The "Point of Sale" Bill

Sales tax is added to nearly every purchase in the state of Georgia. This sales tax is collected by the seller, delivered to the state, and then returned back to the same county a few months later.

But in some cases, the seller doesn’t charge the sales tax. Other times, the seller charges the tax but keeps it for themselves. In these instances, it can be difficult to catch the lawbreakers. The Department of Revenue does not check with the local government to determine A) what businesses exist and B) which businesses are not following the rules. Lawbreakers could operate for a long time before anyone discovers that the sales tax is being collected- but not delivered- to Georgia as required by law.

How often does this happen? Several studies are being conducted, with two from Hall and Lowndes counties being nearly complete. These studies estimate that 25% of sales taxes are not being sent to the appropriate authority.

The Democratic “point of sale” bill is an innovative idea that will collect over $1billion dollars for the state general fund without raising taxes. It was proposed in 2009 and shut down by Republican leadership. We’re hopeful that it will pass this year.

The bill allows city and county governments to collect sales tax locally without sending it to Atlanta first. The benefits are:

• Quicker turnaround time. Local governments would get their money within two weeks, not two months as the system currently operates.

• Higher compliance rate. Local governments can easily determine if the local convenience store is paying their sales taxes correctly. They can also monitor new business licenses to catch lawbreakers.

• Saves money. It is estimated that keeping the collection process local would save $30 million per year.

Last year, the Republican leadership did not move forward on this bill, instead opting for teacher furloughs and education cuts. In return, property taxes rose in order to replace the shortfall. Most Georgians wound up worse financially then the year before.

This year, the state Democratic “point of sale” bill could pass and immediately provide new revenue to pay our teachers, restore funding for education, and shore up our neglected police officers and firefighters. And the best part?

It will not cost an additional dime from the taxpayers.