Georgia Passes Tax On Goods And Services Sold Online
The legislation is aimed at providing equal tax treatment between brick and mortar stores and online companies. The new tax would apply to online platforms, both websites and apps, that sell goods and services from other third parties. The tax will go into effect April 1st.
The new tax would affect major online platforms, such as Uber, Lyft and Airbnb. Lobbyists from Uber are expected to try and push for legislation that gives different treatment to the services provided through Uber’s app.
“We agree that addressing inequities between online and brick and mortar retailers is an important issue. However, if action is not taken to put a reasonable fee structure on rideshare in place, Georgians will end up paying one of the highest rideshare taxes in the nation,” Evangeline George, an Uber spokeswoman said.
Additionally, the new tax provides an opportunity to offset the loss the state has experienced from the most recent income tax cuts that Governor Brian Kemp has enacted. The income tax rate was cute in 2018. Governor Kemp has asked state agencies to cut their budgets by 4% this year.