Georgia State and Local Tax (SALT) Alerts

State and Local Tax Insights

Georgia State and Local Tax Alert – Georgia Lowers Nexus Threshold Amount and Introduces a Railroad Track Maintenance Tax Credit

  • Georgia lowers its nexus threshold amount. Effective January 1, 2020, Georgia state law will require remote sellers and online retailers to collect and remit state and local sales tax if they exceed $100,000 (currently $250,000) gross revenue in the previous or current calendar year. The taxed revenue is from conducting retail sales of tangible personal property to be delivered electronically or physically to a location within Georgia that’s to be used, distributed or stored for use in Georgia. The bill also eliminates an option for delivery retailers to choose to either collect and remit sales and use taxes or provide notifications to certain purchasers and the state.
  • The Georgia Department of Revenue has adopted the Railroad Track Maintenance Tax Credit, effective May 3, 2019. The regulation provides definitions, credit amount and limitations, and specifies that, if the credit is allowed with respect to any railroad track, the basis of such railroad track must be reduced by the amount of credit allowed. The reg details the preapproval process and how the credit is claimed, and states that no unused credit can be carried forward. Further, the reg describes how pass-through entities use the credit, and the conditions on selling or transferring the credit. The credit is to be repealed on January 1, 2024.

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