Dear Governor Deal and members of the Georgia Legislature:
Please don’t force thousands of small Georgia businesses to close their doors this year by rushing to pass a flawed piece of e-Fairness legislation aimed at collecting sales taxes on purchases made online. There is a better way to reach your desired result without destroying an entire industry.
Current federal law, upheld by the U.S. Supreme Court, says that a business does not have to collect sales taxes on mail order, telephone, or Internet purchases except for sales made to residents of any state where that business has a physical presence… or in legal terminology “a physical nexus”.
Pressure is building, fueled by Home Depot and organizations representing brick & mortar retailers, for Georgia to find a way to do an end run around federal law and force out of state firms to collect sales taxes from Georgia residents. Under a proposal now before the Special Joint Committee on Georgia Revenue Structure, any Internet retailer that has an affiliate relationship with any person or business in Georgia will be deemed to have established “physical nexus” in Georgia and thus must collect sales tax.