Georgia State and Local Tax (SALT) Alerts

State and Local Tax Insights

Sales Tax Denial for Used Car Retailer | Video Series by the Georgia Deptartment of Revenue

  • The Georgia Tax Tribunal affirmed the denial of sales tax refund claims filed by a retailer of used cars. The claims relate to the bad debt statute that allows dealers to deduct sales tax not paid when a customer defaults on an installment loan. The taxpayer alleged that it bore actual bad debts because it incurred losses on loans it had sold to its parent holding company. The loans were ultimately written off as bad debts, to the detriment of the company’s owners. The tribunal said this argument was without merit because the company sells all interest in loans to the parent company prior to any bad debt write-offs, and, thus, can’t claim bad debt sales tax deductions. (Dkt. No. 1715968).
  • Are you a “visual” person? Many people are, meaning that it’s easier for them to understand a process by watching a video clip instead of reading a set of instructions. The Georgia Dept. of Revenue has posted a series of informative videos on its website that covers such topics as making an individual income tax payment. Watch the video here: https://bit.ly/2ln4cOY. And if you have further questions after viewing the video, here’s a list of contact phone numbers: https://bit.ly/2kPnz2X

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