House approves measure to strengthen sales tax collection

By Nancy Badertscher

The Atlanta Journal-Constitution

The state could have a new tool for identifying businesses that should -- but aren’t -- paying potentially millions in sales tax.

The Georgia House passed legislation Wednesday that would require cities and counties to furnish the state Department of Revenue with information about businesses that are licensed locally.

The department could cross-check that information against its records to go after businesses that aren’t submitting sales tax to the state, said Ways & Means Vice Chairman David Knight (R-Griffin).

The state could bring in $100 million or more from the crackdown, Ways & Means Chairman Larry O’Neal has said.

Local governments also stand to benefit since they receive a portion of all sales tax collections, lawmakers said.

Democrats have been advocating for more enforcement efforts on sales tax collections and have offered their own proposals.

But Rep. Calvin Smyre (D-Columbus) called the bill a “step in the right direction.

“This is a process we hope will increase revenues” and uncover violators, Smyre said.

“It’s not a full loaf," he said. "But we would be abdicating our responsibilities if we did not vote in favor of this.”

The bill passed 160-2 and now goes to the Senate for consideration.