Georgia – Recently Enacted Affiliate and Click-Through Nexus Laws

SALT Report 1840 – The Georgia Department of Revenue issued a reminder for taxpayers regarding the recently enacted affiliate and click-through nexus provisions in the state’s tax reform bill, HB 386.  Effective October 1, 2012, out-of-state sellers are required to collect sales tax from Georgia customers if:

  • A related company located in Georgia sells similar products and uses a similar business name as the out-of-state seller,
  • A related company uses trademarks, service marks, or trade names in Georgia similar to those that the seller uses, or
  • A person or entity located in Georgia delivers, installs, or assembles the seller’s product, performs maintenance services, provides customer pick-up services in Georgia, or performs other activities in Georgia on the seller’s behalf

The Bill also provides that effective December 31, 2012 out-of-state sellers will be required to collect sales tax from Georgia customers if:

  • The seller makes more than $50,000 in sales to Georgia customers in the preceding 12 months that were referred to the seller by Georgia residents, whether by a link on a website, an in-person presentation, or telemarketing, and
  • The seller pays the Georgia residents a commission based on sales that were referred to them by the resident

When tax is collected by the out-of-state retailer, the tax rate is based on the location in which the customer takes delivery.

For Further Information:

Georgia State Legislature – House Bill 386