, 2012, 02:05 PM
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Join Date: August 1st, 2011
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@akaGorilla - any change down in GA?
I haven't seen anything online, but I'd like to connect with you as I run the Aff. Marketing Program for a major brand and would appreciate getting a local feel.
Please feel free to PM me if you'd like.
Chris @ Plaid Skirt Marketing.
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February 24th, 2012, 09:51 AM
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Outsourced Program Manager
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Quote:
Originally Posted by Plaid Skirt Marketing
@akaGorilla - any change down in GA?
I haven't seen anything online, but I'd like to connect with you as I run the Aff. Marketing Program for a major brand and would appreciate getting a local feel.
Please feel free to PM me if you'd like.
Chris @ Plaid Skirt Marketing.
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I've been trying to look into the status of the bill for two days but the link is dead and the Georgia General Assembly is having issues. Who knows, we could be under Martial Law this week. Sent you an email, let's talk.
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February 26th, 2012, 12:48 PM
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Join Date: August 1st, 2011
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Quote:
Originally Posted by akagorilla
I've been trying to look into the status of the bill for two days but the link is dead and the Georgia General Assembly is having issues. Who knows, we could be under Martial Law this week. Sent you an email, let's talk.
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Email didnt seem to come through. Sent you a connect request on linkedin.
Looking forward to talking to you.
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February 27th, 2012, 05:45 PM
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Apparently there is a hearing at 9am at the state capitol tomorrow regarding HB 993. I will be there if Atlanta traffic allows.
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February 28th, 2012, 12:51 PM
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Outsourced Program Manager
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Georgia Affiliates Are Screwed
If you complain after the fact and you did nothing, I'm going to punch you in the face.
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March 1st, 2012, 03:32 PM
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Member
Join Date: March 1st, 2012
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This level of taxation and its debate will without a doubt go on for years across many states. While there is already a system of taxation for internet transactions across a few states a method of enforcement is still outstanding for most of them.
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March 2nd, 2012, 03:19 PM
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Outsourced Program Manager
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Lies and misinformation by a gullible TV reporter in Atlanta:
State Considers Taxes on Internet Sales
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March 2nd, 2012, 06:13 PM
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Yeah, very vague as to what's really happening.
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March 4th, 2012, 04:49 PM
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I've written my state representative, but I don't have a good feeling about this. I think we are indeed screwed.
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March 4th, 2012, 09:12 PM
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Here's another dissenting opinion --
http://gbpi.org/wp-content/uploads/2...C-34-3380S.pdf
But, interestingly enough, the "analysis" is confined only to the loss of revenue from the sales tax holiday. It assumes the new tax structure will bring in millions of dollars in new revenue, which of course it won't do.
I think votes have possibly already been lined up, the lobbyists for the large brick and mortar stores have been hard at work, and the addition of the sales tax holiday makes this an attractive bill for the average citizen. My guess is this is a done deal, but I did write my representative and explain the issues to him, and would encourage others to do likewise.
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March 5th, 2012, 07:23 AM
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It has to pass the house this week or it dies. Wednesday is crossover day. If/when it passes, our only hope is that the Senate strips the nexus language out and only passes the sales tax holiday. Then it goes to conference or dies for the year.
Keep your fingers crossed. We'll know in a few days.
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March 6th, 2012, 07:08 PM
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Since I'm having a debate with the PMA regarding the New Jersey bills, I looked over the link regarding Georgia's HB 993. It's one page. Can you please explain how this affects affiliates? Maybe I'm missing the full version of the bill.
http://www.legis.ga.gov/Legislation/20112012/120872.pdf
12 LC 34 3328
H. B. 993
- 1 -
House Bill 993
By: Representative Ramsey of the 72nd
A BILL TO BE ENTITLED
AN ACT
1 To amend Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales
2 and use taxes, so as to change certain definitions regarding such taxes; to provide an effective
3 date; to repeal conflicting laws; and for other purposes.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
5 SECTION 1.
6 Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use
7 taxes, is amended in Code Section 48-8-2, relating to definitions regarding such taxes, by
8 revising paragraph (4) as follows:
9 "(4) 'Business' means any activity engaged in by any person or caused to be engaged in
10 by any person with the object of direct or indirect gain, benefit, or advantage."
11 SECTION 2.
12 This Act shall become effective upon its approval by the Governor or upon its becoming law
13 without such approval.
14 SECTION 3.
15 All laws and parts of laws in conflict with this Act are repealed.
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March 6th, 2012, 07:29 PM
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The full version is still being worked on in committee and not released online. The author is an idiot.
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March 7th, 2012, 07:19 AM
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Today is the day. HB 993 is still in House Ways & Means subcommittee. Both subcommittee and full Ways & Means met yesterday with no action on HB 993. Senate GOP members are being whipped on the issue today during the lengthy floor debate
to determine support of the issue. If the Legislature decides to move forward with the issue, balanced with sales tax holiday or packaged with the energy sales tax cut for manufacturers, they have two vehicles in Senate Finance and the unique powers of the Joint Committee on Tax Reform.
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March 7th, 2012, 02:14 PM
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Thanks for the update.
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