09 LC 28
4782
House
Resolution 779
By:
Representative Stephens of the
164th
A
RESOLUTION
Creating
the House Study Committee on Sales and Use Tax Simplification; to provide for
duties and responsibilities of the committee; to provide for participation in
certain interstate discussions; and for other purposes.
WHEREAS,
Georgia is one of 45 states, plus the District of Columbia, that levies a sales
tax; and
WHEREAS,
sales tax revenue accounts for more than one-third of the state's annual budget;
and
WHEREAS,
Georgia's sales tax, while levied on the consumer, must be collected by vendors;
and
WHEREAS,
Internet and other remote vendors are currently not required to collect sales
tax and remit it to the state; and
WHEREAS,
Georgia residents have a legal obligation to pay a use tax equivalent to the
sales tax on Internet and other out-of-state purchases; and
WHEREAS,
collection of the use tax is very difficult, and there has never been a
successful way of collecting the tax owed to the state; and
WHEREAS,
simplification of the sales tax system so that remote vendors could collect and
remit a sales tax to the state would relieve Georgia consumers of the burden of
registering and filing returns and remittances for the use tax on out-of-state
purchases; and
WHEREAS,
sales made via the Internet and catalogues on which no Georgia sales or use tax
is collected significantly reduce overall sales tax revenue; and
WHEREAS,
a study by the University of Tennessee estimates that Georgia lost $439 million
in untaxed remote sales in 2001 and projected the revenue loss to grow to $1.5
billion in 2006; and
WHEREAS,
the growth in Internet sales is far outpacing the sales growth at traditional
"brick and mortar" businesses that employ Georgia residents, pay taxes, and
otherwise contribute to the local economies in which they operate;
and
WHEREAS,
the growing losses in sales tax revenue to the state and local governments place
at risk many vital services, including education, public safety, transportation,
and others, and will force affected governments to seek revenue from increased
property taxes or other sources; and
WHEREAS,
untaxed sales made via catalogue or the Internet put Georgia based businesses
that must collect sales tax at a competitive disadvantage; and
WHEREAS,
simplifying the sales tax system in cooperation with other states would reduce
that administrative burden of the sales and use tax for both the state and
companies doing business in Georgia, thereby improving compliance and revenues;
and
WHEREAS,
thirty-four states and the District of Columbia have signed an agreement or
passed legislation to work toward a simplified sales tax system that would make
it viable for remote vendors to collect sales tax and remit sales tax to the
states; and
WHEREAS,
Georgia is not presently a part of the nation-wide effort to simplify the sales
tax system which would accommodate the collection of sales tax from remote
vendors, thereby halting the erosion of the state's sales tax
revenues.
NOW,
THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES that there is created
the House Study Committee on Sales and Use Tax Simplification to be composed of
five members of the House of Representatives to be appointed by the Speaker of
the House of Representatives. The Speaker of the House of Representatives shall
designate one of the members to serve as chairperson of the committee. The
committee shall meet at the call of the chairperson.
BE
IT FURTHER RESOLVED that the committee shall undertake a study of the
conditions, needs, issues, and problems mentioned above or related thereto and
recommend any action or legislation which the committee deems necessary or
appropriate. The committee may conduct such meetings at such places and at such
times as the chairperson may deem necessary or convenient to enable it to
exercise fully and effectively its powers, perform its duties, and accomplish
the objectives and purposes of this resolution. The members of the committee
shall receive the allowances authorized for legislative members of interim
legislative committees from the funds appropriated to the House of
Representatives but shall receive the same for not more than three days unless
additional days are authorized. All other funds necessary to carry out the
provisions of this resolution shall come from funds appropriated to the House of
Representatives.
BE
IT FURTHER RESOLVED that representatives from the State of Georgia should
participate in interstate discussions to develop a simplified sales and use tax
system.
BE
IT FURTHER RESOLVED that in the event the committee makes a report of its
findings and recommendations, with suggestions for proposed legislation, if any,
such report shall be made on or before December 1, 2009. The committee shall
stand abolished on December 1, 2009.